[House Report 116-554]
[From the U.S. Government Publishing Office]


116th Congress   }                                      {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                      {      116-554

======================================================================



 
              HORSERACING INTEGRITY AND SAFETY ACT OF 2020

                                _______
                                

 September 29, 2020.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Pallone, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1754]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 1754) to improve the integrity and safety of 
horseracing by requiring a uniform anti-doping and medication 
control program to be developed and enforced by an independent 
Horseracing Anti-Doping and Medication Control Authority, 
having considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

                                CONTENTS

                                                                    Page
  I. Purpose and Summary............................................. 17
 II. Background and Need for the Legislation......................... 17
III. Committee Hearings.............................................. 19
 IV. Committee Consideration......................................... 19
  V. Committee Votes................................................. 20
 VI. Oversight Findings.............................................. 23
VII. New Budget Authority, Entitlement Authority, and Tax Expenditure 23
VIII.Federal Mandates Statement...................................... 23

 IX. Statement of General Performance Goals and Objectives........... 23
  X. Duplication of Federal Programs................................. 23
 XI. Committee Cost Estimate......................................... 23
XII. Earmarks, Limited Tax Benefits, and Limited Tariff Benefits..... 23
XIII.Advisory Committee Statement.................................... 24

XIV. Applicability to Legislative Branch............................. 24
 XV. Section-by-Section Analysis of the Legislation.................. 24
XVI. Changes in Existing Law Made by the Bill, as Reported........... 28
 
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

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

SEC. 2. DEFINITIONS.

  In this Act the following definitions apply:
          (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, 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.
          (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.

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, and 
                budgets of the United States Anti-Doping Agency while 
                acting as the anti-doping and medication control 
                enforcement agency under this Act, as well as a 
                provision for the revision of the agreement to increase 
                in the scope of work as provided for 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.--
                  (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 antidoping, 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 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.
                  (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
                                          (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.

                         I. PURPOSE AND SUMMARY

    H.R. 1754, the ``Horseracing Integrity and Safety Act'', 
was introduced on March 14, 2019, by Representatives Paul D. 
Tonko (D-NY) and Andy Barr IV (R-KY) and was referred to the 
Committee on Energy and Commerce. H.R. 1754 would 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.

