Horseracing Integrity and Safety Act of 2020

II 116TH CONGRESS 2D SESSION H. R. 1754 IN THE SENATE OF THE UNITED STATES SEPTEMBER 30 (legislative day, SEPTEMBER 29), 2020 Received AN ACT To improve the integrity and safety of horseracing by requir- ing a uniform anti-doping and medication control pro- gram to be developed and enforced by an independent Horseracing Anti-Doping and Medication Control Au- thority. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 23:36 Jan 04, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1754.RDS H1754 kjohnson on DSK79L0C42PROD with BILLS 2 HR 1754 RDS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Horseracing Integrity 2 and Safety Act of 2020’’. 3 SEC. 2. DEFINITIONS. 4 In this Act the following definitions apply: 5 (1) AUTHORITY.—The term ‘‘Authority’’ means 6 the Horseracing Integrity and Safety Authority des- 7 ignated by section 3(a). 8 (2) BREEDER.—The term ‘‘breeder’’ means a 9 person who is in the business of breeding covered 10 horses. 11 (3) COMMISSION.—The term ‘‘Commission’’ 12 means the Federal Trade Commission. 13 (4) COVERED HORSE.—The term ‘‘covered 14 horse’’ means any Thoroughbred horse, or any other 15 horse made subject to this Act by election of the ap- 16 plicable State racing commission or the breed gov- 17 erning organization for such horse under section 18 5(k), during the period— 19 (A) beginning on the date of the horse’s 20 first timed and reported workout at a racetrack 21 that participates in covered horseraces or at a 22 training facility; and 23 (B) ending on the date on which the Au- 24 thority receives written notice that the horse 25 has been retired. 26 VerDate Sep 11 2014 23:36 Jan 04, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1754.RDS H1754 kjohnson on DSK79L0C42PROD with BILLS 3 HR 1754 RDS (5) COVERED HORSERACE.—The term ‘‘covered 1 horserace’’ means any horserace involving covered 2 horses that has a substantial relation to interstate 3 commerce, including any Thoroughbred horserace 4 that is the subject of interstate off-track or advance 5 deposit wagers. 6 (6) COVERED PERSONS.—The term ‘‘covered 7 persons’’ means all trainers, owners, breeders, jock- 8 eys, racetracks, veterinarians, persons (legal and 9 natural) licensed by a State racing commission and 10 the agents, assigns, and employees of such persons 11 and other horse support personnel who are engaged 12 in the care, training, or racing of covered horses. 13 (7) EQUINE CONSTITUENCIES.—The term 14 ‘‘equine constituencies’’ means, collectively, owners, 15 breeders, trainers, racetracks, veterinarians, State 16 racing commissions, and jockeys who are engaged in 17 the care, training, or racing of covered horses. 18 (8) EQUINE INDUSTRY REPRESENTATIVE.—The 19 term ‘‘equine industry representative’’ means an or- 20 ganization regularly and significantly engaged in the 21 equine industry, including organizations that rep- 22 resent the interests of, and whose membership con- 23 sists of, owners, breeders, trainers, racetracks, vet- 24 erinarians, State racing commissions, and jockeys. 25 VerDate Sep 11 2014 23:36 Jan 04, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1754.RDS H1754 kjohnson on DSK79L0C42PROD with BILLS 4 HR 1754 RDS (9) HORSERACING ANTI-DOPING AND MEDICA- 1 TION CONTROL PROGRAM.—The term ‘‘horseracing 2 anti-doping and medication control program’’ means 3 the anti-doping and medication program established 4 under section 6(a). 5 (10) IMMEDIATE FAMILY MEMBER.—The term 6 ‘‘immediate family member’’ shall include a spouse, 7 domestic partner, mother, father, aunt, uncle, sib- 8 ling, or child. 9 (11) INTERSTATE OFF-TRACK WAGER.—The 10 term ‘‘interstate off-track wager’’ has the meaning 11 given such term in section 3 of the Interstate Horse- 12 racing Act of 1978 (15 U.S.C. 3002). 13 (12) JOCKEY.—The term ‘‘jockey’’ means a 14 rider or driver of a covered horse in covered 15 horseraces. 16 (13) OWNER.—The term ‘‘owner’’ means a per- 17 son who holds an ownership interest in one or more 18 covered horses. 19 (14) PROGRAM EFFECTIVE DATE.—The term 20 ‘‘program effective date’’ means July 1, 2022. 21 (15) RACETRACK.—The term ‘‘racetrack’’ 22 means an organization licensed by a State racing 23 commission to conduct covered horseraces. 24 VerDate Sep 11 2014 23:36 Jan 04, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1754.RDS H1754 kjohnson on DSK79L0C42PROD with BILLS 5 HR 1754 RDS (16) RACETRACK SAFETY PROGRAM.—The term 1 ‘‘racetrack safety program’’ means the program es- 2 tablished under section 7(a). 3 (17) STAKES RACE.—The term ‘‘stakes race’’ 4 means any race so designated by the racetrack at 5 which such race is run, including, without limitation, 6 the races comprising the Breeders’ Cup World 7 Championships and the races designated as graded 8 stakes by the American Graded Stakes Committee of 9 the Thoroughbred Owners and Breeders Association. 