McConnell, Barr, Tonko File Brief Asking Court To Dismiss HBPA Lawsuit Against Horseracing Integrity And Safety Act

Attorneys representing three Congressional proponents of the Horseracing Integrity and Safety Act (HISA) have filed an amici curiae brief in support of a motion by defendants to dismiss a federal lawsuit by the National Horsemen's Benevolent and Protective Association and several affiliates alleging that the federal law establishing national oversight on medication and safety policies for horse racing is unconstitutional.

Attorneys Eric Grant of Texas and Paul E. Salamanca of Kentucky submitted the “friend of the court” brief on behalf of Kentucky Sen. Mitch McConnell, who pushed for the passage of HISA as part of omnibus funding bill in December while serving as Senate majority leader; Kentucky Rep. Andy Barr; and New York Rep. Paul Tonko. Barr and Tonko were the primary sponsors of HISA in the House of Representatives. The bill was signed into law by former President Donald Trump.

The brief pushes back against a partial motion to dismiss from HBPA attorneys filed April 30 seeking the court to declare HISA unconstitutional and order an injunction preventing the Horseracing Integrity and Safety Authority, the agency created by the law, from operating as a national oversight body.

The three points of contention countering the HBPA position is that 1) HISA is vital legislation; 2) HISA is the result of extensive legislative deliberation; and 3) HISA is structurally constitutional.

The brief argues that the racing industry recognized that an “acute safety crisis was creating an existential crisis of public confidence” and that HISA was Congress' response to that crisis.

“HISA's mandate to create national, uniform equine health and safety rules is vital to the stability and growth of horseracing,” the brief reads. “Like any regulatory regime, not everyone agrees with HISA's objectives or the means by which the statute achieves those objectives. But the question for this court is only whether Congress had an adequate and legitimate basis for enacting HiSA.”

On the second point, the brief explains the history of previous efforts to pass legislation similar to HISA, with numerous Congressional hearing taking place over the last decade, including one in 2018 and another in 2020. Among the 14 witnesses who testified in the latter two hearings, the brief contends, were four opponents of the legislation, including the CEO of the National HBPA.

The HBPA alleged in its lawsuit that HISA passed the House of Representatives on a voice vote with no debate and that it was never discussed in committee or on the floor of the Senate.

The final point of the brief states that HISA is structurally constituted and modeled on the Maloney Act, which authorized the Financial Industry Regulatory Authority (FINRA) to regulate federal securities markets. FINRA is under the auspices of the Securities and Exchange Commission, which can approve, reject or modify its policies.

Similarly, HISA will operate under the auspices of the Federal Trade Commission, which can approve, reject or modify policies. As a private entity, HISA would “propose, not promulgate” rules to the FTC, according to the brief.

“For the foregoing reason,” the brief states, “this court should grand defendants' motion to dismiss (the lawsuit).”

The McConnell-Barr-Tonko brief was not the only one submitted to the court. The North American Association of Racetrack Veterinarians (NAARV) filed a brief contending that the establishment of the Authority would deny due process to its members.

The suit was filed in U.S. District Court for the Northern District of Texas, Lubbock Division.

The post McConnell, Barr, Tonko File Brief Asking Court To Dismiss HBPA Lawsuit Against Horseracing Integrity And Safety Act appeared first on Horse Racing News | Paulick Report.

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ARCI Working On ‘Smooth Transition’ to HISA

Association of Racing Commissioners International Chair Robert Lopez said today that the U.S. members of ARCI are focused on a smooth and expeditious implementation of the newly enacted Horseracing Integrity and Safety Act.

“We view this as an opportunity to achieve improvements we support and believe necessary,” Lopez said.

“Uniform rules, uniform testing, expanded jurisdiction over horses, and the creation of a multi-jurisdictional investigative entity are all tremendous improvements that will result from this law,” added Ed Martin, ARCI's President.

ARCI had, in the past, advocated a different path to address these needs, specifically the creation of an interstate compact as an alternative to involving the federal government. But, ARCI says, “only a few states picked up that mantle, leaving interested lawmakers in Washington no other choice but to pass the new federal law.”

“The ARCI and U.S. State regulators are eager and ready to work in partnership with the new authority, the U.S. Anti-Doping Agency, and the Federal Trade Commission to ensure a smooth transition and effective program,” Martin said.

“RCI Members in Canada have long demonstrated how a federal agency can partner with Provincial Racing Commissions with each complimenting the other. We envision that happening in the US,” Lopez said.

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Motion To Dismiss: Feds Say HBPA ‘Jumped The Gun’ With HISA Challenge

Federal attorneys have filed a motion to dismiss the lawsuit filed by the National Horsemen's Benevolent and Protective Association in an attempt to put the brakes on the Horseracing Integrity and Safety Act (HISA), reports the Thoroughbred Daily News, arguing that the HBPA's “complaint questions the validity of a law that currently subjects them to no obligation or penalty.”

