New York Laws
Article 3 - Harness Racing and Breeding
319 - 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, 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 association or
corporation for commission approval includes adequate provision for
expenditures relating to the continued health, safety and well-being of
patrons, 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, 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 for a harness track
other than a harness track authorized to operate in Westchester or
Nassau county or a harness track owned by a non-profit county

agricultural society and leased by a harness racing association 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 or
association 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 or association exclusively for
capital improvements as defined in subdivision one of this section. All
such amounts borrowed by such corporation or association 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 or association shall surrender its
pari-mutuel license 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 or
association to such trust shall be disposed of in accordance with
provisions of law to be enacted for such purpose; except that the
commission shall direct that such sums therein deposited and all sums
due and owing from such corporation or association be transferred to the
credit of a successor in interest to such corporation or association
upon the licensing of such successor in interest by the commission. Such
trust shall be established and administered pursuant to the rules and
regulations of the commission.