2023 New York Laws › PML - Racing, Pari-Mutuel Wagering and Breeding Law › Article 9 - Miscellaneous › 902 - Equine Drug Testing and Expenses.

§  902.  Equine  drug  testing and expenses. 1. In order to assure the
public's confidence and continue the high degree of integrity in  racing
at  the pari-mutuel betting tracks, equine drug testing at race meetings
shall be conducted by a state college or  at  a  land  grant  university
within  this  state.  The  commission  shall  promulgate  any  rules and
regulations necessary to  implement  the  provisions  of  this  section,
including  administrative  penalties  of  loss of purse money, fines, or
denial, suspension or revocation of a license for racing drugged horses.
2. Notwithstanding any inconsistent provision of the  law,  all  costs
and  expenses  of  the  gaming  commission  for  equine drug testing and
research shall be paid from an appropriation from the state treasury, on
the certification of the executive director of the commission, upon  the
audit and warrant of the comptroller and pursuant to a plan developed by
the  commission  as  approved  by  the director of the budget; provided,
however, the commission may direct the assessment  imposed  pursuant  to
subdivision  three of this section to be paid directly to the laboratory
authorized to conduct equine drug testing pursuant to subdivision one of
this section, provided however, upon direction of  the  commission,  any
amounts directly paid to such laboratory shall constitute an encumbrance
of appropriation.
3.  (a)  The  commission  may  impose an assessment on each race track
licensed or franchised pursuant to this chapter, and an  additional  per
start  fee, for any additional costs and expenses of equine drug testing
and  research  conducted  at  a  laboratory   authorized   pursuant   to
subdivision  one of this section, after all other funds for such purpose
have been expended.
(b) (i) The commission shall establish an  assessable  amount  by  May
first  of each year based on the projected deficit of revenues deposited
into the racing regulation account established by section  ninety-nine-i
of the state finance law, including funds deposited pursuant to sections
one  hundred  fifteen, two hundred thirty-six, two hundred thirty-eight,
three hundred seven, three hundred eight, three hundred  eighteen,  five
hundred  twenty-seven,  one  thousand  seven,  one  thousand  eight, one
thousand nine, one thousand fourteen, one thousand fifteen, one thousand
sixteen, and one thousand eighteen of this chapter in  relation  to  the
conduct  of  racing,  the amount of funds paid for equipment pursuant to
subdivision two of section two hundred twenty-eight of this chapter, the
amount of funds received by the commission from  the  purse  enhancement
account  for  equine  health  and  safety  pursuant  to paragraph two of
subdivision b of section sixteen  hundred  twelve  of  the  tax  law  in
relation  to  video  lottery terminal facilities at race tracks licensed
pursuant to articles two and three of this chapter, and by the amount of
funds generated by any other existing fees, taxes and  assessments  paid
by  race tracks or owners licensed pursuant to articles two and three of
this chapter for  the  purpose  of  equine  drug  testing,  compared  to
expenses  in  the racing regulation account. The commission shall impose
the assessable amount as an assessment upon each race track, and  as  an
additional  per  start  fee  on  each owner. In no event shall the total
assessable amount exceed the total expense projected by  the  commission
for   equine  drug  testing  and  research  conducted  at  a  laboratory
authorized pursuant to subdivision one of this section during that year.
(ii) The total value of the assessment imposed upon  all  race  tracks
shall   be   fifty  percent  of  the  assessable  amount  calculated  by
subparagraph (i) of this paragraph, and shall be assessed  in  a  manner
that  is  proportional to the number of starts at each race track during
the previous year. In no event shall any race track impose the  cost  of
such assessment, in part or in whole, on any owner or trainer.
(iii)  The  total  value  of  the  additional per start fee imposed on
owners licensed pursuant to this chapter as an additional per start  fee
shall   be   fifty  percent  of  the  assessable  amount  calculated  by
subparagraph (i) of this paragraph divided by the total number of starts
in the previous year, and shall be assessed and paid in the same manner,
and  in  addition to, the fee for the start of a horse in New York state
pari-mutuel races provided by section  one  hundred  fifteen-a  of  this
chapter.
4.  Payment of the assessment imposed by this section shall be made to
the commission, or to the laboratory authorized to conduct  equine  drug
testing  if  directed by the commission, by each entity required to make
such payments. Payments of such assessment shall be  made  on  the  last
business  day  of  each  month and shall cover one-twelfth of the annual
assessment, provided however that all such payments required to be  made
on the last day of April shall be due with the May payment. A penalty of
five percent, and interest at the rate of one percent per month from the
date  the  assessment,  is  due  to  the  date  of  the  payment  of the
assessment, and shall be payable in case any assessment imposed by  this
chapter  is  not  paid  when  due. If the commission determines that any
payment received under this section was paid in  error,  the  commission
may  cause  the  same  to be refunded without interest out of any monies
collected thereunder, provided an application therefor is filed with the
commission within one year from the time the erroneous payment is made.
5. Any deficit in the racing regulation account on March  thirty-first
of  each  year,  excluding  any  deficit attributed to the negative fund
balance as of March thirty-first, two thousand seventeen, shall be added
to the assessable amount for the following year. Fifty  percent  of  any
surplus  in  such  account as of March thirty-first of each year, not to
exceed the amount of the assessment imposed on race tracks in that year,
shall be used to reduce the assessment imposed on each race track in the
following year in proportion to the amount paid by each  race  track  in
the year of the surplus. Fifty percent of any surplus in such account as
of  March  thirty-first  of each year, not to exceed the total amount of
the additional start fees in that year, shall  be  used  to  reduce  the
additional  per start fee in the following year. Such reduction shall be
calculated in the same manner as the additional per start fee.
6. Not later than May first, each year, the commission shall submit to
the director of the budget, the temporary president of  the  senate  and
the  speaker  of  the  assembly a report on the revenue generated by the
assessment, the total cost of equine drug  testing,  and  any  projected
deficit  or  surplus  in  the  racing regulation account. The commission
shall also publish such report on the commission's website  as  soon  as
practicable.
7.  A  franchised racing corporation may, in its discretion and at its
expense, fund for the exclusive use or utilization  of  the  commission,
the  construction  and  equipping of an equine drug testing and research
laboratory pursuant to subdivision one of this section. Such corporation
shall consult with the commission  and  relevant  industry  stakeholders
regarding the proper scope and equipping of a laboratory. The siting and
use  of  such  laboratory shall be pursuant to a long-term lease between
the corporation and the commission.  The  commission  shall  operate  or
contract   for   the   operation  of  such  laboratory.  The  franchised
corporation shall prepare an initial report for the  year  two  thousand
twenty-one, provided, however, the franchised corporation has elected to
fund  the  construction  and  equipping  of such laboratory. Such report
shall be submitted to the governor, the speaker of the assembly, and the
temporary president of the senate, no later than the first day of  April
two  thousand  twenty-one.  The  gaming  commission  shall also make the

report public on their website. Such initial report shall  include,  but
not  be  limited  to,  information related to the siting and initial and
ongoing financing of the laboratory.