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.

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
 1   Providing for establishment of tourism improvement districts,
 2      for governance of tourism improvement districts, for
 3      establishment of tourism improvement district management
 4      associations, for duties of tourism improvement district
 5      management associations, for termination of tourism
 6      improvement districts and for annual audit of tourism
 7      improvement district management associations.
 8      The General Assembly of the Commonwealth of Pennsylvania
 9   hereby enacts as follows:
10   Section 1.   Short title.
11      This act shall be known and may be cited as the Tourism
12   Improvement District Act.
13   Section 2.   Definitions.
14      The following words and phrases when used in this act shall
15   have the meanings given to them in this section unless the
16   context clearly indicates otherwise:
17      "Authority."   A body politic and corporate created under 53
18   Pa.C.S. Ch. 56 (relating to municipal authorities).
19      "Benefited business."    A hotel as defined under section
 1   209(a)(1.4) of the act of March 4, 1971 (P.L.6, No.2), known as
 2   the Tax Reform Code of 1971, which is located within a tourism
 3   improvement district and benefits from tourism improvement
 4   district activities as outlined in the tourism improvement
 5   district plan.
 6      "County."     A county of any class located within this
 7   Commonwealth.
 8      "Final plan."    A final tourism improvement district plan.
 9      "Nonprofit corporation."     A legal entity that is incorporated
10   in this Commonwealth and specifies in its charter or bylaws that
11   no part of the net earnings may benefit a private shareholder or
12   individual holding an interest in the entity.
13      "Preliminary plan."    A preliminary tourism improvement
14   district plan.
15      "Special assessment fee."     A fee imposed on a benefited
16   business and remitted to the county that establishes a tourism
17   improvement district for the purposes of providing tourism
18   activities.
19      "Substantial amendment."     An amendment to a preliminary plan
20   or an amendment to a final plan that does any of the following:
21          (1)     Removes or adds tourism activities provided in a
22      tourism improvement district.
23          (2)     Increases expenditures in a tourism improvement
24      district management association's budget by more than 25% for
25      a single fiscal year.
26          (3)     Incurs additional indebtedness.
27          (4)     Changes the method for determining the amount of the
28      special assessment fee.
29          (5)     Changes the tourism improvement district management
30      association that administers tourism activities within the

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 1      tourism improvement district.
 2          (6)     Changes the tourism improvement district's
 3      geographic boundary.
 4          (7)     Changes the characteristics of a benefited business.
 5      "Total room inventory."    The number of rooms available for
 6   occupancy within a tourism improvement district.
 7      "Tourism activity."    An activity, service or improvement that
 8   provides a benefit to a benefited business, including any of the
 9   following:
10          (1)     Marketing, sales, event promotion and other
11      promotional programs designed to increase tourism in a
12      tourism improvement district.
13          (2)     Funding for special events designed to increase
14      tourism in a tourism improvement district.
15          (3)     Destination product development activities designed
16      to improve the visitor experience in a tourism improvement
17      district.
18          (4)     Personnel and administrative support necessary to
19      provide tourism activities.
20          (5)     Funding for the acquisition, construction,
21      installation or maintenance of tangible property with an
22      estimated useful life of no less than five years.
23          (6)     Any other activity, service or improvement that is
24      designed to increase tourism in a tourism improvement
25      district.
26      "Tourism improvement district" or "TID."    A geographical area
27   encompassing benefited businesses as proposed in a tourism
28   improvement district plan and approved by a county ordinance.
29      "Tourism improvement district management association" or
30   "TIDMA."   The body that manages a tourism improvement district.

