N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 902: Equine drug testing and expenses

§ 902. Equine drug testing and expenses. 1. In order to assure the

public's confidence and continue the high degree of integrity in racing

at the pari-mutuel betting tracks, equine drug testing at race meetings

shall be conducted by a state college or at a land grant university

within this state. The commission shall promulgate any rules and

regulations necessary to implement the provisions of this section,

including administrative penalties of loss of purse money, fines, or

denial, suspension or revocation of a license for racing drugged horses.

2. Notwithstanding any inconsistent provision of the law, all costs

and expenses of the gaming commission for equine drug testing and

research shall be paid from an appropriation from the state treasury, on

the certification of the executive director of the commission, upon the

audit and warrant of the comptroller and pursuant to a plan developed by

the commission as approved by the director of the budget; provided,

however, the commission may direct the assessment imposed pursuant to

subdivision three of this section to be paid directly to the laboratory

authorized to conduct equine drug testing pursuant to subdivision one of

this section, provided however, upon direction of the commission, any

amounts directly paid to such laboratory shall constitute an encumbrance

of appropriation.

3. (a) The commission may impose an assessment on each race track

licensed or franchised pursuant to this chapter, and an additional per

start fee, for any additional costs and expenses of equine drug testing

and research conducted at a laboratory authorized pursuant to

subdivision one of this section, after all other funds for such purpose

have been expended.

(b) (i) The commission shall establish an assessable amount by May

first of each year based on the projected deficit of revenues deposited

into the racing regulation account established by section ninety-nine-i

of the state finance law, including funds deposited pursuant to sections

one hundred fifteen, two hundred thirty-six, two hundred thirty-eight,

three hundred seven, three hundred eight, three hundred eighteen, five

hundred twenty-seven, one thousand seven, one thousand eight, one

thousand nine, one thousand fourteen, one thousand fifteen, one thousand

sixteen, and one thousand eighteen of this chapter in relation to the

conduct of racing, the amount of funds paid for equipment pursuant to

subdivision two of section two hundred twenty-eight of this chapter, the

amount of funds received by the commission from the purse enhancement

account for equine health and safety pursuant to paragraph two of

subdivision b of section sixteen hundred twelve of the tax law in

relation to video lottery terminal facilities at race tracks licensed

pursuant to articles two and three of this chapter, and by the amount of

funds generated by any other existing fees, taxes and assessments paid

by race tracks or owners licensed pursuant to articles two and three of

this chapter for the purpose of equine drug testing, compared to

expenses in the racing regulation account. The commission shall impose

the assessable amount as an assessment upon each race track, and as an

additional per start fee on each owner. In no event shall the total

assessable amount exceed the total expense projected by the commission

for equine drug testing and research conducted at a laboratory

authorized pursuant to subdivision one of this section during that year.

(ii) The total value of the assessment imposed upon all race tracks

shall be fifty percent of the assessable amount calculated by

subparagraph (i) of this paragraph, and shall be assessed in a manner

that is proportional to the number of starts at each race track during

the previous year. In no event shall any race track impose the cost of

such assessment, in part or in whole, on any owner or trainer.

(iii) The total value of the additional per start fee imposed on

owners licensed pursuant to this chapter as an additional per start fee

shall be fifty percent of the assessable amount calculated by

subparagraph (i) of this paragraph divided by the total number of starts

in the previous year, and shall be assessed and paid in the same manner,

and in addition to, the fee for the start of a horse in New York state

pari-mutuel races provided by section one hundred fifteen-a of this

chapter.

4. Payment of the assessment imposed by this section shall be made to

the commission, or to the laboratory authorized to conduct equine drug

testing if directed by the commission, by each entity required to make

such payments. Payments of such assessment shall be made on the last

business day of each month and shall cover one-twelfth of the annual

assessment, provided however that all such payments required to be made

on the last day of April shall be due with the May payment. A penalty of

five percent, and interest at the rate of one percent per month from the

date the assessment, is due to the date of the payment of the

assessment, and shall be payable in case any assessment imposed by this

chapter is not paid when due. If the commission determines that any

payment received under this section was paid in error, the commission

may cause the same to be refunded without interest out of any monies

collected thereunder, provided an application therefor is filed with the

commission within one year from the time the erroneous payment is made.

5. Any deficit in the racing regulation account on March thirty-first

of each year, excluding any deficit attributed to the negative fund

balance as of March thirty-first, two thousand seventeen, shall be added

to the assessable amount for the following year. Fifty percent of any

surplus in such account as of March thirty-first of each year, not to

exceed the amount of the assessment imposed on race tracks in that year,

shall be used to reduce the assessment imposed on each race track in the

following year in proportion to the amount paid by each race track in

the year of the surplus. Fifty percent of any surplus in such account as

of March thirty-first of each year, not to exceed the total amount of

the additional start fees in that year, shall be used to reduce the

additional per start fee in the following year. Such reduction shall be

calculated in the same manner as the additional per start fee.

6. Not later than May first, each year, the commission shall submit to

the director of the budget, the temporary president of the senate and

the speaker of the assembly a report on the revenue generated by the

assessment, the total cost of equine drug testing, and any projected

deficit or surplus in the racing regulation account. The commission

shall also publish such report on the commission's website as soon as

practicable.

7. A franchised racing corporation may, in its discretion and at its

expense, fund for the exclusive use or utilization of the commission,

the construction and equipping of an equine drug testing and research

laboratory pursuant to subdivision one of this section. Such corporation

shall consult with the commission and relevant industry stakeholders

regarding the proper scope and equipping of a laboratory. The siting and

use of such laboratory shall be pursuant to a long-term lease between

the corporation and the commission. The commission shall operate or

contract for the operation of such laboratory. The franchised

corporation shall prepare an initial report for the year two thousand

twenty-one, provided, however, the franchised corporation has elected to

fund the construction and equipping of such laboratory. Such report

shall be submitted to the governor, the speaker of the assembly, and the

temporary president of the senate, no later than the first day of April

two thousand twenty-one. The gaming commission shall also make the

report public on their website. Such initial report shall include, but

not be limited to, information related to the siting and initial and

ongoing financing of the laboratory.