Bill That Includes New Language on HISA Passes in House

A $1.7-trillion omnibus spending bill that includes language that would give the Federal Trade Commission (FTC) more authority over the Horse Racing Integrity and Safety Authority (HISA) passed in the House of Representatives Friday. Friday's development came one day after the bill passed in the Senate. The bill will next go to President Joe Biden to be signed into law.

The language in the bill relating to HISA is meant to address issues raised by the Fifth Circuit Court of Appeals in November. That court ruled that HISA was unconstitutional because the FTC's powers were limited and that HISA had too big of a role. It is believed that the relevant language in the bill allows the FTC to “abrogate, add to, and modify the rules of the Authority promulgated in accordance with this Act as the Commission finds necessary or appropriate to ensure the fair administration of the Authority, to conform the rules of the Authority to requirements of this Act and applicable rules approved by the Commission, or otherwise in furtherance of the purposes of this Act.”

While Friday's development was a win for HISA, the battle between pro and anti-HISA forces is far from over and it's unclear what will happen next. However, it appears likely that the National HBPA and other groups fighting HISA will not back down and will continue to challenge the many issues that have been raised in the courts. It's also unclear what steps will now be taken by HISA and the FTC in order to get HISA back on track. Possibilities include asking the Fifth Circuit to reconsider its ruling in light of the fact that the FTC will have more power going forward. It's also possible that the FTC can essentially start the entire process over and ask HISA to resubmit its proposed rules.

Should the Fifth Circuit reverse itself and give HISA the green light to go forward, there are other lawsuits out there that could once again change the direction of the dispute. One is a case in which plaintiffs have made familiar arguments relating to the constitutionality of HISA that has been argued in the Sixth Circuit, which has yet to issue a ruling. Another case is pending in the U.S. District Court of Texas-Northern District, Amarillo Division, which raises several constitutional problems with the law, other than FTC rule-making input. The bottom line is that, from a legal standpoint, nothing yet is certain when it comes to HISA.

After the spending bill passed the house, the NTRA issued a press release celebrating the victory that included comments from several industry leaders.

“On behalf of NTRA members, which include broad representation of every aspect of the Thoroughbred industry, we welcome the successful bipartisan efforts of Congress to reaffirm Congressional support for HISA's mission,” said NTRA President and CEO Tom Rooney. “HISA is critical to our sport and we look forward to working collaboratively with every industry constituency to continue to support the essential role of HISA going forward. We especially want to thank Congressional leadership in Leader McConnell, Leader Schumer, and Speaker Pelosi, committee leadership in Chairman Pallone, Chairwoman Cantwell, and Rep. Schakowsky, and our longtime champions Reps. Tonko and Barr and Senators Feinstein and Gillibrand. Finally, I thank the many people from far and wide across the industry who advocated for this law with their elected officials.”

“The Jockey Club is extremely appreciative of the efforts Congress is making in support of the Horseracing Integrity and Safety Act,” said The Jockey Club President and COO Jim Gagliano. “The Jockey Club has supported nationwide, uniform rules and regulations for Thoroughbred racing for decades through numerous initiatives. HISA is Thoroughbred racing's best solution to greatly improve regulation of the sport and to help ensure our sport is clean and is safe for our athletes–both equine and human.”

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Arizona Senate Committees Advance Horse Racing Bill

The Arizona Senate moved a gaming bill through two committees–one unanimously–and it now awaits an assignment date for a vote by the full Senate.

Senate Bill 1794 passed the Appropriations and Rules committees, with wide support. The bill authorizes historic horse racing, providing up to $140 million in new state tax revenues, as well as support for the state's horse racing industry.

“This long-overdue modernization effort will help the many local businesses that support the horse racing industry and also provide much-needed revenue to the state,” said Save Arizona Horse Racing spokeswoman Lorna Romera. “Arizona has an ideal climate for hosting year-round horse races and attracting fans, horses, breeders, trainers and others looking to escape the hostile environment in California. We urge members of the legislature to seize on this opportunity to make Arizona the premier destination in the country for horse racing.”

Horse racing has been a key economic driver in Arizona for decades. But since 2004, Arizona has seen parimutuel handles drop by $55 million a year, purses drop by $5 million a year and live racing attendance has dropped 45%.

Senate Bill 1794 would modernize Arizona wagering laws, while limiting the number of HHR terminals to just 15% of tribal gaming positions–minimizing any impact on those revenues. HHR also relies on parimutuel wagering, which was legal in Arizona before tribal gaming compacts began, so their authorization would not violate those state agreements.

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Sen. McConnell Introduces Horseracing Integrity and Safety Act

U.S. Senate Majority Leader Mitch McConnell (R-KY) and U.S. Senators Kirsten Gillibrand (D-NY), Martha McSally (R-AZ), and Dianne Feinstein (D-CA) introduced the Horseracing Integrity and Safety Act today to help set national standards to promote fairness, increase safety, and help preserve Thoroughbred racing. At a press conference last week in Lexington, the Horse Capital of the World, Senator McConnell joined U.S. Congressman Andy Barr (KY-06) and leading Kentucky stakeholders, including Keeneland, Churchill Downs Incorporated, Breeders' Cup Limited, and the Jockey Club in announcing the introduction of the bill.

