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Senators Press Federal Trade Commission For Answers About HISA’s ‘Chaotic Implementation Process’

Sens. Chuck Grassley (R-Iowa), Joe Manchin (D-W.Va.), Joni Ernst (R-Iowa) and John Kennedy (R-La.) are pressing the Federal Trade Commission (FTC) and the Horseracing Integrity and Safety Authority (the Authority) for answers on its implementation and enforcement of certain guidelines under the Horseracing Integrity and Safety Act (HISA). Specifically, the senators draw attention to the Anti-Doping and Medication Control program, which HISA requires to be implemented by July 1, 2022. However, the Authority has already stated it would not meet that deadline.

“HISA required the Authority to issue the rule for Anti-Doping and Medication Control not later than 120 days before the program effective date of July 1, 2022. This deadline has passed, and it appears the Authority failed to meet the statutory requirements. The FTC requires the Authority to submit any proposed rule at least 90 days before the proposed rule is to be published in the Federal Register for public comment. We are also not aware of any request or approval of a waiver of this requirement,” the lawmakers wrote.

Additionally, the senators raise concerns about new rules regarding horseshoes and riding crop specifications – initially set to take effect on July 1 under the Racetrack Safety Program – that were impossible for industry stakeholders to implement due to supply chain issues.

“This chaotic implementation process and poor communication by the Authority makes it difficult for industry participants to comply with the new rules and regulations. Additionally, continuously changing implementation dates for new rules and regulations, and last minute delays, cause more confusion and difficulty with implementation,” the lawmakers continued.

Grassley, Manchin, Ernst and Kennedy further argue that the Authority's haphazard approach to setting fee structures will leave racetracks “without the certainty and transparency they need to budget for the current and future racing seasons.”

In conclusion, the senators ask the FTC and the Authority to explain why the July 1 deadline to implement the Anti-Doping and Medication Control Program will not be met, answer for their failure to issue a rule prior to the date required by HISA and clarify whether experts and stakeholders were consulted in the initial drafting of these rules.

Full text of the letter is available HERE.

Statement from the Iowa Horsemen's Benevolent and Protective Association:

“Senator Grassley is a well-known and influential figure in the Senate representing Iowans,” said Jon Moss, executive director of the Iowa Horsemen's Benevolent & Protective Association. “The Senator's letter to the Federal Trade Commission and Horseracing Integrity and Safety Authority is just another strong indication of his continued review of federal issues and how they affect his constituents here at home.

“We as the Iowa HBPA are incredibly grateful for his leadership on this issue, and he clearly has his facts in order. To us it appears the Senator won't put up with a disregard for federal law, nor should he, and nor should the horsemen in the state of Iowa. We welcome his continued review and engagement regarding this law.”

Statement from Eric Hamelback, CEO of the National HBPA (NHBPA):

“We join our Iowa affiliate in praising Senator Chuck Grassley and his Senate colleagues for taking a leadership role in demanding answers to many of the same questions we have been asking for months without response. Hardworking, day-to-day horsemen and horsewomen want safe and clean horse racing, and the Authority is failing in its duty to realize this goal. The Authority and HISA staff are populated with members who do not offer a true inclusive representation for the entire industry, and because of that we are seeing what lack of proper input from all participants causes. They are brazenly violating federal law by missing deadlines and staff are admitting in public forums that the FTC gave them permission to do so. We fully support Senator Grassley's efforts to find out why this is happening.”

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CHRB Rulings: Miller Assistant Alvarado Suspended For Program Trainer Violation

The trainer's license of Ruben Alvarado, who until last November was assistant to trainer Peter Miller, has been suspended 14 days by the California Horse Racing Board for violating program trainer rules between Dec. 23, 2021, and March 24, 2022, at the San Luis Rey training center.

Alvarado took over Miller's Southern California stable when Miller announced that he was taking a self-imposed hiatus from training last November, citing personal reasons.

Complaints against Alvarado and Miller were filed May 23, with stewards alleging that Miller continued to engage in “behavior consistent with the duties of a trainer at the San Luis Rey training center with horses in the barn of trainer Ruben Alvarado. This has included entering horses, conducting endoscopy exams, giving instruction to riders, examining horses, assigning jockeys, and creating training charts.”

The complaint further stated that Alvarado did not set up his own stable bank account independent of Miller, which was required by the stewards.

Miller, who was licensed as an owner and stable agent, received a seven-day suspension and $10,000 fine. His suspension ran June 6-12.

Alvarado's suspension is scheduled to run July 1-14.

Miller has started five horses in his own name since late May: three at Churchill Downs and two last weekend at Los Alamitos. He recently announced that he will resume training full-time in Southern California .

Miller Fined For Vulgarity Toward Regulatory Veterinarian
In a separate ruling dated June 24, Miller was fined $5,000 for violating CHRB disorderly conduct rules on Feb. 14 at San Luis Rey. According to the complaint, Miller uttered a vulgarity multiple times while upset that Dr. Barrie Grant would not remove the horse Gates of Heaven from the vet's list following a workout. Grant requested the complaint be filed. Miller has been sanctioned previously for disorderly conduct incidents involving a former employee, racing officials, security personnel, and a regulatory veterinarian.

