68610 Federal Register / Vol. 88, No. 191 / Wednesday, October 4, 2023 / Notices 

1Codified at 15 U.S.C. 3051 through 3060. 

2Public Law 116–260, 134 Stat. 1182, 3252 (Dec. 

27, 2020). 3Public Law 117–328, 136 Stat. 4459, 5231 (Dec. 

29, 2022). 4 88 FR 18034 (Mar. 23, 2023); see 16 CFR 1.150 

through 1.152. 

2. Richard K. Thompson, Sterling 

Heights, Michigan; Thomas J. Hinsberg, 

Rochester, Michigan; Robert A. 

Clemente, West Bloomfield, Michigan; 

Richard K. Thompson Irrevocable Trust 

2022, Troy, Michigan, Thomas J. 

Hinsberg, Rochester, Michigan, as 

trustee; OJT Irrevocable Trust, Troy, 

Michigan, Robert A. Clemente, West 

Bloomfield, Michigan, as trustee; as a 

group acting in concert, to retain voting 

shares of Oxford Bank Corporation and 

thereby indirectly retain voting shares of 

Oxford Bank, both of Oxford, Michigan. 

Board of Governors of the Federal Reserve 

System. 

Erin Cayce, 

Assistant Secretary of the Board. 

[FR Doc. 2023–22091 Filed 10–3–23; 8:45 am] 

BILLING CODE P 

FEDERAL TRADE COMMISSION 

[File No. P222100] 

HISA Proposed Budget 

AGENCY: Federal Trade Commission. 

ACTION: Notice of publication of 

Horseracing Integrity and Safety 

Authority 2023 proposed budget; 

request for public comment. 

SUMMARY: The Federal Trade 

Commission (‘‘FTC’’ or ‘‘Commission’’) 

publishes the 2023 proposed budget of 

the Horseracing Integrity and Safety 

Authority and seeks public comment on 

whether the Commission should 

approve, disapprove, or modify the 

proposed budget. 

DATES: Comments must be filed on or 

before October 18, 2023. 

ADDRESSES: Interested parties may file a 

comment online or on paper by 

following the instructions in the 

Request for Comment part of the 

SUPPLEMENTARY INFORMATION section. 

Write ‘‘HISA 2023 Budget, Matter No. 

P222100’’ on your comment and file it 

online at https://www.regulations.gov by 

following the instructions on the webbased form. If you prefer to file your 

comment on paper, mail your comment 

to the following address: Federal Trade 

Commission, Office of the Secretary, 

600 Pennsylvania Avenue NW, Suite 

CC–5610 (Annex H), Washington, DC 

20580. 

FOR FURTHER INFORMATION CONTACT: John 

H. Seesel (202–326–2702), Associate 

General Counsel, Office of the General 

Counsel, Federal Trade Commission, 

600 Pennsylvania Avenue NW, 

Washington, DC 20580. 

SUPPLEMENTARY INFORMATION: The 

Horseracing Integrity and Safety Act,1

enacted on December 27, 2020,2 and 

amended on December 29, 2022,3

directs the Federal Trade Commission to 

oversee the activities of a private, selfregulatory organization called the 

Horseracing Integrity and Safety 

Authority (‘‘HISA’’ or the ‘‘Authority’’). 

In March 2023, the Commission issued 

rules setting forth the procedure 

whereby the Commission approves, 

disapproves, or modifies the Authority’s 

proposed annual budget.4 Under these 

rules, the Authority must first publish a 

proposed budget on its own website and 

invite public comments. See FTC Rule 

1.150(b). Thereafter, the Authority must 

forward the budget to the Commission, 

along with any public comments 

received and an assessment of those 

comments. Id. The Authority’s 

submission must include (a) a statement 

of the vote by the Authority’s Board of 

Directors approving the proposed 

budget; (b) information about revenues, 

including how fees are calculated and 

apportioned; (c) information about 

expenditures, broken down by program 

area, e.g., the racetrack safety program, 

the anti-doping and medication control 

program, etc.; (d) sufficient information 

about individual line items for the 

Authority’s Board of Directors to 

exercise their fiduciary duty of care; and 

(e) information comparing actual 

revenues and expenses against the 

approved budget and explaining 

variances of greater than 10 percent. 

Rule 1.150(c). 

After the Authority submits its 

proposed budget and supporting 

materials to the Commission, the 

Commission must determine whether 

‘‘the proposed budget contains 

sufficient information for the members 

of the Board of Directors of the 

Authority to exercise their fiduciary 

duty of care,’’ Rule 1.150(d), and 

whether the submission otherwise 

comports with the submission 

requirements of the Commission’s rules. 

Id.; see Rule 1.143. Once the 

Commission makes that determination, 

it publishes the Authority’s proposed 

budget in the Federal Register and 

invites public comment for a period of 

14 days. Id. After taking into 

consideration the comments submitted, 

the Commission either approves or 

disapproves the budget. Rule 1.151(a). 

The Commission will approve the 

proposed budget if ‘‘the Commission 

determines that, on balance, the 

proposed budget serves the goals of the 

Horseracing Integrity and Safety Act in 

a prudent and cost-effective manner, 

utilizing commercially reasonable terms 

with all outside vendors, and that its 

anticipated revenues are sufficient to 

meet its anticipated expenditures.’’ Rule 

1.151(c). The Commission may also 

modify the amount of any line item. 

