HISA Amendment Included In Omnibus Bill Passed By Congress; Industry Leaders Reaffirm Support

An amendment strengthening the Federal Trade Commission's rule making and oversight role of the Horseracing Integrity and Safety Authority was included in the $1.7-trillion omnibus government spending bill passed by the House of Representatives on a 225 to 201 vote on Friday, clearing the way for President Joseph Biden to sign the legislation into law and avert a government shutdown at midnight Friday.

The Senate passed the measure on Thursday by a 68-29 margin.

The amendment became necessary after the Fifth Circuit Court of Appeals reversed a lower court ruling and found the Horseracing Integrity and Safety Act – the law creating the Authority – unconstitutional on the grounds that it delegated rule-making authority to a non-governmental agency.

The ruling by the Fifth Circuit Court of Appeals effectively delayed implementation of the Authority's Anti-Doping and Medication Control program, that was scheduled to go into effect Jan. 1, 2023. In the wake of the ruling finding the law unconstitutional, the FTC – citing the legal uncertainty – did not approve the regulations submitted by the Authority. It's unclear at this time how quickly those rules may be re-submitted, and, pending approval, put in place. Racetrack Safety Program rules and enforcement are still in place.

The 2020 law said the FTC could accept or reject regulations proposed by the Authority, but the newly approved amendment broadens that power. It states that the government agency may “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.”

Several lawsuits have been filed by horsemen's organizations and state racing commissions against HISA calling into question the law's constitutionality. One of them, filed in Kentucky, is currently awaiting a ruling from the Sixth Circuit Court of Appeals after a lower court found in HISA's favor.

Lisa Lazarus, CEO of the Authority, issued the following statement in the wake of“We are grateful to Congress for their ongoing, bi-partisan efforts to affirm their support for HISA in order to advance safety and integrity in Thoroughbred racing. We at HISA look forward to engaging with all racing participants so that we can work collaboratively towards the smooth and effective implementation of the Racetrack Safety and the Anti-Doping and Medication Control (ADMC) Programs.”

Shortly after the House voted to approve the government spending bill, the National Thoroughbred Racing Association distributed the following press release in support of HISA: 

The National Thoroughbred Racing Association (NTRA) is joined by leaders throughout the Thoroughbred breeding and racing industry in expressing its strong support for Congress's reinforcement of the Horseracing Integrity and Safety Act (HISA) in the omnibus appropriations bill that was passed by the House today and now heads to President Biden's desk to be signed.

“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.”

Signed into law by President Trump in December 2020, HISA has long had bipartisan support in Congress. The law recognized the Horseracing Integrity and Safety Authority, under the supervision and control of the Federal Trade Commission, to develop and implement national, uniform medication control, anti-doping and racetrack safety programs.

The NTRA, based in Lexington, Ky., and Washington, D.C., is a broad-based coalition of more than 100 horse racing interests and thousands of individual stakeholders consisting of horseplayers, racetrack operators representing nearly 80 percent of the U.S. pari-mutuel handle, more than 30,000 owners, breeders and trainers, and other affiliated horse racing associations, charged with increasing the popularity, welfare and integrity of Thoroughbred racing through consensus-based leadership, legislative advocacy, safety and integrity initiatives, fan engagement and corporate partner development.

Other key leaders and stakeholders in the Thoroughbred industry have issued statements of support:

Craig Fravel, Executive Vice-Chairman, 1/ST  

“The process of ensuring the integrity of our sport and the safety of its participants is an ongoing one and we are grateful to legislative leadership in the House and Senate for agreeing to important clarifications to HISA. Uniform rules, effective and fair enforcement, and public confidence go hand-in-hand and we look forward to full implementation of HISA medication and safety rules and the continued improvement of our sport that is sure to follow.”

Drew Fleming, President & CEO, Breeders' Cup Limited 

“We very much appreciate the successful bipartisan Congressional efforts to support HISA. Hopefully, this will provide an opportunity for all industry participants to come together and continue to enhance and grow our sport through consistent, balanced, and effective regulation and enforcement.”