The NHBPA and 12 of its state chapters filed suit in March in the U.S. District Court for the Northern District of Texas, seeking to have HISA and a number of its elements declared unconstitutional. The crux of the suit is that plaintiffs believe HISA delegates legislative authority to a private organization and private individuals in violation of the U.S. Constitution

In the Apr. 30 motion to dismiss, federal attorneys argue: “Plaintiffs jumped the gun bringing this constitutional challenge.”

The filing continued: “Neither the Federal Trade Commission (FTC) nor the [HISA] Authority have even proposed rules that they could endeavor to enact. There has been no proposal for rules regarding permissible and impermissible drugs; no proposal for rules regarding racetrack safety; and no proposals for rules regarding enforcement procedures or penalties…There has not even been a rule crafted to govern how the Authority is to 'propose' any rules to the FTC–which is all fitting, given that HISA is only four months old.”

Read more at the Thoroughbred Daily News.

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Oklahoma Attorney General Files Lawsuit Challenging HISA

A federal lawsuit spearheaded by the state of Oklahoma to try and get the Horseracing Integrity and Safety Act (HISA) voided for alleged constitutional violations was filed Monday, meaning there are now two active legal challenges in the United States court system attempting to derail the regulatory powers of the HISA “Authority” prior to that regulatory body's planned 2022 phase-in.

According to a press release issued by the state attorney general's office in Oklahoma, the suit is challenging that “HISA gives a private corporation broad regulatory authority over Oklahoma's horse racing industry, and does so with no funding mechanism, forcing the financial burden onto states. If a state refuses to pay, the state's legislature and executive agencies would be punitively banned from collecting taxes or fees to enforce their own state regulations.”

The complaint demanding declaratory judgment and injunctive relief was filed Apr. 26 in United States District Court (Eastern Division of Kentucky) even though most of the plaintiffs are based in Oklahoma or West Virginia. The lawsuit's timing coincides with the start of the GI Kentucky Derby week festivities in that state.

Oklahoma and its racing commission are joined as plaintiffs by West Virginia and its racing commission. Three Oklahoma tracks–Remington Park, Will Rogers Downs, and Fair Meadows are plaintiffs, as are the Oklahoma Quarter Horse Association, the U.S. Trotting Association, and Hanover Shoe Farms, which is a Pennsylvania Standardbred breeding entity.

The defendants are the United States of America, the HISA Authority, and six individuals acting in their official capacities for the Federal Trade Commission (FTC).

“HISA grants the Authority broad regulatory power, yet the Authority is unaccountable to any political actor,” the complaint states. “The Authority has the exclusive power to craft regulations relating to doping, medication control, and racetrack safety in horse racing.

“HISA relegates the FTC to a ministerial role in which it is required to approve and issue certain of the Authority's regulations so long as they are consistent with HISA and 'applicable rules approved by the Commission.' And no federal official can remove the members of the Authority's Board of Directors. HISA thus delegates to a private body the full coercive power of the federal government while simultaneously making it completely unaccountable to the people.

“After creating this vast new federal regulatory structure and delegating it to a private corporation, Congress disclaimed any responsibility for funding the Authority itself. Instead, it forced the funding responsibility onto the states, imposing on them the choice of either funding the Authority with state funds or, if a state refuses, collecting fees directly from racing industry participants in that state while punishing the state by banning it from collecting similar taxes or fees itself.”

The complaint summarizes: “Plaintiffs…pray that this Court: 1) declare that HISA violates the U.S. Constitution on its face and is therefore void; 2) enjoin the defendants from taking any action pursuant to HISA; and (3) award nominal damages.”

Some of the FTC defendants in this new lawsuit overlap with those named in a March lawsuit over alleged non-constitutionality filed by the National Horsemen's Benevolent and Protective Association and some of that organization's individual state members.

Oklahoma Attorney General Mike Hunter said via press release that, “If allowed to go into effect, this act will harm states like Oklahoma that have a robust equestrian industry.

“Additionally, the HISA disregards foundational law within the Constitution, including the Tenth Amendment. Congress cannot force a state legislature to either appropriate dollars for a private corporation, like [HISA], or be banned from passing legislation imposing certain taxes or fees. That puts Congress in control of state branches of government, which violates the law.

“Oklahoma already has government oversight in place through the Oklahoma Horse Racing Commission, which does what the federal government seeks to take over and give to a private corporation completely unaccountable to Oklahoma voters,” Hunter said.

The defendants could not be reached for comment prior to deadline for this late-breaking story.

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