Horseracing Integrity and Safety Authority Oversight, 66546-66552 [2024-18245]
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Federal Register / Vol. 89, No. 159 / Friday, August 16, 2024 / Rules and Regulations
Issued in College Park, Georgia, on August
12, 2024
Andreese C. Davis,
Manager, Airspace & Procedures Team South,
Eastern Service Center, Air Traffic
Organization.
[FR Doc. 2024–18298 Filed 8–15–24; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 129
International Aviation Safety
Assessment (IASA) Program
Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Suspension of policy statement.
AGENCY:
On September 28, 2022, the
FAA published a Policy Statement in
the Federal Register that described
policy changes to the FAA’s
International Aviation Safety
Assessment (IASA) program as well as
clarification or restatement of prior
policy to ‘‘enhance engagement with
civil aviation authorities (CAAs)
through pre- and post-IASA assessment
and to promote greater transparency.’’
After receiving inquiries and questions
about the changes described in that
policy statement, the FAA is suspending
implementation of the September 28,
2022, Policy Statement while the agency
reassesses the policy. The policy
statement published March 8, 2013,
remains active.
DATES: The policy statement published
at 87 FR 58725 (September 28, 2022) is
suspended as of August 16, 2024.
FOR FURTHER INFORMATION CONTACT:
Rolandos Lazaris, Division Manager,
International Program Division (AFS–
50), Flight Standards Service, Federal
Aviation Administration, 800
Independence Avenue SW, Washington,
DC 20591; (202) 267–3719.
SUPPLEMENTARY INFORMATION:
SUMMARY:
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Background
The IASA program is the means by
which the FAA determines whether
another country’s oversight of its air
carriers that (1) operate, or seek to
operate, services to/from the United
States using their own aircraft and
crews, or (2) seek to display the code of
a U.S. air carrier on any services,
complies with safety standards
established by the International Civil
Aviation Organization (ICAO). The
published IASA results of a country’s
placement in Category 1 or Category 2
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is the notification to the U.S. traveling
public as to whether a foreign air
carrier’s homeland civil aviation
authority meets ICAO safety standards.
A Category 1 rating indicates that the
civil aviation authority meets ICAO
safety standards for these operations,
and a Category 2 rating indicates that
the civil aviation authority does not
meet ICAO safety standards. The IASA
program was established by a document
published in the Federal Register in
1992. Subsequent published documents
in the Federal Register notified of the
program’s evolution. These Federal
Register documents are as follows:
• August 24, 1992—Established the
FAA Procedures for Examining and
Monitoring Foreign Air Carriers (57 FR
38342).
• September 8, 1994—Established the
Public Disclosure of the Results of
Foreign Civil Aviation Authority
Assessments, through a three-category
numbered rating system (59 FR 46332).
• October 31, 1995—DOT Notice
Clarification Concerning Examination of
Foreign Carriers’ Request for Expanded
Economic Authority, clarified the
Department’s licensing policy regarding
requests for expanded economic
authority from foreign air carriers whose
CAA’s safety oversight capability has
been assessed by the FAA as conditional
(Category II) or unacceptable (Category
III) (60 FR 55408).
• May 25, 2000—Changes to the
International Aviation Safety
Assessment program removed the
Category 3 rating and combined it with
Category 2 (65 FR 33751).
• March 8, 2013—Changes to the
International Aviation Safety
Assessment program removed inactive
countries (countries with no air carrier
operations to the United States or codeshares with U.S. air carrier for four years
and no significant interaction between
the country’s CAA and the FAA) from
the IASA Category list (78 FR 14912).
Through the IASA program, the FAA
seeks continuous improvement to global
aviation safety. As noted in the abovereferenced policy statement of
September 8, 1994, initial IASA
assessments found that two-thirds of the
assessed CAAs were deficient in
meeting their safety oversight
obligations under the Convention on
International Civil Aviation.
The September 28, 2022, Policy
Statement (87 FR 58725) (now
suspended) announced certain changes
to the IASA program and provided
clarification to other aspects of the IASA
policy. Since that publication, the FAA
and DOT have received inquiries and
questions that warrant reassessment of
those changes and clarifications, and an
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opportunity for public comment before
they are adopted permanently. As noted
above, the FAA is suspending
implementation of the September 28,
2022, Policy Statement while the agency
reassesses the policy and considers
public comments. Public comment is
invited on the matters and issues
described in the companion document
published elsewhere in this issue of the
Federal Register.
Issued in Washington, DC.
Jodi L. Baker,
Deputy Administrator for Aviation Safety.
[FR Doc. 2024–16954 Filed 8–15–24; 8:45 am]
BILLING CODE 4910–13–P
FEDERAL TRADE COMMISSION
16 CFR Part 1
RIN 3084–AB79
Horseracing Integrity and Safety
Authority Oversight
Federal Trade Commission.
Final rule.
AGENCY:
ACTION:
The Federal Trade
Commission (‘‘FTC’’ or ‘‘Commission’’)
is issuing a final rule (‘‘Final Rule’’)
regarding oversight of the Horseracing
Integrity and Safety Authority
(‘‘Authority’’). The Final Rule includes
new oversight provisions to ensure that
the Authority remains publicly
accountable and operates in a fiscally
prudent, safe, and effective manner.
DATES: This rule is effective on
September 16, 2024.
FOR FURTHER INFORMATION CONTACT:
Sarah Botha, (202) 326–2036, sbotha@
ftc.gov, Office of the Executive Director,
Federal Trade Commission.
