S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6537
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 13, 2023
                                ___________
 
 Introduced by M. of A. McDONALD -- read once and referred to the Commit-
   tee on Local Governments
 
 AN ACT to amend the economic development law, in relation to authorizing
   local municipalities to establish tourism improvement districts
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The economic development law is amended  by  adding  a  new
 article 23 to read as follows:
                                ARTICLE 23
                       TOURISM IMPROVEMENT DISTRICTS
 SECTION 447. DEFINITIONS.
         448. DISTRICT PLAN.
         449. POWERS AND DUTIES.
         450. NOTICE AND HEARING.
         451. ESTABLISHMENT OR EXTENSION OF THE DISTRICT.
         452. PUBLICATION, FILING AND JUDICIAL REVIEW.
         453. AMENDMENTS TO THE DISTRICT PLAN.
         454. EXPENSE OF THE DISTRICT.
         455. EXPENDITURE OF DISTRICT FUNDS.
         456. DISTRICT MANAGEMENT ASSOCIATION.
         457. DISSOLUTION.
         458. SEVERABILITY.
   §  447. DEFINITIONS.   FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "ASSESSMENT" MEANS A LEVY IMPOSED ON BEHALF OF THE  DISTRICT  ON  A
 BUSINESS AS PROVIDED IN THE DISTRICT PLAN.
   2.  "BUSINESS" SHALL BE DEFINED AS A HOTEL, MOTEL, INN, BED AND BREAK-
 FAST OR ANY  LODGING  FACILITY  THAT  PROVIDES  COMMON  HOTEL  SERVICES,
 INCLUDING  HOUSEKEEPING SERVICES AND FOOD SERVICES. "BUSINESS" SHALL NOT
 INCLUDE FREE STANDING SINGLE FAMILY DWELLING UNITS,  INCLUDING  BUT  NOT
 LIMITED TO, BUNGALOWS, COTTAGES, OR CABINS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02937-03-3
              

 A. 6537                             2
 
   3.  "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 IMPROVEMENT DISTRICT ARE NOT REQUIRED TO BE
 CONTIGUOUS.
   4. "BUSINESS ASSESSMENT" MEANS ANY ASSESSMENT MADE  PURSUANT  TO  THIS
 ARTICLE UPON A BUSINESS.
   5.  "BUSINESS  OWNER" MEANS ANY PERSON RECOGNIZED BY A MUNICIPALITY AS
 THE OWNER OF THE BUSINESS.
   6. "DISTRICT" MEANS A TOURISM IMPROVEMENT DISTRICT ESTABLISHED  PURSU-
 ANT  TO  THIS  ARTICLE,  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.
   7. "DISTRICT MANAGEMENT ASSOCIATION" MEANS THE ASSOCIATION ESTABLISHED
 PURSUANT TO SECTION FOUR HUNDRED FIFTY-SIX OF THIS ARTICLE.
   8.  "DISTRICT PLAN" OR "PLAN" MEANS A PROPOSAL AS DESCRIBED IN SECTION
 FOUR HUNDRED FORTY-EIGHT OF THIS ARTICLE.
   9. "LEGISLATIVE BODY" MEANS THE LOCAL LEGISLATIVE BODY  OF  A  MUNICI-
 PALITY EMPOWERED TO ADOPT AND AMEND LOCAL LAWS OR ORDINANCES.
   10. "MUNICIPALITY" MEANS A COUNTY WITHIN THE STATE OF NEW YORK, EXCEPT
 COUNTIES LOCATED WITHIN A CITY WITH A POPULATION OF ONE MILLION OR MORE.
 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.
   11. "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 ARTICLE. 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.
   12. "MUNICIPAL CLERK" MEANS THE CLERK OF THE BOARD OF  SUPERVISORS  OF
 THE  COUNTY  LEGISLATURE  AS  APPOINTED PURSUANT TO SECTION FOUR HUNDRED
 SEVENTY-FIVE OF THE COUNTY LAW.
   § 448. DISTRICT PLAN. 1.  THE LEGISLATIVE BODY SHALL PROVIDE  FOR  THE
 PREPARATION  OF  A  DISTRICT  PLAN.  THE 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;
 A. 6537                             3
 
