Bill S1393-2011

Enacts the public benefits for professional facilities act

Enacts the "public benefits for professional facilities act"; defines terms; provides that any state or local authority that grants any benefit, for the purpose of construction, reconstruction, repair or rehabilitation of a professional sports facility, shall, as a condition of such benefit, require that at least seven percent of all tickets for each event be sold at prices affordable to residents of the host community.

Details

Actions

  • Jan 4, 2012: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • Jan 7, 2011: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Memo

BILL NUMBER:S1393

TITLE OF BILL: An act to amend the public authorities law, in relation to enacting the "public benefits for professional facilities act"

PURPOSE: The primary purpose of this bill is to provide an accounting of all benefits that any state or local authority has granted for the purpose of construction, reconstruction, repair, or rehabilitation of a professional sports facility to the legislature, and to condition such benefits on an affordable ticket agreement.

SUMMARY OF PROVISIONS: Section One: Title of bill.

Section Two of the bill amends the public authorities law by adding a new title 3-B, Section 2860 which requires that the Empire state development corporation shall publish on its website and provide to the legislature an accounting of all benefits that any state or local authority has granted or obligated itself to grant for the purpose of construction, reconstruction, repair, or rehabilitation of a professional sports facility and requires the Empire State development corporation to publish on its website and provide to the legislature an update of such accounting by February fifteenth of each year. This section also requires state and local authorities to condition any such benefit on an affordable ticket agreement requiring the recipient of the benefit to offer seven percent of tickets sold to any sporting event at affordable prices and limits ticket price increases, in certain circumstances, to no more than two percent annually for the next ten years. Affordable is defined by this section as being within the economic ability of persons whose income is at or below sixty percent of the area median income for a four-person household. Section two also includes anti-scalping provisions to prevent the resale of tickets subject to the agreement at prices above face value.

Section Three: Sets forth the effective date.

JUSTIFICATION: Public authorities often provide enormous subsidies for construction, reconstruction, repair, or renovation of sports facilities. The rationale for providing these subsidies is that the facilities thus created and maintained provide a benefit to the general public. While such benefit may take many forms the basic purpose of these facilities--serving as a venue for spectator sporting events--is often out of reach for New Yorkers with modest means. This bill would make affordable tickets a required part of the public benefit we expect when we subsidize these projects.

LEGISLATIVE HISTORY: 2009-10: S.5382 Referred to Corporations, Authorities & Commissions

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 1393 2011-2012 Regular Sessions IN SENATE January 7, 2011 ___________
Introduced by Sen. PERKINS -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT to amend the public authorities law, in relation to enacting the "public benefits for professional facilities act" THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Short title. This act shall be known and may be cited as the "public benefits for professional facilities act". S 2. Article 9 of the public authorities law is amended by adding a new title 3-B to read as follows: TITLE 3-B PUBLIC BENEFITS FOR PROFESSIONAL FACILITIES SECTION 2860. PROFESSIONAL FACILITIES. S 2860. PROFESSIONAL FACILITIES. 1. NO LATER THAN NINETY DAYS AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL PUBLISH ON ITS WEBSITE AND PROVIDE TO THE LEGISLATURE AN ACCOUNTING OF ALL BENEFITS THAT ANY STATE OR LOCAL AUTHORITY HAS GRANTED OR OBLIGATED ITSELF TO GRANT FOR THE PURPOSE OF CONSTRUCTION, RECONSTRUCTION, REPAIR OR REHABILITATION OF A PROFESSIONAL SPORTS FACIL- ITY. SUCH ACCOUNTING SHALL INCLUDE ALL SUCH BENEFITS GRANTED OR OBLI- GATED TO BE GRANTED AT ANY TIME ON OR AFTER JANUARY FIRST, TWO THOUSAND NINE. THEREAFTER, THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL PUBLISH ON ITS WEBSITE AND PROVIDE TO THE LEGISLATURE AN UPDATE OF SUCH ACCOUNT- ING BY FEBRUARY FIFTEENTH OF EACH YEAR, COVERING THE PERIOD ENDING DECEMBER THIRTY-FIRST OF THE PRECEDING YEAR. ANY STATE OR LOCAL AUTHORI- TY THAT HAS GRANTED OR OBLIGATED ITSELF TO GRANT ANY SUCH BENEFIT SHALL REPORT THE TERMS OF SUCH BENEFIT TO THE EMPIRE STATE DEVELOPMENT CORPO- RATION NO LATER THAN THE EARLIER OF THE DATE THE BENEFIT IS GRANTED OR THE DATE THE BENEFIT IS OBLIGATED TO BE GRANTED.
2. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "BENEFIT" SHALL MEAN ANY DIRECT OR INDIRECT GRANT OF FUNDS, TAX REDUCTIONS, TAX PREFERENCES, SUBSIDIES, PAYMENTS IN LIEU OF ANY TAX OR TAX OBLIGATION, OR ANY OTHER FORM OF PUBLIC SUPPORT. (B) "AFFORDABLE" SHALL MEAN WITHIN THE ECONOMIC ABILITY OF PERSONS WHOSE INCOME IS AT OR BELOW SIXTY PERCENT OF THE AREA MEDIAN INCOME FOR A FOUR-PERSON HOUSEHOLD TO PURCHASE TICKETS WITHOUT ECONOMIC HARDSHIP. (C) "AFFORDABLE TICKET AGREEMENT" SHALL MEAN A BINDING AGREEMENT AMONG THE STATE OR LOCAL AUTHORITY GRANTING A BENEFIT, THE RECIPIENT OF SUCH BENEFIT, AND ANY OTHER PARTY NECESSARY TO GIVE SUCH AGREEMENT EFFECT, THE TERMS OF WHICH ARE PUBLICLY DISCLOSED NOT LESS THAN THIRTY DAYS BEFORE THE STATE OR LOCAL AUTHORITY GRANTS ANY BENEFIT OR UNDERTAKES ANY OBLIGATION TO GRANT SUCH BENEFIT. SUCH AGREEMENT SHALL INCLUDE PROVISIONS TO PREVENT RESALE OF TICKETS SUBJECT TO THE AGREEMENT AT PRICES ABOVE FACE VALUE. 3. ANY STATE OR LOCAL AUTHORITY THAT GRANTS ANY BENEFIT, FOR THE PURPOSE OF CONSTRUCTION, RECONSTRUCTION, REPAIR OR REHABILITATION OF A PROFESSIONAL SPORTS FACILITY, SHALL, AS A CONDITION OF SUCH BENEFIT, REQUIRE THAT AT LEAST SEVEN PERCENT OF ALL TICKETS FOR EACH EVENT BE SUBJECT TO AN AFFORDABLE TICKET AGREEMENT. FURTHERMORE, SUCH BENEFIT SHALL BE CONDITIONED UPON A FACILITY POLICY THAT LIMITS TICKET PRICE INCREASES TO NO MORE THAN TWO PERCENT ANNUALLY FOR THE NEXT TEN YEARS, IF AT ANY TIME IN THE LAST THREE YEARS SEASON OR INDIVIDUAL TICKETS HAVE BEEN OFFERED FOR SALE WITH CUMULATIVE PRICE INCREASES OF MORE THAN THIR- TY PERCENT. S 3. This act shall take effect immediately.

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