Notice2022-03717
HISA Assessment Methodology Rule
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 18, 2022
Issuing agencies
Federal Trade Commission
Abstract
The Horseracing Integrity and Safety Act of 2020 recognizes a self-regulatory nonprofit organization, the Horseracing Integrity and Safety Authority, which is charged with developing proposed rules on a variety of subjects. Those proposed rules and later proposed rule modifications take effect only if approved by the Federal Trade Commission. The proposed rules and rule modifications must be published in the Federal Register for public comment. Thereafter, the Commission has 60 days from the date of publication to approve or disapprove the proposed rule or rule modification. The Authority submitted to the Commission a proposed rule on Assessment Methodology on January 7, 2022. The Office of the Secretary of the Commission determined that the proposal complied with the Commission's rule governing such submissions. This document publicizes the Authority's proposed rule text and explanation, and it seeks public comment on whether the Commission should approve or disapprove the proposed rule.
Full Text
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<title>Federal Register, Volume 87 Issue 34 (Friday, February 18, 2022)</title>
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[Federal Register Volume 87, Number 34 (Friday, February 18, 2022)]
[Notices]
[Pages 9349-9353]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-03717]
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FEDERAL TRADE COMMISSION
[File No. P222100]
HISA Assessment Methodology Rule
AGENCY: Federal Trade Commission.
ACTION: Notice of Horseracing Integrity and Safety Authority (HISA)
proposed rule; request for public comment.
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SUMMARY: The Horseracing Integrity and Safety Act of 2020 recognizes a
self-regulatory nonprofit organization, the Horseracing Integrity and
Safety Authority, which is charged with developing proposed rules on a
variety of subjects. Those proposed rules and later proposed rule
modifications take effect only if approved by the Federal Trade
Commission. The proposed rules and rule modifications must be published
in the Federal Register for public comment. Thereafter, the Commission
has 60 days from the date of publication to approve or disapprove the
proposed rule or rule modification. The Authority submitted to the
Commission a proposed rule on Assessment Methodology on January 7,
2022. The Office of the Secretary of the Commission determined that the
proposal complied with the Commission's rule governing such
submissions. This document publicizes the Authority's proposed rule
text and explanation, and it seeks public comment on whether the
Commission should approve or disapprove the proposed rule.
DATES: If approved, the HISA proposed rule would take effect
immediately. Comments must be received on or before March 4, 2022.
ADDRESSES: Interested parties may file a comment online or on paper by
following the instructions in the Comment Submissions part of the
SUPPLEMENTARY INFORMATION section below. Write ``HISA Assessment
Methodology'' on your comment and file your comment online at <a href="https://www.regulations.gov">https://www.regulations.gov</a> under docket number FTC-2022-0014. If you prefer to
file your comment on paper, mail your comment to the following address:
Federal Trade Commission, Office of the Secretary, 600 Pennsylvania
Avenue NW, Suite CC-5610 (Annex B), Washington, DC 20580, or deliver
your comment to the following address: Federal Trade Commission, Office
of the Secretary, Constitution Center, 400 7th Street SW, 5th Floor,
Suite 5610 (Annex B), Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT: Austin King (202-326-3166), Associate
General Counsel for Rulemaking, Office of the General Counsel, Federal
Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Self-Regulatory Organization's Statement of the Background,
Purpose of, and Statutory Basis for, the Proposed Rule
a. Background and Purpose
b. Statutory Basis
II. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule and Discussion of Alternatives
III. Self-Regulatory Organization's Summary of Comments
IV. Self-Regulatory Organization's Response to Comments
V. Legal Authority
VI. Effective Date
VII. Request for Comments
VIII. Comment and Submissions
IX. Communications by Outside Parities to the Commissioners or Their
Advisors
X. Self-Regulatory Organization's Proposed Rule Language
Background
The Horseracing Integrity and Safety Act of 2020 \1\ recognizes a
self-regulatory nonprofit organization, the Horseracing Integrity and
Safety Authority, which is charged with developing proposed rules on a
variety of subjects. Those proposed rules and later proposed rule
modifications take effect only if approved by the Federal Trade
Commission.\2\ The proposed rules and rule modifications must be
published in the Federal Register for public comment.\3\ Thereafter,
the Commission has 60 days from the date of publication to approve or
disapprove the proposed rule or rule modification.\4\
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\1\ 15 U.S.C. 3051 through 3060.
