Texas Judge Upholds Constitutionality Of Horseracing Integrity And Safety Authority Act

A federal judge in Lubbock, Texas, has ruled for the second time the federal legislation that established the Horseracing Integrity and Safety Authority does not violate the U.S. Constitution.

U.S. District Court Judge James Wesley Hendrix, in a memorandum opinion and order issued Thursday, said the National Horsemen's Benevolent and Protective Association and other plaintiffs in a 2021 lawsuit failed to show that HISA – passed by Congress in December 2020 and amended in December 2022 after the Fifth Circuit Court of Appeals ruled the original legislation unconstitutional – “continues to violate the Constitution.”

The key to the Hendrix ruling was the December 2022 amendment giving the Federal Trade Commission greater authority in its oversight of HISA. The Fifth Circuit opinion overturning Hendrix's original ruling found that the FTC played a “subordinate” role to HISA and remanded the case back to Hendrix and the District Court for the Northern District of Texas, Lubbock Division.

Between that November 2022 ruling and a one-day bench trial on April 26, Congress responded to the Fifth Circuit opinion by inserting language into an omnibus spending bill that allowed the FTC to “abrogate, add to, and modify” the rules of the Authority.

“In light of Congress' amendment to HISA and the undisputed evidence following a bench trial, each of (plaintiffs') arguments falls short,” Hendrix wrote.

The National HBPA and numerous affiliates were joined in the suit by racetrack owners in Texas, the Texas Horsemen's Partnership, the state of Texas and the Texas Racing Commission, bringing additional constitutional arguments to the complaint.

“Now that Congress expressly authorizes the FTC to modify the Authority's rules,” Hendrix wrote, “the plaintiffs retreat and admit their true view: that there is nothing Congress could do to bring the HISA-Authority arrangement within constitutional bounds.”

Hendrix struck down all of the additional arguments from those plaintiffs. His order cited what he called a “persuasive opinion” by the Sixth Circuit Court of Appeals, which found HISA constitutional after the insertion of the December 2022 amendment.

“We appreciate the Federal District Court's re-affirmation of HISA's constitutionality,” a statement from HISA said following the order. “The urgent need for nationwide, uniform rules to enhance the safety and integrity of Thoroughbred racing has never been clearer. We look forward to the resumption of HISA's Anti-Doping and Medication Control program on May 22, as ordered by the Federal Trade Commission.”

HISA's Racetrack Safety program went into effect July 1, 2022, but the Anti-Doping and Medication Control program has been delayed several times, by the FTC and then by a different federal judge who ruled the FTC failed to follow its own rules in approving medication regulations. The latest delay, from a May 1 start to May 22, was ordered by the FTC to help horsemen competing in the first two legs of the Triple Crown to avoid confusion about the new medication regulations.

Eric Hamelback, the National HBPA president, issued the following statement: “We've been down this road before. After a loss in the District Court, we secured a win in the Fifth Circuit Court of Appeals. We will win there again. We will fight to protect horsemen and their constitutional rights all the way to the Supreme Court if needed.”

U.S. District Court Memorandum Opinion and Order

 

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