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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1754 Engrossed in House (EH)]

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116th CONGRESS
  2d Session
                                H. R. 1754

_______________________________________________________________________

                                 AN ACT

 
   To improve the integrity and safety of horseracing by requiring a 
uniform anti-doping and medication control program to be developed and 
   enforced by an independent Horseracing Anti-Doping and Medication 
                           Control Authority.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Horseracing Integrity and Safety Act 
of 2020''.

SEC. 2. DEFINITIONS.

    In this Act the following definitions apply:
            (1) Authority.--The term ``Authority'' means the 
        Horseracing Integrity and Safety Authority designated by 
        section 3(a).
            (2) Breeder.--The term ``breeder'' means a person who is in 
        the business of breeding covered horses.
            (3) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (4) Covered horse.--The term ``covered horse'' means any 
        Thoroughbred horse, or any other horse made subject to this Act 
        by election of the applicable State racing commission or the 
        breed governing organization for such horse under section 5(k), 
        during the period--
                    (A) beginning on the date of the horse's first 
                timed and reported workout at a racetrack that 
                participates in covered horseraces or at a training 
                facility; and
                    (B) ending on the date on which the Authority 
                receives written notice that the horse has been 
                retired.
            (5) Covered horserace.--The term ``covered horserace'' 
        means any horserace involving covered horses that has a 
        substantial relation to interstate commerce, including any 
        Thoroughbred horserace that is the subject of interstate off-
        track or advance deposit wagers.
            (6) 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.
            (7) 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.
            (8) 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.
            (9) 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 6(a).
            (10) Immediate family member.--The term ``immediate family 
        member'' shall include a spouse, domestic partner, mother, 
        father, aunt, uncle, sibling, or child.
            (11) Interstate off-track wager.--The term ``interstate 
        off-track wager'' has the meaning given such term in section 3 
        of the Interstate Horseracing Act of 1978 (15 U.S.C. 3002).
            (12) Jockey.--The term ``jockey'' means a rider or driver 
        of a covered horse in covered horseraces.
            (13) Owner.--The term ``owner'' means a person who holds an 
        ownership interest in one or more covered horses.
            (14) Program effective date.--The term ``program effective 
        date'' means July 1, 2022.
            (15) Racetrack.--The term ``racetrack'' means an 
        organization licensed by a State racing commission to conduct 
        covered horseraces.
            (16) Racetrack safety program.--The term ``racetrack safety 
        program'' means the program established under section 7(a).
            (17) Stakes race.--The term ``stakes race'' means any race 
        so designated by the racetrack at which such race is run, 
        including, without limitation, the races comprising the 
        Breeders' Cup World Championships and the races designated as 
        graded stakes by the American Graded Stakes Committee of the 
        Thoroughbred Owners and Breeders Association.
            (18) 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.
            (19) Trainer.--The term ``trainer'' means an individual 
        engaged in the training of covered horses.
            (20) Training facility.--The term ``training facility'' 
        means a location that is not a racetrack licensed by a State 
        racing commission that operates primarily to house covered 
        horses and conduct official timed workouts.
            (21) Veterinarian.--The term ``veterinarian'' means a 
        licensed veterinarian who provides veterinary services to 
        covered horses.
            (22) Workout.--The term ``workout'' means a timed running 
        of a horse over a predetermined distance not associated with a 
        race or its first qualifying race, if such race is made subject 
        to this Act by election under section 5(k) of the horse's breed 
        governing organization or the applicable State racing 
        commission.

SEC. 3. RECOGNITION OF THE HORSERACING INTEGRITY AND SAFETY AUTHORITY.

    (a) In General.--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.
    (b) Board of Directors.--
            (1) Membership.--The Authority shall be governed by a board 
        of directors (in this section referred to as the ``Board'') 
        comprised of nine members as follows:
                    (A) Independent members.--Five members of the Board 
                shall be independent members selected from outside the 
                equine industry.
                    (B) Industry members.--
                            (i) In general.--Four members of the Board 
                        shall be industry members selected from among 
                        the various equine constituencies.
                            (ii) Representation of 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.
            (2) Chair.--The chair of the Board shall be an independent 
        member described in paragraph (1)(A).
            (3) Bylaws.--The Board of the Authority shall be governed 
        by bylaws for the operation of the Authority with respect to--
                    (A) the administrative structure and employees of 
                the Authority;
                    (B) the establishment of standing committees;
                    (C) the procedures for filling vacancies on the 
                Board and the standing committees;
                    (D) term limits for members and termination of 
                membership; and
                    (E) any other matter the Board considers necessary.
    (c) Standing Committees.--
            (1) Anti-doping and medication control standing 
        committee.--
                    (A) In general.--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.
                    (B) Membership.--The anti-doping and medication 
                control standing committee shall be comprised of seven 
                members as follows:
                            (i) Independent members.--A majority of the 
                        members shall be independent members selected 
                        from outside the equine industry.
                            (ii) Industry members.--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.
                            (iii) Qualification.--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.
                    (C) Chair.--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).
            (2) Racetrack safety standing committee.--
                    (A) In general.--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.
                    (B) Membership.--The racetrack safety standing 
                committee shall be comprised of seven members as 
                follows:
                            (i) Independent members.--A majority of the 
                        members shall be independent members selected 
                        from outside the equine industry.
                            (ii) Industry members.--A minority of the 
                        members shall be industry members selected to 
                        represent the various equine constituencies.
                    (C) Chair.--The chair of the racetrack safety 
                standing committee shall be an industry member of the 
                Board described in subsection (b)(1)(B).
    (d) Nominating Committee.--
            (1) Membership.--
                    (A) In general.--The nominating committee of the 
                Authority shall be comprised of seven independent 
                members selected from business, sports, and academia.
                    (B) Initial membership.--The initial nominating 
                committee members shall be set forth in the governing 
                corporate documents of the Authority.
                    (C) Vacancies.--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.
            (2) Chair.--The chair of the nominating committee shall be 
        selected by the nominating committee from among the members of 
        the nominating committee.
            (3) Selection of members of the board and standing 
        committees.--
                    (A) Initial members.--The nominating committee 
                shall select the initial members of the Board and the 
                standing committees described in subsection (c).
                    (B) Subsequent members.-- The nominating committee 
                shall recommend individuals to fill any vacancy on the 
                Board or on such standing committees.
    (e) Conflicts of Interest.--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:
            (1) An individual who has a financial interest in, or 
        provides goods or services to, covered horses.
            (2) An official or officer--
                    (A) of an equine industry representative; or
                    (B) who serves in a governance or policymaking 
                capacity for an equine industry representative.
            (3) An employee of, or an individual who has a business or 
        commercial relationship with, an individual described in 
        paragraph (1) or (2).
            (4) An immediate family member of an individual described 
        in paragraph (1) or (2).
    (f) Funding.--
            (1) Initial funding.--
                    (A) In general.--Initial funding to establish the 
                Authority and underwrite its operations before the 
                program effective date shall be provided by loans 
                obtained by the Authority.
                    (B) Borrowing.--The Authority may borrow funds 
                toward the funding of its operations.
                    (C) Annual calculation of amounts required.--
                            (i) In general.--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--
                                    (I) to fund the State's 
                                proportionate share of the horseracing 
                                anti-doping and medication control 
                                program and the racetrack safety 
                                program for the next calendar year; and
                                    (II) to liquidate the State's 
                                proportionate share of any loan or 
                                funding shortfall in the current 
                                calendar year and any previous calendar 
                                year.
                            (ii) Basis of calculation.--The amounts 
                        calculated under clause (i) shall--
                                    (I) be based on--
                                            (aa) the annual budget of 
                                        the Authority for the following 
                                        calendar year, as approved by 
                                        the Board; and
                                            (bb) the projected amount 
                                        of covered racing starts for 
                                        the year in each State; and
                                    (II) take into account other 
                                sources of Authority revenue.
                            (iii) Requirements regarding budgets of 
                        authority.--
                                    (I) Initial budget.--The initial 
                                budget of the Authority shall require 
                                the approval of \2/3\ of the Board.
                                    (II) Subsequent budgets.--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.
                            (iv) Rate increases.--
                                    (I) In general.--A proposed 
                                increase in the amount required under 
                                this subparagraph shall be reported to 
                                the Commission.
                                    (II) Notice and comment.--The 
                                Commission shall publish in the Federal 
                                Register such a proposed increase and 
                                provide an opportunity for public 
                                comment.
            (2) Assessment and collection of fees by states.--
                    (A) Notice of election.--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.
                    (B) Requirement to remit fees.--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.
                    (C) Withdrawal of election.--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.
                    (D) Determination of methods.--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.
            (3) Assessment and collection of fees by the authority.--
                    (A) Calculation.--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.
                    (B) Allocation.--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.
                    (C) Assessment and collection.--
                            (i) In general.--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.
                            (ii) Remittance of fees.--Covered persons 
                        described in subparagraph (B) shall be required 
                        to remit such fees to the Authority.
                    (D) Limitation.--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.
            (4) Fees and fines.--Fees and fines imposed by the 
        Authority shall be allocated toward funding of the Authority 
        and its activities.
            (5) Rule of construction.--Nothing in this Act shall be 
        construed to require--
                    (A) the appropriation of any amount to the 
                Authority; or
                    (B) the Federal Government to guarantee the debts 
                of the Authority.
    (g) Quorum.--For all items where Board approval is required, the 
Authority shall have present a majority of independent members.

