NY Rac, Pari-Mut Wag & Breeding L § 319 (2021)
2021 New York Laws PML - Racing, Pari-Mutuel Wagering and Breeding Law Article 3 - Harness Racing and Breeding 319 - Capital Improvements.

§  319.  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 or association that 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 commission to withhold, in addition to  any  other amounts  required  by this section, one percent 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  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.  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 percent shall be paid by the  association  to  the  society  as additional rent. Such society shall use such one percent exclusively for capital  improvements  as  defined  in  subdivision  one of this section subject to the rules and regulations  of  the  commission.  The  capital improvements  shall be determined by a committee of the society composed of the executive director of the society, the  chair  of  the  board  of directors  of  the  racing  association, or his or her 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  that  are  intended to increase the attendance at, or visibility of,  a  harness  track  and  shall  include premium  giveaways, 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  commission  shall,   together   with   the   track   operator   and representatives  of  the horsemen's organization representing owners and trainers using 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  commission  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 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, 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 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 commission 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 commission  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 commission  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 commission. Such trust  shall  be  established and administered pursuant to the rules and regulations of the commission.