Fifth Circuit Rules No `Emergency’ Status in States Vs. HISA Case

The United States Fifth Circuit Court of Appeals ruled Thursday that it won't treat a request made by the Horseracing Integrity and Safety Act (HISA) Authority to vacate a recent panel opinion and reinstate a stay pending appeal as an “emergency” that requires an expedited decision.

The decision involves a lawsuit under appeal brought by the states of Louisiana and West Virginia, plus other “covered persons” under HISA, alleging unconstitutionality and federal rulemaking procedure violations.

(Note: An earlier version of this story misidentified the plaintiff in the case. The National Horsemen's Benevolent and Protective Association and its affiliates are not party to this decision; they are plaintiffs in a separate lawsuit. TDN regrets the error.)

Instead, the court ruled that the case would proceed under the court's standard timetable, which gives the NHBPA and its 12 affiliates 10 days to file a response to HISA's motion.

“The district court's order preliminarily enjoining enforcement in Louisiana and West Virginia of all then-existing rules promulgated under HISA directly undermines Congress's goal of providing for uniform regulations to protect horseracing participants (equine and human) and restore integrity to the sport nationwide,” the HISA filing from Jan. 3 stated.

“This Court appropriately stayed that order, finding that each of 'the stay elements are met' with respect to the district court's (manifestly flawed) conclusion that the Administrative Procedure Act forecloses the fourteen-day notice period the FTC formally provided…

“The stay pending appeal was necessary to 'allow [the Court] to bring 'considered judgment' to the matter before [it] and 'responsibly fulfill [its] role in the judicial process.' Yet the panel's subsequent decision to remand the case and lift the stay short-circuits that process, not based on the merits of the district court's order-which have never been adjudicated-but on the sole ground that a panel in a 'separate cases held that 'HISA is facially unconstitutional.'”

The HISA filing summed up: “This Court should vacate its panel opinion and judgment, and reinstate the Court's stay pending further adjudication of this appeal…. The Court should grant [a] panel rehearing and reverse the district court's grant of a preliminary injunction.”

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Attorney, Trainer Vienna Joins Epistolary Exchanges on HISA

As the deadline looms for congress to insert language into the full year-end omnibus spending bill to fix constitutional question marks surrounding the Horseracing Integrity and Safety Act (HISA), proponents and critics of the law have taken to an epistolary standoff.

Last week, trainers Wesley Ward and Larry Rivelli issued a letter through the National Horsemen's Benevolent and Protective Association (HBPA) critiquing various aspects of the national program for “too many flaws, missteps and costs that could have been averted with true inclusion and transparency in its development.”

Earlier this week, HISA CEO Lisa Lazarus conducted a zoom conference with Ward, along with attorney and former trainer Darrell Vienna, to grapple with the points raised in Ward's letter.

Issued Wednesday, Vienna released his own open letter to Lazarus, addressing six main points that he said were discussed during Monday's zoom conference.

The topics cover Vienna's thoughts on the financial assessments, the way in which therapeutic and illegal substances have been divided, the new system of detection times and screening limits vs. the old system of withdrawal guidelines and thresholds, HISA's environmental contamination policy, industry input into HISA's working framework, and the new whip rules.

Substantively speaking, Vienna's letter overlaps the contents of an open letter Charles Scheeler, the chair of the HISA board of directors, issued Tuesday addressing what he sees as “misinformation” about the law, in the process arguing that HISA's drug testing program protects “good-faith horsemen,” that HISA's rules “seek to protect” small racetracks and racing jurisdictions, and that HISA has “consistently sought feedback from horsemen” across the country. Read Scheeler's full letter here.

In his open letter, Vienna writes that there is “an apparent and obvious inequity” in the way HISA has calculated its fee assessments.

“For example,” writes Vienna, “Charles Town's annual purse money ($35,000,000) and Keeneland's annual purse money ($32,000,000) are similar; however, Keeneland's HISA Assessment is half of Charles Town's HISA assessment.”

Vienna also takes issue with HISA's environmental contamination protocols, which appear to include only a slim number of substances.

“The vast majority of prohibited substances are not subject to the Atypical Findings Policy. The Policy only applies to initial findings of HISA specified substances, endogenous substances, ractopamine, zilpaterol, and substances not listed on the Prohibited Substances list,” Vienna writes.

“Contrary to HISA's assertion of trainer friendliness, HISA's policy is among the most trainer unfriendly contamination policies in horseracing because it excludes a vast number of substances from the Atypical Findings Policy,” Vienna adds.

Ultimately, writes Vienna, “HISA rules have not been so tested and do not appear superior to ARCI model rules. Rather than rewriting the book, it may be better to see those model rules adopted and enforced uniformly throughout racing jurisdictions. If there was a concerted effort toward that goal, I believe that uniform racing and medication rules would already be the law of the land.”

Read Vienna's full letter here.

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Dilger Equine Scholarship Foundation to Host Golf Tournament

The Gerry Dilger Equine Scholarship Foundation will hold its inaugural golf tournament and auction Oct. 10 at Houston Oaks Golf Course in Paris, Kentucky. In a short period of time the foundation has awarded scholarships to eight young people from North America and Europe.

This was made possible by the support and collaboration of KEMI, Irish National Stud, Springhouse Farm, Lane's End, University of Limerick, University College Dublin and the College of Agriculture, Food and Rural Enterprise in Enniskillen, Northern Ireland.

This inaugural golf tournament has sponsorship and donation opportunities available and is also seeking items for an auction which will follow the tournament. For further information, please email info@gerrydilgerequine.com or call Pat Costello 859-621-7764 or Padraig Campion 859-338-5042.

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National HBPA Issues Statement on FTC Approval of HISA Safety Rules

The Federal Trade Commission (FTC) approved the rules and accreditation standards that comprise the Horseracing Integrity and Safety Authority's (HISA) Racetrack Safety Program on Friday.

The National HBPA issued the following statement on Saturday:

“The Federal Trade Commission (FTC) on Thursday, March 3, 2022, issued an order approving without exception all the racetrack safety regulations propounded by the Horseracing Integrity & Safety Authority (HISA). The rubber-stamp order accepted without issue all of the proposed rules as well as acceptance of the Authority's responses to the comments submitted by industry participants.

The order recognized that many of the comments by industry stakeholders were useful and constructive to improve the rules. Yet, the FTC refused to disapprove any rule, nor did it direct such constructive changes be incorporated prior to approval. Instead, the FTC took the position that it would welcome future proposed rule modifications that the Authority decides to submit in response to comments received.

This FTC order makes crystal clear that this private entity of self-appointed rule-makers (i.e., The Authority) has unfettered power without governmental oversight to control the horseracing industry.

The illusion of governmental supervisory control was clearly dispelled with the FTC approving all of the Authority's proposals without exception. It also demonstrated that this private entity will make the rules without regard to the constructive comments of industry stakeholders.

The FTC's order affirms the significant concerns expressed in pending litigation that such a delegation of control is unconstitutional and that the input of those closest to the horseracing industry is no longer relevant.”

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