Eric Hamelback | Horse Racing Free Tips

Federal Bill To Replace HISA Reportedly In Pipeline

A federal bill aimed at replacing the Horseracing Integrity and Safety Act (HISA) with a regulatory system modeled around an interstate compact is reportedly in the pipeline.

The president of the United States Trotting Association (USTA), Russell Williams, disclosed the news about the pending legislation Mar. 21 during a special meeting of the Pennsylvania Horse Racing Commission (PHRC).

Williams addressed the PHRC Tuesday just prior to the board voting in favor of entering into three nine-month agreements with the HISA Authority that pertain to the Racetrack Safety Program, the Horseracing Integrity and Welfare Unit (HIWU), and the Laboratory Services Agreement.

Williams was urging the board to consider future implications prior to taking its vote, and one of the issues he brought up was the looming potential for a replacement regulatory structure.

“It's not just a possibility out there. It should be happening in the near future,” Williams said.

“There is legislation about to be introduced in Congress [and] the primary sponsor of this legislation has been talking with us,” Williams said. He did not disclose who that senator or congressman is.

“We provided him with a draft,” Williams continued. “The draft came from the [North American Association of] Racetrack Veterinarians, the HBPA, and the USTA. And it's already been through legislative services, [which has] put it in Congressional format, and as soon as the primary sponsor has his team put together, the bill will be introduced.

“This bill is a state-administered program,” Williams said. “So states would form an interstate compact. They would use state authorities, state experience and state funding, and save millions of dollars over the HISA structure.

“The legislation is health- and safety-focused,” Williams said. “It provides all of the same benefits to the racing industry that HISA does. It is science-based, and this is one of the problems we've had historically with the approach of HISA; it's in the HISA statute, the arbitrary nature of the regulatory approaches in words and statute, the Lasix ban.”

Williams said that the new legislation would be underpinned by “state administration, a science basis for making policy decisions, and a funding model that can be afforded by the racing industry.”

TDN could not independently confirm the involvement of the National Horsemen's Benevolent and Protective Association (NHBPA) with the pending legislation. A phone message left for the NHBPA's chief executive officer, Eric Hamelback, did not yield a return call prior to deadline for this story.

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Trainers Speak Out on HISA at HBPA Conference

Edited Press Release

The 2023 National HBPA Annual Conference closed with a lively discussion with three prominent horsemen who questioned the need, validity and overreach of federal legislation pitched as the so-called savior of racing while the industry heads into a challenging economic and logistical future.

Bret Calhoun, Ron Faucheux and Jason Barkley participated in the Trainer's Talk panel moderated by multiple Eclipse Award-winning journalist and media specialist Jennie Rees and talked about everything from the Horseracing Integrity and Safety Authority, challenges facing small to mid-sized stables, finding and keeping help and what gives them motivation in spite of all of racing's uncertainties.

HISA dominated the discussion–as it did much of the conference this week at The Hotel Monteleone in New Orleans–and the trio pulled no punches when it came to the controversial entity.

“The whole thing is a façade. It's been all smoke and mirrors,” said Calhoun, a member of the Louisiana HBPA board who also maintains strings in Kentucky and Texas. “They sold this thing as the safety of the horse. It's absolutely not about safety of horse. It's a few people, with self-interest and they have their own personal agenda.”

Faucheux, also a member of the Louisiana HBPA board and just two back of the leader on the Fair Grounds' leading trainer's list that he topped for the 2021-22 meeting, conditions a stable of about 60 horses and hasn't left his native state since HISA rules went into effect last summer.

“I haven't signed up and I won't sign up. I'll get out of training if I have to sign up,” Faucheux said. “A stable like mine, 55-, 60-horse stable, I couldn't afford the cost of having to hire somebody to do the paperwork for me. The added expenses of it all, it wouldn't work financially for me. It's a struggle to get by the last couple years. Feed costs have gone up 50 percent, hay, shavings, it doesn't make financial sense for a trainer in Louisiana year-round to sign up and have to take on all those added fees because right now we're barely making it as it is.”

Barkley maintains a stable of about 30 horses based at Fair Grounds and Oaklawn Park in the winter and in Kentucky the majority of the year. A member of the Kentucky HBPA board and a third-generation horseman, Barkley said he feels the impact of the regulations already and only sees them as potential obstacles for trainers hoping to grow their stables.

