Horsemen’s Groups File Federal Lawsuit Over HISA

Organizations representing some Thoroughbred horse owners and trainers have filed a federal lawsuit to stop the Horseracing Integrity and Safety Act (HISA), signed into law in the U.S. Congress's December omnibus spending bill.

The National Horsemen's Benevolent and Protective Association (National HBPA) and state affiliates in Arizona, Arkansas, Indiana, Illinois, Louisiana, Nebraska, Oklahoma, Oregon, Pennsylvania, Washington and West Virginia are suing HISA's newly-created “Authority” to regulate the sport and the Federal Trade Commissioners. In addition, they are suing the Nominating Committee and asking the court to immediately stop them from appointing the Board members of the Authority.

They are represented by attorneys at the Liberty Justice Center, which is contending that HISA is unconstitutional because it gives powers to private individuals and a private organization in an area where only a government entity should be allowed such powers.

Notably absent from the list are horsemen's groups representing owners and trainers in the four leading racing states, New York, Kentucky, Florida and California. The New York Thoroughbred Horsemen's Association has come out in favor of HISA.

The news of the lawsuit brought an immediate and strong response from those who have been working behind the scenes for the passage of HISA, which some believe is a necessary step in order for the sport to clean itself up and prevent cheating and the use of performance-enhancing drugs.

“If they are successful and they stop this, you can kiss the horse industry goodbye,” said breeder and owner Arthur Hancock. “Look at what has happened in the past. That so many have come together to try to clean up the sport is a wonderful thing. Everyone wants a level playing field and this will give it to them. I don't know why anyone would object to that.”

“This is ridiculous,” said Hall of Fame trainer Mark Casse. “I read this and thought, 'you've got to be kidding me.' All we are trying to do is clean up our sport. Looking at the states where they are backing this, those are some of the states that most need cleaning up. I don't know how anybody could be against cleaning up our sport. I can tell you one thing, they never asked me for my opinion.”

While it remains to be seen whether or not the lawsuit succeeds in circumventing HISA, it could cause delays. The United States Anti-Doping Agency is set to begin policing the sport and testing its participants on July 1, 2022. That date could now be in jeopardy.

According to its website, The Liberty Justice Center is “a non-profit conservative public-interest litigation center that fights to protect economic liberty, private property rights, free speech, and other fundamental rights in Illinois and beyond.” According to Wikipedia, The Liberty Justice Center is an associate member of the State Policy Network, a web of state pressure groups that denote themselves as “think tanks” and drive a right-wing agenda in statehouses nationwide.

“All Americans should be concerned when Congress gives power to regulate an entire industry to a private group of industry insiders,” said Brian Kelsey, senior attorney at the Liberty Justice Center, in a statement. “This goes way beyond setting rules for the sport of horse racing. This is not the NBA or the NFL. The 'Authority' has the power to make laws, issue subpoenas and effectively tax owners with little real oversight. Placing that power in a private organization is illegal and must be stopped.”

The Jockey Club, the main proponent of HISA, also issued a statement Monday.

“We are not at all surprised by the lawsuit filed against HISA today by a number of affiliates of the National HPBA,” it read. “We are confident that the law is constitutionally sound and legal, as it is patterned precisely after other longstanding law. It's a shame that the National HPBA has chosen this expensive and time-consuming path, but it is consistent with their well known pattern of conduct that has served to block or water down needed reforms that the vast majority of the equine industry and animal welfare organizations support. It is worth noting that this suit is also brought by state HBPA affiliates that are the greatest beneficiaries of the earlier federal legislation, the Interstate Horseracing Act of 1978, which confers upon them virtually unlimited authority over interstate wagering on Thoroughbred races.”

Jeff Gural, who owns the Meadowlands and has been one of the leading voices calling for harness and Thoroughbred racing to undergo sweeping changes when it comes to integrity issues, said he does not believe the lawsuit will ultimately stop HISA.

