STATE OF NEW YORK
________________________________________________________________________
6186--A
2021-2022 Regular Sessions
IN SENATE
April 14, 2021
___________
Introduced by Sens. KENNEDY, BAILEY, COMRIE, GALLIVAN, HOYLMAN, MATTERA,
WEIK -- read twice and ordered printed, and when printed to be commit-
ted to the Committee on Commerce, Economic Development and Small Busi-
ness -- recommitted to the Committee on Commerce, Economic Development
and Small Business in accordance with Senate Rule 6, sec. 8 -- commit-
tee discharged, bill amended, ordered reprinted as amended and recom-
mitted to said committee
AN ACT to amend the economic development law, in relation to authorizing
local municipalities to establish tourism recovery 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 RECOVERY 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:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04944-07-2
S. 6186--A 2
1 1. "Assessment" means a levy imposed on behalf of the district on a
2 business as provided in the district plan.
3 2. "Business" shall be defined as a hotel, motel, inn, bed and break-
4 fast or any lodging facility that provides common hotel services,
5 including housekeeping services and food services. "Business" shall not
6 include free standing single family dwelling units, including but not
7 limited to, bungalows, cottages, or cabins.
8 3. "Benefited business" means businesses located within a district,
9 which benefit from district improvements based on a rational nexus test.
10 Districts may include one or more types of businesses. Businesses need
11 not profit equally to be considered to have benefited. Assessed busi-
12 nesses located in a tourism recovery improvement district are not
13 required to be contiguous.
14 4. "Business assessment" means any assessment made pursuant to this
15 article upon a business.
16 5. "Business owner" means any person recognized by a municipality as
17 the owner of the business.
18 6. "District" means a tourism improvement district established pursu-
19 ant to this article, which may include an entire county or multiple
20 counties provided that a district may not overlap in whole or in part
21 with a city with a population of one million or more.
22 7. "District management association" means the association established
23 pursuant to section four hundred fifty-six of this article.
24 8. "District plan" or "plan" means a proposal as described in section
25 four hundred forty-eight of this article.
26 9. "Legislative body" means the local legislative body of a munici-
27 pality empowered to adopt and amend local laws or ordinances.
28 10. "Municipality" means a county within the state of New York, except
29 counties located within a city with a population of one million or more.
30 In a district which includes more than one municipality, the munici-
31 pality in which the district plan is filed shall be the lead munici-
32 pality of the district. The county which shall serve as the lead munici-
33 pality may not form a district within the territorial jurisdiction of
34 another county without the consent of the legislative body of that coun-
35 ty.
36 11. "Rational nexus" means the legal principle which requires that
37 there is a rational benefit which accrues to any business owner assessed
38 for said benefit in a district created pursuant to this article. All
39 designated business owners within a designated district paying an
40 assessment must benefit directly or indirectly from improvements
41 provided by a district management association within the district,
42 provided, however, that designated business owners need not benefit
43 equally.
44 12. "Municipal clerk" means the clerk of the board of supervisors of
45 the county legislature as appointed pursuant to section four hundred
46 seventy-five of the county law.
47 § 448. District plan. 1. The legislative body shall provide for the
48 preparation of a district plan. The district plan shall contain the
49 following:
50 (a) a map of the district;
51 (b) a description of the boundaries of the district proposed for
52 establishment or extension in a manner sufficient to identify the lands
53 included;
54 (c) the improvements and activities proposed and the appropriate
55 projected cost thereof;
S. 6186--A 3
1 (d) the total estimated annual amount proposed to be expended for
2 improvements, activities, maintenance, and operation;
3 (e) the proposed source or sources of financing;
4 (f) the proposed time for implementation and completion of the
5 district plan;
6 (g) any proposed rules and regulations to be applicable to the
7 district;
8 (h) identification of a new or an existing entity, agency, or nonpro-
9 fit corporation, charged with promoting tourism in that region, as the
10 district management association; and
11 (i) any other item or matter required to be incorporated therein by
12 the legislative body.
