An Act establishing tourism improvement districts and tourism improvement district management associations; and providing for powers of counties, for powers of tourism improvement district management associations, for dissolution of tourism improvement district and for annual audit.

PRINTER'S NO. 889
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 783
Session of
2025
INTRODUCED BY ROBINSON, BARTOLOTTA, CULVER, LAUGHLIN, KEARNEY,
MILLER, STEFANO AND HUTCHINSON, JUNE 3, 2025
REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
JUNE 3, 2025
AN ACT
Establishing tourism improvement districts and tourism
improvement district management associations; and providing
for powers of counties, for powers of tourism improvement
district management associations, for dissolution of tourism
improvement district and for annual audit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Tourism
Improvement District Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Authority." A body politic and corporate, created under 53
Pa.C.S. Ch. 56 (relating to municipal authorities).
"Benefited business." A hotel, as defined under section 209
of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971, that is located within a tourism
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improvement district and benefits from tourism improvement
district activities as outlined in the tourism improvement
district plan.
"County." A county located within this Commonwealth.
"Nonprofit corporation." A legal entity that is incorporated
in this Commonwealth and specifies in its charter or bylaws that
no part of the net earnings may benefit a private shareholder or
individual holding an interest in the entity.
"Special assessment fee." The fee assessed on benefited
businesses levied by the county establishing a tourism
improvement district for the purposes of providing tourism
activities.
"Substantial amendment." An amendment to a preliminary plan
or an amendment to a final plan that does any of the following:
(1) Removes or adds tourism activities to be provided in
a tourism improvement district.
(2) Increases expenditures in a tourism improvement
district management association's budget by more than 25% for
a single fiscal year.
(3) Incurs additional indebtedness.
(4) Changes the method for determining the amount of the
special assessment fee.
(5) Change of the tourism improvement district
management association that administers tourism activities
within the tourism improvement district.
(6) Changes the tourism improvement district's
geographic boundary.
(7) Changes the characteristics of a benefited business.
"Total room inventory." The number of rooms available for
occupancy across the benefited business within a tourism
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improvement district.
"Tourism activities." An activity, service or improvement
that provides a benefit to benefited businesses, including any
of the following:
(1) Marketing, sales, event promotion and other
promotional programs designed to increase tourism in a
tourism improvement district.
(2) Funding of special events designed to increase
tourism in a tourism improvement district.
(3) Destination product development activities designed
to improve the visitor experience in a tourism improvement
district.
(4) The personnel and administrative support necessary
to provide tourism activities.
(5) The funding of improvements, including the
acquisition, construction, installation or maintenance
relating to tangible property, with an estimated useful life
of five years or more that is designed to provide benefits to
assessed businesses.
(6) Any other activity, service or improvement that is
designed to increase tourism in a tourism improvement
district.
"Tourism improvement district" or "TID." A geographical area
encompassing benefited businesses as proposed in a tourism
improvement district plan and approved by a county ordinance.
"Tourism improvement district management association" or
"TIDMA." The body that manages a tourism improvement district.
"Tourism improvement district plan." The strategic plan for
tourism activities within a tourism improvement district.
Section 3. Establishment of tourism improvement districts.
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(a) Establishment.--A benefited business may petition and
present a preliminary plan to the county to establish a TID in
the county.
(b) Specific procedures.--
(1) The county shall hold a public hearing for the
purpose of receiving public comment on the preliminary plan
for a proposed TID. At least 30 days prior to the public
hearing the following shall be provided by the county to the
extent reasonably practical to each benefited business
located in the proposed TID via the United States Postal
Service to the last known address on file with the office in
the county that maintains tax assessment records:
(i) A copy of the petition.
(ii) A summary of the preliminary plan.
(iii) Objection procedures.
(iv) Amendment procedures.
(v) The date, location and time of the public
hearing.
(2) Objections to the proposed TID may be filed by
benefited businesses or authorized representatives in
accordance with the following:
(i) Objections shall be in writing, signed by the
benefited business owner or an authorized representative,
and identify the address of the benefited business for
which the objection is being made.
(ii) Objections must be filed in the office of the
chief clerk of the county in which the TID is being
proposed no later than three days prior to a vote by the
county on the ordinance establishing a TID.
(iii) If benefited businesses that make up 40% of
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the total room inventory within the proposed TID file
objections, the county shall be prohibited from enacting
the ordinance establishing the TID.
(c) Contents of preliminary plan.--The preliminary plan
shall include all of the following:
(1) A map indicating the boundaries of the proposed TID.
(2) A written report containing the following
information relating to the proposed TID:
(i) The name.
(ii) A detailed description of the geographic
boundaries.
(iii) A list of proposed tourism activities and
their estimated cost.
(iv) The characteristics of a benefited business.
(v) A proposed budget for the first fiscal year,
including:
(A) A reimbursement to the county for the
mailing of a notice required under this act.
(B) Tourism activities.
(vi) A proposed plan for the use of funds for the
upcoming five years.
