Tag: HIWU

Who Bears Compliance Responsibility if WV Can’t Hire HIWU Vets?

Facing a dire shortage of veterinarians at the state's two Thoroughbred tracks and under deadline pressure to decide whether to enter into a voluntary implementation agreement with the Horseracing Integrity and Welfare Unit (HIWU) prior to that entity's Jan. 1 start date, the West Virginia Racing Commission (WVRC) on Monday pressed a representative of HIWU for clarity on who, exactly, will bear responsibility if the minimum required number of equine drug testing employees can't be hired within the next six weeks.

It took some polite but persistent questioning by commissioner J.B. Akers to get an answer to that question. But Alex Waldrop, the recently retired National Thoroughbred Racing Association chief executive who now works as an advisor to HIWU, eventually conceded that “the burden right now is on HIWU.”

Akers had wanted assurance that West Virginia's racing wouldn't be subject to a shutdown if neither the commission nor the tracks could fill the federally required positions related to the coming of HIWU, an overarching national concern that has ramifications beyond just Mountaineer Park and Charles Town Races.

“I have a hard time believing that we're alone on this issue,” Akers said. “If it's only a few jurisdictions that's one thing. But if it's a substantial number of jurisdictions [that can't meet the staffing statute], I think that frames the issue a little differently.”

HIWU is the entity that will operate HISA's anti-doping program. HISA creates the rules HIWU will enforce.

In October, the WVRC, like racing commissions other states, was notified of the details of the combined agreements that HISA and HIWU want racing jurisdictions to either accept or decline prior to the Jan. 1 implementation date. Commissions and/or tracks have already been assessed costs for the 2023 operations of the two programs; if states opt-in to the agreements and pay some of the costs up front, their assessments will be reduced.

Joe Moore, the WVRC's executive director, said his state is already operating under a modified 2022 agreement with HISA on its racetrack safety program. He explained that he would like the proposed combined 2023 HISA and HIWU agreements split into two separate ones because the safety standards are a “much smoother agreement to extend [but] I believe the HIWU agreement is going to be a much heavier lift.”

At a time when the hiring marketplace is fierce nationwide and Mountaineer and Charles Town already find it difficult to obtain veterinary help, Moore stated it would be next to impossible for West Virginia to go out and hire at least 12 new people to work in drug testing oversight, which according to the incoming HIWU rules must consist of at least one veterinarian, a veterinary technician, a test barn supervisor, and five assistants at each track.

“I will tell you that neither of West Virginia's two test barns are anywhere close to this minimum,” Moore said.

“At Charles Town we have a vet supervisor who conducts our blood draw, two full-time assistants for urine collections, and a part-time assistant. Charles Town has one vet that does the pre-race and nightly card at the same time. We do not have a dedicated vet for the test barn, and we do not have a licensed vet tech,” Moore said.

“At Mountaineer Park, you have a licensed vet tech and three [per-diem] vet assistants for urine collection. Mountaineer Park has one vet for pre-race and nightly racing and no vet dedicated to the test barn,” Moore said.

Moore said one idea could be for the WVRC to staff the positions as best as it can, then ask HIWU to “fill in the gaps” while rebating the state for the positions West Virginia pays to cover.

“Or HIWU may take the stance of, 'You don't have enough [staff]. We're going to take over the whole operation,'” Moore postulated.

Another option, Moore said, would be to see if HIWU would be amenable to compromising on some of the required test barn positions by reducing or eliminating them.

Waldrop said that third option isn't likely to happen: “I don't think there is much, if any, leeway in [eliminating] the individual positions that need to be filled on a daily basis at West Virginia racetracks.”

But Waldrop did add that, “I do think that a cooperative effort between West Virginia and HIWU is the best way to go forward here. But I can't deliver that today. I can't promise that will be the case.”

Akers asked Moore if it would even be possible for the WVRC to post the jobs, interview candidates, perform background checks, and hire and train them prior to the Jan. 1, 2023, deadline.

Moore replied, “Commissioner, this couldn't be done by January of 2028. The racing commission does not have the funding to hire 12 additional personnel on a full-time basis.”

Willing and available veterinarians, Moore added, “don't exist out there right now.”

Waldrop explained that HISA and HIWU could assist with hiring by tapping into the resources of Drug Free Sport International, which has been hired to build HISA's independent Anti-Doping and Medication Control enforcement agency.

