Bill Text: NY S05474 | 2023-2024 | General Assembly | Amended
Bill Title: Authorizes local municipalities to establish or expand tourism improvement districts and provide services thereto.
Spectrum: Bipartisan Bill
Status: (Introduced) 2024-01-03 - REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS [S05474 Detail]
Download: New_York-2023-S05474-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5474--A 2023-2024 Regular Sessions IN SENATE March 6, 2023 ___________ Introduced by Sens. KENNEDY, BAILEY, COMRIE, GALLIVAN, HOYLMAN-SIGAL, MATTERA, WEIK -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the economic development law, in relation to authorizing local municipalities to establish tourism improvement districts The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The economic development law is amended by adding a new 2 article 23 to read as follows: 3 ARTICLE 23 4 TOURISM IMPROVEMENT DISTRICTS 5 Section 447. Definitions. 6 448. District plan. 7 449. Powers and duties. 8 450. Notice and hearing. 9 451. Establishment or extension of the district. 10 452. Publication, filing and judicial review. 11 453. Amendments to the district plan. 12 454. Expense of the district. 13 455. Expenditure of district funds. 14 456. District management association. 15 457. Dissolution. 16 458. Severability. 17 § 447. Definitions. For the purposes of this article, the following 18 terms shall have the following meanings: 19 1. "Assessment" means a levy imposed on behalf of the district on a 20 business as provided in the district plan. 21 2. "Business" shall be defined as a hotel, motel, inn, bed and break- 22 fast or any lodging facility that provides common hotel services, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02937-02-3S. 5474--A 2 1 including housekeeping services and food services. "Business" shall not 2 include free standing single family dwelling units, including but not 3 limited to, bungalows, cottages, or cabins. 4 3. "Benefited business" means businesses located within a district, 5 which benefit from district improvements based on a rational nexus test. 6 Districts may include one or more types of businesses. Businesses need 7 not profit equally to be considered to have benefited. Assessed busi- 8 nesses located in a tourism improvement district are not required to be 9 contiguous. 10 4. "Business assessment" means any assessment made pursuant to this 11 article upon a business. 12 5. "Business owner" means any person recognized by a municipality as 13 the owner of the business. 14 6. "District" means a tourism improvement district established pursu- 15 ant to this article, which may include an entire county or multiple 16 counties provided that a district may not overlap in whole or in part 17 with a city with a population of one million or more. 18 7. "District management association" means the association established 19 pursuant to section four hundred fifty-six of this article. 20 8. "District plan" or "plan" means a proposal as described in section 21 four hundred forty-eight of this article. 22 9. "Legislative body" means the local legislative body of a munici- 23 pality empowered to adopt and amend local laws or ordinances. 24 10. "Municipality" means a county within the state of New York, except 25 counties located within a city with a population of one million or more. 26 In a district which includes more than one municipality, the munici- 27 pality in which the district plan is filed shall be the lead munici- 28 pality of the district. The county which shall serve as the lead munici- 29 pality may not form a district within the territorial jurisdiction of 30 another county without the consent of the legislative body of that coun- 31 ty. 32 11. "Rational nexus" means the legal principle which requires that 33 there is a rational benefit which accrues to any business owner assessed 34 for said benefit in a district created pursuant to this article. All 35 designated business owners within a designated district paying an 36 assessment must benefit directly or indirectly from improvements 37 provided by a district management association within the district, 38 provided, however, that designated business owners need not benefit 39 equally. 40 12. "Municipal clerk" means the clerk of the board of supervisors of 41 the county legislature as appointed pursuant to section four hundred 42 seventy-five of the county law. 43 § 448. District plan. 1. The legislative body shall provide for the 44 preparation of a district plan. The district plan shall contain the 45 following: 46 (a) a map of the district; 47 (b) a description of the boundaries of the district proposed for 48 establishment or extension in a manner sufficient to identify the lands 49 included; 50 (c) the improvements and activities proposed and the appropriate 51 projected cost thereof; 52 (d) the total estimated annual amount proposed to be expended for 53 improvements, activities, maintenance, and operation; 54 (e) the proposed source or sources of financing; 55 (f) the proposed time for implementation and completion of the 56 district plan;S. 5474--A 3 1 (g) any proposed rules and regulations to be applicable to the 2 district; 3 (h) identification of a new or an existing entity, agency, or nonpro- 4 fit corporation, charged with promoting tourism in that region, as the 5 district management association; and 6 (i) any other item or matter required to be incorporated therein by 7 the legislative body. 8 2. (a) Every municipality shall be authorized to adopt a local law, 9 subject to permissive referendum, providing that the provisions of this 10 section shall be applicable to the establishment or extension of 11 districts in the municipality. 