[Congressional Record Volume 166, Number 155 (Wednesday, September 9, 2020)]
[Senate]
[Pages S5514-S5521]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCONNELL (for himself, Mrs. Gillibrand, Ms. McSally, and 
        Mrs. Feinstein):
  S. 4547. A bill to improve the integrity and safety of horseracing by 
requiring uniform safety and performance standards, including a 
horseracing anti-doping and medication control program and a racetrack 
safety program to be developed and enforced by an independent 
Horseracing Integrity and Safety Authority, and for other purposes; to 
the Committee on Commerce, Science, and Transportation.
  Mr. McCONNELL. Mr. President, this year's Kentucky Derby showed that 
our great traditions can adapt to overcome any challenge. But our sport 
must be protected.
  I have been proud to stand up for Kentucky horse racing throughout my 
career. I introduced a checkoff 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 regulations did not unduly restrict the 
racing industry. I have secured tax provisions to promote equine equity 
and grow investment in Kentucky. It has been my privilege to deliver 
for this sport and Kentuckians who stand behind it.
  Today, I am 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, to defend our history 
and the 24,000 Kentuckians who work in the thoroughbred racing 
industry. So in Lexington, the horse capital of the world, I announced 
with my friend Congressman   Andy Barr that we had 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 as well.
  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 am 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 am also glad to have the senior 
Senator from California and the junior Senator from Arkansas as 
original cosponsors on this bill.
  Today, Congressman Barr and Congressman Tonko will present this 
legislation over in the House. I am grateful for Congressman Barr's 
years of leadership on this issue, and I am glad we

[[Page S5515]]

are making bipartisan, bicameral progress with our bill. This way, when 
we can all return to the grandstands to watch the thoroughbreds round 
the final turn toward a thundering finish, we will be taking pride in a 
fair and safe race.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 4547

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Horseracing Integrity and 
     Safety Act of 2020''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Authority.--The term ``Authority'' means the 
     Horseracing Integrity and Safety Authority designated by 
     section 3(a).
       (2) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (3) Covered horse.--The term ``covered horse'' means any 
     Thoroughbred horse, or any other horse made subject to this 
     Act by election of the applicable State racing commission or 
     the breed governing organization for such horse under section 
     5(k), during the period--
       (A) beginning on the date of the horse's first timed and 
     reported workout at a racetrack that participates in covered 
     horseraces or at a training facility; and
       (B) ending on the date on which the Authority receives 
     written notice that the horse has been retired.
       (4) Covered horserace.--The term ``covered horserace'' 
     means any horserace involving covered horses that has a 
     substantial relation to interstate commerce, including any 
     Thoroughbred horserace that is the subject of interstate off-
     track or advance deposit wagers.
       (5) Covered persons.--The term ``covered persons'' means 
     all trainers, owners and breeders, jockeys, racetracks, 
     veterinarians, persons (legal and natural) licensed by a 
     State racing commission and the agents, assigns, and 
     employees of such persons and other horse support personnel 
     who are engaged in the care, training, or racing of covered 
     horses.
       (6) Equine constituencies.--The term ``equine 
     constituencies'' means, collectively, owners and breeders, 
     trainers, racetracks, veterinarians, State racing 
     commissions, and jockeys who are engaged in the care, 
     training, or racing of covered horses.
       (7) Equine industry representative.--The term ``equine 
     industry representative'' means an organization regularly and 
     significantly engaged in the equine industry, including 
     organizations that represent the interests of, and whose 
     membership consists of, owners and breeders, trainers, 
     racetracks, veterinarians, State racing commissions, and 
     jockeys.
       (8) Horseracing anti-doping and medication control 
     program.--The term ``horseracing anti-doping and medication 
     control program'' means the anti-doping and medication 
     program established under section 6(a).
       (9) Immediate family member.--The term ``immediate family 
     member'' shall include a spouse, domestic partner, mother, 
     father, aunt, uncle, sibling, or child.
       (10) Interstate off-track wager.--The term ``interstate 
     off-track wager'' has the meaning given such term in section 
     3 of the Interstate Horseracing Act of 1978 (15 U.S.C. 3002).
       (11) Jockey.--The term ``jockey'' means a rider or driver 
     of a covered horse in covered horseraces.
       (12) Owners and breeders.--The term ``owners and breeders'' 
     means those persons who either hold ownership interests in 
     covered horses or who are in the business of breeding covered 
     horses.
       (13) Program effective date.--The term ``program effective 
     date'' means the earlier of--
       (A) January 1 of the second year after the date of the 
     enactment of this Act; or
       (B) the date that is 540 days after such date of enactment.
       (14) Racetrack.--The term ``racetrack'' means an 
     organization licensed by a State racing commission to conduct 
     covered horseraces.
       (15) Racetrack safety program.--The term ``racetrack safety 
     program'' means the program established under section 7(a).
       (16) Stakes race.--The term ``stakes race'' means any race 
     so designated by the racetrack at which such race is run, 
     including, without limitation, the races comprising the 
     Breeders' Cup World Championships and the races designated as 
     graded stakes by the American Graded Stakes Committee of the 
     Thoroughbred Owners and Breeders Association.
       (17) State racing commission.--The term ``State racing 
     commission'' means an entity designated by State law or 
     regulation that has jurisdiction over the conduct of 
     horseracing within the applicable State.
       (18) Trainer.--The term ``trainer'' means an individual 
     engaged in the training of covered horses.
       (19) Training facility.--The term ``training facility'' 
     means a location that is not a racetrack licensed by a State 
     racing commission that operates primarily to house covered 
     horses and conduct official timed workouts.
       (20) Veterinarian.--The term ``veterinarian'' means a 
     licensed veterinarian who provides veterinary services to 
     covered horses.
       (21) Workout.--The term ``workout'' means a timed running 
     of a horse over a predetermined distance not associated with 
     a race or its first qualifying race, if such race is made 
     subject to this Act by election under section 5(k) of the 
     horse's breed governing organization or the applicable State 
     racing commission.

     SEC. 3. RECOGNITION OF THE HORSERACING INTEGRITY AND SAFETY 
                   AUTHORITY.