Rule 1.151(d). 

In October 2022—prior to the effective 

date of the budget rule—the Authority 

forwarded to the Commission a 

summary of the Authority’s 2023 

budget. In December 2022, the 

Authority forwarded to the Commission 

a revised summary 2023 budget. In June 

2023, after the budget rule became 

effective, the Authority submitted to the 

FTC a ‘‘Supplemental Notice of Filing of 

HISA Budget,’’ which included all the 

information the Authority must provide 

to the Commission under Rule 1.150(c). 

The Supplemental Notice of Filing of 

HISA Budget is reproduced below. The 

appendices to which it refers have been 

collected and reproduced as a 

supporting document on the docket for 

this publication at https://

www.regulations.gov. 

Based upon these submissions and 

additional information the Authority 

has provided to the Commission, the 

Commission concludes the Authority’s 

proposed 2023 budget ‘‘contains 

sufficient information for the members 

of the Board of Directors of the 

Authority to exercise their fiduciary 

duty of care.’’ Rule 1.150(d). The 

Authority’s submission also complies 

with the filing procedures set forth in 

Rule 1.143. The Commission therefore 

issues this document and invites 

comments from the public on the 

Authority’s 2023 budget. Comments 

should address the decisional criteria 

set forth in Rule 1.151(c) and whether 

any line items should be modified. See 

Rule 1.151(e). 

You can file a comment online or on 

paper. For the Commission to consider 

your comment, we must receive it on or 

before October 18, 2023. Write ‘‘HISA 

2023 Budget, Matter No. P222100’’ on 

your comment. Your comment— 

including your name and your state— 

will be placed on the public record of 

this proceeding, including the https://

www.regulations.gov website. 

Postal mail addressed to the 

Commission is subject to delay due to 

heightened security screening. As a 

result, we strongly encourage you to 

submit your comments online. To make 

sure the Commission considers your 

online comment, you must file it at 

https://www.regulations.gov, by 


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5 15 U.S.C. 3051 through 3060. 

6The original 2023 budget was filed with the 

Commission on October 3, 2022. 

7 16 CFR part 1, subpart U. 

following the instructions on the webbased form. 

If you file your comment on paper, 

write ‘‘HISA 2023 Budget, Matter No. 

P222100’’ on your comment and on the 

envelope, and mail your comment to the 

following address: Federal Trade 

Commission, Office of the Secretary, 

600 Pennsylvania Avenue NW, Suite 

CC–5610 (Annex H), Washington, DC 

20580. If possible, please submit your 

paper comment to the Commission by 

overnight service. 

Because your comment will be placed 

on the publicly accessible website at 

https://www.regulations.gov, you are 

solely responsible for making sure your 

comment does not include any sensitive 

or confidential information. In 

particular, your comment should not 

include any sensitive personal 

information, such as your or anyone 

else’s Social Security number; date of 

birth; driver’s license number or other 

state identification number, or foreign 

country equivalent; passport number; 

financial account number; or credit or 

debit card number. You are also solely 

responsible for making sure your 

comment does not include any sensitive 

health information, such as medical 

records or other individually 

identifiable health information. In 

addition, your comment should not 

include any ‘‘any trade secret or any 

commercial or financial information 

. . . which is privileged or 

confidential.’’ 15 U.S.C. 46(f); see FTC 

Rule 4.10(a)(2), 16 CFR 4.10(a)(2). In 

particular, your comment should not 

include competitively sensitive 

information such as costs, sales 

statistics, inventories, formulas, 

patterns, devices, manufacturing 

processes, or customer names. 

Comments containing material for 

which confidential treatment is 

requested must be filed in paper form, 

must be clearly labeled ‘‘Confidential,’’ 

and must comply with FTC Rule 4.9(c), 

16 CFR 4.9(c). In particular, the written 

request for confidential treatment that 

accompanies the comment must include 

the factual and legal basis for the 

request and must identify the specific 

portions of the comment to be withheld 

from the public record. See FTC Rule 

4.9(c), 16 CFR 4.9(c). Your comment 

will be kept confidential only if the 

General Counsel grants your request in 

accordance with the law and the public 

interest. Once your comment has been 

posted publicly at https://

www.regulations.gov, as legally required 

by FTC Rule 4.9(b), 16 CFR 4.9(b), we 

cannot redact or remove your comment, 

unless you submit a confidentiality 

request that meets the requirements for 

such treatment under FTC Rule 4.9(c), 

16 CFR 4.9(c), and the General Counsel 

grants that request. 

Visit the FTC website to read this 

publication. The FTC Act and other 

laws that the Commission administers 

permit the collection of public 

comments to consider and use in this 

proceeding as appropriate. The 

Commission will consider all timely 

and responsive public comments it 

receives on or before October 18, 2023. 

For information on the Commission’s 

privacy policy, including routine uses 

permitted by the Privacy Act, see 

https://www.ftc.gov/site-information/ 

privacy-policy. 