                II. BACKGROUND AND NEED FOR LEGISLATION

    In 2019, 441 Thoroughbred racehorses suffered fatal 
injuries.\1\ The fatality rate in the United States is two and 
a half to five times greater per race start than the fatality 
rates in Europe and Asia.\2\ Additionally, between 1940 and 
2012, 129 jockeys died in training or racing accidents in the 
United States.\3\ Over half of all jockey falls result in 
injury, and the majority of falls are due to catastrophic 
injury or sudden death of the horse.\4\
---------------------------------------------------------------------------
    \1\The Jockey Club, Supplemental Tables of Equine Injury Database 
Statistics for Thoroughbreds (Mar. 12, 2020) (jockeyclub.com/pdfs/
eid_11_year_tables.pdf).
    \2\Why So Many Horses Have Died at Santa Anita, New York Times 
(June 26, 2019).
    \3\Peta L. Hitchens, et al., Jockey Falls, Injuries, and Fatalities 
Associated with Thoroughbred and Quarter Horse Racing in California, 
2007-2011, Orthopedic Journal of Sports Medicine (Jun. 11, 2019).
    \4\Id.
---------------------------------------------------------------------------
    Many factors contribute to breakdowns, including training 
methods, racing protocols, and racing surfaces. Aggressive 
training schedules can deprive racehorses of the time needed to 
recover from intense physical activity increasing the 
likelihood of injury.\5\ Further, track surfaces that give 
support when a racehorse's hoof lands without jolting the 
horse's leg are considered safe.\6\ Wet or deep surfaces may 
bog down a racehorse's hooves, applying additional pressure to 
their soft tissues and muscles.\7\ Firm surfaces can cause 
percussive injuries to the bone while lose, slick surfaces 
increase pressure on racehorses' tendons and muscles.\8\
---------------------------------------------------------------------------
    \5\The Super-Optimized Dirt that Helps Keep Racehorses Safe, Wired 
(Oct. 30, 2019) (www.wired.com/story/super-optimized-dirt-that-helps-
keep-racehorses-safe/); Why Horse Racing is so Dangerous, National 
Geographic (Jan. 21, 2020) (www.nationalgeographic.com/animals/2019/05/
horse-racing-risks-deaths-sport/).
    \6\Id.
    \7\Id.
    \8\Id.
---------------------------------------------------------------------------
    The use of performance enhancing drugs (PEDs) and certain 
therapeutic medications may also contribute to horseracing 
deaths.\9\ Some therapeutic medications and practices for 
administering those therapeutics even for legitimate purposes 
can also mask minor injuries, making it more difficult to 
detect relatively insignificant ailments that could lead to 
fatal injuries if not treated.\10\ For example, nearly every 
racehorse in the United States is administered phenylbutazone, 
a pain relieving anti-inflammatory.\11\ Yet according to recent 
studies, phenylbutazone may mask chronic, possibly undetected 
underlying damage, injury, or soreness.\12\ Racehorses using 
this drug may train and compete with these injuries undiagnosed 
and untreated.\13\ In addition, PEDs that stimulate endurance, 
deaden nerves, increase oxygen intake, and reduce inflammation 
can also cause significant health problems, including cardiac 
issues and overexertion.\14\
---------------------------------------------------------------------------
    \9\Is Horse Racing `Addicted to Drugs' as Critics Charge? 
Necropsies Reveal Strong Clues, Pasadena Star-News (Apr. 12, 2019).
    \10\Id.
    \11\Should Racehorses Be Medicated?, NPR (June 5, 2019) 
(www.npr.org/2019/06/05/729344390/should-racehorses-be-medicated).
    \12\Study Finds Statistical Relationship Between Pre-Race Bute and 
Injury in South American Runners, Paulick Report (Dec. 3, 2019) 
(www.paulickreport.com/horse-care-category/study-finds-statistical-
relationship-between-pre-race-bute-and-injury-in-south-american-
runners/).
    \13\Id.
    \14\Horse Racing Trainers and Veterinarians Charged in 
International Doping Scandal, NBC News (Mar. 9, 2020) (www.nbcnews.com/
news/us-news/horse-racing-trainers-veterinarians-charged-nationwide-
doping-scandal-n1153126).
---------------------------------------------------------------------------
    Furosemide, a powerful diuretic that is administered to 
treat exercise-induced pulmonary hemorrhaging, is prohibited 
from being administered to horses on race day internationally 
but is widely used on race day in the United States.\15\ 
Although furosemide is not allowed on race day abroad, it is 
administered to horses throughout training.\16\ Rather than 
administer furosemide on race days, other racing jurisdictions 
dehydrate their horses for up to 48 hours before a race.\17\ 
Some argue furosemide is the more humane way to treat 
horses.\18\ Phenylbutazone is prohibited from being 
administered to a horse less than six days before a race in 
international racing jurisdictions, but may be used up to one 
day before a race in the United States.\19\ Banamine, another 
pain suppressor, cannot be administered within five days of an 
international race, but is permitted to be administered 32 
hours before a race in the United States.\20\ Naproxen, a 
medication administered for pain management, must be 
discontinued 15 days before an international race, but can be 
administered up to two days before a race in the United 
States.\21\
---------------------------------------------------------------------------
    \15\The Jockey Club, Vision 2025: To Prosper, Horse Racing Needs 
Comprehensive Reform (Mar. 28, 2019) (jockeyclub.com/pdfs/
vision_2025.pdf).
    \16\Larry Bramlage, Thoroughbred Daily News (June 14, 2017) 
(www.thoroughbreddailynews.com/q-and-a-with-larry-bramlage-shared-
archive/).
    \17\Id.
    \18\Id.
    \19\See note 14.
    \20\Id.
    \21\Id.
---------------------------------------------------------------------------
    The testing regimen in the United States also differs from 
its international counterparts. Less than one percent of 
testing on Thoroughbred racehorses in the United States is 
performed out of competition.\22\ In comparison, approximately 
14 percent of tests conducted by the British Horseracing 
Authority are out of competition, as are 21 percent of tests in 
Australia, 11 percent of tests in France, and 10 percent of 
tests in Hong Kong.\23\ Further, only one lab in the United 
States meets the more rigorous international testing 
standards.\24\
---------------------------------------------------------------------------
    \22\Id.
    \23\Id.
    \24\Id.
---------------------------------------------------------------------------
    Horseracing has no national governing body. Instead, 
horseracing is regulated independently by each of the 38 States 
in which the sport is legal.\25\ Despite attempts to unify 
State rules, differences exist when it comes to the types and 
dosage of medications, approved drug testing, laboratory 
accreditation, sanctions for violations, racetrack safety 
standards, and training and racing protocols.\26\
---------------------------------------------------------------------------
    \25\Drug Reform in U.S. Horse Racing Faces Obstacles, Reuters (Oct. 
30, 2019) (www.reuters.com/article/us-horseracing-legislation/drug-
reform-in-u-s-horse-racing-faces-obstacles-idUSKBN1X9222).
    \26\Id.
---------------------------------------------------------------------------
    H.R. 1754 would recognize the Horseracing Integrity and 
Safety Authority for the purposes of developing and 
implementing a national horseracing anti-doping and medication 
control program and a racetrack safety program.