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 1      "Tourism improvement district plan."          The strategic plan for
 2   tourism activities within a tourism improvement district.
 3   Section 3.      Establishment of tourism improvement districts.
 4      (a)    Establishment.--A benefited business may petition and
 5   present a preliminary plan to a county to establish a TID in the
 6   county.
 7      (b)    Specific procedures.--
 8             (1)   A county shall hold a public hearing for the purpose
 9      of receiving public comment on a preliminary plan. At least
10      30 days prior to the public hearing under this paragraph, the
11      county shall provide all of the following to the extent
12      reasonably practical to each benefited business located
13      within the proposed TID via the United States Postal Service
14      to the last known address on file with the county tax
15      collection office:
16                   (i)    A copy of the petition.
17                   (ii)    A summary of the preliminary plan.
18                   (iii)    Objection procedures.
19                   (iv)    Amendment procedures.
20                   (v)    The date, location and time of the public
21             hearing.
22             (2)   A benefited business may file an objection to the
23      preliminary plan in accordance with the following:
24                   (i)    The objection shall be in writing and signed by
25             the owner or authorized representative of the benefited
26             business and identify the address of the benefited
27             business for which the objection is being made.
28                   (ii)    The benefited business shall file the objection
29             with the chief clerk of the county no later than three
30             days prior to a vote by the county adopting the

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 1            preliminary plan.
 2            (3)   If benefited businesses that make up 40% of the
 3      total room inventory within the proposed TID file objections
 4      under paragraph (2), the county may not vote to adopt the
 5      preliminary plan.
 6      (c)   Contents of preliminary plan.--The preliminary plan
 7   shall include all of the following:
 8            (1)   A map indicating the boundaries of the proposed TID.
 9            (2)   A written report containing all of the following
10      information regarding the proposed TID:
11                  (i)    The name of the proposed TID.
12                  (ii)    A detailed description of the geographic
13            boundaries of the proposed TID.
14                  (iii)    A list of proposed tourism activities and the
15            estimated cost of the activities.
16                  (iv)    The characteristics of a benefited business.
17                  (v)    A budget for the first fiscal year of the
18            proposed TID, including a budget for all of the
19            following:
20                         (A)    A reimbursement to the county for the
21                  mailing required under this act.
22                         (B)    Tourism activities.
23                  (vi)    A plan for the use of revenue generated from
24            the proposed TID for the upcoming five fiscal years.
25                  (vii)    The revenue sources for financing all proposed
26            tourism activities.
27                  (viii)       The estimated time for implementation and
28            completion of all proposed tourism activities.
29                  (ix)    A statement identifying the TIDMA that will
30            administer the proposed TID.

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 1                  (x)    The method for determining the amount of the
 2            special assessment fee to be imposed, which may be based
 3            on a percentage of gross rental revenue or a fixed rate
 4            per occupied room per night for each benefited business.
 5            (3)   The respective duties of the county and TIDMA
 6      regarding the proposed TID, which shall include all of the
 7      following:
 8                  (i)    Maintaining the same level of programs and
 9            services provided within the county relating to tourism
10            after the adoption of an ordinance establishing the
11            proposed TID.
12                  (ii)    Ensuring that the revenue generated from the
13            proposed TID is used to supplement and not reduce
14            existing funding for tourism in the county prior to the
15            adoption of an ordinance establishing the proposed TID.
16                  (iii)    Collecting the special assessment fee imposed
17            on benefited businesses within the proposed TID.
18      (d)   Public hearings for substantial amendments.--The
19   following shall apply to a substantial amendment to a
20   preliminary plan:
21            (1)   Prior to a vote adopting the substantial amendment,
22      a county shall hold at least one public hearing for the
23      purpose of receiving public comment on the substantial
24      amendment.
25            (2)   At least 30 days prior to a public hearing under
26      paragraph (1), the county shall, to the extent reasonably
27      practical, provide all of the following to each benefited
28      business located within the proposed TID via the United
29      States Postal Service to the last known address on file with
30      the county tax collection office:

