Undefined Costs may Threaten 35 Venues in 19 States
The new federal legislation being rushed through Congress will have a positive
effect on the racing industry by mandating uniform and expanded anti-doping and
medication policies but may have a devastating negative affect if the unknown
costs force smaller and midsized racetracks, owners, trainers, and breeders out
of business, according to an analysis prepared for the Association of Racing
Commissioners International (ARCI).
“S.4547 is better than the previous proposal in some ways, but concerns still
exist as to whether it actually goes far enough to protect and regulate the
care given young horses,” RCI President Ed Martin said, noting that the ARCI
has not taken a position on the McConnell bill and is unsure if it will given
reports that it may be a “done deal”.
The purpose of the analysis is to highlight changes that need to be understood
early in order for there to be a smooth transition, Martin said. “This is
enormous and I am not sure everyone understands how this might play out,
especially given the fact that costs have not been explained, only how they are
to be collected.”
US State Racing Commissions spend upwards of $21 million each year on the drug
testing program. The analysis raises the possibility that some State
Budget Offices and Legislatures may opt to shift that money to other state
needs by handing off their programs to newly formed Horseracing Integrity and
Safety Authority (HISA), which can independently tax racetracks, breeders,
owners, trainers and veterinarians for program costs.
Under this scenario there is a real risk that racing industry interests may end
up paying twice as the prospects for an industry specific tax cut to prevent
that in most states may prove elusive.
Thirty Five Racing Venues in 19 States Put on “Watch List”.
The analysis puts over thirty five racing venues in nineteen US States on a
“watch list” based on concerns about the overall economics of racing and their
ability to absorb undefined new mandated costs anticipated to be imposed by
enactment of S.4547.
An inability or failure to absorb additional costs of doing business may force
hard decisions by the ownership of these entities which may impact the extent
or continuation of racing activity. Racing commissions and
policy makers are being urged to work with these entities to clearly understand
the legislation’s impact locally.
“The sponsors and proponents of this legislation need to release detailed cost
estimates for various scenarios for individual states,” Martin
said. “I am shocked that Members of Congress would actually pass
this bill without knowing the impact locally.”
Impact on Investigations and
Involvement of Federal entities.
There is a widespread impression that the newly formed Horseracing Integrity
and Safety Authority (HISA) will have new investigatory powers beyond those
that currently exist for the State Racing Commissions. S.4547
does not grant any expanded authority to the new entity.
“The recent federal indictments like those before them were the result of
multi-agency cooperation where the work of state racing commissions were built
upon and expanded by the reach of a federal law enforcement agency using
federal wiretaps or other tools reserved for law enforcement,” Martin
said. This bill does not give HISA racing investigators law
enforcement status.
The bill also fails to include a proposal made by the ARCI at hearings on the
previous Horse Racing Integrity Act to create designated desks in key federal
agencies - the Department of Justice, the Federal Bureau of Investigation, Drug
Enforcement Agency, and the Food and Drug Administration - to assist racing
investigators and work to facilitate the involvement of federal law enforcement
or regulators in pursuing racing related cases.
Other Key Changes:
The analysis underscores additional changes:
- Creation of a uniform
point of equine regulation beginning with the first timed workout for
each covered horse;
- The HISA would have
broad authority to regulate and control the administration of all
medications given a “Covered Horse”;
- Inclusion of Breeders
as a source of regulatory fees to help pay for the new program;
- Apparent less
transparency than exists under the current system as current Open
Meetings, Public Records Access, State Ethics laws, and independent audit
and investigation of the regulatory entity have not been addressed;
- Consistent testing
thresholds for all laboratories;
- A shift of the testing
laboratory accreditation program away from the Racing Medication and
Testing Consortium to the HISA
- Language to limit the
direct participation by the existing network of expertise currently
relied upon by the State Regulators and racing industry at large.
Anyone interested in receiving a copy of the analysis should request
one by emailing info@arci.com
or using the DOWNLOAD
LINK