                        III. COMMITTEE HEARINGS

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress, the following hearing was used to develop or 
consider H.R. 1754:
    The Subcommittee on Consumer Protection and Commerce held a 
legislative hearing on Tuesday, January 28, 2020. The hearing 
was entitled, ``Legislation to Promote the Health and Safety of 
Racehorses.'' The Subcommittee received testimony from the 
following witnesses:
           The Honorable Andy Barr, Congressman, 
        Kentucky's Sixth District;
           Dr. Kathleen M. Anderson, Equine 
        Veterinarian;
           Joseph A. De Francis, Chairman, National 
        Horseracing Advisory Council of the Humane Society of 
        the United States;
           Dennis A. Drazin, Chairman and CEO, Darby 
        Development, Operator of Monmouth Park Racetrack;
           Marty Irby, Executive Director, Animal 
        Wellness Action;
           William M. Lear, Jr., Vice Chairman, The 
        Jockey Club;
           Edward J. Martin, President and CEO, 
        Association of Racing Commissioners International, 
        Inc.; and
           Christopher J. McCarron, Hall of Fame 
        Jockey, Retired.

                      IV. COMMITTEE CONSIDERATION

    H.R. 1754, the ``Horseracing Integrity and Safety Act of 
2019'', was introduced on March 14, 2019, by Representatives 
Tonko (D-NY) and Barr (R-KY) and was referred to the Committee 
on Energy and Commerce. The bill was then referred to the 
Subcommittee on Consumer Protection and Commerce on March 15, 
2019. A legislative hearing was held on January 28, 2020.
    On September 9, 2020, H.R. 1754 was discharged from further 
action by the Subcommittee on Consumer Protection and Commerce 
as the bill was called up for markup by the full Committee on 
Energy and Commerce. The full Committee met in virtual open 
markup session on September 9, 2020, pursuant to notice, to 
consider H.R. 1754. During consideration of the bill, an 
amendment in the nature of a substitute offered by Mr. Tonko 
was agreed to by a roll call vote of 46 yeas to 5 nays (roll 
call no. 60). Mr. Pallone, Chairman of the committee, offered a 
motion to order H.R. 1754 reported favorably to the House, 
amended. The motion on final passage was agreed to by a roll 
call vote of 46 yeas to 5 nays (roll call no. 61), a quorum 
being present.

                           V. COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list each record vote 
on the motion to report legislation and amendments thereto. The 
Committee advises that there were two record votes taken on 
H.R. 1756, including a motion by Mr. Pallone ordering H.R. 1756 
reported favorably to the House, amended. The motion on final 
passage of the bill was approved by a record vote of 46 yeas to 
5 nays. The following are the record votes taken during 
Committee consideration, including the names of those members 
voting for and against:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                         VI. OVERSIGHT FINDINGS

    Pursuant to clause 3(c)(1) of rule XIII and clause 2(b)(1) 
of rule X of the Rules of the House of Representatives, the 
oversight findings and recommendations of the Committee are 
reflected in the descriptive portion of the report.

 VII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    Pursuant to 3(c)(2) of rule XIII of the Rules of the House 
of Representatives, the Committee adopts as its own the 
estimate of new budget authority, entitlement authority, or tax 
expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974.
    The Committee has requested but not received from the 
Director of the Congressional Budget Office a statement as to 
whether this bill contains any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.

                    VIII. FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

       IX. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to improve 
the integrity and safety of horseracing by requiring a uniform 
anti-doping and medication control program and racetrack safety 
program to be developed and enforced by an independent 
Horseracing Integrity and Safety Authority.

                   X. DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 1756 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

                      XI. COMMITTEE COST ESTIMATE

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974.

    XII. EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 1754 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                   XIII. ADVISORY COMMITTEE STATEMENT

    No advisory committee within the meaning of section 5(b) of 
the Federal Advisory Committee Act was created by this 
legislation.

                XIV. APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

           XV. SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title

    Section 1 designates that the short title may be cited as 
the ``Horseracing Integrity and Safety Act of 2020''.

Sec. 2. Definitions

    Section 2 defines multiple terms used throughout the 
legislation, including ``covered horse,'' ``covered 
horserace'', ``covered person'', and ``racetrack'', among 
others.

