NY State Senate Bill 2019-S8938

Senate Bill S8938

2019-2020 Legislative Session

Relates to authorizing local municipalities to establish tourism recovery improvement districts

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Aug 24, 2020	referred to rules

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2019-S8938 (ACTIVE) - Details

See Assembly Version of this Bill:: A10801
Current Committee:: Senate Rules
Law Section:: Town Law
Laws Affected:: Add §190-h, Town L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S6186, A2149
2023-2024: S5474

2019-S8938 (ACTIVE) - Summary

Authorizes local municipalities to establish tourism recovery improvement districts.

2019-S8938 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8938

SPONSOR: KENNEDY
 
TITLE OF BILL:

An act to amend the town law, in relation to authorizing local munici-
palities to establish tourism recovery improvement districts

 
PURPOSE OR GENERAL IDEA OF BILL:

To help stimulate the tourism industry during- and post-COVID-19

 
SUMMARY OF PROVISIONS:

Section 1. Amends the town law by adding a new section 190-h establish-
ing Tourism Recovery Improvement Districts with subsections 1-15 speci-
fying the following:  Subsection 1. Sets the definitions as used in this
article.

Subsection 2. Explains the contents of the district plan.

Subsection 3. Authorizes municipalities to adopt a law to establish or
extend a district in the municipality.

Subsection 4. Sets the powers that the local legislative body may estab-
lish for the district subject to the provisions of the article.

Subsection 5. Sets the filing process for the district plan.

Subsection 6. Sets the notice and hearing process for municipalities
once the district plan is filed.

Subsection 7. Sets the process for the establishment and extension of a
district plan.

Subsection 8. Sets the process for publication, filing, and the judicial
review of a district plan.

Subsection 9. Sets the amendment process for a district plan upon recom-
mendations from the district management association.

Subsection 10. Sets how expenses from that district that are incurred
shall be paid for.

Subsection 11. Establishes that the proceeds for any business assessment
that is imposed must be remitted to the district management association
within 60 from when they are collected. Also defines how these proceeds
must be used.

Subsection 12. Defines the "district management association" as used in
this article.

Subsection 13. Sets the dissolution process of the district plan.

Subsection 14. States if any section of this article is ruled invalid by
a judge of any court, it shall not affect or invalidate the remaining
provisions of any sections of this article or the application of any
part thereof to any other person or circumstance.  Each provision of
each section of this article are severable
Section 2: Sets the effective date.

 
JUSTIFICATION:

COVID-19 has decimated the tourism industry in New York State and
throughout the country. In May of 2019, hotels in New York State had a
76.7% occupancy rate; one year later in May 2020, this same occupancy
rate has been nearly cut in half to 35.9%. Prior to the

COVID-19 pandemic, New York enjoyed a growing tourism industry that had
been attracting people from all over the world to experience its beauti-
ful beaches, cities, and mountains.

District Management Associations like Discover Long Island have helped
grow tourism industries across the country, and in the case of Discover
Long Island, have generated an estimated $740 million in tax revenue and
have helped to foster a $6.1 billion industry. These District Management
Associations are an integral component of the tourism industry and would
benefit greatly from a new revenue source in order to help revitalize
the tourism industry during the COVID-19 pandemic and in the years
following as well.

This bill simply authorizes municipalities to adopt a local law to
establish a tourism recovery improvement district for the purposes of
raising revenue through business assessments on businesses which benefit
from district improvements facilitated by the District Management Asso-
ciation. Decisions regarding surcharge amounts and types of fees imposed
are exclusively reserved to local municipalities and their duly-elected
officials. In other parts of the country, tourism districts like these
have been successful in attracting overnight visitors, raising awareness
about a given destination, sponsoring special events and programs that
can bring in large-group business to a specific area.

At a time of great uncertainty, this legislation has the potential to
generate critically-needed revenue for local tourism initiatives that
will help boost local economies and support the small businesses which
are the bedrock of our communities.

 
PRIOR LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S8938 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8938
 