SUPPLEMENTARY INFORMATION: This
document states the basis and purpose
for the Commission’s decision to adopt
the Final Rule addressing the
Commission’s oversight of the
Authority. The new oversight provisions
were proposed and published for public
comment in the Federal Register on
February 8, 2024, in a notice of
proposed rulemaking (‘‘NPRM’’).1 After
careful review and consideration of the
entire record on the issues presented in
this rulemaking proceeding, including
10 comments submitted by interested
parties, the Commission has decided to
adopt, with a few modifications, the
proposed new oversight rule.
SUMMARY:
1 FTC, Horseracing Integrity and Safety Authority
Oversight, Proposed Rule, 89 FR 8578 (Feb. 8,
2024).
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Federal Register / Vol. 89, No. 159 / Friday, August 16, 2024 / Rules and Regulations
I. 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, antidoping and medication control, and the
formula or methodology for determining
assessments. See 15 U.S.C. 3053. 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).
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II. Overview of the Proposed Oversight
Rule
In light of the Commission’s
experience in overseeing the Authority’s
operations to date, the Commission
proposed several new rule provisions to
ensure effective Commission oversight
over the Authority. The proposed
provisions were designed to ensure that
the Authority is promoting transparency
and integrity in its operations. For
example, the proposed new rule
sections would require the Authority to
submit and publish annual and midyear
reports about its performance and
financial position. The proposed new
rules would also require the Authority
to develop, maintain, and publish a
multiyear strategic plan, after taking
public comments on a 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.
Section-by-Section Analysis
Section 1.153 Submission of the
Authority’s annual reports, midyear
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reports, and strategic plans. This
proposed new section would impose
certain requirements on the Authority to
report on its finances for the preceding
calendar year by May 15. This would
include 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 would impose
certain requirements on the Authority to
report by March 31 on its performance
for the prior calendar year. The report
would 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 § 1.153(d), and a
summary of Board of Directors
committee recommendations and
activities. It would also include
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 antidoping 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. 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
would also require the Authority to
submit to the FTC by August 15 a sameyear 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. The proposed
section would have also required the
Authority to develop and publish for
public comment a multiyear strategic
plan by June 30, 2024. The Authority
would be required to 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 would be
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required publish its annual financial
reports, annual performance reports,
and strategic plans on its website.
Section 1.154 Enterprise risk
management. This proposed new
section would impose 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 noted
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.
Section 1.155 Other best practices.
This proposed new section included a
set of best practices to promote
accountability, transparency of
operations, and effective resource
stewardship of the Authority. These
proposals included 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
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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.
Section 1.156 Severability. This
proposed new section noted 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 would
continue in effect.
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III. Overview of Public Comments
Received in Response to the NPRM
The Commission received 10
comments in response to the NPRM,2
representing the views of an industry
trade group, individuals and groups
concerned with animal welfare issues,
attorneys who have represented clients
in Authority enforcement actions, and
individuals with an interest in the
horseracing industry. The Authority
also submitted a comment in which it
responded to the comments filed in
response to the NPRM and shared its
views regarding the proposed rule.
The majority of the comments focused
on the FTC’s proposed oversight rule,
but three comments addressed topics
related to the Authority’s rules or
suggested other areas that the
Commission should consider for
rulemaking.3 The remaining comments
expressed support for the proposed
rule,4 but some comments also
submitted suggestions for additional or
amended rule provisions.
One comment, submitted by two
attorneys who have represented Covered
Persons in enforcement actions brought
under the Authority’s rules, stated that
increased scrutiny of the Authority by
the FTC is needed and welcomed, but
urged the Commission to include
2 All comments submitted can be found at
www.regulations.gov under Docket ID FTC–2024–
0012. We cite public comments by name of the
commenting organization or individual and the
comment number.
3 See Anonymous 5 (seeking the expansion of
rules and regulations for animal welfare, cruelty
and abuse); Lange 6 (requesting a change in the
Authority’s rules addressing eligibility
requirements for Covered Horses); WhoPoo App 9
(asking the FTC to mandate that all horseracing
venues include a horse/equine rescue allotment and
fund).
4 See, e.g., Bell 2 (expressing support for actions
to improve the integrity of the governing of
horseracing, and opining that Congress authorized
the FTC to engage in this rulemaking); Humane
Society of the United States and Humane Society
Legislative Fund 12 (noting that ‘‘increased
transparency will be integral to ensuring the safety
and welfare of horses and jockeys, and key to
monitoring effective enforcement of the Horseracing
Integrity and Safety Act’’).
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additional requirements for the
Authority, such as public disclosure of
all contracts, travel expenses, and line
item costs for hearings.5 The
Commission appreciates the
commenters’ suggestions but believes
the proposed rule strikes the right
balance between mandating the
disclosure of information to bring
greater transparency and accountability
to the Authority’s operations without
depleting limited resources with overly
burdensome disclosure requirements.
The rule will require the Authority to
publish on its website annual financial
and performance reports providing
significant details regarding the
Authority’s expenditures and
operations, along with a multiyear
strategic plan that is developed with
public input. Existing Commission rules
require further information to be
submitted annually during the budget
review process, which the Commission
publishes in the Federal Register, and
the Commission can seek additional
information through its process of
reviewing and approving the
Authority’s budget.6
Another commenter expressed
support for the proposed rule, but
opined that the rule provisions fall short
in the area of enforcement.7 The
commenter seems to be under the
impression that the Authority has
exempted sales companies and breeders
from the application of 15 U.S.C. 3059.
That statutory provision says that in
connection with the sale of Covered
Horses (or horses anticipated to be
covered), it is a violation of section 5 of
the FTC Act, 15 U.S.C. 45, to fail to
make certain disclosures. See 15 U.S.C.
45(a) (prohibiting ‘‘unfair or deceptive
acts or practices in or affecting
commerce’’). Section 5, however, is
enforced only by the FTC, not the
Authority. Another section of HISA
does permit the Authority to refer
matters to the Commission and
recommend that the Commission pursue
an enforcement action under 15 U.S.C.
