H.F. _____ Section 1. NEW SECTION . 358D.1 Definitions. 1 As used in this chapter, unless the context requires 2 otherwise: 3 1. “Activities” includes but is not limited to all of the 4 following that benefit lodging businesses in the district: 5 a. Promotion of public events. 6 b. Promotion of tourism within the district. 7 c. Promotion of business activities. 8 d. Marketing and tourism-related economic development, 9 including but not limited to lodging business retention and 10 recruitment. 11 e. Workforce development. 12 f. Other services provided for the purpose of conferring 13 benefits upon assessed lodging businesses located in the 14 district. 15 2. “Assessment” means a levy for the purpose of acquiring, 16 constructing, installing, or maintaining improvements and 17 providing activities that will provide certain benefits to 18 lodging businesses located within a self-supported tourism 19 improvement district. 20 3. “Benefit zone” means a subunit of a district plan that 21 may have a different assessment. 22 4. “Clerk” means the city clerk, township clerk, or 23 an employee of a county designated by the county board of 24 supervisors. 25 5. “District” means a means a self-supported tourism 26 improvement district established pursuant to this chapter. 27 6. “District plan” or “plan” means a plan that complies with 28 section 358D.3, subsection 3. 29 7. “Hosting platform” means a person or entity who collects 30 or receives a fee, directly or indirectly, for conducting a 31 booking transaction using any medium of facilitation, including 32 an internet-based platform. 33 8. “Improvement” means the acquisition, construction, 34 installation, or maintenance of any tangible property with an 35 -1- LSB 6567YC (1) 91 jm/jh 1/ 15

H.F. _____ estimated useful life of five years or more designed to benefit 1 assessed lodging businesses. 2 9. “Local governing body” means the city council of a city, 3 the board of supervisors of a county, or the board of trustees 4 of a township. 5 10. “Lodging” means the same as defined in section 423A.2. 6 11. “Lodging business” means any type of business engaged 7 in lodging. 8 12. “Lodging business owner” or “owner” means any person 9 recognized by the municipality as the owner of the lodging 10 business. The local governing body has no obligation to obtain 11 other information as to the ownership of the lodging business, 12 and the municipality’s determination of ownership shall be 13 final and conclusive for the purposes of this subsection. 14 Wherever this chapter requires the signature of the lodging 15 business owner, the signature of the authorized agent of the 16 lodging business owner shall be sufficient. 17 13. “Municipality” means a city, county, or township. 18 14. “Ordinance” means an ordinance adopted by a city or 19 county or a resolution adopted by a township. 20 15. “Owners’ association” means a private nonprofit 21 corporation that is under contract with a municipality to 22 administer or implement improvements and activities specified 23 in the district plan. An owners’ association may be an 24 existing nonprofit corporation or a newly formed nonprofit 25 corporation. An owners’ association is a private entity and 26 shall not be considered a public entity for any purpose, nor 27 shall the owners’ association’s board members or staff be 28 considered to be public officials for any purpose. If an 29 existing nonprofit corporation is designated as the owners’ 30 association, the existing nonprofit corporation shall establish 31 a self-supported tourism improvement district committee 32 comprised solely of lodging business owners paying the 33 self-supported tourism improvement district assessment, which 34 shall manage the expenditure of revenues derived from the levy 35 -2- LSB 6567YC (1) 91 jm/jh 2/ 15

