With Law Changed, HISA Back in Court

An attorney for the Horseracing Integrity and Safety Authority this week asked a federal appeals court panel to set aside its ruling declaring the entity's underlying legislation facially unconstitutional, citing a recent amendment to the law.

A letter signed by Pratik A. Shah Dec. 29 on behalf of HISA formally notified the three-judge panel "that on December 23 Congress passed, and on December 29 President Biden signed into law an amendment" that gives the Federal Trade Commission more power to regulate the Authority.

The Fifth Circuit Court of Appeals, based in New Orleans, had declared the legislation facially unconstitutional for failing to give the FTC adequate oversight over the Authority, a private entity created by the legislation.

"Accordingly, the panel opinion—predicated on a former version of the Act that no longer exists—must be vacated pending further disposition of this appeal," Shah's letter noted, adding that the Authority will submit a formal motion to vacate the panel opinion and an accompanying petition for rehearing of the case Jan. 3.

Another appeals court based in Cincinnati, the Sixth Circuit Court of Appeals, is reviewing another challenge to the constitutionality of HISA but has not ruled. On Dec. 30 the court notified the parties to file additional briefs addressing the amendment by Jan. 12.

The Fifth Circuit challenge to HISA was brought by the National Horsemen's Benevolent and Protective Association and state affiliates. The State of Oklahoma and others initiated the case in the Sixth Circuit.