“I think it will prevail,” he said. “I don't think they have a chance because Judges will look at this and, instinctively, will want to keep the horses from being drugged. Them going in and saying drugging horses is OK is going to be tough to sell, especially after all those people were indicted. I'm not too concerned.”

The lawsuit was filed on Monday in the U.S. District Court for the Northern District of Texas.

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Harness Horsemen Sign Letter Support Horseracing Integrity & Safety Act

Leaders in the harness racing industry have signed a letter supporting the Horseracing Integrity & Safety Act, which was signed into law on Dec. 27, 2020. Meanwhile, the United States Trotting Association has confirmed its opposition to the new law.

The horsemen's letter, first published at Harness Racing Update, reads:

The undersigned are encouraging the Standardbred industry about how best to structure the Horseracing Integrity & Safety Act to be inclusive of Harness Racing's unique needs.

We support the Horseracing Integrity and Safety Act recently passed by Congress and signed into law by President Trump.

We know that there are details about funding and other matters that will have to be worked out in good faith between regulators and members of the horse racing community. And we know that the new law is not perfect. But we believe that the new law is a legitimate and important step in the right direction toward universal medication rules for our sport, increased enforcement of drug rules to make the sport more honest, and a greater public acceptance of horse racing as a safe, humane sport.

We need all of these things to protect our sport's future. And we need to work within the broader racing community to make the law work for us, especially since it requires regulators to consider the “unique characteristics” of each breed. We believe that representatives of the Standardbred industry should work with those who support the new law, and who will be enforcing it, to help establish the rules and policies that will likely govern our sport for years to come.

Signed,

Breeders

Adam Bowden (Diamond Creek); Bruce Trogden (Emerald Highlands); Steve Jones (Cameo Hills); George Segal (Brittany); Mike Gulotta (Deo Volente); Senena & Jeff Esty (Spring Haven); Frank Antonacci (Lindy); Bob Brady (Kentuckiana); Al & Michelle Crawford (Crawford Farms); Ken Jackson (Kentuckiana); Mario Zuanetti (Atlantic Trot); Massimo Bianchi; Margareta W. Kleberg (Menhammer St); Tom Hill; Art Zubrod (Brittany); Jim & Gibson Wilhite; Knutsson Trotting; Tristan Sjoberg; Bernie Noren; Al Libfeld; Sam Goldband; Charles & Julie Nash; Jon Wiesman; Pond A Acres; Andrew Cohen (Bays Stable); Leah Cheverie; David Heffering (Tara Hills); Frank Lomangino; Johan Arneng (Brixton Medical); John Donato; Ernny Gerbaulet; Richard Gutnick; Peter Martinson; Robert Mondillo; Victor Zehr; Ed Telle; James Daut; Robert Hechoff; Richard Arnold (Willow Oak); John Schmucker (Black Creek); Dan Baer (South Mountain); John Lengacher; John Bootsman (Boko); Dan Lengacher; Duncan Taylor (Taylor Made); Jeff Ruch (Pinestone); Anders Strom (Courant); Maumee River; Jeff Gural (Allerage); All American Harnessbreds; Mike Andrew; Maurizio & Marina Biasuzzi; John Carver; Joe Mendelson; Jim Glass (Walco); Stephanie Rothaug (Rails End); Jim Avritt Sr (Meadow Creek); Stewart Goldberg (Mini Sinks); Randy & Kim Haines (Cool Winds); Steve & Cindy Stewart (Hunterton); Elmer Miller; Lorne Polger (Polger Holdings)