   (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.
   2. (A) 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.
   (B)  EVERY  EXISTING  DISTRICT  PREVIOUSLY  FORMED  IS DECLARED VALID,
 EFFECTIVE, AND IN COMPLIANCE WITH THIS ARTICLE. SUCH EXISTING  DISTRICTS
 ARE SUBJECT SOLELY TO THE PROVISIONS OF THIS ARTICLE NOTWITHSTANDING ANY
 PROVISION OF PRIOR LAW.
   §  449. POWERS AND DUTIES. 1.  UPON ESTABLISHMENT OF A DISTRICT PURSU-
 ANT TO THE PROVISIONS OF THIS ARTICLE, THE LEGISLATIVE BODY  SHALL  HAVE
 AUTHORITY  TO  EXERCISE  THE  FOLLOWING  POWERS  WITH  RESPECT  TO  SUCH
 DISTRICT, SUBJECT TO THE PROVISIONS OF THIS SECTION:
   (A) 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 ARTICLE;
   (B) 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
   (C) PROVIDE FOR THE OPERATION AND MAINTENANCE OF ANY DISTRICT IMPROVE-
 MENT.
   2. (A) NOTWITHSTANDING ANY PROVISION  OF  LAW  TO  THE  CONTRARY,  ALL
 RIGHTS  OR  BENEFITS,  INCLUDING TERMS AND CONDITIONS OF EMPLOYMENT, AND
 PROTECTION OF CIVIL SERVICE AND  COLLECTIVE  BARGAINING  STATUS  OF  ALL
 EMPLOYEES OF A PUBLIC EMPLOYER SHALL BE PRESERVED AND PROTECTED.
   (B)  NOTHING IN THIS ARTICLE SHALL RESULT IN THE: (I)  DISPLACEMENT OF
 ANY  CURRENTLY  EMPLOYED  WORKER  OR LOSS OF POSITION, INCLUDING PARTIAL
 DISPLACEMENT SUCH AS A REDUCTION IN  THE  HOURS  OF  NON-OVERTIME  WORK,
 WAGES   OR  EMPLOYMENT BENEFITS, OR RESULT IN THE IMPAIRMENT OF EXISTING
 COLLECTIVE BARGAINING AGREEMENTS; (II) TRANSFER  OF  EXISTING DUTIES AND
 FUNCTIONS RELATED TO MAINTENANCE AND OPERATIONS CURRENTLY  PERFORMED  BY
 EXISTING  EMPLOYEES  OF  A  PUBLIC  EMPLOYER TO A CONTRACTING ENTITY; OR
 (III) TRANSFER OF FUTURE DUTIES AND FUNCTIONS  ORDINARILY  PERFORMED  BY
 EMPLOYEES OF A PUBLIC EMPLOYER TO A CONTRACTING ENTITY.
   (C)  EMPLOYEES  PERFORMING  MAINTENANCE AND OPERATIONS OF ANY DISTRICT
 IMPROVEMENT SERVING IN  POSITIONS  IN  NEWLY  CREATED  TITLES  SHALL  BE
 ASSIGNED  TO  THE APPROPRIATE BARGAINING UNIT. NOTHING CONTAINED IN THIS
 ARTICLE SHALL BE CONSTRUED TO AFFECT: (I) THE EXISTING RIGHTS OF EMPLOY-
 EES PURSUANT TO AN EXISTING COLLECTIVE BARGAINING  AGREEMENT;  (II)  THE
 EXISTING  REPRESENTATIONAL  RELATIONSHIPS  AMONG  EMPLOYEE ORGANIZATIONS
 REPRESENTING EMPLOYEES OF PUBLIC  EMPLOYERS;  OR  (III)  THE  BARGAINING
 RELATIONSHIPS BETWEEN PUBLIC EMPLOYERS AND SUCH EMPLOYEE ORGANIZATIONS.
   3.  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.
   4. ASSESSMENTS LEVIED ON BUSINESSES PURSUANT TO THIS ARTICLE SHALL  BE
 LEVIED  ON  THE  BASIS OF THE ESTIMATED BENEFIT TO THE BUSINESSES WITHIN
 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
 A. 6537                             4
 