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 1                  (i)    A copy of the preliminary plan.
 2                  (ii)    A summary of the substantial amendment.
 3                  (iii)    Objection procedures.
 4                  (iv)    Amendment procedures.
 5                  (v)    The date, location and time of the public
 6            hearing.
 7            (3)   A benefited business may file an objection to the
 8      substantial amendment in accordance with the following:
 9                  (i)    The objection shall be in writing and signed by
10            the owner or authorized representative of the benefited
11            business and identify the address of the benefited
12            business for which the objection is being made.
13                  (ii)    The benefited business shall file the objection
14            with the chief clerk of the county no later than three
15            days prior to a vote by the county to adopt the
16            substantial amendment.
17            (4)   If benefited businesses that make up 40% of the
18      total room inventory within the proposed TID file objections
19      under paragraph (3), the county may not vote to adopt the
20      substantial amendment.
21      (e)   Final plan.--Prior to the establishment of a proposed
22   TID, the county shall provide the final plan to the office of
23   the chief clerk for the county. The county shall ensure that the
24   final plan incorporates amendments made to the preliminary plan
25   based on comments received from each benefited business provided
26   at a public hearing or at any other time prior to approval of
27   the final plan. No less than 30 days prior to the vote by the
28   county establishing the proposed TID, the county shall make the
29   final plan available on the county's publicly accessible
30   Internet website.

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 1      (f)   Substantial amendments to final plan.--The following
 2   shall apply to substantial amendments to an approved final plan:
 3            (1)   A substantial amendment to the final plan may only
 4      be submitted by the prospective TIDMA to the county upon the
 5      recommendation of a two-thirds majority of the governing
 6      board of the TIDMA.
 7            (2)   A substantial amendment to the final plan shall only
 8      be adopted by a county after the submission of the
 9      substantial amendment by the prospective TIDMA. At least 30
10      days prior to the vote on the substantial amendment to the
11      final plan, the county shall hold at least one public hearing
12      for the purpose of receiving public comment on the
13      substantial amendment to the final plan. The county shall, to
14      the extent reasonably practical, provide all of the following
15      to each benefited business located within the proposed TID
16      via the United States Postal Service to the last known
17      address on file with the county tax collection office:
18                  (i)    A copy of the final plan.
19                  (ii)    A summary of the substantial amendment.
20                  (iii)    Objection procedures.
21                  (iv)    Amendment procedures.
22                  (v)    The date, location and time of a public hearing.
23            (3)   A benefited business may file an objection to the
24      substantial amendment in accordance with the following:
25                  (i)    The objection shall be in writing and signed by
26            the owner or authorized representative of the benefited
27            business and identify the address of the benefited
28            business for which the objection is being made.
29                  (ii)    The benefited business shall file the objection
30            with the chief clerk of the county no later than three

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 1            days prior to a vote by the county to adopt the
 2            substantial amendment.
 3            (4)   Except as provided under paragraph (5), no later
 4      than 30 days from the date of a public hearing under
 5      paragraph (2), the county may vote on a substantial amendment
 6      to the final plan. If adopted, the substantial amendment to
 7      the final plan shall take effect upon the date of adoption
 8      unless otherwise specified in the final plan.
 9            (5)   If benefited businesses that make up 40% of the
10      total room inventory within the proposed TID file objections
11      under paragraph (3), the county may not vote to adopt the
12      substantial amendment.
13   Section 4.     Governance of tourism improvement districts.
14      (a)   Governance.--
15            (1)   A county may establish multiple TIDs within the
16      boundaries of the county.
17            (2)   A county may establish a TID that only includes
18      certain classifications of benefited businesses, including
19      classification by total room inventory.
20            (3)   A county shall ensure that a benefited business is
21      not included in more than one TID.
22      (b)   Special assessment fee.--
23            (1)   A county may impose a special assessment fee on a
24      benefited business within the geographic boundaries of a TID
25      for the purpose of providing tourism activities as specified
26      in the final plan.
27            (2)   A benefited business shall collect the special
28      assessment fee and remit the money generated from the fee to
29      the county.
30            (3)   A benefited business may display the special

