The proposed bill would significantly update current statutes regarding tourism improvement areas (TIAs) by introducing new provisions for their establishment and management. It allows municipalities or counties to create TIAs, approve lodging business assessments, and contract with destination marketing organizations for management. Key updates include detailed procedures for forming TIAs, such as requirements for petitions, public hearings, and the development of a tourism improvement area plan. The bill also caps the initial term of these areas at 10 years, with provisions for renewal, and specifies an assessment structure that can be either a fixed rate or a percentage of lodging receipts, to be paid to the Arizona Department of Revenue.

Additionally, the bill amends the current statutes by establishing a governance structure that includes an owners' board composed of lodging business owners and outlines reporting requirements for the managing organization. It introduces a clear process for joining or withdrawing from a TIA, requiring notification to lodging business owners six months prior to the annual dissolution period. The bill also allows for the dissolution of a TIA upon a petition from lodging business owners representing 50% or more of assessed rooms and mandates that remaining funds after debts are settled be used according to the tourism improvement area plan or refunded to the owners. Notably, it removes the previous requirement for the destination marketing organization to establish assessments, granting governing bodies the authority to approve assessment rates.