SEC. 4. FEDERAL TRADE COMMISSION OVERSIGHT.

    (a) In General.--The Authority shall submit to the Commission, in 
accordance with such rules as the Commission may prescribe under 
section 553 of title 5, United States Code, any proposed rule, or 
proposed modification to a rule, of the Authority relating to--
            (1) the bylaws of the Authority;
            (2) a list of permitted and prohibited medications, 
        substances, and methods, including allowable limits of 
        permitted medications, substances, and methods;
            (3) laboratory standards for accreditation and protocols;
            (4) standards for racing surface quality maintenance;
            (5) racetrack safety standards and protocols;
            (6) a program for injury and fatality data analysis;
            (7) a program of research and education on safety, 
        performance, and anti-doping and medication control;
            (8) a description of safety, performance, and anti-doping 
        and medication control rule violations applicable to covered 
        horses and covered persons;
            (9) a schedule of civil sanctions for violations;
            (10) a process or procedures for disciplinary hearings; and
            (11) a formula or methodology for determining assessments 
        described in section 3(f).
    (b) Publication and Comment.--
            (1) In general.--The Commission shall--
                    (A) publish in the Federal Register each proposed 
                rule or modification submitted under subsection (a); 
                and
                    (B) provide an opportunity for public comment.
            (2) Approval required.--A proposed rule, or a proposed 
        modification to a rule, of the Authority shall not take effect 
        unless the proposed rule or modification has been approved by 
        the Commission.
    (c) Decision on Proposed Rule or Modification to a Rule.--
            (1) In general.--Not later than 60 days after the date on 
        which a proposed rule or modification is published in the 
        Federal Register, the Commission shall approve or disapprove 
        the proposed rule or modification.
            (2) Conditions.--The Commission shall approve a proposed 
        rule or modification if the Commission finds that the proposed 
        rule or modification is consistent with--
                    (A) this Act; and
                    (B) applicable rules approved by the Commission.
            (3) Revision of proposed rule or modification.--
                    (A) In general.--In the case of disapproval of a 
                proposed rule or modification under this subsection, 
                not later than 30 days after the issuance of the 
                disapproval, the Commission shall make recommendations 
                to the Authority to modify the proposed rule or 
                modification.
                    (B) Resubmission.--The Authority may resubmit for 
                approval by the Commission a proposed rule or 
                modification that incorporates the modifications 
                recommended under subparagraph (A).
    (d) Proposed Standards and Procedures.--
            (1) In general.--The Authority shall submit to the 
        Commission any proposed rule, standard, or procedure developed 
        by the Authority to carry out the horseracing anti-doping and 
        medication control program or the racetrack safety program.
            (2) Notice and comment.--The Commission shall publish in 
        the Federal Register any such proposed rule, standard, or 
        procedure and provide an opportunity for public comment.
    (e) Interim Final Rules.--The Commission may adopt an interim final 
rule, to take effect immediately, under conditions specified in section 
553(b)(B) of title 5, United States Code, if the Commission finds that 
such a rule is necessary to protect--
            (1) the health and safety of covered horses; or
            (2) the integrity of covered horseraces and wagering on 
        those horseraces.

SEC. 5. JURISDICTION OF THE COMMISSION AND THE HORSERACING INTEGRITY 
              AND SAFETY AUTHORITY.