H.F. _____ of assessments, pursuant to this chapter. If a newly formed 1 nonprofit corporation is designated as the owners’ association, 2 the board of directors must be comprised entirely of lodging 3 business owners paying the self-supported tourism improvement 4 district assessment. 5 Sec. 2. NEW SECTION . 358D.2 Authorization. 6 A local governing body which proposes to create a district, 7 to provide for its existence and operation, to provide for 8 activities or improvements for the district, to authorize and 9 issue bonds for the purposes of the district, and to levy the 10 assessments authorized by this chapter must do so in accordance 11 with the provisions of this chapter. 12 Sec. 3. NEW SECTION . 358D.3 Establishment of district. 13 1. Districts may be created by action of the local governing 14 body in accordance with the provisions of this chapter. All of 15 the following shall apply to a district, as applicable: 16 a. A city or township shall not establish a district within 17 the unincorporated area of a county without the consent of the 18 board of supervisors of the county. A city or township shall 19 not establish a district within the jurisdiction of another 20 city or township without the consent of that city council or 21 board of township trustees. A county shall not establish a 22 district within the jurisdiction of another county without 23 the consent of that county’s board of supervisors. However, 24 a county may establish a district within a city or township 25 located within the county without requiring consent from the 26 city council or board of township trustees. 27 b. The boundaries of a district created pursuant to this 28 chapter may overlap with other districts established pursuant 29 to other provisions of law, or other districts created in this 30 chapter. 31 c. The local governing body may establish one or more 32 separate benefit zones within the district based upon the 33 degree of benefit derived from the improvements or activities 34 to be provided within the benefit zone, and may impose a 35 -3- LSB 6567YC (1) 91 jm/jh 3/ 15

H.F. _____ different assessment within each benefit zone. The local 1 governing body may also define categories of lodging businesses 2 based upon the degree of benefit that each will derive from the 3 improvements or activities to be provided within the district 4 and may impose a different assessment or rate of assessment 5 on each category of lodging business, or on each category of 6 lodging business within each zone. 7 d. The local governing body may levy assessments on lodging 8 businesses pursuant to this chapter. The local governing body 9 shall structure the assessments as a fixed amount, rate per 10 transaction, fixed rate per transaction per day, percentage of 11 sales, any combination of these methods, or in whatever manner 12 it determines corresponds with the distribution of benefits 13 from the proposed improvements and activities. 14 e. The collection of the assessments levied pursuant to 15 this chapter shall be made at the time and in the manner set 16 forth by the local governing body in the ordinance levying the 17 assessment. All assessments levied pursuant to this chapter 18 may be subject to interest and penalties. 19 f. Assessments levied pursuant to this chapter shall be 20 levied on the basis of the estimated benefit to the lodging 21 businesses within the self-supported tourism improvement 22 district. 23 g. District funds allocated for the activities and 24 improvements in the plan are intended to be supplemental to 25 existing funding for tourism promotion. The municipality shall 26 not reduce any existing funding as a result of a self-supported 27 tourism improvement district. 28 2. Upon the submission of a written petition, signed by 29 the lodging business owners in the proposed district who will 30 pay more than fifty percent of the assessments proposed to be 31 levied, the local governing body shall conduct a public hearing 32 on the establishment or extension of the self-supporting 33 tourism improvement district. The petition must include a 34 summary of the district plan. That summary must include all 35 -4- LSB 6567YC (1) 91 jm/jh 4/ 15

H.F. _____ of the following: 1 a. A map showing the boundaries of the district. 2 b. Information specifying where the complete district plan 3 may be obtained. 4 c. Information specifying that the complete district plan 5 shall be furnished upon request. 6 3. The district plan must include but is not limited to all 7 of the following: 8 a. A map of the district in sufficient detail to locate each 9 lodging business within the district. The map must identify 10 the district boundaries in sufficient detail to allow a lodging 11 business owner to reasonably determine whether a lodging 12 business is located within the district boundaries. 13 b. The name of the proposed district. 14 c. A description of the boundaries of the district, 15 including the boundaries of benefit zones, proposed for 16 establishment or extension in a manner sufficient to identify 17 the affected lodging businesses included, which may be made by 18 reference to any plan or map that is on file with the clerk. 19 d. The improvements and activities proposed for each year 20 of operation of the district and the estimated cost. If the 21 improvements and activities proposed for each year of operation 22 are the same, a description of the first year’s proposed 23 improvements and activities and a statement that the same 24 improvements and activities are proposed for subsequent years 25 shall satisfy the requirements of this paragraph. 26 e. The total estimated annual amount proposed to be expended 27 for improvements or activities, and debt service in each year 28 of operation of the district. The amount may be estimated 29 based upon the assessment rate. If the total annual amount 30 proposed to be expended in each year of operation of the 31 district is not significantly different, the amount proposed 32 to be expended in the initial year and a statement that a 33 similar amount applies to subsequent years shall satisfy the 34 requirements of this paragraph. 35 -5- LSB 6567YC (1) 91 jm/jh 5/ 15

