Relates to providing district management association members with written notice of meetings

Title of bill

An act to amend the general municipal law, in relation to providing district management association members with written notice of meetings

Purpose or general idea of bill

To ensure that owners of real property located within a business improvement district (BID), who are thus subject to district charges or assessments, have the opportunity to receive notice of the meetings of the BID board of directors, along with copies of the agendas and minutes of such meetings, as well the right to attend non-executive session board meetings of the district management association.

Summary of specific provisions

General Municipal Law § 980-m is amended to add a new subdivision (e) to require district management associations of BIDs give notice to all members of the BID pursuant to the provisions of the Not-For-Profit Law and to require that minutes of meetings are made available upon request of a member.

Justification

Business Improvement Districts (BIDs) have been a successful and important tool in the revitalization of our state's downtown retail and commercial corridors. Real property owners in the BIDs agree to charge themselves an assessment over and above any property tax levied by a municipality or school district for their mutual benefit. BID assessments have been used for a host of improvements such as enhanced security and sanitation services, streetscape beautification, area marketing campaigns and special events.

BIDs are public/private sector partnerships, which under state law are governed by district management associations that are not-for-profit corporations. While a municipality or other governmental entity may appoint members of the district management association's board of directors, Section 980-m of the General Municipal Law specifically states that the board "shall be composed representatives of owners and tenants within the district, provided, however, that not less than a majority of its members shall represent owners." Accordingly, because they are not under the majority control of a municipality or other governmental entity, BIDs are not considered public bodies subject to the state's Open-Meetings Law.

Nonetheless, BID district management associations and their governing boards of directors have broad authority to propose expenditures and spend district charges, often amounting to millions of dollars, on efforts and services designed to restore or promote business activity, further the enjoyment and protection of the public or otherwise promote or enhance the district. District management associations may also approve the private use of public land within the BID. (Sec. 980-m(d)).

Given the quasi-public nature of the activities of the district management association, property owners within the BID that are subject to district assessments should be entitled to reasonable notice of board meetings, copies of the agendas and minutes of those meetings, as well as the opportunity to attend non-executive sessions of the board of director's meetings. This law will help to ensure that the activities of the BID are performed in an open manner and will improve accountability of the district management association to property owners within the BID. PRIOR LEGISLATIVE HISTORY :

New bill.

Fiscal implications

None to the State.

Effective date

This act shall take effect on the first November next succeeding the date on which it shall have become law.