    (a) In General.--Beginning on the program effective date, the 
Commission, the Authority, and the anti-doping and medication control 
enforcement agency, each within the scope of their powers and 
responsibilities under this Act, as limited by subsection (j), shall--
            (1) implement and enforce the horseracing anti-doping and 
        medication control program and the racetrack safety program;
            (2) exercise independent and exclusive national authority 
        over--
                    (A) the safety, welfare, and integrity of covered 
                horses, covered persons, and covered horseraces; and
                    (B) all horseracing safety, performance, and anti-
                doping and medication control matters for covered 
                horses, covered persons, and covered horseraces; and
            (3) have safety, performance, and anti-doping and 
        medication control authority over covered persons similar to 
        such authority of the State racing commissions before the 
        program effective date.
    (b) Preemption.--The rules of the Authority promulgated in 
accordance with this Act shall preempt any provision of State law or 
regulation with respect to matters within the jurisdiction of the 
Authority under this Act, as limited by subsection (j). Nothing 
contained in this Act shall be construed to limit the authority of the 
Commission under any other provision of law.
    (c) Duties.--
            (1) In general.--The Authority--
                    (A) shall develop uniform procedures and rules 
                authorizing--
                            (i) access to offices, racetrack 
                        facilities, other places of business, books, 
                        records, and personal property of covered 
                        persons that are used in the care, treatment, 
                        training, and racing of covered horses;
                            (ii) issuance and enforcement of subpoenas 
                        and subpoenas duces tecum; and
                            (iii) other investigatory powers of the 
                        nature and scope exercised by State racing 
                        commissions before the program effective date; 
                        and
                    (B) with respect to an unfair or deceptive act or 
                practice described in section 10, may recommend that 
                the Commission commence an enforcement action.
            (2) Approval of commission.--The procedures and rules 
        developed under paragraph (1)(A) shall be subject to approval 
        by the Commission in accordance with section 4.
    (d) Registration of Covered Persons With Authority.--
            (1) In general.--As a condition of participating in covered 
        races and in the care, ownership, treatment, and training of 
        covered horses, a covered person shall register with the 
        Authority in accordance with rules promulgated by the Authority 
        and approved by the Commission in accordance with section 4.
            (2) Agreement with respect to authority rules, standards, 
        and procedures.--Registration under this subsection shall 
        include an agreement by the covered person to be subject to and 
        comply with the rules, standards, and procedures developed and 
        approved under subsection (c).
            (3) Cooperation.--A covered person registered under this 
        subsection shall, at all times--
                    (A) cooperate with the Commission, the Authority, 
                the anti-doping and medication control enforcement 
                agency, and any respective designee, during any civil 
                investigation; and
                    (B) respond truthfully and completely to the best 
                of the knowledge of the covered person if questioned by 
                the Commission, the Authority, the anti-doping and 
                medication control enforcement agency, or any 
                respective designee.
            (4) Failure to comply.--Any failure of a covered person to 
        comply with this subsection shall be a violation of section 
        8(a)(2)(G).
    (e) Enforcement of Programs.--
            (1) Anti-doping and medication control enforcement 
        agency.--
                    (A) Agreement with usada.--The Authority shall seek 
                to enter into an agreement with the United States Anti-
                Doping Agency under which the Agency acts as the anti-
                doping and medication control enforcement agency under 
                this Act for services consistent with the horseracing 
                anti-doping and medication control program.
                    (B) Agreement with other entity.--If the Authority 
                and the United States Anti-Doping Agency are unable to 
                enter into the agreement described in subparagraph (A), 
                the Authority shall enter into an agreement with an 
                entity that is nationally recognized as being a 
                medication regulation agency equal in qualification to 
                the United States Anti-Doping Agency to act as the 
                anti-doping and medication control enforcement agency 
                under this Act for services consistent with the 
                horseracing anti-doping and medication control program.
                    (C) Negotiations.--Any negotiations under this 
                paragraph shall be conducted in good faith and designed 
                to achieve efficient, effective best practices for 
                anti-doping and medication control and enforcement on 
                commercially reasonable terms.
                    (D) Elements of agreement.--Any agreement under 
                this paragraph shall include a description of the scope 
                of work, performance metrics, reporting obligations, 
                and budgets of the United States Anti-Doping Agency 
                while acting as the anti-doping and medication control 
                enforcement agency under this Act, as well as a 
                provision for the revision of the agreement to increase 
                in the scope of work as provided for in subsection (k), 
                and any other matter the Authority considers 
                appropriate.
                    (E) Duties and powers of enforcement agency.--The 
                anti-doping and medication control enforcement agency 
                under an agreement under this paragraph shall--
                            (i) serve as the independent anti-doping 
                        and medication control enforcement organization 
                        for covered horses, covered persons, and 
                        covered horseraces, implementing the anti-
                        doping and medication control program on behalf 
                        of the Authority;
                            (ii) ensure that covered horses and covered 
                        persons are deterred from using or 
                        administering medications, substances, and 
                        methods in violation of the rules established 
                        in accordance with this Act;
                            (iii) implement anti-doping education, 
                        research, testing, compliance and adjudication 
                        programs designed to prevent covered persons 
                        and covered horses from using or administering 
                        medications, substances, and methods in 
                        violation of the rules established in 
                        accordance with this Act;
                            (iv) exercise the powers specified in 
                        section 6(c)(4) in accordance with that 
                        section; and
                            (v) implement and undertake any other 
                        responsibilities specified in the agreement.
                    (F) Term and extension.--
                            (i) Term of initial agreement.--The initial 
                        agreement entered into by the Authority under 
                        this paragraph shall be in effect for the 5-
                        year period beginning on the program effective 
                        date.