12 (b) Every existing district previously formed is declared valid, 13 effective, and in compliance with this article. Such existing districts 14 are subject solely to the provisions of this article notwithstanding any 15 provision of prior law. 16 § 449. Powers and duties. 1. Upon establishment of a district pursu- 17 ant to the provisions of this article, the legislative body shall have 18 authority to exercise the following powers with respect to such 19 district, subject to the provisions of this section: 20 (a) provide for activities and other additional services required for 21 tourism promotion and enhancement of the district, whether or not in 22 conjunction with improvements authorized by this article; 23 (b) provide for district improvements which will fund the promotion of 24 tourism activities in the district including, but not limited to, the 25 acquisition, construction, installation, or maintenance of any tangible 26 property with an estimated useful life of five years or more; and 27 (c) provide for the operation and maintenance of any district improve- 28 ment. 29 2. (a) Notwithstanding any provision of law to the contrary, all 30 rights or benefits, including terms and conditions of employment, and 31 protection of civil service and collective bargaining status of all 32 employees of a public employer shall be preserved and protected. 33 (b) Nothing in this article shall result in the: (i) displacement of 34 any currently employed worker or loss of position, including partial 35 displacement such as a reduction in the hours of non-overtime work, 36 wages or employment benefits, or result in the impairment of existing 37 collective bargaining agreements; (ii) transfer of existing duties and 38 functions related to maintenance and operations currently performed by 39 existing employees of a public employer to a contracting entity; or 40 (iii) transfer of future duties and functions ordinarily performed by 41 employees of a public employer to a contracting entity. 42 (c) Employees performing maintenance and operations of any district 43 improvement serving in positions in newly created titles shall be 44 assigned to the appropriate bargaining unit. Nothing contained in this 45 article shall be construed to affect: (i) the existing rights of employ- 46 ees pursuant to an existing collective bargaining agreement; (ii) the 47 existing representational relationships among employee organizations 48 representing employees of public employers; or (iii) the bargaining 49 relationships between public employers and such employee organizations. 50 3. After the establishment of a management district, the legislative 51 body shall not decrease the level of publicly funded tourism promotion 52 services in the management district existing prior to the creation of 53 the district. 54 4. Assessments levied on businesses pursuant to this article shall be 55 levied on the basis of the estimated benefit to the businesses within 56 the tourism improvement district. The legislative body of the munici-S. 5474--A 4 1 pality may classify businesses for purposes of determining the benefit 2 to the businesses of the improvements and activities provided pursuant 3 to subdivision one of this section. A municipality is authorized to form 4 a district that levies assessments on businesses located in the munici- 5 pality, including those located in a city, town and village. 6 5. A municipality shall be authorized to form a district that includes 7 other municipalities. 8 6. The district plan shall be filed with the office of the municipal 9 clerk. The establishment or extension of a district shall be based upon 10 the district plan filed in the office of the municipal clerk. All 11 district plans shall conform with the requirements of this article. 12 § 450. Notice and hearing. 1. After the filing of the district plan 13 in the office of the municipal clerk pursuant to section four hundred 14 forty-nine of this article, the legislative body may adopt a resolution 15 and shall enter the same in the minutes of its proceedings. This resol- 16 ution shall contain a copy of the district plan, the fact that a 17 district plan is on file in the municipal clerk's office for public 18 inspection and the time when and the place where the legislative body 19 will meet and hold a public hearing to hear all persons interested in 20 the subject thereof. 21 2. The resolution shall also contain a statement that any assessed 22 business owner, deemed benefited and therefore within the district, 23 objecting to the plan shall file an objection at the office of the 24 municipal clerk within thirty days of the conclusion of the hearing on 25 forms made available by the clerk, and, further, that if business owners 26 that shall pay more than fifty percent of the amount raised by the 27 assessed businesses situated within the boundaries of the district 28 proposed for establishment or extension, as shown upon the latest 29 completed municipal business list, file their objections, the district 30 will not be established or extended. 