Fourteen HBPA Affiliates, Four Tracks Seek To Join HISA Lawsuit

by Paulick Report Staff

 

An alliance of 14 affiliates of the Horsemen’s Benevolent and Protective Association and four racetracks are seeking protection from the alleged harms of the Horseracing Integrity and Safety Act Authority (HISA). They are asking a federal judge to allow them to participate in an existing lawsuit that claims HISA and the Federal Trade Commission (FTC) violated the Fourth and Seventh Amendments to the U.S. Constitution as well as the process by which federal agencies develop and issue regulations, T. D. Thornton of Thoroughbred Daily News reports.

The HBPA affiliates and the tracks on Friday filed a “motion to intervene” in United States District Court (Western District of Louisiana). If accepted by the judge, it would grant the petitioners status in the case alongside the lead plaintiffs from the states of Louisiana and West Virginia.

The HBPA affiliates seeking to join the lawsuit are Arizona, Arkansas, Illinois, Iowa, Indiana, Kentucky, Minnesota, Nebraska, Ohio, Oklahoma, Pennsylvania, Washington, Charles Town, and Tampa Bay Downs. The Colorado Horse Racing Association, the state’s statutorily recognized horsemen’s group, also wants to be an intervenor.

 

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Court Of Appeals Issues Temporary Stay, Lifting Injunction Against HISA In Louisiana, West Virginia

by Paulick Report Staff

 

The United States Court of Appeals has issued a temporary stay nullifying a July 26 injunction preventing the Horseracing Integrity and Safety Authority from enforcing its racetrack safety regulations in the states of Louisiana and West Virginia.

For now at least, the stay also makes moot the question of whether the injunction is limited to Louisiana and West Virginia or also applies to Jockeys’ Guild members riding Thoroughbred races in other states. The July 26 order by Terry Doughty, U.S. District Court Judge for the Western District of Louisiana, Lafayette Division, stated that the “geographic scope of the injunction shall be limited to the states of Louisiana and West Virginia,” but also included the phrase “and as to all plaintiffs in this proceeding.”

Jockeys’ Guild Tries To Ban HISA Enforcement Nationwide

The Jockeys’ Guild has delivered on its promise to take “immediate action” against the Horseracing Integrity and Safety Authority if the newly created national regulatory agency continued to enforce riding crop rules following a federal judge’s order for an injunction blocking HISA from operating in Louisiana and West Virginia.

The injunction, ordered July 26 by U.S. District Court Judge Terry A. Doughty in the Western District of Louisiana, Lafayette Division, limited the HISA ban to the states of Louisiana and West Virginia, but added the phrase  “and as to all plaintiffs in this proceeding.”

Jockeys’ Guild, Inc., interpreted Doughty’s ruling to mean that all members of the Jockeys’ Guild are exempt wherever they are riding. HISA interpreted the language as applying only to the organization as a plaintiff and not its individual members. One Guild member, Gerard Melancon, was listed as a plaintiff.

 

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HISA Faces New Legal Challenge in Texas

Lawsuit says the authority’s enforcement systems are unconstitutional.

 

A lawsuit filed on July 29 in U.S. District Court for the Northern District of Texas challenges the authority of the Horseracing Integrity & Safety Authority.

The suit was brought by Lone Star Park owner Global Gaming, the owner of a Texas greyhound track seeking approvals to run horse races, and two entities trying to develop racetracks for horses in Texas. The suit and a motion for preliminary injunction motion argue that members of the HISA board of directors should have been appointed by the President on the advice and consent of the Senate, and that the Authority is unconstitutionally structured because the President cannot superintend the authority’s execution of laws.

 

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HISA, FTC Seek Stay Of Federal Judge’s Injunction Blocking HISA In Louisiana, West Virginia

The Horseracing Integrity and Safety Authority and the Federal Trade Commission have each filed emergency motions seeking stays of a federal judge’s injunction effectively blocking the Authority from enforcing its regulations in the states of Louisiana and West Virginia.

The motions were filed in the U.S. Court of Appeals for the Fifth Circuit in New Orleans.

The injunction, ordered July 26 by Judge Terry A. Doughty in U.S. District Court for the Western District of Louisiana, Lafayette Division, was in conjunction with a lawsuit filed against the FTC, HISA and its board members and CEO by the states of Louisiana and West Virginia, their respective racing commissions, Jockeys’ Guild, Inc., Louisiana Horsemen’s Benevolent and Protective Association, Louisiana Thoroughbred Breeders Association and five individuals.

