Congressman, Lance Gooden, stood on the floor of the Senate on Tuesday January 24, 2023, and stated, on the record, that the, “Horseracing Integrity and Safety Act”, was found unconstitutional by the Fifth Circuit Court of Appeals on November 18, 2022.
There is a common disagreement regarding both the constitutionality of HISA and , it’s reach.
Congressman, Lance Gooden , stood on the floor of the Senate on Tuesday January 24, 2023, and stated, on the record , that “H.R.9132 – To provide an extension of authority for the Horseracing Integrity and Safety Authority ” the, “Horseracing Integrity and Safety Act “, was found unconstitutional by the Fifth Circuit Court of Appeals on November 18, 2022 .
Here is what Congressman Gooden had said:
“Mr. Speaker, I rise today in opposition to the unconstitutional Horseracing Integrity and Safety Authority (HISA). During the 117th Congress, I filed an amendment to the omnibus spending bill to strip language from the bill that had been intended to “fix” the Horseracing Integrity and Safety Act, which was found unconstitutional by the Fifth Circuit Court of Appeals on November 18, 2022, because Congress had unlawfully delegated its lawmaking power to a private corporation called the “Authority”. The Appeals Court said the Authority needed more oversight from the Federal Trade Commission (FTC), but the language included in the omnibus had been hastily put together and failed to address the underlying issue raised by the Appeals Court. The so-called “fix” still did not allow the FTC to make policy decisions. The FTC still may only reject rules proposed by the Authority if they are inconsistent with the Act, but the Act is written so broadly that no rule will ever be rejected. After the rules have gone into effect, the FTC may now issue its own rules, but it still may do so only to make them consistent with the Act. It cannot impose its own policy decisions on the Authority’s rules. Unfortunately, my amendment did not receive a vote in this era of governing by omnibus, but I will be working this Congress to pass legislation through regular order that will fix the constitutional problems with HISA.”
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Congressman Gooden’s words on the record are thus:
“Madam President, in the early hours of Tuesday morning, we were given the text to the omnibus appropriations bill. With the end of the year fast approaching, everyone is trying to get this bill signed into law quickly. That is true even if it has not been fully reviewed and every consequence thought out. We saw this 2 years ago, when the omnibus was included with COVID-relief funding, within the 2020 omnibus was the Horseracing Integrity and Safety Act. Prior to this 2020 act becoming law, with no process and no opportunity to debate the merits of the act, horseracing was regulated by States, and Congress had no role on how the industry was regulated. What this 2020 bill did was impose a one-size-fits-all Federal regulatory approach on all States, from Iowa to Kentucky, to West Virginia, to New York. This is a bill that had never gone through the committee process, but it managed to end up in the omnibus. As a result of this hasty lawmaking, last month, we saw the Fifth Circuit Court of Appeals strike down the law on the grounds that the act is unconstitutional. Regular order in the Senate, especially through committee process, would have prevented this unconstitutional language. This did not come as a surprise. It was clear that the private nonprofit Horseracing Authority created in the 2020 omni wielded nearly unlimited Federal rulemaking authority and answered to no one, not even the President of the United States. The court ruled that the power of the Federal Government can be wielded only by the Federal Government, not private entities like the ‘‘Authority.’’ For months I have worked with horsemen in Iowa and my colleagues in the Senate to address the obvious failures with implementation of this law since it went into effect earlier this year. I specifically asked the FTC about the extent of its oversight of the FTC, a key factor for the Fifth Circuit’s ruling. The FTC response was simple. It said it did not have any oversight over the ‘‘Authority.’’ This is clearly unconstitutional and is inconsistent with conservative principles of small government and reigning in the Federal bureaucracy. Now that the courts have found HISA unconstitutional, Congress should work a fix through the regular committee process to avoid the pitfalls of the previous legislation. But that is not what is happening today. In the 2022 omni once again, the special interests that invented the unconstitutional ‘‘Authority’’ in the first place have convinced their supporters a quick fix is needed in this omnibus. The same people who pushed the unconstitutional ‘‘Authority’’ through in an end of year omnibus are once again forcing legislation without any input from Senators like me. This fix to the unconstitutional Federal rulemaking power wielded by the ‘‘Authority’’ is included on page 1,930. How many members of Congress even know that this is included? Probably very few. I have since introduced an amendment that would strike this text with Senator MANCHIN. Since then numerous offices reached out to find out what this is—and once they do—have expressed the same opposition to this becoming law that I have. This is just one example of which there are many, of legislating on an omnibus. It lets a select few Members, or in this case just one Member, of leadership create new Federal regulatory frameworks for entire industries. I support ensuring safe, humane horseracing. But I also support small tracks, like Prairie Meadows in Iowa, which don’t have the billionaires backing like those in States that host Triple Crown races. And I am not alone because most other States have tracks like Prairie Meadows. Instead of governing this way, Congress should work with State racing commissions to regulate horseracing in a responsible way to ensure racetrack safety and the economic viability of small tracks across the country. I will work with any Senator who is willing to stand up for small tracks in the next Congress and fix this broken way of governing.”
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H. R. 9132
117th CONGRESS 2d Session
H. R. 9132
To provide an extension of authority for the Horseracing Integrity and Safety Authority.
IN THE HOUSE OF REPRESENTATIVES
October 4, 2022
Mr. Gooden of Texas (for himself and Mr. Mullin) introduced the following bill; which was referred to the Committee on Energy and Commerce
A BILL
To provide an extension of authority for the Horseracing Integrity and Safety Authority.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. EXTENSION OF AUTHORITY FOR THE HORSERACING INTEGRITY AND SAFETY AUTHORITY.
Section 1202(14) of the Horseracing Integrity and Safety Act of 2020 (15 U.S.C. 3051(14) ) is amended by striking “July 1, 2022” and inserting “January 1, 2024”.” SOURCE
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