31 3. The legislative body shall cause a copy of the resolution or a 32 summary thereof to be published at least once in the official paper or a 33 newspaper in general circulation in the municipality, the first publica- 34 tion to be not less than ten nor more than thirty days before the day 35 set for the hearing required by this section. In addition, not less than 36 ten nor more than thirty days before the date set for the hearing, the 37 legislative body shall cause a copy of the resolution or a summary ther- 38 eof to be mailed to each owner of an assessed business within the 39 proposed district at the address shown on the latest municipal business 40 list. If the legislative body publishes or mails a summary of the resol- 41 ution, such summary shall include the business address of the municipal 42 clerk, a statement that copies of the resolution shall be made available 43 free of charge to the public, the improvements, activities, or services 44 proposed, the total estimated annual amount proposed to be expended for 45 improvements, activities, maintenance and operation, and a statement 46 indicating the rights of owners to object pursuant to subdivision two of 47 this section. 48 4. The resolution may further state the place, other than the munici- 49 pal clerk's office, where the district plan may be inspected in advance 50 of the hearing, if the legislative body determines that, in the public 51 interest, any additional place of inspection is necessary or desirable. 52 § 451. Establishment or extension of the district. 1. Not earlier 53 than thirty days after the conclusion of the last day of the public 54 hearing held pursuant to section four hundred fifty of this article, the 55 legislative body shall determine:S. 5474--A 5 1 (a) whether the notice of hearing for all hearings required to be held 2 was published and mailed as required by law and is otherwise sufficient; 3 (b) whether all the assessed businesses within the boundaries of the 4 proposed district or extension will benefit from the establishment or 5 extension of the district; and 6 (c) whether the establishment or extension of the district is in the 7 public interest. 8 2. (a) If the legislative body shall determine the establishment or 9 extension of the district is not in the public interest pursuant to 10 paragraph (c) of subdivision one of this section, or if the requisite 11 number of owners shall have filed their objections as provided in 12 section four hundred fifty of this article, the legislative body shall 13 adopt a resolution disapproving the establishment or extension of the 14 district, stating the reasons for its determination and enter the same 15 in the minutes of its proceedings. Thereafter no plan for the estab- 16 lishment or extension of a district to include any business proposed to 17 be included in the disapproved district may be prepared as provided in 18 section four hundred fifty of this article until the expiration of at 19 least one year from the date of disapproval. 20 (b) If the legislative body shall find that notice was incorrectly or 21 insufficiently given or that, except as otherwise provided in section 22 four hundred forty-eight of this article, any assessed business within 23 the boundaries of the proposed district or extension is not benefited 24 thereby or that certain businesses benefited thereby had not been 25 included therein, it shall call a further hearing at a definite place 26 and time not less than ten nor more than thirty days after this determi- 27 nation. In the resolution calling such hearing, it shall specify the 28 necessary changes, if any, to the boundaries of the proposed district or 29 extension to be made in order that, except as otherwise provided in 30 section four hundred forty-eight of this article, all of the businesses 31 and only those businesses as deemed benefited shall be included within 32 the boundaries of the proposed district or extension. Benefited busi- 33 nesses located in a district are not required to be contiguous. Notice 34 of the further hearing shall be published and mailed in the manner 35 provided in section four hundred fifty of this article, except that, 36 where boundaries are to be altered, this notice shall also specify the 37 manner in which it is proposed to alter the boundaries of the proposed 38 district or extension. The further hearing shall be conducted in the 39 same manner as the original hearing. 40 3. If and when the legislative body shall determine in the affirmative 41 all of the questions set forth in subdivision one of this section, and 42 provided that the requisite number of owners shall not have objected as 43 provided in section four hundred fifty of this article, it may adopt a 44 local law approving the establishment or extension of the district as 45 the boundaries shall be finally determined and the construction of the 46 improvement or providing of the activity or service in the district. 