                             I N  S E N A T E
 
                              August 24, 2020
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the town law, in relation to authorizing  local  munici-
   palities to establish tourism recovery improvement districts
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The town law is amended by adding a new  section  190-h  to
 read as follows:
   §  190-H.  TOURISM RECOVERY IMPROVEMENT DISTRICTS. 1. FOR THE PURPOSES
 OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "ASSESSMENT" MEANS A LEVY IMPOSED ON BEHALF OF THE DISTRICT  ON  A
 BUSINESS AS PROVIDED IN THE DISTRICT PLAN.
   (B)  "BENEFITED  BUSINESS" MEANS BUSINESSES LOCATED WITHIN A DISTRICT,
 WHICH BENEFIT FROM DISTRICT IMPROVEMENTS BASED ON A RATIONAL NEXUS TEST.
 DISTRICTS MAY INCLUDE ONE OR MORE TYPES OF BUSINESSES.  BUSINESSES  NEED
 NOT  PROFIT  EQUALLY  TO BE CONSIDERED TO HAVE BENEFITED. ASSESSED BUSI-
 NESSES LOCATED IN  A  TOURISM  RECOVERY  IMPROVEMENT  DISTRICT  ARE  NOT
 REQUIRED TO BE CONTIGUOUS.
   (C)  "BUSINESS  ASSESSMENT" MEANS ANY ASSESSMENT MADE PURSUANT TO THIS
 SECTION UPON A BUSINESS.
   (D) "BUSINESS OWNER" MEANS ANY PERSON RECOGNIZED BY A MUNICIPALITY  AS
 THE OWNER OF THE BUSINESS.
   (E) "DISTRICT" MEANS A TOURISM IMPROVEMENT DISTRICT ESTABLISHED PURSU-
 ANT  TO  THIS  SECTION,  WHICH  MAY INCLUDE AN ENTIRE COUNTY OR MULTIPLE
 COUNTIES PROVIDED THAT A DISTRICT MAY NOT OVERLAP IN WHOLE  OR  IN  PART
 WITH A CITY WITH A POPULATION OF ONE MILLION OR MORE.
   (F)  "DISTRICT  MANAGEMENT  ASSOCIATION"  MEANS THE ASSOCIATION ESTAB-
 LISHED PURSUANT TO SUBDIVISION TWELVE OF THIS SECTION.
   (G) "DISTRICT PLAN" OR "PLAN" MEANS A PROPOSAL AS DESCRIBED IN  SUBDI-
 VISION TWO OF THIS SECTION.
   (H)  "LEGISLATIVE  BODY" MEANS THE LOCAL LEGISLATIVE BODY OF A MUNICI-
 PALITY EMPOWERED TO ADOPT AND AMEND LOCAL LAWS OR ORDINANCES.
   (I) "MUNICIPALITY" MEANS A COUNTY WITHIN THE STATE OF NEW YORK, EXCEPT
 COUNTIES LOCATED WITHIN A CITY WITH A POPULATION OF ONE MILLION OR MORE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD16893-01-0

 S. 8938                             2
 
 IN A DISTRICT WHICH INCLUDES MORE THAN  ONE  MUNICIPALITY,  THE  MUNICI-
 PALITY  IN  WHICH  THE  DISTRICT PLAN IS FILED SHALL BE THE LEAD MUNICI-
 PALITY OF THE DISTRICT. THE COUNTY WHICH SHALL SERVE AS THE LEAD MUNICI-
 PALITY  MAY  NOT  FORM A DISTRICT WITHIN THE TERRITORIAL JURISDICTION OF
 ANOTHER COUNTY WITHOUT THE CONSENT OF THE LEGISLATIVE BODY OF THAT COUN-
 TY.
   (J) "RATIONAL NEXUS" MEANS THE LEGAL  PRINCIPLE  WHICH  REQUIRES  THAT
 THERE IS A RATIONAL BENEFIT WHICH ACCRUES TO ANY BUSINESS OWNER ASSESSED
 FOR  SAID  BENEFIT  IN  A DISTRICT CREATED PURSUANT TO THIS SECTION. ALL
