15 U.S.C. § 3053 — Federal Trade Commission oversight

Page 1975 TITLE 15—COMMERCE AND TRADE § 3053 (aa) the annual budget of the Author- ity for the following calendar year, as approved by the Board; and (bb) the projected amount of covered racing starts for the year in each State; and (II) take into account other sources of Authority revenue. (iii) Requirements regarding budgets of Authority (I) Initial budget The initial budget of the Authority shall require the approval of 2⁄3 of the Board. (II) Subsequent budgets Any subsequent budget that exceeds the budget of the preceding calendar year by more than 5 percent shall re- quire the approval of 2⁄3 of the Board. (iv) Rate increases (I) In general A proposed increase in the amount re- quired under this subparagraph shall be reported to the Commission. (II) Notice and comment The Commission shall publish in the Federal Register such a proposed in- crease and provide an opportunity for public comment. (2) Assessment and collection of fees by States (A) Notice of election Any State racing commission that elects to remit fees pursuant to this subsection shall notify the Authority of such election not later than 60 days before the program ef- fective date. (B) Requirement to remit fees After a State racing commission makes a notification under subparagraph (A), the election shall remain in effect and the State racing commission shall be required to remit fees pursuant to this subsection according to a schedule established in rule developed by the Authority and approved by the Commis- sion. (C) Withdrawal of election A State racing commission may cease re- mitting fees under this subsection not ear- lier than one year after notifying the Au- thority of the intent of the State racing commission to do so. (D) Determination of methods Each State racing commission shall deter- mine, subject to the applicable laws, regula- tions, and contracts of the State, the meth- od by which the requisite amount of fees, such as foal registration fees, sales contribu- tions, starter fees, and track fees, and other fees on covered persons, shall be allocated, assessed, and collected. (3) Assessment and collection of fees by the Au- thority (A) Calculation If a State racing commission does not elect to remit fees pursuant to paragraph (2) or withdraws its election under such para- graph, the Authority shall, not less fre- quently than monthly, calculate the applica- ble fee per racing start multiplied by the number of racing starts in the State during the preceding month. (B) Allocation The Authority shall allocate equitably the amount calculated under subparagraph (A) collected among covered persons involved with covered horseraces pursuant to such rules as the Authority may promulgate. (C) Assessment and collection (i) In general The Authority shall assess a fee equal to the allocation made under subparagraph (B) and shall collect such fee according to such rules as the Authority may promul- gate. (ii) Remittance of fees Covered persons described in subpara- graph (B) shall be required to remit such fees to the Authority. (D) Limitation A State racing commission that does not elect to remit fees pursuant to paragraph (2) or that withdraws its election under such paragraph shall not impose or collect from any person a fee or tax relating to anti- doping and medication control or racetrack safety matters for covered horseraces. (4) Fees and fines Fees and fines imposed by the Authority shall be allocated toward funding of the Au- thority and its activities. (5) Rule of construction Nothing in this chapter shall be construed to require— (A) the appropriation of any amount to the Authority; or (B) the Federal Government to guarantee the debts of the Authority. (g) Quorum For all items where Board approval is re- quired, the Authority shall have present a ma- jority of independent members. (Pub. L. 116–260, div. FF, title XII, § 1203, Dec. 27, 2020, 134 Stat. 3253.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (f)(5), was in the original ‘‘this Act’’ and was translated as reading ‘‘this title’’, meaning title XII of div. FF of Pub. L. 116–260, to reflect the probable intent of Congress. § 3053. Federal Trade Commission oversight (a) In general The Authority shall submit to the Commis- sion, in accordance with such rules as the Com- mission may prescribe under section 553 of title 5, any proposed rule, or proposed modification to a rule, of the Authority relating to— (1) the bylaws of the Authority; Page 1976 TITLE 15—COMMERCE AND TRADE § 3054 1 So in original. Probably should be ‘‘subsection (k)’’. (2) a list of permitted and prohibited medica- tions, substances, and methods, including