The proposed bill authorizes cities in Iowa to create self-supported tourism improvement districts (STIDs) to enhance tourism and support lodging businesses within 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, including obtaining consent from relevant authorities for districts that overlap with other jurisdictions, and details the assessment methods to fund improvements that benefit lodging businesses based on estimated benefits received.

Furthermore, the bill provides a framework 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 managing the district's activities and improvements. The bill also allows local governing bodies to issue bonds for financing, requires annual reports from the owners' association, and establishes conditions for repealing the district if there is misappropriation of funds or a majority of assessed lodging businesses request it. Overall, the bill aims to bolster tourism and economic development in Iowa by providing a structured approach for local governments to support their lodging industries.