                            (ii) Extension.--At the end of the 5-year 
                        period described in clause (i), the Authority 
                        may--
                                    (I) extend the term of the initial 
                                agreement under this paragraph for such 
                                additional term as is provided by the 
                                rules of the Authority and consistent 
                                with this Act; or
                                    (II) enter into an agreement 
                                meeting the requirements of this 
                                paragraph with an entity described by 
                                subparagraph (B) for such term as is 
                                provided by such rules and consistent 
                                with this Act.
            (2) Agreements for enforcement by state racing 
        commissions.--
                    (A) State racing commissions.--
                            (i) Racetrack safety program.--The 
                        Authority may enter into agreements with State 
                        racing commissions for services consistent with 
                        the enforcement of the racetrack safety 
                        program.
                            (ii) Anti-doping and medication control 
                        program.--The anti-doping and medication 
                        control enforcement agency may enter into 
                        agreements with State racing commissions for 
                        services consistent with the enforcement of the 
                        anti-doping and medication control program.
                    (B) Elements of agreements.--Any agreement under 
                this paragraph shall include a description of the scope 
                of work, performance metrics, reporting obligations, 
                budgets, and any other matter the Authority considers 
                appropriate.
            (3) Enforcement of standards.--The Authority may coordinate 
        with State racing commissions and other State regulatory 
        agencies to monitor and enforce racetrack compliance with the 
        standards developed under paragraphs (1) and (2) of section 
        7(c).
    (f) Procedures With Respect to Rules of Authority.--
            (1) Anti-doping and medication control.--
                    (A) In general.--Recommendations for rules 
                regarding anti-doping and medication control shall be 
                developed in accordance with section 6.
                    (B) Consultation.--The anti-doping and medication 
                control enforcement agency shall consult with the anti-
                doping and medication control standing committee and 
                the Board of the Authority on all anti-doping and 
                medication control rules of the Authority.
            (2) Racetrack safety.--Recommendations for rules regarding 
        racetrack safety shall be developed by the racetrack safety 
        standing committee of the Authority.
    (g) Issuance of Guidance.--
            (1) The Authority may issue guidance that--
                    (A) sets forth--
                            (i) an interpretation of an existing rule, 
                        standard, or procedure of the Authority; or
                            (ii) a policy or practice with respect to 
                        the administration or enforcement of such an 
                        existing rule, standard, or procedure; and
                    (B) relates solely to--
                            (i) the administration of the Authority; or
                            (ii) any other matter, as specified by the 
                        Commission, by rule, consistent with the public 
                        interest and the purposes of this subsection.
            (2) Submittal to commission.--The Authority shall submit to 
        the Commission any guidance issued under paragraph (1).
            (3) Immediate effect.--Guidance issued under paragraph (1) 
        shall take effect on the date on which the guidance is 
        submitted to the Commission under paragraph (2).
    (h) Subpoena and Investigatory Authority.--The Authority shall have 
subpoena and investigatory authority with respect to civil violations 
committed under its jurisdiction.
    (i) Civil Penalties.--The Authority shall develop a list of civil 
penalties with respect to the enforcement of rules for covered persons 
and covered horseraces under its jurisdiction.
    (j) Civil Actions.--
            (1) In general.--In addition to civil sanctions imposed 
        under section 8, the Authority may commence a civil action 
        against a covered person or racetrack that has engaged, is 
        engaged, or is about to engage, in acts or practices 
        constituting a violation of this Act or any rule established 
        under this Act in the proper district court of the United 
        States, the United States District Court for the District of 
        Columbia, or the United States courts of any territory or other 
        place subject to the jurisdiction of the United States, to 
        enjoin such acts or practices, to enforce any civil sanctions 
        imposed under that section, and for all other relief to which 
        the Authority may be entitled.
            (2) Injunctions and restraining orders.--With respect to a 
        civil action commenced under paragraph (1), upon a proper 
        showing, a permanent or temporary injunction or restraining 
        order shall be granted without bond.
    (k) Limitations on Authority.--
            (1) Prospective application.--The jurisdiction and 
        authority of the Authority and the Commission with respect to 
        the horseracing anti-doping and medication control program and 
        the racetrack safety program shall be prospective only.
            (2) Previous matters.--
                    (A) In general.--The Authority and the Commission 
                may not investigate, prosecute, adjudicate, or penalize 
                conduct in violation of the horseracing anti-doping and 
                medication control program and the racetrack safety 
                program that occurs before the program effective date.
                    (B) State racing commission.--With respect to 
                conduct described in subparagraph (A), the applicable 
                State racing commission shall retain authority until 
                the final resolution of the matter.
            (3) Other laws unaffected.--This Act shall not be construed 
        to modify, impair or restrict the operation of the general laws 
        or regulations, as may be amended from time to time, of the 
        United States, the States and their political subdivisions 
        relating to criminal conduct, cruelty to animals, matters 
        unrelated to antidoping, medication control and racetrack and 
        racing safety of covered horses and covered races, and the use 
        of medication in human participants in covered races.
    (l) Election for Other Breed Coverage Under Act.--
            (1) In general.--A State racing commission or a breed 
        governing organization for a breed of horses other than 
        Thoroughbred horses may elect to have such breed be covered by 
        this Act by the filing of a designated election form and 
        subsequent approval by the Authority. A State racing commission 
        may elect to have a breed covered by this Act for the 
        applicable State only.
            (2) Election conditional on funding mechanism.--A 
        commission or organization may not make an election under 
        paragraph (1) unless the commission or organization has in 
        place a mechanism to provide sufficient funds to cover the 
        costs of the administration of this Act with respect to the 
        horses that will be covered by this Act as a result of the 
        election.
            (3) Apportionment.--The Authority shall apportion costs 
        described in paragraph (2) in connection with an election under 
        paragraph (1) fairly among all impacted segments of the 
        horseracing industry, subject to approval by the Commission in 
        accordance with section 4. Such apportionment may not provide 
        for the allocation of costs or funds among breeds of horses.