 DESIGNATED BUSINESS  OWNERS  WITHIN  A  DESIGNATED  DISTRICT  PAYING  AN
 ASSESSMENT   MUST  BENEFIT  DIRECTLY  OR  INDIRECTLY  FROM  IMPROVEMENTS
 PROVIDED BY A  DISTRICT  MANAGEMENT  ASSOCIATION  WITHIN  THE  DISTRICT,
 PROVIDED,  HOWEVER,  THAT  DESIGNATED  BUSINESS  OWNERS NEED NOT BENEFIT
 EQUALLY.
   2. THIS DISTRICT PLAN SHALL CONTAIN THE FOLLOWING:
   (A) A MAP OF THE DISTRICT;
   (B) A DESCRIPTION OF THE  BOUNDARIES  OF  THE  DISTRICT  PROPOSED  FOR
 ESTABLISHMENT  OR EXTENSION IN A MANNER SUFFICIENT TO IDENTIFY THE LANDS
 INCLUDED;
   (C) THE IMPROVEMENTS  AND  ACTIVITIES  PROPOSED  AND  THE  APPROPRIATE
 PROJECTED COST THEREOF;
   (D)  THE  TOTAL  ESTIMATED  ANNUAL  AMOUNT PROPOSED TO BE EXPENDED FOR
 IMPROVEMENTS, ACTIVITIES, MAINTENANCE, AND OPERATION;
   (E) THE PROPOSED SOURCE OR SOURCES OF FINANCING;
   (F) THE  PROPOSED  TIME  FOR  IMPLEMENTATION  AND  COMPLETION  OF  THE
 DISTRICT PLAN;
   (G)  ANY  PROPOSED  RULES  AND  REGULATIONS  TO  BE  APPLICABLE TO THE
 DISTRICT;
   (H) IDENTIFICATION OF A NEW OR AN EXISTING ENTITY, AGENCY, OR  NONPRO-
 FIT  CORPORATION,  CHARGED WITH PROMOTING TOURISM IN THAT REGION, AS THE
 DISTRICT MANAGEMENT ASSOCIATION; AND
   (I) ANY OTHER ITEM OR MATTER REQUIRED TO BE  INCORPORATED  THEREIN  BY
 THE LEGISLATIVE BODY.
   3.  EVERY  MUNICIPALITY  SHALL  BE  AUTHORIZED  TO  ADOPT A LOCAL LAW,
 SUBJECT TO PERMISSIVE REFERENDUM, PROVIDING THAT THE PROVISIONS OF  THIS
 SECTION  SHALL  BE  APPLICABLE  TO  THE  ESTABLISHMENT  OR  EXTENSION OF
 DISTRICTS IN THE MUNICIPALITY.
   4. (A) UPON ESTABLISHMENT OF A DISTRICT PURSUANT TO THE PROVISIONS  OF
 THIS  SECTION, THE LEGISLATIVE BODY SHALL HAVE AUTHORITY TO EXERCISE THE
 FOLLOWING  POWERS  WITH  RESPECT  TO  SUCH  DISTRICT,  SUBJECT  TO   THE
 PROVISIONS OF THIS SECTION:
   (I)  PROVIDE FOR ACTIVITIES AND OTHER ADDITIONAL SERVICES REQUIRED FOR
 TOURISM PROMOTION AND ENHANCEMENT OF THE DISTRICT,  WHETHER  OR  NOT  IN
 CONJUNCTION WITH IMPROVEMENTS AUTHORIZED BY THIS SECTION;
   (II)  PROVIDE  FOR DISTRICT IMPROVEMENTS WHICH WILL FUND THE PROMOTION
 OF TOURISM ACTIVITIES IN THE DISTRICT INCLUDING, BUT NOT LIMITED TO, THE
 ACQUISITION, CONSTRUCTION, INSTALLATION, OR MAINTENANCE OF ANY  TANGIBLE
 PROPERTY WITH AN ESTIMATED USEFUL LIFE OF FIVE YEARS OR MORE; AND
   (III)  PROVIDE  FOR  THE  OPERATION  AND  MAINTENANCE  OF ANY DISTRICT
 IMPROVEMENT.
   (B) AFTER THE ESTABLISHMENT OF A MANAGEMENT DISTRICT, THE  LEGISLATIVE
 BODY  SHALL  NOT DECREASE THE LEVEL OF PUBLICLY FUNDED TOURISM PROMOTION
 SERVICES IN THE MANAGEMENT DISTRICT EXISTING PRIOR TO  THE  CREATION  OF
 THE DISTRICT.
   (C) ASSESSMENTS LEVIED ON BUSINESSES PURSUANT TO THIS SECTION SHALL BE
 LEVIED  ON  THE  BASIS OF THE ESTIMATED BENEFIT TO THE BUSINESSES WITHIN