Sec. 3. Recognition of the Horseracing Integrity and Safety Authority

    Section 3 recognizes the Horseracing Integrity and Safety 
Authority (Authority), which is an independent, self-regulatory 
entity, for the purposes of developing and implementing the 
horseracing anti-doping and medication control program and the 
racetrack safety program for covered horses, covered persons, 
and covered horseraces.
    Subsection (b) requires that the Authority be governed by a 
9-member board of directors (Board), which comprises five 
independent members selected from outside of the equine 
industry and four members representing the various equine 
constituencies. The Board of the Authority shall be chaired by 
an independent member and governed by bylaws for the operation 
of the Authority with respect to the administrative structure 
and employees of the Authority, the establishment of standing 
committees, the procedures for filling vacancies on the Board 
and the standing committees, and term limits for members and 
termination of membership.
    Subsection (c) directs the Authority to establish the anti-
doping and medication control standing committee and the 
racetrack safety standing committee. Each standing committee 
will be made up of seven members, a majority of which will be 
independent members from outside the equine industry, and a 
minority comprising industry members. The standing committees 
will provide advice and guidance to the Board on the 
development of rules and regulations under the Authority's 
jurisdiction.
    Subsection (d) mandates that the initial members of the 
Board and two standing committees shall be selected by a 
nominating committee. The nominating committee shall recommend 
individuals to fill any vacancy on the Board or on the two 
standing committees. Initial membership of the nominating 
committee shall be set forth in the governing corporate 
documents of the Authority, and subsequent vacancies on the 
nominating committee shall be filled pursuant to rules 
established by the Authority.
    Subsection (e) requires that all members of the Board and 
independent members of the nominating and standing committees 
be subject to certain conflict of interest standards, including 
prohibitions on having a financial interest in covered horses 
or serving in a governance capacity for an equine industry 
representative.
    Subsection (f) establishes a funding mechanism for the 
Authority. The Authority, with the approval of the Board, is 
authorized to take out loans to meet its initial funding needs. 
Each year, the Authority shall determine and provide to each 
State racing commission the estimated amount required from the 
State to fund the horseracing anti-doping and medication 
control program and the racetrack safety program and liquidate 
the State's share of any loan or funding shortfall. State 
racing commissions are permitted to remit fees to fund their 
proportionate share of anti-doping and medication control 
program and the racetrack safety program. If a State racing 
commission elects to not remit fees, the Authority is required 
to equitably allocate fees among covered persons involved with 
covered horseraces in the State.

Sec. 4. Federal Trade Commission oversight.

    Section 4 directs the Authority to submit to the Federal 
Trade Commission (Commission) any proposed rule or proposed 
modification to a rule relating to several matters, including 
the bylaws of the Authority; the list of permitted and 
prohibited medications, substances, and methods; and standards 
for racing surface quality maintenance. The Authority is also 
required to 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 and 
the racetrack safety program. The Commission is required to 
publish each proposed rule, modification of a rule, standard, 
and procedure developed by the Authority in the Federal 
Register and provide for an opportunity for public comment. A 
proposed rule or proposed modification to a rule cannot take 
effect unless approved by the Commission. The Commission is 
authorized to grant such approval if the proposed rule or 
modification of a rule is consistent with the requirements in 
this legislation and any applicable rules approved by the 
Commission. The Commission is granted the authority to 
prescribe rules and interim final rules to carry out their 
responsibilities under this section using the rulemaking 
process under the Administrative Procedure Act.

Sec. 5. Jurisdiction of the Commission and the Horseracing Integrity 
        and Safety Authority

    Subsections (a) and (b) grant the Authority exclusive 
jurisdiction over anti-doping and medication control and 
racetrack safety protocols for covered horses, covered persons, 
and covered horseraces, and preempts State laws or regulations 
with respect to matters within the jurisdiction of the 
Authority. Subsection (b) also clarifies that the legislation 
shall not be construed to modify State or local law for matters 
unrelated to antidoping, medication control, and racetrack and 
racing safety.
    Subsection (c) establishes the duties of the Authority, 
including developing uniform procedures and rules with respect 
to investigations and enforcement of violations.
    Subsection (d) requires all covered persons to register 
with the Authority as a condition of participating in covered 
horseraces or in the care, ownership, treatment, or training of 
covered horses. Registration with the Authority shall include 
an agreement by the covered person to be subject to rules 
approved by the Authority.
    Subsection (e)(1) establishes the anti-doping and 
medication control enforcement agency. The anti-doping and 
medication control enforcement agency is charged with serving 
as an independent organization responsible for implementing and 
enforcing the anti-doping and medication control program, and 
other related matters, on behalf of the Authority. The 
Authority shall seek to enter into an agreement with the U.S. 
Anti-Doping Agency (USADA) to serve as the anti-doping and 
medication control enforcement agency for the initial 5 years 
of the program, which may be extended. Subsequently, or if an 
agreement cannot be reached with USADA, the Authority may 
contract with a different nationally recognized anti-doping 
entity.
    Subsection (e)(2) permits the Authority to contract with 
State racing commissions for services consistent with the 
enforcement of the racetrack safety program. In addition, the 
anti-doping and medication control enforcement agency is 
authorized to contract with State racing commissions for 
services consistent with the enforcement of the anti-doping and 
medication control program.
    Subsection (f) establishes procedures for developing rules 
for anti-doping and medication control and racetrack safety. 
Subsections (g), (h), and (i) grant the Authority subpoena and 
investigatory authority for matters under its jurisdiction and 
directs the Authority to develop a list of civil penalties and 
actions for the enforcement of rules and regulations under its 
authority. Subsection (j) clarifies that the jurisdiction of 
the Authority is prospective only.
    Subsection (k) permits State racing commissions and breed 
governing organizations for a breed of horses other than 
Thoroughbred horses to opt-in to coverage under the Horseracing 
Integrity and Safety Authority.