Bill Carstanjen, CEO, Churchill Downs Incorporated 

“Churchill Downs Incorporated is grateful for Senator McConnell's continued commitment to the success of Thoroughbred racing and we appreciate the resulting bipartisan support to pass clarifying language to HISA. CDI believes HISA is a critical vehicle for establishing a comprehensive and consistent regulatory framework to protect the integrity of our sport and the safety and wellbeing of our equine and human athletes. We also believe that HISA's ultimate success will depend on the Authority working collaboratively and in good faith with various industry groups to ensure widely accepted regulatory principles and an effective implementation.”

Josh Rubinstein, President and COO, Del Mar Thoroughbred Club 

“For many years Del Mar and California's Thoroughbred racing stakeholders have supported uniform standards and reforms that ensure the integrity of our competition and enhance the safety and wellbeing of both our human and equine athletes. We appreciate the bipartisan support of this measure and want to thank especially the members of our California delegation for their continued support of HISA and our industry.”

John Velazquez, Hall of Fame Jockey, HISA Racetrack Safety Committee Member 

“As a member of HISA's Racetrack Safety Committee, I want to thank Congress for reaffirming HISA as there is still a lot of work to be done to improve safety for horses and riders. HISA has committed to working closely with the Jockey's Guild on revisions to the Racetrack Safety rules and I am optimistic that we can make great progress working together.”

Shannon Arvin, President & CEO, Keeneland Association 

“Keeneland has always operated according to what is best for our horses, riders and the sport, which is why we've supported the Horseracing Integrity and Safety Act (the Act) from day one. We appreciate Congress reaffirming its support for a cleaner, safer sport via the uniform rules and enforcement mechanisms brought forth by the Horseracing Integrity and Safety Authority.”

Chauncey Morris, Executive Director, Kentucky Thoroughbred Association 

“Kentucky has over 60,000 people tied to horses and racing. Meaningful and responsible reform that stands the scrutiny of Americans who are largely outside of horse racing is the best way to safeguard the Thoroughbred industry in Kentucky. HISA must accomplish its mission.”

Chris Larmey, Chairman, National Horseplayers Championship Players' Committee that represents 5,500 NHC Tour Members 

“We thank Congress for its ongoing support of the Horseracing Integrity and Safety Act (HISA), which we believe will lead to a higher degree of safety and welfare for our equine and human athletes and a more level and uniform playing field to wager on a product we can trust.”

David O'Rourke, President & CEO, New York Racing Association, Inc. (NYRA)

“HISA will achieve the reforms long supported and advanced by NYRA, including a national approach to medication control and the strongest anti-doping authority the sport has ever seen. Horse racing is an engine for economic opportunity that creates and sustains good jobs in every corner of New York State, and the successful implementation of HISA will secure its future in New York and across the country.”

James L. Gagliano, President and COO, The Jockey Club 

“The Jockey Club is extremely appreciative of the efforts Congress is making in support of the Horseracing Integrity and Safety Act. 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.”

Dan Metzger, President, Thoroughbred Owners and Breeders Association

“TOBA is grateful to see Congress reiterate its support for HISA in the omnibus appropriations bill. HISA is very important to Thoroughbred owners and breeders to ensure fairness and uniform standards across the country. We remain hopeful the industry will come together to continue to improve Thoroughbred racing and work in collaboration with HISA for future success.”

Trainers, attributable to the following group: Mark Casse, Christophe Clement, Shug McGaughey, Kenny McPeek, Graham Motion, Todd Pletcher, Eric Reed, Dale Romans, John Sadler, Jonathan Thomas, Nick Zito

“As trainers who work and compete across our country, we applaud Congress for their bipartisan affirmation of HISA and the importance of uniform, national rules. The consistency, fairness and efficiencies of uniform rules and enforcement are desperately needed, and we call on our fellow trainers to come together in support of a safer, fairer sport.”

Veterinarians

Dr. Jeff Berk, Equine Veterinarian and AAEP Past President  

“I'd like to thank the efforts of Congress for their continued support of the Horseracing Integrity and Safety Act. Thoroughbred racing has needed uniform rules and a national safety program to guarantee the sport's sustainability. As a veterinarian, I'm keenly aware that the Thoroughbred – and human athletes – depend on us to keep them safe and HISA shares that mission.”

