S T A T E   O F   N E W   Y O R K
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                                 3847--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 7, 2011
                               ___________

Introduced  by Sen. McDONALD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Cultural Affairs, Tourism,
  Parks and Recreation --  recommitted  to  the  Committee  on  Cultural
  Affairs,  Tourism, Parks and Recreation in accordance with Senate Rule
  6, sec. 8 -- committee discharged, bill amended, ordered reprinted  as
  amended and recommitted to said committee

AN ACT to amend the arts and cultural affairs law, the real property tax
  law  and  the  tax law, in relation to the establishment of arts-based
  districts; and providing for the repeal of such provisions upon  expi-
  ration thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings. The  legislature  hereby  finds  that
artists  and  related  creative professions have high community value as
cultural, social and economic assets. When they live and work  in  iden-
tifiable districts the opportunity exists for capitalizing for the bene-
fit  of  residents  of  the  district and the community at large through
enhancing quality of life and  supporting  elements  of  a  tourism  and
artist economy.
  The legislature further finds that the cities of New York state have a
long  tradition  of  artistic creative activities and major artistic and
cultural institutions including being the home to some  of  the  world's
major art museums and performing arts venues.
  The  legislature  further  finds that collaboration between cities and
the state offers the opportunity  to  establish  viable  and  productive
arts-based districts capable of becoming a model for cities and villages
throughout the state.
  Therefore,  the  legislature  hereby  provides  for  an optional pilot
program for the cities of Albany, Buffalo, Rochester, Syracuse and  Troy
to establish arts-based districts in their cities.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01095-04-2

              