The text that follows is the 

Supplemental Notice of Filing of HISA 

Budget which the Authority submitted 

to the Commission. The appendices to 

which it refers have been collected and 

reproduced as a supporting document 

on the docket for this publication at 

https://www.regulations.gov. 

Supplemental Notice of Filing of HISA 

Budget 

Pursuant to the Horseracing Integrity 

and Safety Act of 2020 5 (the ‘‘Act’’), 

notice was given that on December 27, 

2022, the Horseracing Integrity and 

Safety Authority (‘‘HISA’’ or the 

‘‘Authority’’) filed with the Federal 

Trade Commission (the ‘‘Commission’’) 

the revised 2023 budget.6 The budget 

was developed, approved by the 

Authority and submitted to the 

Commission prior to the Commission’s 

issuance of the Procedures for Oversight 

of the Horseracing Integrity and Safety 

Authority’s Annual Budget.7 This 

Supplemental Notice of Filing of HISA 

Budget (the ‘‘Supplemental Notice’’) 

provides the contents of the submission 

as set forth in 16 CFR part 1 Subpart U 

and notice is hereby given that on June 

12, 2023 the Authority has filed with 

the Commission the 2023 budget 

(Appendix 1) and this Supplemental 

Notice. 

I. Information Concerning Rule 

1.150(b). The Authority’s original 2023 

budget was posted on the HISA website 

(hisaus.org) on October 19, 2022. The 

Authority’s revised HISA budget was 

posted on the HISA website on January 

14, 2023. The Authority did not receive 

any formal comments regarding the 

original or revised budget. However, the 

Authority did receive phone calls from 

persons who asked technical questions 

about the 2023 assessments. These 

questions were answered by Authority 

staff. 

II. Information Concerning Rule 

1.150(b)(1). The revised 2023 budget 

was approved by the Authority’s Board 

of Directors by a vote of 9 to 0 and 

therefore satisfies the requirements of 15 

U.S.C. 3052(f)(1)(C)(iii). 

III. Information Concerning Rule 

1.150(b)(2). Using the Assessment 

Methodology Rule approved by the 

Commission, the Authority calculated 

and distributed the following: 

• 2023 Assessments by State 

(Appendix 2). 

• 2023 Assessments by Track 

(Appendix 3). 

Appendix 2 and Appendix 3 display 

the estimated amount required from 

each state racing commission as 

calculated under the Assessment 

Methodology Rule. The 2023 revised 

budget (Appendix 1), 2023 Assessments 

by State (Appendix 2), and 2023 

Assessments by Track (Appendix 3) 

were sent to the following stakeholders 

in December 2022: 

• Arizona—Arizona Department of 

Gaming—Racing Division, Arizona 

Downs, Rillito Park, and Turf Paradise 

(noting that the materials should be 

forwarded to the local horsemen’s 

group). 

• Arkansas—Arkansas State Racing 

Commission and Oaklawn Park (noting 

that the materials should be forwarded 

to the local horsemen’s group). 

• California—California Horse Racing 

Board (noting that the materials should 

be forwarded to the local horsemen’s 

group). 

• Colorado—Colorado Division of 

Gaming Events (noting that the 

materials should be forwarded to the 

local horsemen’s group). 

• Delaware—Delaware Thoroughbred 

Racing Commission and Delaware Park 

(noting that the materials should be 

forwarded to the local horsemen’s 

group). 

• Florida—Florida Department of 

Pari-Mutuel Wagering, Gulfstream Park, 

and Tampa Bay Downs (noting that the 

materials should be forwarded to the 

local horsemen’s group). 

• Illinois—Illinois Racing Board, 

Fairmount Park, and Hawthorne Park 

(noting that the materials should be 

forwarded to the local horsemen’s 

group). 

• Indiana—Indiana Horse Racing 

Commission and Horseshoe 

Indianapolis (noting that the materials 

should be forwarded to the local 

horsemen’s group). 

• Iowa—Iowa Racing & Gaming 

Commission and Prairie Meadows 

(noting that the materials should be 

forwarded to the local horsemen’s 

group). 


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• Kentucky—Kentucky Horse Racing 

Commission, Churchill Downs, Ellis 

Park, Keeneland, Kentucky Downs, and 

Turfway Park (noting that the materials 

should be forwarded to the local 

horsemen’s group). 

• Louisiana—Louisiana State Racing 

Commission. 

• Maryland—Maryland Racing 

Commission, Laurel Park, and Pimlico 

(noting that the materials should be 

forwarded to the local horsemen’s 

group). 

• Minnesota—Minnesota Racing 

Commission (noting that the materials 

should be forwarded to the local 

horsemen’s group). 

• Nebraska—Nebraska Racing and 

Gaming Commission (noting that the 

materials should be forwarded to the 

local horsemen’s group). 

• New Jersey—New Jersey Racing 

Commission, Meadowlands, and 

Monmouth Park (noting that the 

materials should be forwarded to the 

local horsemen’s group). 

• New Mexico—New Mexico Racing 

Commission (noting that the materials 

should be forwarded to the local 

horsemen’s group). 

• New York—New York State Gaming 

Commission, Finger Lakes, and New 

York Racing Association (noting that the 

materials should be forwarded to the 

local horsemen’s group). 