47 4. Upon the recommendation of the district management association and 48 after a public hearing, the legislative body may adopt a local law at 49 any time prior to or after the establishment of a district to change the 50 method of assessment as set forth in the plan. Notice of such public 51 hearing and a description of the proposed change shall be given in the 52 manner set forth in section four hundred fifty of this article. 53 § 452. Publication, filing and judicial review. 1. The municipal clerk 54 shall cause a certified copy of the local law of the legislative body 55 adopted pursuant to the provisions of this article establishing or 56 extending any district, or increasing the maximum total amount proposedS. 5474--A 6 1 to be expended for the improvement, activities, or additional services 2 in any district or extension, or changing the method of assessment, or 3 authorizing the district to incur debt to provide for additional 4 improvements, activities, or services within the district, to be duly 5 recorded in the municipal clerk's office within ten days after such 6 local law becomes effective. When recorded this local law shall be 7 presumptive evidence of the regularity of the proceedings for the estab- 8 lishment or extension of the district, of the proceedings instituted for 9 the construction of any improvement and of all other actions taken in 10 relation to it. 11 2. Within ten days after the local law becomes effective, the munici- 12 pal clerk shall, in addition to any other filing required by law, cause 13 a copy of the local law or a summary thereof to be published at least 14 once in the official paper or newspaper of general circulation in the 15 municipality. 16 3. This local law shall be final and conclusive unless a proceeding to 17 review is commenced in accordance with this article. Any person 18 aggrieved by any local law adopted pursuant to this article may seek 19 judicial review of the local law in the manner provided by article 20 seventy-eight of the civil practice law and rules, provided the proceed- 21 ing is commenced within thirty days from the date of the publication of 22 the copy or summary of the local law pursuant to subdivision two of this 23 section. No review shall be had unless the petitioner shall give an 24 undertaking approved by the supreme court, or a justice thereof, as to 25 form, amount and sufficiency of sureties, that, in the event of failure 26 to modify the local law he or she will pay to the municipality, all 27 costs and expenses as are incurred by it on account of the proceedings, 28 as shall be determined by the court. In the event that upon this review 29 there shall be any modification by the court of the local law, the court 30 shall direct the modification by judgment which shall be final and 31 conclusive, and the municipal clerk shall cause the judgment to be 32 recorded and filed in the same places and manner as was the local law 33 which was modified. 34 § 453. Amendments to the district plan. 1. At any time after the 35 establishment or extension of a district pursuant to the provisions of 36 this article, the district plan upon which the establishment or exten- 37 sion was based, may, upon the recommendation of the district management 38 association, be amended by the legislative body after compliance with 39 the procedures set forth in this article. 40 2. Amendments to the district plan which provide for changes to the 41 improvements, activities, or services provided under the district plan 42 may be adopted by the district management association and do not require 43 actions by the legislative body. 44 3. Amendments to the district plan which provide for changes to the 45 boundaries of the district or any change in the method of assessment 46 upon which the business assessment is based may be adopted by local law 47 of the legislative body, provided that the legislative body of the muni- 48 cipality shall, after a public hearing, determine that it is in the 49 public interest to authorize such changes to the boundaries of the 50 district or changes to the method of assessment. The legislative body 51 shall give notice of the hearing by publication of a notice on the 52 legislative body's website or in at least one newspaper having general 53 circulation in the district specifying the time when and the place where 54 the hearing will be held and stating any changes to the boundaries of 55 the district, or any change in the method of assessment upon which theS. 5474--A 7 1 business assessment is based. The notice shall be published once at 2 least ten days prior to the date specified for the hearing. 3 4. Amendments to the district plan which provide for the district to 4 incur indebtedness in order to provide for additional improvements or 5 activities, or which provide an increase only in the amount to be 6 expended annually for improvements, activities, services, maintenance 7 and operation, or which provide for an increase in the total maximum 8 amount to be expended for improvements or activities in the district, 9 may be adopted by local law of the legislative body. Adoption of a local 10 law of the legislative body regarding the amendments as provided in this 11 paragraph requires that the legislative body shall, after a public hear- 12 ing, determine that it is in the public interest to authorize the 13 district to incur indebtedness to provide for additional improvements or 14 activities, or to increase only in the amount to be expended annually, 15 or to increase the maximum total amount to be expended for improvements 16 or activities in the district. Notice of the hearing shall be published 17 and mailed in the manner provided in section four hundred fifty of this 18 article. 