NY State Senate Bill 2009-S3206

Archive: Last Bill Status - In Senate Committee Finance Committee

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to finance
Mar 12, 2009	referred to finance

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2009-S3206 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: State Finance Law
Laws Affected:: Amd §99-h, add §99-t, St Fin L; add §164-a, amd §167, Ec Dev L

2009-S3206 (ACTIVE) - Summary

Creates the tourism economic development fund, with revenue to come from sales and use taxes; dedicates its revenue to tourism promotion, and provides for supplemental tourism matching grants to be made by the department of economic development; also provides for a report on tourism promotion activities supported by the fund.

2009-S3206 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3206

 TITLE OF BILL :
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

 PURPOSE :
This bill creates the Tourism Economic Development Fund, which would
be funded by revenues generated from the negotiated state share of
electronic gaming profits from casino gambling pursuant to the
Tribal-State Revenue Account. The bill creates a funding formula, as
well as a new program, which provides for supplemental tourism grants.
The bill seeks to increase the amount of money available for tourism
related marketing and promotion programs both run by the state
Department of Economic Development through the "I Love NY" program, as
well as those programs administrated by Tourism Promotion Agencies
(TPAs) state-wide.

 SUMMARY OF PROVISIONS :
Section 1 of the bill provides the legislative intent. Section 2 of
the bill provides for thirty percent of the State share, pursuant to
the State Finance Law, of the negotiated percentage of the net drop
from electronic gaming devices be made available for deposit into the
Tourism Economic Development Fund.  Section 3 of the bill amends the

finance law creating the Tourism Economic Development Fund. Of such
fund, not less than thirty-five percent shall be made available for
payment to tourism promotion agencies as part of the Tourism Matching
Funds program. Further, of that thirty-five percent, not less than
thirty percent shall be made available for the payment of Supplemental
Tourism Grants.  Additionally, when more than four casinos become
operational, the percentage required of the aggregate amount to be
deposited into the Tourism Economic Development Fund decreases by five
percent per online casino, provided that the percentage of the
aggregate shall not decrease below ten percent. Section 4 of the bill
creates the Supplemental Tourism Grants program. Moneys required to be
allocated pursuant to Section 2 shall be allocated on an equal
percentage basis pursuant to recommendations of the Governor,
Temporary President of the Senate and Speaker of the Assembly. This
section provides for a minimum award of $10,000 to be made available
per county as represented by a tourism promotion agency. Section 5 of
the bill amends the economic development law to require that the
Commissioner include with the five year, annually re-evaluated
marketing and promotion master plan, a report to the Legislature of
the activities and programs supported by the Tourism Economic
Development Fund.  Section 6 of the bill makes the act effective
immediately.

 JUSTIFICATION :
New York State annually spends less than $17 million on tourism
marketing. This year, the Governor has proposed to spend only $11.015
million on the tourism marketing program. According to a 2000-2001
report, New York State ranks 8th nationally for spending on tourism.
Three states including Illinois, Hawaii and Florida outpace New York
dramatically by spending some $61.1 million, $61 million and $59.7
million annually. Tourism is the second leading industry in New York
State with direct consumer spending on tourism related activities
accounting for over $21 billion annually. Tax receipts for this
industry account for over $6 billion a year in revenue to state and
local governments, and travel related industries employ 700,000 people
statewide. Tourism has become a vital component of economic growth in
New York, and increasingly so in the rural economies of Upstate. In
addition to the direct impact the tourism industry has on our state,
recreational activities and the arts are essential in developing a
rich cultural environment to attract our emerging workforce. In the
1980s New York launched the "I Love NY" marketing campaign and
revolutionized the way state government promoted tourism for the
purposes of economic development. However, while the "I Love NY"
slogan remains world famous, our state's investment in tourism
promotion has steadily declined since the mid-1990's and New York
falls far short of states like Florida, Illinois and Pennsylvania when
it comes to marketing to tourists around the country and world. It is
widely agreed upon that investing in tourism is an extremely
successful endeavor, given the multitude of ways tourists spend money
when they visit a destination.  As tourism statistics point out,
tourism spending generates a 3:1 revenue return for every dollar spent
on tourism marketing. During fiscally restrictive times, the
inclination often is to cut tourism spending. However, considering the
vast amount of direct spending, and therefore state tax revenue
generated by tourism, it makes economic sense to provide increased
support for the tourism industry. This legislation would increase the
amount of funding available for tourism-related marketing and
promotion programs and would be funded by a portion of the proceeds
collected from the increased gaming activities within the state.
Reinvesting some of the funds spent by those tourists enjoying our
casinos is an excellent way to invigorate our tourism industry and
state economy. The bill provides a vital component that the tourism
industry has been seeking for years; a stable source of funding.
Additionally, the bill encourages some of the funds be used to promote
those casinos, which are the revenue source.

 LEGISLATIVE HISTORY :
S.2306 of 2007-2008; Referred to Senate Finance Committee
S.3213-B of 2005-2006; Referred to Senate Finance Committee.
S.7573/A.11657 of 2003-2004; Referred to Senate Rules Committee

 FISCAL IMPLICATIONS :
Positive fiscal implication for the State as the burden for funding
tourism marketing will be shifted from the General Fund to this new
revenue source, and that increased revenue will be generated both
Statewide and locally based on increased tourism.

 EFFECTIVE DATE :
Immediately.

2009-S3206 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3206

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 12, 2009
                               ___________

Introduced by Sens. MAZIARZ, BONACIC, DeFRANCISCO, GRIFFO, LITTLE, MORA-
  HAN,  OPPENHEIMER, RANZENHOFER, SERRANO, SEWARD, VOLKER, YOUNG -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee on Finance

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)
reimbursements or payments to municipal  governments  that  host  tribal

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06139-01-9

S. 3206                             2

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  NINETY-
NINE-T  OF  THIS ARTICLE, AND MADE 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,  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 99-t  to
read as follows:
  S  99-T.  TOURISM ECONOMIC DEVELOPMENT FUND. 1. THERE IS HEREBY ESTAB-
LISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSION-
ER 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
DECREASES SHALL OCCUR ONCE THE AGGREGATE PERCENTAGE REQUIRED FOR DEPOSIT

S. 3206                             3

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-NINE-T  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-
NINE-T 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-NINE-T 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
THEIR RECOGNIZED ADVERTISING PROGRAMS. BEFORE ANY  SUCH  GRANTS  MAY  BE

S. 3206                             4

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. SUCH 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-NINE-T 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
section and shall be deemed to expire therewith.

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Senate Bill S3206

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Archive: Last Bill Status - In Senate Committee Finance Committee

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2009-S3206 (ACTIVE) - Details

2009-S3206 (ACTIVE) - Summary

2009-S3206 (ACTIVE) - Sponsor Memo

2009-S3206 (ACTIVE) - Bill Text download pdf

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Sponsored By

Archive: Last Bill Status - In Senate Committee Finance Committee

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co-Sponsors

2009-S3206 (ACTIVE) - Details

2009-S3206 (ACTIVE) - Summary

2009-S3206 (ACTIVE) - Sponsor Memo

2009-S3206 (ACTIVE) - Bill Text download pdf

Comments