Trainers and Drivers

Ron Burke; Brian Brown; Virgil Morgan Jr.; Jimmy Takter (Hall Of Fame); Ben Wallace; Casie Coleman; Nifty Norman; Jeff Fout; Ed Lohmeyer; Linda Toscano (Hall Of Fame); Paula Wellwood; Mike Keeling; Jim Campbell; Carter Pinske; Tony Alagna; Donna Lee Ozment; Joe Holloway (Hall Of Fame); Per Engblom; Tom Cancelliere; Enos Weaver; Donald Dancer; Blair Burgess (Hall Of Fame); Brad Mcninch; Kevin Mcdermott; Jean Wellwood; Bob Stewart; Murray Brethour; Jim Arledge; Greg Peck; Kelly O'Donnell; Tim Lane; Scott Mogan; Brett Bittle; Scott Zeron

Owners

Mark Weaver; Howard Taylor; Herb Liverman; John Fodera; Murray Brown; Brad Grant; Fred Hertrick III; Carl Howard; Martin Sternberg; Bo Lofvander; Doug Millard; Ernie Gaskin; Robert Burgess; Fred Hudson; Bryan Montgomery (Regency Ins.); Frank Chick; Myron & Stephanie Bell (Riverview); Harvey Nagner (Radio Racing); Marc Guilfoil (Ky. Racing Comm.); Richard Young; Martti Ala Seppala; Harvey Fried; Robert Lindstrom; Perry Soderberg; Tommy B Anderson; Jack Remey ( P. Judge); Lynn Jones; Randy Manges; Bob Marks; Joyce & Richard Mcclelland; Bill Vit (Cool Cat); Craig Henderson; Ray Baynes; Gary Corona; Allan Schott; Howard Perlmutter; Gorden Banks; Dan Kazmaier (P. Judge); Bob & Jeanne Stewart; Mark Hanover; Ed Biddle; Kimmo Kempi; Nick Salvi; Mike & Don Robinson; Joe Sbrocco; Virginia Berkner; Steven Wienick; Martha Frank; Robert Leblanc; John Balzer; Geoffrey Dubrowsky; Bill Reepmayer; Frank Cannon; Jason Settlemoir

Vets

Dr. Patty Hogan; Dr. Terry Ruch; Dr. Doug Hutchins; Dr. John Park; Dr. Lynda Rhodes Stewart; Dr. Nathaniel Newton; Dr. Ted Mazorisi

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Feds Slam Alleged Dopers’ Assertion That HISA Creates Loophole

Prosecutors in the racehorse doping conspiracy case that ensnared 29 racetrackers, veterinarians and pharmaceutical brokers one year ago tried to convince a federal judge Friday that recent motions made by some of the defendants to dismiss drug alteration and misbranding charges are “without merit” and represent “an effort to invent a statutory limitation where none exists.”

The government's memorandum of law filed Mar. 5 in United States District Court (Southern District of New York) addresses a number of alleged legal flaws in the defendants' motions to dismiss, including several that prosecutors state would be more appropriately argued when the case goes to trial, not before it.

The defendants' motions, prosecutors allege, “do not actually seek the dismissal of the Indictment, but are more accurately described as premature motions regarding the sufficiency of the Government's evidence to be presented at trial…. The Second Circuit makes clear that a challenge to whether a statutory element has been satisfied is a matter for trial.”

The government's filing continues: “Defendants Seth Fishman, Lisa Giannelli, Jordan Fishman, Rick Dane, Jr., Christopher Oakes, Jorge Navarro, and Erica Garcia each ask that this Court insert novel, unsupported, and self-serving language into the text of [federal drug laws] in an effort to avoid felony liability for their illegal misbranding conspiracies.” The memo notes that a dismissal motion filed by defendant Michael Tannuzzo on different grounds should also not be granted.

The filing takes aim at the defendants' creative assertion that government prosecutors are overstepping their legal boundary by bringing charges under the applicable federal statute–the Food Drug and Cosmetic Act (FDCA)–when instead, the defendants argue, the case should instead fall under the authority of the Federal Trade Commission (FTC).

Back on Feb. 5, the defendants made the somewhat surprising legal argument that the Horseracing Integrity and Safety Act of 2020 (HISA)–which was signed into law a full nine months after the arrests were made–allegedly gives “plenary authority,” or absolute regulatory power, to the FTC in all federal matters pertaining to horse racing.