3059. See 15 U.S.C. 3054(c)(2). The
discretion to pursue such an action,
however, rests solely with the
Commission.
Another commenter believed that the
proposed rule would be greatly
beneficial to the horseracing industry
but opined that the rule was ‘‘lacking in
the enforcement of best practices’’ and
should include penalties for violations
5 Fisco 7. The commenters also opined on several
existing rules of the Authority, which are beyond
the scope of this rulemaking.
6 See 16 CFR 1.151(a).
7 Roberts 4. The commenter also opined on
several existing rules of the Authority, which are
beyond the scope of this rulemaking.
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of the rule in order to incentivize
compliance.8 The Commission fully
expects that the Authority will comply
with the Final Rule, and that the
Authority would seek a modification
from the Commission if there were any
provisions in the rule that the Authority
anticipated would present compliance
difficulties. In fact, the Authority has
filed a comment expressing its thoughts
on the proposed rule and requesting
some minor changes to the rule, as
discussed below. To date, the Authority
has complied with the rules the
Commission has promulgated
addressing submissions to the FTC
under the Act,9 review of final civil
sanctions,10 and review of the
Authority’s annual budget.11 The
Commission fully anticipates that the
Authority will comply with the Final
Rule.
A comment from the National
Horsemen’s Benevolent & Protective
Association (‘‘NHBPA’’) supported the
Commission’s goal to bring transparency
to the Authority’s operations, but
opined that the proposed rule is not
authorized by the Act.12 Specifically,
the NHBPA posited that 15 U.S.C.
3053(e) allows the FTC to initiate rules
to ‘‘abrogate, add to, [or] modify the
rules of the Authority promulgated in
accordance with [HISA],’’ but that the
proposed rule does not abrogate, add to,
or modify the Authority’s rules and is
therefore unauthorized by the Act.13
The Commission disagrees that it lacks
statutory authority to promulgate the
proposed rule.
The proposed rule is in accordance
with 15 U.S.C. 3053(e). Congress
provided there that ‘‘[t]he Commission,
by rule in accordance with’’ the
Administrative Procedure Act, ‘‘may
. . . add to . . . the rules of the
Authority promulgated in accordance
with’’ HISA ‘‘as the Commission finds
necessary or appropriate to ensure the
8 Newcomer 11. The commenter also criticized
the rule for failing to address the treatment of
horses by parties involved in horseracing. This falls
outside the scope of this rulemaking. The
Authority, however, has rules that address the
topics raised by the commenter, including the
humane treatment of equine athletes and bans on
performance-enhancing drugs, and all of the
commenters are encouraged to file comments on
those rules when proposed modifications are
published by the Authority or by the Commission.
See, e.g., FTC, Horseracing Integrity and Safety
Authority Anti-Doping and Medication Control
Rule Modification, proposed rule modification, 88
FR 65683 (Sept. 25, 2023); FTC, Horseracing
Integrity and Safety Authority Racetrack Safety Rule
Modification, proposed rule modification, 89 FR
24574 (Apr. 8, 2024).
9 16 CFR 1.140 through 1.144.
10 16 CFR 1.145 through 1.149.
11 16 CFR 1.150 through 1.152.
12 NHBPA 8.
13 Id.
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fair administration of the Authority . . .
or otherwise in furtherance of the
purposes of [the Act].’’ 15 U.S.C.
3053(e). The proposed rule ‘‘add[s] to’’
the rules that the Authority has
promulgated in accordance with the Act
and does so ‘‘to ensure the fair
administration of the Authority . . . or
otherwise in furtherance of the purposes
of [the Act].’’ Id. The plain text of HISA
thus authorizes the Commission to
promulgate the proposed rule.14
Apart from its belief that Congress
would be the appropriate entity to
promulgate the proposed rule, the
NHBPA stated that it ‘‘supports the
substance behind’’ proposed §§ 1.153,
1.154, and 1.155, including the
requirements for an annual financial
report with an independent audit, an
annual performance report with
summaries of the Authority’s
enforcement activities, a multiyear
strategic plan, and enterprise risk
management activities.15
Finally, the Authority submitted a
comment in which it responded to some
of the public comments submitted in
response to the NPRM and suggested
some modifications to the rule as
proposed.16 Specifically, the Authority
requested that the deadline for
submitting the first annual financial
report under § 1.153(a) be changed from
May 15, 2024, to June 17, 2024. This
request is now moot.
The Authority also requested that the
annual deadline for submitting a sameyear midyear report under § 1.153(c) be
changed from August 15 to August 30,
to ‘‘provide adequate time for the CFO
to complete this report after the
proposed budget is submitted to the
Commission.’’ 17 Under the FTC’s Rules,
the Authority’s proposed annual budget
for the following year must be submitted
to the Commission by August 1 each
year,18 and the Commission must
approve or disapprove the proposed
budget by November 1, or as soon
thereafter as practicable, after
publishing the proposed budget for
public comment.19 The Commission
believes that the midyear report
required under § 1.153(c) will inform
the Commission’s consideration of the
Authority’s proposed budget for the
following year and that delaying the
14 The NHBPA opined that the Act prohibits the
FTC from promulgating a proposed rule unless the
Authority has ‘‘already adopted a rule on the topic.’’
Id. (emphasis added). That supposed limitation on
the Commission’s authority is nowhere in the plain
text of the statute.