• Ohio—Ohio State Racing 

Commission, Belterra Park, Jack 

Thistledown, and Mahoning Valley 

(noting that the materials should be 

forwarded to the local horsemen’s 

group). 

• Oklahoma—Oklahoma Horse 

Racing Commission, Fair Meadows, and 

Remington Park (noting that the 

materials should be forwarded to the 

local horsemen’s group). 

• Pennsylvania—Pennsylvania State 

Horse Racing Commission, Parx Racing, 

Penn National, and Presque Isle Downs 

(noting that the materials should be 

forwarded to the local horsemen’s 

group). 

• Virginia—Virginia Racing 

Commission (noting that the materials 

should be forwarded to the local 

horsemen’s group). 

• Washington—Washington Horse 

Racing Commission and Emerald Downs 

(noting that the materials should be 

forwarded to the local horsemen’s 

group). 

• West Virginia—West Virginia 

Racing Commission, Charles Town, and 

Mountaineer Park (noting that the 

materials should be forwarded to the 

local horsemen’s group). 

The Authority also calculated the 

2022 True-Up by State (Appendix 4) 

and the 2022 True-Up by Track 

(Appendix 5). These documents reflect 

the following: 

• Actual 2022 starts and purses paid 

for each track (the 2022 assessments had 

been calculated using 2021 starts and 

purses paid as a proxy for 2022). 

• HISA spent $1,381,452 less than 

budgeted in 2022, so this sum was 

returned to the industry as part of the 

true-up process. 

• HISA collected $545,402 less in 

assessment payments from states/tracks 

(due to Nebraska, Oregon, Wyoming, & 

Texas not running Covered Horseraces), 

and therefore this sum was required to 

be recovered from the industry. 

The net amount of the above two 

sums comes to $836,050, which is the 

amount that HISA returned to the 

industry through credits to the 2023 

assessments. The True-Up totals for the 

relevant state were provided to the state 

racing commissions and applicable 

racetracks. 

IV. Information Concerning Rule 

1.150(b)(3) & (b)(4). The Act recognizes 

that the establishment of a national set 

of uniform standards for racetrack safety 

and anti-doping and medication control 

will enhance the safety and integrity of 

horseracing. The 2023 budget allows the 

Authority to implement the horseracing 

anti-doping and medication control 

program and the racetrack safety 

program for Covered Horses, Covered 

Persons, and Covered Horseraces. 

Pursuant to the Authority’s Conflict of 

Interest Policy (Appendix 11), ‘‘HISA 

Representatives involved in 

procurement have a special 

responsibility to adhere to principles of 

fair competition in the purchase of 

products and services by selecting 

vendors based exclusively on standard 

commercial considerations, such as 

quality, cost, availability, service and 

reputation, and not on the receipt of 

special favors.’’ In addition, the Conflict 

of Interest Policy requires: 

• Transactions to be supported by 

appropriate documentation; 

• No entry be made in our books and 

records that intentionally hides or 

disguises the nature of any transaction 

or of any of our liabilities, or 

misclassifies any transactions as to 

accounts or accounting periods; 

• HISA Representatives comply with 

our system of internal controls; and 

• No cash or other assets be 

maintained for any purpose in any 

unrecorded or ‘‘off-the-books’’ fund. 

In addition, the Conflict of Interest 

Policy requires that: 

• No HISA Representative may take 

or authorize any action that would 

cause our financial records or financial 

disclosures to fail to comply with 

generally accepted accounting 

principles or other applicable laws, 

rules, and regulations; and 

• All HISA Representatives must 

cooperate fully with our finance staff, as 

well as our independent public 

accountants and legal counsel, and 

respond to their questions with candor 

and provide them with complete and 

accurate information to help ensure that 

our records are accurate and complete. 

Any HISA Representative who 

becomes aware of any departure from 

these standards has a responsibility to 

report his or her knowledge promptly to 

the CEO or Chair of the Board. 

The 2023 HISA Summary budget 

(Appendix 1) is a compilation of the 

following departmental budgets: 

Racetrack Safety (Appendix 6); AntiDoping and Medication Control 

(‘‘ADMC’’) (Appendix 7); Technology 

(Appendix 8); and Administration 

(Appendix 9). A summary of these 

departmental budgets is set forth below: 

1. The 2023 Racetrack Safety budget 

funds the implementation of the 

Racetrack Safety Program as set forth in 

Rule Series 2000 and as approved by 

order of the Commission dated March 3, 

2022. The budget consists of the 

following items: 

a. Salaries/Payroll Taxes/Employee 

Benefits. The salaries provide for 

staffing to support and monitor the 

Racetrack Safety program, including 

those persons necessary to oversee the 

following components of the program: 

i. Administration 

ii. Data Analysis 

iii. Track Accreditation Services 

iv. Research 

v. Stewards’ Liaison 

vi. Jockey Health & Welfare 

vii. Investigations 

Salary levels for each position are 

based on market rates, while Employee 

Benefits consist primarily of a HISA 

contribution to cover a portion of 

employee health insurance and a 401(k) 

match that is consistent with market 

practice. The salaries budget provides 

for eight racetrack safety employees. As 

of June 1, 2023, the Racetrack Safety 

Program has four employees. 