 

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NTRA Debunks Some Commonly Held Myths About HISA

By Thomas J. Rooney, President & CEO of the National Thoroughbred Racing Association

Change is never easy, especially change being brought about by the federal government imposing national uniform reforms in an industry long regulated at the state level. I served in the House of Representatives for 10 years, representing 750,000 people from South Florida. I heard day in and day out from my constituents on how we in the government could do things better. This feedback drove the work I did in Congress. Since I started at NTRA, I’ve been meeting with my new thoroughbred racing constituency to hear about the major issues they face and how the NTRA can help. One of the most common concerns revolves around a bipartisan bill signed into law by President Trump in 2020 known as the Horseracing Integrity and Safety Act (HISA).

The fact of the matter is, Thoroughbred racing has needed change for quite some time. We all know that. The path we were going down was not sustainable, and after some challenging years we could not as an industry keep doing business as usual. Accordingly, since the passage and implementation of HISA, I’m optimistic that together we can work to preserve horse racing so that future generations can also enjoy it. The best way to do that is by creating fairness and safety across the nation for the people and horses that make up this sport we love.

HISA officials are doing all they can to educate and communicate with industry stakeholders covered by the law. I think it’s important to separate facts from myths, so misinformation doesn’t get in the way of the Authority’s work. So let me try to set the record straight.

 

Myth: HISA has very broad powers of search and seizure under the law, which violates the Fourth Amendment.

Fact: HISA regulations are very similar to those long used by state horse racing authorities and courts usually affirm those powers.

State horse racing authorities have long exercised investigatory and enforcement powers over licensed entities that are similar to those provided in HISA. More broadly, courts have dismissed search-and-seizure objections critics have raised because participants in closely regulated industries have diminished expectations of privacy. While individuals have a Constitutional right to privacy, there is no Constitutional right to own, race, and train horses. Licensed individuals are only able to participate under the terms of their license and if rules are violated, that license can be revoked. However, HISA has made it clear their regulatory authority extends only to matters relating to racing. So any argument claiming HISA extends beyond matters relating to racing is wrong.

 

Myth: Many states don’t currently have a voided claim rule, and now HISA is regulating all claims to the detriment of owners and trainers.

Fact: HISA provides a long needed, nationwide voided claim rule which will standardize the process for all claims, eliminate confusion and protect owners and trainers.

For years, voided claim programs have been confusing and challenging, even for regulators. In many states, voided claim rules don’t exist at all. HISA aims to standardize this process. It will require a claim be voided in five specific circumstances (death, euthanasia, bleeding, being vanned off the track or testing positive for prohibited substances) making the rules clearer and leveling the playing field. Primarily this rule is intended to protect the welfare and safety of horses. Additionally, this rule is intended to protect people who sell horses through the claiming business but also ensure those purchasing horses are getting a fair purchase.

 

Myth: HISA’s Committees are not representative of the Industry.

Fact: The Advisory Committees are made up of veterinarians, chemists, a jockey, former track owners and operators, breeders, former heads of equine sales companies, and a wide array of highly regarded independent directors with expertise both within and outside of horse racing.

HISA has worked with stakeholders from every facet of the industry to make the Advisory Committees as representative and inclusive as possible. HISA has also sought and received public comment on every proposed rule and regulation, so that any parties not directly represented on the Committee could share their input. While it is impossible for everyone to have a seat at the table, the Authority has made every effort to have representation and input be as wide-ranging as possible.

 

Myth: HISA is going to cost too much and small tracks and small owners will no longer be able to participate in the industry.

Fact: While not all state racetracks and regulators have finalized funding mechanisms for HISA fees, the best way to drive down the cost per covered individual is by every segment of the industry participating.

The concern over cost is a very valid one that I don’t want to minimize. The cost assessment model is based on 50% starts and 50% purses, which is intended to help the smaller tracks. HISA will also be looking for supplemental funding models as they move forward. The best way to drive down cost is for all industry participants to pay their share, which will bring down the cost for each covered individual. In the end, if it leads to a safer sport with a higher degree of transparency and integrity, then it will be money well spent. That, after all, is what we all want and what people expect.

 

 

When I first took this job, I met with a well-known trainer and asked him what he wants for racing. He said one word: fairness. With minimum standards of fairness across the country, Thoroughbred racing and betting will be more competitive and more fun. We must continue to work together as an industry to improve our sport, so the dream of future generations enjoying horse racing can become a reality.

Attorney General Landry Leads Lawsuit Against Federal Takeover Of Horse Racing

Thursday, June 30, 2022

 

Thursday, June 30, 2022

Attorney General Landry Leads Lawsuit Against Federal Takeover Of Horse Racing

BATON ROUGE, LA – Today the State of Louisiana, the State of West Virginia, the Louisiana Racing Commission, the Louisiana Horseman’s Benevolent and Protective Association, the Jockeys’ Guild, owners, trainers, and jockeys filed suit in the Western District of Louisiana asking the Court to enjoin the implementation of the Horseracing Integrity and Safety Authority’s regulations. HISA – the Horseracing Integrity and Safety Act, was passed December 22, 2020, in the dark of night and tucked into the COVID relief package is an attempt to federalize horse racing, an industry the State of Louisiana has regulated for two centuries.

