Horseracing Integrity and Safety Authority Oversight, 8578-8582 [2024-02291]

Agencies

• FEDERAL TRADE COMMISSION

[Federal Register Volume 89, Number 27 (Thursday, February 8, 2024)]
[Proposed Rules]
[Pages 8578-8582]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-02291]


=======================================================================
-----------------------------------------------------------------------

FEDERAL TRADE COMMISSION

16 CFR Part 1

RIN 3084-AB79


Horseracing Integrity and Safety Authority Oversight

AGENCY: Federal Trade Commission.

ACTION: Notice of proposed rule; request for comment.

-----------------------------------------------------------------------

SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') 
announces proposed rules regarding oversight of the Horseracing 
Integrity and Safety Authority (``Authority''). The proposed rules 
include new oversight provisions to ensure that the Authority remains 
publicly accountable and operates in a fiscally prudent, safe, and 
effective manner.

DATES: Comments must be received by April 8, 2024.

ADDRESSES: Interested parties may file a comment online or on paper by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``HISA Oversight 
Rulemaking, Matter No. P222100'' on your comment and file your comment 
online at https://www.regulations.gov by following the instructions on 
the web-based form. 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, Mail Stop H-144 (Annex 
H), Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Sarah Botha (202-326-2036, 
[email protected]), Office of the Executive Director, Federal Trade 
Commission.

SUPPLEMENTARY INFORMATION:

Background

    The Horseracing Integrity and Safety Act of 2020 (``HISA'' or ``the 
Act''), Public Law 116-260, Title XII, 134 Stat 1182, 3252 (2020) 
(codified as amended at 15 U.S.C. 3051-3060), recognizes the Authority 
as a self-regulatory nonprofit organization charged with developing and 
enforcing rules relating to racetrack safety, anti-doping, and 
medication control. See 15 U.S.C. 3052. The Act expressly provides for 
Commission oversight of several aspects of the Authority's operations. 
For example, the Commission must approve any proposed rule or rule 
modification by the Authority relating to the Authority's bylaws, 
racetrack safety standards, anti-doping and medication control, and the 
formula or methodology for determining assessments. See id. In December 
2022, Congress amended HISA to expand the Commission's oversight role 
over the Authority. See Consolidated Appropriations Act, 2023, Public 
Law 117-328, Sec. 701, 136 Stat. 4459, 5231 (2022). As amended, the Act 
gives the Commission the power to issue rules under the procedures set 
forth in the Administrative Procedure Act, 5 U.S.C. 553, ``as the 
Commission finds necessary or appropriate to ensure the fair 
administration of the Authority . . . or otherwise in furtherance of 
the purposes of this Act.'' 15 U.S.C. 3053(e).
    In light of the Commission's experience in overseeing the 
Authority's operations to date, the Commission is exercising its 
rulemaking authority to propose several new rule provisions to ensure 
effective Commission oversight over the Authority. The proposed new 
provisions are designed to ensure that the Authority is promoting 
transparency and integrity in its operations. For example, new rule 
sections would require the Authority to submit and publish annual and 
midyear reports about its performance and financial position. The 
proposed rules would also require the Authority to develop, maintain, 
and publish a multi-year strategic plan, after taking public comments 
on the draft plan. The proposed rules would require the Authority to 
effectively manage risk and take steps to prevent conflicts of 
interest, waste, fraud, embezzlement, and abuse. The proposed rules 
would also mandate other operational requirements and identify best 
practices for the Authority to follow, as explained in the section-by-
section analysis below. The Commission would add the proposed new rules 
as 16 CFR 1.153 through 1.156 in Subpart U of part 1 of its Rules of 
Practice. Subpart U would be renamed ``Oversight of the Horseracing 
Integrity and Safety Authority'' to reflect more accurately the content 
of the amended subpart.

