NY Rac, Pari-Mut Wag & Breeding L § 237 (2021)
2021 New York Laws PML - Racing, Pari-Mutuel Wagering and Breeding Law Article 2 - Thoroughbred Racing and Breeding 237 - Capital Improvements.

§  237.  Capital  improvements.  1.  For the purposes of this section, "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 that is used or is  to be used by such corporation in connection with the conduct of horse race meetings, and shall include improvements to land but not land itself.   2. (a) Any non-franchised corporation authorized under this chapter to conduct  pari-mutuel betting at a race meeting on races run thereat, may elect upon thirty days written notice to the commission to withhold from the pari-mutuel pool in addition to any other amounts required  by  this section,  one  percent  of  the  total  deposits in pools resulting from regular and multiple on-track bets; provided,  however,  that  any  such corporation  withholding pursuant to this subdivision shall use at least fifty percent of such one percent exclusively for  capital  improvements as  defined  in subdivision one of this section subject to the rules and regulations of the commission. An amount, not to exceed fifty percent of such one percent, may be used for  advertising  and  promotion  expenses subject to the rules and regulations of the commission. 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  that  are  intended to increase the attendance at, or visibility of, any such  corporation  and shall  include  premium giveaways, prizes, free admission, free parking, free programs, additional monies for purses or  other  activities  of  a promotional nature that stimulate on-track attendance. In no event shall this section be construed to permit the payment of salaries to employees of  any  such  corporation 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 commission, shall not  be  expended  for any  such  advertising  and  promotion  as defined herein. Such election shall terminate upon thirty days written notice to the commission.  (b) At least once annually,  prior  to  approving  any  plan  for  the expenditure  of such capital improvement funds pursuant to this section, the  commission  shall,   together   with   the   track   operator   and representatives  of  the horsemen's organization representing owners and trainers  using  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 corporation  for  commission  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  commission  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 commission 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 and administered  by a  trustee  approved  by  the commission for the purpose of lending such sums and any interest thereon on an unsecured basis to such  corporation exclusively  for  capital  improvements as defined in subdivision one of this section. All such amounts borrowed by such  corporation  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 shall surrender its pari-mutuel license or franchise or fail to apply for a pari-mutuel license for  the succeeding  year by December thirty-first of the preceding year that the commission may declare the trust fund at an end  and  all  sums  therein deposited plus all sums due or owing from such corporation 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 commission.