 TO SUBDIVISION ONE OF THIS SECTION. A MUNICIPALITY IS AUTHORIZED TO FORM
 A  DISTRICT THAT LEVIES ASSESSMENTS ON BUSINESSES LOCATED IN THE MUNICI-
 PALITY, INCLUDING THOSE LOCATED IN A CITY, TOWN AND VILLAGE.
   5. A MUNICIPALITY SHALL BE AUTHORIZED TO FORM A DISTRICT THAT INCLUDES
 OTHER MUNICIPALITIES.
   6.  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 ARTICLE.
   § 450. NOTICE AND HEARING.  1. AFTER THE FILING OF THE  DISTRICT  PLAN
 IN  THE  OFFICE  OF THE MUNICIPAL CLERK PURSUANT TO SECTION FOUR HUNDRED
 FORTY-NINE OF THIS ARTICLE, THE LEGISLATIVE BODY MAY ADOPT A  RESOLUTION
 AND  SHALL ENTER THE SAME IN THE MINUTES OF ITS PROCEEDINGS. THIS RESOL-
 UTION 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.
   2. 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.
   3. 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 SUBDIVISION TWO OF
 THIS SECTION.
   4.  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.
   § 451. ESTABLISHMENT OR EXTENSION OF THE DISTRICT.    1.  NOT  EARLIER
 THAN  THIRTY  DAYS  AFTER  THE  CONCLUSION OF THE LAST DAY OF THE PUBLIC
 HEARING HELD PURSUANT TO SECTION FOUR HUNDRED FIFTY OF THIS ARTICLE, THE
 LEGISLATIVE BODY SHALL DETERMINE:
   (A) WHETHER THE NOTICE OF HEARING FOR ALL HEARINGS REQUIRED TO BE HELD
 WAS PUBLISHED AND MAILED AS REQUIRED BY LAW AND IS OTHERWISE SUFFICIENT;
 A. 6537                             5
 