Section by Section Analysis

    Sec.  1.153 Submission of the Authority's annual reports, midyear 
reports, and strategic plans. This proposed new section imposes certain 
requirements on the Authority to report on its finances for the 
preceding calendar year by May 15. This includes a complete accounting 
of the Authority's budget (as audited by a qualified, independent, 
registered public accounting firm and in accordance with Generally 
Accepted Accounting Principles), a discussion of budgetary line items, 
a summary of travel expenses, and a summary of any new or continuing 
risks or issues raised by audits or other reviews. The proposed section 
also imposes certain requirements on the Authority to report by March 
31 on its performance for the prior calendar year, with such report to 
include efforts made to carry out the requirements of the Act, a 
description of the cooperation with the states as set forth in 15 
U.S.C. 3060(b), a summary of final civil sanctions, an assessment of 
the Authority's progress in meeting or not meeting its performance 
measures contained in its strategic plan per Sec.  1.153(d), a summary 
of Board of Directors committee recommendations and activities, 
information about any changes in the composition of the Authority's 
Board of Directors or standing committees, information about the 
relationship between the Authority and the anti-doping and medication 
control enforcement agency, a summary of all litigation to which the 
Authority is a party (including actions commenced by the Authority 
under 15 U.S.C. 3054(j)), a summary of all subpoenas issued by the 
Authority under 15 U.S.C.

[[Page 8579]]

3054(c), a description of any areas in which the Authority believes 
improvements to its operations are warranted, and the Authority's plans 
to achieve those improvements. The proposed section also requires the 
Authority to submit to the FTC by August 15 a same year midyear report 
covering January to June that describes spending and staffing levels 
and budgetary information. This midyear report would provide 
operational insight about the Authority's budget execution and risk 
management activities. Under the proposed section, the Authority also 
must develop and publish for public comment a multi-year strategic plan 
by June 30, 2024. The Authority must re-evaluate its strategic plan no 
less frequently than every five years. The strategic plan must align 
with the Authority's annual budget, discuss its priority initiatives, 
and set forth a set of performance measures. The Authority must publish 
its annual financial reports, annual performance reports, and strategic 
plans on its website.
    Sec.  1.154 Enterprise risk management. This proposed new section 
imposes certain requirements on the Authority to ensure that it 
effectively manages risk to prevent conflicts of interest, waste, 
fraud, embezzlement, or abuse. Paragraph (a) sets forth guiding 
principles around separation of duties and corrective action plans, and 
notes that risk management activities must ensure compliance, the 
avoidance of conflicts of interest or the appearance thereof, and the 
appropriate handling of funds received and expended by the Authority. 
Given the confidential nature of much of the Authority's work and the 
data that it collects, paragraph (b) would require the Authority to 
ensure the privacy and security of its data in its systems, including 
those operated by third-party contractors, and require a complete 
annual evaluation of the status of its overall information technology 
program and practices as audited by a qualified, independent, third-
party auditor. Given that the Authority leverages contractor resources 
in its operations, paragraph (c) would require the Authority to 
document its market research for any action estimated at over $10,000 
to ensure the lowest cost or best value for goods and services to be 
provided, and to develop policies and procedures covering procurement 
activities. Given the FTC's need for regular communication and 
awareness of the Authority's activities, paragraph (d) would require 
the Authority to provide advance notice to Commission staff of all 
significant Authority-planned events (e.g., press conferences, media 
events, summits, etc.) via a calendar, list, email, or other reasonable 
means, to summarize key aspects of all such events on its website, and 
to give Commission staff prompt notice after significant adverse events 
in the horseracing industry that might reasonably lead to sanctions or 
track closures.
    Sec.  1.155 Other best practices. This proposed new section 
includes a set of best practices that the Authority is encouraged to 
adopt to promote accountability, transparency of operations, and 
effective resource stewardship. These proposals include holding regular 
monitoring meetings with the FTC; recommendations for how the Authority 
may maintain its records and information; recommendations for how the 
Authority should treat confidential information; a standing data 
request from the FTC for the Authority's Board of Directors minutes; 
recommendations about the Authority's personnel and compensation 
policies and practices; recommendations about the Authority's customer 
service program (and the development of associated metrics); and 
recommendations regarding the Authority's travel policies.
    Sec.  1.156 Severability. This proposed new section notes that 
provisions of this subpart are separate and severable from one another. 
If any provision is stayed or determined to be invalid, it is the 
Commission's intention that the remaining provisions shall continue in 
effect.