13 2. (a) Every municipality shall be authorized to adopt a local law,
14 subject to permissive referendum, providing that the provisions of this
15 section shall be applicable to the establishment or extension of
16 districts in the municipality.
17 (b) Every existing district previously formed is declared valid,
18 effective, and in compliance with this article. Such existing districts
19 are subject solely to the provisions of this article notwithstanding any
20 provision of prior law.
21 § 449. Powers and duties. 1. Upon establishment of a district pursu-
22 ant to the provisions of this article, the legislative body shall have
23 authority to exercise the following powers with respect to such
24 district, subject to the provisions of this section:
25 (a) provide for activities and other additional services required for
26 tourism promotion and enhancement of the district, whether or not in
27 conjunction with improvements authorized by this article;
28 (b) provide for district improvements which will fund the promotion of
29 tourism activities in the district including, but not limited to, the
30 acquisition, construction, installation, or maintenance of any tangible
31 property with an estimated useful life of five years or more; and
32 (c) provide for the operation and maintenance of any district improve-
33 ment.
34 2. (a) Notwithstanding any provision of law to the contrary, all
35 rights or benefits, including terms and conditions of employment, and
36 protection of civil service and collective bargaining status of all
37 employees of a public employer shall be preserved and protected.
38 (b) Nothing in this article shall result in the: (i) displacement of
39 any currently employed worker or loss of position, including partial
40 displacement such as a reduction in the hours of non-overtime work,
41 wages or employment benefits, or result in the impairment of existing
42 collective bargaining agreements; (ii) transfer of existing duties and
43 functions related to maintenance and operations currently performed by
44 existing employees of a public employer to a contracting entity; or
45 (iii) transfer of future duties and functions ordinarily performed by
46 employees of a public employer to a contracting entity.
47 (c) Employees performing maintenance and operations of any district
48 improvement serving in positions in newly created titles shall be
49 assigned to the appropriate bargaining unit. Nothing contained in this
50 article shall be construed to affect: (i) the existing rights of employ-
51 ees pursuant to an existing collective bargaining agreement; (ii) the
52 existing representational relationships among employee organizations
53 representing employees of public employers; or (iii) the bargaining
54 relationships between public employers and such employee organizations.
55 3. After the establishment of a management district, the legislative
56 body shall not decrease the level of publicly funded tourism promotion
S. 6186--A 4
1 services in the management district existing prior to the creation of
2 the district.
3 4. Assessments levied on businesses pursuant to this article shall be
4 levied on the basis of the estimated benefit to the businesses within
5 the tourism improvement district. The legislative body of the munici-
6 pality may classify businesses for purposes of determining the benefit
7 to the businesses of the improvements and activities provided pursuant
8 to subdivision one of this section. A municipality is authorized to form
9 a district that levies assessments on businesses located in the munici-
10 pality, including those located in a city, town and village.
11 5. A municipality shall be authorized to form a district that includes
12 other municipalities.
13 6. The district plan shall be filed with the office of the municipal
14 clerk. The establishment or extension of a district shall be based upon
15 the district plan filed in the office of the municipal clerk. All
16 district plans shall conform with the requirements of this article.
17 § 450. Notice and hearing. 1. After the filing of the district plan
18 in the office of the municipal clerk pursuant to section four hundred
19 forty-nine of this article, the legislative body may adopt a resolution
20 and shall enter the same in the minutes of its proceedings. This resol-
21 ution shall contain a copy of the district plan, the fact that a
22 district plan is on file in the municipal clerk's office for public
23 inspection and the time when and the place where the legislative body
24 will meet and hold a public hearing to hear all persons interested in
25 the subject thereof.
26 2. The resolution shall also contain a statement that any assessed
27 business owner, deemed benefited and therefore within the district,
28 objecting to the plan shall file an objection at the office of the
29 municipal clerk within thirty days of the conclusion of the hearing on
30 forms made available by the clerk, and, further, that if business owners
31 that shall pay more than fifty percent of the amount raised by the
32 assessed businesses situated within the boundaries of the district
33 proposed for establishment or extension, as shown upon the latest
34 completed municipal business list, file their objections, the district
35 will not be established or extended.