SEC. 6. HORSERACING ANTI-DOPING AND MEDICATION CONTROL PROGRAM.

    (a) Program Required.--
            (1) In general.--Not later than the program effective date, 
        and after notice and an opportunity for public comment in 
        accordance with section 4, the Authority shall establish a 
        horseracing anti-doping and medication control program 
        applicable to all covered horses, covered persons, and covered 
        horseraces in accordance with the registration of covered 
        persons under section 5(d).
            (2) Consideration of other breeds.--In developing the 
        horseracing anti-doping and medication control program with 
        respect to a breed of horse that is made subject to this Act by 
        election of a State racing commission or the breed governing 
        organization for such horse under section 5(k), the Authority 
        shall consider the unique characteristics of such breed.
    (b) Considerations in Development of Program.--In developing the 
horseracing anti-doping and medication control program, the Authority 
shall take into consideration the following:
            (1) Covered horses should compete only when they are free 
        from the influence of medications, other foreign substances, 
        and methods that affect their performance.
            (2) Covered horses that are injured or unsound should not 
        train or participate in covered races, and the use of 
        medications, other foreign substances, and treatment methods 
        that mask or deaden pain in order to allow injured or unsound 
        horses to train or race should be prohibited.
            (3) Rules, standards, procedures, and protocols regulating 
        medication and treatment methods for covered horses and covered 
        races should be uniform and uniformly administered nationally.
            (4) To the extent consistent with this Act, consideration 
        should be given to international anti-doping and medication 
        control standards of the International Federation of 
        Horseracing Authorities and the Principles of Veterinary 
        Medical Ethics of the American Veterinary Medical Association.
            (5) The administration of medications and treatment methods 
        to covered horses should be based upon an examination and 
        diagnosis that identifies an issue requiring treatment for 
        which the medication or method represents an appropriate 
        component of treatment.
            (6) The amount of therapeutic medication that a covered 
        horse receives should be the minimum necessary to address the 
        diagnosed health concerns identified during the examination and 
        diagnostic process.
            (7) The welfare of covered horses, the integrity of the 
        sport, and the confidence of the betting public require full 
        disclosure to regulatory authorities regarding the 
        administration of medications and treatments to covered horses.
    (c) Activities.--The following activities shall be carried out 
under the horseracing anti-doping and medication control program:
            (1) Standards for anti-doping and medication control.--Not 
        later than 120 days before the program effective date, the 
        Authority shall issue, by rule--
                    (A) uniform standards for--
                            (i) the administration of medication to 
                        covered horses by covered persons; and
                            (ii) laboratory testing accreditation and 
                        protocols; and
                    (B) a list of permitted and prohibited medications, 
                substances, and methods, including allowable limits of 
                permitted medications, substances, and methods.
            (2) Review process for administration of medication.--The 
        development of a review process for the administration of any 
        medication to a covered horse during the 48-hour period 
        preceding the next racing start of the covered horse.
            (3) Agreement requirements.--The development of 
        requirements with respect to agreements under section 5(e).
            (4) Anti-doping and medication control enforcement 
        agency.--
                    (A) Control rules, protocols, etc.--Except as 
                provided in paragraph (5), the anti-doping and 
                medication control program enforcement agency under 
                section 5(e) shall, in consultation with the anti-
                doping and medication control standing committee of the 
                Authority and consistent with international best 
                practices, develop and recommend anti-doping and 
                medication control rules, protocols, policies, and 
                guidelines for approval by the Authority.
                    (B) Results management.--The anti-doping and 
                medication control enforcement agency shall conduct and 
                oversee anti-doping and medication control results 
                management, including independent investigations, 
                charging and adjudication of potential medication 
                control rule violations, and the enforcement of any 
                civil sanctions for such violations. Any final decision 
                or civil sanction of the anti-doping and medication 
                control enforcement agency under this subparagraph 
                shall be the final decision or civil sanction of the 
                Authority, subject to review in accordance with section 
                9.
                    (C) Testing.--The anti-doping enforcement agency 
                shall perform and manage test distribution planning 
                (including intelligence-based testing), the sample 
                collection process, and in-competition and out-of-
                competition testing (including no-advance-notice 
                testing).
                    (D) Testing laboratories.--The anti-doping and 
                medication control enforcement agency shall accredit 
                testing laboratories based upon the standards 
                established under this Act, and shall monitor, test, 
                and audit accredited laboratories to ensure continuing 
                compliance with accreditation standards.
            (5) Anti-doping and medication control standing 
        committee.--The anti-doping and medication control standing 
        committee shall, in consultation with the anti-doping and 
        medication control enforcement agency, develop lists of 
        permitted and prohibited medications, methods, and substances 
        for recommendation to, and approval by, the Authority. Any such 
        list may prohibit the administration of any substance or method 
        to a horse at any time after such horse becomes a covered horse 
        if the Authority determines such substance or method has a 
        long-term degrading effect on the soundness of a horse.
    (d) Prohibition.--Except as provided in subsections (e) and (f), 
the horseracing anti-doping and medication control program shall 
prohibit the administration of any prohibited or otherwise permitted 
substance to a covered horse within 48 hours of its next racing start, 
effective as of the program effective date.
    (e) Advisory Committee Study and Report.--
            (1) In general.--Not later than the program effective date, 
        the Authority shall convene an advisory committee comprised of 
        horseracing anti-doping and medication control industry 
        experts, including a member designated by the anti-doping and 
        medication control enforcement agency, to conduct a study on 
        the use of furosemide on horses during the 48-hour period 
        before the start of a race, including the effect of furosemide 
        on equine health and the integrity of competition and any other 
        matter the Authority considers appropriate.
            (2) Report.--Not later than three years after the program 
        effective date, the Authority shall direct the advisory 
        committee convened under paragraph (1) to submit to the 
        Authority a written report on the study conducted under that 
        paragraph that includes recommended changes, if any, to the 
        prohibition in subsection (d).
            (3) Modification of prohibition.--
                    (A) In general.--After receipt of the report 
                required by paragraph (2), the Authority may, by 
                unanimous vote of the Board of the Authority, modify 
                the prohibition in subsection (d) and, notwithstanding 
                subsection (f), any such modification shall apply to 
                all States beginning on the date that is three years 
                after the program effective date.
                    (B) Condition.--In order for a unanimous vote 
                described in subparagraph (A) to effect a modification 
                of the prohibition in subsection (d), the vote must 
                include unanimous adoption of each of the following 
                findings:
                            (i) That the modification is warranted.
                            (ii) That the modification is in the best 
                        interests of horse racing.
                            (iii) That furosemide has no performance 
                        enhancing effect on individual horses.
                            (iv) That public confidence in the 
                        integrity and safety of racing would not be 
                        adversely affected by the modification.
    (f) Exemption.--
            (1) In general.--Except as provided in paragraph (2), only 
        during the three-year period beginning on the program effective 
        date, a State racing commission may submit to the Authority, at 
        such time and in such manner as the Authority may require, a 
        request for an exemption from the prohibition in subsection (d) 
        with respect to the use of furosemide on covered horses during 
        such period.
            (2) Exceptions.--An exemption under paragraph (1) may not 
        be requested for--
                    (A) two-year-old covered horses; or
                    (B) covered horses competing in stakes races.
            (3) Contents of request.--A request under paragraph (1) 
        shall specify the applicable State racing commission's 
        requested limitations on the use of furosemide that would apply 
        to the State under the horseracing anti-doping and medication 
        control program during such period. Such limitations shall be 
        no less restrictive on the use and administration of furosemide 
        than the restrictions set forth in State's laws and regulations 
        in effect as of September 1, 2020.
            (4) Grant of exemption.--Subject to subsection (e)(3), the 
        Authority shall grant an exemption requested under paragraph 
        (1) for the remainder of such period and shall allow the use of 
        furosemide on covered horses in the applicable State, in 
        accordance with the requested limitations.
    (g) Baseline Anti-doping and Medication Control Rules.--
            (1) In general.--Subject to paragraph (3), the baseline 
        anti-doping and medication control rules described in paragraph 
        (2) shall--
                    (A) constitute the initial rules of the horseracing 
                anti-doping and medication control program; and
                    (B) except as exempted pursuant to subsections (e) 
                and (f), remain in effect at all times after the 
                program effective date.
            (2) Baseline anti-doping medication control rules 
        described.--
                    (A) In general.--The baseline anti-doping and 
                medication control rules described in this paragraph 
                are the following:
                            (i) The lists of permitted and prohibited 
                        substances (including drugs, medications, and 
                        naturally occurring substances and 
                        synthetically occurring substances) in effect 
                        for the International Federation of Horseracing 
                        Authorities, including the International 
                        Federation of Horseracing Authorities 
                        International Screening Limits for urine, dated 
                        May 2019, and the International Federation of 
                        Horseracing Authorities International Screening 
                        Limits for plasma, dated May 2019.
                            (ii) The World Anti-Doping Agency 
                        International Standard for Laboratories 
                        (version 10.0), dated November 12, 2019.
                            (iii) The Association of Racing 
                        Commissioners International out-of-competition 
                        testing standards, Model Rules of Racing 
                        (version 9.2).
                            (iv) The Association of Racing 
                        Commissioners International penalty and 
                        multiple medication violation rules, Model 
                        Rules of Racing (version 6.2).
                    (B) Conflict of rules.--In the case of a conflict 
                among the rules described in subparagraph (A), the most 
                stringent rule shall apply.
            (3) Modifications to baseline rules.--
                    (A) Development by anti-doping and medication 
                control standing committee.--The anti-doping and 
                medication control standing committee, in consultation 
                with the anti-doping and medication control enforcement 
                agency, may develop and submit to the Authority for 
                approval by the Authority proposed modifications to the 
                baseline anti-doping and medication control rules.
                    (B) Authority approval.--If the Authority approves 
                a proposed modification under this paragraph, the 
                proposed modification shall be submitted to and 
                considered by the Commission in accordance with section 
                4.
                    (C) Anti-doping and medication control enforcement 
                agency veto authority.--The Authority shall not approve 
                any proposed modification that renders an anti-doping 
                and medication control rule less stringent than the 
                baseline anti-doping and medication control rules 
                described in paragraph (2) (including by increasing 
                permitted medication thresholds, adding permitted 
                medications, removing prohibited medications, or 
                weakening enforcement mechanisms) without the approval 
                of the anti-doping and medication control enforcement 
                agency.