15 NHBPA 8.
16 Horseracing Integrity and Safety Authority 10.
17 Id.
18 See 16 CFR 1.150(a).
19 See 16 CFR 1.150(d) and 1.151(a).
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submission of the midyear report would
hinder the Commission’s ability to fully
consider the report prior to voting on
the proposed budget. The Commission’s
need for the midyear report outweighs
the Authority’s need for an extension
and, for this reason, the Authority’s
request is denied and the proposed
reporting deadline of August 15 is
retained in the Final Rule.
The Authority requested that the
submission deadline for the initial
multiyear strategic plan under § 1.153(d)
be changed from June 30, 2024, to
August 30, 2024.20 In order to permit
the Authority sufficient time to publish
its draft strategic plan for public
comment and finalize the plan
subsequent to the effective date of the
Final Rule, the Commission has
changed the deadline for submission of
the initial multiyear strategic plan to
October 15, 2024.
The Authority requested that the
documented market research
requirement for procurement actions
required under § 1.154(c) be applicable
to procurement actions estimated at
over $50,000, rather than (as proposed)
procurement actions estimated at over
$10,000.21 The Commission does not
believe that documenting market
research for procurement actions
estimated at over $10,000 will be
unreasonably burdensome, so it
declines this request.
The Authority requested that the
recommendation of § 1.155(d) for the
Authority to submit Board of Directors
minutes to the Commission’s Office of
the Secretary be changed from within 15
days following each Board meeting to
within 30 days following each Board
meeting, to provide adequate time for
the Board minutes to be prepared and
approved by the Board.22 The
Commission finds this request to be
reasonable and has changed the
recommended submission deadline in
the Final Rule to within 30 days
following each Board meeting.
Finally, regarding the
recommendation in § 1.155(g) that the
Authority ‘‘use standard, GSA [General
Services Administration]-established,
published per diem rates when
determining how much a person may
spend on lodging, meals, and incidental
expenses,’’ the Authority commented
that it ‘‘does not receive government
lodging rates and therefore, the
Authority does not believe that the use
of standard GSA-established, published
per diem rates will be practical.’’ 23 The
20 Horseracing
Integrity and Safety Authority 10.
21 Id.
22 Id.
23 Id.
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66549
Commission believes that the travel
policy recommendation in the proposed
rule is reasonable, and has retained it in
the Final Rule.24 The Commission notes
that the recommendation also states,
‘‘Nevertheless, actual subsistence
expenses may be authorized under
unusual circumstances with
justification and prior approval from the
appropriate approving official.’’ This
recommendation is similar to GSA
regulations that apply to Federal
agencies.25 The Authority’s travel policy
should specify what rate it will use
when authorizing travel, and the Final
Rule recommends that rate should be
based upon standard, GSA-established,
published per diem rates. The Authority
could, however, establish a policy
whereby it authorizes the standard,
GSA-established, published per diem
rates for mileage reimbursement and for
meals and incidental expenses, while
basing its rate for lodging on the GSA
rate with allowances for deviations from
that rate within a certain range. For
example, the Authority could require
that lodging be within the GSAestablished rate but, if an employee
cannot find a room within that rate, the
Authority could allow lodging to exceed
the GSA-established rate by up to 300
percent, as necessary and with approval
from a designated official.
IV. The Final Rule
In this document, the Commission
adopts the proposed new provisions as
final, with the two minor changes
discussed above. The Final Rule also
adds references in § 1.153(c) and (d) to
following the procedures in § 1.143 for
submissions to the Commission and, in
this way, mirrors § 1.153(a) and (b) and
clarifies the applicable submissions
requirements. The Final Rule also
clarifies that the midyear reporting
requirement in § 1.153(c) is an annual
one.
The Commission is adding the Final
Rule as 16 CFR 1.153 through 1.156 in
subpart U of part 1 of its Rules of
Practice. Subpart U is therefore renamed
‘‘Oversight of the Horseracing Integrity
and Safety Authority’’ to more
accurately reflect the content of the
amended subpart.
V. Paperwork Reduction Act
The Paperwork Reduction Act
(‘‘PRA’’), 44 U.S.C. chapter 35, requires
24 Government per diem rates are updated
annually at https://www.gsa.gov/travel, and
available to Authority staff to refer to.
25 See 41 CFR 301–11.30 (‘‘What is my option if
the Government lodging rate exceeds my lodging
reimbursement? . . . You may request
reimbursement on an actual expense basis, not to
exceed 300 percent of the maximum per diem
allowance.’’).
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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.’’ 26
The Commission concludes that the
PRA does not apply to the amendments
because they only apply to one
‘‘person,’’ the Authority.
VI. 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 a Final Regulatory
Flexibility Analysis with a final rule, or
certify that the rule will not have a
significant impact on a substantial
number of small entities.27 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).
The Final Rule applies 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-forprofit 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 Final Rule will not
have a significant economic impact on
a substantial number of small entities,
and hereby provides notice of that
certification to the Small Business
Administration.
VII. Congressional Review Act
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), the Office of
Information and Regulatory Affairs
designated this rule as not a ‘‘major
rule,’’ as defined by 5 U.S.C. 804(2).
List of Subjects in 16 CFR Part 1
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Administrative practice and
procedure, Animal drugs, Animal
welfare.
For the reasons set forth in the
preamble, the Federal Trade
Commission amends title 16, chapter I,
subchapter A of the Code of Federal
Regulations as follows:
26 44
27 5
U.S.C. 3502(3)(A).
U.S.C. 603–605.
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PART 1—GENERAL PROCEDURES
Subpart U—Oversight of the
Horseracing Integrity and Safety
Authority
1. The authority citation for part 1,
subpart U, continues to read as follows:
■
Authority: 15 U.S.C. 3053(e).
2. Revise the heading for subpart U to
read as set forth above.
■ 3. Add §§ 1.153 through 1.156 to
subpart U to read as follows:
*
*
*
*
*
■
Sec.
