Pennsylvania HB 1347: An Act providing for establishment of tourism improvement districts, for governance of tourism improvement districts, for establishment of tourism improvement district management associations, for duties of tourism improvement district management associations, for termination of tourism improvement districts and for annual audit of tourism improvement district management associations.

Bill Text

PRINTER'S NO. 1535
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1347
Session of
2025
INTRODUCED BY CEPEDA-FREYTIZ, DALEY, HILL-EVANS, VENKAT, BURGOS,
ABNEY, GIRAL, NEILSON, BRENNAN, BOROWSKI, SANCHEZ, KAZEEM,
MERSKI, D. WILLIAMS, KENYATTA, STEELE, BELLMON, CERRATO,
RIVERA, HARKINS, O'MARA, GREEN AND CIRESI, APRIL 30, 2025
REFERRED TO COMMITTEE ON TOURISM, RECREATION AND ECONOMIC
DEVELOPMENT, APRIL 30, 2025
AN ACT
Providing for establishment of tourism improvement districts,
for governance of tourism improvement districts, for
establishment of tourism improvement district management
associations, for duties of tourism improvement district
management associations, for termination of tourism
improvement districts and for annual audit of tourism
improvement district management associations.
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
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209(a)(1.4) of the act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, which is located within a tourism
improvement district and benefits from tourism improvement
district activities as outlined in the tourism improvement
district plan.
"County." A county of any class located within this
Commonwealth.
"Final plan." A final tourism improvement district plan.
"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.
"Preliminary plan." A preliminary tourism improvement
district plan.
"Special assessment fee." A fee imposed on a benefited
business and remitted to the county that establishes 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 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) Changes the tourism improvement district management
association that administers tourism activities within the
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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 within a tourism improvement district.
"Tourism activity." An activity, service or improvement that
provides a benefit to a benefited business, 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 for 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) Personnel and administrative support necessary to
provide tourism activities.
(5) Funding for the acquisition, construction,
installation or maintenance of tangible property with an
estimated useful life of no less than five years.
(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.
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"Tourism improvement district plan." The strategic plan for
tourism activities within a tourism improvement district.
Section 3. Establishment of tourism improvement districts.
(a) Establishment.--A benefited business may petition and
present a preliminary plan to a county to establish a TID in the
county.
(b) Specific procedures.--
(1) A county shall hold a public hearing for the purpose
of receiving public comment on a preliminary plan. At least
30 days prior to the public hearing under this paragraph, the
county shall provide al