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Senate committee advances bill to authorize tourism improvement districts after debate on accountability
Summary
The Senate Commerce, Economic Development and Small Business Committee voted to report S6012 to the local governments committee after lawmakers debated whether tourism improvement districts would duplicate bed taxes and how businesses would be assessed.
The Senate Standing Committee on Commerce, Economic Development and Small Business on an unspecified date voted to report S6012 — a measure authorizing municipalities to establish tourism improvement districts — to the local governments committee after lawmakers questioned how the districts would be formed and governed.
The bill, sponsored by Senator Baskin, would allow groups of tourism-related businesses to convene and seek municipal authorization to levy assessments on lodging and other tourism businesses, with the revenues reinvested into tourism promotion and local improvements. Committee members pressed sponsors on how the proposal differs from existing hotel occupancy ("bed") taxes and conventional business improvement districts.
Supporters described the districts as business-initiated and intended to let lodging and tourism businesses pool resources for marketing and neighborhood-level improvements. "This is different because it's initiated at the request of the businesses themselves," said Mr. O'Brien, who explained how the business-led structure and reinvestment would work. Committee members sought clarity on membership and accountability, noting that, as drafted, assessments could apply to all businesses in a district whether or not they joined the organizing group.
Senators and commenters raised examples and concerns about overlapping organizations. One committee member cited existing regional tourism groups such as Discover Long Island and local chambers and asked whether those organizations could already perform the proposed functions. Mr. O'Brien and others responded that a municipality must opt in and pass a resolution before a tourism improvement district could take effect and that a District Management Association would handle the district's day-to-day operations once formed.
After extended questions about scope and accountability, the committee moved and seconded the bill and voted to report S6012 to the local governments committee for further consideration. The committee record shows the bill was reported to local governments.
