Texas Racing Commission Declines to Remit HISA Fees

During its monthly meeting April 13, the Texas Racing Commission chose not to collect fees on behalf of the Horse Racing Integrity and Safety Authority. The state had been assessed a $371,377 fee by HISA, which is scheduled to begin federal regulation and oversight of the horse racing industry July 1. 

Fees fall upon covered racetracks when state regulators do not remit costs to the federal authority.

In a letter dated April 14 and published on social media by the TRC, Amy Cook, the regulator's executive director, wrote to Lisa Lazarus, CEO of HISA, explaining they believe a demand payment is an invalid attempt to preempt Texas state law.

"The Texas Racing Act contains no statutory provision enabling the Texas Racing Commission to become an agent of the federal government to collect and remit fees to create uniform national standards for horses only in 'covered horse races,'" she wrote.

The actions of the TRC follow those of the Maryland Racing Commission, which unanimously voted April 5 to not collect and remit annual assessments.

Texas has been a battleground for some industry groups opposed to HISA, which was passed to create uniform safety and competition standards for Thoroughbred racing.

The TRC joined in claims brought in a Texas federal court to stop HISA from going forward, but those were dismissed March 31 by U.S. District Judge James Wesley Hendrix.