Request for Comment

    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before April 8, 2024. 
Write ``HISA Oversight Rulemaking, Matter No. P222100'' on your 
comment. Your comment--including your name and your state--will be 
placed on the public record of this proceeding, including the https://www.regulations.gov website.
    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we strongly encourage you 
to submit your comments online. To make sure the Commission considers 
your online comment, you must file it at https://www.regulations.gov, 
by following the instructions on the web-based form.
    If you file your comment on paper, write ``HISA Oversight 
Rulemaking, Matter No. P222100'' 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, Mail 
Stop H-144 (Annex H), Washington, DC 20580. If possible, submit your 
paper comment to the Commission by overnight service.
    Because your comment will be placed on the publicly accessible 
website at https://www.regulations.gov, you are solely responsible for 
making sure your comment does not include any sensitive or confidential 
information. In particular, your comment should not include any 
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 ``any trade secret or any commercial or 
financial information . . . which is privileged or confidential.'' 15 
U.S.C. 46(f); see FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). In 
particular, your comment should not include 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), 16 CFR 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 https://www.regulations.gov, 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), 16 CFR 4.9(c), and the General Counsel grants 
that request.
    Visit the FTC website to read this document and the news release 
describing it and visit https://www.regulations.gov/docket/FTC-2024-0012 to read a plain-language summary of the proposed rule. The FTC Act 
and other laws that the Commission

[[Page 8580]]

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 that it receives on or before 
April 8, 2024. For information on the Commission's privacy policy, 
including routine uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.

Paperwork Reduction Act

    The Paperwork Reduction Act (``PRA''), 44 U.S.C. chapter 35, 
requires federal agencies to seek and obtain Office of Management and 
Budget approval before undertaking a collection of information directed 
to ten or more persons. Under the PRA, a rule creates a ``collection of 
information'' when ten or more persons are asked to report, provide, 
disclose, or record information in response to ``identical questions.'' 
\1\ The Commission concludes that the PRA does not apply to the 
proposed amendments because they only apply to one ``person,'' the 
Authority.
---------------------------------------------------------------------------

    \1\ 44 U.S.C. 3502(3)(A).
---------------------------------------------------------------------------

Regulatory Flexibility Act

    The Regulatory Flexibility Act (``RFA''), as amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996, requires an 
agency to either provide an Initial Regulatory Flexibility Analysis 
with a proposed rule, or certify that the proposed rule will not have a 
significant impact on a substantial number of small entities.\2\ The 
RFA defines a ``small entity'' as a small business, a small 
governmental jurisdiction, or a small not-for-profit organization. See 
5 U.S.C. 601(6).
---------------------------------------------------------------------------

    \2\ 5 U.S.C. 603-605.
---------------------------------------------------------------------------

    The proposed amendments would apply only to the Authority, and the 
Authority is not a small business or a small governmental jurisdiction. 
While the Authority is a nonprofit entity, it is not a small not-for-
profit organization, defined in the RFA as ``any not-for-profit 
enterprise which is independently owned and operated and is not 
dominant in its field.'' Id. 601(5). The authority is not 
``independently owned and operated,'' and it is dominant in its field. 
The Commission therefore certifies under the RFA that the proposed rule 
will not have a significant impact on a substantial number of small 
entities, and hereby provides notice of that certification to the Small 
Business Administration.

Communications by Outside Parties to 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 a Commissioner's advisor, will be 
placed on the public record. See 16 CFR 1.26(b)(5).

List of Subjects in 16 CFR Part 1

    Administrative practice and procedure; Animal welfare; Animal 
drugs.

    For the reasons set forth in the preamble, the Federal Trade 
Commission proposes to amend title 16, chapter I, subchapter A of the 
Code of Federal Regulations as follows:

PART 1--GENERAL PROCEDURES

0
1. The authority citation for part 1 continues to read as follows:

    Authority: 15 U.S.C. 46; 15 U.S.C. 57a; 5 U.S.C. 552; 5 U.S.C. 
601 note.