\2\ 15 U.S.C. 3053(b)(2).
\3\ 15 U.S.C. 3053(b)(1).
\4\ 15 U.S.C. 3053(c)(1).
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Pursuant to Section 3053(a) of the Horseracing Integrity and Safety
Act of 2020 and Commission Rule 1.142, notice is hereby given that, on
January 7, 2022, the Horseracing Integrity and Safety Authority
(``HISA'' or the ``Authority'') filed with the Federal Trade Commission
a proposed Assessment Methodology rule and supporting documentation as
described in Items I, II, III, IV, and X below, which Items have been
prepared by HISA. The Office of the Secretary of the Commission
determined that the filing complied with the Commission's rule
governing such submissions.\5\ The Commission publishes this notice to
solicit comments on the proposed rule from interested persons.
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\5\ 16 CFR 1.140-1.144; see also Fed. Trade Comm'n, Procedures
for Submission of Rules Under the Horseracing Integrity and Safety
Act, 86 FR 54819 (Oct. 5, 2021).
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I. Self-Regulatory Organization's Statement of the Background, Purpose
of, and Statutory Basis for, the Proposed Rule
a. Background and Purpose
The Horseracing Integrity and Safety Act of 2020 recognizes that
the establishment of a national set of uniform standards for racetrack
safety and medication control will enhance the safety and integrity of
horseracing. As part of this endeavor, the Act, in 15 U.S.C.
3053(a)(11), directs the Horseracing Integrity and Safety Authority
(``HISA'' or the ``Authority'') to develop proposed rules relating to
``a formula or methodology for determining assessments described in
section 3052(f) of this title.'' The Act requires that the Authority
provide to each State racing commission an estimated amount required
from the State to ``(i) to fund the State's proportionate share of the
[[Page 9350]]
horseracing anti-doping and medication control program and the
racetrack safety program for the next calendar year; and (ii) to
liquidate the State's proportionate share of any loan or funding
shortfall in the current calendar year and any previous calendar
year.'' \6\ A State's proportionate share is to be based on the annual
budget of the Authority, ``the projected amount of covered racing
starts for the year in each State'' and ``take into account other
sources of Authority revenue.'' \7\
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\6\ 15 U.S.C. 3052(f)(1)(C)(i).
\7\ 15 U.S.C. 3052(f)(1)(C)(ii).
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If a State racing commission does not elect to remit fees pursuant
to 15 U.S.C. 3052(f)(2), then the Authority is required to, ``not less
frequently than monthly, calculate the applicable fee per racing start
multiplied by the number of racing starts in the State during the
preceding month.'' \8\ This calculation is required to be allocated
equitably ``among covered persons involved with covered horseraces
pursuant to such rules as the Authority may promulgate'' \9\ and
collected ``according to such rules as the Authority may promulgate.''
\10\
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\8\ 15 U.S.C. 3052(f)(3)(A).
\9\ 15 U.S.C. 3052(f)(3)(B).
\10\ 15 U.S.C. 3052(f)(3)(C).
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With the review, input, and ultimate approval of the Authority's
Board of Directors (the ``Board''), the Assessment Methodology proposed
rule puts in place a methodology for determining assessments described
in 15 U.S.C. 3052(f).
b. Statutory Basis
The Horseracing Integrity and Safety Act of 2020, 15 U.S.C. 3051
through 3060.
