BILL NUMBER: S6012
SPONSOR: BASKIN
 
TITLE OF BILL:
An act to amend the economic development law, in relation to authorizing
local municipalities to establish tourism improvement districts
 
PURPOSE:
To authorize municipalities to establish Tourism Improvement Districts,
for the purposes of generating revenue for the marketing and promotion
of tourism
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Amends the economic development law by adding a new Article
23 establishing Tourism Improvement Districts specifying the following:
sets the defmitions as used in this article, explains the contents of
the district plan, authorizes municipalities to adopt a law to establish
or extend a district in the municipality, sets the powers that the local
legislative body may establish for the district subject to the
provisions of the article, sets the filing process for the district
plan, sets the notice and hearing process for municipalities once the
district plan is filed, sets the process for the establishment and
extension of a district plan, sets the process for publication, filing,
and the judicial review of a district plan, sets the amendment process
for a district plan upon recommendations from the district management
association, sets how expenses from that district that are incurred
shall be paid for, establishes that the proceeds for any business
assessment that is imposed must be remitted to the district management
association within 60 days from when they are collected, defines the
"district management association" as used in this article, sets the
dissolution process of the district plan, and states if any section of
this article is ruled invalid by a judge of any court, it shall not
affect or invalidate the remaining provisions of any sections of this
article or the application of any part thereof to any other person or
circumstance.
Section 2: Sets the effective date.
 
JUSTIFICATION:
District Management Associations are an integral component of the tour-
ism industry and would benefit greatly from a new revenue source in
order to help fund marketing and promotion efforts.
This bill simply authorizes municipalities to adopt a local law to
establish a tourism improvement district for the purposes of raising
revenue through business assessments on lodging facilities, for the
benefit of businesses through district improvements facilitated by the
District Management Association. Decisions regarding surcharge amounts
and types of fees imposed are exclusively reserved to local munici-
palities and their duly-elected officials. In other parts of the coun-
try, tourism districts like these have been successful in attracting
overnight visitors, raising awareness about a given destination, spon-
soring special events and programs that can bring in large-group busi-
ness to a specific area. This legislation has the potential to generate
critically-needed revenue for local tourism initiatives that will help
boost local economies and support the small businesses which are the
bedrock of our communities.
 
LEGISLATIVE HISTORY:
2021-22: S.6186-A/A.2149
 
FISCAL IMPLICATIONS:
None.  
EFFECTIVE DATE:
Immediately.