al- lowable limits of permitted medications, sub- stances, and methods; (3) laboratory standards for accreditation and protocols; (4) standards for racing surface quality maintenance; (5) racetrack safety standards and protocols; (6) a program for injury and fatality data analysis; (7) a program of research and education on safety, performance, and anti-doping and medication control; (8) a description of safety, performance, and anti-doping and medication control rule viola- tions applicable to covered horses and covered persons; (9) a schedule of civil sanctions for viola- tions; (10) a process or procedures for disciplinary hearings; and (11) a formula or methodology for deter- mining assessments described in section 3052(f) of this title. (b) Publication and comment (1) In general The Commission shall— (A) publish in the Federal Register each proposed rule or modification submitted under subsection (a); and (B) provide an opportunity for public com- ment. (2) Approval required A proposed rule, or a proposed modification to a rule, of the Authority shall not take ef- fect unless the proposed rule or modification has been approved by the Commission. (c) Decision on proposed rule or modification to a rule (1) In general Not later than 60 days after the date on which a proposed rule or modification is pub- lished in the Federal Register, the Commis- sion shall approve or disapprove the proposed rule or modification. (2) Conditions The Commission shall approve a proposed rule or modification if the Commission finds that the proposed rule or modification is con- sistent with— (A) this chapter; and (B) applicable rules approved by the Com- mission. (3) Revision of proposed rule or modification (A) In general In the case of disapproval of a proposed rule or modification under this subsection, not later than 30 days after the issuance of the disapproval, the Commission shall make recommendations to the Authority to mod- ify the proposed rule or modification. (B) Resubmission The Authority may resubmit for approval by the Commission a proposed rule or modi- fication that incorporates the modifications recommended under subparagraph (A). (d) Proposed standards and procedures (1) In general The Authority shall submit to the Commis- sion any proposed rule, standard, or procedure developed by the Authority to carry out the horseracing anti-doping and medication con- trol program or the racetrack safety program. (2) Notice and comment The Commission shall publish in the Federal Register any such proposed rule, standard, or procedure and provide an opportunity for pub- lic comment. (e) Amendment by Commission of rules of au- thority The Commission, by rule in accordance with section 553 of title 5, may abrogate, add to, and modify the rules of the Authority promulgated in accordance with this chapter as the Commis- sion finds necessary or appropriate to ensure the fair administration of the Authority, to conform the rules of the Authority to requirements of this chapter and applicable rules approved by the Commission, or otherwise in furtherance of the purposes of this chapter. (Pub. L. 116–260, div. FF, title XII, § 1204, Dec. 27, 2020, 134 Stat. 3257; Pub. L. 117–328, div. O, title VII, § 701, Dec. 29, 2022, 136 Stat. 5231.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (c)(2)(A) and (e), was in the original ‘‘this Act’’ and was translated as reading ‘‘this title’’, meaning title XII of div. FF of Pub. L. 116–260, to reflect the probable intent of Con- gress. AMENDMENTS 2022—Subsec. (e). Pub. L. 117–328 amended subsec. (e) generally. Prior to amendment, text read as follows: ‘‘The Commission may adopt an interim final rule, to take effect immediately, under conditions specified in section 553(b)(B) of title 5, if the Commission finds that such a rule is necessary to protect— ‘‘(1) the health and safety of covered horses; or ‘‘(2) the integrity of covered horseraces and wager- ing on those horseraces.’’ § 3054. Jurisdiction of the Commission and the Horseracing Integrity and Safety Authority (a) In general Beginning on the program effective date, the Commission, the Authority, and the anti-doping and medication control enforcement agency, each within the scope of their powers and re- sponsibilities under this chapter, as limited by subsection (j),1 shall— (1) implement and enforce the horseracing anti-doping and medication control program and the racetrack safety program; (2) exercise independent and exclusive na- tional authority over— (A) the safety, welfare, and integrity of covered horses, covered persons, and covered horseraces; and (B) all horseracing safety, performance, and anti-doping and medication control mat-