       (a) In General.--The private, independent, self-regulatory, 
     nonprofit corporation, to be known as the ``Horseracing 
     Integrity and Safety Authority'', is recognized for purposes 
     of developing and implementing a horseracing anti-doping and 
     medication control program and a racetrack safety program for 
     covered horses, covered persons, and covered horseraces.
       (b) Board of Directors.--
       (1) Membership.--The Authority shall be governed by a board 
     of directors (in this section referred to as the ``Board'') 
     comprised of nine members as follows:
       (A) Independent members.--Five members of the Board shall 
     be independent members selected from outside the equine 
     industry.
       (B) Industry members.--
       (i) In general.--Four members of the Board shall be 
     industry members selected from among the various equine 
     constituencies.
       (ii) Representation of equine constituencies.--The industry 
     members shall be representative of the various equine 
     constituencies, and shall include not more than one industry 
     member from any one equine constituency.
       (2) Chair.--The chair of the Board shall be an independent 
     member described in paragraph (1)(A).
       (3) Bylaws.--The Board of the Authority shall be governed 
     by bylaws for the operation of the Authority with respect 
     to--
       (A) the administrative structure and employees of the 
     Authority;
       (B) the establishment of standing committees;
       (C) the procedures for filling vacancies on the Board and 
     the standing committees;
       (D) term limits for members and termination of membership; 
     and
       (E) any other matter the Board considers necessary.
       (c) Standing Committees.--
       (1) Anti-doping and medication control standing 
     committee.--
       (A) In general.--The Authority shall establish an anti-
     doping and medication control standing committee, which shall 
     provide advice and guidance to the Board on the development 
     and maintenance of the horseracing anti-doping and medication 
     control program.
       (B) Membership.--The anti-doping and medication control 
     standing committee shall be comprised of seven members as 
     follows:
       (i) Independent members.--A majority of the members shall 
     be independent members selected from outside the equine 
     industry.
       (ii) Industry members.--A minority of the members shall be 
     industry members selected to represent the various equine 
     constituencies, and shall include not more than one industry 
     member from any one equine constituency.
       (iii) Qualification.--A majority of individuals selected to 
     serve on the anti-doping and medication control standing 
     committee shall have significant, recent experience in anti-
     doping and medication control rules.
       (C) Chair.--The chair of the anti-doping and medication 
     control standing committee shall be an independent member of 
     the Board described in subsection (b)(1)(A).
       (2) Racetrack safety standing committee.--
       (A) In general.--The Authority shall establish a racetrack 
     safety standing committee, which shall provide advice and 
     guidance to the Board on the development and maintenance of 
     the racetrack safety program.
       (B) Membership.--The racetrack safety standing committee 
     shall be comprised of seven members as follows:
       (i) Independent members.--A majority of the members shall 
     be independent members selected from outside the equine 
     industry.
       (ii) Industry members.--A minority of the members shall be 
     industry members selected to represent the various equine 
     constituencies.
       (C) Chair.--The chair of the racetrack safety standing 
     committee shall be an industry member of the Board described 
     in subsection (b)(1)(B).
       (d) Nominating Committee.--
       (1) Membership.--
       (A) In general.--The nominating committee of the Authority 
     shall be comprised of seven independent members selected from 
     business, sports, and academia.
       (B) Initial membership.--The initial nominating committee 
     members shall be set forth in the governing corporate 
     documents of the Authority.
       (C) Vacancies.--After the initial committee members are 
     appointed in accordance with subparagraph (B), vacancies 
     shall be filled by the Board pursuant to rules established by 
     the Authority.

[[Page S5516]]

       (2) Chair.--The chair of the nominating committee shall be 
     selected by the nominating committee from among the members 
     of the nominating committee.
       (3) Selection of members of the board and standing 
     committees.--
       (A) Initial members.--The nominating committee shall select 
     the initial members of the Board and the standing committees 
     described in subsection (c).
       (B) Subsequent members.-- The nominating committee shall 
     recommend individuals to fill any vacancy on the Board or on 
     such standing committees.
       (e) Conflicts of Interest.--To avoid conflicts of interest, 
     the following individuals may not be selected as a member of 
     the Board or as an independent member of a nominating or 
     standing committee under this section:
       (1) An individual who has a financial interest in, or 
     provides goods or services to, covered horses.
       (2) An official or officer--
       (A) of an equine industry representative; or
       (B) who serves in a governance or policymaking capacity for 
     an equine industry representative.
       (3) An employee of, or an individual who has a business or 
     commercial relationship with, an individual described in 
     paragraph (1) or (2).
       (4) An immediate family member of an individual described 
     in paragraph (1) or (2).
       (f) Funding.--
       (1) Initial funding.--
       (A) In general.--Initial funding to establish the Authority 
     and underwrite its operations before the program effective 
     date shall be provided by loans obtained by the Authority.
       (B) Borrowing.--The Authority may borrow funds toward the 
     funding of its operations.
       (C) Annual calculation of amounts required.--
       (i) In general.--Not later than the date that is 90 days 
     before the program effective date, and not later than 
     November 1 each year thereafter, the Authority shall 
     determine and provide to each State racing commission the 
     estimated amount required from the State--

       (I) to fund the State's proportionate share of the 
     horseracing anti-doping and medication control program and 
     the racetrack safety program for the next calendar year; and
       (II) to liquidate the State's proportionate share of any 
     loan or funding shortfall in the current calendar year and 
     any previous calendar year.

       (ii) Basis of calculation.--The amounts calculated under 
     clause (i) shall--

       (I) be based on--

       (aa) the annual budget of the Authority for the following 
     calendar year, as approved by the Board; and
       (bb) the projected amount of covered racing starts for the 
     year in each State; and

       (II) take into account other sources of Authority revenue.

       (iii) Requirements regarding budgets of authority.--

       (I) Initial budget.--The initial budget of the Authority 
     shall require the approval of \2/3\ of the Board.
       (II) Subsequent budgets.--Any subsequent budget that 
     exceeds the budget of the preceding calendar year by more 
     than 5 percent shall require the approval of \2/3\ of the 
     Board.

       (iv) Rate increases.--

       (I) In general.--A proposed increase in the amount required 
     under this subparagraph shall be reported to the Commission.
       (II) Notice and comment.--The Commission shall publish in 
     the Federal Register such a proposed increase and provide an 
     opportunity for public comment.

       (2) Assessment and collection of fees by states.--
       (A) Notice of election.--Any State racing commission that 
     elects to remit fees pursuant to this subsection shall notify 
     the Authority of such election not later than 60 days before 
     the program effective date.
       (B) Requirement to remit fees.--After a State racing 
     commission makes a notification under subparagraph (A), the 
     election shall remain in effect and the State racing 
     commission shall be required to remit fees pursuant to this 
     subsection according to a schedule established in rule 
     developed by the Authority and approved by the Commission.
       (C) Withdrawal of election.--A State racing commission may 
     cease remitting fees under this subsection not earlier than 
     one year after notifying the Authority of the intent of the 
     State racing commission to do so.
       (D) Determination of methods.--Each State racing commission 
     shall determine, subject to the applicable laws, regulations, 
     and contracts of the State, the method by which the requisite 
     amount of fees, such as foal registration fees, sales 
     contributions, starter fees, and track fees, and other fees 
     on covered persons, shall be allocated, assessed, and 
     collected.
       (3) Assessment and collection of fees by the authority.--
       (A) Calculation.--If a State racing commission does not 
     elect to remit fees pursuant to paragraph (2) or withdraws 
     its election under such paragraph, the Authority shall, not 
     less frequently than monthly, calculate the applicable fee 
     per racing start multiplied by the number of racing starts in 
     the State during the preceding month.
       (B) Allocation.--The Authority shall allocate equitably the 
     amount calculated under subparagraph (A) collected among 
     covered persons involved with covered horseraces pursuant to 
     such rules as the Authority may promulgate.
       (C) Assessment and collection.--
       (i) In general.--The Authority shall assess a fee equal to 
     the allocation made under subparagraph (B) and shall collect 
     such fee according to such rules as the Authority may 
     promulgate.
       (ii) Remittance of fees.--Covered persons described in 
     subparagraph (B) shall be required to remit such fees to the 
     Authority.
       (D) Limitation.--A State racing commission that does not 
     elect to remit fees pursuant to paragraph (2) or that 
     withdraws its election under such paragraph shall not impose 
     or collect from any person a fee or tax relating to anti-
     doping and medication control or racetrack safety matters for 
     covered horseraces.
       (4) Fees and fines.--Fees and fines imposed by the 
     Authority shall be allocated toward funding of the Authority 
     and its activities.
       (5) Rule of construction.--Nothing in this Act shall be 
     construed to require--
       (A) the appropriation of any amount to the Authority; or
       (B) the Federal Government to guarantee the debts of the 
     Authority.
       (g) Quorum.--For all items where Board approval is 
     required, the Authority shall have present a majority of 
     independent members.

