S T A T E O F N E W Y O R K
________________________________________________________________________
4828
2009-2010 Regular Sessions
I N A S S E M B L Y
February 6, 2009
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Introduced by M. of A. MORELLE, MARKEY, WEISENBERG, DelMONTE, GIANARIS,
WEPRIN, McENENY, DESTITO, PAULIN, PHEFFER, KOON, MAGNARELLI, LATIMER
-- Multi-Sponsored by -- M. of A. BING, CANESTRARI, ENGLEBRIGHT,
FITZPATRICK, GUNTHER, LUPARDO, MILLER -- read once and referred to the
Committee on Tourism, Arts and Sports Development
AN ACT to amend the state finance law, in relation to the tribal-state
compact revenue account; and to amend the state finance law and the
economic development law, in relation to creating the tourism economic
development fund and providing for supplemental tourism grants
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative intent. The legislature hereby recognizes the
importance of tourism to the New York state economy. As the state's
second largest industry, tourism employs hundreds of thousands of New
Yorkers and generates billions in economic activity. Therefore, it is
the intent of the legislature to facilitate the growth of this industry
by increasing the funding source available for tourism promotion. The
legislature finds moneys from the casino gaming compacts to be an
adequate and appropriate source for such funding. Additionally, the
legislature finds that the creation of a supplemental local tourism
grants program will be a suitable measure to effectuate a more equitable
disbursement of tourism funding throughout the state. The legislature
further finds that special consideration should be given to promoting
New York state casinos which provide revenue to the state through gaming
compacts. This promotion will further enhance the fund from which tour-
ism promotion dollars are derived.
S 2. Subdivision 3 of section 99-h of the state finance law, as
amended by chapter 747 of the laws of 2006, is amended to read as
follows:
3. Moneys of the account, following appropriation by the legislature,
shall be available for purposes including but not limited to: (a)
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06139-02-9
A. 4828 2
reimbursements or payments to municipal governments that host tribal
casinos pursuant to a tribal-state compact for costs incurred in
connection with services provided to such casinos or arising as a result
thereof, for economic development opportunities and job expansion
programs authorized by the executive law; provided, however, that for
any gaming facility located in the county of Erie, the municipal govern-
ments hosting the facility shall collectively receive a minimum of twen-
ty-five percent of the negotiated percentage of the net drop from elec-
tronic gaming devices the state receives pursuant to the compact, and
provided further that for any gaming facility located in the city of
Niagara Falls, county of Niagara a minimum of twenty-five percent of the
negotiated percentage of the net drop from electronic gaming devices the
state receives pursuant to the compact shall be distributed in accord-
ance with subdivision four of this section, and provided further that
for any gaming facility located in the county or counties of Cattarau-
gus, Chautauqua or Allegany, the municipal governments of the state
hosting the facility shall collectively receive a minimum of twenty-five
percent of the negotiated percentage of the net drop from electronic
gaming devices the state receives pursuant to the compact; and provided
further that pursuant to chapter five hundred ninety of the laws of two
thousand four, a minimum of twenty-five percent of the revenues received
by the state pursuant to the state's compact with the St. Regis Mohawk
tribe shall be made available to the counties of Franklin and St.
Lawrence, and affected towns in such counties. Each such county and its
affected towns shall receive fifty percent of the moneys made available
by the state; [and] (b) TOURISM PROMOTION, AS PROVIDED IN SECTION NINE-
TY-SEVEN-JJJJ OF THIS ARTICLE, AND MADE AVAILABLE FOR APPROPRIATION AND
ALLOCATION TO THE DEPARTMENT OF ECONOMIC DEVELOPMENT FOR THE PURPOSE OF
FUNDING THE PROMOTION, ATTRACTION, STIMULATION, DEVELOPMENT, AND EXPAN-
SION OF TOURIST TRAVEL, RESORT, VACATION, CULTURAL, AND CONVENTION
ACTIVITIES AUTHORIZED UNDER THE ECONOMIC DEVELOPMENT LAW; PROVIDED,
FURTHER, THAT NOT LESS THAN THIRTY-FIVE PERCENT OF SUCH FUNDS SHALL BE
AVAILABLE FOR THE PAYMENT OF MATCHING FUNDS TO TOURIST PROMOTION AGEN-
CIES AS PROVIDED FOR BY THE ECONOMIC DEVELOPMENT LAW; AND (C) support
and services of treatment programs for persons suffering from gambling
addictions. Moneys not appropriated for such purposes shall be trans-
ferred to the general fund for the support of government during the
fiscal year in which they are received.
