Establishes the "tourism economic development fund" to be funded with revenue from the licensing of the "I Love NY" brand

3 Co-sponsors

• Timothy M. Kennedy
• Thomas F. O'Mara
• José M. Serrano

BILL NUMBER:S6663

Title of bill

An act to amend the economic development law and the state finance law, in relation to resources of the "I Love NY" brand

Purpose

To ensure that any revenue generated from the use of the "I LOVE NY" brand shall be deposited in the Tourism Economic Development Fund, and to be made exclusively available to fund the promotion of tourism.

Summary of provisions

Section 1- Amends subdivision 3 of section 153 of the economic development law to provide that any revenue from licensing or leasing of the "I LOVE NY" brand shall be deposited in the Tourism Economic Development Fund as defined in section 99-u of the state finance law, and be made available for appropriation to the department of economic development for the purpose of funding the promotion of tourism.

Section 2- Amends the state finance law by adding a new section 99-u to provide:

- For the creation of a Tourism economic development fund; such fund shall consist of: (a) all moneys derived from the licensing and leasing of the "I LOVE NY" brand; (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.

- Revenues in the Tourism Economic Development fund shall be kept separate and shall not be commingled with any other moneys in the custody of the comptroller.

- Moneys of the fund shall be available for appropriation and allocation to the department of economic development for the purpose of funding the promotion of tourism within the state and its regions pursuant to programs and activities authorized under the economic development law.

Section 3- Contains the effective date.

Justification

The tourism industry is a part of each region of the State, providing sustained employment and revenue. Tourism is responsible for 7.9% of the state's employment, demonstrating its integral place in the economies across the entire State. To that end, in 2010, tourism employment grew 2.1 %, generating 4.4% in personal income growth derived from visitors to the State.

The "I LOVE NY" program provides statewide marketing strategies establishing partnerships and implementing programs to encourage visitation with the logo itself being a resource for the State, as it generates revenue from licensing to commercial entities. Such revenues when dedicated to tourism as part of a cohesive tourism marketing strategy will increase state revenue and further set NY apart as a tourist destination, as well as promote and maintain vital jobs within the state in these difficult economic times.

Marketing is what will bring the visitors back and it is incumbent upon New York to ensure that the tourism industry can continue to generate critical revenues. This bill will help ensure that the leisure traveler is aware of the myriad travel destinations across the state- from wineries to amusement parks, historic sites to sports arenas- that are all within a few hours' drive for millions of people. As seen in 2010, tourism to the state generate 5.6$ billion for state and local governments from visitors spending nearly $50 billion.

Legislative history

New bill.

Fiscal implications

None to the State.

Effective date

This act shall take effect immediately.