b. Meetings. This includes the travel, 

meals, and materials to support the 

following annual meetings: 

i. Equine Safety Directors 

ii. Medical Directors 

iii. Racetrack Safety Committee 

These meetings are necessary to 

promote safety for both horses and 

riders. 

c. Travel. This category covers the 

business travel and meal expenses for 

the employees listed in Salaries (section 

a) (excluding the travel and meal 

expenses for the Meetings described in 


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8This policy has been updated with new 

reimbursable mileage rates, airport parking policies, 

tip percentage (now 20%). It is anticipated that an 

updated policy will be developed this summer. 

section b and the Track Accreditation 

Services travel set forth in section f). 

Travel to Covered Racetracks by 

Authority employees is often necessary 

to ensure that Covered Horseraces are 

run as safely as possible. The Authority 

plans to develop and implement a 

formal travel policy this year. 

d. Supplies. This primarily consists of 

materials to be used in various 

Continuing Education programs 

provided and overseen by HISA. These 

programs ensure that trainers, jockeys, 

veterinarians, and stewards are 

educated in methods and procedures 

that promote the health and safety of 

horses and riders. 

e. Professional Services. Several 

independent contractors will partner 

with HISA on a part-time basis to 

provide and/or augment services in the 

following areas: 

i. Data Analysis 

ii. Research 

iii. Statistical Analysis 

iv. Continuing Education 

v. Establishment of a National Medical 

Director position 

Pay rates are based on market rates for 

similar positions. All of these 

independent contractor relationships 

will increase the knowledge base and/or 

education level of participants in 

Covered Horseraces. 

f. Track Accreditation Services. The 

Racetrack Safety rules require that 

tracks be accredited, and the rules 

mandate site visits to determine the 

extent of compliance with the rules. 

This category includes the costs of 

compensating teams of independent 

contractors to perform these site visits, 

and the costs of covering the travel and 

meal expenses for this team. It is 

expected that the accreditation site 

visits will be conducted by teams of 

three to four individuals. The costs 

included in this category were estimated 

based on the historical costs of site 

inspections performed by the National 

Thoroughbred Racing Association’s 

Safety & Integrity Alliance. On-site track 

visits will ensure that track facilities 

meet the safety requirements set forth in 

the Racetrack Safety rules. 

g. Track Surface Testing. This 

category includes the cost of pre-meet 

track surface testing of tracks that run 

Covered Horseraces. Testing is 

performed to ensure that track surfaces 

are safe for horses/jockeys to run on. 

This testing is performed by the Racing 

Surfaces Testing Laboratory. 

2. The 2023 Anti-Doping and 

Medication Control budget supports the 

implementation of the ADMC Protocol. 

The budget consists of the following 

items: 

a. Travel. This line item covers the 

business travel and meal expenses that 

are expected to be incurred by HISA 

personnel to support and achieve the 

goals of the ADMC Program. The 

Horseracing Integrity and Welfare Unit’s 

travel policy is Appendix 12.8

b. Supplies. This line item sets forth 

the cost of materials utilized by the 

Authority to support and achieve the 

goals of the ADMC Program, including 

services such as continuing education. 

c. Professional Services. Several 

independent contractors will partner 

with HISA on a part-time basis to 

provide and/or augment services in the 

following areas: 

i. Arbitration—this covers the fees to 

be paid to arbitrators who preside over 

appeals of positive anti-doping tests. 

ii. Independent Adjudication Panel 

(IAP)—this covers the fees paid to 

members of the IAP, who hear appeals 

of positive tests for controlled 

medication. 

iii. Furosemide Study—this covers the 

fees to be paid in 2023 for the 

furosemide study that is required by the 

Act. 

d. Horseracing Integrity and Welfare 

Unit (HIWU). The Act requires that 

HISA contract with an independent 

enforcement agency to oversee the 

components of the ADMC Program. 

HIWU, a division of Drug Free Sport 

International (‘‘DFS’’), has been retained 

by the Authority as the independent 

enforcement agency. The HIWU line 

items in the ADMC budget consist of the 

following: 

i. Salaries/Payroll Taxes/Employee 

Benefits. The salaries for a staff 

(expected to total 42 full-time 

individuals) that will carry out all of the 

responsibilities of the enforcement 

agency, including those persons 

necessary to oversee and complete the 

following components of the program: 

1. Testing Operations 

2. Testing Strategy 

3. Compliance & Policy 

4. Training & Certification 

5. Lab Accreditation 

6. Equine Medical Resources 

7. Intelligence and Strategy 

8. Investigative Operations 

9. Education 

10. Communications & Outreach 

11. Legal 

12. Information Technology 

13. Human Resources 

14. Finance 

HIWU shares staff with DFS in the 

areas of Information Technology, 

Finance and Human Resources. This 

arrangement produces cost savings, 

obviating the need for HIWU to retain 

full-time employees to provide these 

services. 

ii. Rent. HIWU has procured 3,000 sq. 

ft. of office space for its employees. 