0
2. Add Sec. Sec.  1.153 through 1.156 to subpart U to read as follows:

Subpart U--Oversight of the Horseracing Integrity and Safety 
Authority

Sec.
* * * * *
153 Submission of the Authority's annual reports, midyear reports, 
and strategic plans.
1.154 Enterprise risk management.
1.155 Other best practices.
1.156 Severability.

    Authority: 15 U.S.C. 3053(e).


Sec.  1.153  Submission of the Authority's annual reports, midyear 
reports, and strategic plans.

    (a) Annual financial report. Every year, by May 15, the Authority 
must follow the procedures in Sec.  1.143 to submit an annual financial 
report to the Commission, detailing the items listed below for the 
previous calendar year. The Authority must also publish this report on 
its website. The report must contain:
    (1) A complete accounting of the Authority's budget, as audited by 
a qualified, independent, registered public accounting firm and in 
accordance with Generally Accepted Accounting Principles (including a 
statement from the auditor attesting to the auditor's independence and 
its opinion regarding the financial statements presented in the annual 
financial report);
    (2) Line-item comparisons between the approved budget's revenues 
and expenditures for the previous year and the actual revenues and 
expenditures for the previous year;
    (3) An explanation of how the Authority has considered the relative 
costs and benefits in formulating the programs, projects, and 
activities described in the budget;
    (4) A description and accounting of the Authority's insurance 
coverage;
    (5) A description and accounting of any budgetary reserves;
    (6) Summaries of contracts or other liabilities that the Authority 
has entered into or may potentially incur;
    (7) A summary of travel expenses, including an itemized list of any 
first-class travel (defined as the highest and most expensive class of 
service);
    (8) Any new or continuing material or significant risks or issues 
raised by the audit, internal quality or control reviews, other 
inspections or peer reviews of the Authority, or any inquiry or 
investigation by governmental or professional authorities, along with 
any steps taken (e.g., corrective actions) to deal with any such 
issues, consistent with Sec.  1.154; and
    (9) Any other information requested by Commission staff.
    (b) Annual performance report. Every year, by March 31, the 
Authority must follow the procedures in Sec.  1.143 to submit an annual 
performance report to the Commission, detailing the items listed below 
for the previous calendar year. The Authority must also publish this 
report on its website. The report must contain:
    (1) Narrative summaries of all the major efforts by the Authority 
to carry out the requirements of the Act, including the status or 
results of any publicly announced investigations conducted by the 
Authority;
    (2) Information about the Authority's cooperation with the States 
as set forth in 15 U.S.C. 3060(b), including whether each State has 
covered horseraces, elects to remit fees, or has entered into an 
agreement under 15 U.S.C. 3060(a)(1) to implement a component of the 
programs on racetrack safety or anti-doping and medication control;
    (3) A summary of all final civil sanctions imposed by the Authority 
in the previous year, in a tabular format; at a minimum, the summary 
should be broken down by violation category (e.g., racetrack safety 
program, anti-doping and controlled medication protocol rules, etc.) 
and should include the total number of alleged violations by category, 
the number of times the violations were admitted and resolved without 
adjudication, the number of times any violations were contested and 
adjudicated, the number of times any

[[Page 8581]]

