New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle T - New York State Gaming Commission › Chapter I - Division of Horse Racing and Pari-Mutuel Wagering › Subchapter A - Thoroughbred Racing › Article 1 - Rules of Racing › Part 4003 - Racing Associations › Licenses › Section 4003.11 - Increased retention for capital improvements

Current through Register Vol. 46, No. 28, July 10, 2024
(a) For the purposes of this section, capital
						  improvement, as defined in section 237 of the Racing, Pari-Mutuel Wagering and
						  Breeding Law, is any addition to, replacement of or remodeling of the physical
						  plant, structures and equipment, owned or leased by a licensed track that is
						  used or is to be used by such track in connection with the conduct of horse
						  race meetings, and shall include improvements to land but not land
						  itself.
(b) A thoroughbred track,
						  other than a nonprofit thoroughbred track, may elect upon 30 days' written
						  notice to the commission (with a copy thereof to the State Tax 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 thoroughbred track withholding pursuant to
						  this subdivision shall use such one percent exclusively for capital
						  improvements, as defined in subdivision (a) of this section, subject to the
						  following provisions:
(1) All amounts
						  withheld by the track on and after such 30-day written notice to the
						  commission, as well as all monies paid over to the track by off-track betting
						  corporations from additional withholding mandated upon such corporations
						  pursuant to section 527 of such law, shall be deposited in a segregated
						  interest-bearing account designated "Retention for Capital Construction"
						  account. A track may withdraw monies from such account for the purposes of
						  investment in segregated certificates of deposit or government securities,
						  provided that the entire proceeds of such investments, including interest or
						  dividends, are redeposited in such account within two years of such
						  withdrawal.
(2) Within 30 days of
						  the enactment of this rule (or if a track shall hereafter make such election,
						  then with its notice of election to the commission), and annually thereafter,
						  with its license application, each such electing track shall furnish the
						  commission with a complete description of all capital improvements that it
						  plans to make, together with the estimated cost thereof, the estimated
						  inception and completion date, and how such capital improvement will be
						  acquired or accomplished. Such capital improvements as are to be paid for from
						  funds from the " Retention for Capital Construction" account shall be so
						  designated, together with estimated dates and amounts of withdrawals, and a
						  statement as to how such improvement will further the objectives of the law to
						  increase attendance or betting handle.
(3) A permit from the commission shall be
						  required for all capital improvements to be financed from such "Retention for
						  Capital Construction" account and, if such capital improvement shall involve
						  construction or alteration of plant and structures, plans and specifications
						  satisfactory to a consulting engineer or architect designated by the commission
						  shall be furnished as a prerequisite to such purpose.
(4) No monies may be withdrawn from such
						  account except for investments permitted pursuant to subdivision (c) of this
						  section, or in payment for capital improvements for which a permit has been
						  issued by the commission.
(5)
						  Within 30 days of the end of the calendar year, such track shall submit a
						  report to the commission, showing the balance of the account at the beginning
						  of the year, the total added and the total withdrawn during the year, and the
						  balance at the end of the year listing each bank account and investment. The
						  report shall also describe the progress of planned capital construction,
						  together with an itemized list of the withdrawals from the "Retention for
						  Capital Construction" account, the payees of such withdrawals, and copies of
						  all billings and vouchers supporting such withdrawals.
(6) The commission on its own initiative may
						  require a track to make such capital improvements as it may deem
						  necessary.
(7) The commission, at
						  any time, may cause a track to be audited concerning its compliance with this
						  section.