By Dick Downey
Claims brought in a Texas federal court to stop the Horseracing Integrity and Safety Act from going forward were dismissed on March 31 by U.S. District Judge James Wesley Hendrix.
The lawsuit, filed by the National Horsemen’s Benevolent and Protective Association and joined by affiliated HBPAs, sought to have the court enjoin enforcement of the Act as unconstitutional. The HBPAs argued that HISA gave unlawful regulatory power to a private entity it created, the Horseracing Integrity and Safety Authority.
After finding the HBPAs have standing to bring the case and that an actual controversy exists, Hendrix also found there is no disagreement about the material facts, leading the way to a decision based on the application of law.
Hendrix ruled that HISA meets what he describes as current low thresholds in private delegation cases created by the U.S. Supreme Court and the U.S. Fifth Circuit Court of Appeals, of which Texas is a part. When all was said and done, he wrote HISA is not an unconstitutional private delegation of power in violation of Article I of the Constitution or the Due Process Clause.
“The Jockey Club congratulates the Horseracing Integrity and Safety Authority and its counsel on the Federal Texas District Court’s finding that the Horseracing Integrity and Safety Act of 2020 is indeed constitutional,” said James Gagliano, president and chief operating officer for The Jockey Club. “For those long supporting the passage and implementation of the Act, this is a result we have long anticipated. To HISA Chairman Charlie Scheeler, CEO Lisa Lazarus, and the entire HISA team and its counsel, we express our gratitude for your continued dedication to the cause of equine safety and integrity in our sport. We look forward to HISA beginning the first prong of its programs to enhance our sport on July 1.”
The National HBPA noted in a statement that Hendrix said he cannot “expand or constrict” the precedents, which the horsemen’s group said makes the ruling ripe for appeal.
Hendrix wrote in his decision: “The Horsemen are correct that HISA creates a novel structure that nationalizes regulation of the horse racing industry…. Although the Horsemen make compelling arguments that HISA goes too far, only appellate courts may expand or constrict precedent. This Court cannot.”
“Aspects of this law will have a devastating effect on our industry and put many hardworking horsemen and horsewomen out of business,” said National HBPA CEO Eric Hamelback. “We’ve been saying for several years that this legislation was illegal. We are considering our options to appeal the decision and remain committed to doing due diligence to ensure a legal solution that protects the health and welfare of our equine and human athletes is adopted.”
National HBPA and affiliates in Arizona, Arkansas, Indiana, Illinois, Louisiana, Nebraska, Oklahoma, Oregon, Pennsylvania, Washington, West Virginia, and at Tampa Bay Downs are represented by the Liberty Justice Center, a national nonprofit law firm.
“We are encouraged that Judge Hendrix recognized the strength of our arguments and plan to push them vigorously on appeal,” said Daniel Suhr, managing attorney at the Liberty Justice Center. “Congress cannot cede its legal authority to regulate an entire industry to a private organization. This case remains important to protect the integrity of not only the horse racing industry but also our Constitution.”
A claim brought at the 11th hour in Hendrix’ court by the state of Texas that HISA violates the 10th Amendment to the U.S. Constitution, which reserves power to states not granted to the federal government, remains undecided. That same issue is being litigated in federal court in the Eastern District of Kentucky.
Further reaction:
U.S. Representative Andy Barr, who sponsored HISA legislation
“The Horseracing Integrity and Safety Act was carefully and thoroughly drafted with an eye toward ensuring the Authority it created was constitutional in its structure and powers. Throughout the process, Senator (Mitch) McConnell and I consulted with lawyers and relevant precedent to ensure the statute would survive any constitutional challenge. The fact that the Northern District of Texas has upheld HISA reinforces that due diligence. I look forward to seeing the Authority begin its programming this summer and the further advancement of the sport.”
U.S. Senator Mitch McConnell, who sponsored HISA legislation
“Kentucky’s signature horse racing industry is a key part of our heritage and supports 24,000 workers across the commonwealth. Working closely with sport leaders, horse advocates, and fans, Congressman Barr and I led the Horseracing Integrity and Safety Act of 2020 to passage to promote safety and fairness across Thoroughbred racing, ensuring the sport’s future viability. This legislation’s advocates knew from the beginning that it was fully constitutional, and I am pleased the court agreed with our arguments, which I supported through an amicus brief. I congratulate the Horseracing Integrity and Safety Authority for their recent positive momentum, moving us all closer to a safer, better-regulated American Thoroughbred racing industry.”
Joint statement from Kitty Block, president and CEO of the Humane Society of the U.S.; and Sara Amundson, president of Humane Society Legislative Fund
“The Humane Society of the United States and Humane Society Legislative Fund applaud the decision by the U.S. District Court for the Northern District of Texas, upholding the constitutionality of the Horseracing Integrity and Safety Act. We expect the U.S. District Court for the Eastern District of Kentucky to come to the same conclusion in a separate case before that court.
“We worked with key industry stakeholders to pass the law to protect race horses from illicit drugs that mask pain or enhance their performance, leading to fatal breakdowns. It will also improve conditions on the track that jeopardize the health and welfare of racehorses and their jockeys.
“We congratulate the Horseracing Integrity and Safety Authority, which was created by this law, for stepping up to defend the act in this case. The racetrack safety portion of this act will go into effect on July 1, and with other parties we’re eager to see the Authority select an agency to oversee the crucial drug enforcement element of the law. We urge the organization to move swiftly to negotiate a contract with an anti-doping agency that can fulfill the mandate of Congress to rein in American horse racing’s drug habit. The lives of race horses are at stake, and time is of the essence.”