   (B) 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
   (C)  WHETHER  THE ESTABLISHMENT OR EXTENSION OF THE DISTRICT IS IN THE
 PUBLIC INTEREST.
   2. (A) IF THE LEGISLATIVE BODY SHALL DETERMINE  THE  ESTABLISHMENT  OR
 EXTENSION  OF  THE  DISTRICT  IS  NOT IN THE PUBLIC INTEREST PURSUANT TO
 PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, OR  IF  THE  REQUISITE
 NUMBER  OF  OWNERS  SHALL  HAVE  FILED  THEIR  OBJECTIONS AS PROVIDED IN
 SECTION FOUR HUNDRED FIFTY OF THIS ARTICLE, THE LEGISLATIVE  BODY  SHALL
 ADOPT  A  RESOLUTION  DISAPPROVING THE ESTABLISHMENT OR EXTENSION OF THE
 DISTRICT, STATING THE REASONS FOR ITS DETERMINATION AND ENTER  THE  SAME
 IN  THE  MINUTES  OF ITS PROCEEDINGS.  THEREAFTER NO PLAN FOR THE ESTAB-
 LISHMENT OR EXTENSION OF A DISTRICT TO INCLUDE ANY BUSINESS PROPOSED  TO
 BE  INCLUDED  IN THE DISAPPROVED DISTRICT MAY BE PREPARED AS PROVIDED IN
 SECTION FOUR HUNDRED FIFTY OF THIS ARTICLE UNTIL THE  EXPIRATION  OF  AT
 LEAST ONE YEAR FROM THE DATE OF DISAPPROVAL.
   (B)  IF THE LEGISLATIVE BODY SHALL FIND THAT NOTICE WAS INCORRECTLY OR
 INSUFFICIENTLY GIVEN OR THAT, EXCEPT AS OTHERWISE  PROVIDED  IN  SECTION
 FOUR  HUNDRED  FORTY-EIGHT OF THIS ARTICLE, 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 DETERMI-
 NATION.  IN  THE  RESOLUTION  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
 SECTION  FOUR HUNDRED FORTY-EIGHT OF THIS ARTICLE, ALL OF THE BUSINESSES
 AND ONLY THOSE BUSINESSES AS DEEMED BENEFITED SHALL BE  INCLUDED  WITHIN
 THE  BOUNDARIES  OF  THE PROPOSED DISTRICT OR EXTENSION. BENEFITED BUSI-
 NESSES 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 SECTION FOUR HUNDRED FIFTY OF  THIS  ARTICLE,  EXCEPT  THAT,
 WHERE  BOUNDARIES  ARE TO BE ALTERED, THIS NOTICE SHALL ALSO SPECIFY THE
 MANNER IN WHICH IT IS PROPOSED TO ALTER THE BOUNDARIES OF  THE  PROPOSED
 DISTRICT  OR  EXTENSION.  THE  FURTHER HEARING SHALL BE CONDUCTED IN THE
 SAME MANNER AS THE ORIGINAL HEARING.
   3. IF AND WHEN THE LEGISLATIVE BODY SHALL DETERMINE IN THE AFFIRMATIVE
 ALL OF THE QUESTIONS SET FORTH IN SUBDIVISION ONE OF THIS  SECTION,  AND
 PROVIDED  THAT THE REQUISITE NUMBER OF OWNERS SHALL NOT HAVE OBJECTED AS
 PROVIDED IN SECTION FOUR HUNDRED FIFTY OF THIS ARTICLE, 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.
   4.  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 SECTION FOUR HUNDRED FIFTY OF THIS ARTICLE.
   § 452. PUBLICATION, FILING AND JUDICIAL REVIEW. 1. THE MUNICIPAL CLERK
 SHALL  CAUSE  A  CERTIFIED COPY OF THE LOCAL LAW OF THE LEGISLATIVE BODY
 ADOPTED PURSUANT TO THE  PROVISIONS  OF  THIS  ARTICLE  ESTABLISHING  OR
 EXTENDING  ANY DISTRICT, OR INCREASING THE MAXIMUM TOTAL AMOUNT PROPOSED
 TO BE EXPENDED FOR THE IMPROVEMENT, ACTIVITIES, OR  ADDITIONAL  SERVICES
 IN  ANY  DISTRICT OR EXTENSION, OR CHANGING THE METHOD OF ASSESSMENT, OR
 A. 6537                             6

 AUTHORIZING THE  DISTRICT  TO  INCUR  DEBT  TO  PROVIDE  FOR  ADDITIONAL
 IMPROVEMENTS,  ACTIVITIES,  OR  SERVICES WITHIN THE 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 ESTAB-
 LISHMENT 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.
   2.  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.
   3. THIS LOCAL LAW SHALL BE FINAL AND CONCLUSIVE UNLESS A PROCEEDING TO
 REVIEW  IS  COMMENCED  IN  ACCORDANCE  WITH  THIS  ARTICLE.  ANY  PERSON
 AGGRIEVED BY ANY LOCAL LAW ADOPTED PURSUANT TO  THIS  ARTICLE  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 SUBDIVISION TWO OF THIS
 SECTION.  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.
   § 453. AMENDMENTS TO THE DISTRICT PLAN.  1.  AT  ANY  TIME  AFTER  THE
 ESTABLISHMENT  OR  EXTENSION OF A DISTRICT PURSUANT TO THE PROVISIONS OF
 THIS ARTICLE, THE DISTRICT PLAN UPON WHICH THE ESTABLISHMENT  OR  EXTEN-
 SION  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 ARTICLE.
   2.  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.
   3.  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.
 A. 6537                             7
 