     SEC. 4. FEDERAL TRADE COMMISSION OVERSIGHT.

       (a) In General.--The Authority shall submit to the 
     Commission, in accordance with such rules as the Commission 
     may prescribe under section 553 of title 5, United States 
     Code, any proposed rule, or proposed modification to a rule, 
     of the Authority relating to--
       (1) the bylaws of the Authority;
       (2) a list of permitted and prohibited medications, 
     substances, and methods, including allowable limits of 
     permitted medications, substances, and methods;
       (3) laboratory standards for accreditation and protocols;
       (4) standards for racing surface quality maintenance;
       (5) racetrack safety standards and protocols;
       (6) a program for injury and fatality data analysis;
       (7) a program of research and education on safety, 
     performance, and anti-doping and medication control;
       (8) a description of safety, performance, and anti-doping 
     and medication control rule violations applicable to covered 
     horses and covered persons;
       (9) a schedule of civil sanctions for violations;
       (10) a process or procedures for disciplinary hearings; and
       (11) a formula or methodology for determining assessments 
     described in section 3(f).
       (b) Publication and Comment.--
       (1) In general.--The Commission shall--
       (A) publish in the Federal Register each proposed rule or 
     modification submitted under subsection (a); and
       (B) provide an opportunity for public comment.
       (2) Approval required.--A proposed rule, or a proposed 
     modification to a rule, of the Authority shall not take 
     effect unless the proposed rule or modification has been 
     approved by the Commission.
       (c) Decision on Proposed Rule or Modification to a Rule.--
       (1) In general.--Not later than 60 days after the date on 
     which a proposed rule or modification is published in the 
     Federal Register, the Commission shall approve or disapprove 
     the proposed rule or modification.
       (2) Conditions.--The Commission shall approve a proposed 
     rule or modification if the Commission finds that the 
     proposed rule or modification is consistent with--
       (A) this Act; and
       (B) applicable rules approved by the Commission.
       (3) Revision of proposed rule or modification.--
       (A) In general.--In the case of disapproval of a proposed 
     rule or modification under this subsection, not later than 30 
     days after the issuance of the disapproval, the Commission 
     shall make recommendations to the Authority to modify the 
     proposed rule or modification.
       (B) Resubmission.--The Authority may resubmit for approval 
     by the Commission a proposed rule or modification that 
     incorporates the modifications recommended under subparagraph 
     (A).
       (d) Proposed Standards and Procedures.--
       (1) In general.--The Authority shall submit to the 
     Commission any proposed rule, standard, or procedure 
     developed by the Authority to carry out the horseracing anti-
     doping and medication control program or the racetrack safety 
     program.
       (2) Notice and comment.--The Commission shall publish in 
     the Federal Register any such proposed rule, standard, or 
     procedure and provide an opportunity for public comment.
       (e) Interim Final Rules.--The Commission may adopt an 
     interim final rule, to take effect immediately, under 
     conditions specified in section 553(b)(B) of title 5, United 
     States Code, if the Commission finds that such a rule is 
     necessary to protect--
       (1) the health and safety of covered horses; or
       (2) the integrity of covered horseraces and wagering on 
     those horseraces.

[[Page S5517]]

  


     SEC. 5. JURISDICTION OF THE COMMISSION AND THE HORSERACING 
                   INTEGRITY AND SAFETY AUTHORITY.

       (a) In General.--Beginning on the program effective date, 
     the Commission, the Authority, and the anti-doping and 
     medication control enforcement agency, each within the scope 
     of their powers and responsibilities under this Act, as 
     limited by subsection (j), shall--
       (1) implement and enforce the horseracing anti-doping and 
     medication control program and the racetrack safety program;
       (2) exercise independent and exclusive national authority 
     over--
       (A) the safety, welfare, and integrity of covered horses, 
     covered persons, and covered horseraces; and
       (B) all horseracing safety, performance, and anti-doping 
     and medication control matters for covered horses, covered 
     persons, and covered horseraces; and
       (3) have safety, performance, and anti-doping and 
     medication control authority over covered persons similar to 
     such authority of the State racing commissions before the 
     program effective date.
       (b) Preemption.--The rules of the Authority promulgated in 
     accordance with this Act shall preempt any provision of State 
     law or regulation with respect to matters within the 
     jurisdiction of the Authority under this Act, as limited by 
     subsection (j). Nothing contained in this Act shall be 
     construed to limit the authority of the Commission under any 
     other provision of law.
       (c) Duties.--
       (1) In general.--The Authority--
       (A) shall develop uniform procedures and rules 
     authorizing--
       (i) access to offices, racetrack facilities, other places 
     of business, books, records, and personal property of covered 
     persons that are used in the care, treatment, training, and 
     racing of covered horses;
       (ii) issuance and enforcement of subpoenas and subpoenas 
     duces tecum; and
       (iii) other investigatory powers of the nature and scope 
     exercised by State racing commissions before the program 
     effective date; and
       (B) with respect to an unfair or deceptive act or practice 
     described in section 10, may recommend that the Commission 
     commence an enforcement action.
       (2) Approval of commission.--The procedures and rules 
     developed under paragraph (1)(A) shall be subject to approval 
     by the Commission in accordance with section 4.
       (d) Registration of Covered Persons With Authority.--
       (1) In general.--As a condition of participating in covered 
     races and in the care, ownership, treatment, and training of 
     covered horses, a covered person shall register with the 
     Authority in accordance with rules promulgated by the 
     Authority and approved by the Commission in accordance with 
     section 4.
       (2) Agreement with respect to authority rules, standards, 
     and procedures.--Registration under this subsection shall 
     include an agreement by the covered person to be subject to 
     and comply with the rules, standards, and procedures 
     developed and approved under subsection (c).
       (3) Cooperation.--A covered person registered under this 
     subsection shall, at all times--
       (A) cooperate with the Commission, the Authority, the anti-
     doping and medication control enforcement agency, and any 
     respective designee, during any civil investigation; and
       (B) respond truthfully and completely to the best of the 
     knowledge of the covered person if questioned by the 
     Commission, the Authority, the anti-doping and medication 
     control enforcement agency, or any respective designee.
       (4) Failure to comply.--Any failure of a covered person to 
     comply with this subsection shall be a violation of section 
     8(a)(2)(G).
       (e) Enforcement of Programs.--
       (1) Anti-doping and medication control enforcement 
     agency.--
       (A) Agreement with usada.--The Authority shall seek to 
     enter into an agreement with the United States Anti-Doping 
     Agency under which the Agency acts as the anti-doping and 
     medication control enforcement agency under this Act for 
     services consistent with the horseracing anti-doping and 
     medication control program.
       (B) Agreement with other entity.--If the Authority and the 
     United States Anti-Doping Agency are unable to enter into the 
     agreement described in subparagraph (A), the Authority shall 
     enter into an agreement with an entity that is nationally 
     recognized as being a medication regulation agency equal in 
     qualification to the United States Anti-Doping Agency to act 
     as the anti-doping and medication control enforcement agency 
     under this Act for services consistent with the horseracing 
     anti-doping and medication control program.
       (C) Negotiations.--Any negotiations under this paragraph 
     shall be conducted in good faith and designed to achieve 
     efficient, effective best practices for anti-doping and 
     medication control and enforcement on commercially reasonable 
     terms.
       (D) Elements of agreement.--Any agreement under this 
     paragraph shall include a description of the scope of work, 
     performance metrics, reporting obligations, budgets of the 
     United States Anti-Doping Agency while acting as the anti-
     doping and medication control enforcement agency under this 
     Act, a provision for the revision of the agreement to 
     increase in the scope of work, as provided in subsection (k), 
     and any other matter the Authority considers appropriate.
       (E) Duties and powers of enforcement agency.--The anti-
     doping and medication control enforcement agency under an 
     agreement under this paragraph shall--
       (i) serve as the independent anti-doping and medication 
     control enforcement organization for covered horses, covered 
     persons, and covered horseraces, implementing the anti-doping 
     and medication control program on behalf of the Authority;
       (ii) ensure that covered horses and covered persons are 
     deterred from using or administering medications, substances, 
     and methods in violation of the rules established in 
     accordance with this Act;
       (iii) implement anti-doping education, research, testing, 
     compliance and adjudication programs designed to prevent 
     covered persons and covered horses from using or 
     administering medications, substances, and methods in 
     violation of the rules established in accordance with this 
     Act;
       (iv) exercise the powers specified in section 6(c)(4) in 
     accordance with that section; and
       (v) implement and undertake any other responsibilities 
     specified in the agreement.
       (F) Term and extension.--
       (i) Term of initial agreement.--The initial agreement 
     entered into by the Authority under this paragraph shall be 
     in effect for the 5-year period beginning on the program 
     effective date.
       (ii) Extension.--At the end of the 5-year period described 
     in clause (i), the Authority may--

