horseracing integrity and safety act | Horse Racing Free Tips

‘A Monumental Step In The Right Direction’: Tygart Hopes USADA Can Help Reform Horse Racing

There has been a recent spike in discussion following passage of the Horseracing Integrity and Safety Act (HISA) by Congress last week. Some may be skeptical on whether the creation of a national Authority truly will have an impact on the regulation of medication and safety policies in American racing, but Travis Tygart, CEO of the United States Anti-Doping Agency (USADA), believes USADA's involvement could be just what the industry needs, according to columnist Dan Wolken in USA Today.

“I think it should be night and day because the current system is a myriad, a patchwork of different rules and regulations and it's not applied evenly across any of the 38 different racing jurisdictions,” Tygart told Wolken. “Our hope is to absolutely professionalize it and give those in the sport confidence that it works and that there is no choice other than to win the right way, which is clean and ultimately that's going to benefit the sport itself as well as the health of the animal.”

Two scandals within the racing industry this year involving Bob Baffert's four separate medication violations and the FBI probe that led to 27 people being indicted for illegally conspiring to dope racehorses have amplified the need for intervention from the government and the USADA. Wolken wrote. An independent oversight program can eliminate the conflicts of interest within the current state horse racing boards, which are typically occupied by people with financial interests in racing or involvement in some way.

“it created a perfect storm where there's no other solution,” Tygart said. “The status quo is unacceptable and this is a monumental step in the right direction.

“There's a lot of money being made under the status quo and we saw that when we took over the Olympic world as well,” Tygart told Wolken. “So are we going to be able to get people off their little fiefs that are churning money? Let's hope they come along and get on board, but if they are earning that money the wrong way they're going to get sanctioned and that's the way it ought to be.”

Irwin: Independent Overseer Will Ensure Integrity

What's the big deal about the new racing legislation?

When I called for horseracing to find a way to install the United States Anti-Doping Agency as the overseer of drugs in an Op/Ed for The Blood-Horse back in 2004, I did so with some specific goals in mind. My overriding reason, however, was to have an agency that was independent.

Now that USADA will be given the job, nobody knows whether the hopes and dreams of those who worked so tirelessly to make USADA's presence a reality will be fully accomplished. One thing that everybody in the sport can be sure of is that special interests will no longer be able to tilt the playing fields or the halls of justice.

Over the years people have asked me why special interests fought so hard to keep the legislation from being enacted. The answers are many but they all boil down to unethical participants in racing being stopped from running their games and not paying any price when they get caught.

As I explained to my peers who fought side by side to bring the Horseracing Integrity and Safety Act to fruition, the one thing the bill's opponents dread is that when they or members of their team get caught breaking the rules they will be unable to find a way in a boardroom, steward's stand, men's club or corporate office to obtain a favorable outcome.

Anybody paying the least bit of attention to what is going on right now will know exactly what I am writing about. An unbeaten young stallion's reputation is on the line in an ongoing battle that involved a racing board, a steward's office and selective interpretation of rules. Another case is going through the adjudication process involving a positive for a banned substance and a bonus reportedly worth millions of dollars.

We have all seen horsemen and owners break rules yet escape with favorable rulings or slaps on the wrist.

At the same time we have seen trainers cheat with impunity and watched as those charged with the responsibility of going after them sit on their hands or shrug their shoulders. Why, one may wonder, would racetracks, stewards, medical directors and racing boards protect the guilty?

Well, they all have conflicts of interest. Racetracks all think that it is trainers who bring in owners and racetracks need owners to supply their racing cards. Stewards, by and large, are concerned first and foremost with keeping their jobs and they learn early on in their tenure that the best way to accomplish this goal is not to rock the boat. Racing boards, like racetracks, are loath to bring cheating trainers to justice for fear of tarnishing the sport, as though by the cheating trainers' actions they had not done so already.

I really hate to have to write this next part of this Op/Ed because it is so embarrassing to racing, but I humbly submit to you that some owners at the highest level of the sport only participate because they can game the system and get away with it.

And these people, as well as their trainers, live in mortal fear of not being able to find a get-out-of-jail card after they break the rules. They count on this aspect of the sport. They know the tracks will not turn them in. And plenty of others feel the same way.

