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," "benefit zone," and "owners association," which are essential for the operation of these districts. The bill outlines the process for establishing a district, requiring local governing bodies to obtain consent from relevant authorities if the district overlaps with other jurisdictions. It also specifies assessment methods to fund improvements that benefit lodging businesses, ensuring these funds supplement existing tourism promotion efforts.

Furthermore, the bill establishes a framework for the renewal and modification of STIDs, allowing for new district plans upon expiration and enabling the owners association to request changes. It emphasizes public hearings and written petitions from lodging business owners to assess support for the district's establishment or modification. Notably, if lodging business owners representing over fifty percent of the proposed assessments protest, the establishment of the district will be paused for one year. Additional provisions include the local governing body's ability to issue bonds for financing improvements, the requirement for annual reports from the owners association, and stipulations regarding the repeal of the district, all aimed at enhancing tourism and providing structured governance and financial management.