       (I) extend the term of the initial agreement under this 
     paragraph for such additional term as is provided by the 
     rules of the Authority and consistent with this Act; or
       (II) enter into an agreement meeting the requirements of 
     this paragraph with an entity described by subparagraph (B) 
     for such term as is provided by such rules and consistent 
     with this Act.

       (2) Agreements for enforcement by state racing 
     commissions.--
       (A) State racing commissions.--
       (i) Racetrack safety program.--The Authority may enter into 
     agreements with State racing commissions for services 
     consistent with the enforcement of the racetrack safety 
     program.
       (ii) Anti-doping and medication control program.--The anti-
     doping and medication control enforcement agency may enter 
     into agreements with State racing commissions for services 
     consistent with the enforcement of the anti-doping and 
     medication control program.
       (B) Elements of agreements.--Any agreement under this 
     paragraph shall include a description of the scope of work, 
     performance metrics, reporting obligations, budgets, and any 
     other matter the Authority considers appropriate.
       (3) Enforcement of standards.--The Authority may coordinate 
     with State racing commissions and other State regulatory 
     agencies to monitor and enforce racetrack compliance with the 
     standards developed under paragraphs (1) and (2) of section 
     7(c).
       (f) Procedures With Respect to Rules of Authority.--
       (1) Anti-doping and medication control.--
       (A) In general.--Recommendations for rules regarding anti-
     doping and medication control shall be developed in 
     accordance with section 6.
       (B) Consultation.--The anti-doping and medication control 
     enforcement agency shall consult with the anti-doping and 
     medication control standing committee and the Board of the 
     Authority on all anti-doping and medication control rules of 
     the Authority.
       (2) Racetrack safety.--Recommendations for rules regarding 
     racetrack safety shall be developed by the racetrack safety 
     standing committee of the Authority
       (g) Subpoena and Investigatory Authority.--The Authority 
     shall have subpoena and investigatory authority with respect 
     to civil violations committed under its jurisdiction.
       (h) Civil Penalties.--The Authority shall develop a list of 
     civil penalties with respect to the enforcement of rules for 
     covered persons and covered horseraces under its 
     jurisdiction.
       (i) Civil Actions.--
       (1) In general.--In addition to civil sanctions imposed 
     under section 8, the Authority may commence a civil action 
     against a covered person or racetrack that has engaged, is 
     engaged, or is about to engage, in acts or practices 
     constituting a violation of this Act or any rule established 
     under this Act in the proper district court of the United 
     States, the United States District Court for the District of 
     Columbia, or the United States courts of any territory or 
     other place subject to the jurisdiction of the United States, 
     to enjoin such acts or practices, to enforce any civil 
     sanctions imposed under that section, and for all other 
     relief to which the Authority may be entitled.
       (2) Injunctions and restraining orders.--With respect to a 
     civil action commenced under paragraph (1), upon a proper 
     showing, a permanent or temporary injunction or restraining 
     order shall be granted without bond.
       (j) Limitations on Authority.--
       (1) Prospective application.--The jurisdiction and 
     authority of the Authority and the Commission with respect to 
     the horseracing anti-doping and medication control program 
     and the racetrack safety program shall be prospective only.
       (2) Previous matters.--

[[Page S5518]]

       (A) In general.--The Authority and the Commission may not 
     investigate, prosecute, adjudicate, or penalize conduct in 
     violation of the horseracing anti-doping and medication 
     control program and the racetrack safety program that occurs 
     before the program effective date.
       (B) State racing commission.--With respect to conduct 
     described in subparagraph (A), the applicable State racing 
     commission shall retain authority until the final resolution 
     of the matter.
       (3) Other laws unaffected.--This Act shall not be construed 
     to modify, impair, or restrict the operation of the general 
     laws or regulations, as may be amended from time to time, of 
     the United States, the States and their political 
     subdivisions relating to criminal conduct, cruelty to 
     animals, matters unrelated to anti-doping, medication control 
     and racetrack and racing safety of covered horses and covered 
     races, and the use of medication in human participants in 
     covered races.
       (k) Election for Other Breed Coverage Under Act.--
       (1) In general.--A State racing commission or a breed 
     governing organization for a breed of horses other than 
     Thoroughbred horses may elect to have such breed be covered 
     by this Act by the filing of a designated election form and 
     subsequent approval by the Authority. A State racing 
     commission may elect to have a breed covered by this Act for 
     the applicable State only.
       (2) Election conditional on funding mechanism.--A 
     commission or organization may not make an election under 
     paragraph (1) unless the commission or organization has in 
     place a mechanism to provide sufficient funds to cover the 
     costs of the administration of this Act with respect to the 
     horses that will be covered by this Act as a result of the 
     election.
       (3) Apportionment.--The Authority shall apportion costs 
     described in paragraph (2) in connection with an election 
     under paragraph (1) fairly among all impacted segments of the 
     horseracing industry, subject to approval by the Commission 
     in accordance with section 4. Such apportionment may not 
     provide for the allocation of costs or funds among breeds of 
     horses.