 S. 8938                             3
 
 THE TOURISM IMPROVEMENT DISTRICT.  THE LEGISLATIVE BODY OF  THE  MUNICI-
 PALITY  MAY  CLASSIFY BUSINESSES FOR PURPOSES OF DETERMINING THE BENEFIT
 TO THE BUSINESSES OF THE IMPROVEMENTS AND ACTIVITIES  PROVIDED  PURSUANT
 TO  THIS  SECTION.  A MUNICIPALITY IS AUTHORIZED TO FORM A DISTRICT THAT
 LEVIES ASSESSMENTS ON BUSINESSES LOCATED IN THE MUNICIPALITY,  INCLUDING
 THOSE LOCATED IN A CITY, TOWN AND VILLAGE.
   (D)  A  MUNICIPALITY  SHALL  BE  AUTHORIZED  TO  FORM  A DISTRICT THAT
 INCLUDES OTHER MUNICIPALITIES.
   5. THE DISTRICT PLAN SHALL BE FILED WITH THE OFFICE OF  THE  MUNICIPAL
 CLERK.  THE ESTABLISHMENT OR EXTENSION OF A DISTRICT SHALL BE BASED UPON
 THE DISTRICT PLAN FILED IN  THE  OFFICE  OF  THE  MUNICIPAL  CLERK.  ALL
 DISTRICT PLANS SHALL CONFORM WITH THE REQUIREMENTS OF THIS SECTION.
   6.  (A)  AFTER  THE  FILING  OF THE DISTRICT PLAN IN THE OFFICE OF THE
 MUNICIPAL CLERK, THE LEGISLATIVE BODY MAY ADOPT A RESOLUTION  AND  SHALL
 ENTER  THE SAME IN THE MINUTES OF ITS PROCEEDINGS. THIS RESOLUTION SHALL
 CONTAIN A COPY OF THE DISTRICT PLAN, THE FACT THAT A DISTRICT PLAN IS ON
 FILE IN THE MUNICIPAL CLERK'S OFFICE FOR PUBLIC INSPECTION AND THE  TIME
 WHEN  AND  THE  PLACE  WHERE  THE  LEGISLATIVE BODY WILL MEET AND HOLD A
 PUBLIC HEARING TO HEAR ALL PERSONS INTERESTED IN THE SUBJECT THEREOF.
   (B) THE RESOLUTION SHALL ALSO CONTAIN A STATEMENT  THAT  ANY  ASSESSED
 BUSINESS  OWNER,  DEEMED  BENEFITED  AND  THEREFORE WITHIN THE DISTRICT,
 OBJECTING TO THE PLAN SHALL FILE AN  OBJECTION  AT  THE  OFFICE  OF  THE
 MUNICIPAL  CLERK  WITHIN THIRTY DAYS OF THE CONCLUSION OF THE HEARING ON
 FORMS MADE AVAILABLE BY THE CLERK, AND, FURTHER, THAT IF BUSINESS OWNERS
 THAT SHALL PAY MORE THAN FIFTY PERCENT  OF  THE  AMOUNT  RAISED  BY  THE
 ASSESSED  BUSINESSES  SITUATED  WITHIN  THE  BOUNDARIES  OF THE DISTRICT
 PROPOSED FOR ESTABLISHMENT  OR  EXTENSION,  AS  SHOWN  UPON  THE  LATEST
 COMPLETED  MUNICIPAL  BUSINESS LIST, FILE THEIR OBJECTIONS, THE DISTRICT
 WILL NOT BE ESTABLISHED OR EXTENDED.
   (C) THE LEGISLATIVE BODY SHALL CAUSE A COPY OF  THE  RESOLUTION  OR  A
 SUMMARY THEREOF TO BE PUBLISHED AT LEAST ONCE IN THE OFFICIAL PAPER OR A
 NEWSPAPER IN GENERAL CIRCULATION IN THE MUNICIPALITY, THE FIRST PUBLICA-
 TION  TO  BE  NOT LESS THAN TEN NOR MORE THAN THIRTY DAYS BEFORE THE DAY
 SET FOR THE HEARING REQUIRED BY THIS SECTION. IN ADDITION, NOT LESS THAN
 TEN NOR MORE THAN THIRTY DAYS BEFORE THE DATE SET FOR THE  HEARING,  THE
 LEGISLATIVE BODY SHALL CAUSE A COPY OF THE RESOLUTION OR A SUMMARY THER-
 EOF  TO  BE  MAILED  TO  EACH  OWNER  OF AN ASSESSED BUSINESS WITHIN THE
 PROPOSED DISTRICT AT THE ADDRESS SHOWN ON THE LATEST MUNICIPAL  BUSINESS
 LIST. IF THE LEGISLATIVE BODY PUBLISHES OR MAILS A SUMMARY OF THE RESOL-
 UTION,  SUCH SUMMARY SHALL INCLUDE THE BUSINESS ADDRESS OF THE MUNICIPAL
 CLERK, A STATEMENT THAT COPIES OF THE RESOLUTION SHALL BE MADE AVAILABLE
 FREE OF CHARGE TO THE PUBLIC, THE IMPROVEMENTS, ACTIVITIES, OR  SERVICES
 PROPOSED,  THE TOTAL ESTIMATED ANNUAL AMOUNT PROPOSED TO BE EXPENDED FOR
 IMPROVEMENTS, ACTIVITIES, MAINTENANCE AND  OPERATION,  AND  A  STATEMENT
 INDICATING  THE  RIGHTS OF OWNERS TO OBJECT PURSUANT TO PARAGRAPH (B) OF
 THIS SUBDIVISION.
   (D) THE RESOLUTION MAY FURTHER STATE THE PLACE, OTHER THAN THE MUNICI-
 PAL CLERK'S OFFICE, WHERE THE DISTRICT PLAN MAY BE INSPECTED IN  ADVANCE
 OF  THE  HEARING, IF THE LEGISLATIVE BODY DETERMINES THAT, IN THE PUBLIC
 INTEREST, ANY ADDITIONAL PLACE OF INSPECTION IS NECESSARY OR DESIRABLE.
   7. (A) NOT EARLIER THAN THIRTY DAYS AFTER THE CONCLUSION OF  THE  LAST
 DAY  OF  THE  PUBLIC  HEARING  HELD  PURSUANT TO SUBDIVISION SIX OF THIS
 SECTION, THE LEGISLATIVE BODY SHALL DETERMINE:
   (I) WHETHER THE NOTICE OF HEARING FOR ALL HEARINGS REQUIRED TO BE HELD
 WAS PUBLISHED AND MAILED AS REQUIRED BY LAW AND IS OTHERWISE SUFFICIENT;