S. 3847--A                          2

  S 2. Article 16 and section 16.01 of the arts and cultural affairs law
are  redesignated  article 17 and section 17.01, and a new article 16 is
added to read as follows:
                                ARTICLE 16
                          ARTS-BASED DISTRICTS
SECTION 16.01. DEFINITIONS.
        16.03. ARTS-BASED DISTRICTS ADVISORY BOARD.
        16.05. PILOT ARTS-BASED DISTRICTS.
        16.07. STATE ASSISTANCE AND COOPERATION.
  S 16.01. DEFINITIONS. AS USED IN THIS ARTICLE:
  1.  "ARTISTIC WORK" MEANS AN ORIGINAL AND CREATIVE WORK, WHETHER WRIT-
TEN, COMPOSED OR EXECUTED, THAT FALLS UNDER ONE OR MORE OF THE FOLLOWING
CATEGORIES:
  A. A BOOK OR OTHER WRITING;
  B. A PLAY OR PERFORMANCE OF A PLAY;
  C. A MUSICAL COMPOSITION OR THE PERFORMANCE OF A MUSICAL COMPOSITION;
  D. A PAINTING OR OTHER PICTURE;
  E. A PERFORMANCE PIECE;
  F. A SCULPTURE;
  G. TRADITIONAL OR FINE CRAFTS;
  H. THE CREATION OF A FILM OR THE ACTING WITHIN A FILM;
  I. THE CREATION OF A DANCE OR THE PERFORMANCE OF A DANCE; OR
  J. THE CREATION OF ELECTRONIC ARTS.
  2. "ARTS AND ENTERTAINMENT ENTERPRISE" MEANS A FOR-PROFIT OR  NOT-FOR-
PROFIT ENTITY DEDICATED TO VISUAL OR PERFORMING ARTS.
  3.  "QUALIFYING  RESIDENT ARTISTS" MEANS AN INDIVIDUAL WHO: A. OWNS OR
RENTS RESIDENTIAL REAL PROPERTY IN THE DISTRICT; AND
  B. DERIVES INCOME FROM THE SALE OR PERFORMANCE WITHIN THE DISTRICT  OF
ANY  ARTISTIC  WORK  THAT  THE  INDIVIDUAL WROTE, COMPOSED, OR EXECUTED,
EITHER SOLELY OR WITH ONE OR MORE OTHER INDIVIDUALS.
  4. "DISTRICT" OR "ARTS-BASED DISTRICT" SHALL MEAN  A  DISTRICT  ESTAB-
LISHED BY LOCAL LAW OR ORDINANCE PURSUANT TO SECTION 16.05 OF THIS ARTI-
CLE.
  5.  "BOARD"  MEANS  THE  STATE  ARTS-BASED DISTRICTS ADVISORY BOARD AS
ESTABLISHED IN SECTION 16.03 OF THIS ARTICLE.
  S 16.03. ARTS-BASED DISTRICTS  ADVISORY  BOARD.  1.  THERE  IS  HEREBY
ESTABLISHED  A  STATE  ARTS-BASED DISTRICTS ADVISORY BOARD TO ADVISE THE
GOVERNOR AND STATE AGENCIES ON THE PILOT PROGRAM ESTABLISHED PURSUANT TO
THIS ARTICLE. THE BOARD SHALL CONSIST OF THE CHIEF EXECUTIVE OFFICER  OF
THE  URBAN  DEVELOPMENT  CORPORATION,  THE  COMMISSIONER  OF HOUSING AND
COMMUNITY RENEWAL, THE DIRECTOR OF THE NEW YORK  STATE  COUNCIL  ON  THE
ARTS,  THE  SECRETARY OF STATE, OR THEIR DESIGNATED REPRESENTATIVES, AND
THREE PRIVATE CITIZENS REPRESENTATIVE  OF  INTERESTS  RELATING  TO  SUCH
PILOT  PROGRAM  AND APPOINTED BY THE GOVERNOR. THE PRIVATE MEMBERS SHALL
HOLD OFFICE AT THE  PLEASURE  OF  THE  GOVERNOR.  STATE  AGENCIES  SHALL
PROVIDE STAFF SERVICES AS ARE NECESSARY AND APPROPRIATE FOR THE BOARD TO
CARRY OUT ITS DUTIES UNDER THIS ARTICLE.
  2.  THE BOARD SHALL MEET AT LEAST THREE TIMES A YEAR AND SHALL FACILI-
TATE AS PRACTICABLE THE IMPLEMENTATION  OF  PILOT  PROJECTS  UNDER  THIS
ARTICLE.    THE  BOARD  SHALL  REVIEW THE PLANS FOR ARTS-BASED DISTRICTS
PURSUANT TO SECTION 16.05 OF THIS ARTICLE  AND  SHALL  FORMALLY  APPROVE
EACH  PLAN  THAT  MEETS  THE  PURPOSES OF THIS ARTICLE. IN ADDITION, THE
BOARD SHALL REVIEW AND RESPOND TO RECOMMENDATIONS AND COMMENTS FROM  THE
PILOT  COMMUNITIES ON THEIR NEEDS FOR SUPPORT IN IMPLEMENTING THIS ARTI-
CLE.