L.R. Bramlage DVM MS, Equine Surgeon, Former President AAEP and ACVS

“I practice every day caring for the stars of Thoroughbred racing. I want to thank Congress for reaffirming HISA and recognizing its importance in protecting the safety and welfare of Thoroughbred racehorses. For years we have been quarreling among ourselves trying to find a way to assure integrity in horse racing for our benefit and for the benefit of our fans, with little effect. To not finish this real effort for integrity and uniformity would move us back to square one, again! Many of the loudest voices for fairness, who would benefit the most from uniformity, are sounding off against this effort. It is time we all begin singing from the same hymnal and get this done!”

Sara Langsam VMD, TFB Equine, Belmont/Aqueduct Division

“As a Veterinarian who is at the racetrack daily caring for Thoroughbred racehorses, I want to thank Congress for reaffirming its commitment to HISA so that we can continue the important work of strengthening the industry's safety and integrity protocols. We have long needed uniformity and a national regulator to harmonize anti-doping and medication control testing. I have been going to racetracks all my life as a fan and now as a Veterinarian and I believe HISA gives us the best opportunity for horseracing to reach its potential and secure its future.”

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Judge Sets Jan. 18 Hearing On Baffert Motion For Injunction Against Churchill Downs Ban

Federal Judge Rebecca Grady Jennings  has ordered a Jan. 18, 2023, hearing to consider a motion by Bob Baffert for a preliminary injunction to end the ban against the Hall of Fame trainer imposed by Churchill Downs that runs through the 2023 spring-summer meet.

Churchill Downs Inc. CEO Bill Carstanjen banned Baffert for over two years from all of the company's properties in May 2021, citing private property rights. The ban also prevents Baffert-trained horses from earning qualifying points for the Kentucky Oaks and Kentucky Derby.

The action came after Baffert-trained Medina Spirit tested positive for betamethasone after finishing first in the 2021 Kentucky Derby. It was the second betamethasone positive for a Baffert runner in a major Churchill Downs race, following Gamine's failed drug test after a third-place finish as the odds-on favorite in the Kentucky Oaks in 2020. Baffert runners failed three other drug tests outside of Kentucky in 2020, including Charlatan in the G1 Arkansas Derby.

Medina Spirit was subsequently disqualified from his Derby win and Baffert was handed a 90-day suspension by the Kentucky Horse Racing Commission that he served earlier this year. Amr Zedan, the owner of Medina Spirit, has appealed the disqualification. Medina Spirit died following a workout in December 2021.

The complaint, filed in February 2022 in U.S. District Court for the Western District of Kentucky, is against Churchill Downs Inc., its CEO William Carstanjen, and CDI chairman Alex Rankin. A motion for injunctive relief came soon thereafter. A second motion for a preliminary injunction was filed Dec. 15, and on Tuesday the judge in the case ordered the Jan. 18 hearing at 1 p.m. at the Gene Snyder Courthouse in Louisville, Ky. Defendants have until Jan. 3 to respond to the renewed motion for a preliminary injunction.

“Bob was not afforded a simple conversation before Carstanjen announced a penalthy and lengthy suspension,” said Clark Brewster, attorney for Baffert. “It was unprecedented and from his announcement it was clear he had no basic knowledge of the KHRC rules or the facts which led to the report 21 picogram Beta report.”

 

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Government Spending Bill Includes Language Strengthening FTC Role In HISA Rulemaking

In response to a Fifth Circuit Court of Appeals ruling that found the Horseracing Integrity and Safety Act unconstitutional, Congress has included an amendment in a $1.7 trillion government spending bill that gives the Federal Trade Commission a stronger oversight role of the private, non-governmental Authority the 2020 law created.

The omnibus bill, which exited the Senate and House Appropriations Committees early Tuesday morning, is designed to avert a federal government shutdown at midnight Friday.

The HISA clean-up language is intended to satisfy constitutional challenges stating the federal government may not delegate rule-making authority to a private entity. In the original language, the FTC could accept or reject proposed rules from the Authority, but not amend them.

The proposed amendment to Section 1204(e) of the Horseracing Integrity and Safety Act of 2020 (15 U.S.C. 30534(e) states that the Federal Trade Commission, “by rule in accordance with section 553 of title 5, United States Code, may 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.”

Opponents of HISA have stated they will file additional lawsuits challenging the law in the event amendments are added to the 2020 law.

