N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 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. Notwithstanding any other provision of law or regulation to the

contrary, from April first, two thousand twenty-five to March

thirty-first, two thousand twenty-six, 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 cost 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.

f. Notwithstanding any other provision of law or regulation to the

contrary, from April first, two thousand twenty-six to March

thirty-first, two thousand twenty-seven, 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 cost 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.

g. Prior to a corporation being able to utilize the funds authorized

by paragraph c, d, e or f 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.