S. 3847--A                          3

  3. DURING THE FOURTH YEAR NEXT SUCCEEDING THE EFFECTIVE DATE  OF  THIS
ARTICLE,  THE BOARD SHALL UNDERTAKE OR CAUSE TO BE UNDERTAKEN A STUDY ON
THE EFFECTIVENESS OF THE PILOT PROJECT IN EACH OF THE PILOT  CITIES  AND
SHALL PREPARE RECOMMENDATIONS FOR THE GOVERNOR AND LEGISLATURE ON WHETH-
ER  AN  ARTS-BASED  ECONOMIC AND COMMUNITY DEVELOPMENT PROGRAM SHOULD BE
ESTABLISHED STATEWIDE, AND, IF SO, MAKE RECOMMENDATIONS AS TO PROVISIONS
INCLUDING STATE INCENTIVES FOR THE PROGRAM.
  S 16.05. PILOT ARTS-BASED DISTRICTS. 1.   IN  ADDITION  TO  ANY  OTHER
AUTHORITY  FOR  SUCH  PURPOSE, THE CITIES OF ALBANY, BUFFALO, ROCHESTER,
SYRACUSE AND TROY MAY ESTABLISH AN ARTS-BASED DISTRICT WITHIN ITS BOUND-
ARIES.  SUCH  DISTRICT  SHALL  HAVE  RESIDENTIAL  AND  ARTS-RELATED  AND
SERVICE-RELATED  COMMERCIAL  USES  AND  SHALL  BE  IDENTIFIED AS AN AREA
PRIMARILY, BUT NOT EXCLUSIVELY, INTENDED FOR RESIDENTIAL USE BY  ARTISTS
AND  PERSONS WORKING IN ARTS-RELATED ACTIVITIES WHICH SHALL BE DEEMED TO
INCLUDE, BUT NOT BE LIMITED TO, ART GALLERIES,  CRAFT  STORES,  THEATERS
AND  OTHER  PERFORMANCE  SPACES,  MUSEUMS, BOOK STORES AND ARTIST SUPPLY
BUSINESSES  AND  SERVICES-RELATED  ACTIVITIES  LIKE  RESTAURANTS,   FOOD
STORES, DRY CLEANERS AND TOURISM.
  2.  SUCH  DISTRICT  SHALL  BE  DISTINGUISHED  BY PHYSICAL AND CULTURAL
RESOURCES THAT PLAY A VITAL ROLE IN THE  LIFE  AND  DEVELOPMENT  OF  THE
COMMUNITY  AND  CONTRIBUTE  TO THE PUBLIC THROUGH INTERPRETATIVE, EDUCA-
TIONAL AND RECREATIONAL USES.
  3. SUCH DISTRICT SHALL HAVE AN ARTIST HOME OWNERSHIP PROGRAM TO ASSIST
ARTISTS IN PURCHASING AND REHABILITATING A  HOME  WITHIN  THE  DISTRICT.
SUCH  DISTRICT SHALL BE SUBJECT TO A PLAN APPROVED BY THE LOCAL LEGISLA-
TIVE BODY AND BE ORGANIZED AS A BUSINESS IMPROVEMENT  DISTRICT  PURSUANT
TO  THE  GENERAL MUNICIPAL LAW.   NOTWITHSTANDING ANY OTHER PROVISION OF
LAW, PROVISION MAY BE MADE FOR CONTRACT  AND/OR  INCENTIVE  ZONING  WITH
SUCH DISTRICTS.
  S  16.07.  STATE  ASSISTANCE  AND  COOPERATION.  1.  TO EFFECTUATE THE
PURPOSES OF THIS ARTICLE, A PILOT COMMUNITY MAY REQUEST FROM ANY DEPART-
MENT, BOARD, BUREAU, COMMISSION OR OTHER AGENCY OF THE  STATE,  AND  THE
SAME  ARE  AUTHORIZED  TO  PROVIDE,  SUCH  COOPERATION  AND  ASSISTANCE,
SERVICES AND DATA AS WILL ENABLE SUCH PILOT COMMUNITY TO CARRY  OUT  THE
PURPOSES OF THIS ARTICLE.
  2.  THE  DEPARTMENT  OF ECONOMIC DEVELOPMENT THROUGH THE STATE "I LOVE
NEW YORK" PROGRAM SHALL PROVIDE TECHNICAL  ASSISTANCE  IN  DEVELOPING  A
TOURISM  MARKETING PLAN FOR EACH PILOT COMMUNITY AND SHALL AT THE APPRO-
PRIATE TIME PREPARE OR CAUSE TO BE PREPARED A NATIONAL MARKETING  EFFORT
FOCUSING  GENERALLY  ON WORKING ARTISTS IN THE STATE AND PARTICULARLY ON
THE DISTRICTS ESTABLISHED PURSUANT TO THIS ARTICLE.
  3. THE DEPARTMENT OF ECONOMIC DEVELOPMENT  IN  CONSULTATION  WITH  THE
BOARD SHALL CREATE A GRANT PROGRAM DESIGNED TO ASSIST IN THE DEVELOPMENT
OF  DISTRICTS  PURSUANT  TO  THIS  ARTICLE.  WITHIN FUNDS MADE AVAILABLE
THEREFOR, GRANTS SHALL BE MADE TO  PILOT  CITIES  FOR  THE  PURPOSES  OF
INFRASTRUCTURE IMPROVEMENTS IN DISTRICTS, HOUSING ASSISTANCE FOR ARTISTS
IN DISTRICTS AND DEVELOPMENT OF A THEMATIC APPROACH TO TOURISM PROMOTION
IN  DISTRICTS.  THE COMMISSIONER IS DIRECTED TO ESTABLISH GUIDELINES AND
AN APPLICATION PROCESS.
  S 3. The real property tax law is amended by adding a new section  411
to read as follows:
  S  411.  CERTAIN  ARTS-BASED DISTRICTS. 1. AFTER A PUBLIC HEARING, THE
GOVERNING BODY OF THE CITIES OF ALBANY, BUFFALO, ROCHESTER, SYRACUSE AND
TROY MAY ADOPT A LOCAL LAW OR A SCHOOL DISTRICT MAY ADOPT A  RESOLUTION,
PROVIDING  FOR  AN EXEMPTION PURSUANT TO THE PROVISIONS OF THIS SECTION.
SUCH LOCAL LAW OR RESOLUTION MAY PROVIDE THAT AN IMPROVEMENT TO ANY REAL