H.F. _____ f. The proposed source or sources of financing, including 1 the proposed method and basis of levying the assessment in 2 sufficient detail to allow each lodging business owner to 3 estimate the amount of the assessment to be levied against the 4 lodging business owner’s lodging business. 5 g. A statement specifying whether bonds will be issued to 6 finance improvements. 7 h. The time and manner of collecting the assessments. The 8 plan may require hosting platforms to collect the assessment. 9 i. The specific number of years in which assessments will 10 be levied. In a new district, the maximum number of years 11 shall be ten. Upon renewal, the maximum number of years shall 12 be twenty. Notwithstanding these limitations, a district 13 created pursuant to this chapter that issues bonds to finance 14 improvements may levy assessments until the maximum maturity of 15 the bonds. The district plan may set forth specific increases 16 in assessments for each year of operation of the district. 17 j. The proposed time for implementation and completion of 18 the district plan. 19 k. Any proposed rules and regulations to be applicable to 20 the district. 21 l. A statement that an owners’ association will administer 22 or implement improvements and activities specified in the 23 district plan. The municipality shall contract with the 24 owners’ association to provide services and improvements. 25 m. Any other item or matter required to be incorporated 26 therein by the local governing body. 27 4. At least thirty days before the hearing pursuant to this 28 chapter, the clerk shall send a notice by mail to the lodging 29 business owners proposed to be assessed. The notice must state 30 the following: 31 a. A general description of the improvements and activities 32 of the district. 33 b. A description of the boundaries of the district, 34 including the boundaries of benefit zones, proposed for 35 -6- LSB 6567YC (1) 91 jm/jh 6/ 15

H.F. _____ establishment or extension in a manner sufficient to identify 1 the affected lodging businesses included, which may be made by 2 reference to any plan or map that is on file with the clerk. 3 c. A description of the proposed assessment rate or method 4 of determining the assessment. 5 d. The time and place when and where the local governing 6 body will hear all complaints or protests made in writing or 7 verbally to the proposed assessments. 8 e. Prominently state the place, date, and time of the local 9 governing body hearing on the establishment of the proposed 10 district. 11 5. A protest may be made orally or in writing by any 12 interested person. Every written protest shall be filed with 13 the clerk at or before the time fixed for the public hearing. 14 The clerk may waive any irregularity in the form or content 15 of any written protest. A written protest may be withdrawn 16 in writing at any time before the conclusion of the public 17 hearing. Each written protest shall contain a description of 18 the lodging business in which the person supporting the protest 19 has an interest in a manner sufficient to identify the lodging 20 business and, if a person is not shown on the official records 21 of the municipality as the owner of the lodging business, the 22 protest shall contain or be accompanied by written evidence 23 that the person supporting the protest is the owner of the 24 lodging business or the authorized agent. A written protest 25 that does not comply with this section shall not be counted 26 in determining a majority protest. If written protests are 27 received from the owners or authorized agents of lodging 28 businesses in the proposed district that will pay fifty percent 29 or more of the assessments proposed to be levied and protests 30 are not withdrawn so as to reduce the protests to less than 31 fifty percent, no further proceedings to levy the proposed 32 assessment against such lodging businesses shall be taken for a 33 period of one year from the date of the finding of a majority 34 protest by the local governing body. 35 -7- LSB 6567YC (1) 91 jm/jh 7/ 15

