New York Laws
Article 2 - Thoroughbred Racing and Breeding
237 - Capital Improvements.

(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 and representatives of the jockeys
organization representing licensed jockeys and apprentice jockeys
regularly riding or exercising at such 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
corporation for commission approval includes adequate provision for
expenditures relating to the continued health, safety and well-being of
patrons, jockeys, 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, jockeys, 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 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 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
exclusively for capital improvements as defined in subdivision one of
this section. All such amounts borrowed by such corporation 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 shall surrender its pari-mutuel
license or franchise 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 to such trust
shall be disposed of in accordance with provisions of law to be enacted
for such purpose. Such trust shall be established and administered
pursuant to the rules and regulations of the commission.

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