5-111.03. Capital improvements at dog tracks; approval by commission; reports; definitions
A. To encourage the improvement of racing facilities for the benefit of the public and dog owners, and to increase the revenue to this state from the increase in pari-mutuel wagering resulting from such improvements, the percentage paid by a permittee to the state pursuant to section 5-111, subsection B in connection with all racing meetings conducted by such permittee shall be reduced by one per cent of the total amount wagered in connection with all racing meetings conducted in counties having a population of five hundred thousand persons or more, as shown by the last United States census, and by two per cent of the total amount wagered in connection with all racing meetings conducted in all other counties for those permittees who qualify for such reduction as provided in this section, and such amount shall be retained by those permittees. Such decrease in percentage retained from the racing meets conducted by the permittee at tracks located in this state for which the permittee holds a permit to conduct dog racing thereon may be applied to a capital improvement at any of such tracks for which a capital improvement has been approved. If a permittee other than the permittee making the capital improvements, such as a lessee, is authorized to conduct racing at the facility being improved, the percentage paid by the permittee to the state as provided in section 5-111, subsection B shall be reduced as provided in this section and such amount shall be paid by such permittee to the permittee making the capital improvements. For the purpose of this section, " permittee" shall include any group of one or more corporations each of which is the holder of one or more permits to conduct dog racing in this state and all of which are owned, one by the other, or owned or controlled, directly or indirectly, by the same corporation.
B. In order to qualify for the reduction in percentage, a permittee must first apply to the commission on such form as the commission may require. The application shall contain, but is not limited to:
1. Complete details of the proposed capital improvement as prescribed by the commission.
2. The cost and expenses to be incurred in completing the capital improvement.
3. Economic justification for approval of the application by an estimate of the additional pari-mutuel revenues accruing to this state as the result of the proposed capital improvement.
4. A description of any public safety concerns to be resolved by the proposed capital improvement.
5. A management and construction plan for the indicated capital improvement, including:
(a) The approach and structure of construction management.
(b) Construction schedules and detailed cost estimates.
(c) Construction progress and cost revision reporting systems.
More than one capital improvement at a single dog track may be consolidated in one application.
C. Following receipt of the application, the commission shall either approve or disapprove the application within forty-five days thereafter and shall, within ten days of taking action on the application, transmit a copy of the application and notification of the action taken by the commission on the application to the president of the senate and the speaker of the house of representatives. If the application submitted by the permittee is approved by the commission, the permittee qualifies for the decrease in percentage prescribed by subsection A of this section. The commission shall not approve an application submitted pursuant to this subsection unless the commission determines that the capital improvement will promote the safety of racing dogs or increase the safety, convenience or comfort of the people and is in the best interest of dog racing and this state generally. If the commission approves an application submitted pursuant to this section, the director shall conduct periodic inspections of the capital improvement at least monthly during the construction period of the capital improvement in order to ascertain compliance with the permittee's application. In the event that such approved project has not commenced within one year following approval by the commission, unless such period is extended by the commission, the funds not expended pursuant to approval of the commission shall revert to the general fund of the state and the decrease in the percentage paid to this state by reason of the approval of the commission shall terminate. Where the approved project includes acquisition of a new racetrack facility site, the funds not expended pursuant to the approval of the commission shall revert to the general fund of the state if acquisition has not been completed and the project has not commenced within two years of the approval of the project by the commission unless such time has been extended by the commission. The commission may suspend or revoke the authority of the permittee to expend capital improvement monies for failure to comply with the capital improvement application approved pursuant to this subsection. The permittee shall notify the commission of the completion of construction on each capital improvement authorized pursuant to this section.
D. The decrease in percentage paid to the state by the permittee pursuant to this section starts from the date dog racing is first conducted following the date of approval by the commission of the permittee's application for the funding of a capital improvement at the dog track and continues until sufficient funds have been obtained for completion of the capital improvement approved by the commission.
E. Following commission approval of an application for funding of a capital improvement at a dog track pursuant to this section, the permittee shall set aside in a separate capital improvement escrow or trust account all monies retained from the decrease in the state's share. The monies in the account and any interest on the monies may be used only for the capital improvement previously approved by the commission. The permittee shall provide to the commission quarterly reports on a form prescribed by the director which show for the previous calendar quarter:
1. Payments to and expenditures from each capital improvement or trust account established pursuant to this section.
2. The progress of construction on the capital improvement approved by the commission.
F. The cost of a capital improvement shall be determined by generally accepted accounting principles and verified upon completion of the project by an audit of the permittee's records conducted by the auditor general acting at the instructions of the commission or an independent certified public accountant selected by the permittee and approved by the commission.
G. In this section, unless the context otherwise requires, " capital improvement" means an addition, replacement or remodeling of a racetrack facility involving an expenditure of at least fifty thousand dollars. Capital improvement also includes architectural and design expenses directly related to such addition, replacement or remodeling whether incurred before or after project approval by the commission. Capital improvement does not include the cost of ordinary repairs and maintenance required to keep a racetrack facility in ordinary operating condition and does not include operational expenses, but may include the direct acquisition of water trucks and tractors.
H. This section expires on June 30, 1992, except that projects approved prior to this date may continue until their completion under the terms of this section and the decrease in percentage paid to the state by the permittee shall continue until sufficient funds have been obtained for completion of the approved capital improvement.Section: Previous 5-108.05 5-109 5-109.01 5-110 5-111 5-111.01 5-111.02 5-111.03 5-111.04 5-112 5-112.01 5-113 5-113.01 5-114 5-115 Next
Last modified: October 13, 2016