AUSTIN, TX—FEBRUARY 9, 2016—Prior to meeting of the Texas Racing Commission earlier today (Tuesday), its members were served a restraining order filed by the Texas Greyhound Association to prevent them from taking any action to end instant racing in Texas.

 A state district judge in South Texas signed a temporary restraining order Monday that has given hope to the state’s struggling horse and dog racing industries.

With funding once again set to run out at the end of the month, causing a complete shutdown the state racing industry, the top agenda on today's meeting was to decide whether to repeal historical racing in the state.

Those gathered in Austin for the meeting were stunned at the turn of events.

“We will wait to see what the courts decide,” Racing Commission Chair Rolando Pablos said.

This is the latest development in a nearly two-year fight between the commission and some Texas Republican lawmakers who oppose the implementation of historical racing machines at Texas racetracks.

After commissioners supported a plan to allow historical racing machines at Texas tracks in 2014 and refused to repeal their plan, State Sen. Jane Nelson, a Flower Mound Republican who heads the Senate Finance Committee and serves on the budget board, spearheaded a rider to defund the commission.

Texas tracks were shut down briefly last year because of the funding squabble but emergency funding extensions have been approved twice. However the latest extension is set to run out the last day of this month.

Without state funding the agency will be forced to shut down all tracks and simulcasting facilities in Texas.

As the ongoing debate over funding continues a slumping horseracing industry, made up of thousands of Texans who work as veterinarians, jockeys, grooms, breeders and more, is caught in the middle. State estimates show that the horse industry contributes $5.5 billion to the Texas economy and creates 36,000 jobs.

New estimates from the horse racing industry show if racing is shut down, the state's taxpayers may have to incur millions for unemployment benefits.

At today's meeting racing commissioners were also to hear a report from the Executive Director on a 'Plan to Close the Agency' in the event that additional appropriations are not approved.

The commission ended the meeting after being briefed in executive session about the restraining order.

“No one anticipated the lawsuit,” said Robert Schmidt, a Fort Worth orthopedic surgeon and commissioner. “Now we let the legal process play out.”

A hearing on a lawsuit filed by the Texas Horsemen’s Partnership, originally scheduled for earlier this month, was moved to late February at the request of the Texas Attorney General’s office.

The lawsuit challenges how state budget writers allocate some of the commission's funding. At issue is the aforementioned “rider” giving the Legislative Budget Board — the board on which state budget writers, Lt. Gov. Dan Patrick and House Speaker Joe Straus serve — the sole decision “to withhold all funds appropriated” for salaries and other services at the racing commission.

Since this provision went into effect, “the LBB has made clear that it will not permit the Racing Commission to spend its essential funds until the agency repeals its vote on historical racing.”

The commission is solely funded by the horse industry. It collects millions in fees, paid by racetracks and license holders such as owners, trainers and jockeys, then turns it over to the state, which allocates it back to the commission.

The new restraining order could gives the courts time to take up the lawsuit.