New Jersey Senate Bill S4124

New Jersey 2022-2023 Regular Session

• Introduced: 11/30/23
• Refer: 11/30/23

Caption

Modifies municipal Tourist Development Commission advertising disbursement requirement for advertising outside municipality.

Impact

The revised disbursement requirement under S4124 is aimed at providing municipalities with greater flexibility in utilizing their resources for tourism promotion. By allowing commissions to allocate funds as they see fit, this bill could lead to more effective advertising strategies tailored to current market dynamics. The intention is to enhance local tourism efforts and, in turn, bolster economic development within the municipalities. However, this change may also lead to concerns regarding the effectiveness of advertising and whether sufficient resources will still be directed towards attracting external visitors.

Summary

Senate Bill S4124 modifies the existing advertising disbursement requirements for municipal Tourist Development Commissions in New Jersey. Traditionally, at least 50 percent of the revenue allocated to these commissions was mandated to be spent on advertising outside the municipality to attract tourists. This bill proposes to change that stipulation by allowing the commission to determine what percentage of the revenue should be used for external advertising. This shift reflects the evolving landscape of advertising resulting from technological advancements since the bill's original enactment in 1982.

Contention

One point of contention stemming from Bill S4124 is the potential reduction in funds allocated for advertising outside the municipality. While supporters argue that local commissions are better equipped to make autonomous decisions regarding their fiscal strategies, opponents may worry that this autonomy could result in insufficient outreach to potential tourists from other areas. Furthermore, the bill raises questions about the long-term impacts on state tourism efforts and whether the new guidelines will adequately serve the diverse needs of different municipalities.