Horse Racing

FTC rejects HISA drug and anti-doping rules


The Federal Trade Commission issued on December 12 an order rejecting the proposed Anti-Doping and Drug Control rule submitted by the Horseracing Integrity and Safety Authority after a period of comment. public. The Equestrian Safety and Integrity Act, which created the HISA, includes a requirement that its rules be submitted for approval by the FTC.

The Commission’s order explains that its denial arises from legal uncertainty arising from a recent decision by the United States Court of Appeals for the Fifth Circuit, which declared the Safety and Integrity in Horse Racing is unconstitutional. Because further steps in the lawsuit could render the proposed rule unenforceable in the states that make up the circuit and in those states that are the plaintiffs in the lawsuit, approval of the proposed rule would be inconsistent with the Act’s fundamental principle that horse racing rules should be uniform across the state. ethnic. Accordingly, the committee failed to reach the merits of the proposed rule, which the Agency could resubmit if the legal uncertainty was resolved.

The Committee vote was 3-0-1, with Commissioner Christine S. Wilson abstaining.

“Everything HISA has implemented will remain as it is as of January 1, 2023. It has no impact on our race-safety program and that will continue to work as before. What it does. making it clear is delaying the implementation of the Anti-Doping and Drug Control program,” said HISA CEO Lisa Lazarus. “From HISA’s perspective, we’re ready, excited and eager to launch that program as it will be a game changer for the industry. But we understand that due to the environment we’re in and the challenges we face. Due to regulatory uncertainty, the FTC feels it is prudent to dismiss the rules and allow time for legal issues to be clarified and resolved.”

That uncertainty began on November 18 with a ruling by the 5th U.S. Circuit Court, which reversed the ruling of U.S. District Court Judge James Wesley Hendrix for the Northern District of Texas and declare HISA constitutional. The federal act is also being scrutinized by the Cincinnati-based 6th U.S. Circuit Court of Appeals, which is considering an appeal against a ruling that HISA was constitutionally made in the U.S. District Court for Eastern District of Kentucky by Judge Joseph Hood. Oral debates were held on December 7.

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Hood found that the HISA law gives the FTC sufficient “authority and oversight” over the Agency to ensure that the FTC operates as a private entity under the FTC and not vice versa in the construction process. Rule. Basically, Hendrix made the same kind of judgment as Hood. The fifth lap said Congress had won the chariot over the horse, making HISA an entity with a “whip handle”.

If the Sixth Circuit sided with Hood and if the Fifth Circuit does not change its position, the conflicting rulings would create a situation that would force the U.S. Supreme Court to fundamentally break the constraint.

Lazarus said either winning the right to suspend the Fifth Circuit Court ruling or the sixth round favorable ruling could also give HISA time to implement drug control and anti-doping rules.

Lisa Lazarus Giám đốc điều hành HISA<br /> Keeneland 2.11.22 Image: Edward Whitaker” src=”https://cms-images.bloodhorse.com/i/bloodhorse-images/2022/11/18d7f36c6f2d422283beca16c439faea.jpg?preset=medium” style=”border-width: 0px ;” title=”Lisa Lazarus CEO HISA<br /> Keeneland 2.11.22 Photo: Edward Whitaker”/><figcaption><small>Photo: Edward Whitaker/Racing Post</small></p>
<p>HISA CEO Lisa Lazarus</p>
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<p>“HISA is pursuing a stay. For example, if we secure a stay for a substantial amount of time until the Supreme Court can hear the case, then we can go back to the FTC and seek legal approval on that basis and declare to them that we have the stability to launch the program,” she said.  “That would require it to fit into the timeline from the Sixth Circuit and they are expected to rule for the next month or two.”</p>
<p>As HISA’s status crosses the regulatory maze, Lazarus also said it’s important for state commissions and racing regulators to know that as of January 1, they will continue to be accountable for all the collection and testing.</p>
<p>Ben Mosier, executive director of the Welfare and Equestrian Integrity Unit, released a separate statement following the FTC’s decision.</p>
<p>“As the designated independent enforcer of the Horseracing Integrity and Safety Administration’s Integrity and Drug Control and Anti-Doping and Integrity Program, the Horseracing Integrity and Welfare Unit has spent the past seven months to prepare for the program’s rollout on January 1, 2023, and to be ready to implement the unified, nationwide program on that date pending approval from the Federal Trade Commission. resubmitting the draft ADMC rules for FTC approval, HIWU will use any additional period of time prior to implementation as an opportunity to ensure the industry is more prepared to effectively implement the program. This program will promote fair competition in Thoroughbred racing as well as the safety and welfare of our human and equine athletes.”</p>
<p>The International Association of Racing Commissioners said it was pleased with the FTC’s decision to raise “serious questions that exist about the constitutionality of the HISA Act.”</p>
<p>“RCI has not taken a side in the case, although several Member States are actively challenging the constitutionality of the HISA Act. We believe that the Act needs to be rewritten to be effective, and we do. I stand ready to assist in the consensus building process as to what amendments must be made to achieve the goals outlined by Senators McConnell, Representatives Barr and Tonko.”</p>
<p>Eric Hamelback, CEO of the National Association of Benevolence and Protection of Horsemen, which has engaged in legal challenges against HISA’s constitutional authority, also released a statement supporting the decision. regulations of the FTC.</p>
<p>“The FTC’s recent decision is another positive step forward for riders in their fight against an unconstitutional takeover of our industry. The strength of our legal arguments has been taken by us. led to a unanimous decision on the Fifth Circuit and now the FTC did the right thing by refusing to challenge a federal court that found HISA unconstitutional. fix the drug issues until we finally win this case,” he said.</p>
<p><em>Legal reporter Dick Downey contributed to this story.</em></p>
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