HB382 Alabama 2020 Session

This bill would establish a procedure for the establishment, operation, modification, renewal, and disestablishment of tourism improvement districts within the state by counties and municipalities

The districts, once created by the governing body of a county or municipality and once the tourism improvement district plan is approved, would be governed by a board of business owners from within the district. The governing body would levy assessments on businesses within the district, the proceeds of which would be remitted to the district board, which would use those funds to implement improvements within the district according to its district plan

Relating to economic development; to establish a procedure for the establishment, operation, modification, renewal, and disestablishment of tourism improvement districts within the state.

Section 1

This act shall be known and may be cited as the Alabama Tourism Improvement Act of 2020.

Section 2

For purposes of this act, the following terms shall have the following meanings: (1) ACTIVITY. Includes, but is not limited to, all of the following that benefit businesses in the tourism improvement district: a. Promotion of public events. b. Furnishing of music in any public place. c. Promotion of tourism within the district. d. Promotion of business activity, including, but not limited to tourism, of businesses subject to the tourism improvement district. e. Marketing, sales, and economic development. f. Other services provided for the purpose of conferring benefits upon businesses located in the tourism improvement district that are subject to the tourism improvement district assessment. (2) ASSESSMENT. A levy for the purpose of providing activities and improvements that will provide benefits to businesses located within a tourism improvement district that are subject to the tourism improvement district assessment. Assessments may be based on a percent of gross business revenue, a fixed dollar amount per transaction, or any other reasonable method based upon benefit, and approved by the authorizing county or municipality. (3) AUTHORIZING RESOLUTION. A resolution, adopted by the governing body of the authorizing county or municipality in accordance with Section 8, that authorizes the formation or renewal of a tourism improvement district and the levying of assessments. (4) AUTHORIZING COUNTY OR MUNICIPALITY. Any county or municipality in the state which, by resolution, has authorized the creation of a tourism improvement district. (5) BUSINESS. Any business establishment of the type or class that is described in the tourism improvement district plan and the authorizing resolution. (6) BUSINESS OWNER. A person recognized by the authorizing county or municipality as the owner of the business. The authorizing county or municipality has no obligation to obtain other information as to the ownership of businesses, and its determination of ownership shall be final and conclusive for the purposes of this act. Wherever this act requires the signature of the business owner, the signature of the authorized representative of the business owner shall be sufficient. (7) BUSINESS OWNERS' ASSOCIATION. A new or existing nonprofit corporation, entity, agency, or public corporation charged with promoting tourism within the area of the tourism improvement district that is under contract with the authorized county or municipality to administer the tourism improvement district and implement activities and improvements specified in the tourism improvement district plan. Where an existing nonprofit corporation, entity, agency, or public corporation is designated by law as the tourism entity for the region or county in which the tourism improvement district shall operate, that nonprofit corporation, entity, agency, or public corporation shall be designated as the Business Owners' Association. (8) IMPROVEMENT. An 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. (9) MUNICIPALITY. Any incorporated municipality in the state, except any Class 2 municipality as defined in Section 11-40-12, Code of Alabama 1975. (10) TOURISM IMPROVEMENT DISTRICT. A tourism improvement district established pursuant to this act. (11) TOURISM IMPROVEMENT DISTRICT PLAN. A plan as prescribed in Section 4.

Section 3

(a) A county or municipal governing body may create a tourism improvement district pursuant to this act. (b) A tourism improvement district may cover areas outside of the corporate limits of a municipality or outside of the unincorporated portions of a county. (c) A county may form a tourism improvement district that assesses any business located within the boundaries of the county, including those businesses located in any municipality, except for a Class 2 municipality, or town that is within the county's borders. A municipality may not form a tourism improvement district assessing any business located within the unincorporated territory of a county without the consent of the governing body of that county. A municipality may not form a tourism improvement district assessing any business located within the corporate limits of another municipality without the consent of the governing body of the other municipality.

