Billing Code: 6750-01-P 

FEDERAL TRADE COMMISSION 

16 CFR Part 1 

[File No. P222100] 

Horseracing Integrity and Safety Authority Oversight 

AGENCY: Federal Trade Commission. 

ACTION: Notice of proposed rule; request for comment. 

SUMMARY: The Federal Trade Commission (“FTC” or “Commission”) announces 

proposed rules regarding oversight of the Horseracing Integrity and Safety Authority 

(“Authority”). The proposed rules include new oversight provisions to ensure that the 

Authority remains publicly accountable and operates in a fiscally prudent, safe, and 

effective manner. 

DATES: Comments must be received by [INSERT DATE 60 DAYS AFTER DATE OF 

PUBLICATION IN THE FEDERAL REGISTER]. 

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 below. Write “HISA Rulemaking, Matter No. P222100” on 

your comment and file your comment online at https://www.regulations.gov by following 

the instructions on the web-based 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: Sarah Botha, (202) 326-2036, 

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sbotha@ftc.gov, Office of the Executive Director, Federal Trade Commission. 

SUPPLEMENTARY INFORMATION: 

Background 

The Horseracing Integrity and Safety Act of 2020 (“HISA” or “the Act”), Pub. L. 

116-260, Title XII, 134 Stat 1182, 3252 (2020) (codified as amended at 15 U.S.C. 3051– 

3060), recognizes the Authority as a self-regulatory nonprofit organization charged with 

developing and enforcing rules relating to racetrack safety, anti-doping, and medication 

control. See 15 U.S.C. 3052. The Act expressly provides for Commission oversight of 

several aspects of the Authority’s operations. For example, the Commission must 

approve any proposed rule or rule modification by the Authority relating to the 

Authority’s bylaws, racetrack safety standards, anti-doping and medication control, and 

the formula or methodology for determining assessments. See id. In December 2022, 

Congress amended HISA to expand the Commission’s oversight role over the Authority. 

See Consolidated Appropriations Act, 2023, Pub. L. No. 117-328, Sec. 701, 136 Stat. 

4459, 5231 (2022). As amended, the Act gives the Commission the power to issue rules 

under the procedures set forth in the Administrative Procedure Act, 5 U.S.C. 553, “as the 

Commission finds necessary or appropriate to ensure the fair administration of the 

Authority . . . or otherwise in furtherance of the purposes of this Act.” 15 U.S.C. 

3053(e). 

In light of the Commission’s experience in overseeing the Authority’s operations 

to date, the Commission is exercising its rulemaking authority to propose several new 

rule provisions to ensure effective Commission oversight over the Authority. The 

proposed new provisions are designed to ensure that the Authority is promoting 

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transparency and integrity in its operations. For example, new rule sections would require 

the Authority to submit and publish annual and midyear reports about its performance 

and financial position. The proposed rules would also require the Authority to develop, 

maintain, and publish a multi-year strategic plan, after taking public comments on the 

draft plan. The proposed rules would require the Authority to effectively manage risk and 

take steps to prevent conflicts of interest, waste, fraud, embezzlement, and abuse. The 

proposed rules would also mandate other operational requirements and identify best 

practices for the Authority to follow, as explained in the section-by-section analysis 

below. The Commission would add the proposed new rules as 16 CFR 1.153 – 1.156 in 

Subpart U of part 1 of its Rules of Practice. Subpart U would be renamed “Oversight of 

the Horseracing Integrity and Safety Authority” to more accurately reflect the content of 

the amended subpart. 

Section by Section Analysis 

§ 1.153 Submission of the Authority’s annual reports, midyear reports, and strategic 

plans. This proposed new section imposes certain requirements on the Authority to report 

on its finances for the preceding calendar year by May 15. This includes a complete 

accounting of the Authority’s budget (as audited by a qualified, independent, registered 

public accounting firm and in accordance with Generally Accepted Accounting 

Principles), a discussion of budgetary line items, a summary of travel expenses, and a 

summary of any new or continuing risks or issues raised by audits or other reviews. The 

proposed section also imposes certain requirements on the Authority to report by March 

31 on its performance for the prior calendar year, with such report to include efforts made 

to carry out the requirements of the Act, a description of the cooperation with the states 

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as set forth in 15 U.S.C. 3060(b), a summary of final civil sanctions, an assessment of the 

Authority’s progress in meeting or not meeting its performance measures contained in its 

strategic plan per § 1.153(d), a summary of Board of Directors committee 

recommendations and activities, information about any changes in the composition of the 

Authority’s Board of Directors or standing committees, information about the 

relationship between the Authority and the anti-doping and medication control 

enforcement agency, a summary of all litigation to which the Authority is a party 

(including actions commenced by the Authority under 15 U.S.C. 3054(j)), a summary of 

all subpoenas issued by the Authority under 15 U.S.C. 3054(c), a description of any areas 

in which the Authority believes improvements to its operations are warranted, and the 

Authority’s plans to achieve those improvements. The proposed section also requires the 

Authority to submit to the FTC by August 15 a same year midyear report covering 

January to June that describes spending and staffing levels and budgetary information. 

