N.Y. Comp. Codes R. & Regs. tit. 9 § 4101.7

Current through Register Vol. 46, No. 50, December 11, 2024

Section 4101.7 - Certification of annual expenditures for enhancements

(a) Pursuant to section 318 of the Racing, Pari-Mutuel Wagering and Breeding Law, the commission shall certify to the Commissioner of Taxation and Finance no later than 80 days after the close of each calendar year the name of each harness racing association or corporation, that has failed during the immediately preceding calendar year to expend an amount equal to at least one-half of one percent of such association or corporation's on-track bets for enhancements consisting of capital improvements as defined in section 319 of such law (and section 4101.6 of this Part), repairs to such association or corporation's physical plant, structures and equipment used in its racing or wagering operations and costs connected with no more than five special events as defined in section 318 of such law and approved by the commission.

(b) In this connection, each harness racing association or corporation shall by January 31st of the current year file with the commission schedules of expenditures made during the immediately preceding calendar year segregated by expenditures for capital improvements, eligible repairs and special events. Such schedules shall be in summary form identifying each asset or special event, as applicable, by appropriate name, the total expended for each asset or special event, and the date of completion for use for such asset or, if special event, the date it was held. Copies of bills, invoices and other supporting documentation providing details of such expenditures shall be retained by the track for audit by the commission.

(c) To qualify as eligible repairs, expenditures must be for work or materials necessary to put inoperative assets back into good operating condition; in addition, the replacement of parts, the fixing of plant, overhaul of equipment, and similar work that ordinarily would not qualify as capital expenditures because the life of the asset is not thereby extended shall nevertheless qualify as eligible repairs. Maintenance expenditures incurred for the purpose of keeping assets in operating condition are excluded.

(d) In determining whether the necessary amounts have been expended, the commission shall consider the immediately preceding calendar year or the average of the two immediately preceding calendar years, whichever is higher, for all tracks located outside Westchester or Nassau Counties; for a track located in Westchester or Nassau County, only the average of the two immediately preceding years shall be considered. It shall be presumed that only expenditures submitted in the form required in subdivision (b) of this section are expenditures qualified for consideration by the commission.

(e) If the commission determines that such racing association or corporation has failed to make the total of expenditures as established by statute it shall notify the affected association or corporation thereof by February 20th of the current year and schedule a date within 15 days to hear the association or corporation in regard to the commission's determination.

(f) Copies of any certification made in accordance with subdivision (a) of this section shall be served upon the affected association or corporation by the date prescribed in such subdivision (a).

N.Y. Comp. Codes R. & Regs. Tit. 9 § 4101.7