Financial Complaint Leads To Randal Gindi License Suspension
On June 25, CHRB stewards also suspended the owner's license of Randal Gindi of Monster Racing Stables for failure to appear before the board of stewards on June 24 to answer a financial responsibility complaint. The complaint was filed by Bob Hubbard Horse Transportation, alleging Gindi's stable owed $1,402.35 for transporting the horse The Critical Way on Oct. 29, 2021. Gindi's suspension, pending a hearing before the stewards, is to begin July 2.

Gindi's stable is currently based at Monmouth Park, where The Critical Way recently ran fourth in the Select Stakes. The Critical Way was pre-entered in last year's Grade 1 Breeders' Cup Turf Sprint at Del Mar but did not start.

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HISA Registrations Approaching 40,000 Ahead of July 1 Deadline

Thoroughbred racing participants and administrators across the country are preparing for the official implementation of the Horseracing Integrity and Safety Act, which will take place this Friday, July 1, when the Horseracing Integrity and Safety Authority (HISA)'s Racetrack Safety Program goes into effect.

As required by the federal law, racing participants must register with HISA by end of day on July 1. To date, a total of 38,416 participants, including 18,400 covered persons and 20,016 covered horses, have registered. Racing participants who have not yet registered themselves or their horses can do so at hisaus.org/registration.

In addition, 20 out of the 25 states under HISA's authority have reached or are in the process of reaching agreement or understanding with HISA regarding implementation of the new federal law. For the first time, a national, uniform set of rules will govern every thoroughbred racing participant and racetrack facility.

“We're incredibly grateful for the efforts of racing participants, industry organizations and track leadership across the country in helping us ensure that all relevant racing participants and horses are registered by July 1,” said HISA CEO Lisa Lazarus. “We're also appreciative of the collaboration and thoughtful approach of so many state racing commissions over the last several months. The cooperation of everyone in the industry is critical to HISA's long- and short-term success. Come July 1, all thoroughbred racing participants will be regulated by HISA. To avoid any disruption in their ability to race, we encourage anyone who has not yet registered themselves or the horses in their care to do so as soon as possible.”

Established when the Horseracing Integrity and Safety Act was signed into federal law in 2020, the Horseracing Integrity and Safety Authority (HISA) is responsible for drafting and enforcing uniform safety and integrity rules in thoroughbred racing in the United States. Overseen by the Federal Trade Commission (FTC), HISA was created to implement, for the first time, a national, uniform set of rules applicable to every thoroughbred racing participant and racetrack facility. HISA is comprised of two programs: the Racetrack Safety Program, which goes into effect July 1, 2022, and the Anti-Doping and Medication Control (ADMC) Program, which will go into effect in January 2023.

The Racetrack Safety Program includes operational safety rules and national racetrack accreditation standards that seek to enhance equine welfare and minimize equine and jockey injury. The Program will expand veterinary oversight, impose surface maintenance and testing requirements, enhance jockey safety, regulate riding crop use and implement voided claim rules, among other important measures.

The ADMC Program will create a centralized testing and results management process and apply uniform penalties for integrity violations efficiently and consistently across the U.S. These rules and enforcement mechanisms will be administered by a new independent agency, the Horseracing Integrity and Welfare Unit (HIWU), established by Drug Free Sport International (DFS). HIWU will oversee testing, educate stakeholders on the new system, accredit laboratories, investigate potential integrity violations and prosecute rule breaches.

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NTRA Encouraged By Adoption Of H-2B Relief Language In Appropriations Bill

The National Thoroughbred Racing Association (NTRA) is pleased that the House Appropriations Committee adopted critical H-2B relief language in fiscal year '23 Department of Homeland Security (DHS) Appropriations Bill.

The language would provide cap relief at a reasonable time during peak season, which would greatly help business related to the Thoroughbred industry.H-2B workers fill many backside positions that are vital to the day-to-day operations of racing stables across the country.

“Everywhere I go I hear how labor is nearly impossible to find,” said NTRA President & CEO Tom Rooney. “It is so important for the Thoroughbred industry to get backside positions through the H-2B visa program. I am encouraged by the committee's inclusion of the H-2B relief language and NTRA will continue to engage with lawmakers to find a permanent solution.”

On Friday, June 24, 2022, the House Appropriations Committee adopted an amendment that would extend the current discretionary language that allows for an extension of the cap for FY '23 on H-2B visas. If it becomes law, the Secretary of Homeland Security will be required to issue guidance implementing this section no later than 60 days after enactment and will be immediately effective upon its publication.

House leaders hope to have a full vote on this spending bill in July and if passed it would then move to the Senate for consideration. In addition, following the relief language adoption, unions expressed a commitment to work with lawmakers as well as industry to try and negotiate a permanent cap solution beginning in July.

The H-2B visa guest worker program is a nonimmigrant visa program used by many industries that need temporary non-agricultural help when domestic workers are unavailable. For the horse racing industry, trainers rely heavily on the H-2B program to fill various backside positions.

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