But while technicians and specimen collectors can be more easily trained to do their jobs, Waldrop admitted that, “The veterinary aspects are the most challenging. And I can tell you that HIWU is well aware of that, and they've been aware of that for some time. That's probably the biggest hurdle that they see in the near term. And they certainly intend to be prepared on Jan. 1.”

Waldrop continued: “Vets are hard to come by anywhere in the country right now, though, so I'm not going to sit here and say West Virginia is entirely unique. Equine vets [who are] familiar with the racetrack, that's a challenge. But it's one that HIWU has accepted, and they are confident that they can meet it.”

Akers then again prompted Waldrop to clarify who'd be held responsible if that didn't happen.

“Is it going to be HIWU's position, if, you know, that the state of West Virginia is out of compliance and it's our fault this didn't happen?” Akers asked. “Or is HIWU going to take responsibility and say that [the WVRC] made reasonable attempts and couldn't find the personnel to hire?  Or is our racing jurisdiction going to be allegedly out of compliance with the statutory scheme, and therefore threatened by you with regard to whether we're even allowed to race or not?”

Waldrop replied that, “At this point in time, 'Who's out of compliance?' is an issue we could debate. But I think from the industry standpoint, it's HIWU's intention to be up and running and prepared to go Jan. 1.”

Waldrop continued: “One of the challenges you have in West Virginia [is] that you don't have the budgetary resources to hire these individuals…and I respect [and] understand that. HIWU doesn't have that challenge. HIWU has the financial resources to hire these people. So it's one of those hurdles that can be overcome because HIWU has that ability…. HIWU is part of Drug Free Sport, which is an international organization which has massive resources, financial as well as personnel, that they can draw upon.”

Akers said that it was his understanding that HIWU, HISA and Drug Free Sport don't currently have any regulatory veterinarians on staff.

“You're correct,” Waldrop answered. “You're focusing on exactly the right point, which is the challenge here is reg vets. The other positions we will provide. The reg vets are the challenge.”

But Akers still hadn't received a direct answer to his compliance question, so he respectfully but emphatically asked a third time if West Virginia was at risk of having its racing shut down over not having the required HIWU hires in place.

“I don't think that last scenario is going to occur, sir,” Waldrop replied. “HIWU will work with HISA, and do their level best to keep racing going in West Virginia without interruption to provide the staff that's necessary…So I would say to you that the burden right now is on HIWU to be prepared on Jan. 1.”

Akers said he appreciated that answer, adding that while he understood that Waldrop isn't a HIWU executive, he did want the minutes of the meeting to reflect that the HIWU advisor had articulated that “the burden should be presently on HIWU to make sure that these requirements are implemented by Jan. 1 to the extent that those are their mandates.”

In light of a long list of questions that Akers said he still had about entering into a voluntary HIWU agreement for 2023, Waldrop offered to set up a conference meeting in about two weeks between HIWU's executive director and general counsel and any interested West Virginia racing stakeholders and commission members.

The commission ended up taking no action on Monday on either opting into or out of the HISA and HIWU agreements for 2023.

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HISA Timetable Outlined at Breeders’ Cup Press Conference

As the Breeders' Cup is on the cusp of running its two-day championships for the first time under the regulations of the Horseracing Integrity and Safety Authority (HISA)'s Racetrack Safety Program, and with the roll-out of HISA's Anti-Doping and Medication Control rules expected to be implemented in under two months, HISA chief executive officer Lisa Lazarus detailed a timetable for industry stakeholders at a Keeneland press conference Wednesday morning.

“January 1 will not only be the start of the year, it will be the beginning of a new era in racing,” Lazarus said. “For the first time we will have all 28 or so jurisdictions that run Thoroughbred races operating under one set of uniform anti-doping rules.

“The most critical points to be aware of [are that] every single sample will be analyzed for the exact same substances across every jurisdiction. We are working with the laboratories to make sure that they're all reporting positive results at the same levels. So, you know, it's one thing to have uniform rules. But having uniform implementation is really important to make sure you have a generally uniform system.

“This is what everyone's been waiting for. And we're going to be able to deliver that on Jan. 1. There are 14 states that are racing Jan. 1, and the Horseracing Integrity and Welfare Unit (HIWU) is very, very deep in preparations to deliver that program,” Lazarus said.

HIWU is the entity that will operate HISA's anti-doping program. Lazarus explained that HISA creates the rules HIWU will enforce, and that those  rules first have to be approved by the Federal Trade Commission (FTC). Lazarus said she expects that to happen “in short order.”