“A lot of my smaller clients they don't want to pay the added cost of a per-start fee, the extra vet checks, and all the added fees they want to put on us,” Barkley said. “There's added costs and the time to do all the work. Between me and my main assistant, who is my wife, Shelbi, we do the extra paperwork, keeping track of everything. We already kept track of what every horse got every day but to then have to put it into files, that doubles the workload. That is time taken away from actually working with your horses, which is what you should really be focused on.”

Fixed-Odds Wagering…

Fixed-odds wagering on horse racing is coming to America and should be embraced as well as understood by horsemen.

That was the advice of two heads of major horse-racing content distributors and two executive directors of horsemen's associations. They spoke on a closing-day panel at the National Horsemen's Benevolent & Protective Association conference.

The panelists addressed both the growth of U.S. tracks sending their race product to legal bookmakers overseas and the possibilities and challenges of introducing bookmaker-style fixed odds as a wagering option at U.S. tracks, whether at the actual track, another bricks-and-mortar facility or online.

“We've really had a mantra to educate our members on what's coming,” said National HBPA CEO Eric Hamelback. “Whatever you decide as a state–to bring it in, not to bring it in, or if you're fortunate enough to have a sports-wagering license–I believe sports wagering and fixed odds are in our future. But it's up to us to continue to educate everyone properly on the pros, the cons and the nuances of what's going on.”

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HISA the Focus at HBPA, Racing Commissioners Conference

Edited Press Release

Louisiana Attorney General Jeff Landry and Daniel Suhr, managing attorney for the Liberty Justice Center, told an assembly of racehorse owners, trainers and racing regulators Tuesday that they expect the Horseracing Integrity & Safety Act (HISA) to wind up before the U.S. Supreme Court– and they also believe America's highest court will strike down the legislation as unconstitutional.

While the room at the Hotel Monteleone was populated with folks concerned how HISA will impact their industry, Landry and Suhr said the four legal challenges before the Fifth and Sixth Circuits have much broader implications for the country. HISA, originally passed by Congress when slipped into the 2020 Covid relief bill, sets up a private corporation, also known as HISA or the Authority, with broad powers to create, implement and enforce safety rules and drug and medication policies with the Federal Trade Commission providing some measure of oversight.

Landry, who brought suit against HISA in U.S. District Court in the Western District of Louisiana, was the keynote speaker Tuesday on the first of three days of panel discussions and presentations at the National Horsemen's Benevolent & Protective Association (NHBPA) conference being held in conjunction with the Association of Racing Commissioners International (ARCI), which represent pari-mutuel racing regulators.

“If we don't get this thing struck down, you better have this meeting in probably the dining room–and I mean the small dining room here at the Monteleone,” Landry said. “It will be a bunch of folks who have more money in their pockets than they know what to do with. And they're going to control the tracks and horse racing, and the rest of us really won't be able to enjoy the sport. This law is actually designed to eliminate the very fabric of horse racing. And so we stood up.

“I said, 'We are going to keep filing suits, and we're going to find a way to bring this thing to the U.S. Supreme Court if we have to. Guess what? We are there. And I'm glad we're there. I know the Sixth Circuit decision (upholding HISA, in contrast to the Fifth Circuit's appellate court ruling) was not all that great for us. But quite frankly, I think it was. Because it is going to absolutely force this case before the United States Supreme Court.”

Suhr added, “I believe this case is important not just for this industry. I know it is. But I'm here because I believe it's important for our country and our democracy, and I don't say that lightly. Because fundamentally what we're fighting about is accountability, transparency and fairness, which are core guarantees of our Constitution to all of us as citizens. When the government exercises power in our lives, when it comes into our business, our families, it is accountable to voters, it is transparent to the stakeholder community, to the news media and to all of us as citizens. And it is neutral. It is independent and it is fair when it exercises that power.”

Suhr said, based on their written SCOTUS opinions, that he believes there are enough justices to strike down HISA. “There's no such thing as a slam dunk in my business,” he said. “It's a lot like yours. Everything is a little bit of a gamble. But I do this for a living and I can tell you, we brought this case because we believe when it gets to the Supreme Court, those fundamental principles we've been talking about are actually going to decide the day. I think we have a really great shot at this.”

A Tuesday afternoon panel offered concepts that could lead to uniformity without vesting so much control and power in one entity and still utilizing the existing racing commissions.