“HISA has created a regulatory scheme that is, at best, half-baked and harmful to everyone in the industry it purports to exist to protect and at worst unconstitutional,” said Attorney General Jeff Landry. “We all agree integrity and safety in horseracing is of paramount importance. And while no industry is without problems, Louisiana and West Virginia, among other states, have always strictly and effectively regulated it. I firmly believe the people of Louisiana should be in control of this activity, not political and corporate elites in some faraway place, all because of a problem that surfaced in California. Having a London lawyer, Jonathan Young, as the head of HISA’s ADMC Enforcement Agency and a Bavarian Investigator, Gunter Younger, regulating Louisiana horseman over five thousand miles away is unacceptable.”

The HISA law purports to effectively substitute state regulatory commissions with a private corporation, setup 90 days prior to the passage of this Act, in charge of horseracing. This entity has only nominal oversight by the Federal Trade Commission. This newly-created private corporation then began to issue regulations, on which the FTC permitted, allowing very little time for public comment, leaving those that actually labor under them with little input or voice. In short, the entire way this law and the regulations associated with it came about shows a reckless disregard for the industry participants and a correspondingly reckless disregard for the impact to our states. Not just for Louisiana, but for all states that engage in horseracing. The regulations are unclear, inconsistent, and violate due process. It is apparent that the HISA is shifting its own lack of preparedness to the industry and the states.

Congress recklessly set up this massive regulatory scheme that is onerous and unfair to everyone. Then, adding insult to injury, it is taxing the people who work the hardest and receive the least to pay for it while showing no interest in the safety of the sport’s most at-risk participant – the thoroughbred jockey. The Jockey Guild, which represents an entire industry of dedicated men and women at the very heart of this industry and for whom rider safety is paramount, has expressed its concerns about the reckless implementation of this law, but its comments were ignored.

This suit clearly shows that HISA is not prepared to assume control or supervision over racing. For example, HISA proposed a registration rule that also requires covered persons to be registered by July 1 and accredited by HISA. However, “covered persons” and the definition of “accredited” are unclear to just about everyone. Making matters even worse, the FTC posted its apparent approval of yet another set of rules at 8 p.m. last night, June 30, injecting even more confusion.

HISA Clarifies Enforcement Dates For Racetrack Safety Regulations

 

 

The Horseracing Integrity and Safety Authority released the following list of clarifications on Thursday, regarding the relevant enforcement dates for its racetrack safety regulations.

Rule 2276. HORSESHOES

New horseshoe requirements will not be enforced until August 1, 2022 to ensure adequate inventory of HISA compliant horseshoes.

Rule 2281. RIDING CROP SPECIFICATIONS

The riding crop specification rule will not be enforced until August 1, 2022 to enable adequate inventory of HISA compliant crops.

Note: Rule 2280. USE OF THE RIDING CROP will be enforced July 1, 2022.

Rule 2143. RACEHORSE MONITORING (Vaccinations)

Enforcement of the HISA vaccination requirements is delayed until January 1, 2023 to allow horses to be vaccinated with previously unrequired vaccines at times that do not interfere with training and racing schedules. HISA vaccines must be administered by January 1, 2023.

Note: HISA vaccination requirements are in addition to all state and racetrack vaccine requirements; therefore, all state and racetrack requirements still apply.

Rule 2261. TRANSFER OF CLAIMED HORSE RECORDS

When a Horse is successfully claimed by a new Trainer, the previous Trainer must transfer Trainer records … to the new Trainer within three (3) days of transfer of the Horse to the new Trainer.

Note: ‘Trainer records’ include only records of medical, therapeutic, and surgical treatments and procedures. Required records do NOT include other materials related to training techniques or protocols.

The veterinary treatment records submitted to HISA by the Attending Veterinarian are associated with the Horse’s data record and as such, they travel with the Horse. As soon as the Designated Owner and/or Responsible Person (usually the Trainer) are changed in the HISA System, the new Designated Owner and Responsible Person will have access to the veterinary treatment records of the claimed horse.

However, the Trainer treatment records, which are only required to be maintained by the trainer (and not submitted by the trainer unless specifically requested by HISA), would be transferred according to the following process:

a. The Claiming Clerk will process the claim, changing the Responsible Person and/or Designated Owner to the new Designated Owner and/or Responsible Person (in the HISA System).

b. A message will be sent to both the Current Responsible Person and the new Designated Owner and/or Responsible Person (using HISA Messaging System) directing the process for transfer of trainer treatment records.

c. The Current Responsible Person will be directed to a Claim Form on the HISA website for listing all treatments performed on the horse within the last 60 days, including medical, therapeutic, and surgical treatments.

d. The Current Responsible Person will send the completed Claim Form to the new Designated Owner and/or Responsible Person outside of the HISA System. For example, the Current Responsible Person obtains the contact information of the new Designated Owner/Responsible Person from the Claiming Clerk so they can email the form.

e. A message will be sent to the new Designated Owner and/or Responsible Person asking them to confirm receipt of the Horse records. Additional technological innovations may further facilitate the process.