     SEC. 6. HORSERACING ANTI-DOPING AND MEDICATION CONTROL 
                   PROGRAM.

       (a) Program Required.--
       (1) In general.--Not later than the program effective date, 
     and after notice and an opportunity for public comment in 
     accordance with section 4, the Authority shall establish a 
     horseracing anti-doping and medication control program 
     applicable to all covered horses, covered persons, and 
     covered horseraces in accordance with the registration of 
     covered persons under section 5(d).
       (2) Consideration of other breeds.--In developing the 
     horseracing anti-doping and medication control program with 
     respect to a breed of horse that is made subject to this Act 
     by election of a State racing commission or the breed 
     governing organization for such horse under section 5(k), the 
     Authority shall consider the unique characteristics of such 
     breed.
       (b) Considerations in Development of Program.--In 
     developing the horseracing anti-doping and medication control 
     program, the Authority shall take into consideration the 
     following:
       (1) Covered horses should compete only when they are free 
     from the influence of medications, other foreign substances, 
     and methods that affect their performance.
       (2) Covered horses that are injured or unsound should not 
     train or participate in covered races, and the use of 
     medications, other foreign substances, and treatment methods 
     that mask or deaden pain in order to allow injured or unsound 
     horses to train or race should be prohibited.
       (3) Rules, standards, procedures, and protocols regulating 
     medication and treatment methods for covered horses and 
     covered races should be uniform and uniformly administered 
     nationally.
       (4) To the extent consistent with this Act, consideration 
     should be given to international anti-doping and medication 
     control standards of the International Federation of 
     Horseracing Authorities and the Principles of Veterinary 
     Medical Ethics of the American Veterinary Medical 
     Association.
       (5) The administration of medications and treatment methods 
     to covered horses should be based upon an examination and 
     diagnosis that identifies an issue requiring treatment for 
     which the medication or method represents an appropriate 
     component of treatment.
       (6) The amount of therapeutic medication that a covered 
     horse receives should be the minimum necessary to address the 
     diagnosed health concerns identified during the examination 
     and diagnostic process.
       (7) The welfare of covered horses, the integrity of the 
     sport, and the confidence of the betting public require full 
     disclosure to regulatory authorities regarding the 
     administration of medications and treatments to covered 
     horses.
       (c) Activities.--The following activities shall be carried 
     out under the horseracing anti-doping and medication control 
     program:
       (1) Standards for anti-doping and medication control.--Not 
     later than 120 days before the program effective date, the 
     Authority shall issue, by rule--
       (A) uniform standards for--
       (i) the administration of medication to covered horses by 
     covered persons; and
       (ii) laboratory testing accreditation and protocols; and
       (B) a list of permitted and prohibited medications, 
     substances, and methods, including allowable limits of 
     permitted medications, substances, and methods.
       (2) Review process for administration of medication.--The 
     development of a review process for the administration of any 
     medication to a covered horse during the 48-hour period 
     preceding the next racing start of the covered horse.
       (3) Agreement requirements.--The development of 
     requirements with respect to agreements under section 5(e).
       (4) Anti-doping and medication control enforcement 
     agency.--
       (A) Control rules, protocols, etc.--Except as provided in 
     paragraph (5), the anti-doping and medication control program 
     enforcement agency under section 5(e) shall, in consultation 
     with the anti-doping and medication control standing 
     committee of the Authority and consistent with international 
     best practices, develop and recommend anti-doping and 
     medication control rules, protocols, policies, and guidelines 
     for approval by the Authority.
       (B) Results management.--The anti-doping and medication 
     control enforcement agency shall conduct and oversee anti-
     doping and medication control results management, including 
     independent investigations, charging and adjudication of 
     potential medication control rule violations, and the 
     enforcement of any civil sanctions for such violations. Any 
     final decision or civil sanction of the anti-doping and 
     medication control enforcement agency under this subparagraph 
     shall be the final decision or civil sanction of the 
     Authority, subject to review in accordance with section 9.
       (C) Testing.--The anti-doping enforcement agency shall 
     perform and manage test distribution planning (including 
     intelligence-based testing), the sample collection process, 
     and in-competition and out-of-competition testing (including 
     no-advance-notice testing).
       (D) Testing laboratories.--The anti-doping and medication 
     control enforcement agency shall accredit testing 
     laboratories based upon the standards established under this 
     Act, and shall monitor, test, and audit accredited 
     laboratories to ensure continuing compliance with 
     accreditation standards.
       (5) Anti-doping and medication control standing 
     committee.--The anti-doping and medication control standing 
     committee shall, in consultation with the anti-doping and 
     medication control enforcement agency, develop lists of 
     permitted and prohibited medications, methods, and substances 
     for recommendation to, and approval by, the Authority. Any 
     such list may prohibit the administration of any substance or 
     method to a horse at any time after such horse becomes a 
     covered horse if the Authority determines such substance or 
     method has a long-term degrading effect on the soundness of a 
     horse.
       (d) Prohibition.--Except as provided in subsections (e) and 
     (f), the horseracing anti-doping and medication control 
     program shall prohibit the administration of any prohibited 
     or otherwise permitted substance to a covered horse within 48 
     hours of its next racing start, effective as of the program 
     effective date.
       (e) Advisory Committee Study and Report.--
       (1) In general.--Not later than the program effective date, 
     the Authority shall convene an advisory committee comprised 
     of horseracing anti-doping and medication control industry 
     experts, including a member designated by the anti-doping and 
     medication control enforcement agency, to conduct a study on 
     the use of furosemide on horses during the 48-hour period 
     before the start of a race, including the effect of 
     furosemide on equine health and the integrity of competition 
     and any other matter the Authority considers appropriate.
       (2) Report.--Not later than three years after the program 
     effective date, the Authority shall direct the advisory 
     committee convened under paragraph (1) to submit to the 
     Authority a written report on the study conducted under that 
     paragraph that includes recommended changes, if any, to the 
     prohibition in subsection (d).
       (3) Modification of prohibition.--
       (A) In general.--After receipt of the report required by 
     paragraph (2), the Authority may, by unanimous vote of the 
     Board of the Authority, modify the prohibition in subsection 
     (d) and, notwithstanding subsection (f), any such 
     modification shall apply to all States beginning on the date 
     that is three years after the program effective date.
       (B) Condition.--In order for a unanimous vote described in 
     subparagraph (A) to effect a modification of the prohibition 
     in subsection (d), the vote must include unanimous adoption 
     of each of the following findings:
       (i) That the modification is warranted.
       (ii) That the modification is in the best interests of 
     horse racing.
       (iii) That furosemide has no performance enhancing effect 
     on individual horses.
       (iv) That public confidence in the integrity and safety of 
     racing would not be adversely affected by the modification.
       (f) Exemption.--
       (1) In general.--Except as provided in paragraph (2), only 
     during the three-year period beginning on the program 
     effective date, a State racing commission may submit to the 
     Authority, at such time and in such manner as the Authority 
     may require, a request for an exemption from the prohibition 
     in subsection (d) with respect to the use of