19 § 454. Expense of the district. 1. The expense incurred in the 20 construction or operation of any improvement, activities, or provision 21 of additional services in a district pursuant to this article shall be 22 financed in accordance with the district plan upon which the establish- 23 ment or extension of the district was based. Activities or services for 24 which district business owners are assessed pursuant to the plan shall 25 be in addition to or an enhancement of those provided by the munici- 26 pality prior to the establishment of the district. The expense and cost 27 apportioned to benefited businesses in accordance with the plan shall be 28 a business assessment upon each benefited business within the district. 29 2. The business assessment levied upon benefited businesses pursuant 30 to this article shall be imposed as provided in the district plan. 31 3. Any municipality which has established a district pursuant to this 32 article, may, for the purpose of providing funds for making capital 33 improvements, within a district, issue and sell bonds or other municipal 34 obligations as provided in the local finance law and other applicable 35 laws and statutes. Principal and interest payments on these bonds or 36 other municipal obligations may be made in whole or in part from the 37 proceeds of business assessments imposed upon benefited businesses with- 38 in the district. 39 § 455. Expenditure of district funds. The proceeds of any business 40 assessment imposed pursuant to this article shall be remitted to the 41 district management association by the municipality within sixty days 42 following the collection of assessments from assessed businesses. None 43 of the proceeds collected pursuant to this article shall be used for any 44 purposes other than those set forth in the district plan. 45 § 456. District management association. 1. There shall be a district 46 management association for each district established pursuant to the 47 provisions of this article, which, if a non-profit corporation, shall 48 pursuant to the not-for-profit corporation law have one or more classes 49 or membership, voting or non-voting for the purpose of carrying out such 50 activities as may be prescribed in the plan. 51 2. The board of directors of the association may include, but shall 52 not be limited to, representatives of business owners within the 53 district. 54 3. In addition to such other powers as are conferred on it by law, the 55 district management association may make recommendations to the legisla-S. 5474--A 8 1 tive body with respect to any matter involving or relating to the 2 district. 3 § 457. Dissolution. Any district established or extended pursuant to 4 the provisions of this article, where there is no indebtedness, 5 outstanding and unpaid, incurred to accomplish any of the purposes of 6 the district, may be dissolved by resolution of the legislative body of 7 the municipality, if the legislative body of the municipality finds 8 there has been misappropriation of funds, malfeasance, or a violation of 9 law in connection with the management of the district. It shall provide 10 a notice of a hearing on disestablishment pursuant to section four 11 hundred fifty of this article. Each year on the anniversary of formation 12 of the district there shall be a thirty-day window where petitions of 13 the business owners, or business owner representatives, that shall pay 14 more than fifty percent of the total amount raised by all benefited 15 businesses included in the boundaries of the district may petition to 16 dissolve the district. The legislative body shall request and consider 17 the recommendations of the district management association concerning 18 any proposed dissolution, provided that if the association has not 19 submitted recommendations to the legislative body within ninety days 20 after request therefore, the legislative body shall adopt any such 21 proposed dissolution without considering such recommendations. In the 22 event of dissolution, any remaining revenues, after all outstanding 23 debts are paid, derived from the levy of assessments, or derived from 24 the sale of assets acquired with the revenues, or from bond reserve or 25 construction funds, shall be spent in accordance with the district plan 26 or shall be refunded to the assessed business owners by applying the 27 same method and basis that was used to calculate the district assess- 28 ments that were levied. 29 § 458. Severability. If any provision of this article or the applica- 30 tion thereof to any person or circumstance shall be adjudged invalid by 31 any court of competent jurisdiction, such order or judgment shall be 32 confined in its operation to the controversy in which it was rendered 33 and shall not affect or invalidate the remainder of any provisions of 34 this article or the application of any part thereof to any other person 35 or circumstance and to this end the provisions of this article are here- 36 by declared to be severable. 37 § 2. This act shall take effect immediately.