Section 4

A tourism improvement district plan shall include, but not be not limited to, all of the following: (1) A map that identifies the tourism improvement district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the tourism improvement district boundaries. The boundaries of a tourism improvement district may overlap with other tourism improvement districts established pursuant to this act. (2) The name of the proposed tourism improvement district. (3)a. The name of the business owners' association. The business owners' association's governing board shall be composed of a majority of business owners, or their representatives, who pay the tourism improvement district assessment. b. The business owners' association shall create a committee composed of a majority of businesses owners, or their representatives, who shall be charged with managing the funds raised by the tourism improvement district and fulfilling the obligations of the tourism improvement district plan. A business owners' association shall have full discretion to select the specific activities and improvements to be funded with tourism improvement district assessment revenue, within the authorized parameters of the tourism improvement district plan. (4) The activities and improvements proposed for each year of operation of the tourism improvement district and the estimated cost thereof. If the activities and improvements proposed for each year of operation are the same, a description of the first year's proposed activities and improvements and a statement that the same activities and improvements are proposed for subsequent years shall satisfy the requirements of this subsection. (5) The estimated annual amount proposed to be expended for activities and improvements during each year of operation of the tourism improvement district. This amount may be estimated based upon the assessment rate. If the estimated annual amount proposed to be expended in each year of operation of the tourism improvement district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subsection. (6) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each business owner to calculate the amount of the assessment to be levied against his or her business. The tourism improvement district plan may set forth increases in assessments for any year of operation of the tourism improvement district. Any new business of the type or class that will be subject to the assessment that commences operations during the tourism improvement district's term shall be subject to the assessment. (7) The time and manner of collecting the assessments and any interest or penalties for non-payment. (8) The specific number of years in which assessments will be levied. In a new tourism improvement district, the maximum number of years shall be 10. In a renewed tourism improvement district, the maximum number of years shall be 20. (9) Any proposed rules to be applicable to the tourism improvement district. (10) A definition describing the type or class of businesses to be included in the tourism improvement district and subject to the tourism improvement district assessment. (11) Any other item or matter required to be incorporated in the plan by the authorizing county or municipality.

Section 5

(a) Upon the submission of a written petition, signed by business owners who will pay more than 50 percent of the assessments proposed to be levied, the governing body of the authorizing county or municipality may initiate proceedings to form a tourism improvement district by the adoption of a resolution expressing its intention to form a tourism improvement district. (b) The petition of business owners required under subsection (a) shall include a summary of the tourism improvement district plan. That summary shall include all of the following: (1) A map showing the boundaries of the tourism improvement district. (2) The types or classes of businesses that will be subject to the assessment. (3) The assessment rate for each type or class of business that will be subject to the assessment. (4) Information specifying where the complete tourism improvement district plan can be obtained. (5) Information specifying that the complete tourism improvement district plan shall be furnished upon request. (c) The resolution of intention described in subsection (a) shall contain all of the following: (1) A brief description of the proposed activities and improvements, the estimated amount of the proposed assessment, a statement describing the businesses within the proposed tourism improvement district that will be subject to the assessment, and a description of the exterior boundaries of the proposed tourism improvement district, which may be made by reference to any plan or map that is on file with the governing body of the authorizing county or municipality. The descriptions and statements do not need to be detailed and shall be sufficient if they enable a business owner to generally identify the nature and extent of the activities and improvements, and the location and extent of the proposed tourism improvement district. (2) A time and place for a public hearing on the establishment of the tourism improvement district and the levy of assessments, which shall be consistent with the requirements of Section 6.