[[Page S5519]]

     furosemide on covered horses during such period.
       (2) Exceptions.--An exemption under paragraph (1) may not 
     be requested for--
       (A) two-year-old covered horses; or
       (B) covered horses competing in stakes races.
       (3) Contents of request.--A request under paragraph (1) 
     shall specify the applicable State racing commission's 
     requested limitations on the use of furosemide that would 
     apply to the State under the horseracing anti-doping and 
     medication control program during such period. Such 
     limitations shall be no less restrictive on the use and 
     administration of furosemide than the restrictions set forth 
     in State's laws and regulations in effect as of September 1, 
     2020.
       (4) Grant of exemption.--Subject to subsection (e)(3), the 
     Authority shall grant an exemption requested under paragraph 
     (1) for the remainder of such period and shall allow the use 
     of furosemide on covered horses in the applicable State, in 
     accordance with the requested limitations.
       (g) Baseline Anti-doping and Medication Control Rules.--
       (1) In general.--Subject to paragraph (3), the baseline 
     anti-doping and medication control rules described in 
     paragraph (2) shall--
       (A) constitute the initial rules of the horseracing anti-
     doping and medication control program; and
       (B) except as exempted pursuant to subsections (e) and (f), 
     remain in effect at all times after the program effective 
     date.
       (2) Baseline anti-doping medication control rules 
     described.--
       (A) In general.--The baseline anti-doping and medication 
     control rules described in this paragraph are the following:
       (i) The lists of permitted and prohibited substances 
     (including drugs, medications, and naturally occurring 
     substances and synthetically occurring substances) in effect 
     for the International Federation of Horseracing Authorities, 
     including the International Federation of Horseracing 
     Authorities International Screening Limits for urine, dated 
     May 2019, and the International Federation of Horseracing 
     Authorities International Screening Limits for plasma, dated 
     May 2019.
       (ii) The World Anti-Doping Agency International Standard 
     for Laboratories (version 10.0), dated November 12, 2019.
       (iii) The Association of Racing Commissioners International 
     out-of-competition testing standards, Model Rules of Racing 
     (version 9.2).
       (iv) The Association of Racing Commissioners International 
     penalty and multiple medication violation rules, Model Rules 
     of Racing (version 6.2).
       (B) Conflict of rules.--In the case of a conflict among the 
     rules described in subparagraph (A), the most stringent rule 
     shall apply.
       (3) Modifications to baseline rules.--
       (A) Development by anti-doping and medication control 
     standing committee.--The anti-doping and medication control 
     standing committee, in consultation with the anti-doping and 
     medication control enforcement agency, may develop and submit 
     to the Authority for approval by the Authority proposed 
     modifications to the baseline anti-doping and medication 
     control rules.
       (B) Authority approval.--If the Authority approves a 
     proposed modification under this paragraph, the proposed 
     modification shall be submitted to and considered by the 
     Commission in accordance with section 4.
       (C) Anti-doping and medication control enforcement agency 
     veto authority.--The Authority shall not approve any proposed 
     modification that renders an anti-doping and medication 
     control rule less stringent than the baseline anti-doping and 
     medication control rules described in paragraph (2) 
     (including by increasing permitted medication thresholds, 
     adding permitted medications, removing prohibited 
     medications, or weakening enforcement mechanisms) without the 
     approval of the anti-doping and medication control 
     enforcement agency.

     SEC. 7. RACETRACK SAFETY PROGRAM.

       (a) Establishment and Considerations.--
       (1) In general.--Not later than the program effective date, 
     and after notice and an opportunity for public comment in 
     accordance with section 4, the Authority shall establish a 
     racetrack safety program applicable to all covered horses, 
     covered persons, and covered horseraces in accordance with 
     the registration of covered persons under section 5(d).
       (2) Considerations in development of safety program.--In 
     the development of the horseracing safety program for covered 
     horses, covered persons, and covered horseraces, the 
     Authority and the Commission shall take into consideration 
     existing safety standards including the National Thoroughbred 
     Racing Association Safety and Integrity Alliance Code of 
     Standards, the International Federation of Horseracing 
     Authority's International Agreement on Breeding, Racing, and 
     Wagering, and the British Horseracing Authority's Equine 
     Health and Welfare program.
       (b) Elements of Horseracing Safety Program.--The 
     horseracing safety program shall include the following:
       (1) A set of training and racing safety standards and 
     protocols taking into account regional differences and the 
     character of differing racing facilities.
       (2) A uniform set of training and racing safety standards 
     and protocols consistent with the humane treatment of covered 
     horses, which may include lists of permitted and prohibited 
     practices or methods (such as crop use).
       (3) A racing surface quality maintenance system that--
       (A) takes into account regional differences and the 
     character of differing racing facilities; and
       (B) may include requirements for track surface design and 
     consistency and established standard operating procedures 
     related to track surface, monitoring, and maintenance (such 
     as standardized seasonal assessment, daily tracking, and 
     measurement).
       (4) A uniform set of track safety standards and protocols, 
     that may include rules governing oversight and movement of 
     covered horses and human and equine injury reporting and 
     prevention.
       (5) Programs for injury and fatality data analysis, that 
     may include pre- and post-training and race inspections, use 
     of a veterinarian's list, and concussion protocols.
       (6) The undertaking of investigations at racetrack and non-
     racetrack facilities related to safety violations.
       (7) Procedures for investigating, charging, and 
     adjudicating violations and for the enforcement of civil 
     sanctions for violations.
       (8) A schedule of civil sanctions for violations.
       (9) Disciplinary hearings, which may include binding 
     arbitration, civil sanctions, and research.
       (10) Management of violation results.
       (11) Programs relating to safety and performance research 
     and education.
       (12) An evaluation and accreditation program that ensures 
     that racetracks in the United States meet the standards 
     described in the elements of the Horseracing Safety Program.
       (c) Activities.--The following activities shall be carried 
     out under the racetrack safety program:
       (1) Standards for racetrack safety.--The development, by 
     the racetrack safety standing committee of the Authority in 
     section 3(c)(2) of uniform standards for racetrack and 
     horseracing safety.
       (2) Standards for safety and performance accreditation.--
       (A) In general.--Not later than 120 days before the program 
     effective date, the Authority, in consultation with the 
     racetrack safety standing committee, shall issue, by rule in 
     accordance with section 4--
       (i) safety and performance standards of accreditation for 
     racetracks; and
       (ii) the process by which a racetrack may achieve and 
     maintain accreditation by the Authority.
       (B) Modifications.--
       (i) In general.--The Authority may modify rules 
     establishing the standards issued under subparagraph (A), as 
     the Authority considers appropriate.
       (ii) Notice and comment.--The Commission shall publish in 
     the Federal Register any proposed rule of the Authority, and 
     provide an opportunity for public comment with respect to, 
     any modification under clause (i) in accordance with section 
     4.
       (C) Extension of provisional or interim accreditation.--The 
     Authority may, by rule in accordance with section 4, extend 
     provisional or interim accreditation to a racetrack 
     accredited by the National Thoroughbred Racing Association 
     Safety and Integrity Alliance on a date before the program 
     effective date.
       (3) Nationwide safety and performance database.--
       (A) In general.--Not later than one year after the program 
     effective date, and after notice and an opportunity for 
     public comment in accordance with section 4, the Authority, 
     in consultation with the Commission, shall develop and 
     maintain a nationwide database of racehorse safety, 
     performance, health, and injury information for the purpose 
     of conducting an epidemiological study.
       (B) Collection of information.--In accordance with the 
     registration of covered persons under section 5(d), the 
     Authority may require covered persons to collect and submit 
     to the database described in subparagraph (A) such 
     information as the Authority may require to further the goal 
     of increased racehorse welfare.