H.F. _____ 6. At the conclusion of the public hearing to establish the 1 district, the local governing body may adopt, revise, change, 2 reduce, or modify the proposed assessment or the type or types 3 of improvements and activities to be funded with the revenues 4 from the assessments. Proposed assessments may only be revised 5 by reducing all of the assessments. At the public hearing, the 6 local governing body may only make changes in, to, or from the 7 boundaries of the proposed self-supported tourism improvement 8 district that will exclude territory that will not benefit from 9 the proposed improvements and activities. 10 7. If the local governing body, following the public 11 hearing, decides to establish a proposed self-supported tourism 12 improvement district, the local governing body shall adopt an 13 ordinance that shall include but is not limited to all of the 14 following: 15 a. A brief description of the proposed improvements and 16 activities. 17 b. The amount of the proposed assessment. 18 c. A statement on whether bonds will be issued. 19 d. A description of the exterior boundaries of the proposed 20 district, which may be made by reference to any plan or 21 map that is on file with the clerk. The descriptions and 22 statements need not be detailed and shall be sufficient if 23 the descriptions and statements enable an owner to generally 24 identify the nature and extent of the improvements and 25 activities and the location and extent of the proposed 26 district. 27 e. The time and place where the public hearing was held 28 concerning the establishment of the district. 29 f. A determination regarding any protests received. 30 The municipality shall not establish the district or levy 31 assessments if a majority protest was received pursuant to this 32 chapter. 33 g. A statement that the district established by the 34 ordinance shall be subject to any amendments to this chapter. 35 -8- LSB 6567YC (1) 91 jm/jh 8/ 15

H.F. _____ h. A statement that the improvements and activities to be 1 conferred on lodging businesses in the district will be funded 2 by the levy of the assessments. 3 i. A finding that the lodging businesses within the area of 4 the self-supported tourism improvement district will benefit 5 by the improvements and activities funded by the proposed 6 assessments. 7 8. If the lodging business owners or authorized 8 representatives within the proposed district that collectively 9 represent fifty percent or more of the proposed district that 10 will pay fifty percent or more of the assessments proposed 11 to be levied file written objections to the establishment 12 of the district with the clerk of the municipality within 13 thirty days after the ordinance levying the assessment is 14 adopted pursuant to subsection 7, the municipality shall not 15 establish the district or levy assessments. The clerk may 16 waive any irregularity in the form or content of any written 17 objection. A written objection may be withdrawn in writing at 18 any time before the conclusion of the thirty-day period. Each 19 written objection shall contain a description of the lodging 20 business in which the person supporting the objection has an 21 interest in that is sufficient to identify the lodging business 22 and, if a person supporting the objection is not shown on 23 the official records of the municipality as the owner of the 24 lodging business, the objection shall contain or be accompanied 25 by written evidence that the person supporting the objection 26 is the owner of the lodging business or the authorized 27 representative. A written objection that does not comply with 28 this subsection shall not be counted in determining a majority 29 written objection. 30 9. The validity of an assessment levied under this chapter 31 shall not be contested in an action or proceeding unless the 32 action or proceeding is commenced within thirty days after 33 the ordinance levying the assessment is adopted pursuant to 34 this chapter. An appeal from a final judgment in an action 35 -9- LSB 6567YC (1) 91 jm/jh 9/ 15