II. Self-Regulatory Organization's Statement of the Terms of Substance
of the Assessment Methodology Proposed Rule and Discussion of
Alternatives
The Assessment Methodology proposed rule was guided by the purposes
and objectives of the Act and the Act's explicit directive that the
Authority ``allocate equitably'' the calculated assessments among
covered persons.\11\ The Act states that the basis of the funding
calculation is a State's proportionate share of ``the projected amount
of covered racing starts for the year in each State.'' \12\ The Act
does not define ``covered racing start.'' The Authority was not in
favor of simply treating all racing starts in a given State uniformly
as a ``covered racing start'' because this would result in an
inequitable allocation of costs.
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\11\ 15 U.S.C. 3052(f)(3)(B).
\12\ 15 U.S.C. 3052(f)(1)(C)(ii).
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For example, if all starts in all races at all tracks were treated
equally, West Virginia would have a larger proportionate share than
Kentucky, even though the purses and entry fees generated by the
Kentucky races dwarf those generated by West Virginia races.\13\
Instead, the Authority defined Annual Covered Racing Starts in a manner
that is consistent with an equitable allocation of the funding needs of
the Authority. Proposed Rule Series 8500 allocates 50 percent of Annual
Covered Racing Starts to the number of projected starts (the
``Projected Starts'') and the other 50 percent reflects the size of the
purses in the applicable State.\14\ This latter portion of the formula
is derived from taking the total amount of purses in the State and
dividing that amount by the number of projected starts (the ``Projected
Purse Starts''). Therefore, Annual Covered Racing Starts equals 50
percent of Projected Starts and 50 percent of Projected Purse Starts.
Attached as Supporting Document Exhibit 1 is a spreadsheet that guided
the Authority in developing the Assessment Methodology proposed
rule.\15\ Exhibit 1 displays the proportionate share of each State per
one million dollars and sets forth the calculations for Annual Covered
Racing Starts.\16\
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\13\ Higher purses greatly influence the ability of Covered
Persons to bear costs. It is also anticipated that stakes races and
graded stakes races will have higher testing costs.
\14\ The Act's requirements for proportionality among States,
equitable allocation among Covered Persons within each State and the
requirement imposed on the Authority to establish by rule ``a
formula or methodology for determining assessments'' demonstrate
that basing allocations on starts alone would not meet the full
requirements of the Act. Therefore, the proposed rule uses the
concept of Annual Covered Racing Starts to establish a weighted
formula that meets all the Act's requirements.
\15\ Exhibit 1 and Exhibit 2 utilize 2019 numbers because of the
impact the pandemic had on 2020 numbers. Due to the timing of this
submission, it was not practical to utilize 2021 numbers. The
Authority will rely upon the 2021 numbers in projecting the 2022
numbers. The Authority is relying upon Equibase data. Equibase is
the official supplier of racing information and statistics to
numerous entities including Breeders' Cup, Daily Racing Form, and
The Jockey Club.
\16\ To avoid an inequitable or skewed allocation, a State's
total will be adjusted so that no State's assessment exceeds 10
percent of the purses in that State. This excess amount is allocated
proportionately to all States that do not exceed the maximum, based
on each State's respective percentage of the Annual Covered Racing
Starts.
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For States that do not elect to remit fees, the Authority
recognized that it was not advisable or practicable to directly charge
and collect from each covered person. Instead, the Assessment
Methodology proposed rule places the responsibility on the covered
racetracks in such States to collect the fees from covered persons,
subject to the Authority's approving the racetrack's proposed
assessments to covered persons. The amount each covered racetrack is
responsible for collecting is based on the percentage of total purse
money paid out for covered races conducted within the State over the
relevant period. Supporting Document Exhibit 2 displays each covered
racetrack's proportionate share in the total purses in covered
horseraces in the applicable State.
