[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\
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\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.
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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.
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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.
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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]