1.153 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.
*
*
*
*
*
§ 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 § 1.143 to
submit an annual financial report to the
Commission, detailing the items listed
in paragraphs (a)(1) through (9) of this
section 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 firstclass travel (defined as the highest and
most expensive class of service);
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(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 § 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 § 1.143 to
submit an annual performance report to
the Commission, detailing the items
listed in paragraphs (b)(1) through (11)
of this section 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
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 paragraph (d) of this
section;
(5) A statement from each Board of
Directors committee summarizing its
work in the previous year and all
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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 antidoping 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. Every year, by
August 15, the Authority must follow
the procedures in § 1.143 to 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 firstclass 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
follow the procedures in § 1.143 to
submit its first strategic plan to the
Commission on or before October 15,
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
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16:32 Aug 15, 2024
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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;
(3) Provide useful information for
decision-making;
(4) Be clear, measurable, objective,
and reliable; and
(5) Focus on core program activities
and priorities.
§ 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 § 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
Authority’s 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
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66551
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.
(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
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or medical events that might reasonably
lead to sanctions, track closures, etc.).
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§ 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
§ 4.10(g) of this chapter.
(d) Standing data requests. The
Commission recommends that the
Authority submit Board of Directors
minutes to the Commission’s Office of
the Secretary within 30 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
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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, General Services
Administration (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.
§ 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.
April J. Tabor,
Secretary.
[FR Doc. 2024–18245 Filed 8–15–24; 8:45 am]
BILLING CODE 6750–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
21 CFR Part 866
[Docket No. FDA–2024–N–3655]
Medical Devices; Immunology and
Microbiology Devices; Classification of
the Device To Detect and Identify
Nucleic Acid Targets Including SARS–
CoV–2 in Respiratory Specimens
AGENCY:
Food and Drug Administration,
HHS.
ACTION:
Final amendment; final order.
The Food and Drug
Administration (FDA, Agency, or we) is
classifying the device to detect and
SUMMARY:
PO 00000
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Fmt 4700
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identify nucleic acid targets in
respiratory specimens from microbial
agents that cause the SARS–CoV–2
respiratory infection and other
microbial agents when in a multi-target
test into class II (special controls). The
special controls that apply to the device
type are identified in this order and will
be part of the codified language for the
device to detect and identify nucleic
acid targets in respiratory specimens
from microbial agents that cause the
SARS–CoV–2 respiratory infection and
other microbial agents when in a multitarget test’s classification. We are taking
this action because we have determined
that classifying the device into class II
(special controls) will provide a
reasonable assurance of safety and
effectiveness of the device. We believe
this action will also enhance patients’
access to beneficial innovative devices.
DATES: This order is effective August 16,
2024. The classification was applicable
on March 17, 2021.
FOR FURTHER INFORMATION CONTACT: Uwe
Scherf, Center for Devices and
Radiological Health, Food and Drug
Administration, 10903 New Hampshire
Ave., Bldg. 66, Rm. 3110, Silver Spring,
MD 20993–0002, 301–796–5456,
Uwe.Scherf@fda.hhs.gov.
SUPPLEMENTARY INFORMATION:
I. Background
Upon request, FDA has classified the
device to detect and identify nucleic
acid targets in respiratory specimens
from microbial agents that cause the
SARS–CoV–2 respiratory infection and
other microbial agents when in a multitarget test as class II (special controls),
which we have determined will provide
a reasonable assurance of safety and
effectiveness. In addition, we believe
this action will enhance patients’ access
to beneficial innovation, in part by
placing the device into a lower device
class than the automatic class III
assignment.
The automatic assignment of class III
occurs by operation of law and without
any action by FDA, regardless of the
level of risk posed by the new device.
Any device that was not in commercial
distribution before May 28, 1976, is
automatically classified as, and remains
within, class III and requires premarket
approval unless and until FDA takes an
action to classify or reclassify the device
(see 21 U.S.C. 360c(f)(1)). We refer to
these devices as ‘‘postamendments
devices’’ because they were not in
commercial distribution prior to the
date of enactment of the Medical Device
Amendments of 1976, which amended
the Federal Food, Drug, and Cosmetic
Act (FD&C Act).
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Agencies
[Federal Register Volume 89, Number 159 (Friday, August 16, 2024)]
[Rules and Regulations]
[Pages 66546-66552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-18245]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
16 CFR Part 1
RIN 3084-AB79
Horseracing Integrity and Safety Authority Oversight
AGENCY: Federal Trade Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') is
issuing a final rule (``Final Rule'') regarding oversight of the
Horseracing Integrity and Safety Authority (``Authority''). The Final
Rule includes new oversight provisions to ensure that the Authority
remains publicly accountable and operates in a fiscally prudent, safe,
and effective manner.
DATES: This rule is effective on September 16, 2024.
FOR FURTHER INFORMATION CONTACT: Sarah Botha, (202) 326-2036,
[email protected], Office of the Executive Director, Federal Trade
Commission.
SUPPLEMENTARY INFORMATION: This document states the basis and purpose
for the Commission's decision to adopt the Final Rule addressing the
Commission's oversight of the Authority. The new oversight provisions
were proposed and published for public comment in the Federal Register
on February 8, 2024, in a notice of proposed rulemaking (``NPRM'').\1\
After careful review and consideration of the entire record on the
issues presented in this rulemaking proceeding, including 10 comments
submitted by interested parties, the Commission has decided to adopt,
with a few modifications, the proposed new oversight rule.
---------------------------------------------------------------------------
\1\ FTC, Horseracing Integrity and Safety Authority Oversight,
Proposed Rule, 89 FR 8578 (Feb. 8, 2024).
