N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 237

§ 237. Capital improvements. 1. Definitions. For the purposes of this\nsection, the following terms shall have the meanings set forth unless\nthe context requires a different meaning:\n a. "Board" shall mean the New York state racing and wagering board.\n b. "Capital improvement" shall mean any addition to, replacement of or\nremodeling of the physical plant, structures and equipment now or\nhereafter owned or leased by a racing corporation which is used or is to\nbe used by such corporation in connection with the conduct of horse race\nmeetings, and shall include improvements to land but not land itself.\n 2. (a) Any non-franchised corporation authorized under this chapter to\nconduct pari-mutuel betting at a race meeting on races run thereat, may\nelect upon thirty days written notice to the racing and wagering board\nto withhold from the pari-mutuel pool in addition to any other amounts\nrequired by this section, one per centum of the total deposits in pools\nresulting from regular and multiple on-track bets; provided, however,\nthat any such corporation withholding pursuant to this subdivision shall\nuse at least fifty percent of such one per centum exclusively for\ncapital improvements as defined in subdivision one of this section\nsubject to the rules and regulations of the racing and wagering board.\nAn amount, not to exceed fifty percent of such one per centum, may be\nused for advertising and promotion expenses subject to the rules and\nregulations of the board. For the purposes of this paragraph the term\n"advertising" shall be limited to paid advertising through radio,\ntelevision, the print media, direct mail or billboards. Promotions shall\nmean activities which are intended to increase the attendance at, or\nvisibility of, any such corporation and shall include premium\ngive-aways, prizes, free admission, free parking, free programs,\nadditional monies for purses or other activities of a promotional nature\nwhich stimulate on track attendance. In no event shall this section be\nconstrued to permit the payment of salaries to employees of any such\ncorporation who are engaged in advertising or promotional activities,\nprovided, however, that monies credited to such capital improvement\naccount on or before July first, nineteen hundred ninety-six, as\ncertified by the board, shall not be expended for any such advertising\nand promotion as defined herein. Such election shall terminate upon\nthirty days written notice to the board.\n (b) At least once annually, prior to approving any plan for the\nexpenditure of such capital improvement funds pursuant to this section,\nthe board shall, together with the track operator and representatives of\nthe horsemen's organization representing owners and trainers utilizing\nthe facility and representatives of the jockeys organization\nrepresenting licensed jockeys and apprentice jockeys regularly riding or\nexercising at such facility, inspect the entire facility, including the\narea commonly referred to as the backstretch, in order to determine\nwhether the capital improvement plan submitted by the corporation for\nboard approval includes adequate provision for expenditures relating to\nthe continued health, safety and well-being of patrons, jockeys,\nbackstretch personnel and the horses in their care. After such\ninspection, if the board shall determine that such proposed plan does\nnot include adequate provision for repairs and improvements necessary to\ncorrect any conditions that it has determined to be unsafe or otherwise\ndeleterious to the health and safety of patrons, jockeys, employees or\nhorses, the board shall require the track operator to modify its capital\nimprovement plan to provide for the expenditure of funds for such\nrepairs and improvements.\n 3. On or after July first, nineteen hundred ninety such amounts as may\nbe withheld for the purposes of this section shall be deposited in a\ntrust fund, kept and maintained by such corporation and administered by\na trustee approved by the racing and wagering board for the purpose of\nlending such sums and any interest thereon on an unsecured basis to such\ncorporation exclusively for capital improvements as defined in\nsubdivision one of this section. All such amounts borrowed by such\ncorporation from such trust shall be forgiven and deemed satisfied\naccording to a schedule of depreciation deductions for federal and New\nYork state income tax purposes for such related capital improvements. It\nis further provided that at such time as such corporation shall\nsurrender its pari-mutuel license or franchise or fail to apply for a\npari-mutuel license for the succeeding year by December thirty-first of\nthe preceding year that the racing and wagering board may declare the\ntrust fund at an end and all sums therein deposited plus all sums due or\nowing from such corporation to such trust shall be disposed of in\naccordance with provisions of law to be enacted for such purpose. Such\ntrust shall be established and administered pursuant to the rules and\nregulations of the racing and wagering board.\n