The proposed bill seeks to modernize and clarify the existing statutes regarding tourism improvement areas by introducing new provisions and processes. It would authorize the formation of tourism improvement areas based on valid petitions from lodging business owners, require the preparation of a tourism improvement area plan prior to public hearings, and establish guidelines for lodging business assessments, including limits on assessment amounts and collection processes. Additionally, it would remove the prohibition on forming tourism improvement areas in unincorporated territories without county consent and set a maximum term of 10 years for these areas, while ensuring public testimony is considered during the formation process.
Moreover, the bill would amend Title 48 of the Arizona Revised Statutes by adding Chapter 38, which includes definitions for key terms and outlines the procedures for forming and dissolving tourism improvement areas. It mandates that the Destination Marketing Organization (DMO) report assessment amounts to the Department of Revenue and enter into intergovernmental agreements for expense reimbursements. The bill also allows for the renewal of tourism improvement areas with different activities, specifies the process for dissolution, and emphasizes transparency through annual reporting requirements. Overall, these updates aim to enhance tourism and economic development in Arizona by providing a structured framework for local initiatives.