III. Self-Regulatory Organization's Summary of Comments
As encouraged by the Commission's procedural rule, prior to
finalization of the submissions by the Authority to the Commission, a
draft of the proposed Assessment Methodology rule was made available to
the public for review and comment on the HISA website, <a href="https://www.hisausregs.org/">https://www.hisausregs.org/</a>. On December 23, 2021, HISA representatives shared
the draft proposed Assessment Methodology with several interested
stakeholders for input. Those interested stakeholders included: Racing
Officials Accreditation Program; Racing Medication and Testing
Consortium (Scientific Advisory Committee); Water Hay Oats Alliance;
National Thoroughbred Racing Association; The Jockey Club; The Jockeys'
Guild; Thoroughbred Racing Association; Arapahoe Park; Grants Pass
Downs; Arizona Downs; Colonial Downs; Thoroughbred Owners of
California; California Horse Racing Board; National Horsemen's
Benevolent and Protective Association; Thoroughbred Horsemen's
Association Mid-Atlantic Safety Coalition; Thoroughbred Owners and
Breeders Association; Kentucky Thoroughbred Association; American
Association of Equine Practitioners; American Veterinary Medical
Association; Delaware Racing Commission; New York Racing Association;
Stronach Racing Group (5 thoroughbred racetracks); Churchill Downs (6
thoroughbred racetracks); Keeneland; and Del Mar. No comments regarding
the Assessment Methodology proposed rule were received by the Authority
from these interested stakeholders.
On December 23, 2021, the Assessment Methodology proposed rule was
made available to the public for review and comment on the HISA website
<a href="https://www.hisausregs.org/">https://www.hisausregs.org/</a>. One comment was received, and it is set
forth and addressed below.
[[Page 9351]]
IV. Self-Regulatory Organization's Responses to Comments
One comment was posted on the HISA website in response to the
Methodology Rule Proposal, which reads in full: ``If a State Racing
Commission enters into an agreement with the authority to conduct some
or all of the requirements, (notably collecting, submitting equine
samples, and enforcement of violations), will the State Commissions
costs be deducted from the authority and credit given for funds
dedicated to testing, etc? A reply directly to our agency would be
preferable.''
Although this comment does not address the Assessment Methodology
proposed rule, a representative of HISA contacted the individual who
posted the comment to discuss the inquiry. By way of information, it is
anticipated that States that enter into voluntary agreements with the
Authority will receive some type of a credit.
V. Legal Authority
This rule is proposed by the Authority for approval or disapproval
by the Commission under 15 U.S.C. 3053(c)(1).
VI. Effective Date
If approved by the Commission, this proposed rule will take effect
immediately.
VII. Request for Comments
Members of the public are invited to comment on the Authority's
proposed rule. The Commission requests that factual data on which the
comments are based be submitted with the comments. The supporting
documentation referred to in the Authority's filing, as well as the
written comments it received before submitting the proposed rule to the
Commission, are available for public inspection at <a href="https://www.regulations.gov">https://www.regulations.gov</a> under docket number FTC-2022-0014.
The Commission seeks comments that address the decisional criteria
provided by the Act. The Act gives the Commission two criteria against
which to measure proposed rules and rule modifications: ``The
Commission shall approve a proposed rule or modification if the
Commission finds that the proposed rule or modification is consistent
with--(A) this chapter; and (B) applicable rules approved by the
Commission.'' \17\ In other words, the Commission will evaluate the
proposed rule for its consistency with the specific requirements,
factors, standards, or considerations in the text of the Act as well as
the Commission's procedural rule.
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\17\ 15 U.S.C. 3053(c)(2).
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Although the Commission must approve the proposed rule if the
Commission finds that the proposed rule is consistent with the Act and
the Commission's procedural rule, the Commission may consider broader
questions about the health and safety of horses or the integrity of
horseraces and wagering on horseraces in another context: ``The
Commission may adopt an interim final rule, to take effect immediately,
. . . if the Commission finds that such a rule is necessary to
protect--(1) the health and safety of covered horses; or (2) the
integrity of covered horseraces and wagering on those horseraces.''
