§ 509-A — Capital acquisition fund

New York § 509-A

• Jurisdiction: New York
• Law PML: Racing, Pari-Mutuel Wagering and Breeding Law
• Art. 5: Regional Off-track Betting Corporations

Text

§ 509-a. Capital acquisition fund. 1. The corporation may create and\nestablish a capital acquisition fund for the purpose of financing the\nacquisition, construction or equipping of offices, facilities or\npremises of the corporation. Such capital acquisition fund shall consist\nof (i) the amounts specified pursuant to subdivision three-a of section\nfive hundred thirty-two of this chapter; and (ii) contributions from the\ncorporation's pari-mutuel wagering pools, subject to the following\nlimitations:\n a. no contribution shall exceed the amount of one percent of the total\npari-mutuel wagering pools for the quarter in which the contribution is\nmade;\n b. no contribution shall reduce the amount of quarterly net revenues,\nexclusive of surcharge revenues, to an amount less than fifty percent of\nsuch net revenues; and\n c. the balance of the fund shall not exceed the lesser of one percent\nof total pari-mutuel wagering pools for the previous twelve months or\nthe undepreciated value of the corporation's offices, facilities and\npremises.\n 2. a. Notwithstanding any other provision of law or regulation to the\ncontrary, from April nineteenth, two thousand twenty-one to March\nthirty-first, two thousand twenty-two, twenty-three percent of the\nfunds, not to exceed two and one-half million dollars, in the Catskill\noff-track betting corporation's capital acquisition fund and\ntwenty-three percent of the funds, not to exceed four hundred forty\nthousand dollars, in the Capital off-track betting corporation's capital\nacquisition fund established pursuant to this section shall also be\navailable to such off-track betting corporation for the purposes of\nstatutory obligations, payroll, and expenditures necessary to accept\nauthorized wagers.\n b. Notwithstanding any other provision of law or regulation to the\ncontrary, from April first, two thousand twenty-two to March\nthirty-first, two thousand twenty-three, twenty-three percent of the\nfunds, not to exceed two and one-half million dollars, in the Catskill\noff-track betting corporation's capital acquisition fund established\npursuant to this section, and twenty-three percent of the funds, not to\nexceed four hundred forty thousand dollars, in the Capital off-track\nbetting corporation's capital acquisition fund established pursuant to\nthis section, shall be available to such off-track betting corporations\nfor the purposes of statutory obligations, payroll, and expenditures\nnecessary to accept authorized wagers.\n c. Notwithstanding any other provision of law or regulation to the\ncontrary, from April first, two thousand twenty-three to March\nthirty-first, two thousand twenty-four, twenty-three percent of the\nfunds, not to exceed two and one-half million dollars, in the Catskill\noff-track betting corporation's capital acquisition fund established\npursuant to this section, and one million dollars in the Capital\noff-track betting corporation's capital acquisition fund established\npursuant to this section, shall be available to such off-track betting\ncorporation for the purposes of expenditures necessary to accept\nauthorized wagers; past due statutory obligations to New York licensed\nor franchised racing corporations or associations; past due contractual\nobligations due to other racing associations or organizations for the\ncosts of acquiring a simulcast signal; past due statutory payment\nobligations due to the New York state thoroughbred breeding and\ndevelopment fund corporation, agriculture and New York state horse\nbreeding development fund, and the Harry M. Zweig memorial fund for\nequine research; and past due obligations due the state.\n d. Notwithstanding any other provision of law or regulation to the\ncontrary, from April first, two thousand twenty-four to March\nthirty-first, two thousand twenty-five, twenty-three percent of the\nfunds, not to exceed two and one-half million dollars, in the Catskill\noff-track betting corporation's capital acquisition fund established\npursuant to this section, and one million dollars in the Capital\noff-track betting corporation's capital acquisition fund established\npursuant to this section, shall be available to such off-track betting\ncorporation for the purposes of expenditures necessary to accept\nauthorized wagers; past due statutory obligations to New York licensed\nor franchised racing corporations or associations; past due contractual\nobligations due to other racing associations or organizations for the\ncosts of acquiring a simulcast signal; past due statutory payment\nobligations due to the New York state thoroughbred breeding and\ndevelopment fund corporation, agriculture and New York state horse\nbreeding development fund, and the Harry M. Zweig memorial fund for\nequine research; and past due obligations due the state.\n e. Notwithstanding any other provision of law or regulation to the\ncontrary, from April first, two thousand twenty-five to March\nthirty-first, two thousand twenty-six, one million dollars in the\nCapital off-track betting corporation's capital acquisition fund\nestablished pursuant to this section shall be available to such\noff-track betting corporation for the purposes of expenditures necessary\nto accept authorized wagers; past due statutory obligations to New York\nlicensed or franchised racing corporations or associations; past due\ncontractual obligations due to other racing associations or\norganizations for the cost of acquiring a simulcast signal; past due\nstatutory payment obligations due to the New York state thoroughbred\nbreeding and development fund corporation, agriculture and New York\nstate horse breeding development fund, and the Harry M. Zweig memorial\nfund for equine research; and past due obligations due the state.\n f. Prior to a corporation being able to utilize the funds authorized\nby paragraph c, d or e of this subdivision, the corporation must attest\nthat the surcharge monies from section five hundred thirty-two of this\nchapter are being held separate and apart from any amounts otherwise\nauthorized to be retained from pari-mutuel pools and all surcharge\nmonies have been and will continue to be paid to the localities as\nprescribed in law. Once this condition is satisfied, the corporation\nmust submit an expenditure plan to the gaming commission for review.\nSuch plan shall include the corporation's outstanding liabilities,\nprojected revenue for the upcoming year, a detailed explanation of how\nthe funds will be used, and any other information necessary to detail\nsuch plan as determined by the commission. Upon review, the commission\nshall make a determination as to whether the requirements of this\nparagraph have been satisfied and notify the corporation of expenditure\nplan approval. In the event the commission determines the requirements\nof this paragraph have not been satisfied, the commission shall notify\nthe corporation of all deficiencies necessary for approval. As a\ncondition of such expenditure plan approval, the corporation shall\nprovide a report to the commission no later than the last day of the\ncalendar year for which the funds are requested, which shall include an\naccounting of the use of such funds. At such time, the commission may\ncause an independent audit to be conducted of the corporation's books to\nensure that all moneys were spent as indicated in such approved plan.\nThe audit shall be paid for from money in the fund established by this\nsection. If the audit determines that a corporation used the money\nauthorized under this section for a purpose other than one listed in\ntheir expenditure plan, then the corporation shall reimburse the capital\nacquisition fund for the unauthorized amount.\n 3. The Catskill off-track betting corporation and the Capital\noff-track betting corporation shall make a report to the governor,\nspeaker of the assembly, temporary president of the senate and the\ncommission detailing the actual use of the funds made available in the\ncapital acquisition fund. Such report shall include, but not be limited\nto, any impact on employment levels since utilizing the funds, the\nstatus of any statutory obligations, an accounting of the use of such\nfunds, and any other information as deemed necessary by the commission.\nSuch report shall be due no later than the last day of the fiscal year\nin which the monies were spent.\n