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 1      assessment fee on each business transaction receipt.
 2            (4)   A county may impose a fee on benefited business not
 3      to exceed 4% of the total special assessment fees collected
 4      by the benefited business in a fiscal year for the purpose of
 5      covering the costs incurred for administration of a TID.
 6            (5)   A county shall deposit the money received from the
 7      special assessment fee, not including the money generated
 8      from the administrative fee imposed under paragraph (4), into
 9      a special fund established for such purpose.
10      (c)   Acquisitions.--A county may acquire, by gift, purchase
11   or eminent domain, land, real property or rights-of-way that may
12   be needed for the purposes of a TID in accordance with the final
13   plan and Federal and State law.
14      (d)   Duration.--A county may establish a TID for an initial
15   duration of five years, which shall be subject to renewal or
16   termination by the county in accordance with this act.
17   Section 5.     Establishment of tourism improvement district
18                  management associations.
19      (a)   Establishment.--A county shall establish a TIDMA,
20   including a governing board, to administer a TID by designating
21   a newly created nonprofit corporation, an existing nonprofit
22   corporation or an authority to administer tourism activities
23   within the TID in accordance with the final plan. The TIDMA
24   shall be incorporated as a nonprofit corporation in this
25   Commonwealth or as an authority.
26      (b)   Administrative bodies.--A TIDMA shall have an
27   administrative body. The following shall apply:
28            (1)   When a newly created nonprofit corporation is
29      designated as the TIDMA, the certificate of incorporation or
30      bylaws shall provide that the administrative body of the

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 1      TIDMA be composed only of owners or authorized
 2      representatives of each benefited business. A representative
 3      of the county may have a position on the governing board of
 4      the TIDMA.
 5            (2)   When an existing nonprofit corporation is designated
 6      as the TIDMA, the administrative body of the TIDMA shall be
 7      composed only of owners or authorized representatives of each
 8      benefited business. The owners or authorized representatives
 9      of each benefited business shall manage the money generated
10      by the TID in accordance with the final plan. A
11      representative of the county may have a position on the
12      governing board of the TIDMA.
13            (3)   When an authority is designated as the TIDMA, the
14      administrative body of the TIDMA shall be appointed under 53
15      Pa.C.S. Ch. 56 (relating to municipal
16      authorities). Notwithstanding 53 Pa.C.S. Ch. 56, the
17      administrative body shall only be composed of owners or
18      authorized representatives of each benefited business. A
19      representative of the county may have a position on the
20      governing board of the TIDMA.
21   Section 6.     Duties of tourism improvement district management
22                  associations.
23      (a)   Duties.--In accordance with a final plan, a TIDMA shall
24   have the following duties:
25            (1)   Participate in a civil or administrative proceeding
26      as a party.
27            (2)   Employ an executive director or administrator and
28      any necessary supporting staff or contract for the provision
29      of necessary supporting staff.
30            (3)   Prepare a planning or feasibility study or contract

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 1      for the preparation of a planning or feasibility study to
 2      determine needed tourism activities or programs and services
 3      within a TID.
 4            (4)   Make, conduct or facilitate tourism activities
 5      within a TID.
 6            (5)   Purchase, own, construct, renovate, develop,
 7      operate, rehabilitate, manage, sell or dispose of real
 8      property.
 9            (6)   Contract with an existing business, authority or
10      other TIDMA within or outside of the TID.
11            (7)   Spend money allocated for a TID, including Federal,
12      State or municipal funds received by the TIDMA in accordance
13      with the final plan.
14      (b)   Special assessment fees.--
15            (1)   A TIDMA shall use the money generated from the
16      special assessment fee to provide tourism activities within a
17      TID in accordance with the final plan.
18            (2)   If the amount of money generated from the special
19      assessment fee during a fiscal year exceeds the cost of the
20      tourism activities within the TID for a fiscal year, not
21      including administrative costs incurred by the county, the
22      money shall be carried over and used for tourism activities
23      within the TID in the next fiscal year.
24   Section 7.     Termination of tourism improvement districts.
25      (a)   Request for termination.--
26            (1)   Benefited businesses that make up 40% of the total
27      room inventory within a TID may file a written request for
28      the termination of the TID.
29            (2)   The benefited business shall file the request with
30      the chief clerk for the county. Upon receipt of a request for

