Sec. 101. Racehorse Health and Safety Organization
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States that are members of the interstate compact shall— establish and participate in an organization, to be known as the Racehorse Health and Safety Organization or the RHSO , to coordinate the decision making and actions of the State racing commission of each member State; and develop bylaws and rules governing the RHSO, including rules establishing the RHSO as an agency for purposes of subchapter II of chapter 5 of title 5, United States Code. The RHSO shall be governed by a board of directors composed of 9 members, of whom— 5 shall be appointed by the State racing commission of each of the 5 member States that had the greatest number of racing days during the preceding 3-year period, with each such State racing commission appointing 1 member; and 4 shall be appointed by the State racing commissions of the remaining member States.
The chairperson of the Board shall be elected annually by majority vote from among the members of the Board. Except as provided in clauses
(ii)and (iii), the term of a member of the Board shall not exceed 3 years. For purposes of staggering terms of appointment, the initial members appointed to the Board by the State racing commissions in the 5 member States that had the greatest number of racing days during the prior 3-year period shall serve an initial term of 4 years. If, as of the date described in section 501(a), fewer than 9 States have entered the interstate compact, the Board shall add a new member as each new State enters the interstate compact, up to a maximum of 9 members. A vacancy on the Board shall be filled in the same manner as the position was appointed immediately prior to the vacancy. An individual appointed to fill a vacancy occurring before the expiration of the term for which the predecessor of that individual was appointed shall be appointed for the remainder of that term. When the term of office of a member ends, the member may continue to serve until a successor is appointed. No member of the Board shall serve more than 3 full terms. Each member of the Board shall— before accepting appointment as a member of the Board, disclose any potential conflict of interest; notify the full Board immediately upon engaging in any activity that the RHSO determines may be perceived as a conflict of interest; and not less frequently than annually, disclose any potential conflict of interest of the member and any activity engaged in by the member that the RHSO determines may be perceived as a conflict of interest. A member of the Board shall recuse himself or herself from discussion of any item before the Board if such discussion— relates to the direct financial interest of the member of the Board or an immediate family member of the member of the Board; and does not apply to all covered horses within a breed. The Board may remove by majority vote a member of the Board, including the chairperson of the Board, for— neglect of duty, unethical behavior, or malfeasance in office (including conduct determined by the Board to be injurious to the integrity of horseracing, such as contract violations or perjury); or conviction of a violation of a Federal or State civil or criminal law related to horseracing. In order to consider at a meeting any item requiring the approval of the Board, the Board shall have in attendance at such a meeting (either in person or remotely) a majority of the members of the Board. The duties of Board shall be— to adopt rules with respect to scientific medication control recommended by each scientific medication control committee under section 202; or to modify, or not adopt rules so recommended or adopt alternative rules if the Board determines, by a preponderance of evidence, that such recommendations do not meet the requirements specified in paragraph (4); to adopt rules with respect to racetrack safety recommended by the Racetrack Safety Committee under section 303; or to modify, or not adopt rules so recommended or adopt alternative rules if the Board determines, by a preponderance of evidence, that such recommendations do not meet the requirements specified in paragraph (4); to adopt rules with respect to rule violations, as described in sections 401, 402, and 403; to ensure that any rule adopted under paragraph (1), (2), or
(3)is based on generally accepted scientific principles and methods, and to the extent possible, on peer-reviewed scientific data and studies; to hold open meetings with respect to proposed rules recommended under sections 202 and 303, at which the chairperson of the scientific medication control committee concerned or the chairperson of the Racetrack Safety Committee, as applicable, or the representative of such chairperson, shall present such proposed rules; not later than 45 days before any such meeting is to be held— to post on the internet website of the RHSO any proposed rule described in paragraph
(1)or
(2)(or modifications to such rules) under consideration at such meeting; and to submit to each State racing commission (and to any other individual upon request) notification of such meeting; to adopt any rule under paragraphs (1), (2), or
(3)by a vote of not less than a two-thirds majority of the Board, determine the effective date of any such rule, and update any such rule in accordance with the process established under paragraphs