Section 6

(a) If the governing body of the authorizing county or municipality has adopted a resolution of intention to establish or renew a tourism improvement district and levy a new or increased tourism improvement district assessment, it shall hold a public hearing on the establishment or renewal of the tourism improvement district prior to adoption of the authorizing resolution. Notice of the public hearing shall be mailed to the owners of the businesses proposed to be subject to the assessment. (b) The governing body of the authorizing county or municipality shall provide at least 30 days' written notice of the public hearing at which the governing body of the authorizing county or municipality proposes to establish or renew the tourism improvement district and levy the assessment. (c) A protest may be made by any business owner that will be subject to the proposed assessment. Every protest must be in writing and shall be filed with the governing body of the authorizing county or municipality at or before the time fixed for the public hearing. The governing body of the authorizing county or municipality may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested that shall be sufficient to identify the business and, if a person subscribing is not shown on the official records of the authorizing county or municipality as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from business owners who will pay more than 50 percent of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, the authorizing county or municipality shall not levy the assessment.

Section 7

At the conclusion of the public hearing to establish or renew a tourism improvement district, the governing body of the authorizing county or municipality may adopt, revise, change, reduce, or modify the proposed assessments, the boundaries of the tourism improvement district, or the types or classes of businesses within the tourism improvement district that would be subject to the assessment. Proposed assessments may only be revised by reducing any or all of them. The proposed tourism improvement district boundary may only be revised to exclude territory that will not benefit from the proposed activities and improvements. The types or classes of businesses that will be subject to the proposed assessment may only be revised to exclude the business types or classes that will not benefit from the proposed activities and improvements. Any modifications, revisions, reductions, or changes to the proposed tourism improvement district plan shall be reflected in the tourism improvement district plan prior to the governing body's adoption of the resolution creating or renewing the tourism improvement district.

Section 8

(a) If the governing body of the authorizing county or municipality, following the public hearing, decides to establish or renew a proposed tourism improvement district, the governing body shall adopt an authorizing resolution that shall include, but is not limited to, all of the following: (1) A brief description of the proposed activities and improvements, the amount of the proposed assessment, a statement as to the types or classes of businesses that will be subject to the assessment, and a description of the exterior boundaries of the tourism improvement district, which may be made by reference to any plan or map that is on file with the governing body of the authorizing county or municipality. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the activities and improvements and the location and extent of the tourism improvement district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment or renewal of the tourism improvement district. (4) A determination regarding any protests received. The governing body of the authorizing county or municipality shall not establish or renew the tourism improvement district or levy assessments if a majority protest was received. (5) A statement that the businesses in the tourism improvement district established by the resolution shall be subject to any amendments to this act. (6) A statement that the activities and improvements to be conferred on businesses in the tourism improvement district will be funded by the proceeds of assessments. The revenue from the assessments within a tourism improvement district shall not be used for any purpose other than the purposes specified in the tourism improvement district plan, as authorized or modified by the governing body of the authorizing county or municipality at the hearing concerning establishment or renewal of the tourism improvement district. (7) A finding that the businesses within the tourism improvement district will benefit from the activities and improvements funded by the tourism improvement district assessments. (b) The adoption of the authorizing resolution shall constitute the levy of assessments in each of the years referred to in the tourism improvement district plan.