\18\ The Commission may exercise its power to issue an interim final
rule on its own initiative or in response to a petition from a member
from the public. If members of the public wish to provide comments to
the Commission that bear on protecting the health and safety of horses
or the integrity of horseraces and wagering on horseraces but do not
discuss whether HISA's proposed rule on Assessment Methodology is
consistent with the Act or the applicable rules, they should not submit
a comment here. Instead, they are encouraged to submit a petition
requesting that the Commission issue an interim final rule addressing
the subject of interest. The petition must meet all the criteria
established in the Rules of Practice (part 1, subpart D); \19\ if it
does, the petition will be published in the Federal Register for public
comment. In particular, the petition for an interim final rule must
``identify the problem the requested action is intended to address and
explain why the requested action is necessary to address the problem.''
\20\ As relevant here, the petition should provide sufficient
information for the public to comment on, and for the Commission to
find, that the requested interim final rule is ``necessary to protect--
(1) the health and safety of covered horses; or (2) the integrity of
covered horseraces and wagering on those horseraces.'' \21\
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\18\ 15 U.S.C. 3053(e).
\19\ 16 CFR 1.31; see Fed. Trade Comm'n, Procedures for
Responding to Petitions for Rulemaking, 86 FR 59851 (Oct. 29, 2021).
\20\ 16 CFR 1.31(b)(3).
\21\ 15 U.S.C. 3053(e).
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VIII. Comment Submissions
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before March 4, 2022.
Write ``HISA Assessment Methodology'' on your comment. Your comment--
including your name and your State--will be placed on the public record
of this proceeding, including, to the extent practicable, on the
website <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Because of the public health emergency in response to the COVID-19
outbreak and the Commission's heightened security screening, postal
mail addressed to the Commission will be subject to delay. We strongly
encourage you to submit your comments online through the <a href="https://www.regulations.gov">https://www.regulations.gov</a> website. To ensure that the Commission considers
your online comment, please follow the instructions on the web-based
form.
If you file your comment on paper, write ``HISA Assessment
Methodology'' on your comment and on the envelope, and mail your
comment to the following address: Federal Trade Commission, Office of
the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex B),
Washington, DC 20580, or deliver your comment to the following address:
Federal Trade Commission, Office of the Secretary, Constitution Center,
400 7th Street SW, 5th Floor, Suite 5610 (Annex B), Washington, DC
20024. If possible, please submit your paper comment to the Commission
by courier or overnight service.
Because your comment will be placed on the public record, you are
solely responsible for making sure that your comment does not include
any sensitive or confidential information. In particular, your comment
should not contain sensitive personal information, such as your or
anyone else's Social Security number; date of birth; driver's license
number or other State identification number or foreign country
equivalent; passport number; financial account number; or credit or
debit card number. You are also solely responsible for making sure your
comment does not include any sensitive health information, such as
medical records or other individually identifiable health information.
In addition, your comment should not include any ``[t]rade secret or
any commercial or financial information which . . . is privileged or
confidential''--as provided in Section 6(f) of the FTC Act, 15 U.S.C.
46(f), and FTC Rule Sec. 4.10(a)(2), 16 CFR 4.10(a)(2)--including
competitively sensitive information such as costs, sales statistics,
inventories, formulas, patterns, devices, manufacturing processes, or
customer names.
Comments containing material for which confidential treatment is
requested must be filed in paper form, must be clearly labeled
``Confidential,'' and must comply with FTC Rule Sec. 4.9(c), 16 CFR
4.9(c). In particular, the
[[Page 9352]]
written request for confidential treatment that accompanies the comment
must include the factual and legal basis for the request and must
identify the specific portions of the comment to be withheld from the
public record. See FTC Rule Sec. 4.9(c). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and the public interest. Once your comment has
been posted publicly at <a href="https://www.regulations.gov">https://www.regulations.gov</a>--as legally
required by FTC Rule Sec. 4.9(b), 16 CFR 4.9(b)--we cannot redact or
remove your comment, unless you submit a confidentiality request that
meets the requirements for such treatment under FTC Rule Sec. 4.9(c),
and the General Counsel grants that request.
