The New York Racing Association violated state law when it hired the law firm that had served as a court-appointed monitor to help NYRA avoid a federal indictment, according to the State Investigations Commission.
The powerful commission said NYRA illegally hired the Getnick & Getnick law firm in Manhattan to a $125,000-a-month contract in 2007 without allowing competitors to bid. The five-year contract was to help NYRA uphold business integrity standards.
There was no immediate comment from Getnick & Getnick or NYRA.
The SIC didn’t call for sanctions against NYRA or the law firm and the contract can continue.
NYRA, despite being the subject of numerous state and federal investigations into its prior management, is on track to receive a renewal of its racing franchise to operate Aqueduct, Belmont and Saratoga thoroughbred tracks.
The SIC found that other companies were qualified to handle the work given to the Getnick firm, but were shut out when NYRA awarded the contract without seeking competitive bids.
“The irony here is that had NYRA used the bidding process and concluded that Getnick & Getnick was the most qualified firm, NYRA would have had a reasonable basis for hiring the firm,” Commission Chairman Alfred D. Lerner said.
“By violating state law and not having a competitive bidding process, NYRA needlessly invited doubt about the contract award’s legitimacy,” he said.
The contract violated state breeders’ law, but state regulators weren’t authorized to stop it, Lerner said. The SIC recommends a change in the law or a change in the authority of the state Racing and Wagering Board or racing oversight board.
Under law, NYRA must submit contracts worth $250,000 or more to competitive bids to ensure the best price.
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