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Gov. vetoes ‘fair competition’ legislation

ALBANY — Gov. David A. Paterson on Friday vetoed legislation that would have formed a special committee to study ways of placing state-run and privately owned ski resorts on the same competitive level.

The legislation, dubbed the “Fair Competition Bill,” had the backing of the Greene County Legislature and the owners of Hunter Mountain and Windham Mountain, whose resorts are located close to the state-subsidized Belleayre Resort.

Ski facilities Hunter Mountain and Windham Mountain employ 2,000 workers, support payrolls of $12.5 million together, and pay state and local taxes of $3 million. Their economic impact is estimated to exceed $200 million.

State Senator James L. Seward (R/I/C-Oneonta) said Friday that the governor’s veto the bill likely ends a campaign to lay the groundwork for leveling the playing field for private owners of recreational facilities.

The bill had been approved unanimously by the senate.

The measure would have created a state panel that would evaluate whether government-owned recreational facilities constitute unfair competition to golf, ski, camping and other recreation businesses operated by private entrepreneurs.

“I’m disappointed by the governor’s veto,” Seward said. “Public facilities like state ski areas or golf courses are under no obligation to make a profit, pay workers’ compensation or unemployment insurance, and the bill called for a study — a study — to look at whether public facilities have an unfair edge.

Seward noted that public facilities are funded by the taxpayers, are able to purchase equipment using state contracts, pay no sales taxes and are often exempt from state health or environmental regulations that raise costs for private entities.

In essence, he added, “taxpayers subsidize lower costs for public facilities, which then compete with private operations paying taxes, workers’ comp, and trying to at least break even.”

The bill vetoed by the governor would have established a state commission to examine unfair competition in the outdoor recreation industry. The panel would be charged with evaluating the extent of the competitive edge enjoyed by government facilities and offering recommendations and methods that would promote fair competition.

The outdoor recreation industry is a significant segment of New York’s economy. The state’s private golf, skiing and camping facilities contribute millions of dollars to the economy, pay local property and school taxes, and employ thousands of workers.

Local golf courses and campgrounds swell those numbers. The public ownership of similar facilities, offering cut-rate admissions divorced from the need for a revenue stream needed to sustain them, raises competitive issues that should be examined.

“We need to look at the effect of government competition on the businesses paying property taxes, creating jobs, and supporting our schools,” Seward said.

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