The FTC Act and other laws the Commission administers permit the
collection of public comments to consider and use in this proceeding as
appropriate. The Commission will consider all timely and responsive
public comments it receives on or before March 4, 2022. For information
on the Commission's privacy policy, including routine uses permitted by
the Privacy Act, see <a href="https://www.ftc.gov/siteinformation/privacypolicy">https://www.ftc.gov/siteinformation/privacypolicy</a>.
IX. Communications by Outside Parties to the Commissioners or Their
Advisors
Written communications and summaries or transcripts of oral
communications respecting the merits of this proceeding, from any
outside party to any Commissioner or Commissioner's advisor, will be
placed on the public record. See 16 CFR 1.26(b)(5).
X. Self-Regulatory Organization's Proposed Rule Language
Rule 8500 Series--Methodology for Determining Assessments
8510 Definitions
8520 Annual Calculation of Amounts Required
8300 Disciplinary Hearings and Accreditation Procedures
8310 Application
8320 Adjudication of Violations of Established in the Rule 2200
Series
8330 Adjudication of Rule 8100 Violations
8340 Initial Hearings Conducted Before the Racetrack Safety
Committee or the Board of the Authority
8350 Appeal to the Board
8360 Accreditation Procedures
8370 Final Civil Sanction
8400 Investigatory Powers
8500. Methodology for Determining Assessments
8510. Definitions
For purposes of this Rule 8500 Series:
(a) Annual Covered Racing Starts means, for the following calendar
year, the sum of: (i) 50 percent of the number of Projected Starts;
plus (ii) 50 percent of the number of Projected Purse Starts.
(b) Covered Horserace has the meaning set forth in 15 U.S.C.
3051(5).
(c) Projected Starts means the number of starts in Covered
Horseraces in the previous 12 months as reported by Equibase, after
taking into consideration alterations in the racing calendar of the
relevant State(s) for the following calendar year.
(d) Projected Purse Starts means: (i) The total amount of purses
for Covered Horseraces as reported by Equibase (not including the
Breeders' Cup World Championships Races), after taking into
consideration alterations in purses for the relevant State(s) for the
following calendar year, divided by (ii) the Projected Starts for the
following calendar year.
(e) Racetrack has the meaning set forth in 15 U.S.C. 3051(15).
8520. Annual Calculation of Amounts Required
(a) If a State racing commission elects to remit fees pursuant to
15 U.S.C. 3052(f)(2), the State racing commission shall notify the
Authority in writing on or before May 2, 2022 of its decision to elect
to remit fees.
(b) Not later than April 1, 2022, and not later than November 1 of
each year thereafter, the Authority shall determine and provide to each
State Racing Commission the estimated amount required from each State
pursuant to the calculation set forth in Rule 8520(c) below.
(c) Upon the approval of the budget for the following calendar year
by the Board of the Authority, and after taking into account other
sources of Authority revenue, the Authority shall allocate the
calculation due from each State pursuant to 15 U.S.C. 3052(f)(1)(C)(i)
proportionally by each State's respective percentage of the Annual
Covered Racing Starts. The proportional calculation for each State's
respective percentage of the Annual Covered Racing Starts shall be
calculated as follows:
(1) The total amount due from all States pursuant to 15 U.S.C.
3052(f)(1)(C)(i) shall be divided by the Projected Starts of all
Covered Horseraces; then
(2) 50 percent of the quotient calculated in (c)(1) is multiplied
by the quotient of (i) the relevant State's percentage of the total
amount of purses for all Covered Horseraces as reported by Equibase
(not including the Breeders' Cup World Championships Races), after
taking into consideration alterations in purses for the relevant State
for the following calendar year; divided by (ii) the relevant State's
percentage of the Projected Starts of all Covered Horseraces starts;
then
(3) the sum of the product of the calculation in (c)(2) and 50
percent of the quotient calculated in (c)(1) is multiplied by the
Projected Starts in the applicable State.
