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History
- Referred to finance
- Referred to finance
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
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.
Read the full memo (928 words)
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.