HIWU is paying $30/sq.ft., which is 

consistent with market rates in the 

Kansas City area. The cost of office 

equipment is also included in this 

category. 

iii. Office Expense. This consists of 

common office expenses such as 

utilities and maintenance costs and is 

based on historical costs for similar 

businesses. 

iv. Telecommunications. This consists 

of the cost of office phones, as well as 

mobile phone service at $65/month/ 

employee (a commercially reasonable 

rate). 

v. Travel. This is the travel expense 

necessary for full-time employees to 

perform functions such as meetings 

with State Racing Commissions, training 

sessions with sample collection 

personnel, laboratory visits, meetings 

with HISA personnel, and participation 

in conventions. Travel expenses include 

airfare, hotel rooms, rental cars, fuel 

costs, mileage for personal vehicles used 

for business purposes, parking, and 

meals. The amounts for each expense 

component were based on estimated 

market average costs. 

vi. Supplies. This consists of drug 

testing supplies needed for training and 

backup testing. 

vii. Professional Services. This 

consists largely of consulting fees paid 

to experts in the areas of: 

1. Results Management 

2. Investigations and State Racing 

Commission Relations 

3. Laboratory Accreditation 

4. Equine Science 

The guidance provided by these 

subject matter experts will result in a 

safer sport run on a more level playing 

field. 

viii. Technology. This consists of the 

cost of all software, hardware, and 

licenses needed to perform HIWU’s 

work. 

ix. Insurance. The expense consists of 

the cost of all of HIWU’s insurance 

policies, including liability insurance 

with an Umbrella policy, cyber-risk 

insurance, property insurance, and 

workers’ compensation insurance. 

x. Resources and Education. This 

includes Training and Continuing 

Education, registration fees for industry 

conferences, accounting fees for state 

tax filings, and dues and subscriptions 

to industry publications. All of these are 

necessary for HIWU to properly conduct 

its business. 


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xi. Taxes—Other. Estimated taxes 

based on the historical experience of 

HIWU’s sister companies. These taxes 

are minimal in amount and are 

commercially reasonable. 

xii. ADMC Collection Costs. This 

includes wages paid to sample 

collection personnel in all states that 

conduct Covered Horseraces. The wage 

amounts were based on rates paid to 

sample collection personnel in each 

state prior to HIWU assuming these 

sample collection functions. 

Additionally, to cover travel expenses 

specifically related to sample collection, 

this cost amount includes airfare, hotel 

rooms, rental cars, fuel costs, mileage 

for personal vehicles used for business 

purposes, parking, and meals. The 

amounts for each expense component 

were based on estimated market average 

costs. 

xiii. Management Fees. This is the 

profit amount to HIWU for 

administering the program. It is a 

negotiated amount of 7% of the total 

expenses incurred for services they 

provide directly and 4% for everything 

else. 

e. Lab Testing. Once the samples to be 

tested have been collected by HIWU 

personnel, they are shipped to one of six 

accredited laboratories located in the 

United States. All of the laboratories 

have many years of experience in the 

testing of blood, urine, and hair samples 

taken from thoroughbred racehorses. 

HIWU has conducted extensive 

negotiations with each of these 

laboratories in order to ensure that 

competent testing is performed at the 

lowest price possible. One way HIWU 

has successfully reduced costs is by 

utilizing only six laboratories to perform 

testing, instead of the nine laboratories 

previously used by various state racing 

commissions across the country. This 

allows the six laboratories to spread 

their fixed costs (salaried employees, 

testing equipment, etc.) over a larger 

number of samples, resulting in a lower 

charge per test. 

It is important to note that the ADMC 

Collection Costs and Lab Testing line 

items represent 56.1% of the total 

budget of the Authority. 

3. The 2023 Technology budget 

supports the building of all IT systems 

needed to properly and efficiently 

manage the Racetrack Safety and ADMC 

programs. The budget consists of the 

following items: 

a. Salaries/Payroll Taxes/Employee 

Benefits. This contemplates nine HISA 

full-time employees in areas including 

programming, field support, internal 

support, external support, project 

administration, and third-party 

developer coordination. Salary levels for 

each position are based on market rates, 

while Employee Benefits consist 

primarily of a HISA contribution to 

cover a portion of employee health 

insurance and a 401(k) match that is 

consistent with market practice. As of 

June 1, 2023, the Technology 

department has five employees. 

b. Travel. This includes the costs of 

travel by IT employees to racetracks to 

meet with customers/users, to 

Lexington, Kentucky for HISA meetings, 

and to training seminars and technology 

summit meetings such as AWS Reinvent 

2023. Participation by IT employees in 

these meetings and seminars will result 

in a more efficient program that better 

meets the needs of the constituents. 

c. Supplies. This includes the 

purchase of laptops for all HISA 

employees, the provision of 

workstations for those employees 

located in the Lexington office, and the 

hardware/software/3rd-party services 

needed for image processing. These 

items are necessary for HISA to 

efficiently perform its duties under the 

Act. 

d. Technology. This item includes the 

costs of cloud computing and other 

specialized applications that together 

form the foundation of HISA’s 

technology system. For example (and 

most significantly), this category 

includes the cost of Amazon Web 

Services, as well as relationships with 

other vendors relating to the HISA 

website and technology systems. In 

order to be as cost-effective as possible, 

HISA has chosen not to invest in 

centralized computing assets. This 

keeps costs low and increases flexibility 

as HISA is engaged in expanding its 

staff and infrastructure. 

e. Professional Services. This item 

budgets for outsourced technology 

delivery provided by third-party system 

integrators and software factories. Given 

the need for cost-effective, round-theclock services, the necessary software 

and technology systems were procured 

internationally from development 

resources in the US, Europe, and Asia; 

this allowed for the implementation of 

a 24-hour code and test development 

cycle. This is the most cost-effective 

method of building and maintaining 

technology systems/portals to facilitate 

program reporting to and monitoring by 

HISA. 