36 3. The legislative body shall cause a copy of the resolution or a
37 summary thereof to be published at least once in the official paper or a
38 newspaper in general circulation in the municipality, the first publica-
39 tion to be not less than ten nor more than thirty days before the day
40 set for the hearing required by this section. In addition, not less than
41 ten nor more than thirty days before the date set for the hearing, the
42 legislative body shall cause a copy of the resolution or a summary ther-
43 eof to be mailed to each owner of an assessed business within the
44 proposed district at the address shown on the latest municipal business
45 list. If the legislative body publishes or mails a summary of the resol-
46 ution, such summary shall include the business address of the municipal
47 clerk, a statement that copies of the resolution shall be made available
48 free of charge to the public, the improvements, activities, or services
49 proposed, the total estimated annual amount proposed to be expended for
50 improvements, activities, maintenance and operation, and a statement
51 indicating the rights of owners to object pursuant to subdivision two of
52 this section.
53 4. The resolution may further state the place, other than the munici-
54 pal clerk's office, where the district plan may be inspected in advance
55 of the hearing, if the legislative body determines that, in the public
56 interest, any additional place of inspection is necessary or desirable.
S. 6186--A 5
1 § 451. Establishment or extension of the district. 1. Not earlier
2 than thirty days after the conclusion of the last day of the public
3 hearing held pursuant to section four hundred fifty of this article, the
4 legislative body shall determine:
5 (a) whether the notice of hearing for all hearings required to be held
6 was published and mailed as required by law and is otherwise sufficient;
7 (b) whether all the assessed businesses within the boundaries of the
8 proposed district or extension will benefit from the establishment or
9 extension of the district; and
10 (c) whether the establishment or extension of the district is in the
11 public interest.
12 2. (a) If the legislative body shall determine the establishment or
13 extension of the district is not in the public interest pursuant to
14 paragraph (c) of subdivision one of this section, or if the requisite
15 number of owners shall have filed their objections as provided in
16 section four hundred fifty of this article, the legislative body shall
17 adopt a resolution disapproving the establishment or extension of the
18 district, stating the reasons for its determination and enter the same
19 in the minutes of its proceedings. Thereafter no plan for the estab-
20 lishment or extension of a district to include any business proposed to
21 be included in the disapproved district may be prepared as provided in
22 section four hundred fifty of this article until the expiration of at
23 least one year from the date of disapproval.
24 (b) If the legislative body shall find that notice was incorrectly or
25 insufficiently given or that, except as otherwise provided in section
26 four hundred forty-eight of this article, any assessed business within
27 the boundaries of the proposed district or extension is not benefited
28 thereby or that certain businesses benefited thereby had not been
29 included therein, it shall call a further hearing at a definite place
30 and time not less than ten nor more than thirty days after this determi-
31 nation. In the resolution calling such hearing, it shall specify the
32 necessary changes, if any, to the boundaries of the proposed district or
33 extension to be made in order that, except as otherwise provided in
34 section four hundred forty-eight of this article, all of the businesses
35 and only those businesses as deemed benefited shall be included within
36 the boundaries of the proposed district or extension. Benefited busi-
37 nesses located in a district are not required to be contiguous. Notice
38 of the further hearing shall be published and mailed in the manner
39 provided in section four hundred fifty of this article, except that,
40 where boundaries are to be altered, this notice shall also specify the
41 manner in which it is proposed to alter the boundaries of the proposed
42 district or extension. The further hearing shall be conducted in the
43 same manner as the original hearing.
44 3. If and when the legislative body shall determine in the affirmative
45 all of the questions set forth in subdivision one of this section, and
46 provided that the requisite number of owners shall not have objected as
47 provided in section four hundred fifty of this article, it may adopt a
48 local law approving the establishment or extension of the district as
49 the boundaries shall be finally determined and the construction of the
50 improvement or providing of the activity or service in the district.
51 4. Upon the recommendation of the district management association and
52 after a public hearing, the legislative body may adopt a local law at
53 any time prior to or after the establishment of a district to change the
54 method of assessment as set forth in the plan. Notice of such public
55 hearing and a description of the proposed change shall be given in the
56 manner set forth in section four hundred fifty of this article.
