(b) At least once annually, prior to approving any plan for the expenditure of such capital improvement funds pursuant to this section, the board shall, together with the track operator and representatives of the horsemen's organization representing owners and trainers utilizing the facility, inspect the entire facility, including the area commonly referred to as the backstretch, in order to determine whether the capital improvement plan submitted by the association or corporation for board approval includes adequate provision for expenditures relating to the continued health, safety and well-being of patrons, backstretch personnel and the horses in their care. After such inspection, if the board shall determine that such proposed plan does not include adequate provision for repairs and improvements necessary to correct any conditions that it has determined to be unsafe or otherwise deleterious to the health and safety of patrons, employees or horses, the board shall require the track operator to modify its capital improvement plan to provide for the expenditure of funds for such repairs and improvements. 3. On or after July first, nineteen hundred ninety for a harness track other than a harness track authorized to operate in Westchester or Nassau county or a harness track owned by a non-profit county agricultural society and leased by a harness racing association such amounts as may be withheld for the purposes of this section shall be deposited in a trust fund, kept and maintained by such corporation or association and administered by a trustee approved by the racing and wagering board for the purpose of lending such sums and any interest thereon on an unsecured basis to such corporation or association exclusively for capital improvements as defined in subdivision one of this section. All such amounts borrowed by such corporation or association from such trust shall be forgiven and deemed satisfied according to a schedule of depreciation deductions for federal and New York state income tax purposes for such related capital improvements. It is further provided that at such time as such corporation or association shall surrender its pari-mutuel license or fail to apply for a pari-mutuel license for the succeeding year by December thirty-first of the preceding year that the racing and wagering board may declare the trust fund at an end and all sums therein deposited plus all sums due or owing from such corporation or association to such trust shall be disposed of in accordance with provisions of law to be enacted for such purpose; except that the racing and wagering board shall direct that such sums therein deposited and all sums due and owing from such corporation or association be transferred to the credit of a successor in interest to such corporation or association upon the licensing of such successor in interest by the board. Such trust shall be established and administered pursuant to the rules and regulations of the racing and wagering board.