4. The 2023 Administration budget 

consists of the general and 

administrative staff and expenditures 

that are needed to conduct HISA’s 

business. This budget consists of: 

a. Salaries/Payroll Taxes/Employee 

Benefits. This includes executive-level 

personnel (the CEO and CFO), plus 

employees in Legal, Communications, 

Stewarding, Veterinary Services, and 

Administrative Services. Salary levels 

for each position are based on market 

rates, while Employee Benefits consist 

primarily of a HISA contribution to 

cover a portion of employee health 

insurance and a 401(k) match that is 

consistent with market practice. As of 

June 1, 2023, seven employees make up 

the Administration Department. The 

Administration Department has not 

filled all of its budgeted positions. 

b. Board/Committee Compensation. 

This consists of travel, hotel, and meal 

expenses for the one annual board 

meeting that is held with in-person 

attendance by the board members. 

c. Rent. This includes 3,000 sq.ft. of 

office space at HISA’s Lexington, KY 

headquarters at a rate of $20 sq.ft. 

(which is consistent with office space 

rates in the downtown Lexington area). 

This also includes the cost of building 

out the office space and the costs of 

office furniture and garage parking. 

These rates are consistent with 

commercial office space in downtown 

Lexington. 

d. Phones. This is the cost of an office 

phone system in HISA’s corporate 

office, necessary for HISA to conduct its 

business. 

e. Meetings. This is the cost of 

miscellaneous meetings of HISA’s 

corporate staff as are necessary for HISA 

to conduct its business. 

f. Travel. This includes airfare, car 

rental, mileage, and meals for HISA’s 

corporate staff in the course of traveling 

to Covered Racetracks, industry 

meetings, HISA meetings (strategic 

planning summits, board meetings, etc.), 

and meetings with industry 

stakeholders. Travel to these events 

allows HISA’s corporate staff to conduct 

its business more efficiently and to 

perform its duties under the Act. 

g. Bank Fees. This includes the cost 

of bank fees and credit card fees. These 

fees are minimal and are necessary to 

efficiently and effectively conduct 

business. 

h. Supplies. This includes the cost of 

all office supplies, including printer/ 

copier paper, printer/copier ink and 

toner, postage, shipping, and other 

miscellaneous office supplies. 

i. Accounting Services. This consists 

of the cost of a contract bookkeeping 

service that will book accounting 

entries, produce financial statements, 

manage and process Accounts 

Receivable, manage and process 

Accounts Payable, and draft/file HISA’s 

annual IRS Form 990. Contracting this 

work out to a company with expertise 

in these areas is much more costeffective than if HISA were to hire staff 

to perform these functions in-house. 


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Federal Register / Vol. 88, No. 191 / Wednesday, October 4, 2023 / Notices 68615 

j. Public Relations Services. This is 

the cost of a contract public relations 

service to manage HISA’s website, issue 

press releases, assist with the 

production and distribution of 

information to industry stakeholders, 

and provide continuing education 

information for industry stakeholders. 

The public relations firm that HISA is 

working with has many years of 

expertise in P/R for thoroughbred racing 

enterprises. The firm can perform the 

aforementioned tasks more efficiently 

and effectively than if HISA were to hire 

staff to perform these tasks in-house. 

k. Legal. This includes the cost of 

outside legal counsel for the creation, 

management, and updating of Racetrack 

Safety and ADMC rules as well as the 

cost of outside counsel that is working 

on the various lawsuits in which HISA 

is a party. Doing all of these tasks 

requires a decentralized group of 

lawyers with varied skill sets. At 

present, it is much more efficient and 

effective to utilize outside counsel than 

for HISA to hire a large in-house legal 

team to handle these issues. 

l. Insurance. This includes the 

following insurance policies for HISA: 

i. Directors & Officers insurance. 

ii. Workers’ Compensation insurance. 

iii. Liability insurance. 

All these policies were competitively 

shopped by a broker to get the lowest 

rate possible. 

m. Payroll Services. This includes all 

costs of HISA’s relationship with 

Resource Management, Inc. (RMI), a 

Professional Employer Organization 

(PEO). RMI provides Human Resources 

administration (handbook and policy 

management resources, new employee 

onboarding, labor law assistance, etc.), 

benefits management, compliance 

services (workers’ compensation claims 

management and annual reporting, 

unemployment claims management, 

etc.) and payroll administration (payroll 

processing, W2 management, vacation 

tracking, etc.). The relationship with 

RMI allows these functions to be 

performed in a more cost-effective 

manner than if HISA hired employees to 

perform those functions. 

n. Professional Services. This account 

consists of: 

i. Search fees to help HISA fill open 

positions with the most qualified 

candidates. 

ii. Consulting fees to assist HISA with 

board and executive functions. 

iii. $300,000 contingency fund set 

aside for unexpected expenses. 

