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.
The Authority shall be governed by a board of directors (in this section referred to as the "Board") comprised of nine members as follows:
Five members of the Board shall be independent members selected from outside the equine industry.
Four members of the Board shall be industry members selected from among the various 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.
The chair of the Board shall be an independent member described in paragraph (1)(A).
The Board of the Authority shall be governed by bylaws for the operation of the Authority with respect to-
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.
The anti-doping and medication control standing committee shall be comprised of seven members as follows:
A majority of the members shall be independent members selected from outside the equine industry.
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.
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.
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).
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.
The racetrack safety standing committee shall be comprised of seven members as follows:
A majority of the members shall be independent members selected from outside the equine industry.
A minority of the members shall be industry members selected to represent the various equine constituencies.
The chair of the racetrack safety standing committee shall be an industry member of the Board described in subsection (b)(1)(B).
The nominating committee of the Authority shall be comprised of seven independent members selected from business, sports, and academia.
The initial nominating committee members shall be set forth in the governing corporate documents of the Authority.
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.
The chair of the nominating committee shall be selected by the nominating committee from among the members of the nominating committee.
The nominating committee shall select the initial members of the Board and the standing committees described in subsection (c).
The nominating committee shall recommend individuals to fill any vacancy on the Board or on such standing committees.
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:
Initial funding to establish the Authority and underwrite its operations before the program effective date shall be provided by loans obtained by the Authority.
The Authority may borrow funds toward the funding of its operations.
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-
The amounts calculated under clause (i) shall-
The initial budget of the Authority shall require the approval of 2/3 of the Board.
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.
A proposed increase in the amount required under this subparagraph shall be reported to the Commission.
The Commission shall publish in the Federal Register such a proposed increase and provide an opportunity for public comment.
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.
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.
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.
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.
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.
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.
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.
Covered persons described in subparagraph (B) shall be required to remit such fees to the Authority.
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.
Fees and fines imposed by the Authority shall be allocated toward funding of the Authority and its activities.
Nothing in this chapter shall be construed to require-
For all items where Board approval is required, the Authority shall have present a majority of independent members.
15 U.S.C. § 3052
EDITORIAL NOTES
REFERENCES IN TEXTThis chapter, referred to in subsec. (f)(5), was in the original "this Act" and was translated as reading "this title", meaning title XII of div. FF of Pub. L. 116-260 to reflect the probable intent of Congress.
- Authority
- The term "Authority" means the Horseracing Integrity and Safety Authority designated by section 3052(a) of this title.
- Commission
- The term "Commission" means the Federal Trade Commission.
- 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.
- 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.
- equine constituencies
- The term "equine constituencies" means, collectively, owners, breeders, trainers, racetracks, veterinarians, State racing commissions, and jockeys who are engaged in the care, training, or racing of covered horses.
- 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, breeders, trainers, racetracks, veterinarians, State racing commissions, and jockeys.
- 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 3055(a) of this title.
- program effective date
- The term "program effective date" means July 1, 2022.
- racetrack safety program
- The term "racetrack safety program" means the program established under section 3056(a) of this title.
- racetrack
- The term "racetrack" means an organization licensed by a State racing commission to conduct covered horseraces.