BILL NUMBER: S2081

SPONSOR: JORDAN
 
TITLE OF BILL:

An act to amend the general municipal law, in relation to allowing muni-
cipalities to lease naming rights for government owned property

 
PURPOSE:

This bill allows municipalities - counties, cities, towns and villages
an option to lease naming rights for governmentally owned properties and
facilities (examples include but are not limited to waterfront property,
parks, rail-trails, railroad tracks, city buses and stadiums etc.)

 
SUMMARY OF PROVISIONS:

Section 1 amends the general municipal law by adding a new section 99-x
to read as follows; 99-x. Transfer and lease of naming rights.  As used
in this section the term municipality shall mean a county, city, town,
or village.
              

Subsection 2 states that a municipality may enter into a contract to
lease the naming rights of any property owned by such municipality
according to the requirements of this section. The chief executive offi-
cer of the municipality shall be responsible for negotiating the
contract, subject to the ratification of a majority of the members of
the legislative body of such municipality.

Subsection 3 notes the leasing agreement shall be for a period of not
less than one year and not more than five years.

Subsection 4 stipulates prior to the ratification of a contract pursuant
to this section, the legislative body of a municipality shall hold a
public hearing, on notice of at least thirty days, announcing the inten-
tion of such municipality to enter into such a contract with a third
party. A public hearing pursuant to this section shall not be held more
than ninety days prior to such ratification.

Subsection 5 states any transaction described in this section may be
used by such municipality for any lawful municipal purpose.

 
JUSTIFICATION:

The era of the property tax cap in New York State has created new chal-
lenges for many of New York's municipalities, who often struggle to find
extra funds for local projects and expenditures. In today's environment,
local governments are consequently searching for new, innovative and
creative ways of finding revenue streams. It is therefore incumbent upon
the New York state legislature to provide municipalities with options
that would assist revenue generation to fund services and maintain muni-
cipality owned property. Providing the local government with greater
flexibility in leasing naming rights for municipal owned facilities can
generate critical revenues thereby relying less on property tax
increases and the tax cap rate in any given year.

 
LEGISLATIVE HISTORY:

S.3153 (2019-20)
S.3865 (2017-18)

S.295 (2015-16)

S.932 (2013-14)

S.7507 (2011-12)

A.9433 (2009-10)

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act will take effect immediately.