S 3. The state finance law is amended by adding a new section 97-jjjj
to read as follows:
S 97-JJJJ. TOURISM ECONOMIC DEVELOPMENT FUND. 1. THERE IS HEREBY
ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE
COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE
"TOURISM ECONOMIC DEVELOPMENT FUND".
2. SUCH FUND SHALL CONSIST OF: (A) AN AMOUNT EQUAL TO NOT LESS THAN
THIRTY PERCENT OF THE NEGOTIATED PERCENTAGE OF THE NET DROP FROM ELEC-
TRONIC GAMING DEVICES THE STATE RECEIVES PURSUANT TO PART B OF CHAPTER
THREE HUNDRED EIGHTY-THREE OF THE LAWS OF TWO THOUSAND ONE, PROVIDED,
HOWEVER, THAT IN THE EVENT THAT MORE THAN FOUR CASINOS BECOME OPERA-
TIONAL PURSUANT TO PART B OF CHAPTER THREE HUNDRED EIGHTY-THREE OF THE
LAWS OF TWO THOUSAND ONE, AND ANY TRIBAL-STATE COMPACT, THE AGGREGATE
PERCENTAGE OF THE NEGOTIATED PERCENTAGE OF THE NET DROP FROM ELECTRONIC
GAMING DEVICES REQUIRED TO BE DEPOSITED INTO THE TOURISM ECONOMIC DEVEL-
OPMENT FUND PURSUANT TO THIS SECTION SHALL DECREASE BY FIVE PERCENT AS
EACH ADDITIONAL CASINO BECOMES OPERATIONAL AND MAKES NEW DEPOSITS INTO
THE TRIBAL-STATE COMPACT REVENUE ACCOUNT PROVIDED FURTHER THAT NO SUCH
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DECREASES SHALL OCCUR ONCE THE AGGREGATE PERCENTAGE REQUIRED FOR DEPOSIT
REACHES TEN PERCENT; (B) ALL MONEYS APPROPRIATED FOR THE PURPOSE OF SUCH
FUND AND ALL MONEYS TRANSFERRED TO SUCH FUND PURSUANT TO LAW; AND (C)
ANY INTEREST EARNED BY THE INVESTMENT OF MONEYS IN SUCH FUND, WHICH
SHALL BE ADDED TO SUCH FUND.
3. REVENUES IN THE TOURISM ECONOMIC DEVELOPMENT FUND SHALL BE KEPT
SEPARATE AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTO-
DY OF THE COMPTROLLER. ALL DEPOSITS OF SUCH REVENUES SHALL, IF REQUIRED
BY THE COMPTROLLER, BE SECURED BY OBLIGATIONS OF THE UNITED STATES OR
THE STATE HAVING A MARKET VALUE EQUAL AT ALL TIMES TO THE AMOUNT OF SUCH
DEPOSITS. ALL BANKS AND TRUST COMPANIES ARE AUTHORIZED TO GIVE SECURITY
FOR SUCH DEPOSITS. ANY SUCH REVENUES IN SUCH FUND MAY, UPON THE
DISCRETION OF THE COMPTROLLER, BE INVESTED IN OBLIGATIONS IN WHICH THE
COMPTROLLER IS AUTHORIZED TO INVEST PURSUANT TO SECTION NINETY-EIGHT-A
OF THIS ARTICLE.
4. MONEYS OF SUCH FUND SHALL BE AVAILABLE FOR APPROPRIATION AND ALLO-
CATION TO THE DEPARTMENT OF ECONOMIC DEVELOPMENT FOR THE PURPOSE OF
FUNDING THE PROMOTION, ATTRACTION, STIMULATION, DEVELOPMENT, AND EXPAN-
SION OF TOURIST TRAVEL, RESORT, VACATION, CULTURE, AND CONVENTION ACTIV-
ITIES WITHIN THE STATE AND ITS REGIONS PURSUANT TO PROGRAMS AND ACTIV-
ITIES AUTHORIZED UNDER THE ECONOMIC DEVELOPMENT LAW.
