2006 New York Code - Capital Improvements.

 
    §  319. Capital improvements. 1. Definitions. For the purposes of this
  section, the following terms shall have the meanings  set  forth  unless
  the context requires a different meaning:
    a. "Board" shall mean the New York state racing and wagering board.
    b. "Capital improvement" shall mean any addition to, replacement of or
  remodeling  of  the  physical  plant,  structures  and  equipment now or
  hereafter owned or leased by a racing corporation or  association  which
  is  used  or  is  to  be  used  by  such  corporation  or association in
  connection with the conduct of horse race meetings,  and  shall  include
  improvements to land but not land itself.
    2.  (a)  Notwithstanding  the  provisions  of  section  three  hundred
  eighteen of this article, a harness track, may elect  upon  thirty  days
  written notice to the racing and wagering board to withhold, in addition
  to  any  other  amounts  required by this section, one per centum of the
  total deposits in  pools  resulting  from  regular  and  multiple  bets,
  provided,  however,  that any harness track withholding pursuant to this
  subdivision shall use at least fifty percent  of  such  one  per  centum
  exclusively  for  capital  improvements as defined in subdivision one of
  this section subject to the rules and  regulations  of  the  racing  and
  wagering  board.  An amount, not to exceed fifty percent of such one per
  centum, may be used for advertising and promotion  expenses  subject  to
  the  rules and regulations of the board. Provided further, however, that
  if the harness track was owned prior to December thirty-first,  nineteen
  hundred  eighty-five,  by  a  nonprofit  county agricultural society and
  leased by a racing association such one per centum shall be paid by  the
  association  to  the  society as additional rent. Such society shall use
  such one per centum exclusively for capital improvements as  defined  in
  subdivision  one of this section subject to the rules and regulations of
  the racing  and  wagering  board.  The  capital  improvements  shall  be
  determined  by  a  committee  of  the  society composed of the executive
  director of the society, the chairman of the board of directors  of  the
  racing  association,  or  his  designee,  and the general manager of the
  racing  association.  For  the  purposes  of  this  paragraph  the  term
  "advertising"  shall  be  limited  to  paid  advertising  through radio,
  television, the print media, direct mail or billboards. Promotions shall
  mean activities which are intended to increase  the  attendance  at,  or
  visibility  of,  a  harness  track and shall include premium give-aways,
  prizes, free admission, free parking, free programs,  additional  monies
  for  purses  or other activities of a promotional nature which stimulate
  on track attendance. In no event shall  this  section  be  construed  to
  permit  the payment of salaries to employees of such a harness track who
  are engaged in advertising or promotional activities.
    (b) At least once annually,  prior  to  approving  any  plan  for  the
  expenditure  of such capital improvement funds pursuant to this section,
  the board shall, together with the track operator and representatives of
  the horsemen's organization representing owners and  trainers  utilizing
  the  facility,  inspect the entire facility, including the area commonly
  referred to as the  backstretch,  in  order  to  determine  whether  the
  capital improvement plan submitted by the association or corporation for
  board  approval includes adequate provision for expenditures relating to
  the continued health, safety  and  well-being  of  patrons,  backstretch
  personnel  and  the  horses in their care. After such inspection, if the
  board shall determine that such proposed plan does not include  adequate
  provision   for  repairs  and  improvements  necessary  to  correct  any
  conditions that it has determined to be unsafe or otherwise  deleterious
  to  the  health  and  safety  of patrons, employees or horses, the board
  shall require the track operator to modify its capital improvement  plan
  to   provide   for  the  expenditure  of  funds  for  such  repairs  and
  improvements.
    3. On or after July first, nineteen hundred ninety for a harness track
  other  than  a  harness  track  authorized  to operate in Westchester or
  Nassau  county  or  a  harness  track  owned  by  a  non-profit   county
  agricultural  society  and  leased  by a harness racing association such
  amounts as may be withheld for the purposes of  this  section  shall  be
  deposited  in  a  trust fund, kept and maintained by such corporation or
  association and administered by a trustee approved  by  the  racing  and
  wagering  board  for  the  purpose of lending such sums and any interest
  thereon on  an  unsecured  basis  to  such  corporation  or  association
  exclusively  for  capital  improvements as defined in subdivision one of
  this  section.  All  such  amounts  borrowed  by  such  corporation   or
  association  from  such  trust  shall  be  forgiven and deemed satisfied
  according to a schedule of depreciation deductions for federal  and  New
  York state income tax purposes for such related capital improvements. It
  is further provided that at such time as such corporation or association
  shall  surrender  its  pari-mutuel  license  or  fail  to  apply  for  a
  pari-mutuel license for the succeeding year by December thirty-first  of
  the  preceding  year  that the racing and wagering board may declare the
  trust fund at an end and all sums therein deposited plus all sums due or
  owing from such corporation  or  association  to  such  trust  shall  be
  disposed  of in accordance with provisions of law to be enacted for such
  purpose; except that the racing and wagering  board  shall  direct  that
  such  sums  therein  deposited  and  all  sums  due  and owing from such
  corporation or association be transferred to the credit of  a  successor
  in  interest  to  such  corporation or association upon the licensing of
  such successor in interest by the board. Such trust shall be established
  and administered pursuant to the rules and regulations of the racing and
  wagering board.