The proposed bill allows cities in Iowa to create self-supported tourism improvement districts (STIDs) to enhance tourism and support lodging businesses in specific areas. It introduces 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 process for local governing bodies to form STIDs, requiring public hearings and petitions from lodging business owners who will be assessed. It also permits the creation of benefit zones within districts, allowing for varying assessment rates based on the benefits received.

Furthermore, the bill includes provisions for the renewal and modification of STIDs, ensuring that any remaining revenues from assessments can be transferred to renewed districts. It mandates public hearings for proposed modifications and allows for various methods of assessment collection. New provisions enable local governing bodies to issue bonds for financing improvements, require annual reports from the owners association on district activities and finances, and set conditions for district repeal. The legislation emphasizes that funds from assessments are intended to supplement, not replace, existing tourism promotion funding, thereby supporting the economic development of Iowa's tourism sector.