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STATE OF OKLAHOMA; OKLAHOMA HORSE RACING COMMISSION;
TULSA COUNTY PUBLIC FACILITIES AUTHORITY, dba Fair Meadows
Racing and Sports Bar; STATE OF WEST VIRGINIA; WEST VIRGINIA
RACING COMMISSION; HANOVER SHOE FARMS, INC.; OKLAHOMA
QUARTER HORSE RACING ASSOCIATION; GLOBAL GAMING RP,
LLC, dba Remington Park; WILL ROGERS DOWNS, LLC; UNITED
STATES TROTTING ASSOCIATION; STATE OF LOUISIANA,
Plaintiffs-Appellants,
v.
UNITED STATES OF AMERICA; HORSERACING INTEGRITY AND
SAFETY AUTHORITY, INC.; LEONARD S. COLEMAN, JR.; NANCY M.
COX; FEDERAL TRADE COMMISSION; REBECCA KELLY SLAUGHTER,
in her official capacity as Acting Chair of the Federal Trade
Commission; NOAH JOSHUA PHILLIPS, in his official capacity as
Commissioner of the Federal Trade Commission; ALVARO
BEDOYA, in his official capacity as Commissioner of the Federal
Trade Commission; CHRISTINE S. WILSON, in her official capacity
as Commissioner of the Federal Trade Commission; STEVE
BESHEAR; ADOLPHO A. BIRCH, JR.; ELLEN MCCLAIN; CHARLES P.
SCHEELER; JOSEPH DEFRANCIS; SUSAN STOVER; BILL THOMASON;
D.G. VAN CLIEF; LINA KHAN,
Defendants-Appellees. |
No. 22-5487 |
Appeal from the United States District Court for the Eastern District of Kentucky at Lexington.
No. 5:21-cv-00104—Joseph M. Hood, District Judge.
Argued: December 7, 2022
Decided and Filed: March 3, 2023
Before: SUTTON, Chief Judge; COLE and GRIFFIN, Circuit Judges.
_________________________
OPINION
_________________________
SUTTON, Chief Judge. Sometimes government works. In 2020, when Congress enacted
the Horseracing Safety and Integrity Act to create a national framework to regulate thoroughbred
horseracing, it generated several non-delegation and anti-commandeering challenges to the
validity of the Act. The lead challenge—the non-delegation challenge—turned on the reality that
the Act replaced several state regulatory authorities with a private corporation, the Horseracing
Authority, which became the Act’s primary rule-maker and which was not subordinate to the
relevant public agency, the Federal Trade Commission, in critical ways. The Fifth Circuit
declared the Act unconstitutional because it gave “a private entity the last word” on federal law.
In response, Congress amended the Act to give the Federal Trade Commission discretion
to “abrogate, add to, and modify” any rules that bind the industry. Consolidated Appropriations
Act of 2023, Pub. L. No. 117-328, 136 Stat. 4459 (2022). The Constitution anticipates, though it
does not require, constructive exchanges between Congress and the federal courts. See
Youngstown Sheet & Tube Co. v. Sawyer, 343 U.S. 579, 635 (1952) (Jackson, J., concurring)
(explaining that “interdependence” and “reciprocity” should characterize the relationship
between the branches as much as “separateness” and “autonomy”). A productive dialogue
occurred in this instance, and it ameliorated the concerns underlying the non-delegation
challenge. As amended, the Horseracing Act gives the FTC the final say over implementation of
the Act relative to the Horseracing Authority, allowing us to uphold the Act as constitutional in
the face of this non-delegation challenge as well as the anti-commandeering challenge. |
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