“As we all look through a different lens now, something has to be established for uniformity,” said National HBPA CEO Eric Hamelback. “We want to make it constitutional and we want to make sure the right participants are helping to make the decisions. I see it as the right participants are in this room. We want uniformity based on science. We want it based on peer-reviewed research. We feel the way the (HISA) legislation was drafted, it doesn't lean toward being based on science. I think there's a lot of opinion in there.”

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Fifth Circuit Judges Deny Motions Related to Rewritten HISA Law

by Sue Finley and T. D. Thornton

This story has been updated.

The Fifth Circuit United States Court of Appeals on Tuesday denied a motion by the Horseracing Integrity and Safety Act (HISA) Authority for that court to vacate its recent opinion that HISA is unconstitutional.

Back on Jan. 3, the HISA Authority had asked for the Fifth Circuit's Nov. 18, 2022, anti-constitutionality order to be vacated based on a federal rewrite of the HISA law in December.

Also on Tuesday, separate motions for a rehearing of the case made by both the HISA Authority and the Federal Trade Commission (FTC) were shot down by the same Fifth Circuit panel of judges.

And after ruling on those two motions, the Fifth Circuit then issued a mandate that stated, “IT IS ORDERED and ADJUDGED that the judgment of the District Court is REVERSED and REMANDED to the District Court for further proceedings in accordance with the opinion of this Court.”

The flurry of Fifth Circuit court action Jan. 31 bolstered the case for a plaintiff team led by the National Horsemen's Benevolent and Protective Association (NHBPA), which two weeks ago urged the court not to grant either the vacated order or the rehearings because the new federal law that amended the operative language of HISA did not “fix” all the alleged constitutionality issues that plaintiffs have raised in federal lawsuits.

“We view this as additional strong evidence as to the valid concerns we have been raising all along and this should remind everyone that constitutionality isn't optional,” Eric Hamelback, the chief executive officer of the NHBPA, said in a statement.

“We have made it very clear that the one-sentence so-called fix tucked into Congress's must-pass year-end spending bill did not address all the legal questions created in the HISA corporation's enabling legislation,” Hamelback continued.

“With that said, it's extremely gratifying that the Fifth Circuit Court of Appeals has denied the HISA corporation's motion to vacate the Appellate Court's original unanimous opinion that found the Horseracing Integrity & Safety Act unlawful,” Hamelback said.

Asked to comment on Tuesday's court orders and the mandate, Mandy Minger, HISA's director of communications, wrote in an email that, “In the aftermath of the recent Congressional amendment, and without opining on the newly amended HISA law, the Fifth Circuit has sent the case back to the district court. Outside Louisiana and West Virginia, the Authority will continue enforcing the Racetrack Safety Program and preparing for the implementation of its Anti-Doping and Medication Control Program on March 27, subject to the Federal Trade Commission's approval of the rules.”

At a later point in the NHBPA statement, Hamelback took umbrage with the HISA Authority's recent resubmission of those medication rules while constitutional questions remained in limbo.

“Citing the legal uncertainties in the wake of the Fifth Circuit's ruling, the FTC issued an order on Dec. 12 of 2022 disapproving the Anti-Doping and Medication Control proposed rules submitted by the HISA corporation until those questions regarding constitutional challenges are resolved,” Hamelback said. “Therefore, it was the height of arrogance for the HISA corporation to recently resubmit such rules on the pretext that the so-called fix actually was one. As we see it now more than ever, the Fifth Circuit Court made it clear significant constitutional questions remain with HISA.”

Hamelback continued: “To be clear, absolutely nothing has changed in the Fifth Circuit Court of Appeals since the FTC originally rejected these rules, and the FTC must wait on the outcome of ongoing litigation to be resolved. Along with a bipartisan group of U.S. Senators and Congressmen, we believe the FTC must reject these again based on the unconstitutional uncertainty.”

Prior to reaching the Fifth Circuit on appeal, the underlying lawsuit was initiated by the NHBPA and 12 of its affiliates against personnel from the HISA Authority and the FTC on Mar. 15, 2021, bringing anti-constitutionality claims under the private-nondelegation doctrine, public-nondelegation doctrine, Appointments Clause, and the Due Process Clause.

On Mar. 31, 2022, a U.S. District Court judge dismissed that suit, writing in an order that “despite its novelty, [HISA] as constructed stays within current constitutional limitations as defined by the Supreme Court and the Fifth Circuit.”

The HBPA plaintiffs appealed that decision, leading to the Fifth Circuit's reversal on Nov. 18.

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