---------------------------------------------------------------------------
[[Page 66547]]
I. 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 15 U.S.C. 3053.
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).
II. Overview of the Proposed Oversight Rule
In light of the Commission's experience in overseeing the
Authority's operations to date, the Commission proposed several new
rule provisions to ensure effective Commission oversight over the
Authority. The proposed provisions were designed to ensure that the
Authority is promoting transparency and integrity in its operations.
For example, the proposed new rule sections would require the Authority
to submit and publish annual and midyear reports about its performance
and financial position. The proposed new rules would also require the
Authority to develop, maintain, and publish a multiyear strategic plan,
after taking public comments on a 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.
Section-by-Section Analysis
Section 1.153 Submission of the Authority's annual reports, midyear
reports, and strategic plans. This proposed new section would impose
certain requirements on the Authority to report on its finances for the
preceding calendar year by May 15. This would include 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 would impose certain requirements on the
Authority to report by March 31 on its performance for the prior
calendar year. The report would 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), and a summary of Board of Directors committee
recommendations and activities. It would also include 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.
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 would also require
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. The proposed section would have also required
the Authority to develop and publish for public comment a multiyear
strategic plan by June 30, 2024. The Authority would be required to 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 would be required publish its annual financial
reports, annual performance reports, and strategic plans on its
website.
Section 1.154 Enterprise risk management. This proposed new section
would impose 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
noted 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.
Section 1.155 Other best practices. This proposed new section
included a set of best practices to promote accountability,
transparency of operations, and effective resource stewardship of the
Authority. These proposals included 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
[[Page 66548]]
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.
Section 1.156 Severability. This proposed new section noted 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 would continue in
effect.
III. Overview of Public Comments Received in Response to the NPRM
The Commission received 10 comments in response to the NPRM,\2\
representing the views of an industry trade group, individuals and
groups concerned with animal welfare issues, attorneys who have
represented clients in Authority enforcement actions, and individuals
with an interest in the horseracing industry. The Authority also
submitted a comment in which it responded to the comments filed in
response to the NPRM and shared its views regarding the proposed rule.
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\2\ All comments submitted can be found at www.regulations.gov
under Docket ID FTC-2024-0012. We cite public comments by name of
the commenting organization or individual and the comment number.
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The majority of the comments focused on the FTC's proposed
oversight rule, but three comments addressed topics related to the
Authority's rules or suggested other areas that the Commission should
consider for rulemaking.\3\ The remaining comments expressed support
for the proposed rule,\4\ but some comments also submitted suggestions
for additional or amended rule provisions.
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\3\ See Anonymous 5 (seeking the expansion of rules and
regulations for animal welfare, cruelty and abuse); Lange 6
(requesting a change in the Authority's rules addressing eligibility
requirements for Covered Horses); WhoPoo App 9 (asking the FTC to
mandate that all horseracing venues include a horse/equine rescue
allotment and fund).
\4\ See, e.g., Bell 2 (expressing support for actions to improve
the integrity of the governing of horseracing, and opining that
Congress authorized the FTC to engage in this rulemaking); Humane
Society of the United States and Humane Society Legislative Fund 12
(noting that ``increased transparency will be integral to ensuring
the safety and welfare of horses and jockeys, and key to monitoring
effective enforcement of the Horseracing Integrity and Safety
Act'').
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One comment, submitted by two attorneys who have represented
Covered Persons in enforcement actions brought under the Authority's
rules, stated that increased scrutiny of the Authority by the FTC is
needed and welcomed, but urged the Commission to include additional
requirements for the Authority, such as public disclosure of all
contracts, travel expenses, and line item costs for hearings.\5\ The
Commission appreciates the commenters' suggestions but believes the
proposed rule strikes the right balance between mandating the
disclosure of information to bring greater transparency and
accountability to the Authority's operations without depleting limited
resources with overly burdensome disclosure requirements. The rule will
require the Authority to publish on its website annual financial and
performance reports providing significant details regarding the
Authority's expenditures and operations, along with a multiyear
strategic plan that is developed with public input. Existing Commission
rules require further information to be submitted annually during the
budget review process, which the Commission publishes in the Federal
Register, and the Commission can seek additional information through
its process of reviewing and approving the Authority's budget.\6\
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\5\ Fisco 7. The commenters also opined on several existing
rules of the Authority, which are beyond the scope of this
rulemaking.
\6\ See 16 CFR 1.151(a).
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Another commenter expressed support for the proposed rule, but
opined that the rule provisions fall short in the area of
enforcement.\7\ The commenter seems to be under the impression that the
Authority has exempted sales companies and breeders from the
application of 15 U.S.C. 3059. That statutory provision says that in
connection with the sale of Covered Horses (or horses anticipated to be
covered), it is a violation of section 5 of the FTC Act, 15 U.S.C. 45,
to fail to make certain disclosures. See 15 U.S.C. 45(a) (prohibiting
``unfair or deceptive acts or practices in or affecting commerce'').
Section 5, however, is enforced only by the FTC, not the Authority.
Another section of HISA does permit the Authority to refer matters to
the Commission and recommend that the Commission pursue an enforcement
action under 15 U.S.C. 3059. See 15 U.S.C. 3054(c)(2). The discretion
to pursue such an action, however, rests solely with the Commission.
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\7\ Roberts 4. The commenter also opined on several existing
rules of the Authority, which are beyond the scope of this
rulemaking.
