Notice2023-16000
Horseracing Integrity and Safety Authority Enforcement Rule Modification
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
July 28, 2023
Effective
September 26, 2023
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 proposed rule modifications take effect only if approved by the Federal Trade Commission. The Authority submitted to the Commission a proposed rule modification on Enforcement on May 31, 2023. 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 modification's text and explanation, and it seeks public comment on whether the Commission should approve or disapprove the proposed rule modification.
Full Text
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<title>Federal Register, Volume 88 Issue 144 (Friday, July 28, 2023)</title>
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[Federal Register Volume 88, Number 144 (Friday, July 28, 2023)]
[Notices]
[Pages 48849-48852]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-16000]
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FEDERAL TRADE COMMISSION
[File No. P222100]
Horseracing Integrity and Safety Authority Enforcement Rule
Modification
AGENCY: Federal Trade Commission.
ACTION: Notice of Horseracing Integrity and Safety Authority (HISA)
proposed rule modification; 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 proposed rule
modifications take effect only if approved by the Federal Trade
Commission. The Authority submitted to the Commission a proposed rule
modification on Enforcement on May 31, 2023. 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 modification's text and
explanation, and it seeks public comment on whether the Commission
should approve or disapprove the proposed rule modification.
DATES: If approved, the HISA proposed rule modification would take
effect upon approval, and the Commission must approve or disapprove the
proposed rule modification on or before September 26, 2023. Comments
must be received on or before August 11, 2023.
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 Enforcement Rule
Modification'' on your comment and file your comment online at <a href="https://www.regulations.gov">https://www.regulations.gov</a>. 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 H),
Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: John H. Seesel (202-326-2702),
Associate General Counsel, 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 Modification
a. Background and Purpose
b. Statutory Basis
II. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Modification and Discussion of
Alternatives
III. Legal Authority
IV. Effective Date
V. Request for Comments
VI. Comment and Submissions
VII. Communications by Outside Parities to the Commissioners or
Their Advisors
VIII. 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 (``HISA'' or ``the Authority''), which is charged with
developing proposed rules on a variety of subjects. Those proposed
rules and 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
May 31, 2023, the Authority filed with the Federal Trade Commission an
Enforcement proposed rule modification and supporting documentation as
described in Sections s I and II of this publication, which Items have
been prepared by the Authority. 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 modification from
interested persons.
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\5\ 16 CFR 1.140 through 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), <a href="https://www.federalregister.gov/documents/2021/10/05/2021-21306/procedures-for-submission-of-rules-under-the-horseracing-integrity-and-safety-act">https://www.federalregister.gov/documents/2021/10/05/2021-21306/procedures-for-submission-of-rules-under-the-horseracing-integrity-and-safety-act</a>.
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I. Self-Regulatory Organization's Statement of the Background, Purpose
of, and Statutory Basis for the Proposed Rule Modification
a. Background and Purpose
The Horseracing Integrity and Safety Act of 2020 (``Act'')
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. On December 20, 2021, the
Authority filed with the Commission the Rule 8000 Series, which
establishes penalties and adjudicatory procedures for the enforcement
of rules promulgated by the Authority. The Rule 8000 Series was
published in the Federal Register on January 26, 2022,\6\ and approved
by the Commission by Order dated March 25, 2022.\7\
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\6\ See Fed. Trade Comm'n, Notice of HISA Enforcement Proposed
Rule (``Notice''), 87 FR 4023 (Jan. 26, 2022).
\7\ Order Approving the Enforcement Rule Proposed by the
Horseracing Integrity and Safety Authority, March 25, 2022.
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In its Order, the Commission directed the Authority to file
modifications to several provisions in the Rule Series 8000, including
a modification which ``further defines the meaning of ``object'' and
``device'' within proposed Rule 8400(a)(2)'s list of items eligible for
seizure (``medication, drug, substance, paraphernalia, object, or
device'') and that provides a process for the return of seized property
if no violation is found.'' \8\ In a subsequent Order dated September
23, 2022, which approved the proposed modifications to the Rule 8000
Series, the Commission directed the Authority to further refine the
language pertaining to the Authority's power to seize items.\9\
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\8\ Id. at 34-35.
\9\ Order Approving the Enforcement Rule Modification Proposed
by the Horseracing Integrity and Safety Authority, September 23,
2022.
