Kentucky Lawmakers Voice Concern About HISA's Funding

Before wrapping up the 2023 legislative session, Kentucky lawmakers let it be known that they have concerns about the funding approach for the Horseracing Integrity and Safety Authority.

While neither vote directly impacts HISA's ability to operate in Kentucky, the state's House and Senate both approved versions of a resolution that urges HISA, as well as the Federal Trade Commission which has broad oversight of HISA, to review its funding methodology. 

Kentucky lawmakers' concern focuses on HISA's approach of billing state racing commissions based on starters and purse amounts. That approach would see states that have higher purses and more starters billed for a higher amount than states with lower purses and fewer starters.

Last month, the Kentucky Horse Racing Commission opted into a voluntary agreement with HISA "without election to collect and remit fees from the Thoroughbred racetracks under KHRC jurisdiction."

The Kentucky House of Representatives expressed concerns about the approach in its resolution, sponsored by Reps. Matt Koch (Republican, Paris) and Al Gentry (Democrat, Louisville); with similar wording in the Senate resolution sponsored by Sens. Damon Thayer (Republican, Georgetown) and John Schickel (Republican, Union).

"The Kentucky House of Representatives urges the Federal Trade Commission and the Horseracing Integrity and Safety Authority to review the funding methodology of HISA and ensure that they provide uniform treatment to all states," said the resolution, which was to be sent to the FTC, HISA, and federal lawmakers. 

Sen. Thayer, Majority Floor Leader in the Kentucky Senate, said he has reached out to Kentucky Rep. Andy Barr and Kentucky Sen. Mitch McConnell in Washington to call for federal funding of HISA. Barr and McConnell both were both instrumental in passing HISA.

"It's not fair. It's like we're being punished because we're a successful racing state," Thayer said of the graduated billing plan.

HISA did not respond to BloodHorse's requests for comment.

The Kentucky Horsemen's Benevolent and Protective Association pointed to the resolutions as evidence that its concerns about HISA are valid. In a statement, Kentucky HBPA president Rick Hiles said it was gratifying to see Kentucky lawmakers raise concerns about HISA, which the National HBPA and many of its affiliates, including Kentucky, is contesting in federal court.

"Prominent in the resolution is the very real threat that the financial structure set up by this unfunded mandate will jeopardize small- and medium-sized tracks and smaller stables," Hiles said. "That in turn will have a huge impact on Kentucky's breeding and racing industries, as well as the agribusiness that is fueled by horse racing."

HISA launched its Anti-Doping and Medication Control Program March 27 but on March 31 a federal judge suspended the ADMC until May 1. James Hendrix, United States District Court Judge for the Northern District of Texas, Lubbock Division, issued his ruling related to an ongoing lawsuit challenging HISA by the National HBPA, the state of Texas, the Texas Racing Commission, and other parties.