S. 6186--A 6
1 § 452. Publication, filing and judicial review. 1. The municipal clerk
2 shall cause a certified copy of the local law of the legislative body
3 adopted pursuant to the provisions of this article establishing or
4 extending any district, or increasing the maximum total amount proposed
5 to be expended for the improvement, activities, or additional services
6 in any district or extension, or changing the method of assessment, or
7 authorizing the district to incur debt to provide for additional
8 improvements, activities, or services within the district, to be duly
9 recorded in the municipal clerk's office within ten days after such
10 local law becomes effective. When recorded this local law shall be
11 presumptive evidence of the regularity of the proceedings for the estab-
12 lishment or extension of the district, of the proceedings instituted for
13 the construction of any improvement and of all other actions taken in
14 relation to it.
15 2. Within ten days after the local law becomes effective, the munici-
16 pal clerk shall, in addition to any other filing required by law, cause
17 a copy of the local law or a summary thereof to be published at least
18 once in the official paper or newspaper of general circulation in the
19 municipality.
20 3. This local law shall be final and conclusive unless a proceeding to
21 review is commenced in accordance with this article. Any person
22 aggrieved by any local law adopted pursuant to this article may seek
23 judicial review of the local law in the manner provided by article
24 seventy-eight of the civil practice law and rules, provided the proceed-
25 ing is commenced within thirty days from the date of the publication of
26 the copy or summary of the local law pursuant to subdivision two of this
27 section. No review shall be had unless the petitioner shall give an
28 undertaking approved by the supreme court, or a justice thereof, as to
29 form, amount and sufficiency of sureties, that, in the event of failure
30 to modify the local law he or she will pay to the municipality, all
31 costs and expenses as are incurred by it on account of the proceedings,
32 as shall be determined by the court. In the event that upon this review
33 there shall be any modification by the court of the local law, the court
34 shall direct the modification by judgment which shall be final and
35 conclusive, and the municipal clerk shall cause the judgment to be
36 recorded and filed in the same places and manner as was the local law
37 which was modified.
38 § 453. Amendments to the district plan. 1. At any time after the
39 establishment or extension of a district pursuant to the provisions of
40 this article, the district plan upon which the establishment or exten-
41 sion was based, may, upon the recommendation of the district management
42 association, be amended by the legislative body after compliance with
43 the procedures set forth in this article.
44 2. Amendments to the district plan which provide for changes to the
45 improvements, activities, or services provided under the district plan
46 may be adopted by the district management association and do not require
47 actions by the legislative body.
48 3. Amendments to the district plan which provide for changes to the
49 boundaries of the district or any change in the method of assessment
50 upon which the business assessment is based may be adopted by local law
51 of the legislative body, provided that the legislative body of the muni-
52 cipality shall, after a public hearing, determine that it is in the
53 public interest to authorize such changes to the boundaries of the
54 district or changes to the method of assessment. The legislative body
55 shall give notice of the hearing by publication of a notice on the
56 legislative body's website or in at least one newspaper having general
S. 6186--A 7
1 circulation in the district specifying the time when and the place where
2 the hearing will be held and stating any changes to the boundaries of
3 the district, or any change in the method of assessment upon which the
4 business assessment is based. The notice shall be published once at
5 least ten days prior to the date specified for the hearing.
6 4. Amendments to the district plan which provide for the district to
7 incur indebtedness in order to provide for additional improvements or
8 activities, or which provide an increase only in the amount to be
9 expended annually for improvements, activities, services, maintenance
10 and operation, or which provide for an increase in the total maximum
11 amount to be expended for improvements or activities in the district,
12 may be adopted by local law of the legislative body. Adoption of a local
13 law of the legislative body regarding the amendments as provided in this
14 paragraph requires that the legislative body shall, after a public hear-
15 ing, determine that it is in the public interest to authorize the
16 district to incur indebtedness to provide for additional improvements or
17 activities, or to increase only in the amount to be expended annually,
18 or to increase the maximum total amount to be expended for improvements
19 or activities in the district. Notice of the hearing shall be published
20 and mailed in the manner provided in section four hundred fifty of this
21 article.
