Federal horseracing regulators will pursue a review of a Fifth Circuit Court of Appeals decision that concluded the recently passed Horseracing Integrity and Safety Act (HISA) is unconstitutional.
The Fifth Circuit handed down the decision Nov. 18 in a Texas case titled National Horsemen’s Benevolent and Protective Association v. Black. The opinion also dovetails with litigation challenging the act that was filed by Louisiana Attorney General Jeff Landry.
A nonprofit entity, the Horseracing Integrity and Safety Authority, has been empowered to create new safety regulations and anti-doping measures.
During the course of Landry’s lawsuit, Judge Terry Doughty of the Western District of Louisiana barred enforcement of federal racetrack safety rules in Louisiana and West Virginia on the grounds that the authority failed to comply with the federal Administrative Procedures Act. A subsequent Fifth Circuit ruling significantly narrowed Doughty’s opinion, but the latest Fifth Circuit edict in the Texas case seems to have reinstated his injunction.
“While (the authority) is disappointed by the Fifth Circuit’s decision, we remain confident in HISA’s constitutionality and will be seeking further review of this case,” Charles Scheeler, chairman of the authority’s Board of Directors, said in a statement emailed to the Louisiana Record.
Even if the appeals court ruling withstands challenges, it would not take effect until Jan. 10 of next year at the earliest, according to Scheeler.
“We are focused on continuing our critical work to protect the safety and integrity of thoroughbred racing, including the launch of HISA’s Anti-Doping and Medication Control Program on Jan. 1, 2023,” he said.
The Nov. 18 opinion concluded the federal authority is unconstitutional on its face because private entities such as the authority are barred from exercising government power without supervision.
“A cardinal constitutional principle is that federal power can be wielded only by the federal government,” the Fifth Circuit opinion states. “Private entities may do so only if they are subordinate to an agency. … But the authority is not subordinate to the (Federal Trade Commission). The reverse is true.”
Landry’s lawsuit, meanwhile, has been sent back to the federal district court in Louisiana for further proceedings in light of the most recent Fifth Circuit opinion.
“This is a major victory for the rule of law and the horse industry,” Landry said in a prepared statement. “I am proud to deliver this win for the thousands of our neighbors who ply their trade as horse owners, trainers, jockeys and more.”