5. (A) WITH RESPECT TO THE MONIES ANNUALLY DEDICATED IN THE TOURISM
ECONOMIC DEVELOPMENT FUND, NOT LESS THAN THIRTY-FIVE PERCENT SHALL BE
MADE AVAILABLE FOR THE PAYMENT OF MATCHING FUNDS TO TOURIST PROMOTION
AGENCIES AS PROVIDED FOR BY THE ECONOMIC DEVELOPMENT LAW.
(B) OF THE MONEYS MADE AVAILABLE FOR THE PAYMENT OF MATCHING FUNDS BY
PARAGRAPH (A) OF THIS SUBDIVISION NOT LESS THAN THIRTY PERCENT SHALL BE
MADE AVAILABLE FOR THE PAYMENT OF SUPPLEMENTAL TOURISM GRANTS AS
PROVIDED BY SECTION ONE HUNDRED SIXTY-FOUR-A OF THE ECONOMIC DEVELOPMENT
LAW.
S 4. The economic development law is amended by adding a new section
164-a to read as follows:
S 164-A. SUPPLEMENTAL TOURISM GRANTS. (A) THE COMMISSIONER SHALL,
WITHIN THE AMOUNT APPROPRIATED PURSUANT TO SUBDIVISION FIVE OF SECTION
NINETY-SEVEN-JJJJ OF THE STATE FINANCE LAW, ALSO AWARD TO TOURIST
PROMOTION AGENCIES RECEIVING SUCH MATCHING FUNDS A SUPPLEMENTAL TOURISM
GRANT. SUCH GRANT SHALL BE DISTRIBUTED BY THE COMMISSIONER IN A MANNER
THAT ALLOWS FOR AN EQUAL PERCENTAGE OF THE AGGREGATE TO BE ALLOCATED
UPON THE RECOMMENDATION OF THE GOVERNOR, TEMPORARY PRESIDENT OF THE
SENATE, AND SPEAKER OF THE ASSEMBLY RESPECTIVELY.
(B) OF ANY MONEY AVAILABLE TO A TOURIST PROMOTION AGENCY WHICH HAS
BEEN DESIGNATED TO REPRESENT A COUNTY WHOLLY WITHIN A CITY, NOT LESS
THAN FIFTY PERCENT OF THE TOTAL AMOUNT APPROPRIATED SHALL BE AVAILABLE
TO SUCH TOURIST PROMOTION AGENCY FOR DISCRETIONARY USE FOR TOURISM
PROMOTION PURPOSES, AS SPECIFIED IN SUBDIVISION FOUR OF SECTION NINETY-
SEVEN-JJJJ OF THE STATE FINANCE LAW. OF THE REMAINING FIFTY PERCENT,
SUCH MONEY SHALL BE USED FOR TOURISM PROMOTION PURPOSES, AS SPECIFIED IN
SUBDIVISION FOUR OF SECTION NINETY-SEVEN-JJJJ OF THE STATE FINANCE LAW,
ON A PER CAPITA BASIS IN A MANNER THAT AWARDS A TOURIST PROMOTION AGENCY
A SHARE OF THE TOTAL AMOUNT APPROPRIATED WHICH IS PROPORTIONAL TO THAT
OF THE POPULATION, BASED UPON THE MOST CURRENT FEDERAL DECENNIAL OR
SPECIAL CENSUS, RESIDING IN THE COUNTY OR COUNTIES REPRESENTED BY THE
TOURIST PROMOTION AGENCY RELATIVE TO THE POPULATION OF THE ENTIRE STATE.
