(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.