 S. 8938                             4

   (II) WHETHER ALL THE ASSESSED BUSINESSES WITHIN THE BOUNDARIES OF  THE
 PROPOSED  DISTRICT  OR  EXTENSION WILL BENEFIT FROM THE ESTABLISHMENT OR
 EXTENSION OF THE DISTRICT; AND
   (III) WHETHER THE ESTABLISHMENT OR EXTENSION OF THE DISTRICT IS IN THE
 PUBLIC INTEREST.
   (B)  (I)  IF THE LEGISLATIVE BODY SHALL DETERMINE THE ESTABLISHMENT OR
 EXTENSION OF THE DISTRICT IS NOT THE PUBLIC INTEREST PURSUANT TO SUBPAR-
 AGRAPH (III) OF PARAGRAPH (A) OF THIS SUBDIVISION, OR IF  THE  REQUISITE
 NUMBER OF OWNERS SHALL HAVE FILED THEIR OBJECTIONS AS PROVIDED IN SUBDI-
 VISION  SIX  OF  THIS SECTION, THE LEGISLATIVE BODY SHALL ADOPT A RESOL-
 UTION DISAPPROVING THE ESTABLISHMENT OR EXTENSION OF THE DISTRICT, STAT-
 ING THE REASONS FOR ITS DETERMINATION AND ENTER THE SAME IN THE  MINUTES
 OF  ITS PROCEEDINGS.  THEREAFTER NO PLAN FOR THE ESTABLISHMENT OR EXTEN-
 SION OF A DISTRICT TO INCLUDE ANY BUSINESS PROPOSED TO  BE  INCLUDED  IN
 THE  DISAPPROVED DISTRICT MAY BE PREPARED AS PROVIDED IN SUBDIVISION SIX
 OF THIS SECTION UNTIL THE EXPIRATION OF AT LEAST ONE YEAR FROM THE  DATE
 OF DISAPPROVAL.
   (II) IF THE LEGISLATIVE BODY SHALL FIND THAT NOTICE WAS INCORRECTLY OR
 INSUFFICIENTLY  GIVEN  OR THAT, EXCEPT AS OTHERWISE PROVIDED IN SUBDIVI-
 SION TWO OF THIS SECTION, ANY ASSESSED BUSINESS WITHIN THE BOUNDARIES OF
 THE PROPOSED DISTRICT OR EXTENSION IS  NOT  BENEFITED  THEREBY  OR  THAT
 CERTAIN  BUSINESSES  BENEFITED THEREBY HAD NOT BEEN INCLUDED THEREIN, IT
 SHALL CALL A FURTHER HEARING AT A DEFINITE PLACE AND TIME NOT LESS  THAN
 TEN  NOR  MORE  THAN THIRTY DAYS AFTER THIS DETERMINATION. IN THE RESOL-
 UTION CALLING SUCH HEARING, IT SHALL SPECIFY THE NECESSARY  CHANGES,  IF
 ANY,  TO THE BOUNDARIES OF THE PROPOSED DISTRICT OR EXTENSION TO BE MADE
 IN ORDER THAT, EXCEPT AS OTHERWISE PROVIDED IN SUBDIVISION TWO  OF  THIS
 SECTION, ALL OF THE BUSINESSES AND ONLY THOSE BUSINESSES AS DEEMED BENE-
 FITED  SHALL  BE INCLUDED WITHIN THE BOUNDARIES OF THE PROPOSED DISTRICT
 OR EXTENSION.  BENEFITED  BUSINESSES  LOCATED  IN  A  DISTRICT  ARE  NOT
 REQUIRED  TO  BE  CONTIGUOUS.  NOTICE  OF  THE  FURTHER HEARING SHALL BE
 PUBLISHED AND MAILED IN THE MANNER PROVIDED IN SUBDIVISION SIX  OF  THIS
 SECTION,  EXCEPT  THAT,  WHERE BOUNDARIES ARE TO BE ALTERED, THIS NOTICE
 SHALL ALSO SPECIFY THE MANNER IN WHICH IT IS PROPOSED TO ALTER THE BOUN-
 DARIES OF THE PROPOSED DISTRICT OR EXTENSION. THE FURTHER HEARING  SHALL
 BE CONDUCTED IN THE SAME MANNER AS THE ORIGINAL HEARING.
   (C)  IF  AND WHEN THE LEGISLATIVE BODY SHALL DETERMINE IN THE AFFIRMA-
 TIVE ALL OF THE QUESTIONS SET FORTH IN PARAGRAPH (A)  OF  THIS  SUBDIVI-
 SION,  AND  PROVIDED  THAT THE REQUISITE NUMBER OF OWNERS SHALL NOT HAVE
 OBJECTED AS PROVIDED IN SUBDIVISION SIX OF THIS SECTION, IT MAY ADOPT  A
 LOCAL  LAW  APPROVING  THE ESTABLISHMENT OR EXTENSION OF THE DISTRICT AS
 THE BOUNDARIES SHALL BE FINALLY DETERMINED AND THE CONSTRUCTION  OF  THE
 IMPROVEMENT OR PROVIDING OF THE ACTIVITY OR SERVICE IN THE DISTRICT.
   (D) UPON THE RECOMMENDATION OF THE DISTRICT MANAGEMENT ASSOCIATION AND
 AFTER  A  PUBLIC  HEARING, THE LEGISLATIVE BODY MAY ADOPT A LOCAL LAW AT
 ANY TIME PRIOR TO OR AFTER THE ESTABLISHMENT OF A DISTRICT TO CHANGE THE
 METHOD OF ASSESSMENT AS SET FORTH IN THE PLAN.   NOTICE OF  SUCH  PUBLIC
 HEARING  AND  A DESCRIPTION OF THE PROPOSED CHANGE SHALL BE GIVEN IN THE
 MANNER SET FORTH IN SUBDIVISION SIX OF THIS SECTION.
   8. (A) THE MUNICIPAL CLERK SHALL CAUSE A CERTIFIED COPY OF  THE  LOCAL
 LAW  OF  THE LEGISLATIVE BODY ADOPTED PURSUANT TO THE PROVISIONS OF THIS
 SECTION ESTABLISHING OR EXTENDING ANY DISTRICT, OR INCREASING THE  MAXI-
 MUM  TOTAL  AMOUNT  PROPOSED  TO BE EXPENDED FOR THE IMPROVEMENT, ACTIV-
 ITIES, OR ADDITIONAL SERVICES IN ANY DISTRICT OR EXTENSION, OR  CHANGING
 THE  METHOD  OF ASSESSMENT, OR AUTHORIZING THE DISTRICT TO INCUR DEBT TO
 PROVIDE FOR ADDITIONAL IMPROVEMENTS, ACTIVITIES, OR SERVICES WITHIN  THE