Provided however, that no State's allocation shall exceed 10
percent of the total amount of purses for Covered Horseraces as
reported by Equibase in the State (not including the Breeders' Cup
World Championships Races). All amounts in excess of the 10 percent
maximum shall be allocated proportionally to all States that do not
exceed the maximum, based on each State's respective percentage of the
Annual Covered Racing Starts.
(d) Pursuant to 15 U.S.C. 3052(f)(2)(B), a State racing commission
that elects to remit fees shall remit fees on a monthly basis and each
payment shall equal one-twelfth of the estimated annual amount required
from the State for the following year.
(e) If a State racing commission does not elect to remit fees
pursuant to 15 U.S.C. 3052(f)(2):
(1) The Authority shall on a monthly basis calculate and notify
each Racetrack in the State of the applicable fee per racing start for
the next month based upon the following calculations:
(i) Calculate the amount due from the State as if the State had
elected to remit fees pursuant to 15 U.S.C. 3052(f)(2) (the ``Annual
Calculation'').
(ii) Calculate the number of starts in Covered Horseraces in the
previous twelve months as reported by Equibase (the ``Total Starts'').
(iii) Calculate the number of starts in Covered Horseraces in the
previous month as reported by Equibase (the ``Monthly Starts'').
(iv) The applicable fee per racing start shall equal the quotient
of Monthly Starts, divided by Total Starts, multiplied by the Annual
Calculation.
(2) The Authority shall on a monthly basis calculate and notify
each Racetrack in the jurisdiction of the following calculations:
(i) Multiply the number of starts in Covered Horseraces in the
previous month by the applicable fee per racing start calculated
pursuant to paragraph (e)(1)(iv) above.
(ii) The calculation set forth in 15 U.S.C. 3052(f)(3)(A) shall be
equal to the amount calculated pursuant to paragraph (e)(2)(i) (the
``Assessment Calculation'').
[[Page 9353]]
(3) The Authority shall allocate the monthly Assessment Calculation
proportionally based on each Racetrack's proportionate share in the
total purses in Covered Horseraces in the State over the next month and
shall notify each Racetrack in the jurisdiction of the amount required
from the Racetrack. Each Racetrack shall pay its share of the
Assessment Calculation to the Authority within 30 days of the end of
the monthly period.
(4) Not later than May 1, 2022 and not later than November 1 each
year thereafter, each Racetrack in the State shall submit to the
Authority its proposal for the allocation of the Assessment Calculation
among covered persons involved with Covered Horseraces (the ``Covered
Persons Allocation''). On or before 30 days from the receipt of the
Covered Persons Allocation from the Racetrack, the Authority shall
determine whether the Covered Persons Allocation has been allocated
equitably in accordance with 15 U.S.C. 3052(f)(3)(B), and, if so, the
Authority shall notify the Racetrack that the Covered Persons
Allocation is approved. If a Racetrack fails to submit its proposed
Covered Person Allocation in accordance with the deadlines set forth in
this paragraph, or if the Authority has not approved the Covered
Persons Allocation in accordance with this paragraph, the Authority
shall determine the Covered Persons Allocation for the Racetrack. Upon
the approval of or the determination by the Authority of the Covered
Persons Allocation, the Racetrack shall collect the Covered Persons
Allocation from the covered persons involved with Covered Horseraces.
(f) All notices required to be given to the Authority pursuant to
the Act and these rules must be in writing and must be mailed to 401
West Main Street, Suite 222, Lexington, Kentucky 40507, and emailed to
<a href="/cdn-cgi/l/email-protection#026467676660636169426a6b716377712c6d7065"><span class="__cf_email__" data-cfemail="2c4a4949484e4d4f476c44455f4d595f02435e4b">[email protected]</span></a>.
By direction of the Commission.
April J. Tabor,
Secretary.
[FR Doc. 2022-03717 Filed 2-17-22; 8:45 am]
BILLING CODE 6750-01-P
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