Section 9

If a tourism improvement district expires due to the time limit set in subdivision (7) of Section 4, a new tourism improvement district plan may be created and the tourism improvement district may be renewed pursuant to this act. Section 10. The collection of the assessments levied pursuant to this act shall be made at the time and in the manner set forth by the governing body of the authorizing county or municipality in the authorizing resolution. All delinquent payments for assessments levied pursuant to this act may be charged interest and penalties. Section 11. The validity of an assessment levied under this act shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the authorizing resolution is adopted pursuant to Section 8. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment. Section 12. Prior to the establishment of a tourism improvement district, the governing body of the authorizing county or municipality may certify the baseline levels of services and funding that will continue after a tourism improvement district has been formed. The tourism improvement district is intended to provide supplemental funding and services and not to supplant existing funding or services. Section 13. The validity of an assessment levied under this act shall not be contested in any action or proceeding unless the action or proceeding is commenced within ays after the authorizing resolution is adopted pursuant to Section 8. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment. Section 14. Prior to the establishment of a tourism improvement district, the governing body of the authorizing county or municipality may certify the baseline levels of services and funding that will continue after a tourism improvement district has been formed. The tourism improvement district is intended to provide supplemental funding and services, not supplant existing funding or services. Section 15. The business owners' association, at any time, may request that the governing body of the authorizing county or municipality modify the tourism improvement district plan. Any modification of the tourism improvement district plan shall be made pursuant to this act. The tourism improvement district plan shall not be modified, except by the request of the business owners' association and only in the manner requested by the business owners' association. Section 16. (a) Upon the written request of the business owners' association, the governing body of the authorizing county or municipality may modify the tourism improvement district plan by adopting a resolution determining to make the modifications after conducting one public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment or the expansion of the tourism improvement district's geographic boundaries, the governing body of the authorizing county or municipality shall comply with the procedures required by Section 6. Notice of all other public hearings pursuant to this section shall comply with both of the following: (1) The resolution of intention to modify shall be published in a newspaper of general circulation in the authorizing county or municipality once at least seven days before the public hearing. (2) A complete copy of the resolution of intention to modify shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner affected by the proposed modification. (b) The governing body of the authorizing county or municipality shall adopt a resolution of intention to modify which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention to modify. Section 17. (a) The business owners' association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the activities described in the report. The owners' association's first report shall be due 90 days after the first year of operation of the tourism improvement district. (b) The report shall be filed with the governing body of the authorizing county or municipality and shall refer to the tourism improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information: (1) The activities and improvements to be provided for that fiscal year. (2) An estimate of the cost of providing the activities and improvements for that fiscal year. (3) The method and basis of levying the assessments in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year. (4) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. (c) The governing body of the authorizing county or municipality may approve the report as filed by the business owners' association or may make recommendations for approval to the annual report within 45 days of receiving the annual report. The annual report shall be final and approved within ays following its submission by the owners' association to the governing body of the authorizing county or municipality. Section 18. (a) Any tourism improvement district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this act. (b) Upon renewal, any remaining revenues derived from assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed tourism improvement district. (c) There is no requirement that the boundaries, assessments, activities, or improvements of a renewed tourism improvement district be the same as the original or prior tourism improvement district. Section 19. (a) A tourism improvement district established or extended pursuant to this act may be disestablished by resolution by the governing body of the authorizing county or municipality pursuant to this section when there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the tourism improvement district, and when either of the following circumstances apply: (1) The governing body of the authorizing county or municipality finds there has been misappropriation of funds or other malfeasance. (2) The governing body of the authorizing county or municipality finds there has been a violation of law in connection with the management of the tourism improvement district. (b) During each year of operation of the tourism improvement district, there shall be a 30-day period in which businesses subject to the assessment may request disestablishment of the tourism improvement district. The first period shall begin two years after the date of establishment of the tourism improvement district and shall continue for 30 days. Each successive year of operation of the tourism improvement district shall have such a 30-day period. Upon the written petition of business owners who will pay more than 50 percent of the assessments proposed to be levied, the governing body of the authorizing county or municipality shall pass a resolution of intention to disestablish the tourism improvement district. The governing body of the authorizing county or municipality shall give public notice of any hearing on disestablishment. (c) The governing body of the authorizing county or municipality shall adopt a resolution of intention to disestablish the tourism improvement district prior to the public hearing required by this section. The resolution shall state the reason for the potential disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the tourism improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the owner of each business subject to assessments in the tourism improvement district. The governing body of the authorizing county or municipality shall conduct the public hearing not less than 30 days after mailing the notice to the business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. At the conclusion of the public hearing, the governing body of the authorizing county or municipality shall adopt a resolution disestablishing the tourism improvement district. Section 20. Upon the disestablishment or expiration without renewal of a tourism improvement district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, shall be spent in accordance with the tourism improvement district plan or shall be refunded to the owners of the businesses then located and operating within the tourism improvement district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the tourism improvement district is disestablished or expires. Section 21. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.