Note: Trainers are not required to maintain nor transfer Horse training records, nor are they required to transfer records created prior to July 1. Therefore, if a Horse is claimed on July 15, trainers are only expected to transfer 15 days of records.

Rule 2271. PROHIBITED PRACTICES

The following are prohibited practices:

(d) Thermocautery including but not limited to pin firing and freeze firing, or application of any substance to cause vesiculation or blistering of the skin, or a counter-irritant effect.

Notes:

• The prohibition on pin firing and freeze firing applies only to the dorsal surface of the third metacarpal/metatarsal bones (“shins”). This prohibition will apply beginning with the foal crop of 2022; it will not apply to horses foaled prior to 2022.

• Pin firing and freeze firing of other structures is not prohibited.

• Application of any substance to cause vesiculation or blistering of the skin or a counter irritant effect is prohibited on all structures.

(f) Use of electrical medical therapeutic devices including magnetic wave therapy, laser, electro-magnetic blankets, boots, electro-shock, or any other electrical devices that may produce an analgesic effect within forty-eight (48) hours of a training activity or of the start of the published post time for which a Horse is scheduled to race.

Notes:

• ‘Analgesic effect’ means a pain-masking effect that would compromise the ability to determine a Horse’s soundness. Therefore, those modalities may be used for other purposes.

• ‘Training activity’ means a published high-speed work.

Rule 9000. REGISTRATION OF COVERED PERSONS AND COVERED HORSES

Registration Requirement for Covered Persons. A Covered Person as defined by 15 USC § 3051(6) shall register with the Authority in accordance with this rule on the Horseracing Integrity and Safety Authority website at https://portal.hisausapps.org/registration.

Notes:

• Enforcement of the requirement to register under Rule 9000(a) will begin on July 2, 2022, the day after the program effective date of July 1, 2022.

• Any person who has registered with HISA may request to be unregistered by sending an email with the request to HISA at unregister@hisaus.org. A person shall be deemed unregistered immediately upon HISA’s receipt of the email according to the date stamp on the email.

Additional resources and information may be found on the HISA website at https://www.hisaus.org/. Implementation resources are located on the Resources page of the website at https://www.hisaus.org/home#resources.

HISA Registration Webinar Available on YouTube

HISA registration webinar now available on OwnerView YouTube page.

 

Please be advised that OwnerView’s webinar on registration with the Horseracing Integrity and Safety Authority (HISA), held Thursday, June 16, as part of the virtual Thoroughbred Owner Conference series, is now available for viewing on OwnerView’s YouTube page at bit.ly/ownerviewpage. The webinar was moderated by TVG Analyst Caton Bredar and included Lisa Lazarus, chief executive officer of HISA, and Steve Keech, technology director for HISA.

OwnerView is a joint effort spearheaded by The Jockey Club and the Thoroughbred Owners and Breeders Association to encourage ownership of Thoroughbreds and provide accurate information on aspects of ownership such as trainers, public racing syndicates, the process of purchasing and owning a Thoroughbred, racehorse retirement, and owner licensing.

The need for a central resource to encourage Thoroughbred ownership was identified in the comprehensive economic study of the sport that was commissioned by The Jockey Club and conducted by McKinsey & Company in 2011. The OwnerView site was launched in May 2012.

HISA Clarifies ‘Search & Seizure’ Rule On Private Farms

by Chelsea Hackbarth

 

During a Thursday webinar hosted by the Maryland Thoroughbred Horsemen’s Association, Horseracing Integrity and Safety Authority CEO Lisa Lazarus issued clarifications about the much-maligned “search and seizure” rule.

Listed as Regulation 5830 (B), which has not yet been approved by the Federal Trade Commission (FTC)  and is still open for public comment, the rule states:

“The Agency may enter facilities, offices, stables, barns, or any other premises related to Covered Horses which are owned, controlled, or occupied by Covered Person(s) and: (1) inspect and search the premises including any books, records or property, and to take possession or a sample of any item or material believed to be, or that may lead to, evidence directly or indirectly of a violation of the Protocol; (2) search any Covered Person or Covered Horse on the premises; (3) access electronically stored data, including emails, computers, and mobile phones and devices without altering such data or device(s) other than to forward, back up, copy or make a mirror image of such data or device(s); (4) conduct identification and medication checks on any Covered Horse; (5) inspect and take copies of any records the Covered Person is required to keep under the Protocol; (6) examine any Covered Horse under the care of a Covered Person and take Samples from the Covered Horse for analysis.”

 

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