SEC. 7. RACETRACK SAFETY PROGRAM.

    (a) Establishment and Considerations.--
            (1) In general.--Not later than the program effective date, 
        and after notice and an opportunity for public comment in 
        accordance with section 4, the Authority shall establish a 
        racetrack safety program applicable to all covered horses, 
        covered persons, and covered horseraces in accordance with the 
        registration of covered persons under section 5(d).
            (2) Considerations in development of safety program.--In 
        the development of the horseracing safety program for covered 
        horses, covered persons, and covered horseraces, the Authority 
        and the Commission shall take into consideration existing 
        safety standards including the National Thoroughbred Racing 
        Association Safety and Integrity Alliance Code of Standards, 
        the International Federation of Horseracing Authority's 
        International Agreement on Breeding, Racing, and Wagering, and 
        the British Horseracing Authority's Equine Health and Welfare 
        program.
    (b) Elements of Horseracing Safety Program.--The horseracing safety 
program shall include the following:
            (1) A set of training and racing safety standards and 
        protocols taking into account regional differences and the 
        character of differing racing facilities.
            (2) A uniform set of training and racing safety standards 
        and protocols consistent with the humane treatment of covered 
        horses, which may include lists of permitted and prohibited 
        practices or methods (such as crop use).
            (3) A racing surface quality maintenance system that--
                    (A) takes into account regional differences and the 
                character of differing racing facilities; and
                    (B) may include requirements for track surface 
                design and consistency and established standard 
                operating procedures related to track surface, 
                monitoring, and maintenance (such as standardized 
                seasonal assessment, daily tracking, and measurement).
            (4) A uniform set of track safety standards and protocols, 
        that may include rules governing oversight and movement of 
        covered horses and human and equine injury reporting and 
        prevention.
            (5) Programs for injury and fatality data analysis, that 
        may include pre- and post-training and race inspections, use of 
        a veterinarian's list, and concussion protocols.
            (6) The undertaking of investigations at racetrack and non-
        racetrack facilities related to safety violations.
            (7) Procedures for investigating, charging, and 
        adjudicating violations and for the enforcement of civil 
        sanctions for violations.
            (8) A schedule of civil sanctions for violations.
            (9) Disciplinary hearings, which may include binding 
        arbitration, civil sanctions, and research.
            (10) Management of violation results.
            (11) Programs relating to safety and performance research 
        and education.
            (12) An evaluation and accreditation program that ensures 
        that racetracks in the United States meet the standards 
        described in the elements of the Horseracing Safety Program.
    (c) Activities.--The following activities shall be carried out 
under the racetrack safety program:
            (1) Standards for racetrack safety.--The development, by 
        the racetrack safety standing committee of the Authority in 
        section 3(c)(2) of uniform standards for racetrack and 
        horseracing safety.
            (2) Standards for safety and performance accreditation.--
                    (A) In general.--Not later than 120 days before the 
                program effective date, the Authority, in consultation 
                with the racetrack safety standing committee, shall 
                issue, by rule in accordance with section 4--
                            (i) safety and performance standards of 
                        accreditation for racetracks; and
                            (ii) the process by which a racetrack may 
                        achieve and maintain accreditation by the 
                        Authority.
                    (B) Modifications.--
                            (i) In general.--The Authority may modify 
                        rules establishing the standards issued under 
                        subparagraph (A), as the Authority considers 
                        appropriate.
                            (ii) Notice and comment.--The Commission 
                        shall publish in the Federal Register any 
                        proposed rule of the Authority, and provide an 
                        opportunity for public comment with respect to, 
                        any modification under clause (i) in accordance 
                        with section 4.
                    (C) Extension of provisional or interim 
                accreditation.--The Authority may, by rule in 
                accordance with section 4, extend provisional or 
                interim accreditation to a racetrack accredited by the 
                National Thoroughbred Racing Association Safety and 
                Integrity Alliance on a date before the program 
                effective date.
            (3) Nationwide safety and performance database.--
                    (A) In general.--Not later than one year after the 
                program effective date, and after notice and an 
                opportunity for public comment in accordance with 
                section 4, the Authority, in consultation with the 
                Commission, shall develop and maintain a nationwide 
                database of racehorse safety, performance, health, and 
                injury information for the purpose of conducting an 
                epidemiological study.
                    (B) Collection of information.--In accordance with 
                the registration of covered persons under section 5(d), 
                the Authority may require covered persons to collect 
                and submit to the database described in subparagraph 
                (A) such information as the Authority may require to 
                further the goal of increased racehorse welfare.

SEC. 8. RULE VIOLATIONS AND CIVIL SANCTIONS.

