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This entry was published on 2020-10-16
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SECTION 902
Equine drug testing and expenses
Racing, Pari-Mutuel Wagering and Breeding Law (PML) CHAPTER 47-A, ARTICLE 9
§ 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.