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Another commenter believed that the proposed rule would be greatly
beneficial to the horseracing industry but opined that the rule was
``lacking in the enforcement of best practices'' and should include
penalties for violations of the rule in order to incentivize
compliance.\8\ The Commission fully expects that the Authority will
comply with the Final Rule, and that the Authority would seek a
modification from the Commission if there were any provisions in the
rule that the Authority anticipated would present compliance
difficulties. In fact, the Authority has filed a comment expressing its
thoughts on the proposed rule and requesting some minor changes to the
rule, as discussed below. To date, the Authority has complied with the
rules the Commission has promulgated addressing submissions to the FTC
under the Act,\9\ review of final civil sanctions,\10\ and review of
the Authority's annual budget.\11\ The Commission fully anticipates
that the Authority will comply with the Final Rule.
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\8\ Newcomer 11. The commenter also criticized the rule for
failing to address the treatment of horses by parties involved in
horseracing. This falls outside the scope of this rulemaking. The
Authority, however, has rules that address the topics raised by the
commenter, including the humane treatment of equine athletes and
bans on performance-enhancing drugs, and all of the commenters are
encouraged to file comments on those rules when proposed
modifications are published by the Authority or by the Commission.
See, e.g., FTC, Horseracing Integrity and Safety Authority Anti-
Doping and Medication Control Rule Modification, proposed rule
modification, 88 FR 65683 (Sept. 25, 2023); FTC, Horseracing
Integrity and Safety Authority Racetrack Safety Rule Modification,
proposed rule modification, 89 FR 24574 (Apr. 8, 2024).
\9\ 16 CFR 1.140 through 1.144.
\10\ 16 CFR 1.145 through 1.149.
\11\ 16 CFR 1.150 through 1.152.
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A comment from the National Horsemen's Benevolent & Protective
Association (``NHBPA'') supported the Commission's goal to bring
transparency to the Authority's operations, but opined that the
proposed rule is not authorized by the Act.\12\ Specifically, the NHBPA
posited that 15 U.S.C. 3053(e) allows the FTC to initiate rules to
``abrogate, add to, [or] modify the rules of the Authority promulgated
in accordance with [HISA],'' but that the proposed rule does not
abrogate, add to, or modify the Authority's rules and is therefore
unauthorized by the Act.\13\ The Commission disagrees that it lacks
statutory authority to promulgate the proposed rule.
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\12\ NHBPA 8.
\13\ Id.
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The proposed rule is in accordance with 15 U.S.C. 3053(e). Congress
provided there that ``[t]he Commission, by rule in accordance with''
the Administrative Procedure Act, ``may . . . add to . . . the rules of
the Authority promulgated in accordance with'' HISA ``as the Commission
finds necessary or appropriate to ensure the
[[Page 66549]]
fair administration of the Authority . . . or otherwise in furtherance
of the purposes of [the Act].'' 15 U.S.C. 3053(e). The proposed rule
``add[s] to'' the rules that the Authority has promulgated in
accordance with the Act and does so ``to ensure the fair administration
of the Authority . . . or otherwise in furtherance of the purposes of
[the Act].'' Id. The plain text of HISA thus authorizes the Commission
to promulgate the proposed rule.\14\
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\14\ The NHBPA opined that the Act prohibits the FTC from
promulgating a proposed rule unless the Authority has ``already
adopted a rule on the topic.'' Id. (emphasis added). That supposed
limitation on the Commission's authority is nowhere in the plain
text of the statute.
---------------------------------------------------------------------------
Apart from its belief that Congress would be the appropriate entity
to promulgate the proposed rule, the NHBPA stated that it ``supports
the substance behind'' proposed Sec. Sec. 1.153, 1.154, and 1.155,
including the requirements for an annual financial report with an
independent audit, an annual performance report with summaries of the
Authority's enforcement activities, a multiyear strategic plan, and
enterprise risk management activities.\15\
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\15\ NHBPA 8.
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Finally, the Authority submitted a comment in which it responded to
some of the public comments submitted in response to the NPRM and
suggested some modifications to the rule as proposed.\16\ Specifically,
the Authority requested that the deadline for submitting the first
annual financial report under Sec. 1.153(a) be changed from May 15,
2024, to June 17, 2024. This request is now moot.
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\16\ Horseracing Integrity and Safety Authority 10.
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The Authority also requested that the annual deadline for
submitting a same-year midyear report under Sec. 1.153(c) be changed
from August 15 to August 30, to ``provide adequate time for the CFO to
complete this report after the proposed budget is submitted to the
Commission.'' \17\ Under the FTC's Rules, the Authority's proposed
annual budget for the following year must be submitted to the
Commission by August 1 each year,\18\ and the Commission must approve
or disapprove the proposed budget by November 1, or as soon thereafter
as practicable, after publishing the proposed budget for public
comment.\19\ The Commission believes that the midyear report required
under Sec. 1.153(c) will inform the Commission's consideration of the
Authority's proposed budget for the following year and that delaying
the submission of the midyear report would hinder the Commission's
ability to fully consider the report prior to voting on the proposed
budget. The Commission's need for the midyear report outweighs the
Authority's need for an extension and, for this reason, the Authority's
request is denied and the proposed reporting deadline of August 15 is
retained in the Final Rule.
---------------------------------------------------------------------------
\17\ Id.
\18\ See 16 CFR 1.150(a).
\19\ See 16 CFR 1.150(d) and 1.151(a).
---------------------------------------------------------------------------
The Authority requested that the submission deadline for the
initial multiyear strategic plan under Sec. 1.153(d) be changed from
June 30, 2024, to August 30, 2024.\20\ In order to permit the Authority
sufficient time to publish its draft strategic plan for public comment
and finalize the plan subsequent to the effective date of the Final
Rule, the Commission has changed the deadline for submission of the
initial multiyear strategic plan to October 15, 2024.
---------------------------------------------------------------------------
\20\ Horseracing Integrity and Safety Authority 10.
