Senate, No. 3397 state of new jersey 217th legislature

INTRODUCED JUNE 29, 2017

Sponsored by:

Senator JIM WHELAN

District 2 (Atlantic)

SYNOPSIS

Reallocates portion of tourism fee proceeds in eligible municipality to organization empowered to operate convention center facilities whose mission includes convention and group sales and marketing.

CURRENT VERSION OF TEXT

As introduced.

3. a. Except as provided by P.L.2001, c.221 (C.5:12-173.9 et al.), proceeds from the fees collected in any eligible municipality pursuant to this act shall be paid into a special fund which shall be established and held by the State Treasurer for distribution to the convention center operating authority which is empowered to operate the convention center facilities in the eligible municipality. Amounts in the special fund shall be expended by the convention center operating authority solely for the purpose of promoting tourism, conventions, resorts and casino gaming, if any, in the eligible municipality. Pending this application, monies in the fund shall be invested in accordance with law applicable to the convention center operating authority and the income therefrom shall be credited to the fund.

(cf: P.L.2001, c.221, s.16)

5. The fees under this act shall be collected and administered by the director, notwithstanding the provisions of any other law to the contrary. In carrying out the provisions of this section, the director shall have all the powers granted in P.L.1966, c.30 (C.54:32B-1 et seq.). The director shall determine and certify to the State Treasurer on a monthly basis the amount of revenues collected by the director pursuant to this section on account of the fees imposed pursuant to this act in an eligible municipality which are payable to the convention center operating authority operating convention center facilities in such eligible municipality and to the non-profit corporation for the performance of the functions under an agreement pursuant to subsection b. of section 3 of P.L.1991, c.376 (C.40:48-8.47). The State Treasurer upon the certification of the director and upon the warrant of the State Comptroller, shall pay and distribute on a monthly basis to the convention center operating authority and the non-profit corporation the amount so determined and certified.

(cf: P.L.1991, c.376, s.5)
3. Section 6 of P.L.2001, c.221 (C.5:12-173.14) is amended to read as follows:

6. a. Notwithstanding the provisions of any law, rule or regulation to the contrary, all revenues received from hotel room use fees pursuant to P.L.1991, c.376 (C.40:48-8.45 et seq.), which originate from and are delivered from the casino-hotel facilities of the casino licensee with an approved district project, or of any casino licensee that has the same holding company as the casino licensee with the approved district project, pursuant to a project grant agreement, and in the case of a district project sponsored by the authority, all revenues received from the hotel room use fees which originate from and are delivered from hotel facilities located within the authority sponsored district project and designated as part of the approved district project, and if applicable, from additional hotel rooms that are approved by the authority as part of the district project, shall be paid immediately upon collection to the Department of the Treasury which shall deposit the revenues into the room fund.

b. The revenues required to be deposited in the room fund under subsection a. of this section shall be used for the purposes of the room fund and for the uses prescribed in section 8 of P.L.2001, c.221 (C.5:12-173.16).

c. Notwithstanding the provisions of this section, on and after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) the revenues required to be deposited into the room fund under this section shall be used for district project grant agreements or projects in effect on that effective date under section 8 of P.L.2001, c.221 (C.5:12-173.16), and no future hotel room use fee revenues shall be dedicated for new project grant agreements or new district project grants under the “Casino Reinvestment Development Authority Urban Revitalization Act,” P.L.2001, c.221 (C.5:12-173.9 et seq.).

(cf: P.L.2001, c.221, s.6).

STATEMENT

The CRDA currently funds MeetAC, which is the Atlantic City convention and group sales non-profit corporation tasked with convention sales for the Atlantic City Convention Center, the Atlantic City Film Commission, and the Atlantic City Sports Commission. From 2014 to 2016, MeetAC produced almost 700,000 booked room hotel nights and has booked over $735 million in future economic impact for the City of Atlantic City. In 2016, for every $1.00 in tax revenue invested, MeetAC is returning approximately $35 back to the local Atlantic City economy. From 2016 to 2017, the CRDA cut funding to MeetAC by a million dollars, and from 2017 to their proposed 2018 budget, the CRDA has proposed cutting another $7 million from MeetAC, depleting their budget to just $1 million a year.