(C) THE COMMISSIONER IS HEREBY AUTHORIZED TO SET REASONABLE DEADLINES
FOR THE SUBMISSION OF APPLICATIONS FOR EACH FISCAL YEAR COVERED BY
APPROPRIATIONS IN ORDER TO ASSIST SUCH AGENCIES IN THE FINANCING OF
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THEIR RECOGNIZED ADVERTISING PROGRAMS. BEFORE ANY SUCH GRANTS MAY BE
EXPENDED, THE TOURIST PROMOTION AGENCY SHALL HAVE MADE APPLICATION TO
THE DEPARTMENT FOR SUCH GRANTS, AND SHALL HAVE THEREIN SET FORTH THE
SCHEDULE, BUDGET, SCOPE, AND THEME OF THE PROPOSED ADVERTISING PROGRAM
TO BE UNDERTAKEN FOR THE PURPOSE OF ENCOURAGING AND STIMULATING TOURIST
TRAVEL, RESORT, VACATION, CULTURE AND CONVENTION ACTIVITIES IN THE COUN-
TY OR COUNTIES WITHIN ITS AREA. SAID APPLICATION SHALL FURTHER STATE,
UNDER OATH OR AFFIRMATION, WITH EVIDENCE THEREOF SATISFACTORY TO THE
DEPARTMENT, THAT ALL ADVERTISING PURCHASED WITH GRANTS APPROPRIATED
UNDER THIS ARTICLE SHALL FOLLOW CENTRAL CONCEPTUAL THEMES USED BY THE
DEPARTMENT IN ITS ADVERTISING FOR STATE TOURISM PROMOTION INCLUDING
USING ANY LOGO-TYPE OR SIMILAR ADVERTISING CONSTRUCT IN USE BY THE
DEPARTMENT.
(D) AFTER REVIEW OF A SUBMITTED APPLICATION, IF SATISFIED THAT THE
PROGRAM OF THE TOURIST PROMOTION AGENCY APPEARS TO BE IN ACCORD WITH THE
PURPOSES OF THIS ARTICLE, THE COMMISSIONER SHALL AUTHORIZE IN WRITING
THE PAYMENT OF A SUPPLEMENTAL TOURISM GRANT APPROPRIATED PURSUANT TO
THIS ARTICLE TO SUCH TOURIST PROMOTION AGENCY EQUAL TO FUNDS ALLOCATED
BY SUCH AGENCY TO THE PROGRAM DESCRIBED IN ITS APPLICATION. PROVIDED
THAT SUFFICIENT FUNDS ARE APPROPRIATED, NO SUCH GRANT SHALL BE LESS THAN
TEN THOUSAND DOLLARS PER COUNTY REPRESENTED BY SUCH TOURIST PROMOTION
AGENCY. NO SUCH MINIMUM GRANT SHALL ALLOW THE AWARDING OF SUPPLEMENTAL
MATCHING GRANTS FOR APPLICATIONS OTHER THAN THOSE MEETING THE GUIDELINES
ESTABLISHED BY THE DEPARTMENT.
(E) NO SUPPLEMENTAL TOURISM GRANTS AWARDED TO A TOURIST PROMOTION
AGENCY PURSUANT TO THIS SECTION MAY BE USED FOR TRAVEL, FOOD, LODGING,
ENTERTAINMENT, TRANSPORTATION OR EXPENSES UNRELATED TO THE APPROVED
ADVERTISING PROGRAM.
(F) APPLICATIONS REQUIRED BY THIS SECTION SHALL BE SUBMITTED ONLY UPON
FORMS PROVIDED BY THE DEPARTMENT. SUCH FORMS SHALL CONTAIN A STATEMENT
OF THE GUIDELINES WHICH THE COMMISSIONER SHALL USE TO EVALUATE THE
APPLICATIONS. SUCH GUIDELINES SHALL BE ESTABLISHED BY THE COMMISSIONER
ON AN ANNUAL BASIS AND, ONCE ESTABLISHED, SHALL NOT BE CHANGED UNTIL THE
FOLLOWING YEAR.
(G) NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED AS TO PROHIB-
IT A TOURIST PROMOTION AGENCY FROM ESTABLISHING A LOCAL TOURISM
PROMOTION MATCHING FUNDS PROGRAM RELATING TO ANY SUPPLEMENTAL TOURISM
GRANT AWARD, FOR THE PURPOSE OF TOURISM PROMOTION, AS SPECIFIED IN
SUBDIVISION FOUR OF SECTION NINETY-SEVEN-JJJJ OF THE STATE FINANCE LAW,
OF A COUNTY REPRESENTED BY SUCH TOURIST PROMOTION AGENCY.
S 5. This act shall take effect immediately; provided, however, that
the amendments to subdivision 3 of section 99-h of the state finance law
made by section two of this act shall not affect the expiration of such
subdivision and shall be deemed to expire therewith.