22 § 454. Expense of the district. 1. The expense incurred in the
23 construction or operation of any improvement, activities, or provision
24 of additional services in a district pursuant to this article shall be
25 financed in accordance with the district plan upon which the establish-
26 ment or extension of the district was based. Activities or services for
27 which district business owners are assessed pursuant to the plan shall
28 be in addition to or an enhancement of those provided by the munici-
29 pality prior to the establishment of the district. The expense and cost
30 apportioned to benefited businesses in accordance with the plan shall be
31 a business assessment upon each benefited business within the district.
32 2. The business assessment levied upon benefited businesses pursuant
33 to this article shall be imposed as provided in the district plan.
34 3. Any municipality which has established a district pursuant to this
35 article, may, for the purpose of providing funds for making capital
36 improvements, within a district, issue and sell bonds or other municipal
37 obligations as provided in the local finance law and other applicable
38 laws and statutes. Principal and interest payments on these bonds or
39 other municipal obligations may be made in whole or in part from the
40 proceeds of business assessments imposed upon benefited businesses with-
41 in the district.
42 § 455. Expenditure of district funds. The proceeds of any business
43 assessment imposed pursuant to this article shall be remitted to the
44 district management association by the municipality within sixty days
45 following the collection of assessments from assessed businesses. None
46 of the proceeds collected pursuant to this article shall be used for any
47 purposes other than those set forth in the district plan.
48 § 456. District management association. 1. There shall be a district
49 management association for each district established pursuant to the
50 provisions of this article, which, if a non-profit corporation, shall
51 pursuant to the not-for-profit corporation law have one or more classes
52 or membership, voting or non-voting for the purpose of carrying out such
53 activities as may be prescribed in the plan.
54 2. The board of directors of the association may include, but shall
55 not be limited to, representatives of business owners within the
56 district.
S. 6186--A 8
1 3. In addition to such other powers as are conferred on it by law, the
2 district management association may make recommendations to the legisla-
3 tive body with respect to any matter involving or relating to the
4 district.
5 § 457. Dissolution. Any district established or extended pursuant to
6 the provisions of this article, where there is no indebtedness,
7 outstanding and unpaid, incurred to accomplish any of the purposes of
8 the district, may be dissolved by resolution of the legislative body of
9 the municipality, if the legislative body of the municipality finds
10 there has been misappropriation of funds, malfeasance, or a violation of
11 law in connection with the management of the district. It shall provide
12 a notice of a hearing on disestablishment pursuant to section four
13 hundred fifty of this article. Each year on the anniversary of formation
14 of the district there shall be a thirty-day window where petitions of
15 the business owners, or business owner representatives, that shall pay
16 more than fifty percent of the total amount raised by all benefited
17 businesses included in the boundaries of the district may petition to
18 dissolve the district. The legislative body shall request and consider
19 the recommendations of the district management association concerning
20 any proposed dissolution, provided that if the association has not
21 submitted recommendations to the legislative body within ninety days
22 after request therefore, the legislative body shall adopt any such
23 proposed dissolution without considering such recommendations. In the
24 event of dissolution, any remaining revenues, after all outstanding
25 debts are paid, derived from the levy of assessments, or derived from
26 the sale of assets acquired with the revenues, or from bond reserve or
27 construction funds, shall be spent in accordance with the district plan
28 or shall be refunded to the assessed business owners by applying the
29 same method and basis that was used to calculate the district assess-
30 ments that were levied.
31 § 458. Severability. If any provision of this article or the applica-
32 tion thereof to any person or circumstance shall be adjudged invalid by
33 any court of competent jurisdiction, such order or judgment shall be
34 confined in its operation to the controversy in which it was rendered
35 and shall not affect or invalidate the remainder of any provisions of
36 this article or the application of any part thereof to any other person
37 or circumstance and to this end the provisions of this article are here-
38 by declared to be severable.
39 § 2. This act shall take effect immediately.