So what scares the hell out of these miscreants is an agency like USADA headed by a world-renown sports cop being in charge, because they know Travis Tygart is not going to roll over and play dead.

Owners and trainers who play by the rules in the main understand how important and liberating this concept is and can be, but there have been others—especially trainers—who have fought against the legislation. They don't want trainers held up to scrutiny or caught and adjudicated because these innocent horsemen think that all of them will be unfairly painted with the same brush. It is the same philosophy engaged in by racetracks, who worry racing will be put in a bad light by trainers being exposed as cheats.

Nothing could be further from the truth. It is only when a sport takes itself seriously, like Major League Baseball has done from time to time, that it can thrive and soar to new heights of popularity.

As important as it is for fans and gamblers to believe in the integrity of racing, it is just as important for owners and trainers to believe in it as well. In a sport well-managed and adjudicated, pride of ownership can return in North America and trainers can once again go to restaurants or walk in the front door of their house carrying a Daily Racing Form without fear of embarrassment.

So, yeah, passage of the “Integrity” aspect of the new law is a big deal. It is, in fact, such a big deal that it might very well save our sport.

Passage of the bill, it must be said in closing, is only the beginning. In order for USADA to be successful it must rely on assistance from ethical owners and trainers. So instead of mimicking silent officials in racing who sat by and let cheating take place, we will need owners to report on a new hotline any instances they know of regarding cheating so that Travis Tygart and his team can root out evil wherever they find it.

I have every faith that owners will comply, and some faith that a lot of trainers will comply. I do, however, fear that the code of silence among those of the current generation will prevail and make USADA's job harder. Perhaps as in many things today the next generation will save our sorry asses, because in order to keep this sport on the level and make it fair for everybody, help will be required.

Barry Irwin is founder and chief executive officer of Team Valor International.

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What Happens Next? Interstate Horseracing Integrity And Safety Act FAQs

With Monday's late-night passage of the Horseracing Integrity and Safety Act as part of an omnibus government spending bill, there are many questions about when the newly created Horseracing Integrity and Safety Authority will begin to take shape and begin its national oversight of medication policies and safety standards for the sport, how it will be governed, and what it will cost.

To get answers to some of the most frequently asked questions, we went to Marc Summers, vice president and general counsel for The Jockey Club, which helped steer the legislation through the United States House of Representatives and Senate.

When will the Authority be operational?
By law, the latest it can go into effect is July 1, 2022, and it could be much earlier than that. The Federal Trade Commission (FTC) will first have to approve the anti-doping and medication control program and racetrack safety program. The FTC will review programs developed by the Authority, allow for public comment, and once approved it will go into effect.

Once President Trump signs the legislation, what happens next?
The key will be for the previously established nominating committee to continue their work, looking at all suggestions received from the industry and public about who should fill the nine positions on the Authority board of directors. Five of the board members will fill independent seats, with four seats to be filled by industry representatives – from among owners, breeders, trainers, racetracks, veterinarians, state racing commissions and jockeys. No more than one from each equine constituency group is permitted on the board at any time. Industry representatives on the board may not currently serve as an official or officer with an of equine industry representative group or have a financial interest in, or provide goods and services to, covered horses.

The board chairman shall be an independent member.

Two standing committees – an anti-doping and medication control committee and a racetrack safety committee – will also be appointed with four independent members and three industry members. The chair of the anti-doping and medication control committee shall be an independent member and the chair of the safety committee shall be an industry member.

How soon could the board and committee members be in place?
Summers said he is not counsel to the Authority but understands the nominating committee may have a board in place during the first quarter of 2021, with committee memberships to follow.

When and how does the United States Anti-Doping Agency (USADA) come into play?
USADA is identified within the bill as the anti-doping and medication control enforcement entity. What will get them directly involved is execution of an agreement between the Authority and USADA, but the Authority's board will have to be in place before that happens.

When will it be determined exactly what the cost will be to racing participants?
That's going to evolve. There will be an initial budget for the Authority covering 2021. But until the anti-doping and medication control and racetrack safety programs go live, the Authority will not be assessing the states. More will be known early in 2022.

There is a misconception that the Authority's cost will be allocated to individual members on a per-start basis. That is not true. Budgets will be allocated to individual states based upon the total anticipated number of starts in that state for the succeeding year, and it will be up to each state to determine how the money will be raised and whether a per-start fee or some other form of calculation will be used.