    (a) Description of Rule Violations.--
            (1) In general.--The Authority shall issue, by rule in 
        accordance with section 4, a description of safety, 
        performance, and anti-doping and medication control rule 
        violations applicable to covered horses and covered persons.
            (2) Elements.--The description of rule violations 
        established under paragraph (1) may include the following:
                    (A) With respect to a covered horse, strict 
                liability for covered trainers for--
                            (i) the presence of a prohibited substance 
                        or method in a sample or the use of a 
                        prohibited substance or method;
                            (ii) the presence of a permitted substance 
                        in a sample in excess of the amount allowed by 
                        the horseracing anti-doping and medication 
                        control program; and
                            (iii) the use of a permitted method in 
                        violation of the applicable limitations 
                        established under the horseracing anti-doping 
                        and medication control program.
                    (B) Attempted use of a prohibited substance or 
                method on a covered horse.
                    (C) Possession of any prohibited substance or 
                method.
                    (D) Attempted possession of any prohibited 
                substance or method.
                    (E) Administration or attempted administration of 
                any prohibited substance or method on a covered horse.
                    (F) Refusal or failure, without compelling 
                justification, to submit a covered horse for sample 
                collection.
                    (G) Failure to cooperate with the Authority or an 
                agent of the Authority during any investigation.
                    (H) Failure to respond truthfully, to the best of a 
                covered person's knowledge, to a question of the 
                Authority or an agent of the Authority with respect to 
                any matter under the jurisdiction of the Authority.
                    (I) Tampering or attempted tampering with the 
                application of the safety, performance, or anti-doping 
                and medication control rules or process adopted by the 
                Authority, including--
                            (i) the intentional interference, or an 
                        attempt to interfere, with an official or agent 
                        of the Authority;
                            (ii) the procurement or the provision of 
                        fraudulent information to the Authority or 
                        agent; and
                            (iii) the intimidation of, or an attempt to 
                        intimidate, a potential witness.
                    (J) Trafficking or attempted trafficking in any 
                prohibited substance or method.
                    (K) Assisting, encouraging, aiding, abetting, 
                conspiring, covering up, or any other type of 
                intentional complicity involving a safety, performance, 
                or anti-doping and medication control rule violation or 
                the violation of a period of suspension or eligibility.
                    (L) Threatening or seeking to intimidate a person 
                with the intent of discouraging the person from the 
                good faith reporting to the Authority, an agent of the 
                Authority or the Commission, or the anti-doping and 
                medication control enforcement agency under section 
                5(e), of information that relates to--
                            (i) an alleged safety, performance, or 
                        anti-doping and medication control rule 
                        violation; or
                            (ii) alleged noncompliance with a safety, 
                        performance, or anti-doping and medication 
                        control rule.
    (b) Testing Laboratories.--
            (1) Accreditation and standards.--Not later than 120 days 
        before the program effective date, the Authority shall, in 
        consultation with the anti-doping and medication control 
        enforcement agency, establish, by rule in accordance with 
        section 4--
                    (A) standards of accreditation for laboratories 
                involved in testing samples from covered horses;
                    (B) the process for achieving and maintaining 
                accreditation; and
                    (C) the standards and protocols for testing such 
                samples.
            (2) Administration.--The accreditation of laboratories and 
        the conduct of audits of accredited laboratories to ensure 
        compliance with Authority rules shall be administered by the 
        anti-doping and medication control enforcement agency. The 
        anti-doping and medication control enforcement agency shall 
        have the authority to require specific test samples to be 
        directed to and tested by laboratories having special expertise 
        in the required tests.
            (3) Extension of provisional or interim accreditation.--The 
        Authority may, by rule in accordance with section 4, extend 
        provisional or interim accreditation to a laboratory accredited 
        by the Racing Medication and Testing Consortium, Inc., on a 
        date before the program effective date.
            (4) Selection of laboratories.--
                    (A) In general.--Except as provided in paragraph 
                (2), a State racing commission may select a laboratory 
                accredited in accordance with the standards established 
                under paragraph (1) to test samples taken in the 
                applicable State.
                    (B) Selection by the authority.--If a State racing 
                commission does not select an accredited laboratory 
                under subparagraph (A), the Authority shall select such 
                a laboratory to test samples taken in the State 
                concerned.
    (c) Results Management and Disciplinary Process.--
            (1) In general.--Not later than 120 days before the program 
        effective date, the Authority shall establish in accordance 
        with section 4--
                    (A) rules for safety, performance, and anti-doping 
                and medication control results management; and
                    (B) the disciplinary process for safety, 
                performance, and anti-doping and medication control 
                rule violations.
            (2) Elements.--The rules and process established under 
        paragraph (1) shall include the following:
                    (A) Provisions for notification of safety, 
                performance, and anti-doping and medication control 
                rule violations.
                    (B) Hearing procedures.
                    (C) Standards for burden of proof.
                    (D) Presumptions.
                    (E) Evidentiary rules.
                    (F) Appeals.
                    (G) Guidelines for confidentiality and public 
                reporting of decisions.
            (3) Due process.--The rules established under paragraph (1) 
        shall provide for adequate due process, including impartial 
        hearing officers or tribunals commensurate with the seriousness 
        of the alleged safety, performance, or anti-doping and 
        medication control rule violation and the possible civil 
        sanctions for such violation.
    (d) Civil Sanctions.--
            (1) In general.--The Authority shall establish uniform 
        rules, in accordance with section 4, imposing civil sanctions 
        against covered persons or covered horses for safety, 
        performance, and anti-doping and medication control rule 
        violations.
            (2) Requirements.--The rules established under paragraph 
        (1) shall--
                    (A) take into account the unique aspects of 
                horseracing;
                    (B) be designed to ensure fair and transparent 
                horseraces; and
                    (C) deter safety, performance, and anti-doping and 
                medication control rule violations.
            (3) Severity.--The civil sanctions under paragraph (1) may 
        include--
                    (A) lifetime bans from horseracing, disgorgement of 
                purses, monetary fines and penalties, and changes to 
                the order of finish in covered races; and
                    (B) with respect to anti-doping and medication 
                control rule violators, an opportunity to reduce the 
                applicable civil sanctions that is comparable to the 
                opportunity provided by the Protocol for Olympic 
                Movement Testing of the United States Anti-Doping 
                Agency.
    (e) Modifications.--The Authority may propose a modification to any 
rule established under this section as the Authority considers 
appropriate, and the proposed modification shall be submitted to and 
considered by the Commission in accordance with section 4.

SEC. 9. REVIEW OF FINAL DECISIONS OF THE AUTHORITY.