     SEC. 8. RULE VIOLATIONS AND CIVIL SANCTIONS.

       (a) Description of Rule Violations.--
       (1) In general.--The Authority shall issue, by rule in 
     accordance with section 4, a description of safety, 
     performance, and anti-doping and medication control rule 
     violations applicable to covered horses and covered persons.
       (2) Elements.--The description of rule violations 
     established under paragraph (1) may include the following:
       (A) With respect to a covered horse, strict liability for 
     covered trainers for--
       (i) the presence of a prohibited substance or method in a 
     sample or the use of a prohibited substance or method;
       (ii) the presence of a permitted substance in a sample in 
     excess of the amount allowed by the horseracing anti-doping 
     and medication control program; and
       (iii) the use of a permitted method in violation of the 
     applicable limitations established under the horseracing 
     anti-doping and medication control program.
       (B) Attempted use of a prohibited substance or method on a 
     covered horse.
       (C) Possession of any prohibited substance or method.
       (D) Attempted possession of any prohibited substance or 
     method.

[[Page S5520]]

       (E) Administration or attempted administration of any 
     prohibited substance or method on a covered horse.
       (F) Refusal or failure, without compelling justification, 
     to submit a covered horse for sample collection.
       (G) Failure to cooperate with the Authority or an agent of 
     the Authority during any investigation.
       (H) Failure to respond truthfully, to the best of a covered 
     person's knowledge, to a question of the Authority or an 
     agent of the Authority with respect to any matter under the 
     jurisdiction of the Authority.
       (I) Tampering or attempted tampering with the application 
     of the safety, performance, or anti-doping and medication 
     control rules or process adopted by the Authority, 
     including--
       (i) the intentional interference, or an attempt to 
     interfere, with an official or agent of the Authority;
       (ii) the procurement or the provision of fraudulent 
     information to the Authority or agent; and
       (iii) the intimidation of, or an attempt to intimidate, a 
     potential witness.
       (J) Trafficking or attempted trafficking in any prohibited 
     substance or method.
       (K) Assisting, encouraging, aiding, abetting, conspiring, 
     covering up, or any other type of intentional complicity 
     involving a safety, performance, or anti-doping and 
     medication control rule violation or the violation of a 
     period of suspension or eligibility.
       (L) Threatening or seeking to intimidate a person with the 
     intent of discouraging the person from the good faith 
     reporting to the Authority, an agent of the Authority or the 
     Commission, or the anti-doping and medication control 
     enforcement agency under section 5(e), of information that 
     relates to--
       (i) an alleged safety, performance, or anti-doping and 
     medication control rule violation; or
       (ii) alleged noncompliance with a safety, performance, or 
     anti-doping and medication control rule.
       (b) Testing Laboratories.--
       (1) Accreditation and standards.--Not later than 120 days 
     before the program effective date, the Authority shall, in 
     consultation with the anti-doping and medication control 
     enforcement agency, establish, by rule in accordance with 
     section 4--
       (A) standards of accreditation for laboratories involved in 
     testing samples from covered horses;
       (B) the process for achieving and maintaining 
     accreditation; and
       (C) the standards and protocols for testing such samples.
       (2) Administration.--The accreditation of laboratories and 
     the conduct of audits of accredited laboratories to ensure 
     compliance with Authority rules shall be administered by the 
     anti-doping and medication control enforcement agency. The 
     anti-doping and medication control enforcement agency shall 
     have the authority to require specific test samples to be 
     directed to and tested by laboratories having special 
     expertise in the required tests.
       (3) Extension of provisional or interim accreditation.--The 
     Authority may, by rule in accordance with section 4, extend 
     provisional or interim accreditation to a laboratory 
     accredited by the Racing Medication and Testing Consortium, 
     Inc., on a date before the program effective date.
       (4) Selection of laboratories.--
       (A) In general.--Except as provided in paragraph (2), a 
     State racing commission may select a laboratory accredited in 
     accordance with the standards established under paragraph (1) 
     to test samples taken in the applicable State.
       (B) Selection by the authority.--If a State racing 
     commission does not select an accredited laboratory under 
     subparagraph (A), the Authority shall select such a 
     laboratory to test samples taken in the State concerned.
       (c) Results Management and Disciplinary Process.--
       (1) In general.--Not later than 120 days before the program 
     effective date, the Authority shall establish in accordance 
     with section 4--
       (A) rules for safety, performance, and anti-doping and 
     medication control results management; and
       (B) the disciplinary process for safety, performance, and 
     anti-doping and medication control rule violations.
       (2) Elements.--The rules and process established under 
     paragraph (1) shall include the following:
       (A) Provisions for notification of safety, performance, and 
     anti-doping and medication control rule violations.
       (B) Hearing procedures.
       (C) Standards for burden of proof.
       (D) Presumptions.
       (E) Evidentiary rules.
       (F) Appeals.
       (G) Guidelines for confidentiality and public reporting of 
     decisions.
       (3) Due process.--The rules established under paragraph (1) 
     shall provide for adequate due process, including impartial 
     hearing officers or tribunals commensurate with the 
     seriousness of the alleged safety, performance, or anti-
     doping and medication control rule violation and the possible 
     civil sanctions for such violation.
       (d) Civil Sanctions.--
       (1) In general.--The Authority shall establish uniform 
     rules, in accordance with section 4, imposing civil sanctions 
     against covered persons or covered horses for safety, 
     performance, and anti-doping and medication control rule 
     violations.
       (2) Requirements.--The rules established under paragraph 
     (1) shall--
       (A) take into account the unique aspects of horseracing;
       (B) be designed to ensure fair and transparent horseraces; 
     and
       (C) deter safety, performance, and anti-doping and 
     medication control rule violations.
       (3) Severity.--The civil sanctions under paragraph (1) may 
     include--
       (A) lifetime bans from horseracing, disgorgement of purses, 
     monetary fines and penalties, and changes to the order of 
     finish in covered races; and
       (B) with respect to anti-doping and medication control rule 
     violators, an opportunity to reduce the applicable civil 
     sanctions that is comparable to the opportunity provided by 
     the Protocol for Olympic Movement Testing of the United 
     States Anti-Doping Agency.
       (e) Modifications.--The Authority may propose a 
     modification to any rule established under this section as 
     the Authority considers appropriate, and the proposed 
     modification shall be submitted to and considered by the 
     Commission in accordance with section 4.