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The Authority therefore proposes the rule modifications described
in this publication in order to fulfill the Commission's directive. The
proposed
[[Page 48850]]
rule modification is described in detail in Section II of this
publication. The modifications have been crafted in the most precise
manner possible to resolve the specific issues that the Commission
directed the Authority to address. No reasonable alternatives presented
themselves for consideration in effecting the very narrowly focused
changes necessary to comply with the Commission's directive.
The proposed rule modification will affect Covered Persons by
clarifying with particularity the objects and devices subject to search
and seizure in the course of investigations conducted by the Authority.
Covered Horses and Covered Horseraces will not be directly affected by
these modifications to the search and seizure provisions in the Rule
8000 Series, since these provisions focus specifically upon
investigations of Covered Persons and other individuals. But Covered
Horses and Covered Horseraces will be affected by--and benefit from--
the effective enforcement through the Rule 8000 Series of the
Authority's racetrack safety program. The program safeguards and
enhances in many ways the health and safety of Covered Horses
participating in Covered Horseraces under the jurisdiction of the
Authority. The clarity and soundness of the search and seizure
provisions will promote effective enforcement of the program.
With the review, input and ultimate approval of the Authority's
Board of Directors, the proposed rule modification to Rule 8400
conforms to the directive in the Commission's Order of September 23,
2022. HISA submits herewith the proposed rule modification for
Commission approval.
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 Enforcement Proposed Rule Modification
In its Order dated March 25, 2022, the Commission directed the
Authority ``to submit to the Commission a supplemental proposed rule
modification by July 1, 2022, in which the Authority further defines
the meaning of `object' and `device' within proposed Rule 8400(a)(2)'s
list of items eligible for seizure (`medication, drug, substance,
paraphernalia, object, or device') and that provides a process for the
return of seized property if no violation is found.'' \10\ The
Authority filed a modification in response to the Commission's
directive, but the modification retained the broad terms ``object'' and
``device.'' The Commission in its subsequent Order dated September 23,
2022, directed the Authority to further refine the language pertaining
to the Authority's power of seizure. Specifically, the Order states as
follows: ``The Authority is hereby directed to not rely on the words
`object' or `device' in Rule 8400(a)(2) to effectuate a seizure. It is
further directed to submit within 30 days of this Order a proposed rule
modification to define further the type of item subject to a seizure to
include items such as `intravenous tubing, oral dosing syringes,
needles, nasal gastric tubes, various types of container bags, and
vials' and other items such as illegal whips and shock devices, but it
should not include in the proposed definition generic nouns that could
be applied to authorize seizure of computers, phones, cars, or other
objects that are not themselves evidence of a violation.'' \11\
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\10\ Order Approving the Enforcement Rule Proposed by the
Horseracing Integrity and Safety Authority, March 25, 2022. pp. 34-
35.
\11\ Order Approving the Enforcement Rule Modification Proposed
by the Horseracing Integrity and Safety Authority of September 23,
2022, p. 15.
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The Proposed Rule Modification complies with the Commission's Order
by deleting the words ``object'' and ``device,'' and adding instead a
list of items similar to that specified in the Commission's Order. The
pertinent provision, Rule 8400(a)(2), has been revised as follows, with
language stricken as indicated and new language added as underlined
below:
[[Page 48851]]
[GRAPHIC] [TIFF OMITTED] TN28JY23.047
The Authority believes that the modification of the language as
described above conforms with the Commission's directive. The words
``object'' and ``device'' have been deleted and a new provision has
been added in Rule 8400(a)(2)(ii) which sets forth a more specific list
of items as described by the Commission. The word ``paraphernalia'' has
also been replaced with the more specific term ``injectable.'' In
addition, a reference to computers and phones has been deleted in a
provision relating to the return of seized property in Rule 8400(b).
The Commission's Order of September 23, 2022, also directed the
Authority to ``correct the potential inconsistency it conceded in its
response to comments by replacing `relate to' with the Act's exact
phrase in defining the access power of Rule 8400(a)(1).'' The proposed
rule modification complies with this request by replacing the phrase
``relate to'' in Rule 8400(a)(1)(i) and (ii) with the phrase ``are used
in,'' as utilized in the search and seizure provision in 15 U.S.C.
3054(c)(1)(A)(i).
The Commission's Order specifies that this proposed rule
modification is not subject to pre-submission informal public comment
under the Commission's procedural rule, 16 CFR 1.142(f).