This midyear report would provide operational insight about the Authority’s budget 

execution and risk management activities. Under the proposed section, the Authority also 

must develop and publish for public comment a multi-year strategic plan by June 30, 

2024. The Authority must re-evaluate its strategic plan no less frequently than every five 

years. The strategic plan must align with the Authority’s annual budget, discuss its 

priority initiatives, and set forth a set of performance measures. The Authority must 

publish its annual financial reports, annual performance reports, and strategic plans on its 

website. 

§ 1.154 Enterprise risk management. This proposed new section imposes certain 

requirements on the Authority to ensure that it effectively manages risk to prevent 

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conflicts of interest, waste, fraud, embezzlement, or abuse. Paragraph (a) sets forth 

guiding principles around separation of duties and corrective action plans, and notes that 

risk management activities must ensure compliance, the avoidance of conflicts of interest 

or the appearance thereof, and the appropriate handling of funds received and expended 

by the Authority. Given the confidential nature of much of the Authority’s work and the 

data that it collects, Paragraph (b) would require the Authority to ensure the privacy and 

security of its data in its systems, including those operated by third-party contractors, and 

require a complete annual evaluation of the status of its overall information technology 

program and practices as audited by a qualified, independent, third-party auditor. Given 

that the Authority leverages contractor resources in its operations, Paragraph (c) would 

require the Authority to document its market research for any action estimated at over 

$10,000 to ensure the lowest cost or best value for goods and services to be provided, and 

to develop policies and procedures covering procurement activities. Given the FTC’s 

need for regular communication and awareness of the Authority’s activities, Paragraph 

(d) would require the Authority to provide advance notice to Commission staff of all 

significant Authority-planned events (e.g., press conferences, media events, summits, 

etc.) via a calendar, list, email, or other reasonable means, to summarize key aspects of 

all such events on its website, and to give Commission staff prompt notice after 

significant adverse events in the horseracing industry that might reasonably lead to 

sanctions or track closures. 

§ 1.155 Other best practices. This proposed new section includes a set of best practices 

that the Authority is encouraged to adopt to promote accountability, transparency of 

operations, and effective resource stewardship. These proposals include holding regular 

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monitoring meetings with the FTC; recommendations for how the Authority may 

maintain its records and information; recommendations for how the Authority should 

treat confidential information; a standing data request from the FTC for the Authority’s 

Board of Directors minutes; recommendations about the Authority’s personnel and 

compensation policies and practices; recommendations about the Authority’s customer 

service program (and the development of associated metrics); and recommendations 

regarding the Authority’s travel policies. 

§ 1.156 Severability. This proposed new section notes that provisions of this subpart are 

separate and severable from one another. If any provision is stayed or determined to be 

invalid, it is the Commission’s intention that the remaining provisions shall continue in 

effect. 

Request for Comment 

You can file a comment online or on paper. For the Commission to consider your 

comment, we must receive it on or before [INSERT DATE 60 DAYS AFTER DATE OF 

PUBLICATION IN THE FEDERAL REGISTER]. Write “HISA - Rulemaking, 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 following the instructions on the web-based form. 

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If you file your comment on paper, write “HISA - Rulemaking, 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, 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 

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■ 

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 Notice and the news release describing it, and 

visit https://www.regulations.gov/docket/FTC-2023-00XX to read a plain-language 

summary of the proposed rule. 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 that it receives on or before [INSERT DATE 60 DAYS AFTER DATE 

OF PUBLICATION IN THE FEDERAL REGISTER]. 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. 

Paperwork Reduction Act 

The Paperwork Reduction Act (“PRA”), 44 U.S.C. chapter 35, requires federal 

agencies to seek and obtain Office of Management and Budget approval before 

undertaking a collection of information directed to ten or more persons. Under the PRA, 

a rule creates a “collection of information” when ten or more persons are asked to report, 

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provide, disclose, or record information in response to “identical questions.”0F

1 The 

Commission concludes that the PRA does not apply to the proposed amendments because 

they only apply to one “person,” the Authority. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (“RFA”), as amended by the Small Business 

Regulatory Enforcement Fairness Act of 1996, requires an agency to either provide 

an Initial Regulatory Flexibility Analysis with a proposed rule, or certify that the 

proposed rule will not have a significant impact on a substantial number of small 

entities.1F

2 The RFA defines a “small entity” as a small business, a small governmental 

jurisdiction, or a small not-for-profit organization. See 5 U.S.C. 601(6). 