The government's Mar. 5 filing laced into that assertion: “The defendants' respective discussions of the passage of what is commonly referred to as [HISA] in the Fishman Motion and the Oakes Motion shed no light on the purpose or application of the FDCA. That is because the 116th Congress's passage of the HISA in 2020 has no bearing upon the intent of the 75th Congress's passage of the FDCA in 1938, and no implication for the plain language of the FDCA's provisions criminalizing misbranding and adulteration of animal drugs.

“As an initial matter, the Supreme Court disfavors reliance on subsequent legislative history in assessing the language and meaning of prior statutes,” the government's filing continues. “In particular, while 'subsequent legislation can of course alter the meaning of an existing law for the future' and 'can even alter the past operation of an existing law' (constitutional objections aside) if it makes that retroactive operation clear…it cannot inferentially amend the purpose behind passage of a prior statute, as defendants wish.

“The dangers of such post-hoc analysis are plain here. Congress did not–in either the FDCA or the HISA–indicate its intent either to acknowledge or create a 'racehorse industry' exception to the criminal prohibition against the distribution of adulterated and misbranded drugs with the intent to defraud or mislead in the FDCA, nor did it so indicate with respect to any other federal criminal law.

“The defendants' arguments in this respect reflect what seems to be a purposeful misreading of both the HISA and the charges against them: the defendants are not charged with violating state racing anti-doping rules and regulations, for which no federal analogue existed prior to the passage of the HISA; they are charged with felony misbranding and adulteration of drugs in interstate commerce in violation of the FDCA. No interpretative gymnastics are required to 'make sense' of one statute in light of the other.”

The government's filing sums up: “The HISA contains no criminal penalties because Congress determined sufficient criminal penalties were already provided for in existing federal criminal laws, laws which the HISA expressly does not modify. Ultimately, though, no reading of the Congressional tea leaves is required. There is no contradiction between the FDCA and the HISA, and no retrospective ambiguity in the text of the former arises from the text of the latter.”

Other counts of the government's case against the alleged dopers are not affected by this recent series of motion to dismiss, and trials are expected to begin in the second half of 2021. But one defendant, Scott Robinson, who has already pleaded guilty to conspiring to unlawfully distribute adulterated and misbranded drugs for the purpose of doping racehorses, has a sentencing hearing scheduled Mar. 9.

The multi-state simultaneous sting netted the high-profile arrests of trainers Navarro and the 2019 GI Kentucky Derby-disqualified trainer Jason Servis, plus a vast network of co-conspirators who allegedly manufactured, mislabeled, rebranded, distributed and administered PEDs to racehorses all across America and in international races.

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Hunter Rankin Named CDI Senior Director of Racing

Hunter Rankin has been hired as Senior Director of Racing for Churchill Downs Incorporated, CDI announced Tuesday. The role was recently vacated following Mike Ziegler's promotion to General Manager of Churchill Downs Racetrack in December 2020.

As CDI's Senior Director of Racing, Rankin will act as a representative and liaison to the U.S. Thoroughbred racing and breeding industry and focus on the implementation of standards and processes outlined in the Horseracing Integrity and Safety Act (“HISA”) across all of CDI's racing properties.

“Hunter brings to this role a breadth of relationships he has developed with key stakeholder groups within the racing and breeding industries,” said Bill Mudd, President and Chief Operating Officer of CDI. “His keen familiarity with HISA will help lead the Company and its racing assets into a successful future within a continuously-changing and evolving industry.”

Prior to this role, Rankin was the President of Sagamore Farm, where he oversaw all farm and Sagamore Racing operations while also building Sagamore Farm as a hospitality asset. He previously served as Executive Vice President of Sagamore Development (now known as Weller Development) and as a Partner at Sterling Thompson Company, where he managed commercial insurance profiles for large real estate, construction and equine businesses.

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