H.F. _____ or proceeding shall be perfected within thirty days after the 1 entry of judgment. 2 Sec. 4. NEW SECTION . 358D.4 Renewal. 3 1. If a self-supported tourism improvement district 4 expires due to the time limit set pursuant to section 358D.3, 5 subsection 3, a new district plan may be created and the 6 district may be renewed pursuant to this chapter. 7 2. Any district’s term that has expired, or is about to 8 expire in the near future, may be renewed by following the same 9 procedures for the establishment of a district as provided in 10 this chapter. 11 3. Upon renewal, any remaining revenues derived from the 12 levy of assessments, or any revenues derived from the sale of 13 assets acquired with the revenues, shall be transferred to the 14 renewed district. If the renewed district includes additional 15 lodging businesses not included in the prior district, the 16 remaining revenues shall be spent to benefit only the lodging 17 businesses in the prior district. If the renewed district does 18 not include lodging businesses included in the prior district, 19 the remaining revenues attributable to these lodging businesses 20 shall be spent consistent with the prior district plan. 21 4. Upon renewal, a district shall have a term not to 22 exceed twenty years or, if the district is authorized to issue 23 bonds, until the maximum maturity of those bonds. There is no 24 requirement that the boundaries, assessments, improvements, or 25 activities of a renewed district be the same as the original 26 or prior district. 27 Sec. 5. NEW SECTION . 358D.5 Modification. 28 1. The owners’ association may, at any time, request that 29 the local governing body modify the district. Any modification 30 of the district shall be made pursuant to this section. 31 2. Upon the written request of the owners’ association, the 32 local governing body may modify the district after conducting 33 one public hearing on the proposed modifications. 34 3. If the modification includes the levy of a new or 35 -10- LSB 6567YC (1) 91 jm/jh 10/ 15

H.F. _____ increased assessment, the local governing body shall comply 1 with section 358D.3, subsections 4 and 5. 2 4. For modifications that do not include the levy of a new 3 or increased assessment, the clerk shall send a notice of the 4 public hearing on the proposed modification by mail to the 5 lodging business owners proposed to be assessed. The notice 6 must state: 7 a. A general description of the proposed modification. 8 b. The place, date, and time of the local governing body 9 hearing pursuant to, subsection 2, which shall be held at least 10 thirty days after the date of mailing of the notices. 11 5. Any modification shall be reflected in an updated 12 district plan to be on file and available for inspection with 13 the clerk. 14 Sec. 6. NEW SECTION . 358D.6 Bonds. 15 1. a. The local governing body may, by resolution, 16 determine and declare that bonds shall be issued to finance 17 the estimated cost of some or all of the proposed improvements 18 described in the ordinance adopted pursuant to section 358D.3, 19 subsection 7. 20 b. The resolution adopted pursuant to this section shall 21 generally describe the proposed improvements specified in the 22 ordinance adopted pursuant to section 358D.3, subsection 7, set 23 forth the estimated cost of those improvements, and specify the 24 number of annual installments and the fiscal years it will take 25 to pay off the bonds. 26 2. Notwithstanding any other provision of this chapter, 27 assessments levied to pay the principal and interest on any 28 bond issued pursuant to this chapter shall not be reduced 29 or terminated if doing so would interfere with the timely 30 retirement of the debt. 31 Sec. 7. NEW SECTION . 358D.7 Annual reports. 32 1. The owners’ association shall prepare a report for 33 each fiscal year, except the first fiscal year, for which 34 assessments are to be levied and collected to pay the costs 35 -11- LSB 6567YC (1) 91 jm/jh 11/ 15

H.F. _____ of the improvements and activities described in the report. 1 The owners’ association’s first report shall be due three 2 months after the last day of the first year of operation of the 3 district, and on that day each year thereafter the district is 4 in operation. 5 2. The report shall be filed with the clerk and shall refer 6 to the self-supported tourism improvement district by name, 7 specify the fiscal year to which the report applies, and, with 8 respect to that fiscal year, shall contain all of the following 9 information: 10 a. Improvements and activities that were provided in the 11 previous fiscal year. 12 b. An estimate of the cost of providing the improvements and 13 activities for the previous fiscal year. 14 c. The estimated amount of any surplus or deficit from 15 the previous fiscal year. The amount of surplus or deficit 16 shall be calculated based on subtracting the previous year’s 17 expenditures from the revenues of the previous year. 18 d. Any proposed changes to the assessment or improvements or 19 activities that are authorized in accordance with the district 20 plan. 21 3. The local governing body may approve the report as filed 22 by the owners’ association. 23 Sec. 8. NEW SECTION . 358D.8 Repeal. 24 1. Any district established or extended pursuant to the 25 provisions of this chapter, where there is no indebtedness, 26 outstanding and unpaid, incurred to accomplish any of the 27 purposes of the district, may be repealed by the local 28 governing body in either of the following circumstances: 29 a. If the local governing body finds there has been 30 misappropriation of funds, malfeasance, or a violation of law 31 in connection with the management of the district, the local 32 governing body shall provide notice to the public about the 33 hearing on the proposed repeal. 34 b. During the operation of the district, there shall 35 -12- LSB 6567YC (1) 91 jm/jh 12/ 15