They also announced the launch of the Horseracing Integrity and Safety Authority, an independent, non-governmental regulatory body responsible for improving current regulations and bringing a new level of transparency. The Board will set national standards for track safety, anti-doping and medication rules, and lab protocols. Senators McConnell and Gillibrand's bipartisan bill will provide federal recognition and enforcement power for the Board to enable them to develop uniform, baseline standards for Thoroughbred racing.

“It's been a privilege throughout my Senate career to deliver for Kentucky's signature horseracing industry and the workers who support it. The Horseracing Integrity and Safety Act we introduce today will help protect this sport for the future with uniform, national standards. Baseball, football, and other professional sports have a central regulatory authority, and Thoroughbred racing should too,” said Senator McConnell. “I am proud to join Senator Gillibrand, my colleague from another Triple Crown state, in introducing our bipartisan legislation, along with Senator McSally and Senator Feinstein. Together, we can make Thoroughbred racing as fair and as safe as possible. We owe nothing less to the jockeys, trainers, breeders, equine athletes, and fans.”

“Having grown up near the races at Saratoga Raceway, I know how important it is to protect horses at Saratoga and across the country. Congress must put an end to the harsh treatment of racehorses and solidify health and safety standards for both racehorses and racetracks,” said Senator Gillibrand. “I'm proud to work with Majority Leader McConnell on the bipartisan Horseracing Integrity and Safety Act. This legislation will do the important work of creating an independent regulatory process tasked with implementing anti-doping and safety programs to help ensure health and safety in America's historic horseracing industry.”

“The misuse of potentially dangerous substances in racehorses to boost performance harms horses and has led to numerous injuries and deaths,” said Senator McSally. “I have worked for years to protect racehorses against this abuse and uphold the integrity of the sport. I'm pleased to join Majority Leader McConnell and other bipartisan Senators to do just that by creating uniform racetrack safety standards that will better enforce anti-doping measures.”

“I'm pleased to join Leader McConnell in introducing a bill to finally establish uniform, nationwide standards to protect racehorses, jockeys and the integrity of the sport,” said Senator Feinstein. “Given the troubling number of racehorse deaths in recent years, this legislation is a step in the right direction, and I will continue working to ensure that increased safety standards, like those adopted in California, are applied nationally.”

U.S. Congressmen Andy Barr (KY-06) and Paul Tonko (NY-20) will sponsor identical legislation in the U.S. House of Representatives.

Senator McConnell delivered the following remarks today on the Senate floor regarding the introduction of the Horseracing Integrity and Safety Act:

“On Saturday, the world of sports once again revolved around my hometown of Louisville for the 146th Kentucky Derby.

“Like so many other events, the coronavirus made this year's Derby look a little different.

“The race had already been postponed for only the second time in history. And none of the 150,000 spectators who normally fill Churchill Downs were there to sing My Old Kentucky Home.

“But the Most Exciting Two Minutes in Sports refused to be defeated. The Derby remains the longest continuously-held American sporting event. And this year's Labor Day Derby proved worth the wait.

“The winning Thoroughbred, Authentic, outlasted a ferocious challenge from the favorite. I'd like to extend the Senate's congratulations to the entire Hall of Fame team.

“This year's Derby showed our great traditions can adapt to overcome any challenge. But our sport must be protected.

“I've been proud to stand up for Kentucky horseracing throughout my career.

“I introduced a check-off bill to promote the sport domestically. I assembled a coalition to open new markets in Japan and Hong Kong. I worked to make sure Internet regulation didn't unduly restrict the racing industry. I've secured tax provisions to promote equine equity and grow investment in Kentucky.

“It's been my privilege to deliver for this sport and Kentuckians behind it. Today, I'm introducing new legislation to keep it up.

“Because, unfortunately, the coronavirus isn't Thoroughbred racing's only challenge. In recent years, tragedies on the track, medication scandals, and an inconsistent patchwork of regulations have cast clouds over the future.

“A national publication's editorial board even called for this sport to be abolished altogether.

“We needed action to protect the sport we love, defend our history, and the 24,000 Kentuckians who work in the Thoroughbred racing industry.

“So, in Lexington, Kentucky—the Horse Capital of the World—I announced with my friend Congressman Andy Barr that we'd found a way forward.

“Today, I will introduce the Horseracing Integrity and Safety Act to recognize a uniform, national standard for Thoroughbred racing.

“Baseball, football, and other professional sports have a central regulatory authority. Thoroughbred racing should too.

“Some of the biggest names in the sport — Churchill Downs, Keeneland, the Breeders' Cup, and the Jockey Club, just to name a few — are supporting our plan to provide federal recognition and enforcement power to an independent Horseracing Integrity and Safety Authority.

“The Board will be made up of both industry-selected and independent members. It will set national standards for track safety, anti-doping and medication practices, and lab protocols. This will make Thoroughbred racing as fair and as safe as possible.

“I'm proud to partner with Senator Kirsten Gillibrand on this bipartisan legislation. New York is home to another leg of the Triple Crown.

“Their junior Senator has previously introduced similar legislation to protect our sport. I'm also glad to have the senior Senator for California and the junior Senator for Arizona as original co-sponsors on this bipartisan bill.

“Today, Congressmen Barr and Paul Tonko will present this legislation in the House.

“I'm grateful for Congressman Barr's years of leadership on this issue, and I'm glad we are making bipartisan, bicameral progress with our bill.

“This way, when we can all return to the grandstands to watch Thoroughbreds round the final turn toward a thundering finish, we'll be taking pride in a fair and safe race.”

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