According to the FTC, the public commentary period for those new rules ends on Nov. 14.

“What's great about [this regulatory framework] is that you have genuine independence, impartiality, across all of the states,” Lazarus said. “You have consistent enforcement, consistent adjudication. You'll see that cases will be decided quickly. It will be a lot quicker than you're used to. They'll be decided through an arbitration system, and an appeal system through the FTC process, not in state courts. And the importance of that uniformity, we really believe is going to be a game-changer for horse racing.

“It's important, obviously, as we enter into this era that we have cooperation from the states, from the racetracks,” Lazarus continued. “And I'll say that since we've gotten started with the Racetrack Safety Program, that cooperation has gotten better and better every day. Understandably, anything completely new and sort of transformational takes some time, and takes kind of fixing a little bit of trial and error.”

HIWU executive director Ben Mosier noted that “HIWU will maintain its own investigations team, and we hope to also work with state racing commissions and others that can help us with 'boots on the ground' and investigations in live settings. We will also be establishing a tip line for whistleblowers, starting Jan. 1, and it will be a great for information to be shared with us for possible anti-doping and controlled medication concerns.

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Lisa Lazarus Talks HISA Budget

Early last week, a bill landed on the doorsteps of the nation's state racing commissions containing their portion of the money needed to fund the Horseracing Integrity and Safety Act (HISA) remit for next year.

The total $72,509,662 amount is broken down four main ways:

  • $58,108,758 to run the anti-doping and medication control (ADMC) program overseen by the newly minted Horseracing Integrity and Welfare Unit (HIWU);
  • $3,654,830 towards HISA's racetrack safety program, which initially went into effect on July 1 this year;
  • $5,466,709 to continue building the technology needed to support HISA's programs;
  • And $5,279,365 for administrative and organizational costs, with $1.8 million of that budgeted for litigation expenses.

That $72.5 million figure doesn't necessarily have to be the final total. The Horseracing Integrity and Safety Authority–the non-profit umbrella established by HISA to broadly oversee the national program–has offered state racing commissions approximately $23 million in monetary credits against the assessment.

“These credits are available to [state racing commissions] who choose to provide sample collection personnel and investigative services (including stewards involved in investigations) in compliance with the new Anti-Doping and Medication Control (ADMC) Program rules,” a HISA press release stated.

To dig down into the particulars, the TDN spoke earlier this week with HISA CEO, Lisa Lazarus.

The Primer

The financial assessments recently sent to individual state rate commissions form a “worst-case scenario” budget “if nobody works with us and we can't hold onto any of that money,” explained Lazarus.

In other words, that $72.5-million figure is the sum total to the industry if no states reach an agreement with HISA and HIWU to continue performing many common anti-doping and medication control program tasks like sample collection and certain investigative duties.

All state commissions could, of course, deicide to fund their portion in full. But for those jurisdictions that reach an agreement with HISA and HIWU, they will likely want to offset some of those costs through the $23 million in credits on offer.

Credits are based, said Lazarus, on how much it would cost the Authority to fill a designated position, rather than what it currently costs the commission for the same role.

And because such a calculation isn't necessarily a 1:1 trade-off–and because many commission personnel often perform more than one task–Lazarus said that she believes the credit system largely plays to a commission's financial advantage.

“Let's say Kentucky's spending $1 million dollars a year on sample collectors,” said Lazarus, using a hypothetical number. “If we had to go in there and hire all new collectors from scratch, we'd actually have to pay $1.5 million. A lot of those state collectors might [also] do other things for the state.”

More broadly, HISA will assume other financial burdens come Jan. 1, including investigation costs, laboratory fees and shipping costs, as well as legal expenses associated with prosecuting ADMC program violations.

But this leads to a potential conundrum for some commissions whose budgets were finalized many months ago in the state legislature when HISA's 2023 budget was unknown, and who, in some circumstances, might have already accounted financially for these costs, including for personnel.

In response, Lazarus pointed in a follow-up statement to the available HISA budget relief, and added, “It's been clear for months that HISA's ADMC program would be going into effect by January 1, 2023. Our goal is that some processes and staffing that have been in place in the past can be re-purposed in collaboration with HIWU so we're all being as efficient and strategic about the transition as possible.”

Ultimately, per Lazarus's calculations, the additional cost of the federal program to the entire industry is roughly $20 to $25 million more than what is currently spent nationally, and she calls those extra monies the cost of “automating and professionalizing a national program.”