sanctions were imposed, the number of times that no sanctions were 
imposed, the number of civil sanction notices that needed to be 
reissued or corrected, the total fines imposed, the total amount of 
purses forfeited, and the number of times the sanctions were appealed 
to the Commission's Administrative Law Judge;
    (4) An assessment of the Authority's progress in meeting or not 
meeting its performance measures contained in its Strategic plan per 
Sec.  1.153(d);
    (5) A statement from each Board of Directors committee summarizing 
its work in the previous year and all recommendations each such 
committee has made to the Board;
    (6) Information about any changes in the composition of the 
Authority's Board of Directors or standing committees;
    (7) Information about the relationship between the Authority and 
the anti-doping and medication control enforcement agency, including 
how the enforcement agency is performing under its contract with the 
Authority and how many years remain under the contract;
    (8) A summary of all litigation to which the Authority is a party, 
including actions commenced by the Authority under 15 U.S.C. 3054(j);
    (9) A summary of all subpoenas issued by the Authority under 15 
U.S.C. 3054(c);
    (10) Descriptions of any areas in which the Authority believes that 
improvements to its operations are warranted, together with the 
Authority's plans to achieve those improvements. Forward-looking 
information should reflect known and anticipated risks, uncertainties, 
future events or conditions, and trends that could significantly affect 
the Authority's future financial position, condition, or operating 
performance, as well as Authority actions that have been planned or 
taken to address those challenges; and
    (11) Any other information requested by Commission staff.
    (c) Midyear reporting. By August 15, the Authority must furnish to 
the Commission a same-year midyear report covering January through 
June, to include:
    (1) Spending and staffing levels for the quarter ending June 30, 
compared to the levels in the Commission-approved budget;
    (2) A summary of travel expenses, including an itemized list of any 
first-class travel (defined as the highest and most expensive class of 
service);
    (3) The status of outstanding and completed corrective actions; and
    (4) Any other information requested by Commission staff.
    (d) Strategic plan. The Authority must develop and maintain a 
multiyear strategic plan. The Authority must submit its first strategic 
plan to the Commission on or before June 30, 2024. The Authority must 
reevaluate the strategic plan no less frequently than every five years. 
The Authority's annual budget must align with, and link spending to, 
the strategic goals. The strategic plan must include items such as a 
description of its State-by-State relationships and a discussion of 
planned rulemaking activities. The Authority must:
    (1) Post its draft strategic plan on its website for a public 
comment period of at least 14 days;
    (2) Present its final strategic plan to the Commission, along with 
a summary of its responses to public comments; and
    (3) Publish its final strategic plan on its website.
    (e) Further guidance on strategic plan. The Authority's strategic 
plan should include forecasts of the Authority's industry environment 
and its priority initiatives for the current and subsequent years. The 
strategic plan should also consider the impact that program levels and 
changes in methods of program delivery, including advances in 
technology, could have on program operations and administration. The 
Strategic Plan should identify several strategic goals aligned with the 
Authority's mission statement. Each strategic goal should have 
accompanying objectives, strategies, and performance measures. As 
guiding principles, performance measures should:
    (1) Be limited to the vital few and demonstrate results;
    (2) Cover multiple priorities; and
    (3) Provide useful information for decision-making.
    (4) Be clear, measurable, objective, and reliable; and
    (5) Focus on core program activities and priorities.


Sec.  1.154  Enterprise risk management.

    (a) Guiding principles. The Authority must effectively manage risk 
to prevent conflicts of interest, waste, fraud, embezzlement, and 
abuse. To manage risk, the Authority must align the enterprise risk-
management process to the goals and objectives noted in the Authority's 
strategic plan. The Authority must assess risks, select risk responses, 
monitor whether responses are successful, and communicate and report on 
risks, consistent with Sec.  1.153. The Authority must ensure that all 
internal controls have appropriate separation of duties (e.g., 
requester, approver, recorder). In addition, the Authority must develop 
corrective action plans no later than 90 days after receiving a notice 
of finding from its auditors or other internal assessments. The Board 
of Directors (or one of the standing committees) must review and 
evaluate identified risks and proposed corrective action plans. The 
Authority must review regularly its corrective actions identified from 
all audits and internal assessments and should develop criteria by 
which to prioritize its response activities. The Authority must ensure 
that its risk management activities encompass:
    (1) Compliance with applicable laws, rules, and regulations;
    (2) The avoidance of conflicts of interest, or the appearance 
thereof, in all aspects of the Authority's operations, including 
investigation and enforcement, vendor selection, personnel assignments 
and responsibilities, and actions by the Board of Directors or 
management; and
    (3) Handling funds received and expended by the Authority, 
including revenue/expense policies, fundraising practices, contracting 
policies, travel policies, and real and personal property agreements 
and expenses.
    (b) Data security and privacy. The Authority must ensure the 
privacy and security of data, including all reasonable measures to 
protect the confidentiality of any sensitive health information (SHI), 
personally identifiable Information (PII), and sensitive PII (SPII) 
stored in its systems, including those operated by the anti-doping and 
medication control program, the Horseracing Integrity and Welfare Unit, 
and the Authority's third-party contractors. The Authority must ensure 
a complete annual evaluation of the status of its overall information 
technology security program and practices, as audited by a qualified, 
independent, third-party auditor. The Authority must also ensure that 
it has policies, programs, and practices in place to protect SHI, PII, 
and SPII. The Authority must send a copy of the annual evaluation to 
Commission staff.
    (c) Vendor selection. Procurement actions estimated at over $10,000 
must be accompanied by documented market research (e.g., comparing the 
prices and other terms offered by the selected vendor against the 
prices and other terms offered by at least two other vendors) to ensure 
lowest cost or best value for goods or services to be provided. The 
Authority should also develop policies and procedures covering 
procurement activities.

