HISA CEO Lisa Lazarus said on January 5 that the Agency’s Health and Anti-Doping Control Program for Equestrian Integrity and Safety could be launched in mid-March if decisions are forthcoming. Court hearings found that HISA was constitutional and that the Federal Trade Commission accepted ADMC’s rules.
The FTC, the HISA watchdog, rejected those rules on December 12 based on legal uncertainty arising from the U.S. Court of Appeals decision for the Fifth Circuit, declaring the act 2020 creation of HISA is unconstitutional.
HISA, which is responsible for drafting and enforcing uniform rules for integrity and safety in American Thoroughbred racing, began its Track Safety Program in July and is already scheduled to roll out ADMC program in early 2023 before the decision of the FTC. The ADMC program is designed to create a centralized audit and results management process and apply uniform penalties for violations consistently across the United States.
The passage of the $1.7 trillion aggregate spending bill at the end of December, which includes language that authorizes more authority for the FTC over HISA, puts it on a more solid legal footing. This legislative action comes after judges in the US Fifth Circuit Court of Appeals questioned whether HISA is subordinate to the FTC.
Since that time, HISA attorneys have asked the federal appeals panel to overturn a ruling declaring the basic law of the entity unconstitutional, citing a recent amendment to the law.
Another Cincinnati-based court of appeals, the 6th Circuit, is considering another challenge to the constitutionality of HISA but has not yet ruled. That court notified the parties to submit the additional summary of the revised settlement by January 12.
In a video conference with reporters on Thursday, HISA shared legal precedent for the courts to consider the recent amendment in reviewing HISA’s constitutionality.
“We have resubmitted the anti-doping rules and we are hopeful and optimistic that we will be able to implement them, probably around mid-March,” Lazarus said. “Obviously, it depends on the FTC, when they put them on the (Federal) Register, when they actually approve them. But that’s our current expectation of what the timeline will look like. “
Following her comments Thursday morning, the U.S. 5th Circuit Court of Appeals ruled that it will not treat HISA’s recent request to rescind the unconstitutional order as an “emergency” requiring a quick decision, this can speed up the process.
According to HISA, a mid-March date would allow for a mandatory public comment period of up to 60 days.
Critics and opponents of HISA in court, among them the Horsemen’s Protection and Benevolence Association and a number of state regulators and racing organizations, question the legitimacy of HISA. it and argued that HISA was beyond the jurisdiction of the states and their racing laws. Some critics also believe that HISA creates additional bureaucracy and costs without significant policy changes.
Racing in Texas at Sam Houston Park
A state regulator, the Texas Racing Commission, took action to require Texas racetracks not to export their Thoroughbred signals to other states, leaving Texas outside HISA’s jurisdiction. TRC believes that HISA’s federal oversight creates a statutory conflict that “threatens to prevent the Texas Racing Commission from fulfilling its legal obligation to equal betting.”
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HISA rules have not been enforced in Louisiana and West Virginia, two other states that have largely opposed the federal program, since the decision by the US Fifth Circuit Court of Appeals.
HISA’s operating budget for 2023 was initially set at $72.5 million, of which $58 million was for the ADMC program run by HISA’s Horseracing Integrity and Welfare Unit. The collection of those fees — halted in mid-December — comes from assessments submitted to state racing and track commissions.
Lazarus said the reviews “are still coming out from 2022, which is good and positive”. “That suggests to me… that the industry accepts that HISA is still moving forward, still viable, and has the reliability we need to move forward.
“For 2023, we submitted a revised budget to the FTC based on the fact that we did not conduct testing for the first two and a half months of 2023—again, that timeline is not determined until after that. The FTC decides—we know at a minimum, it won’t be sooner than that.”
Lazarus said HISA processes are not affected by the broader authority granted to the FTC.
“Obviously we submit our rules to the FTC,” she said. “I think the only thing that’s changed—and that’s what the HBPA wants and requires—is that it gives the FTC broader powers to amend our rules. In the end, that doesn’t change those things. what we do, but it certainly changes the arrangement the FTC has in its toolbox with regards to responding to what we send.
“We’re pleased the FTC has the extra authority that legislative amendments have granted because ultimately we’re just trying to create, recommend, and recommend rules that we think will improve the safety and integrity. If the FTC sees a reason to amend them, we are happy to receive those amendments.”
When describing HISA’s intended moves to be more transparent—officials there insist HISA is not subject to open records requirements, like state and federal agencies are—she called its organization is “between a public and private entity.” She has committed to an online platform for individuals to view ADMC rulings and update status on the HISA website if the ADMC program continues.
“We are clearly a private entity, but we understand that (as) to the public we act like or appear to act like a public entity. We responsible there,” she said.