Said Lazarus, “That's a relatively small amount, in my view, to invest in safety and integrity to protect a sport that has so much potential.”

Opting Out

Fourteen different jurisdictions are scheduled to host racing on Jan. 1, when the new anti-doping and medication control program goes into effect. And these respective states have until Nov. 17 to decide whether or not to enter into an agreement with HISA and HIWU.

The others will be required to make that agreement decision later down the line, proportionate to the date of their first scheduled 2023 race meet. So far, said Lazarus, no individual states have entered into a voluntary agreement.

On the flip side, only Ohio has so far officially opted out, said Lazarus.

For those commissions that shun a voluntary agreement, HISA's monetary assessment falls onto the shoulders of the respective tracks–a figure which, among all the tracks in the state, is no larger than what had been assessed each respective commission. All sample collections in that state will also become HIWU's responsibility.

The amount charged each track is based on a per-start calculation that factors in numbers of starts and the total purses paid out.

As such, the per-start calculation can vary quite wildly between different tracks, with Los Alamitos charged a per start fee of around $85 and Kentucky Downs looking at a fee of over $1,000 per start. Churchill Downs would face the largest overall assessment if the state commission opts-out of an agreement–nearly $3.9 million.

Furthermore, “if the state opts out, they lose the opportunity for the monetary credit,” said Lazarus. But she added that there are possible avenues for individual tracks or racing associations to unilaterally enter into agreements with HISA to access some of the $23 million in credits.

A track, for example, could form a not-for-profit organization–similar in effect to the New York Racing Association–and hire their own team to conduct tasks like sample collection.

“We're open to any agreement,” said Lazarus, mirroring HISA's approach for the race-track safety portion of the program. “We've had to be really creative because every state is different, and we have to be sensitive to that.”

Which leads to perhaps the most urgent question: Will HISA have enough adequately trained personnel to fill the required positions among those states that opt-out before Jan. 1?

“We've been working very hard on recruiting and getting the workforces in place so that we don't miss a beat on Jan. 1,” said Lazarus.

She is unsure, however, which of the 14 jurisdictions scheduled to race on Jan. 1 will opt-in or out beforehand, stressing how the financial assessments have only very recently been issued.

That said, “I think I can predict with a fair amount of certainty–maybe give or take one or two states–on who's going to enter into an agreement and who's not,” said Lazarus, pointing out how 18 of the 23 individual states entered into an agreement of sorts with HISA for the racetrack safety portion of the program.

Not all agreements were identical, however, and it's believed that only about a handful of states shouldered their racetrack safety costs in full.

Other Budget Components

HISA has priced the entire cost of sample collection, laboratory analysis, enforcement, and other program costs at around $58 million.

Lazarus pinned the laboratory costs alone at around $18.7 million. This is in comparison to estimated national laboratory costs of between $13.2 and $13.8 million from a few years ago.

HIWU can tap all laboratories currently accredited by the Racing Medication and Testing Consortium (RMTC) for adoption into the ADMC program. Laboratory contracts have yet to be inked though, said Lazarus. “I think they're pretty far along,” she added, about those negotiations.

“What I'll tell you is that the strategy and the focus is on smart intelligence-based and investigation-based testing,” she said, adding that, “I actually think you'll see an increase in out-of-competition testing almost everywhere, because that's going to be an important component of the new testing plan.”

Lazarus demurred, however, when asked if this scenario could also lead to a potential reduction in post-race testing among those states with currently the most rigorous post-race testing programs.

A key part of HISA's intelligence-based investigatory approach appears to be the use of technology and centralized databases. For this, HISA has budgeted around $5.4 million for next year.

The racetrack safety database is, of course, already up and running, though Lazarus said that it's constantly being tweaked and improved. She also said that the database for the ADMC program will be “ready to go” on Jan. 1.

At least initially, the ADMC database will compile information like the responsible person in the event of a violation, their charges, case status and the eventual rulings.

HISA has also budgeted $1.8 million next year for the costs associated with fighting the four suits seeking to derail the law. In the event HISA succeeds in court, could it seek cost recovery from the plaintiffs?

“I'm going to leave that one for lawyers,” Lazarus responded. “I do know they have looked into it and we're evaluating our options there.”

Other Stakeholder Questions

The TDN spoke with several stakeholders around the country to canvas other questions and concerns about the budget and the impending roll-out of the ADMC program. The key questions are posted below along with Lazarus's response.