Senate Minority Leader Mitch McConnell (R-Ky) championed the original legislation, which was part of a 2020 government spending bill signed into law by then-President Donald Trump, and pushed for the amendment to be included in the 2022 omnibus bill. A number of other extenders, technical corrections, or proposals unrelated to government spending are in the bill. They include language as diverse as protecting lobster fishing in the North Atlantic,  banning the Chinese-owned TikTok app from government devices, and clarification of the vice president's role in counting electoral votes.

The bill's funding of the Department of Agriculture stipulates that the government will not fund inspection of horse meat facilities, essentially continuing the ban on horse slaughter in the U.S.

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Former Navarro Veterinarian Pleads Guilty To Two Misdemeanors, Gets Ten Months In Prison

Veterinarian Dr. Erica Garcia was sentenced on Dec. 12 to ten months in federal prison after entering a guilty plea to two misdemeanor counts related to the large-scale racehorse doping case that broke in March 2020.

Garcia was ordered to pay a fine of $2,000 and is ordered to surrender to begin her sentence in March 2023. She will serve her time at a facility in Florida. She is also subject to one year supervised release after her sentence is complete.

Garcia entered a guilty plea to two counts of introducing into interstate commerce adulterated and misbranded drugs.

According to documents filed by attorneys for both sides ahead of the sentencing hearing, Garcia worked for Navarro during Florida winters for 11 years until they ceased their professional affiliation in April 2019. She admitted she administered non-FDA approved substances to Navarro's horses at the behest of Navarro and an unnamed veterinarian from up north.

“He had six or seven horses when I met him,” Garcia wrote in her letter to U.S. District Judge Mary Kay Vyskocil. “At first impression, I found him to be an ambitious young man hell bent on trying to prove himself. He used to flirt with me while I was tending to my clients in other barns, but I never took him seriously. Then one day I started working for the vet who worked for Jorge which therefore, by default, made me Jorge's vet too. We got along pretty well. He was very focused and you could tell he really cared. One day he left for a couple of years to try his luck at some of the other tracks.”

Garcia administered red acid, which she purchased from RacehorseMeds, a drug called “monkey” (which she said she thought was a vitamin shot), compounded clenbuterol, and SGF-1000.

Garcia's defense team summarized the results of testing on some of the substances Garcia admitted to giving to horses.

“Based on information and belief, red acid is an anti-inflammatory containing hyaluronic acid,” read the defense's pre-sentencing report.

The report also said a test on the substance called “monkey” contained “trace amounts of cobalt.”

Read our previous reporting on cobalt as a performance-enhancer here and here.

In her letter, Garcia summarized the rise and fall of her former client as she saw it.

“He never cut corners on the care of his animals,” Garcia wrote of Navarro. “He studied other leading trainers and tried to incorporate some of their methods into his own training style.

“Then, after a couple of years, things started to change. I think the pressure got to him. He used to say he was going to fire all his clients and go back to training only 20 horses, then 15 new horses would show up in the following week. Around this time, someone introduced him to the standarbred[sic] trainers. They began telling him what to do and tried to convince him to manage his business the way they did. He stopped listening to me as his vet and I could see things were not going in the right direction. I probably should have left then. Stupidly, I stayed.”

“….Time went on and Jorge was no longer the person I had first met. The pressures of the industry were unyielding. The expectation to be the best and to keep improving, growing and winning became very taxing on him.”

Garcia admitted in her letter to the judge that she used SGF-1000 on “another trainer's horse” but did not name the trainer and also that she continued using red acid after she left Navarro's employment in April 2019.

Attorneys for both sides attribute the professional split between Garcia and Navarro to a decision by Garcia or someone on her team to report a suspected case of strangles from Navarro's barn. According to Garcia, Navarro didn't want the scrutiny this could bring from state animal health officials and did not want to be subjected to a quarantine that would limit training.

There were no strangles outbreaks reported in Florida in April 2019, according to the Equine Disease Communication Center.

Since her arrest, Garcia has been working with small animals, exotic animals, and injured wildlife. She still has her veterinary license in Florida although she is precluded as a condition of bail from working on racehorses and has had her track license revoked.

Prosecutors, who had sought a 24-month prison sentence, concede that their decision to allow her to plead guilty to misdemeanors rather than felony charges means the state veterinary board may use its discretion when it decides whether to revoke her veterinary license.

State licensing boards typically do not consider a licensee's status until a criminal case against them has fully resolved.

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