(a) As a condition of racing:

1. (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. (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. (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. (1) be a legally constituted association or corporation;
2. (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. (3) submit to the commission proof both that: 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.

   1. (i) it represents more than 51 percent of all the owners and trainers utilizing the same facilities; and
   2. (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.