The proposed amendments would apply only to the Authority, and the 

Authority is not a small business or a small governmental jurisdiction. While the 

Authority is a nonprofit entity, it is not a small not-for-profit organization, defined in 

the RFA as “any not-for-profit enterprise which is independently owned and operated 

and is not dominant in its field.” Id. 601(5). The authority is not “independently 

owned and operated,” and it is dominant in its field. The Commission therefore 

certifies under the RFA that the proposed rule will not have a significant impact on a 

substantial number of small entities, and hereby provides notice of that certification 

to the Small Business Administration. 

Communications by Outside Parties to Commissioners or Their Advisors 

Written communications and summaries or transcripts of oral communications 

respecting the merits of this proceeding, from any outside party to any Commissioner or a 

1 44 U.S.C. 3502(3)(A). 

2 5 U.S.C. 603-605. 

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Commissioner’s advisor, will be placed on the public record. See 16 CFR 1.26(b)(5). 

List of Subjects in 16 CFR Part 1 

Administrative practice and procedure; animal welfare; animal drugs. 

For the reasons set forth in the preamble, the Federal Trade Commission proposes 

to amend title 16, chapter I, subchapter A of the Code of Federal Regulations as follows: 

PART 1 — GENERAL PROCEDURES 

1. The authority citation for part 1 continues to read as follows: 

Authority: 15 U.S.C. 46; 15 U.S.C. 57a; 5 U.S.C. 552; 5 U.S.C. 601 note. 

2. Revise subpart U to read as follows: 

Subpart U — Oversight of the Horseracing Integrity and Safety Authority 

Sec. 

1.153 Submission of the Authority’s annual reports, midyear reports, and strategic plans 

1.154 Enterprise risk management 

1.155 Other best practices 

1.156 Severability 

Subpart U Authority: 15 U.S.C. 3053(e) 

§ 1.153 Submission of the Authority’s annual reports and strategic plans. 

(a) Annual financial report. Every year, by May 15, the Authority must follow the 

procedures in § 1.143 to submit an annual financial report to the Commission, detailing 

the items listed below for the previous calendar year. The Authority must also publish 

this report on its website. The report must contain: 

(1) a complete accounting of the Authority’s budget, as audited by a qualified, 

independent, registered public accounting firm and in accordance with Generally 

Accepted Accounting Principles (including a statement from the auditor attesting 

to the auditor’s independence and its opinion regarding the financial statements 

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presented in the annual financial report); 

(2) line-item comparisons between the approved budget’s revenues and 

expenditures for the previous year and the actual revenues and expenditures for 

the previous year; 

(3) an explanation of how the Authority has considered the relative costs and 

benefits in formulating the programs, projects, and activities described in the 

budget; 

(4) a description and accounting of the Authority’s insurance coverage; 

(5) a description and accounting of any budgetary reserves; 

(6) summaries of contracts or other liabilities that the Authority has entered into 

or may potentially incur; 

(7) a summary of travel expenses, including an itemized list of any first-class 

travel (defined as the highest and most expensive class of service); 

(8) any new or continuing material or significant risks or issues raised by the 

audit, internal quality or control reviews, other inspections or peer reviews of the 

Authority, or any inquiry or investigation by governmental or professional 

authorities, along with any steps taken (e.g., corrective actions) to deal with any 

such issues, consistent with § 1.154; and 

(9) any other information requested by Commission staff. 

(b) Annual performance report. Every year, by March 31, the Authority must follow the 

procedures in § 1.143 to submit an annual performance report to the Commission, 

detailing the items listed below for the previous calendar year. The Authority must also 

publish this report on its website. The report must contain: 

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(1) narrative summaries of all the major efforts by the Authority to carry out the 

requirements of the Act, including the status or results of any publicly announced 

investigations conducted by the Authority; 

(2) information about the Authority’s cooperation with the States as set forth in 15 

U.S.C. 3060(b), including whether each State has covered horseraces, elects to 

remit fees, or has entered into an agreement under 15 U.S.C. 3060(a)(1) to 

implement a component of the programs on racetrack safety or anti-doping and 

medication control; 

