The proposed bill would significantly update current statutes by introducing a comprehensive framework for the establishment and management of Tourism Improvement Areas (TIAs) by municipalities or counties. It would allow governing bodies to create these areas, approve lodging business assessments, and contract with destination marketing organizations for management. Key updates include the introduction of detailed procedures for forming TIAs, such as requirements for petitions, public hearings, and the development of a tourism improvement area plan. The bill also establishes a governance structure requiring an owners' board composed of lodging business owners and outlines the assessment structure, which can be a fixed rate or a percentage of lodging receipts, to be paid to the Arizona Department of Revenue.

Additionally, the bill proposes several specific updates to current law, including the initiation of a 60-day period for joining or withdrawing from the area starting one year after establishment, and a requirement for the destination marketing organization to notify lodging business owners six months prior to the annual dissolution period. It introduces provisions for the dissolution of a TIA based on petitions from lodging business owners, stipulates the use of remaining funds after debts are settled, and clarifies the governing body's authority regarding assessments and amendments to the area’s plan. Notably, it removes the previous requirement for the destination marketing organization to establish lodging business assessments, allowing governing bodies to approve assessment rates upon petition presentation.