H.F. _____ be a thirty-day period each year in which assessed lodging 1 businesses may request repeal of the establishment of the 2 district. The first such period shall begin one year after 3 the date of establishment of the district and shall continue 4 for thirty days. The next such thirty-day period shall begin 5 two years after the date of the establishment of the district. 6 Each successive year of operation of the district shall have 7 such a thirty-day period. Upon the written petition of the 8 owners or authorized representatives of lodging businesses in 9 the district who pay fifty percent or more of the assessments 10 levied during the thirty-day period, the local governing body 11 provide notice of the proposed repeal, and shall hold a hearing 12 about the proposed repeal. 13 2. The local governing body shall hold a public hearing 14 to repeal the district. The notice of the hearing on repeal 15 required by this chapter shall be given by mail to the owner of 16 each lodging business subject to assessment in the district, 17 as appropriate. The municipality shall conduct the public 18 hearing not less than thirty days after mailing the notice to 19 the lodging business owners. 20 3. Upon repeal or expiration without renewal of a district, 21 any remaining revenues, after all outstanding debts are paid, 22 derived from the levy of assessments, or derived from the sale 23 of assets acquired with the revenues, or from bond reserve 24 or construction funds, shall be expended consistent with the 25 district plan. 26 Sec. 9. NEW SECTION . 358D.9 Independent provisions. 27 1. This chapter provides an alternative method of financing 28 certain improvements and activities. The provisions of this 29 chapter shall not affect or limit any other provisions of law 30 authorizing or providing for the furnishing of improvements or 31 activities or the raising of revenue for these purposes. 32 2. Any provision of this chapter that conflicts with any 33 other provision of law shall prevail over the other provision 34 of law as to districts created under this chapter. 35 -13- LSB 6567YC (1) 91 jm/jh 13/ 15

H.F. _____ EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill authorizes a self-supported tourism improvement 4 district (district). 5 The bill allows a levy (assessment) upon lodging businesses 6 for the purpose of acquiring, constructing, installing, or 7 maintaining improvements and providing activities that will 8 provide certain benefits to lodging businesses located within 9 the district. 10 The bill defines “activities” to include promotion of public 11 events, promotion of tourism within the district, promotion 12 of business activities, marketing, workforce development, and 13 other related services. 14 The district is created by action of the local governing body 15 where the district is located. The bill establishes specific 16 criteria including a map of the area that would comprise the 17 district, the rate and structure of the assessment, and the 18 expiration of the district. The assessments shall be assessed 19 on the basis of the estimated benefit to the lodging business 20 within the district. 21 A protest of a district plan may be made by any interested 22 person, and the bill specifies procedures for when a protest is 23 made by a person. 24 If the lodging business owners or their authorized 25 representatives within the proposed district that collectively 26 represent more than 50 percent or more of the assessments to be 27 paid file a written objection, the bill establishes procedures 28 for when such an objection is made. 29 The bill allows a local governing body to modify the 30 district, and establishes procedures for renewal of a district 31 set to expire. 32 The bill allows a local governing body to issue bonds by 33 resolution to finance the estimated costs of the proposed 34 improvements in the district. 35 -14- LSB 6567YC (1) 91 jm/jh 14/ 15