All the changes proposed in the proposed rule modification are
intended to enhance the Rule 8000 Series Enforcement Rules in a manner
consistent with 15 U.S.C. 3057(d). An effective enforcement system
builds public confidence in the sport by ensuring that Covered
Horseraces are conducted in a fair and transparent manner. The proposed
rule modification considers the unique character of horseracing and the
organizational structure of the Authority, and it is carefully tailored
to respond to the Commission's directive to narrow the seizure powers
of the Authority as set forth in Rule 8400.
Covered Persons will benefit from the effective enforcement of the
rules, the standards of integrity in racing that the rules establish,
and the deterrence of violations.
III. Legal Authority
This rule modification is proposed by the Authority for approval or
disapproval by the Commission under 15 U.S.C. 3053(c)(1).
IV. Effective Date
If approved by the Commission, this proposed rule modification will
take effect immediately.
V. Request for Comments
Members of the public are invited to comment on the Authority's
proposed rule modification. 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
modification to the Commission, are available for public inspection at
<a href="https://www.regulations.gov">https://www.regulations.gov</a> under docket number FTC-2022-0044.
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.'' \12\ In other words, the Commission will evaluate the
proposed rule modification 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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\12\ 15 U.S.C. 3053(c)(2).
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VI. Comment and Submissions
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before August 11, 2023.
Write ``HISA Enforcement Rule 8400 Modification'' on your comment. Your
comment--including your name and your State--will be placed on the
public record of
[[Page 48852]]
this proceeding, including, to the extent practicable, on the website
<a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Because of the Commission's heightened security screening, postal
mail addressed to the Commission will be subject to delay. The
Commission strongly encourages that comments be submitted 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 Enforcement Rule
Modification'' 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 H),
Washington, DC 20580.
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 4.10(a)(2), 16 CFR 4.10(a)(2)--including in
particular 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 4.9(c), 16 CFR 4.9(c).
In particular, the 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 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 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 4.9(c), and
the General Counsel grants that request.
Visit the FTC website to read this document and the news release
describing it. 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 August 11, 2023.
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>.
VII. 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).
VIII. Self-Regulatory Organization's Proposed Rule Language
The following language reflects the Enforcement rule with the
proposed modifications incorporated. A redline version that shows every
way in which the previously approved Enforcement rule would be modified
by the proposed rule modification is available as Exhibit A on the
docket for this matter at <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
8400. Investigatory Powers
(a) The Commission, the Authority or their designees:
(1) Shall have free access to:
(i) with regard to Covered Persons, books, records, offices,
racetrack facilities, and other places of business of Covered Persons
that are used in the care, treatment, training, and racing of Covered
Horses, and
(ii) with regard to any person who owns a Covered Horse or performs
services on a Covered Horse, books, records, offices, facilities, and
other places of business that are used in the care, treatment,
training, and racing of Covered Horses.
(2) May seize:
(i) any medication, drug, substance, or injectable in violation or
suspected violation of any provision of 15 U.S.C. Chapter 57A or the
regulations of the Authority; and
(ii) intravenous tubing, syringes, needles, nasogastric tubes,
container bags, vials, electrical devices, riding crops not in
compliance with Rule 2281, and similar items that may be evidence of a
violation or suspected violation of any provision of 15 U.S.C. Chapter
57A or the regulations of the Authority.
(b) Upon final resolution of a violation, the Commission, the
Authority or their designees shall return seized property, the
possession of which is not specifically prohibited by the Act or the
rules of the Authority.
(c) A Covered Person shall:
(1) Cooperate with the Commission, the Authority or their designees
during any investigation; and
(2) Respond truthfully to the best of the Covered Person's
knowledge if questioned by the Commission, the Authority, or their
designees about a racing matter.
(d) A Covered Person or any officer, employee or agent of a Covered
Person shall not hinder a person who is conducting an investigation
under or attempting to enforce or administer any provision of 15 U.S.C.
chapter 57A or the regulations of the Authority.
(e) The Commission or the Authority may issue subpoenas for the
attendance of witnesses in proceedings within their jurisdiction, and
for the production of documents, records, papers, books, supplies,
devices, equipment, and all other instrumentalities related to matters
within the jurisdiction of the Commission or the Authority.
(f) Failure to comply with a subpoena or with the other provisions
of this Rule may be penalized by the imposition of one or more
penalties set forth in Rule 8200.
(g) The Commission or the Authority may administer oaths to
witnesses and require witnesses to testify under oath in matters within
the jurisdiction of the Commission or the Authority.
By direction of the Commission.
April J. Tabor,
Secretary.
[FR Doc. 2023-16000 Filed 7-27-23; 8:45 am]
BILLING CODE 6750-01-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.