    (a) Notice of Civil Sanctions.-- If the Authority imposes a final 
civil sanction for a violation committed by a covered person pursuant 
to the rules or standards of the Authority, the Authority shall 
promptly submit to the Commission notice of the civil sanction in such 
form as the Commission may require.
    (b) Review by Administrative Law Judge.--
            (1) In general.--With respect to a final civil sanction 
        imposed by the Authority, on application by the Commission or a 
        person aggrieved by the civil sanction filed not later than 30 
        days after the date on which notice under subsection (a) is 
        submitted, the civil sanction shall be subject to de novo 
        review by an administrative law judge.
            (2) Nature of review.--
                    (A) In general.--In matters reviewed under this 
                subsection, the administrative law judge shall 
                determine whether--
                            (i) a person has engaged in such acts or 
                        practices, or has omitted such acts or 
                        practices, as the Authority has found the 
                        person to have engaged in or omitted;
                            (ii) such acts, practices, or omissions are 
                        in violation of this Act or the anti-doping and 
                        medication control or racetrack safety rules 
                        approved by the Commission; or
                            (iii) the final civil sanction of the 
                        Authority was arbitrary, capricious, an abuse 
                        of discretion, or otherwise not in accordance 
                        with law.
                    (B) Conduct of hearing.--An administrative law 
                judge shall conduct a hearing under this subsection in 
                such a manner as the Commission may specify by rule, 
                which shall conform to section 556 of title 5, United 
                States Code.
            (3) Decision by administrative law judge.--
                    (A) In general.--With respect to a matter reviewed 
                under this subsection, an administrative law judge--
                            (i) shall render a decision not later than 
                        60 days after the conclusion of the hearing;
                            (ii) may affirm, reverse, modify, set 
                        aside, or remand for further proceedings, in 
                        whole or in part, the final civil sanction of 
                        the Authority; and
                            (iii) may make any finding or conclusion 
                        that, in the judgment of the administrative law 
                        judge, is proper and based on the record.
                    (B) Final decision.--A decision under this 
                paragraph shall constitute the decision of the 
                Commission without further proceedings unless a notice 
                or an application for review is timely filed under 
                subsection (c).
    (c) Review by Commission.--
            (1) Notice of review by commission.--The Commission may, on 
        its own motion, review any decision of an administrative law 
        judge issued under subsection (b)(3) by providing written 
        notice to the Authority and any interested party not later than 
        30 days after the date on which the administrative law judge 
        issues the decision.
            (2) Application for review.--
                    (A) In general.--The Authority or a person 
                aggrieved by a decision issued under subsection (b)(3) 
                may petition the Commission for review of such decision 
                by filing an application for review not later than 30 
                days after the date on which the administrative law 
                judge issues the decision.
                    (B) Effect of denial of application for review.--If 
                an application for review under subparagraph (A) is 
                denied, the decision of the administrative law judge 
                shall constitute the decision of the Commission without 
                further proceedings.
                    (C) Discretion of commission.--
                            (i) In general.--A decision with respect to 
                        whether to grant an application for review 
                        under subparagraph (A) is subject to the 
                        discretion of the Commission.
                            (ii) Matters to be considered.--In 
                        determining whether to grant such an 
                        application for review, the Commission shall 
                        consider whether the application makes a 
                        reasonable showing that--
                                    (I) a prejudicial error was 
                                committed in the conduct of the 
                                proceeding; or
                                    (II) the decision involved--
                                            (aa) an erroneous 
                                        application of the anti-doping 
                                        and medication control or 
                                        racetrack safety rules approved 
                                        by the Commission; or
                                            (bb) an exercise of 
                                        discretion or a decision of law 
                                        or policy that warrants review 
                                        by the Commission.
            (3) Nature of review.--
                    (A) In general.--In matters reviewed under this 
                subsection, the Commission may--
                            (i) affirm, reverse, modify, set aside, or 
                        remand for further proceedings, in whole or in 
                        part, the decision of the administrative law 
                        judge; and
                            (ii) make any finding or conclusion that, 
                        in the judgement of the Commission, is proper 
                        and based on the record.
                    (B) De novo review.--The Commission shall review de 
                novo the factual findings and conclusions of law made 
                by the administrative law judge.
                    (C) Consideration of additional evidence.--
                            (i) Motion by commission.--The Commission 
                        may, on its own motion, allow the consideration 
                        of additional evidence.
                            (ii) Motion by a party.--
                                    (I) In general.--A party may file a 
                                motion to consider additional evidence 
                                at any time before the issuance of a 
                                decision by the Commission, which shall 
                                show, with particularity, that--
                                            (aa) such additional 
                                        evidence is material; and
                                            (bb) there were reasonable 
                                        grounds for failure to submit 
                                        the evidence previously.
                                    (II) Procedure.--The Commission 
                                may--
                                            (aa) accept or hear 
                                        additional evidence; or
                                            (bb) remand the proceeding 
                                        to the administrative law judge 
                                        for the consideration of 
                                        additional evidence.
    (d) Stay of Proceedings.--Review by an administrative law judge or 
the Commission under this section shall not operate as a stay of a 
final civil sanction of the Authority unless the administrative law 
judge or Commission orders such a stay.

SEC. 10. UNFAIR OR DECEPTIVE ACTS OR PRACTICES.

    The sale of a covered horse, or of any other horse in anticipation 
of its future participation in a covered race, shall be considered an 
unfair or deceptive act or practice in or affecting commerce under 
section 5(a) of the Federal Trade Commission Act (15 U.S.C. 45(a)) if 
the seller--
            (1) knows or has reason to know the horse has been 
        administered--
                    (A) a bisphosphonate prior to the horse's fourth 
                birthday; or
                    (B) any other substance or method the Authority 
                determines has a long-term degrading effect on the 
                soundness of the covered horse; and
            (2) fails to disclose to the buyer the administration of 
        the bisphosphonate or other substance or method described in 
        paragraph (1)(B).

SEC. 11. STATE DELEGATION; COOPERATION.

    (a) State Delegation.--
            (1) In general.--The Authority may enter into an agreement 
        with a State racing commission to implement, within the 
        jurisdiction of the State racing commission, a component of the 
        racetrack safety program or, with the concurrence of the anti-
        doping and medication control enforcement agency under section 
        5(e), a component of the horseracing anti-doping and medication 
        control program, if the Authority determines that the State 
        racing commission has the ability to implement such component 
        in accordance with the rules, standards, and requirements 
        established by the Authority.
            (2) Implementation by state racing commission.--A State 
        racing commission or other appropriate regulatory body of a 
        State may not implement such a component in a manner less 
        restrictive than the rule, standard, or requirement established 
        by the Authority.
    (b) Cooperation.--To avoid duplication of functions, facilities, 
and personnel, and to attain closer coordination and greater 
effectiveness and economy in administration of Federal and State law, 
where conduct by any person subject to the horseracing medication 
control program or the racetrack safety program may involve both a 
medication control or racetrack safety rule violation and violation of 
Federal or State law, the Authority and Federal or State law 
enforcement authorities shall cooperate and share information.

SEC. 12. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the House Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

            Passed the House of Representatives September 29, 2020.

            Attest:

                                                                 Clerk.
116th CONGRESS

  2d Session

                               H. R. 1754

_______________________________________________________________________

                                 AN ACT

   To improve the integrity and safety of horseracing by requiring a 
uniform anti-doping and medication control program to be developed and 
   enforced by an independent Horseracing Anti-Doping and Medication 
                           Control Authority.
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