 S. 8938                             5
 
 DISTRICT, TO BE DULY RECORDED IN THE MUNICIPAL CLERK'S OFFICE WITHIN TEN
 DAYS  AFTER  SUCH  LOCAL LAW BECOMES EFFECTIVE. WHEN RECORDED THIS LOCAL
 LAW SHALL BE PRESUMPTIVE EVIDENCE OF THE REGULARITY OF  THE  PROCEEDINGS
 FOR  THE  ESTABLISHMENT OR EXTENSION OF THE DISTRICT, OF THE PROCEEDINGS
 INSTITUTED FOR THE CONSTRUCTION OF ANY  IMPROVEMENT  AND  OF  ALL  OTHER
 ACTIONS TAKEN IN RELATION TO IT.
   (B) WITHIN TEN DAYS AFTER THE LOCAL LAW BECOMES EFFECTIVE, THE MUNICI-
 PAL  CLERK SHALL, IN ADDITION TO ANY OTHER FILING REQUIRED BY LAW, CAUSE
 A COPY OF THE LOCAL LAW OR A SUMMARY THEREOF TO BE  PUBLISHED  AT  LEAST
 ONCE  IN  THE  OFFICIAL PAPER OR NEWSPAPER OF GENERAL CIRCULATION IN THE
 MUNICIPALITY.
   (C) THIS LOCAL LAW SHALL BE FINAL AND CONCLUSIVE UNLESS  A  PROCEEDING
 TO  REVIEW  IS  COMMENCED  IN  ACCORDANCE  WITH THIS SECTION. ANY PERSON
 AGGRIEVED BY ANY LOCAL LAW ADOPTED PURSUANT TO  THIS  SECTION  MAY  SEEK
 JUDICIAL  REVIEW  OF  THE  LOCAL  LAW  IN THE MANNER PROVIDED BY ARTICLE
 SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES, PROVIDED THE PROCEED-
 ING IS COMMENCED WITHIN THIRTY DAYS FROM THE DATE OF THE PUBLICATION  OF
 THE  COPY  OR SUMMARY OF THE LOCAL LAW PURSUANT TO PARAGRAPH (B) OF THIS
 SUBDIVISION. NO REVIEW SHALL BE HAD UNLESS THE PETITIONER SHALL GIVE  AN
 UNDERTAKING  APPROVED  BY THE SUPREME COURT, OR A JUSTICE THEREOF, AS TO
 FORM, AMOUNT AND SUFFICIENCY OF SURETIES, THAT, IN THE EVENT OF  FAILURE
 TO  MODIFY  THE  LOCAL  LAW  HE OR SHE WILL PAY TO THE MUNICIPALITY, ALL
 COSTS AND EXPENSES AS ARE INCURRED BY IT ON ACCOUNT OF THE  PROCEEDINGS,
 AS  SHALL BE DETERMINED BY THE COURT. IN THE EVENT THAT UPON THIS REVIEW
 THERE SHALL BE ANY MODIFICATION BY THE COURT OF THE LOCAL LAW, THE COURT
 SHALL DIRECT THE MODIFICATION BY  JUDGMENT  WHICH  SHALL  BE  FINAL  AND
 CONCLUSIVE,  AND  THE  MUNICIPAL  CLERK  SHALL  CAUSE THE JUDGMENT TO BE
 RECORDED AND FILED IN THE SAME PLACES AND MANNER AS WAS  THE  LOCAL  LAW
 WHICH WAS MODIFIED.
   9.  (A) AT ANY TIME AFTER THE ESTABLISHMENT OR EXTENSION OF A DISTRICT
 PURSUANT TO THE PROVISIONS OF THIS SECTION, THE DISTRICT PLAN UPON WHICH
 THE ESTABLISHMENT OR EXTENSION WAS BASED, MAY, UPON  THE  RECOMMENDATION
 OF  THE  DISTRICT  MANAGEMENT ASSOCIATION, BE AMENDED BY THE LEGISLATIVE
 BODY AFTER COMPLIANCE WITH THE PROCEDURES SET FORTH IN THIS SECTION.
   (B) AMENDMENTS TO THE DISTRICT PLAN WHICH PROVIDE FOR CHANGES  TO  THE
 IMPROVEMENTS,  ACTIVITIES,  OR SERVICES PROVIDED UNDER THE DISTRICT PLAN
 MAY BE ADOPTED BY THE DISTRICT MANAGEMENT ASSOCIATION AND DO NOT REQUIRE
 ACTIONS BY THE LEGISLATIVE BODY.
   (C) AMENDMENTS TO THE DISTRICT PLAN WHICH PROVIDE FOR CHANGES  TO  THE
 BOUNDARIES  OF  THE  DISTRICT  OR ANY CHANGE IN THE METHOD OF ASSESSMENT
 UPON WHICH THE BUSINESS ASSESSMENT IS BASED MAY BE ADOPTED BY LOCAL  LAW
 OF THE LEGISLATIVE BODY, PROVIDED THAT THE LEGISLATIVE BODY OF THE MUNI-
 CIPALITY  SHALL,  AFTER  A  PUBLIC  HEARING, DETERMINE THAT IT IS IN THE
 PUBLIC INTEREST TO AUTHORIZE SUCH  CHANGES  TO  THE  BOUNDARIES  OF  THE
 DISTRICT  OR  CHANGES  TO THE METHOD OF ASSESSMENT. THE LEGISLATIVE BODY
 SHALL GIVE NOTICE OF THE HEARING BY  PUBLICATION  OF  A  NOTICE  ON  THE
 LEGISLATIVE  BODY'S  WEBSITE OR IN AT LEAST ONE NEWSPAPER HAVING GENERAL
 CIRCULATION IN THE DISTRICT SPECIFYING THE TIME WHEN AND THE PLACE WHERE
 THE HEARING WILL BE HELD AND STATING ANY CHANGES TO  THE  BOUNDARIES  OF
 THE  DISTRICT,  OR ANY CHANGE IN THE METHOD OF ASSESSMENT UPON WHICH THE
 BUSINESS ASSESSMENT IS BASED. THE NOTICE  SHALL  BE  PUBLISHED  ONCE  AT
 LEAST TEN DAYS PRIOR TO THE DATE SPECIFIED FOR THE HEARING.
   (D)  AMENDMENTS TO THE DISTRICT PLAN WHICH PROVIDE FOR THE DISTRICT TO
 INCUR INDEBTEDNESS IN ORDER TO PROVIDE FOR  ADDITIONAL  IMPROVEMENTS  OR
 ACTIVITIES,  OR  WHICH  PROVIDE  AN  INCREASE  ONLY  IN THE AMOUNT TO BE
 EXPENDED ANNUALLY FOR IMPROVEMENTS,  ACTIVITIES,  SERVICES,  MAINTENANCE