   4. 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
 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 SECTION FOUR HUNDRED FIFTY OF  THIS
 ARTICLE.
   §  454.  EXPENSE  OF  THE  DISTRICT.  1.  THE  EXPENSE INCURRED IN THE
 CONSTRUCTION OR OPERATION OF ANY IMPROVEMENT, ACTIVITIES,  OR  PROVISION
 OF  ADDITIONAL  SERVICES IN A DISTRICT PURSUANT TO THIS ARTICLE SHALL BE
 FINANCED IN ACCORDANCE WITH THE DISTRICT PLAN UPON WHICH THE  ESTABLISH-
 MENT  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 MUNICI-
 PALITY PRIOR TO THE ESTABLISHMENT 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.
   2.  THE  BUSINESS ASSESSMENT LEVIED UPON BENEFITED BUSINESSES PURSUANT
 TO THIS ARTICLE SHALL BE IMPOSED AS PROVIDED IN THE DISTRICT PLAN.
   3. ANY MUNICIPALITY WHICH HAS ESTABLISHED A DISTRICT PURSUANT TO  THIS
 ARTICLE,  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.
   §  455.  EXPENDITURE  OF  DISTRICT FUNDS. THE PROCEEDS OF ANY BUSINESS
 ASSESSMENT IMPOSED PURSUANT TO THIS ARTICLE 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 ARTICLE SHALL BE USED FOR ANY
 PURPOSES OTHER THAN THOSE SET FORTH IN THE DISTRICT PLAN.
   §  456.  DISTRICT MANAGEMENT ASSOCIATION. 1. THERE SHALL BE A DISTRICT
 MANAGEMENT ASSOCIATION FOR EACH DISTRICT  ESTABLISHED  PURSUANT  TO  THE
 PROVISIONS  OF  THIS  ARTICLE, WHICH, IF A NON-PROFIT CORPORATION, SHALL
 PURSUANT TO THE NOT-FOR-PROFIT CORPORATION 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.
   2.  THE  BOARD  OF DIRECTORS OF THE ASSOCIATION MAY INCLUDE, BUT SHALL
 NOT BE  LIMITED  TO,  REPRESENTATIVES  OF  BUSINESS  OWNERS  WITHIN  THE
 DISTRICT.
   3. IN ADDITION TO SUCH OTHER POWERS AS ARE CONFERRED ON IT BY LAW, THE
 DISTRICT MANAGEMENT ASSOCIATION MAY MAKE RECOMMENDATIONS TO THE LEGISLA-
 TIVE  BODY  WITH  RESPECT  TO  ANY  MATTER  INVOLVING OR RELATING TO THE
 DISTRICT.
 A. 6537                             8
 
   § 457. DISSOLUTION. ANY DISTRICT ESTABLISHED OR EXTENDED  PURSUANT  TO
 THE  PROVISIONS  OF  THIS  ARTICLE,  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 MISAPPROPRIATION OF FUNDS, MALFEASANCE, OR A VIOLATION OF
 LAW IN CONNECTION WITH THE MANAGEMENT OF THE DISTRICT. IT SHALL  PROVIDE
 A  NOTICE  OF  A  HEARING  ON  DISESTABLISHMENT PURSUANT TO SECTION FOUR
 HUNDRED FIFTY OF THIS ARTICLE. 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 REPRESENTATIVES, 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 MANAGEMENT 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 ASSESSMENTS, 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 ASSESS-
 MENTS THAT WERE LEVIED.
   § 458. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE OR THE  APPLICA-
 TION  THEREOF TO ANY PERSON OR CIRCUMSTANCE SHALL BE ADJUDGED INVALID BY
 ANY COURT OF COMPETENT JURISDICTION, SUCH ORDER  OR  JUDGMENT  SHALL  BE
 CONFINED  IN  ITS  OPERATION TO THE CONTROVERSY IN WHICH IT WAS RENDERED
 AND SHALL NOT AFFECT OR INVALIDATE THE REMAINDER OF  ANY  PROVISIONS  OF
 THIS  ARTICLE OR THE APPLICATION OF ANY PART THEREOF TO ANY OTHER PERSON
 OR CIRCUMSTANCE AND TO THIS END THE PROVISIONS OF THIS ARTICLE ARE HERE-
 BY DECLARED TO BE SEVERABLE.
   § 2. This act shall take effect immediately.