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 1    termination, the county shall hold at least one public
 2    hearing for the purpose of receiving public comment before
 3    voting to terminate the TID. At least 30 days prior to the
 4    public hearing under this paragraph, the county shall, to the
 5    extent reasonably practical, provide all of the following to
 6    each benefited business located in the TID via the United
 7    States Postal Service to the last known address on file with
 8    the county tax collection office:
 9              (i)    A copy of the written request for the
10        termination of the TID.
11              (ii)    Objection procedures.
12              (iii)    Amendment procedures.
13              (iv)    The date, location and time of the public
14        hearing.
15        (3)   A benefited business may file an objection to the
16    written request in accordance with the following:
17              (i)    The objection shall be in writing and signed by
18        the owner or authorized representative of the benefited
19        business and identify the address of the benefited
20        business for which the objection is being made.
21              (ii)    The benefited business shall file the objection
22        with the chief clerk of the county no later than 10 days
23        after the public hearing under paragraph (2).
24        (4)   If benefited businesses that make up 40% of the
25    total room inventory within the TID do not object to the
26    termination of the TID within 10 days after the public
27    hearing under paragraph (2) and there is no outstanding and
28    unpaid indebtedness incurred to accomplish a purpose of the
29    TID, the county shall vote to terminate the TID. Ownership in
30    assets of the TIDMA shall transfer to the county after the

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 1    adoption of an ordinance terminating the TID.
 2    (b)    Termination by county.--
 3           (1)   A county may vote to terminate a TID that does not
 4    have outstanding and unpaid indebtedness incurred to
 5    accomplish a purpose of the TID if the county finds that
 6    there has been misappropriation of funds, malfeasance or a
 7    violation of Federal or State law in connection with the
 8    management of the TID.
 9           (2)   Prior to the county voting to terminate a TID, the
10    county shall hold at least one public hearing to determine by
11    verification or reasonable certainty if there has been
12    misappropriation of funds, malfeasance or a violation of
13    Federal or State law in connection with the management of the
14    TID.
15           (3)   At least 30 days prior to the public hearing under
16    paragraph (2), the county shall, to the extent reasonably
17    practical, provide all of the following to each benefited
18    business located in the TID via the United States Postal
19    Service to the last known address on file with the county tax
20    collection office:
21                 (i)    Objection procedures.
22                 (ii)    Amendment procedures.
23                 (iii)    The date, location and time of the public
24           hearing.
25           (4)   A benefited business may file an objection to the
26    proposed termination in accordance with the following:
27                 (i)    The objection shall be in writing and signed by
28           the owner or authorized representative of the benefited
29           business and identify the address of the benefited
30           business for which the objection is being made.

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 1                   (ii)   The benefited business shall file the objection
 2             with the chief clerk of the county no later than 10 days
 3             after the public hearing under paragraph (2).
 4             (5)   Ownership in assets of the TIDMA shall transfer to
 5      the county after the adoption of an ordinance terminating the
 6      TID.
 7   Section 8.      Annual audit of tourism improvement district
 8                   management associations.
 9      A TIDMA shall annually submit all of the following no later
10   than 120 days after the end of each fiscal year:
11             (1)   An independent third-party audit of the income and
12      expenditures and programmatic information to the chief clerk
13      of the county.
14             (2)   A copy of the audit under paragraph (1) to each
15      benefited business within a TID.
16   Section 9.      Effective date.
17      This act shall take effect in 60 days.




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