2006 New York Code - Capital Improvements.

 
    §  228-a.  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)  Any  corporation or association authorized under sections two
  hundred twenty-two through seven hundred five of this chapter to conduct
  pari-mutuel betting at a race meeting on races run  thereat,  may  elect
  upon  thirty  days  written  notice  to the racing and wagering board to
  withhold from the pari-mutuel pool in  addition  to  any  other  amounts
  required  by this section, one per centum of the total deposits in pools
  resulting from regular and multiple on-track  bets;  provided,  however,
  that  any  such  corporation or association 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.  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, any such corporation or association 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  any  such  corporation  or association who are engaged in
  advertising or promotional activities, provided,  however,  that  monies
  credited  to  such  capital improvement account on or before July first,
  nineteen hundred ninety-six, as certified by the  board,  shall  not  be
  expended for any such advertising and promotion as defined herein.  Such
  election shall terminate upon thirty days written notice to the board.
    (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  and   representatives   of   the   jockeys   organization
  representing licensed jockeys and apprentice jockeys regularly riding or
  exercising  at such 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, jockeys, 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,  jockeys,
  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 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.  Such trust  shall  be
  established  and  administered  pursuant to the rules and regulations of
  the racing and wagering board.