(5)and (6); after notice and an opportunity for public comment, in consultation with the State racing commissions, to develop and maintain a nationwide database of racehorse safety, performance, health, and injury information for the purpose of conducting an epidemiological study; in carrying out paragraph (8), to require covered persons and equine industry representatives to collect and submit for inclusion in such database such information as the RHSO considers necessary to further the goal of increased horse welfare; with respect to covered persons— subject to section 102, to issue subpoenas and investigate rule violations; and to refer to the appropriate State racing commission any such violation for enforcement action unless the State racing commission concerned agrees to give that enforcement authority to the RHSO; in consultation with member States, to develop uniform standards for veterinarian’s and steward’s lists and uniform procedures for entering horses on, and removing horses from, such lists; to establish, and conduct oversight activities with respect to, the scientific medication control committees under section 201 and the Racetrack Safety Committee under 302; in carrying out paragraph (12), with respect to members of the committees referred to in that paragraph— to assess such members for potential conflicts on a case-by-case basis; and to determine, in the sole discretion of the Board, whether the potential conflict requires removal from the committee or denial of the opportunity to vote on an item pending before the relevant committee; to carry out activities described in subsection
(e)relating to laboratory accreditation; and to ensure that member States comply with the terms of this Act, the interstate compact, and the rules adopted by the Board under this section, including the prohibition on interstate off-track wagers among non-member States specified in section 4(c). The RHSO, acting through the Board, shall assess an initial fee from each State racing commission of a member State in an amount determined by the Board to be sufficient to cover the startup costs of the racing commission for the first full year that begins after the effective date specified in section 501(a). Beginning on a date determined by the RHSO, each State racing commission of a member State shall remit to the RHSO an amount of fees determined under subparagraph (B), in accordance with a schedule developed by the RHSO. Each State racing commission of a member State shall determine, subject to the applicable laws, regulations, and contracts of the State concerned, the method by which the amount of fees determined in accordance with subparagraph
(B)shall be allocated, assessed, and collected. For the first year in which fees are collected under this subsection, not later than the date determined by the RHSO, and not later than November 1 each year thereafter, the RHSO shall determine and provide to each State racing commission the estimated amount required from each member State— to fund the proportionate share of the member State of the expenditures incurred in administering the horseracing scientific medication control rules under subsection (c)(1) and the racetrack safety rules under section subsection (c)(2) for each breed of covered horses racing in covered horseraces in the State; and to liquidate any loan undertaken or other debt incurred to cover a shortfall in fees assessed for the current calendar year and any preceding calendar year. The amounts calculated under clause
(i)shall be based on the annual breed-specific budget of the RHSO for the breed in that State for the following year as approved by the Board after taking into account— the projected number of racing starts for the year separately for each breed in that State; and any other sources of RHSO income. A State may fund the amount required under subparagraph (B)(i) from a variety of sources, including foal registration fees, sales contributions, starter fees, track fees, and other fees on covered persons. In assessing fees to meet the requirement under subparagraph (B), a State racing commission shall assess fees on a breed-specific basis, for the Standardbred, Thoroughbred, and the Quarter Horse industries operating within that State. Each assessment under subclause
(I)shall be specifically earmarked for the development, refinement, and maintenance of— horseracing scientific medication control rules consistent with subsection (c)(1) that are specific and limited to the unique performance model and developed safety protocols for each breed; and racetrack safety rules consistent with subsection (c)(2) that are specific and limited to the unique performance model and developed safety protocols for each breed. A State racing commission of a member State shall ensure that funds assessed by the member State for a single breed of covered horses shall not be commingled for the use or subsidy of any other breed of covered horses. In the case of a proposed increase in the amount required under subparagraph (B)(i) that exceeds 5 percent, such increase shall only become effective if the increase is approved by a vote of not less than a three-fourths majority of the Board. The RHSO may incur debt to carry out the duties of the RHSO but may not accept loans from any covered person or equine industry representative. The RHSO shall review existing rules relating to laboratory accreditation and testing standards issued by the State racing commissions and the National Veterinary Services Laboratories of the Animal and Plant Health Inspection Service of the Department of Agriculture. The RHSO shall select an accreditation body to conduct the accreditation of laboratories and the audits of laboratories so accredited to ensure compliance with rules issued under subsection (c)(1). The accreditation body selected under subparagraph
(A)shall have the authority to require specific test samples to be directed to, and tested by, laboratories with special expertise in the required tests. The accreditation body so selected shall ensure that each laboratory seeking accreditation to conduct testing of covered horses has a relationship with a national laboratory, such as the National Veterinary Services Laboratories of the Animal and Plant Health Inspection Service. A State racing commission may select, for purposes of testing samples from covered horses racing in covered horseraces in the State concerned, a laboratory accredited by the accreditation body selected under paragraph (2). If a State racing commission selects a laboratory that is not accredited by the accreditation body selected under paragraph (2), the RHSO shall select a laboratory accredited by the accreditation body selected under paragraph
(2)to test samples taken in that State.