(3) a summary of all final civil sanctions imposed by the Authority in the previous 

year, in a tabular format; at a minimum, the summary should be broken down by 

violation category (e.g., racetrack safety program, anti-doping and controlled 

medication protocol rules, etc.) and should include the total number of alleged 

violations by category, the number of times the violations were admitted and 

resolved without adjudication, the number of times any violations were contested 

and adjudicated, the number of times any sanctions were imposed, the number of 

times that no sanctions were imposed, the number of civil sanction notices that 

needed to be reissued or corrected, the total fines imposed, the total amount of 

purses forfeited, and the number of times the sanctions were appealed to the 

Commission’s Administrative Law Judge; 

(4) an assessment of the Authority’s progress in meeting or not meeting its 

performance measures contained in its Strategic plan per § 1.153 (d); 

(5) a statement from each Board of Directors committee summarizing its work in 

the previous year and all recommendations each such committee has made to the 

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Board; 

(6) information about any changes in the composition of the Authority’s Board of 

Directors or standing committees; 

(7) information about the relationship between the Authority and the anti-doping 

and medication control enforcement agency, including how the enforcement 

agency is performing under its contract with the Authority and how many years 

remain under the contract; 

(8) a summary of all litigation to which the Authority is a party, including actions 

commenced by the Authority under 15 U.S.C. 3054(j); 

(9) a summary of all subpoenas issued by the Authority under 15 U.S.C. 3054(c); 

(10) descriptions of any areas in which the Authority believes that improvements 

to its operations are warranted, together with the Authority’s plans to achieve 

those improvements. Forward-looking information should reflect known and 

anticipated risks, uncertainties, future events or conditions, and trends that could 

significantly affect the Authority’s future financial position, condition, or 

operating performance, as well as Authority actions that have been planned or 

taken to address those challenges; and 

(11) any other information requested by Commission staff. 

(c) Midyear reporting. By August 15, the Authority must furnish to the Commission a 

same-year midyear report covering January through June, to include: 

(1) spending and staffing levels for the quarter ending June 30, compared to the 

levels in the Commission-approved budget; 

(2) a summary of travel expenses, including an itemized list of any first-class 

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travel (defined as the highest and most expensive class of service); 

(3) the status of outstanding and completed corrective actions; and 

(4) any other information requested by Commission staff. 

(d) Strategic plan. The Authority must develop and maintain a multiyear strategic plan. 

The Authority must reevaluate the strategic plan no less frequently than every five years. 

The Authority’s annual budget must align with, and link spending to, the strategic goals. 

The strategic plan must include items such as a description of its State-by-State 

relationships and a discussion of planned rulemaking activities. The Authority must: 

(1) post its draft strategic plan on its website for a public comment period of at 

least 14 days; 

(2) present its final strategic plan to the Commission, along with a summary of its 

responses to public comments; and 

(3) publish its final strategic plan on its website. 

The Authority must submit its first strategic plan to the Commission on or before June 

30, 2024. 

(e) Further guidance on strategic plan. The Authority’s strategic plan should include 

forecasts of the Authority’s industry environment and its priority initiatives for the 

current and subsequent years. The strategic plan should also consider the impact that 

program levels and changes in methods of program delivery, including advances in 

technology, could have on program operations and administration. The Strategic Plan 

should identify several strategic goals aligned with the Authority’s mission statement. 

Each strategic goal should have accompanying objectives, strategies, and performance 

measures. As guiding principles, performance measures should: 

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(1) be limited to the vital few and demonstrate results; 

(2) cover multiple priorities; and 

(3) provide useful information for decision-making. 

Measures should be clear, measurable, objective, and reliable, and should focus on core 

program activities and priorities. 

§ 1.154 Enterprise risk management 

(a) Guiding principles. The Authority must effectively manage risk to prevent conflicts of 

interest, waste, fraud, embezzlement, and abuse. To manage risk, the Authority must 

align the enterprise risk-management process to the goals and objectives noted in the 

Authority’s strategic plan. The Authority must assess risks, select risk responses, monitor 

whether responses are successful, and communicate and report on risks, consistent with § 

1.153. The Authority must ensure that all internal controls have appropriate separation of 

duties (e.g., requester, approver, recorder). In addition, the Authority must develop 

corrective action plans no later than 90 days after receiving a notice of finding from its 

auditors or other internal assessments. The Board of Directors (or one of the standing 

committees) must review and evaluate identified risks and proposed corrective action 

plans. The Authority must review regularly its corrective actions identified from all 

audits and internal assessments and should develop criteria by which to prioritize its 

response activities. The Authority must ensure that its risk management activities 

encompass: 

(1) compliance with applicable laws, rules, and regulations; 

(2) the avoidance of conflicts of interest, or the appearance thereof, in all aspects 

of the Authority’s operations, including investigation and enforcement, vendor 

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selection, personnel assignments and responsibilities, and actions by the Board of 

Directors or management; and 

(3) handling funds received and expended by the Authority, including 

revenue/expense policies, fundraising practices, contracting policies, travel 

policies, and real and personal property agreements and expenses. 

