In an opinion issued on March 3, the 6th Circuit Court of Appeals of the United States upheld a lower court’s decision that the Equestrian Safety and Integrity Act is constitutional.
The lawsuit, filed against HISA and the Federal Trade Commission by the states of Oklahoma and West Virginia, their respective racing commissions, the Oklahoma Neighborhood Racing Association and others, stems from United States District Court for the Eastern District of Kentucky. The district court also ruled in favor of HISA and the FTC.
The three-judge Sixth Circuit panel unanimously supported that outcome. Chief Justice Jeffrey S. Sutton delivered the comments of the trial that featured Judge Richard Allen Griffin and Senior Judge R. Guy Cole Jr. join. Cole offered a slightly different separate concurrence on how the issues were framed.
Procedurally, the appeal case is unusual in that a fundamental component of the HISA was modified while the appeal was pending. The amendment, enacted by Congress and signed into law by President Joe Biden late last year, comes in the wake of a 5th Circuit Court of Appeals ruling that HISA is formally unconstitutional based on giving too much power over HISA, a private corporation, and too little power over the FTC, an agency of the federal government. Changing the bill’s structure gives the FTC full power to repeal, add to, and modify any rules adopted by HISA.
“Sometimes the government works,” Sutton writes. “The Constitution envisages, though it does not require, constructive communication between Congress and the federal courts. A productive dialogue has taken place in this case and it has allayed concerns about non-authorized challenge. When amended, the Horseracing Act gives the FTC the right to final say…”
“HISA is grateful to the Sixth Circuit for recognizing and affirming the constitutionality of HISA,” HISA read in a statement issued after the ruling. “We remain focused on preparing for the launch of HISA’s Anti-Doping and Drug Control (ADMC) Program on March 27, pending final approval from the FTC. After the launch, the first in the series. race history, ADMC and Track Safety combined programs will , see the country’s uniform integrity and safety rules that are consistently applied to all Thoroughbred horses, race entrants and the domestic track.”
This decision creates a division of jurisdiction over the view of the 5th Circuit Court of Appeals that the statute is fundamentally unconstitutional, but because the two cases are at different stages of procedure, it is very It is difficult to predict whether a dispute to settle the matter in the US Supreme Court will be inevitable. While the Sixth Round considered congressional amendments to HISA, the Fifth Round ruling preceded the amendment. HISA and the FTC asked that court to review its decision under the amendment, but instead the matter was adjourned or resubmitted to two federal district courts, where further proceedings is in progress.
Oklahoma and other HISA challengers presented separate arguments that the Act authorized federal “command” illegally, but the appeals court dismissed them. Command is unconstitutional and occurs when the federal government orders the states to implement its laws.
The court ruled that Oklahoma had no standing to challenge a provision that required state authorities to cooperate with and share information with HISA. “True or not,” Sutton wrote, “whether this claim results in requisition, Oklahoma and the other State plaintiffs are not qualified to challenge it.
Another provision of the law says that states can choose to collect fees from the industry and remit the money to HISA, or states can refuse. If a state participates, that state will have the power to decide how the fees will be collected. If a state refuses, HISA will charge a fee. This, the court wrote, is not requisition.
Attorney Matthew D. McGill, who has presented arguments orally before the Oklahoma Court of Appeals and other parties challenging HISA, said adverse judgment options are under consideration.
“The HISA Act puts a private company in charge of horse racing nationally, and then requires the States to pay for that privilege,” McGill said in an emailed statement. “As (Supreme Court) Judge Alito recently explained, ‘
Although not a party to the Sixth Round dispute, the National Knights Protection and Benevolence Association and its state affiliates were plaintiffs in the suit decided in their favor by the Fifth Round. CEO Eric Hamelback said they will work for the long term.
“Today, we stand firm with our victory in the Fifth Circuit; however, we are disappointed by the judgment of the Sixth Circuit,” Hamelback said in a statement. “From the outset, we stated that there were many aspects of unconstitutional conduct that were hindering HISA. The Fifth Round ruled on the arguments presented to them and the Sixth Round ruled on the arguments. With that, we remain confident in our arguments and committed to our case.As seen today, changing legal uncertainty only makes adds confusion ahead to the industry and will get everyone to agree that we need a new bill to fix this uncertainty.We will continue to fight to the Supreme Court if necessary to protect protect our industry and make sure our rules and regulations are built on a legal foundation.”
The National Thoroughbred Racing Association, which has lobbied to amend the law allowing HISA, welcomed the decision by the Sixth Circuit Court of Appeals.
“Today’s decision by the Sixth Circuit Court to affirm the constitutionality of HISA is not only the right decision but also the important step we need to move forward in Thoroughbred motorsport,” said Chairman. and NTRA CEO Tom Rooney said in a statement. “Later this month, HISA will begin rolling out its Anti-Doping and Drug Control Program and will be fully operational. Now is the time to unite in the industry. HISA is the law of the country and we all must come together. working together to support their initiatives so that HISA can continue its mission to improve the sport with nationally consistent standards of safety and fairness.”
Byron King also contributed to this story.