10 (18) STATE RACING COMMISSION.—The term 11 ‘‘State racing commission’’ means an entity des- 12 ignated by State law or regulation that has jurisdic- 13 tion over the conduct of horseracing within the ap- 14 plicable State. 15 (19) TRAINER.—The term ‘‘trainer’’ means an 16 individual engaged in the training of covered horses. 17 (20) TRAINING FACILITY.—The term ‘‘training 18 facility’’ means a location that is not a racetrack li- 19 censed by a State racing commission that operates 20 primarily to house covered horses and conduct offi- 21 cial timed workouts. 22 (21) VETERINARIAN.—The term ‘‘veterinarian’’ 23 means a licensed veterinarian who provides veteri- 24 nary services to covered horses. 25 VerDate Sep 11 2014 23:36 Jan 04, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1754.RDS H1754 kjohnson on DSK79L0C42PROD with BILLS 6 HR 1754 RDS (22) WORKOUT.—The term ‘‘workout’’ means a 1 timed running of a horse over a predetermined dis- 2 tance not associated with a race or its first quali- 3 fying race, if such race is made subject to this Act 4 by election under section 5(k) of the horse’s breed 5 governing organization or the applicable State racing 6 commission. 7 SEC. 3. RECOGNITION OF THE HORSERACING INTEGRITY 8 AND SAFETY AUTHORITY. 9 (a) IN GENERAL.—The private, independent, self- 10 regulatory, nonprofit corporation, to be known as the 11 ‘‘Horseracing Integrity and Safety Authority’’, is recog- 12 nized for purposes of developing and implementing a 13 horseracing anti-doping and medication control program 14 and a racetrack safety program for covered horses, cov- 15 ered persons, and covered horseraces. 16 (b) BOARD OF DIRECTORS.— 17 (1) MEMBERSHIP.—The Authority shall be gov- 18 erned by a board of directors (in this section re- 19 ferred to as the ‘‘Board’’) comprised of nine mem- 20 bers as follows: 21 (A) INDEPENDENT MEMBERS.—Five mem- 22 bers of the Board shall be independent mem- 23 bers selected from outside the equine industry. 24 (B) INDUSTRY MEMBERS.— 25 VerDate Sep 11 2014 23:36 Jan 04, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1754.RDS H1754 kjohnson on DSK79L0C42PROD with BILLS 7 HR 1754 RDS (i) IN GENERAL.—Four members of 1 the Board shall be industry members se- 2 lected from among the various equine con- 3 stituencies. 4 (ii) REPRESENTATION OF EQUINE 5 CONSTITUENCIES.—The industry members 6 shall be representative of the various 7 equine constituencies, and shall include not 8 more than one industry member from any 9 one equine constituency. 10 (2) CHAIR.—The chair of the Board shall be an 11 independent member described in paragraph (1)(A). 12 (3) BYLAWS.—The Board of the Authority shall 13 be governed by bylaws for the operation of the Au- 14 thority with respect to— 15 (A) the administrative structure and em- 16 ployees of the Authority; 17 (B) the establishment of standing commit- 18 tees; 19 (C) the procedures for filling vacancies on 20 the Board and the standing committees; 21 (D) term limits for members and termi- 22 nation of membership; and 23 (E) any other matter the Board considers 24 necessary. 25 VerDate Sep 11 2014 23:36 Jan 04, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1754.RDS H1754 kjohnson on DSK79L0C42PROD with BILLS 8 HR 1754 RDS (c) STANDING COMMITTEES.— 1 (1) ANTI-DOPING AND MEDICATION CONTROL 2 STANDING COMMITTEE.— 3 (A) IN GENERAL.—The Authority shall es- 4 tablish an anti-doping and medication control 5 standing committee, which shall provide advice 6 and guidance to the Board on the development 7 and maintenance of the horseracing anti-doping 8 and medication control program. 9 (B) MEMBERSHIP.—The anti-doping and 10 medication control standing committee shall be 11 comprised of seven members as follows: 12 (i) INDEPENDENT MEMBERS.—A ma- 13 jority of the members shall be independent 14 members selected from outside the equine 15 industry. 16 (ii) INDUSTRY MEMBERS.—A minority 17 of the members shall be industry members 18 selected to represent the various equine 19 constituencies, and shall include not more 20 than one industry member from any one 21 equine constituency. 22 (iii) QUALIFICATION.—A majority of 23 individuals selected to serve on the anti- 24 doping and medication control standing 25 VerDate Sep 11 2014 23:36 Jan 04, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1754.RDS H1754 kjohnson on DSK79L0C42PROD with BILLS 9 HR 1754 RDS committee shall have significant, recent ex- 1 perience in anti-doping and medication 2 control rules. 3 (C) CHAIR.—The chair of the anti-doping 4 and medication control standing committee 5 shall be an independent member of the Board 6 described in subsection (b)(1)(A). 7 (2) RACETRACK SAFETY STANDING COM- 8 MITTEE.— 9 (A) IN GENERAL.