[[Page 8582]]

    (d) Notice. The Authority must provide advance notice to Commission 
staff of all significant Authority-planned events (e.g., press 
conferences, media events, summits, etc.) via a calendar, a list, 
email, or some other reasonable means. The Authority must also 
summarize key aspects of all such events on its website within a 
reasonable timeframe. The Authority must also give Commission staff 
prompt notice after it has been alerted to significant, adverse events 
in the horseracing industry (e.g., adverse safety or medical events 
that might reasonably lead to sanctions, track closures, etc.).


Sec.  1.155  Other best practices.

    (a) Regular monitoring meetings. The Commission recommends that the 
Authority hold regular meetings with Commission staff to discuss 
upcoming or potential risks, challenges, and opportunities for 
improvement.
    (b) Records and information management. The Commission recommends 
that the Authority maintain records and information in sufficient 
detail to support the Authority's programs and operations, as well as 
any records relating to its information management policies or 
procedures. The Commission expects that the Authority will make any of 
these records available to Commission staff upon request, to allow the 
Commission to carry out its statutorily mandated oversight.
    (c) Treatment of confidential information. The Commission 
recommends that the Authority's submissions to the Commission not 
include any SHI, PII, or SPII, such as a 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. If the Authority submits 
documents to the Commission containing confidential commercial or 
financial information, it should so designate that material and request 
confidential treatment pursuant to Sec.  4.10(g).
    (d) Standing data requests. The Commission recommends that the 
Authority submit Board of Directors minutes to the Commission's Office 
of the Secretary within 15 days following each Board meeting.
    (e) Personnel and compensation. The Commission recommends that the 
Authority develop compensation policies and practices with the primary 
objective of attracting, developing, and retaining high-performing 
individuals capable of achieving the Authority's mission. The Authority 
should strive to recruit a diverse team of industry leaders whose 
unique backgrounds, education, cultures, and perspectives help position 
the Authority as an effective and innovative self-regulatory 
organization. The Commission also recommends that the Authority conduct 
periodic salary benchmarks to ensure that employee compensation is in 
line with other like organizations.
    (f) Customer service. The Commission recommends that the Authority 
maintain publicly accessible points of contact (e.g., email addresses, 
phone numbers) and monitor the timeliness with which it responds to 
inquiries. In this regard, the Commission urges the Authority to 
develop a policy and associated metrics covering its customer service 
activities, to be incorporated into its strategic plan and its regular 
reporting to the Commission.
    (g) Travel. The Commission recommends that the Authority use 
standard, GSA-established, published per diem rates when determining 
how much a person may spend on lodging, meals, and incidental expenses. 
Nevertheless, actual subsistence expenses may be authorized under 
unusual circumstances with justification and prior approval from the 
appropriate approving official. The Commission urges the Authority to 
prohibit the use of first-class travel (defined as the highest and most 
expensive class of service) by employees, except when no other option 
is available or when a disability or exceptional security conditions 
require it. The Commission also recommends that the Authority not 
reimburse its contractors for first-class travel unless exceptional 
circumstances warrant.


Sec.  1.156  Severability.

    The provisions of this Subpart are separate and severable from one 
another. If any provision is stayed or determined to be invalid, it is 
the Commission's intention that the remaining provisions shall continue 
in effect.

    By direction of the Commission,
Joel Christie,
Acting Secretary.
[FR Doc. 2024-02291 Filed 2-7-24; 8:45 am]
BILLING CODE 6750-01-P