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 B - Harness Racing › Part 4101 - Licenses › Race Track Licenses › Section 4101.6 - 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 319 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 harness
						race meetings, and shall include improvements to land but not land
						itself.
(b) A statutorily
						designated harness track may elect upon 30 days' written notice to the
						commission (and a copy to the 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
						harness track (or, in the case of Buffalo Raceway, the county agricultural
						society that is deemed to be a harness track for purposes of this section)
						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 a 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 such law (section 527[5-a]), 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 therefrom, 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 such track's notice of election to the commission), and annually
						thereafter, with such track's 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 and 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 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 the commission's 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 such track's compliance
						with this section.