The proposed bill allows cities in Iowa to create self-supported tourism improvement districts (STIDs) to enhance tourism and support lodging businesses in designated areas. It introduces new definitions for key terms such as "activities," "assessment," "district," and "owners association," which will aid in the establishment and management of these districts. The bill outlines the procedural requirements for local governing bodies to create STIDs, including obtaining necessary consents, conducting public hearings, and developing district plans that specify the improvements and activities funded by assessments levied on lodging businesses. These assessments can vary based on the benefits received and may be structured as fixed amounts or percentages of sales.

Furthermore, the bill allows for the renewal and modification of existing districts, ensuring continued funding and improvements beyond the initial term. It mandates that any remaining revenues from assessments or asset sales be allocated to benefit lodging businesses in the renewed district. The owners association, a private nonprofit entity, is tasked with administering the district's activities and improvements. New provisions include the ability for local governing bodies to issue bonds for financing improvements, the requirement for annual reports from the owners association, and specific conditions under which a district can be repealed, such as the absence of outstanding debt or findings of misappropriation of funds. Additionally, assessments levied to pay off bonds cannot be reduced or terminated if it would impede timely debt repayment.