Sec. 6. Horseracing Anti-Doping and Medication Control Program

    Section 6 requires the Authority to develop an anti-doping 
and medication control program applicable to all covered 
horses, covered persons, and covered horseraces. This section 
establishes baseline anti-doping and medication control rules, 
which the Authority may modify or replace as long as the rules 
are not less stringent than the existing standards. This 
section prohibits the administration of any medication to a 
covered horse during the 48-hour period proceeding that horse's 
next racing start. For the three-year period beginning on the 
program effective date, a State racing commission may request 
an exemption from the prohibition on the administration of 
furosemide to covered horses 48 hours before a race start as 
long as the horse is not two-years-old or competing in a stakes 
race. During that three-year period, the Authority is required 
to convene an advisory committee to conduct a study on the use 
of furosemide on horses during the 48-hour-period before the 
start of a race. Following the study, the Authority may choose 
to permit, by unanimous vote of the Board, the administration 
of furosemide within the 48-hour-period leading up to covered 
races beyond the initial three-year exemption period.

Sec. 7. Racetrack safety program

    Section 7 requires the Authority, in consultation with the 
racetrack safety standing committee, to establish a racetrack 
safety program to develop, implement, and enforce standards and 
protocols for racetracks, racing, and training. The Authority 
is also directed to develop and maintain a nationwide database 
of racehorse safety, performance, health, and injury 
information.

Sec. 8. Rule violations and civil sanctions

    Section 8 mandates that the Authority develop a description 
of safety, performance, and anti-doping and medication control 
rule violations. The Authority must also establish uniform 
rules for the disciplinary process for covered persons or 
covered horses in violation of safety, performance, and anti-
doping and medication control rules. Such rules must include 
provisions for notification of violation, hearing procedures, 
standards for burden of proof, presumptions, evidentiary rules, 
appeals, and guidelines for confidentiality. The Authority is 
required to establish rules for the imposition of civil 
sanctions for safety, performance, and anti-doping and 
medication control rule violations. Further, the Authority is 
directed to establish standards of accreditation for 
laboratories as well as standards and protocols for testing 
samples collected under the anti-doping and medication control 
program.

Sec. 9. Review of final decisions of the Authority

    Section 9 requires the Authority to submit notice of civil 
sanctions to the Commission. The Commission or a person 
aggrieved by the civil sanction may request that an 
administrative law judge review the civil sanction imposed by 
the Authority. An administrative law judge may affirm, reverse, 
modify, set aside, or remand for further proceedings, in whole 
or in part, the civil sanction of the Authority. Any decision 
rendered by the administrative law judge may be reviewed by the 
Commission, which may also affirm, reverse, modify, set aside, 
or remand for further proceedings, in whole or in part, the 
decision of the administrative law judge.

Sec. 10. Unfair or deceptive acts or practices

    Section 10 makes it an unfair or deceptive act or practice 
under section 5(a) of the Federal Trade Commission Act for a 
seller of a covered horse to fail to disclose to a buyer that 
the horse has been administered a bisphosphonate prior to the 
horse's fourth birthday or any other substances or methods that 
the Authority determines has a long-term degrading effect on 
the soundness of the covered horse.

Sec. 11. State delegation; Cooperation

    Section 11 permits the Authority to enter into an agreement 
with a State racing commission to implement a component of the 
racetrack safety program and, with the concurrence of the anti-
doping and medication control enforcement agency, a component 
of the horseracing anti-doping and medication control program.

       XVI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    There were no changes to existing law made by H.R. 1754, as 
reported.

                                  [all]