 S. 8938                             6
 
 AND  OPERATION,  OR  WHICH  PROVIDE FOR AN INCREASE IN THE TOTAL MAXIMUM
 AMOUNT TO BE EXPENDED FOR IMPROVEMENTS OR ACTIVITIES  IN  THE  DISTRICT,
 MAY BE ADOPTED BY LOCAL LAW OF THE LEGISLATIVE BODY. ADOPTION OF A LOCAL
 LAW OF THE LEGISLATIVE BODY REGARDING THE AMENDMENTS AS PROVIDED IN THIS
 PARAGRAPH REQUIRES THAT THE LEGISLATIVE BODY SHALL, AFTER A PUBLIC HEAR-
 ING,  DETERMINE  THAT  IT  IS  IN  THE  PUBLIC INTEREST TO AUTHORIZE THE
 DISTRICT TO INCUR INDEBTEDNESS TO PROVIDE FOR ADDITIONAL IMPROVEMENTS OR
 ACTIVITIES, OR TO INCREASE ONLY IN THE AMOUNT TO BE  EXPENDED  ANNUALLY,
 OR  TO INCREASE THE MAXIMUM TOTAL AMOUNT TO BE EXPENDED FOR IMPROVEMENTS
 OR ACTIVITIES IN THE DISTRICT.  NOTICE OF THE HEARING SHALL BE PUBLISHED
 AND MAILED IN THE MANNER PROVIDED IN SUBDIVISION SIX OF THIS SECTION.
   10. (A) THE EXPENSE INCURRED IN THE CONSTRUCTION OR OPERATION  OF  ANY
 IMPROVEMENT,  ACTIVITIES,  OR  PROVISION  OF  ADDITIONAL  SERVICES  IN A
 DISTRICT PURSUANT TO THIS SECTION SHALL BE FINANCED IN  ACCORDANCE  WITH
 THE  DISTRICT  PLAN  UPON  WHICH  THE  ESTABLISHMENT OR EXTENSION OF THE
 DISTRICT WAS BASED. ACTIVITIES OR SERVICES FOR WHICH  DISTRICT  BUSINESS
 OWNERS  ARE  ASSESSED PURSUANT TO THE PLAN SHALL BE IN ADDITION TO OR AN
 ENHANCEMENT OF THOSE PROVIDED BY THE MUNICIPALITY PRIOR  TO  THE  ESTAB-
 LISHMENT  OF THE DISTRICT. THE EXPENSE AND COST APPORTIONED TO BENEFITED
 BUSINESSES IN ACCORDANCE WITH THE PLAN SHALL BE  A  BUSINESS  ASSESSMENT
 UPON EACH BENEFITED BUSINESS WITHIN THE DISTRICT.
   (B)  THE BUSINESS ASSESSMENT LEVIED UPON BENEFITED BUSINESSES PURSUANT
 TO THIS SECTION SHALL BE IMPOSED AS PROVIDED IN THE DISTRICT PLAN.
   (C) ANY MUNICIPALITY WHICH HAS ESTABLISHED A DISTRICT PURSUANT TO THIS
 SECTION, MAY, FOR THE PURPOSE OF  PROVIDING  FUNDS  FOR  MAKING  CAPITAL
 IMPROVEMENTS, WITHIN A DISTRICT, ISSUE AND SELL BONDS OR OTHER MUNICIPAL
 OBLIGATIONS  AS  PROVIDED  IN THE LOCAL FINANCE LAW AND OTHER APPLICABLE
 LAWS AND STATUTES. PRINCIPAL AND INTEREST PAYMENTS  ON  THESE  BONDS  OR
 OTHER  MUNICIPAL  OBLIGATIONS  MAY  BE MADE IN WHOLE OR IN PART FROM THE
 PROCEEDS OF BUSINESS ASSESSMENTS IMPOSED UPON BENEFITED BUSINESSES WITH-
 IN THE DISTRICT.
   11. THE PROCEEDS OF ANY BUSINESS ASSESSMENT IMPOSED PURSUANT  TO  THIS
 SECTION  SHALL BE REMITTED TO THE DISTRICT MANAGEMENT ASSOCIATION BY THE
 MUNICIPALITY WITHIN SIXTY DAYS FOLLOWING THE COLLECTION  OF  ASSESSMENTS
 FROM  ASSESSED  BUSINESSES.  NONE  OF THE PROCEEDS COLLECTED PURSUANT TO
 THIS SECTION SHALL BE USED FOR ANY PURPOSES OTHER THAN THOSE  SET  FORTH
 IN THE DISTRICT PLAN.
   12.  (A)  THERE  SHALL  BE  A DISTRICT MANAGEMENT ASSOCIATION FOR EACH
 DISTRICT ESTABLISHED PURSUANT TO THE PROVISIONS OF THIS SECTION,  WHICH,
 IF A NON-PROFIT CORPORATION, SHALL PURSUANT TO THE NOT-FOR-PROFIT CORPO-
 RATION  LAW HAVE ONE OR MORE CLASSES OR MEMBERSHIP, VOTING OR NON-VOTING
 FOR THE PURPOSE OF CARRYING OUT SUCH ACTIVITIES AS MAY BE PRESCRIBED  IN
 THE PLAN.
   (B)  THE  BOARD OF DIRECTORS OF THE ASSOCIATION MAY INCLUDE, BUT SHALL
 NOT BE  LIMITED  TO,  REPRESENTATIVES  OF  BUSINESS  OWNERS  WITHIN  THE
 DISTRICT.
   (C)  IN  ADDITION  TO SUCH OTHER POWERS AS ARE CONFERRED ON IT BY LAW,
 THE DISTRICT MANAGEMENT ASSOCIATION  MAY  MAKE  RECOMMENDATIONS  TO  THE
 LEGISLATIVE BODY WITH RESPECT TO ANY MATTER INVOLVING OR RELATING TO THE
 DISTRICT.
   13. ANY DISTRICT ESTABLISHED OR EXTENDED PURSUANT TO THE PROVISIONS OF
 THIS  SECTION,  WHERE  THERE IS NO INDEBTEDNESS, OUTSTANDING AND UNPAID,
 INCURRED TO ACCOMPLISH ANY OF THE  PURPOSES  OF  THE  DISTRICT,  MAY  BE
 DISSOLVED  BY RESOLUTION OF THE LEGISLATIVE BODY OF THE MUNICIPALITY, IF
 THE LEGISLATIVE BODY OF THE MUNICIPALITY FINDS THERE HAS BEEN  MISAPPRO-
 PRIATION OF FUNDS, MALFEASANCE, OR A VIOLATION OF LAW IN CONNECTION WITH