—The Authority shall es- 10 tablish a racetrack safety standing committee, 11 which shall provide advice and guidance to the 12 Board on the development and maintenance of 13 the racetrack safety program. 14 (B) MEMBERSHIP.—The racetrack safety 15 standing committee shall be comprised of seven 16 members as follows: 17 (i) INDEPENDENT MEMBERS.—A ma- 18 jority of the members shall be independent 19 members selected from outside the equine 20 industry. 21 (ii) INDUSTRY MEMBERS.—A minority 22 of the members shall be industry members 23 selected to represent the various equine 24 constituencies. 25 VerDate Sep 11 2014 23:36 Jan 04, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1754.RDS H1754 kjohnson on DSK79L0C42PROD with BILLS 10 HR 1754 RDS (C) CHAIR.—The chair of the racetrack 1 safety standing committee shall be an industry 2 member of the Board described in subsection 3 (b)(1)(B). 4 (d) NOMINATING COMMITTEE.— 5 (1) MEMBERSHIP.— 6 (A) IN GENERAL.—The nominating com- 7 mittee of the Authority shall be comprised of 8 seven independent members selected from busi- 9 ness, sports, and academia. 10 (B) INITIAL MEMBERSHIP.—The initial 11 nominating committee members shall be set 12 forth in the governing corporate documents of 13 the Authority. 14 (C) VACANCIES.—After the initial com- 15 mittee members are appointed in accordance 16 with subparagraph (B), vacancies shall be filled 17 by the Board pursuant to rules established by 18 the Authority. 19 (2) CHAIR.—The chair of the nominating com- 20 mittee shall be selected by the nominating committee 21 from among the members of the nominating com- 22 mittee. 23 (3) SELECTION OF MEMBERS OF THE BOARD 24 AND STANDING COMMITTEES.— 25 VerDate Sep 11 2014 23:36 Jan 04, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1754.RDS H1754 kjohnson on DSK79L0C42PROD with BILLS 11 HR 1754 RDS (A) INITIAL MEMBERS.—The nominating 1 committee shall select the initial members of 2 the Board and the standing committees de- 3 scribed in subsection (c). 4 (B) SUBSEQUENT MEMBERS.— The nomi- 5 nating committee shall recommend individuals 6 to fill any vacancy on the Board or on such 7 standing committees. 8 (e) CONFLICTS OF INTEREST.—To avoid conflicts of 9 interest, the following individuals may not be selected as 10 a member of the Board or as an independent member of 11 a nominating or standing committee under this section: 12 (1) An individual who has a financial interest 13 in, or provides goods or services to, covered horses. 14 (2) An official or officer— 15 (A) of an equine industry representative; 16 or 17 (B) who serves in a governance or policy- 18 making capacity for an equine industry rep- 19 resentative. 20 (3) An employee of, or an individual who has a 21 business or commercial relationship with, an indi- 22 vidual described in paragraph (1) or (2). 23 (4) An immediate family member of an indi- 24 vidual described in paragraph (1) or (2). 25 VerDate Sep 11 2014 23:36 Jan 04, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1754.RDS H1754 kjohnson on DSK79L0C42PROD with BILLS 12 HR 1754 RDS (f) FUNDING.— 1 (1) INITIAL FUNDING.— 2 (A) IN GENERAL.—Initial funding to es- 3 tablish the Authority and underwrite its oper- 4 ations before the program effective date shall be 5 provided by loans obtained by the Authority. 6 (B) BORROWING.—The Authority may bor- 7 row funds toward the funding of its operations. 8 (C) ANNUAL CALCULATION OF AMOUNTS 9 REQUIRED.— 10 (i) IN GENERAL.—Not later than the 11 date that is 90 days before the program ef- 12 fective date, and not later than November 13 1 each year thereafter, the Authority shall 14 determine and provide to each State racing 15 commission the estimated amount required 16 from the State— 17 (I) to fund the State’s propor- 18 tionate share of the horseracing anti- 19 doping and medication control pro- 20 gram and the racetrack safety pro- 21 gram for the next calendar year; and 22 (II) to liquidate the State’s pro- 23 portionate share of any loan or fund- 24 VerDate Sep 11 2014 23:36 Jan 04, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H1754.RDS H1754 kjohnson on DSK79L0C42PROD with BILLS 13 HR 1754 RDS ing shortfall in the current calendar 1 year and any previous calendar year. 2 (ii) BASIS OF CALCULATION.—The 3 amounts calculated under clause (i) shall— 4 (I) be based on— 5 (aa) the annual budget of 6 the Authority for the following 7 calendar year, as approved by the 8 Board; and 9 (bb) the projected amount of 10 covered racing starts for the year 11 in each State; and 12 (II) take into account other 13 sources of Authority revenue. 14 (iii) REQUIREMENTS REGARDING 15 BUDGETS OF AUTHORITY.— 16 (I) INITIAL BUDGET.—The initial 17 budget of the Authority shall require 18 the approval of 2⁄3 of the Board. 19 (II) SUBSEQUENT BUDGETS.— 20 Any subsequent budget that exceeds 21 the budget of the precedi [Text truncated for display. Full text available on Congress.gov.]