N.Y. Comp. Codes R. & Regs. tit. 9 § 4003.51

Current through Register Vol. 46, No. 25, June 18, 2024

Section 4003.51 - Purse payments to horsemen's organizations

(a) As a condition of racing:

(1) the franchised thoroughbred racing corporation shall withhold two percent of all purses and pay such sum to the New York Thoroughbred Horsemen's Association, Inc. or its successor pursuant to Racing, Pari-Mutuel Wagering and Breeding Law, section 228(2) on condition that the horsemen's organization shall expend as much as is necessary, not to exceed one-half of one percent of all purses, to acquire and maintain equipment required to establish a laboratory program pursuant to section 902(1) to test for the presence of steroids in horses, and shall also annually include in such corporation's expenditures for benevolence programs some funds, in an amount determined by such corporation's board of directors, to support an organization providing services necessary to backstretch employees;

(2) the other thoroughbred racing corporation shall withhold one percent of all purses and pay such sum to the Finger Lakes Horsemen's Benevolent and Protective Association, Inc. or its successor pursuant to Racing, Pari-Mutuel Wagering and Breeding Law, section 228(2);

(3) the funds authorized to be paid by the commission are to be used by such organization exclusively for the benefit of those horsemen racing in New York State through the administrative purposes of such qualified organization, benevolent activities on behalf of backstretch employees, and for the promotion of equine research.

(b) Any other horsemen's organization may apply to the commission to be approved as the qualified organization to receive payment of the one percent of all purses. To qualify, such organization shall:

(1) be a legally constituted association or corporation;

(2) file in writing, with the commission and track, a challenge to the 51 percent representation of the qualified recipient organization. Such challenge must be made at least 10 days prior to the conclusion of a race meeting;

(3) submit to the commission proof both that:

(i) it represents more than 51 percent of all the owners and trainers utilizing the same facilities; and

(ii) the horsemen's organization previously approved as qualified by the commission does not represent 51 percent of all the owners and trainers utilizing the same facilities.

Documentation submitted by the applicant must conclusively prove both subparagraphs (i) and (ii) of this paragraph before the applicant may become the qualified recipient organization.

(c) The commission, upon receipt of such an application, may direct the payments to the previously qualified horsemen's organization to continue uninterrupted, or it may direct the payments to be withheld and placed in interest-bearing accounts for a period not to exceed 90 days, during which time the commission shall review and approve or disapprove the application. Funds held in such manner shall be paid to the organization approved by the commission. Only one application may be filed with the commission by the same horsemen's organization within any calendar year.

(d) Within 30 days after the end of the meeting, or receipt of the monies paid pursuant to this section, whichever is later, the organization receiving such funds shall file a sworn statement with the commission and the track listing the amount of monies received and a breakdown of the uses to which such funds were employed. Copies of such statement shall be posted in the track's entry rooms.

(e) No later than 105 days after the close of the organization's fiscal year, any organization that has received monies pursuant to this rule during that prior year shall file with the commission and the track a statement verified by a certified public accountant that shows the financial condition of such organization and contains an itemized statement of the receipts and disbursements of such organization for such prior year.

(f) The commission may cause an audit of the books and records of any such organization to be conducted.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 4003.51