HB 416 — Relating to the City of Florence; to establish a procedure for the establishment, operation, modification, renewal, and dissolution of tourism improvement districts.

HB416 INTRODUCEDENROLLED 99G0PP-199G0PP-2 By Representative Underwood (N & P) RFD:

02-May-23 2023 Regular Session Page 0 99G0PP-1HB416 05/02/2023Enrolled JCEnrolled, (F)tgwAn 2023-510Act, 23 4 A BILL TO BE ENTITLED AN ACT 8 Relating to the City of Florence;

Page 1 HB416 INTRODUCED (2) AUTHORIZING ORDINANCE.

A levy for the purpose of funding activities and improvements that will provide benefits Page 1 HB416 Enrolled to businesses located within a tourism improvement district.

The city council may create and maintain Page 2 HB416 INTRODUCED tourism improvement districts within its corporate limits pursuant to this act.

(a) Upon receipt of a written petition signed by 60 percent or more of the business owners or authorized representatives of the businesses proposed to be subject to the benefit assessment, the city council may Page 2 HB416 Enrolled initiate proceedings to form a tourism improvement district by adopting a resolution expressing its intention to form a tourism improvement district.

If Page 3 HB416 INTRODUCED the assessment is based on a percentage of gross business revenue, the rate may not be greater than four percent.

Page 3 HB416 Enrolled (c) The resolution of intention described in subsection (a) shall contain all of the following:

95 (2) The estimated amount of the proposed benefit assessment.

(3) A statement describing the businesses within the proposed tourism improvement district that will be subject to 95 the benefit assessment.

Page 4 HB416 INTRODUCED Section 4.

The Page 4 HB416 Enrolled boundaries of a tourism improvement district may overlap with other tourism improvement districts established pursuant to this act.

A business owners' association shall have full Page 5 HB416 INTRODUCED discretion to select the specific activities and improvements within the authorized parameters of the tourism improvement district plan which shall be funded with tourism improvement district benefit assessment revenue, provided that there is a rational relationship between the benefit of the activities and improvements to each business and the assessment amount Page 5 HB416 Enrolled levied on the business.

(6) The source or sources of financing, including the proposed method and basis of levying the assessment, in Page 6 HB416 INTRODUCED sufficient detail to allow each business owner to calculate the amount of the assessment to be levied against his or her business.

If the assessment is based on a percent of gross business revenue, Page 6 HB416 Enrolled then the rate may not be greater than four percent.

(a) If the city council has adopted a resolution of intention to establish or renew a tourism Page 7 HB416 INTRODUCED improvement district and levy a new or increased tourism improvement district benefit assessment, the city council shall hold a public hearing on the establishment or renewal of the tourism improvement district prior to adoption of the authorizing ordinance.

Notice of the public hearing shall be mailed to the owners of the businesses proposed to be subject Page 7 HB416 Enrolled to the benefit assessment.

Any modifications, revisions, reductions, or changes to the proposed tourism improvement district plan Page 8 HB416 INTRODUCED shall be reflected in the tourism improvement district plan prior to the city council's adoption of the ordinance creating or renewing the tourism improvement district.

(a) If the city council, following the public hearing, decides to establish or renew a proposed tourism improvement district, the city council shall adopt an Page 8 HB416 Enrolled authorizing ordinance that shall include, but not be limited to, all of the following:

(8) A statement that the businesses in the tourism improvement district established by the ordinance shall be Page 9 HB416 INTRODUCED subject to any amendments to this act.

(10) A statement that the revenue from the benefit assessment collected in the tourism improvement district shall Page 9 HB416 Enrolled not be used for any purpose other than the purposes specified in the tourism improvement district plan.

(2) Any business owner that will be subject to the proposed benefit assessment may make a protest of the establishment or renewal of a tourism improvement district during the 30-day period after the ordinance is passed and Page 10 HB416 INTRODUCED before the ordinance is effective.

(3) The protest shall be in writing, shall be filed with the city council, shall clearly identify the business owned by the individual who filed the protest, and if the individual is not shown in the city records as the owner of Page 10 HB416 Enrolled the business, the protest shall include documentation that the individual is the owner of the business or the authorized representative.

(a) The collection of the benefit Page 11 HB416 INTRODUCED assessments levied pursuant to this act shall be made at the time and in the manner set forth by the city council in the authorizing ordinance.

A percentage of the benefit assessments will be retained by the city council to offset the Page 11 HB416 Enrolled cost of collection as set forth in the authorizing ordinance.

Page 12 HB416 INTRODUCED The tourism improvement district plan shall not be modified, including the levy of a new or increased benefit assessment, the expansion of the district boundaries, or expansion of the types or classes of business subject to the benefit assessment, except by the request of the business owners' association.

Page 12 HB416 Enrolled (b) Upon the written request of the business owners' association, the city council 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.

(c) The city council shall, prior to the public hearing required by this section, adopt a resolution of intention to Page 13 HB416 INTRODUCED modify.

(a) The business owners' association shall prepare a prospective report for each fiscal year, except the first year, for which benefit assessments are to be levied and Page 13 HB416 Enrolled collected to pay the costs of the activities described in the report.

(d) Within 90 days after the close of the business Page 14 HB416 INTRODUCED owners' association's fiscal year, the business owners' association shall have an annual audit of its books, accounts, and financial transactions made by a certified public accountant.

The business owners' association's annual audit shall be completed and filed with the city council within 120 days after the close of the business owners' association's Page 14 HB416 Enrolled fiscal year.

(b) During each year of operation of the tourism improvement district, there shall be a 30-day period in which businesses subject to the benefit assessment may request Page 15 HB416 INTRODUCED dissolution of the tourism improvement district.

Upon the written petition of 60 percent or more of business owners or Page 15 HB416 Enrolled their authorized representatives, the city council shall pass a resolution of intention to dissolve the tourism improvement district.

Page 16 HB416 INTRODUCED Section 15.Upon the dissolution or expiration without renewal of a tourism improvement district, any remaining revenues, after all outstanding debts are paid, derived from the levy of benefit 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 Page 16 HB416 Enrolled operating within the tourism improvement district in which benefit assessments were levied by applying the same method and basis that was used to calculate the benefit assessments levied in the fiscal year in which the tourism improvement district is dissolved or expires.

Page 17 HB416 Enrolled ________________________________________________ Speaker of the House of Representatives ________________________________________________ President and Presiding Officer of the Senate House of Representatives I hereby certify that the within Act originated in and was passed by the House 09-May-23.

John Treadwell Clerk Senate 18-May-23 Passed Page 18