 

Q: Even if a jurisdiction enters into an agreement with HISA for next year, could some current state commission positions be culled, made redundant through efficiencies made in the national program?

“Obviously, many responsibilities will no longer be on the shoulders of the racing commissions, but don't forget they still have other breeds like Standardbreds and Quarter Horses,” she said.

“How all of that works out, it's hard for me to say at this stage, but I think you're probably right philosophically that we'll continue to see efficiencies in this space as we work towards a national uniform professionalized system, but one that's also as cost-efficient as we can make it.”

Q: What can you tell stakeholders in those states with the highest HISA assessments who feel as though they're essentially subsidizing the high volume racing, low purse states?

“The HISA board approved a cost-assessment methodology that equally weighed starts and strength of purse. If you didn't have that methodology, you'd have states like Pennsylvania paying more than Kentucky. The statute requires us to be equitable, and it felt to the board that was the place you would land on equity,” said Lazarus.

“They may have potentially an outsized role to play in their view now, but they also have a tremendous amount to gain because when a horse dies or tests positive in a state that maybe doesn't have the same integrity and safety [protocols] in place as some of the bigger, stronger states, that hurts horse racing everywhere,” Lazarus added.

“At the end of the day, if HISA works as it should, it should form a protective ring around the industry and give it a stronger foundation with which to build.”

Q: HISA statute precludes state commissions from billing a track or association for the same services that fall under HISA's purview. What will HISA do to do to prevent this from happening?

“There was some discussion about this around the racetrack safety program and where it came up, we just stepped in and said, 'it's not allowed from a legal standpoint,'” said Lazarus.

“All of these commissions, they work for state governments. These are ethical people who are professionals. So, if you put it to them that it's not allowed, they acknowledge it pretty quickly. I don't see that as being a real concern.”

Q: Do you expect any states to drop-away due to costs?

“Ultimately, there's no avoiding the cost. I mean, I'm not sure if you heard me say that we'll work with all of the states and racetracks to find a way of dealing with them that's affordable for them, that works for them,” said Lazarus.

“We will do our best to reach some kind of agreement that is manageable. But at the end of the day, if they just don't want to pay, then the only real option for them is the Texas option, which is deciding not to send out your pari-mutuel signal.”

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Dr. Mary Scollay Named Horseracing Integrity & Welfare Unit Chief of Science

The Horseracing Integrity & Welfare Unit (HIWU), which was established by Drug Free Sport International to administer the Horseracing Integrity and Safety Authority's (HISA) Anti-Doping and Medication Control (ADMC) Program, has named Dr. Mary Scollay as its chief of science.

In this role, which she commences Oct. 10, Scollay will oversee HIWU's Science Department, including the HISA Equine Analytical Laboratory accreditation program, and education efforts ahead of the ADMC Program launch in January 2023. She will also prioritize research development into Prohibited Substances while engaging with veterinary scientists, pharmacologists, and other experts in the Thoroughbred industry. Additionally, Scollay and her team will manage a Prohibited Substances database that will be available for industry stakeholders to use as a reference tool.

Scollay joins HIWU after serving as the Racing Medication & Testing Consortium's (RMTC) executive director and chief operating officer for three years. While with the RMTC, she directed the advancement of world-class laboratory drug testing standards, promotion of RMTC-recommended rules and penalties for prohibited substances and therapeutic medications, monitoring of emerging threats to the integrity of racing and the health and welfare of racehorses, and administrative oversight of RMTC-funded research projects and educational programs.

Before leading the RMTC, Scollay spent more than 30 years as a racing regulatory veterinarian, including 11 years as the Kentucky Horse Racing Commission's equine medical director.

“Dr. Scollay's extensive experience in the areas of anti-doping rules, testing standards, and veterinary regulation in the Thoroughbred industry will make her a key asset to HIWU,” said Ben Mosier, executive director of HIWU. “We are fortunate to retain her knowledge and skillset as we prepare for the implementation of the ADMC Program on January 1, 2023.”

Named to HISA's ADMC Standing Committee in May 2021, Scollay has resigned from that responsibility to take on her position with HIWU.
“HISA represents the way forward for Thoroughbred racing, the only way forward,” said Scollay. “I am grateful for the opportunity to continue serving the sport during this transition, and I am committed to working with HIWU to deliver a best-in-class equine anti-doping program to the industry.”

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