Relates to the effectiveness of a chapter authorizing sweepstakes with respect to subscriptions to The Conservationist

1 Multi-sponsor

• Robert Sweeney

BILL NUMBER:A8713

Title of bill

An act to amend chapter 122 of the laws of 2000, amend- ing the environmental conservation law relating to authorizing sweeps- takes with respect to subscriptions to "The Conservationist", in relation to the effectiveness thereof

Purpose of the bill: The purpose of this bill is to extend the sunset provision related to the authority of the Department of Environmental Conservation (DEC) to conduct sweepstakes to increase the number of The Conservationist (Conservationist) magazine subscribers.

Summary of provisions: Section 1 of this bill amends Chapter 122 of the Laws of 2000 to extend until August 1, 2012 the expiration date of Envi- ronmental Conservation Law (ECL) §3-0301(2)(y), which authorizes DEC to engage in sweepstakes or contests intended to stabilize, improve or otherwise increase the subscriber base of the Conservationist magazine.

Section 2 of this bill provides for an immediate effective date.

Existing law: DEC currently has authority to conduct sweepstakes under ECL §3-0301(2)(y); however, pursuant to Chapter 122 of the Laws of 2000, this authority expires on August 1, 2009.

Legislative history: DEC was originally granted authority to engage in sweepstakes to increase the subscribers of the Conservationist magazine in 1995 (Chapter 548 of the Laws of 1995). This authority expired on August 1, 1999. Chapter 122 of the Laws of 2000 granted this authority until August 1, 2003. Chapter 304 of the Laws of 2003 and Chapter 269 of the Laws of 2006 extended this authority until August 1, 2006 and August 1, 2009, respectively.

Statement in support: Promotion and marketing is an integral component of the magazine industry. In the absence of efforts to replace lost subscribers, a magazine would cease to exist in a matter of years. Although the renewal rate for the Conservationist has been the envy of many other state agencies that sponsor similar publications, DEC must replace approximately 19,000 subscribers each year to maintain the maga- zine's current subscriber base. It makes good business sense to get the highest return rates possible from recurring-marketing efforts. Conduct- ing sweepstakes, under the authority of this legislation, would allow DEC to continue to achieve high return rates through its marketing efforts.

DEC conducted sweepstakes from February 1996 through May 1997 and during the period from March 2006 through July 2006, which generated increased renewal rates. Through efforts at outdoor shows and the New York State Fair, DEC has demonstrated that offering sweepstakes/prize drawings increases the response rate for new subscribers as well as for renewing subscribers. Although it is hard to directly attribute any specific promotional performance to sweepstakes alone, the overall renewal rate

from all sources in 1996 increased by 6.0% over 1995 and in 2006 the renewal rate increased by 7.7% over 2005.

DEC's marketing consultant, with more than 30 years in the business, has conducted marketing research which demonstrated that no other single marketing technique works as well as sweepstakes to increase renewal and new subscriber response rates. Therefore, DEC wants to ensure that it will continue to have the authority to conduct sweepstakes with respect to the Conservationist.

Budget implications: This bill will have no negative fiscal impacts to the State, and sweepstakes activities can be addressed with existing staff resources. DEC anticipates that holding a sweepstakes may result in approximately 10,000 new subscribers to the Conservationist, and a concomitant increase in revenue of $100,000 to the Conservationist maga- zine SRO. In addition, sweepstakes may increase the renewal rates of current subscribers.

Effective date: This bill takes effect upon enactment.