cordance with the standards and requirements estab-
lished by the Authority. 
(2) DURATION OF AGREEMENTS.—Any agree-
ment entered into under paragraph (1) shall remain 
in effect as long as the Authority determines the ap-
plicable racing commission to be implementing the 
components of the medication regulation program 
covered by the agreement in compliance with the 
standards and requirements established by the Au-
thority. 
(b) DUTY OF COOPERATION.—Where conduct by any 
person subject to the horseracing anti-doping and medica-
tion control program may involve both an anti-doping and 
medication control rule violation and violation of State or 
Federal law, this Act imposes a duty to cooperate and 
share information between the Authority and State and 
Federal law enforcement authorities. 
SEC. 9. RULES OF CONSTRUCTION. 
The Authority shall not have the power to impose 
criminal sanctions and shall not be considered nor con-
strued to be an agent of, or an actor on behalf of, the 
United States Government or any State. 
SEC. 10. EFFECTIVE DATE. 
(a) IN GENERAL.—The horseracing anti-doping and 
medication control program shall take effect not later than 
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the date that is 1 year after the date on which initial selec-
tion and appointment of the members of the board of the 
Authority is completed under section 5. 
(b) TRANSITION.—The Authority and State regu-
latory authorities shall work cooperatively to develop tran-
sition rules with respect to doping conduct, sanctions, and 
investigations arising prior to the effective date of the 
horseracing anti-doping and medication control program. 
SEC. 11. FUNDING. 
(a) RULE OF CONSTRUCTION.—Nothing in this Act 
shall be construed to require— 
(1) the appropriation of any amount to the Au-
thority; or 
(2) the Federal Government to guarantee the 
debts of the Authority. 
(b) PROHIBITION
ON INCREASED TAKEOUT.—No 
State racing commission may increase the takeout of any 
racetrack to collect fees to fund the Authority. 
(c) INITIAL FUNDING.— 
(1) IN GENERAL.—Initial funding to establish 
the Authority and underwrite its operations prior to 
the effective date shall be provided by loans obtained 
by and donations made to the Authority. 
(2) BORROWING AND ACCEPTING DONATIONS.— 
The Authority may borrow money and accept private 
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donations and contributions toward the funding of 
its operations. 
(3) ANNUAL
CALCULATION
OF
AMOUNTS
RE-
QUIRED.— 
(A) IN GENERAL.—Not later than the date 
that is 90 days before the date set forth in sec-
tion 10(a) and not later than November 1 of 
each year thereafter, the Authority shall deter-
mine and provide to each State racing commis-
sion the estimated amount required per racing 
starter to fund the horseracing anti-doping and 
medication control program for the coming year 
and to liquidate any loans or funding shortfall 
in the current year and any prior years. 
(B) BASIS OF CALCULATION.—The amount 
calculated under subparagraph (A) shall be 
based upon the annual budget of the Authority 
for the succeeding year, as approved by the 
board of the Authority. 
(C) REQUIREMENTS REGARDING BUDGETS 
OF AUTHORITY.—The Authority’s initial budget 
shall require the approval of 2⁄3 of its board and 
any subsequent budget that exceeds the pre-
ceding year’s budget by more than 5 percent 
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shall also require the approval of 2⁄3 of the 
board of the Authority. 
(d) ASSESSMENT
AND COLLECTION
OF FEES
BY 
STATES.— 
(1) NOTICE OF ELECTION.—Any State racing 
commission that elects to remit fees pursuant to this 
subsection shall notify the Authority of such election 
at least 60 days prior to the adoption of the horse-
racing anti-doping and medication control program. 
(2) REQUIREMENT TO REMIT FEES.—Once a 
State racing commission makes such notification, 
the election shall remain in effect and the State rac-
ing commission shall be required to remit fees pur-
suant to this subsection. 
(3) WITHDRAWAL OF ELECTION.—A State rac-
ing commission may withdraw its election after pro-
viding notice to the Authority of its intent to cease 
remitting fees pursuant to this subsection not later 
than 1 year before ceasing such remitting. 
(4) SCHEDULE OF REMITTANCE.—Each State 
racing commission that elects to remit fees shall 
remit to the Authority on or before the 20th day of 
each calendar month an amount equal to the appli-
cable fee per racing start multiplied by the number 
of racing starts in the State in the previous month. 
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(5) DETERMINATIONS
OF
METHODS.—Each 
State racing commission shall determine, subject to 
the applicable laws and regulations of the State, the 
method by which the requisite amount shall be allo-
cated, assessed, and collected, provided that in no 
event shall the funds be obtained by means of an in-
crease in the takeout. 
(e) ASSESSMENT AND COLLECTION OF FEES BY THE 
AUTHORITY.— 
(1) CALCULATION.—In the event a State racing 
commission does not elect to remit fees pursuant to 
subsection (d) or withdraws its election under such 
subsection, the Authority shall calculate each month 
the applicable fee per racing start multiplied by the 
number of racing starts in the State in the previous 
month. 
(2) ALLOCATION.—The Authority shall equi-
tably allocate that amount calculated under para-
graph (1), among those involved in covered 
horseraces pursuant to such rules as the Authority 
may promulgate, subject to review by the Commis-
sion under section 4. 
(3) ASSESSMENT.—The Authority shall assess a 
fee equal to the allocation made under paragraph 
(2), provided that the fee shall not be in the form 
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