The United States Supreme Court has temporarily stayed a Fifth Circuit Court of Appeals ruling that declared the Horse Safety and Integrity Authority’s (HISA) enforcement rules unconstitutional, preventing an immediate shutdown of the billion-dollar horse racing industry. Created to set uniform safety standards for the American racing industry, HISA plays an important role in overseeing the safety of both horses and riders. The sport, which generates $3.6 billion in revenue annually, according to Statista, has been criticized for horse deaths and inconsistent rules across the state. Congress created HISA in 2020 to address these issues and provide a national regulatory framework to ensure safe racetrack conditions and anti-doping standards. HISA was fully implemented in May 2023 and is overseen by the Federal Trade Commission (FTC).
However, the Fifth Circuit recently ruled that HISA’s enforcement authority violates the private non-delegation doctrine, which limits Congress from delegating regulatory authority to private entities without adequate oversight. If this ruling goes into effect, the security measures that HISA has implemented since its inception could be revoked. Justice Samuel Alito’s temporary stay will delay implementation of the Fifth Circuit’s ruling and give the high court time to consider whether it should hear the case fully. HISA’s legal team argues the industry will face “irreparable harm”, including horse deaths and regulatory confusion, as the sport returns to state oversight. Under Alito’s order, the National Equestrian Protection and Protection Association, along with its affiliates, persuaded the 5th Circuit Court of Appeals to rule on HISA and have until Sept. 30 to respond to that request.
The Fifth Circuit’s ruling contradicts the Sixth Circuit’s decision upholding the constitutionality of HISA. HISA was deemed constitutional after Congress amended the law to give the FTC greater oversight of the agency’s regulations. This judicial split raises important constitutional questions and makes it more likely that the Supreme Court will ultimately hear the case. Supporters of HISA believe the organization has been instrumental in securing the future of the industry by reducing fatalities and improving the overall integrity of the sport. They note a 38% decrease in horse deaths in the first quarter of 2024 and attribute this positive change to HISA’s uniform standards. In addition to these results, advocates compare the success of other private regulators, such as the Financial Industry Regulatory Authority (FINRA), which have been found constitutional by the courts.
Supporters also claim that HISA has helped prevent “irreparable damage” to the horse racing industry. They warn that without oversight, the sport could rely on inconsistent state regulations, increasing the risks to horses and riders.