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The Authority requested that the documented market research
requirement for procurement actions required under Sec. 1.154(c) be
applicable to procurement actions estimated at over $50,000, rather
than (as proposed) procurement actions estimated at over $10,000.\21\
The Commission does not believe that documenting market research for
procurement actions estimated at over $10,000 will be unreasonably
burdensome, so it declines this request.
---------------------------------------------------------------------------
\21\ Id.
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The Authority requested that the recommendation of Sec. 1.155(d)
for the Authority to submit Board of Directors minutes to the
Commission's Office of the Secretary be changed from within 15 days
following each Board meeting to within 30 days following each Board
meeting, to provide adequate time for the Board minutes to be prepared
and approved by the Board.\22\ The Commission finds this request to be
reasonable and has changed the recommended submission deadline in the
Final Rule to within 30 days following each Board meeting.
---------------------------------------------------------------------------
\22\ Id.
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Finally, regarding the recommendation in Sec. 1.155(g) that the
Authority ``use standard, GSA [General Services Administration]-
established, published per diem rates when determining how much a
person may spend on lodging, meals, and incidental expenses,'' the
Authority commented that it ``does not receive government lodging rates
and therefore, the Authority does not believe that the use of standard
GSA-established, published per diem rates will be practical.'' \23\ The
Commission believes that the travel policy recommendation in the
proposed rule is reasonable, and has retained it in the Final Rule.\24\
The Commission notes that the recommendation also states,
``Nevertheless, actual subsistence expenses may be authorized under
unusual circumstances with justification and prior approval from the
appropriate approving official.'' This recommendation is similar to GSA
regulations that apply to Federal agencies.\25\ The Authority's travel
policy should specify what rate it will use when authorizing travel,
and the Final Rule recommends that rate should be based upon standard,
GSA-established, published per diem rates. The Authority could,
however, establish a policy whereby it authorizes the standard, GSA-
established, published per diem rates for mileage reimbursement and for
meals and incidental expenses, while basing its rate for lodging on the
GSA rate with allowances for deviations from that rate within a certain
range. For example, the Authority could require that lodging be within
the GSA-established rate but, if an employee cannot find a room within
that rate, the Authority could allow lodging to exceed the GSA-
established rate by up to 300 percent, as necessary and with approval
from a designated official.
---------------------------------------------------------------------------
\23\ Id.
\24\ Government per diem rates are updated annually at https://www.gsa.gov/travel, and available to Authority staff to refer to.
\25\ See 41 CFR 301-11.30 (``What is my option if the Government
lodging rate exceeds my lodging reimbursement? . . . You may request
reimbursement on an actual expense basis, not to exceed 300 percent
of the maximum per diem allowance.'').
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IV. The Final Rule
In this document, the Commission adopts the proposed new provisions
as final, with the two minor changes discussed above. The Final Rule
also adds references in Sec. 1.153(c) and (d) to following the
procedures in Sec. 1.143 for submissions to the Commission and, in
this way, mirrors Sec. 1.153(a) and (b) and clarifies the applicable
submissions requirements. The Final Rule also clarifies that the
midyear reporting requirement in Sec. 1.153(c) is an annual one.
The Commission is adding the Final Rule as 16 CFR 1.153 through
1.156 in subpart U of part 1 of its Rules of Practice. Subpart U is
therefore renamed ``Oversight of the Horseracing Integrity and Safety
Authority'' to more accurately reflect the content of the amended
subpart.
V. Paperwork Reduction Act
The Paperwork Reduction Act (``PRA''), 44 U.S.C. chapter 35,
requires
[[Page 66550]]
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.''
\26\ The Commission concludes that the PRA does not apply to the
amendments because they only apply to one ``person,'' the Authority.
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\26\ 44 U.S.C. 3502(3)(A).
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VI. 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 a Final Regulatory Flexibility Analysis with a
final rule, or certify that the rule will not have a significant impact
on a substantial number of small entities.\27\ 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).
---------------------------------------------------------------------------
\27\ 5 U.S.C. 603-605.
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The Final Rule applies 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 Final Rule will not have a significant
economic impact on a substantial number of small entities, and hereby
provides notice of that certification to the Small Business
Administration.
VII. Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a ``major rule,'' as defined by 5 U.S.C. 804(2).
List of Subjects in 16 CFR Part 1
Administrative practice and procedure, Animal drugs, Animal
welfare.
For the reasons set forth in the preamble, the Federal Trade
Commission amends title 16, chapter I, subchapter A of the Code of
Federal Regulations as follows:
PART 1--GENERAL PROCEDURES
Subpart U--Oversight of the Horseracing Integrity and Safety
Authority
0
1. The authority citation for part 1, subpart U, continues to read as
follows:
Authority: 15 U.S.C. 3053(e).
0
2. Revise the heading for subpart U to read as set forth above.
0
3. Add Sec. Sec. 1.153 through 1.156 to subpart U to read as follows:
* * * * *
Sec.
1.153 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.
* * * * *
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 in paragraphs
(a)(1) through (9) of this section 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 in
paragraphs (b)(1) through (11) of this section 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 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
paragraph (d) of this section;
(5) A statement from each Board of Directors committee summarizing
its work in the previous year and all
[[Page 66551]]
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. Every year, by August 15, the Authority must
follow the procedures in Sec. 1.143 to 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 follow the procedures in
Sec. 1.143 to submit its first strategic plan to the Commission on or
before October 15, 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;
(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 Authority's 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.
(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
[[Page 66552]]
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) of this chapter.
(d) Standing data requests. The Commission recommends that the
Authority submit Board of Directors minutes to the Commission's Office
of the Secretary within 30 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, General Services Administration (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.
April J. Tabor,
Secretary.
[FR Doc. 2024-18245 Filed 8-15-24; 8:45 am]
BILLING CODE 6750-01-P