Will riding crop rules fall under the safety aspect of the Authority? What other activities would the Authority regulate?
Riding crop rules would fall within this in that it involves in-race and workout safety. There also may be some rules regarding racetrack surfaces, pre-race vet exams and such.

What opportunities are there for horsemen to have input with the Authority
Enshrined in the HISA, when the Authority has proposed rules, they go to the FTC for approval, and there is a requirement for public comment. Furthermore, the HISA allows for horsemen to be on the Authority's board and representatives from horsemen's groups can also serve on the Authority's standing committees.

What will happen to existing state racing commissions?
By the language in the statute, the racing commission rules with regard to anti-doping medication control and racetrack safety will be pre-empted. Commissions do significantly more than that, including licensing, establishing and overseeing rules of racing, overseeing operation of stewards and variety of other activities. This will lighten the load on commissions and allow them to focus on those other areas. Also, the HISA expressly contemplates that USADA and the Authority may work with state racing commissions in implementing the Authority's programs. We can anticipate seeing many states playing a significant role in boots-on-the ground anti-doping activities such as sample collections and investigations.

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Omnibus Legislation Includes Key Tax Provisions, COVID Relief For Thoroughbred Industry

Both the U.S. House of Representatives and U.S. Senate on Monday passed legislation that contains key tax reform and COVID-19 relief provisions beneficial to the horse breeding and racing industry.

A $1.4 trillion omnibus package that includes funding for the federal government's current fiscal year included the Horseracing Integrity and Safety Act (HISA), historic legislation that will establish national standards to promote fairness, increase safety in Thoroughbred racing.

“We thank Senate Majority Leader Mitch McConnell for his pivotal role in the passage of the Horseracing Integrity and Safety Act (HISA) by the U.S. Senate,” said Alex Waldrop, President and Chief Executive Officer of the National Thoroughbred Racing Association (NTRA). “We also applaud Senators Kirsten Gillibrand (D-NY) and Dianne Feinstein (D-CA) and Congressmen Andy Barr (R-KY) and Paul Tonko (D-NY) and other allies in Congress whose support helped make this watershed moment possible. We look forward to President Trump signing the HISA into law and by doing so, commencing the establishment of an independent and well-informed central authority that will ensure the integrity of our sport and the safety of our human and equine athletes nationwide.”

A key provision that extends three-year tax depreciation for all racehorses through 2021 also was part of the omnibus package. Uniform three-year racehorse depreciation was among numerous tax provisions across many industries that were set to expire at the end of 2020. The provision extends the three-year depreciation schedule for all racehorses through 2021 and allows taxpayers to depreciate, on a three-year schedule, racehorses less than 24 months of age when purchased and placed into service. In the past, racehorses of this age were depreciated on a seven-year schedule. The accelerated schedule better reflects the length of a typical racehorse's career and is more equitable for owners. Maintaining the three-year recovery period for racehorse purchases has been a top legislative priority for the NTRA federal legislative team since the provision's initial enactment as part of the 2008 Farm Bill.

A $900 billion COVID-19 relief package included several positive provisions relative to horse breeding and racing. Eligible racetracks and farms would again be allowed to participate in this second round of the Paycheck Protection Program (PPP) as they were in the first round after the NTRA helped secure favorable guidance from the Small Business Administration (SBA). The new provisions include:

Expanded PPP loan terms that include new eligibility for horse and farm owners without employees operating as sole proprietors or via single member LLCs
New PPP eligibility for qualifying 501(c)(6) organizations with less than 300 employees;
Additional eligible expenses that now also include software, human resources, accounting, and personal protective equipment for those who have not yet had PPP loans forgiven;
A second draw PPP loan of up to $2 million that now is available for qualifying businesses with at least a 25% reduction in gross receipts;
Extension of employer tax credits for paid sick and family leave and employee retention into 2021; and
Full deductibility of meals from restaurants during 2021 and 2022.

“The relief package has some helpful provisions for industry participants, especially with regards to the enhanced PPP loan program, and the three-year tax depreciation for yearlings,” said Jen Shah, Tax Director at Lexington, Ky.,-based Dean Dorton. “This new relief plus the current 100% bonus depreciation available on qualifying purchases continue to provide meaningful tax deductions for horse and farm owners.”

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