(vii) The proposed revenue sources for financing all
proposed tourism activities.
(viii) The estimated time for implementation and
completion of all proposed tourism activities.
(ix) A statement identifying the TIDMA that will
administer the proposed TID.
(x) The method for determining the amount of the
special assessment fee to be levied, which may be based
on a percentage of gross rental revenue or a fixed rate
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per occupied room per night. The fee may be placed on the
transaction receipt and shall be collected by the
benefited businesses and remitted to the county.
(3) Draft statements of duties between the county and
the TIDMA that include the following:
(i) respective duties and responsibilities of the
county and the TIDMA;
(ii) a requirement that the county maintains the
same level of programs and services provided within the
proposed TID related to tourism after TID enactment;
(iii) a requirement that district funds for tourism
activities are intended to be supplemental to existing
funding for tourism in a county so that a county shall
not reduce the existing tourism funding as a result of
the formation of a tourism improvement district; and
(iv) a requirement that the county shall collect all
special assessment fees levied within the proposed TID.
The county may charge an administrative fee not to exceed
4% of the total special assessment fees collected in any
fiscal year for a given TID. A county shall collect the
fees and deposit the revenues received from the fee in a
special fund established for that purpose. The county
shall remit the fees, less the county's administrative
fee, to the TIDMA not later than 60 days after receipt of
the revenues.
(d) Final plan.--Prior to the establishment of a proposed
TID, the county shall provide the final plan to the office of
the chief clerk for the county. The final plan shall incorporate
amendments made to the preliminary plan based on comments from
benefited business owners or their authorized representatives
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provided at the public hearings or at some other time prior to
approval of the final plan. At least 30 days prior to the vote
by the county on the ordinance establishing the TID, the county
shall make the final plan available on the county's publicly
accessible Internet website.
(e) Additional public hearing for substantial amendment to
preliminary plan.--If the final plan includes a substantial
amendment from the preliminary plan, prior to voting on the
ordinance establishing the proposed TID, the county shall hold
at least one public hearing for the purpose of receiving public
comment on a substantial amendment to the preliminary plan and
contained in the final plan. Notice of the hearing shall follow
procedures outlined in subsection (b).
(f) Amendments to approved final plan.--The following shall
apply to amendments to an approved final plan:
(1) A substantial amendment to the final plan may only
be proposed by a TIDMA to a county upon the recommendation of
a two-thirds majority of the TIDMA board.
(2) A substantial amendment to the final plan shall only
be adopted by a county following the submission of the
proposed substantial amendment by a TIDMA and completion of
all of the following:
(i) At least 30 days prior to the vote on the
substantial amendment to the final plan, the county shall
hold at least one public hearing for the purpose of
receiving public comment on the substantial amendment to
the final plan. Notice of the hearing shall follow
procedures outlined in subsection (b).
(ii) For changes to a TID's service area boundary,
each benefited business proposed to be added to the TID
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shall be notified at least 30 days prior to the public
hearing provided for under subparagraph (i). The notice
shall be provided via the United States Postal Service to
the last known address on file with the county tax
collectors office. The notice shall contain the date,
time and location of the public hearing and instructions
on how to access a copy of the final approved plan and
proposed substantial amendment. At the county's
discretion, the county may add a physical copy of the
final plan and proposed substantial amendment to the
notice.
(iii) Objections to the proposed substantial
amendment to the final plan may be filed by benefited
businesses or authorized representatives located within
the TID and the proposed expanded TID service area
boundary in accordance with the following:
(A) Objections shall be in writing, signed by
the benefited business owner or an authorized
representative and identify the address of the
benefited business for which the objection is being
made.
(B) Objections must be filed in the office of
the chief clerk of the county in which the TID is
being proposed no later than three days prior to a
vote by the county on the substantial amendment to
the final plan.
(C) If benefited businesses that make up 40% of
the total room inventory within the proposed TID or
the proposed expanded TID service area boundary file
objections, the county shall be prohibited from
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adopting the substantial amendment to the final plan.
(iv) Within 30 days from the public hearing provided
under subparagraph (i), the county may approve or
disapprove the substantial amendment to the final plan.
If approved, the substantial amendment to the final plan
shall take effect upon the date of the approval if not
otherwise specified in the final plan.
Section 4. Powers of counties.
Each county shall have the power to:
(1) Establish within the county an area or areas
designated as a TID. The following shall apply to the
establishment of a TID:
(i) A county may establish multiple TIDs within the
boundaries of the county.
(ii) A county may establish a TID that only includes
certain classifications of benefited businesses,
including total room inventory.
(iii) A benefited business may not be included in
more than one TID.
(iv) A county may levy a special assessment fee on
benefited businesses within the geographic boundaries of
the TID for the purpose of providing tourism activities
as specified in the final plan.
(2) Form a TIDMA by establishing an authority to
administer the TID, designating an existing nonprofit
corporation to administer the TID or creating a new nonprofit
corporation to administer the TID. The TIDMA must be
incorporated as a nonprofit corporation in this Commonwealth
or as an authority.