S. 3847--A                          4

PROPERTY USED SOLELY FOR RESIDENTIAL PURPOSES AS A  ONE,  TWO  OR  THREE
FAMILY  RESIDENCE  PURSUANT  TO  AN ARTS-BASED DISTRICT PLAN PURSUANT TO
ARTICLE SIXTEEN OF THE ARTS AND CULTURAL AFFAIRS  LAW  SHALL  BE  EXEMPT
FROM  TAXATION  TO  THE  EXTENT OF ANY INCREASE IN VALUE ATTRIBUTABLE TO
SUCH IMPROVEMENT IF SUCH IMPROVEMENT IS USED FOR THE PURPOSE OF  FACILI-
TATING AND ACCOMMODATING THE USE AND ACCESSIBILITY OF SUCH REAL PROPERTY
BY  A  RESIDENT  OWNER OF THE REAL PROPERTY WHO IS A QUALIFYING RESIDENT
ARTIST PURSUANT TO SUCH ARTICLE SIXTEEN OF THE ARTS AND CULTURAL AFFAIRS
LAW.
  2. A LOCAL LAW OR RESOLUTION ADOPTED  PURSUANT  TO  THIS  SECTION  MAY
PROVIDE THAT THE EXEMPTION SHALL APPLY TO IMPROVEMENTS CONSTRUCTED PRIOR
TO  THE  EFFECTIVE DATE OF SUCH LOCAL LAW OR RESOLUTION. IF THE ASSESSOR
IS SATISFIED THAT THE APPLICANT IS ENTITLED TO AN EXEMPTION PURSUANT  TO
THIS  SECTION,  THE ASSESSOR SHALL APPROVE THE APPLICATION AND ENTER THE
TAXABLE ASSESSED VALUE OF THE PARCEL FOR WHICH  AN  EXEMPTION  HAS  BEEN
GRANTED PURSUANT TO THIS SECTION ON THE ASSESSMENT ROLL WITH THE TAXABLE
PROPERTY, WITH THE AMOUNT OF THE EXEMPTION IN A SEPARATE COLUMN.
  S  4.  Subdivision  (a)  of  section 1115 of the tax law is amended by
adding a new paragraph 44 to read as follows:
  44. TANGIBLE PERSONAL PROPERTY CREATED BY A QUALIFIED RESIDENT  ARTIST
RESIDING  IN  AN  ARTS-BASED DISTRICT PURSUANT TO ARTICLE SIXTEEN OF THE
ARTS AND CULTURAL AFFAIRS LAW AND SOLD WITHIN THE MUNICIPAL  CORPORATION
IN WHICH THE ARTIST RESIDES.
  S 5. This act shall take effect immediately and shall expire March 31,
2018  when  upon  such  date  the provisions of this act shall be deemed
repealed.