     SEC. 9. REVIEW OF FINAL DECISIONS OF THE AUTHORITY.

       (a) Notice of Civil Sanctions.-- If the Authority imposes a 
     final civil sanction for a violation committed by a covered 
     person pursuant to the rules or standards of the Authority, 
     the Authority shall promptly submit to the Commission notice 
     of the civil sanction in such form as the Commission may 
     require.
       (b) Review by Administrative Law Judge.--
       (1) In general.--With respect to a final civil sanction 
     imposed by the Authority, on application by the Commission or 
     a person aggrieved by the civil sanction filed not later than 
     30 days after the date on which notice under subsection (a) 
     is submitted, the civil sanction shall be subject to de novo 
     review by an administrative law judge.
       (2) Nature of review.--
       (A) In general.--In matters reviewed under this subsection, 
     the administrative law judge shall determine whether--
       (i) a person has engaged in such acts or practices, or has 
     omitted such acts or practices, as the Authority has found 
     the person to have engaged in or omitted;
       (ii) such acts, practices, or omissions are in violation of 
     this Act or the anti-doping and medication control or 
     racetrack safety rules approved by the Commission; or
       (iii) the final civil sanction of the Authority was 
     arbitrary, capricious, an abuse of discretion, or otherwise 
     not in accordance with law.
       (B) Conduct of hearing.--An administrative law judge shall 
     conduct a hearing under this subsection in such a manner as 
     the Commission may specify by rule, which shall conform to 
     section 556 of title 5, United States Code.
       (3) Decision by administrative law judge.--
       (A) In general.--With respect to a matter reviewed under 
     this subsection, an administrative law judge--
       (i) shall render a decision not later than 60 days after 
     the conclusion of the hearing;
       (ii) may affirm, reverse, modify, set aside, or remand for 
     further proceedings, in whole or in part, the final civil 
     sanction of the Authority; and
       (iii) may make any finding or conclusion that, in the 
     judgment of the administrative law judge, is proper and based 
     on the record.
       (B) Final decision.--A decision under this paragraph shall 
     constitute the decision of the Commission without further 
     proceedings unless a notice or an application for review is 
     timely filed under subsection (c).
       (c) Review by Commission.--
       (1) Notice of review by commission.--The Commission may, on 
     its own motion, review any decision of an administrative law 
     judge issued under subsection (b)(3) by providing written 
     notice to the Authority and any interested party not later 
     than 30 days after the date on which the administrative law 
     judge issues the decision.
       (2) Application for review.--
       (A) In general.--The Authority or a person aggrieved by a 
     decision issued under subsection (b)(3) may petition the 
     Commission for review of such decision by filing an 
     application for review not later than 30 days after the date 
     on which the administrative law judge issues the decision.
       (B) Effect of denial of application for review.--If an 
     application for review under subparagraph (A) is denied, the 
     decision of the administrative law judge shall constitute the 
     decision of the Commission without further proceedings.
       (C) Discretion of commission.--
       (i) In general.--A decision with respect to whether to 
     grant an application for review under subparagraph (A) is 
     subject to the discretion of the Commission.
       (ii) Matters to be considered.--In determining whether to 
     grant such an application for review, the Commission shall 
     consider whether the application makes a reasonable showing 
     that--

       (I) a prejudicial error was committed in the conduct of the 
     proceeding; or
       (II) the decision involved--

       (aa) an erroneous application of the anti-doping and 
     medication control or racetrack safety rules approved by the 
     Commission; or

[[Page S5521]]

       (bb) an exercise of discretion or a decision of law or 
     policy that warrants review by the Commission.
       (3) Nature of review.--
       (A) In general.--In matters reviewed under this subsection, 
     the Commission may--
       (i) affirm, reverse, modify, set aside, or remand for 
     further proceedings, in whole or in part, the decision of the 
     administrative law judge; and
       (ii) make any finding or conclusion that, in the judgement 
     of the Commission, is proper and based on the record.
       (B) De novo review.--The Commission shall review de novo 
     the factual findings and conclusions of law made by the 
     administrative law judge.
       (C) Consideration of additional evidence.--
       (i) Motion by commission.--The Commission may, on its own 
     motion, allow the consideration of additional evidence.
       (ii) Motion by a party.--

       (I) In general.--A party may file a motion to consider 
     additional evidence at any time before the issuance of a 
     decision by the Commission, which shall show, with 
     particularity, that--

       (aa) such additional evidence is material; and
       (bb) there were reasonable grounds for failure to submit 
     the evidence previously.

       (II) Procedure.--The Commission may--

       (aa) accept or hear additional evidence; or
       (bb) remand the proceeding to the administrative law judge 
     for the consideration of additional evidence.
       (d) Stay of Proceedings.--Review by an administrative law 
     judge or the Commission under this section shall not operate 
     as a stay of a final civil sanction of the Authority unless 
     the administrative law judge or Commission orders such a 
     stay.

     SEC. 10. UNFAIR OR DECEPTIVE ACTS OR PRACTICES.

       The sale of a covered horse, or of any other horse in 
     anticipation of its future participation in a covered race, 
     shall be considered an unfair or deceptive act or practice in 
     or affecting commerce under section 5(a) of the Federal Trade 
     Commission Act (15 U.S.C. 45(a)) if the seller--
       (1) knows or has reason to know the horse has been 
     administered--
       (A) a bisphosphonate prior to the horse's fourth birthday; 
     or
       (B) any other substance or method the Authority determines 
     has a long-term degrading effect on the soundness of the 
     covered horse; and
       (2) fails to disclose to the buyer the administration of 
     the bisphosphonate or other substance or method described in 
     paragraph (1)(B).

     SEC. 11. STATE DELEGATION; COOPERATION.

       (a) State Delegation.--
       (1) In general.--The Authority may enter into an agreement 
     with a State racing commission to implement, within the 
     jurisdiction of the State racing commission, a component of 
     the racetrack safety program or, with the concurrence of the 
     anti-doping and medication control enforcement agency under 
     section 5(e), a component of the horseracing anti-doping and 
     medication control program, if the Authority determines that 
     the State racing commission has the ability to implement such 
     component in accordance with the rules, standards, and 
     requirements established by the Authority.
       (2) Implementation by state racing commission.--A State 
     racing commission or other appropriate regulatory body of a 
     State may not implement such a component in a manner less 
     restrictive than the rule, standard, or requirement 
     established by the Authority.
       (b) Cooperation.--To avoid duplication of functions, 
     facilities, and personnel, and to attain closer coordination 
     and greater effectiveness and economy in administration of 
     Federal and State law, where conduct by any person subject to 
     the horseracing medication control program or the racetrack 
     safety program may involve both a medication control or 
     racetrack safety rule violation and violation of Federal or 
     State law, the Authority and Federal or State law enforcement 
     authorities shall cooperate and share information.
                                 ______