(3) Acquire, by gift, purchase or eminent domain, land,
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real property or rights-of-way which may be needed for the
purposes of the TID, in accordance with the tourism
improvement district final plan and applicable law.
(4) Form a TID for a minimum initial duration of five
years, after which the TID shall be subject to renewal or
termination by the county.
Section 5. Establishment of tourism improvement district
management associations.
(a) Association designated.--When a county establishes a TID
under this act, a TIDMA shall be designated by the county to
administer tourism activities within the TID according to the
tourism improvement district plan.
(b) Body.--Each TIDMA shall have an administrative body in
accordance with the following:
(1) Where a newly formed nonprofit corporation is
designated as the TIDMA, the certificate of incorporation or
bylaws shall provide that the administrative body shall be
composed only of benefited business owners or authorized
representatives. A representative of the county may have a
seat on the governing board.
(2) Where an existing nonprofit corporation is
designated as the TIDMA, the nonprofit shall create an
administrative body composed only of benefited business
owners or authorized representatives who shall be charged
with managing the funds raised by the district and fulfilling
the obligations of the district plan. A representative of the
county may have a seat on the administrative body.
(3) Where an authority serves as the TIDMA, the
administrative body shall be appointed under 53 Pa.C.S. Ch.
56 (relating to municipal authorities). Notwithstanding 53
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Pa.C.S. Ch. 56, the administrative body of an authority
created to serve as a TIDMA shall be composed only of
benefited business owners or their authorized
representatives. A representative of the county may have a
seat on the administrative body.
Section 6. Powers of tourism improvement district management
associations.
(a) General powers.--A TIDMA, in accordance with the final
plan, shall have the power to:
(1) Sue or be sued, implead or be impleaded, complain
and defend in all courts.
(2) Employ an executive director or administrator and
any necessary supporting staff or contract for the provision
of same.
(3) Prepare planning or feasibility studies or contract
for the preparation of planning or a feasibility study to
determine needed tourism activities or administrative
programs and services within the TID.
(4) Make, conduct or facilitate tourism activities
within a TID.
(5) Purchase, own, construct, renovate, develop,
operate, rehabilitate, manage, sell or dispose of real
property.
(6) Contract with existing businesses and other TIDMAs
or authorities within or outside of the TID.
(7) Appropriate and expend TID funds, including Federal,
State or municipal funds received by the TIDMA in accordance
with specific provisions contained in the final plan and in
accordance with the purposes of the tourism improvement
district plan.
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(b) Special assessment fees.--
(1) Revenues from the special assessment fee shall be
accounted for and used by the TIDMA to provide tourism
activities within the TID in accordance with the purposes of
the tourism improvement district plan. The TIDMA may exempt a
business category or a category based on benefit.
(2) A special assessment fee shall be provided for in
the final plan and comply with the requirements of section
4(1)(iv). If the aggregate amount of all special assessment
fees levied by the county during the year exceeds the
estimated cost of proposed tourism activities for the year,
not including county administrative costs, the fees shall be
carried over and used for tourism activities within the TID
in the next fiscal year.
Section 7. Dissolution of tourism improvement district.
(a) Request for termination.--A written request for the
termination of a TID may be filed by the benefited businesses or
authorized representatives that represent at least 40% of the
total room inventory within the TID. The request shall be filed
in the office of the clerk for the county in which the TID is
located. Upon receipt of a request for termination, the county
shall hold at least one public hearing for the purpose of
receiving public comment before approving a request terminating
the TID. Notice of the hearing shall follow procedures outlined
in section 3(b). If the benefited businesses or authorized
representatives that represent more than 40% of the total room
inventory within the TID do not object to the termination of the
TID in writing to the county within 10 days after the public
hearing and there is no outstanding and unpaid indebtedness
incurred to accomplish a purpose of the TID, the county shall
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pass an ordinance terminating the TID. Ownership in assets of
the TIDMA shall transfer to the county.
(b) Termination by the county.--A TID that does not have
outstanding and unpaid indebtedness incurred to accomplish a
purpose of the TID may be dissolved by an ordinance of the
county if the county finds that there has been misappropriation
of funds, malfeasance or a violation of law in connection with
the management of the TID. Prior to the county enacting an
ordinance terminating a TID, the county shall hold at least one
public hearing to determine by verification or reasonable
certainty if there has been misappropriation of funds,
malfeasance or a violation of law in connection with the
management of the TID. The county shall publish notice of the
public hearing and follow procedures outlined in section 3(b).
Upon approval of the termination by the county, the property
ownership of assets of the TIDMA shall transfer to the county.
Section 8. Annual audit.
A TIDMA shall annually submit:
(1) An independent third-party audit of the income and
expenditures and programmatic information to the clerk of the
county in which the TID is located within 120 days after the
end of each fiscal year.
(2) A copy of the audit to all benefited businesses in
the TID within 120 days after the end of each fiscal year.
Section 9. Effective date.
This act shall take effect in 60 days.
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