2023 New York Laws › PML - Racing, Pari-Mutuel Wagering and Breeding Law › Article 5 - Regional Off-Track Betting Corporations › 509-A - Capital Acquisition Fund.

§  509-a.  Capital acquisition fund. 1. The corporation may create and
  establish a capital acquisition fund for the purpose  of  financing  the
  acquisition,   construction  or  equipping  of  offices,  facilities  or
  premises of the corporation. Such capital acquisition fund shall consist
  of (i) the amounts specified pursuant to subdivision three-a of  section
  five hundred thirty-two of this chapter; and (ii) contributions from the
  corporation's  pari-mutuel  wagering  pools,  subject  to  the following
  limitations:
a. no contribution shall exceed the amount of one percent of the total
  pari-mutuel wagering pools for the quarter in which the contribution  is
  made;
b.  no contribution shall reduce the amount of quarterly net revenues,
  exclusive of surcharge revenues, to an amount less than fifty percent of
  such net revenues; and
c. the balance of the fund shall not exceed the lesser of one  percent
  of  total  pari-mutuel  wagering pools for the previous twelve months or
  the undepreciated value of the  corporation's  offices,  facilities  and
  premises.
2.  a. Notwithstanding any other provision of law or regulation to the
  contrary, from  April  nineteenth,  two  thousand  twenty-one  to  March
  thirty-first,  two  thousand  twenty-two,  twenty-three  percent  of the
  funds, not to exceed two and one-half million dollars, in  the  Catskill
  off-track   betting   corporation's   capital   acquisition   fund   and
  twenty-three percent of the funds, not  to  exceed  four  hundred  forty
  thousand dollars, in the Capital off-track betting corporation's capital
  acquisition  fund  established  pursuant  to  this section shall also be
  available to such off-track betting  corporation  for  the  purposes  of
  statutory  obligations,  payroll,  and  expenditures necessary to accept
  authorized wagers.
b. Notwithstanding any other provision of law  or  regulation  to  the
  contrary,   from   April   first,   two  thousand  twenty-two  to  March
  thirty-first, two thousand twenty-three,  twenty-three  percent  of  the
  funds,  not  to exceed two and one-half million dollars, in the Catskill
  off-track betting corporation's  capital  acquisition  fund  established
  pursuant  to this section, and twenty-three percent of the funds, not to
  exceed four hundred forty thousand dollars,  in  the  Capital  off-track
  betting  corporation's  capital acquisition fund established pursuant to
  this section, shall be available to such off-track betting  corporations
  for  the  purposes  of  statutory obligations, payroll, and expenditures
  necessary to accept authorized wagers.
c. Notwithstanding any other provision of law  or  regulation  to  the
  contrary,   from   April  first,  two  thousand  twenty-three  to  March
  thirty-first, two thousand  twenty-four,  twenty-three  percent  of  the
  funds,  not  to exceed two and one-half million dollars, in the Catskill
  off-track betting corporation's  capital  acquisition  fund  established
  pursuant  to  this  section,  and  one  million  dollars  in the Capital
  off-track betting corporation's  capital  acquisition  fund  established
  pursuant  to  this section, shall be available to such off-track betting
  corporation  for  the  purposes  of  expenditures  necessary  to  accept
  authorized  wagers;  past due statutory obligations to New York licensed
  or franchised racing corporations or associations; past due  contractual
  obligations  due  to  other racing associations or organizations for the
  costs of acquiring  a  simulcast  signal;  past  due  statutory  payment
  obligations  due  to  the  New  York  state  thoroughbred  breeding  and
  development fund corporation,  agriculture  and  New  York  state  horse
  breeding  development  fund,  and  the  Harry M. Zweig memorial fund for
  equine research; and past due obligations due the state.
d. Notwithstanding any other provision of law  or  regulation  to  the
  contrary,   from   April   first,  two  thousand  twenty-four  to  March
  thirty-first, two thousand  twenty-five,  twenty-three  percent  of  the
  funds,  not  to exceed two and one-half million dollars, in the Catskill
  off-track  betting  corporation's  capital  acquisition fund established
  pursuant to this  section,  and  one  million  dollars  in  the  Capital
  off-track  betting  corporation's  capital  acquisition fund established
  pursuant to this section, shall be available to such  off-track  betting
  corporation  for  the  purposes  of  expenditures  necessary  to  accept
  authorized wagers; past due statutory obligations to New  York  licensed
  or  franchised racing corporations or associations; past due contractual
  obligations due to other racing associations or  organizations  for  the
  costs  of  acquiring  a  simulcast  signal;  past  due statutory payment
  obligations  due  to  the  New  York  state  thoroughbred  breeding  and
  development  fund  corporation,  agriculture  and  New  York state horse
  breeding development fund, and the Harry  M.  Zweig  memorial  fund  for
  equine research; and past due obligations due the state.
e.  Prior  to a corporation being able to utilize the funds authorized
  by paragraph c or d of this subdivision,  the  corporation  must  attest
  that  the  surcharge monies from section five hundred thirty-two of this
  chapter are being held separate and apart  from  any  amounts  otherwise
  authorized  to  be  retained  from  pari-mutuel  pools and all surcharge
  monies have been and will continue to  be  paid  to  the  localities  as
  prescribed  in  law.  Once  this condition is satisfied, the corporation
  must submit an expenditure plan to the  gaming  commission  for  review.
  Such  plan  shall  include  the  corporation's  outstanding liabilities,
  projected revenue for the upcoming year, a detailed explanation  of  how
  the  funds  will  be used, and any other information necessary to detail
  such plan as determined by the commission. Upon review,  the  commission
  shall  make  a  determination  as  to  whether  the requirements of this
  paragraph have been satisfied and notify the corporation of  expenditure
  plan  approval.  In the event the commission determines the requirements
  of this paragraph have not been satisfied, the commission  shall  notify
  the  corporation  of  all  deficiencies  necessary  for  approval.  As a
  condition of such  expenditure  plan  approval,  the  corporation  shall
  provide  a  report  to  the commission no later than the last day of the
  calendar year for which the funds are requested, which shall include  an
  accounting  of  the  use of such funds. At such time, the commission may
  cause an independent audit to be conducted of the corporation's books to
  ensure that all moneys were spent as indicated in  such  approved  plan.
  The  audit  shall be paid for from money in the fund established by this
  section. If the audit determines  that  a  corporation  used  the  money
  authorized  under  this  section  for a purpose other than one listed in
  their expenditure plan, then the corporation shall reimburse the capital
  acquisition fund for the unauthorized amount.
3.  The  Catskill  off-track  betting  corporation  and  the   Capital
  off-track  betting  corporation  shall  make  a  report to the governor,
  speaker of the assembly, temporary  president  of  the  senate  and  the
  commission  detailing  the actual use of the funds made available in the
  capital acquisition fund. Such report shall include, but not be  limited
  to,  any  impact  on  employment  levels  since utilizing the funds, the
  status of any statutory obligations, an accounting of the  use  of  such
  funds,  and any other information as deemed necessary by the commission.
  Such report shall be due no later than the last day of the  fiscal  year
  in which the monies were spent.