(b) Data security and privacy. The Authority must ensure the privacy and security of 

data, including all reasonable measures to protect the confidentiality of any sensitive 

health information (SHI), personally identifiable Information (PII), and sensitive PII 

(SPII) stored in its systems, including those operated by the anti-doping and medication 

control program, the Horseracing Integrity and Welfare Unit, and the Authority’s thirdparty contractors. The Authority must ensure a complete annual evaluation of the status 

of its overall information technology security program and practices, as audited by a 

qualified, independent, third-party auditor. The Authority must also ensure that it has 

policies, programs, and practices in place to protect SHI, PII, and SPII. The Authority 

must send a copy of the annual evaluation to Commission staff. 

(c) Vendor selection. Procurement actions estimated at over $10,000 must be 

accompanied by documented market research (e.g., comparing the prices and other terms 

offered by the selected vendor against the prices and other terms offered by at least two 

other vendors) to ensure lowest cost or best value for goods or services to be provided. 

The Authority should also develop policies and procedures covering procurement 

activities. 

(d) Notice. The Authority must provide advance notice to Commission staff of all 

significant Authority-planned events (e.g., press conferences, media events, summits, 

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etc.) via a calendar, a list, email, or some other reasonable means. The Authority must 

also summarize key aspects of all such events on its website within a reasonable 

timeframe. The Authority must also give Commission staff prompt notice after it has 

been alerted to significant, adverse events in the horseracing industry (e.g., adverse safety 

or medical events that might reasonably lead to sanctions, track closures, etc.). 

§ 1.155 Other best practices 

(a) Regular monitoring meetings. The Commission recommends that the Authority hold 

regular meetings with Commission staff to discuss upcoming or potential risks, 

challenges, and opportunities for improvement. 

(b) Records and information management. The Commission recommends that the 

Authority maintain records and information in sufficient detail to support the Authority’s 

programs and operations, as well as any records relating to its information management 

policies or procedures. The Commission expects that the Authority will make any of 

these records available to Commission staff upon request, to allow the Commission to 

carry out its statutorily mandated oversight. 

(c) Treatment of confidential information. The Commission recommends that the 

Authority’s submissions to the Commission not include any SHI, PII, or SPII, such as a 

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. If the Authority submits documents to the Commission 

containing confidential commercial or financial information, it should so designate that 

material and request confidential treatment pursuant to § 4.10(g). 

(d) Standing data requests. The Commission recommends that the Authority submit 

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Board of Directors minutes to the Commission’s Office of the Secretary within 15 days 

following each Board meeting. 

(e) Personnel and compensation. The Commission recommends that the Authority 

develop compensation policies and practices with the primary objective of attracting, 

developing, and retaining high-performing individuals capable of achieving the 

Authority’s mission. The Authority should strive to recruit a diverse team of industry 

leaders whose unique backgrounds, education, cultures, and perspectives help position 

the Authority as an effective and innovative self-regulatory organization. The 

Commission also recommends that the Authority conduct periodic salary benchmarks to 

ensure that employee compensation is in line with other like organizations. 

(f) Customer service. The Commission recommends that the Authority maintain publicly 

accessible points of contact (e.g., email addresses, phone numbers) and monitor the 

timeliness with which it responds to inquiries. In this regard, the Commission urges the 

Authority to develop a policy and associated metrics covering its customer service 

activities, to be incorporated into its strategic plan and its regular reporting to the 

Commission. 

(g) Travel. The Commission recommends that the Authority use standard, GSAestablished, published per diem rates when determining how much a person may spend 

on lodging, meals, and incidental expenses. Nevertheless, actual subsistence expenses 

may be authorized under unusual circumstances with justification and prior approval 

from the appropriate approving official. The Commission urges the Authority to prohibit 

the use of first-class travel (defined as the highest and most expensive class of service) by 

employees, except when no other option is available or when a disability or exceptional 

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security conditions require it. The Commission also recommends that the Authority not 

reimburse its contractors for first-class travel unless exceptional circumstances warrant. 

§ 1.156 Severability 

The provisions of this Subpart are separate and severable from one another. If any 

provision is stayed or determined to be invalid, it is the Commission's intention that the 

remaining provisions shall continue in effect. 

By direction of the Commission, 

April J. Tabor, 

Secretary. 

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