United States Court of Appeals for the Fifth Circuit ____________ United States Court of Appeals Fifth Circuit

No. 23-10520 FILED July 5, 2024 ____________ Lyle W. Cayce National Horsemen’s Benevolent and Protective Clerk Association; Arizona Horsemen’s Benevolent and Protective Association; Arkansas Horsemen’s Benevolent and Protective Association; Indiana Horsemen’s Benevolent and Protective Association; Illinois Horsemen’s Benevolent and Protective Association; Louisiana Horsemen’s Benevolent and Protective Association; Mountaineer Park Horsemen’s Benevolent and Protective Association; Nebraska Horsemen’s Benevolent and Protective Association; Oklahoma Horsemen’s Benevolent and Protective Association; Oregon Horsemen’s Benevolent and Protective Association; Pennsylvania Horsemen’s Benevolent and Protective Association; Washington Horsemen’s Benevolent and Protective Association; Tampa Bay Horsemen’s Benevolent and Protective Association; Gulf Coast Racing, L.L.C.; LRP Group, Limited; Valle de Los Tesoros, Limited; Global Gaming LSP, L.L.C.; Texas Horsemen’s Partnership, L.L.P.,

Plaintiffs—Appellants, State of Texas; Texas Racing Commission,

Intervenor Plaintiffs—Appellants,

versus Jerry Black; Katrina Adams; Leonard Coleman; MD Nancy Cox; Joseph Dunford; Frank Keating; Kenneth Case: 23-10520 Document: 198-1 Page: 2 Date Filed: 07/05/2024

Schanzer; Horseracing Integrity and Safety Authority, Incorporated; Federal Trade Commission; Commissioner Noah Phillips; Commissioner Christine Wilson; Lisa Lazarus; Steve Beshear; Adolpho Birch; Ellen McClain; Charles Scheeler; Joseph DeFrancis; Susan Stover; Bill Thomason; Lina Khan, Chair; Rebecca Slaughter, Commissioner; Alvaro Bedoya, Commissioner; D. G. Van Clief,

Defendants—Appellees. ______________________________

Appeal from the United States District Court for the Northern District of Texas USDC Nos. 5:21-CV-71, 5:23-CV-77 ______________________________ Before King, Duncan, and Engelhardt, Circuit Judges. Stuart Kyle Duncan, Circuit Judge: We again consider constitutional challenges to the Horseracing Integrity and Safety Act of 2020 (“HISA”). In HISA, Congress empowered a private corporation—the Horseracing Integrity and Safety Authority (“Authority”)—to create and enforce nationwide rules for thoroughbred horseracing. Last time, we held HISA facially unconstitutional under the private nondelegation doctrine because the Authority’s rulemaking was not subordinate to the Federal Trade Commission (“FTC”). See Nat’l Horsemen’s Benevolent & Protective Ass’n v. Black (Horsemen’s I), 53 F.4th 869 (5th Cir. 2022). At the time, we did not consider a separate nondelegation challenge to the Authority’s enforcement power. Congress responded to our decision by amending HISA, giving the FTC power to abrogate, add to, or modify the Authority’s rules. On remand, the district court held the amendment cured HISA’s constitutional deficiencies because the FTC now has general rulemaking power over the Authority’s activities. It also rejected claims raised by a new

2 Case: 23-10520 Document: 198-1 Page: 3 Date Filed: 07/05/2024

No. 23-10520

plaintiff, Gulf Coast Racing LLC (“Gulf Coast”), that HISA violates the Constitution’s Appointments Clause because