 S. 8938                             7
 
 THE  MANAGEMENT  OF THE DISTRICT. IT SHALL NOTICE A HEARING ON DISESTAB-
 LISHMENT PURSUANT TO SUBDIVISION SIX OF THIS SECTION. EACH YEAR  ON  THE
 ANNIVERSARY  OF  FORMATION  OF  THE DISTRICT THERE SHALL BE A THIRTY-DAY
 WINDOW  WHERE PETITIONS OF THE BUSINESS OWNERS, OR BUSINESS OWNER REPRE-
 SENTATIVES, THAT SHALL PAY MORE THAN FIFTY PERCENT OF THE  TOTAL  AMOUNT
 RAISED  BY  ALL  BENEFITED  BUSINESSES INCLUDED IN THE BOUNDARIES OF THE
 DISTRICT MAY PETITION TO DISSOLVE THE  DISTRICT.  THE  LEGISLATIVE  BODY
 SHALL  REQUEST  AND CONSIDER THE RECOMMENDATIONS OF THE DISTRICT MANAGE-
 MENT ASSOCIATION CONCERNING ANY PROPOSED DISSOLUTION, PROVIDED  THAT  IF
 THE  ASSOCIATION  HAS  NOT  SUBMITTED RECOMMENDATIONS TO THE LEGISLATIVE
 BODY WITHIN NINETY DAYS AFTER REQUEST THEREFORE,  THE  LEGISLATIVE  BODY
 SHALL  ADOPT  ANY  SUCH  PROPOSED  DISSOLUTION  WITHOUT CONSIDERING SUCH
 RECOMMENDATIONS. IN THE EVENT OF DISSOLUTION,  ANY  REMAINING  REVENUES,
 AFTER  ALL  OUTSTANDING DEBTS ARE PAID, DERIVED FROM THE LEVY OF ASSESS-
 MENTS, OR DERIVED FROM THE SALE OF ASSETS ACQUIRED WITH THE REVENUES, OR
 FROM BOND RESERVE OR CONSTRUCTION FUNDS, SHALL BE  SPENT  IN  ACCORDANCE
 WITH  THE  DISTRICT  PLAN  OR SHALL BE REFUNDED TO THE ASSESSED BUSINESS
 OWNERS BY APPLYING THE SAME METHOD AND BASIS THAT WAS USED TO  CALCULATE
 THE DISTRICT ASSESSMENTS THAT WERE LEVIED.
   14. IF ANY PROVISION OF THIS SECTION OR THE APPLICATION THEREOF TO ANY
 PERSON  OR CIRCUMSTANCE SHALL BE ADJUDGED INVALID BY ANY COURT OF COMPE-
 TENT JURISDICTION, SUCH ORDER OR JUDGMENT SHALL BE CONFINED IN ITS OPER-
 ATION TO THE CONTROVERSY IN WHICH IT WAS RENDERED AND SHALL  NOT  AFFECT
 OR  INVALIDATE  THE  REMAINDER  OF ANY PROVISIONS OF THIS SECTION OR THE
 APPLICATION OF ANY PART THEREOF TO ANY OTHER PERSON OR CIRCUMSTANCE  AND
 TO  THIS  END  THE  PROVISIONS OF THIS SECTION ARE HEREBY DECLARED TO BE
 SEVERABLE.
   § 2. This act shall take effect immediately.

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Senate Bill S8938

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Sponsored By

Timothy M. Kennedy