These items will ensure that HISA has 

high quality employees who are welltrained to properly serve its 

constituents. Please note that the 2023 

HISA budget contemplated no 

repayment of loans, nor did it assume 

that any funding shortfall would be 

incurred. 

V. Information Concerning Rule 

1.150(b)(5). Appendix 10 is a 

comparison of the approved HISA 2022 

Budget to actual revenues and 

expenditures. A variance has been 

calculated for each line item, and a 

narrative explanation has been provided 

for all variances >10% and at least 

$100,000. 

Conclusion 

The budget furthers the purpose of the 

Act in that it allocates the funding 

necessary for the successful 

implementation by HISA of the 

requirements of the Act. The budget has 

been carefully analyzed and is narrowly 

tailored to the various regulatory 

activities of HISA as contemplated by 

the Act. 

By direction of the Commission. 

April J. Tabor, 

Secretary. 

[FR Doc. 2023–22058 Filed 10–3–23; 8:45 am] 

BILLING CODE 6750–01–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Agency for Healthcare Research and 

Quality 

Patient Safety Organizations: 

Voluntary Relinquishment for The 

Envision Healthcare Center for Quality 

and Patient Safety PSO 

AGENCY: Agency for Healthcare Research 

and Quality (AHRQ), Department of 

Health and Human Services (HHS). 

ACTION: Notice of delisting. 

SUMMARY: The Patient Safety and 

Quality Improvement Final Rule 

(Patient Safety Rule) authorizes AHRQ, 

on behalf of the Secretary of HHS, to list 

as a patient safety organization (PSO) an 

entity that attests that it meets the 

statutory and regulatory requirements 

for listing. A PSO can be ‘‘delisted’’ by 

the Secretary if it is found to no longer 

meet the requirements of the Patient 

Safety and Quality Improvement Act of 

2005 (Patient Safety Act) and Patient 

Safety Rule, when a PSO chooses to 

voluntarily relinquish its status as a 

PSO for any reason, or when a PSO’s 

listing expires. AHRQ accepted a 

notification of proposed voluntary 

relinquishment from The Envision 

Healthcare Center for Quality and 

Patient Safety PSO, PSO number P0197, 

of its status as a PSO, and has delisted 

the PSO accordingly. 

DATES: The delisting was effective at 

12:00 midnight ET (2400) on October 1, 

2023. 

ADDRESSES: The directories for both 

listed and delisted PSOs are ongoing 

and reviewed weekly by AHRQ. Both 

directories can be accessed 

electronically at the following HHS 

website: http://www.pso.ahrq.gov/listed. 

FOR FURTHER INFORMATION CONTACT: 

Cathryn Bach, Center for Quality 

Improvement and Patient Safety, AHRQ, 

5600 Fishers Lane, MS 06N100B, 

Rockville, MD 20857; Telephone (toll 

free): (866) 403–3697; Telephone (local): 

(301) 427–1111; TTY (toll free): (866) 

438–7231; TTY (local): (301) 427–1130; 

Email: pso@ahrq.hhs.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The Patient Safety Act, 42 U.S.C. 

299b-21 to 299b-26, and the related 

Patient Safety Rule, 42 CFR part 3, 

published in the Federal Register on 

November 21, 2008 (73 FR 70732– 

70814), establish a framework by which 

individuals and entities that meet the 

definition of provider in the Patient 

Safety Rule may voluntarily report 

information to PSOs listed by AHRQ, on 

a privileged and confidential basis, for 

the aggregation and analysis of patient 

safety work product. 

The Patient Safety Act authorizes the 

listing of PSOs, which are entities or 

component organizations whose 

mission and primary activity are to 

conduct activities to improve patient 

safety and the quality of health care 

delivery. 

HHS issued the Patient Safety Rule to 

implement the Patient Safety Act. 

AHRQ administers the provisions of the 

Patient Safety Act and Patient Safety 

Rule relating to the listing and operation 

of PSOs. The Patient Safety Rule 

authorizes AHRQ to list as a PSO an 

entity that attests that it meets the 

statutory and regulatory requirements 

for listing. A PSO can be ‘‘delisted’’ if 

it is found to no longer meet the 

requirements of the Patient Safety Act 

and Patient Safety Rule, when a PSO 

chooses to voluntarily relinquish its 

status as a PSO for any reason, or when 

a PSO’s listing expires. Section 3.108(d) 

of the Patient Safety Rule requires 

AHRQ to provide public notice when it 

removes an organization from the list of 

PSOs. 

AHRQ has accepted a notification of 

proposed voluntary relinquishment 

from The Envision Healthcare Center for 

Quality and Patient Safety PSO to 

voluntarily relinquish its status as a 

PSO. Accordingly, The Envision 

Healthcare Center for Quality and 


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