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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19 209(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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30 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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30 "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 all of the following to the extent
reasonably practical to each benefited business located
within the proposed TID via the United States Postal Service
to the last known address on file with the county tax
collection office:
(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) A benefited business may file an objection to the
preliminary plan in accordance with the following:
(i) The objection shall be in writing and signed by
the owner or authorized representative of the benefited
business and identify the address of the benefited
business for which the objection is being made.
(ii) The benefited business shall file the objection
with the chief clerk of the county no later than three
days prior to a vote by the county adopting the
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30 preliminary plan.
(3) If benefited businesses that make up 40% of the
total room inventory within the proposed TID file objections
under paragraph (2), the county may not vote to adopt the
preliminary plan.
(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 all of the following
information regarding the proposed TID:
(i) The name of the proposed TID.
(ii) A detailed description of the geographic
boundaries of the proposed TID.
(iii) A list of proposed tourism activities and the
estimated cost of the activities.
(iv) The characteristics of a benefited business.
(v) A budget for the first fiscal year of the
proposed TID, including a budget for all of the
following:
(A) A reimbursement to the county for the
mailing required under this act.
(B) Tourism activities.
(vi) A plan for the use of revenue generated from
the proposed TID for the upcoming five fiscal years.
(vii) The 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.
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30 (x) The method for determining the amount of the
special assessment fee to be imposed, which may be based
on a percentage of gross rental revenue or a fixed rate
per occupied room per night for each benefited business.
(3) The respective duties of the county and TIDMA
regarding the proposed TID, which shall include all of the
following:
(i) Maintaining the same level of programs and
services provided within the county relating to tourism
after the adoption of an ordinance establishing the
proposed TID.
(ii) Ensuring that the revenue generated from the
proposed TID is used to supplement and not reduce
existing funding for tourism in the county prior to the
adoption of an ordinance establishing the proposed TID.
(iii) Collecting the special assessment fee imposed
on benefited businesses within the proposed TID.
(d) Public hearings for substantial amendments.-- The
following shall apply to a substantial amendment to a
preliminary plan:
(1) Prior to a vote adopting the substantial amendment,
a county shall hold at least one public hearing for the
purpose of receiving public comment on the substantial
amendment.
(2) At least 30 days prior to a public hearing under
paragraph (1), the county shall, to the extent reasonably
practical, provide all of the following to each benefited
business located within the proposed TID via the United
States Postal Service to the last known address on file with
the county tax collection office:
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30 (i) A copy of the preliminary plan.
(ii) A summary of the substantial amendment.
(iii) Objection procedures.
(iv) Amendment procedures.
(v) The date, location and time of the public
hearing.
(3) A benefited business may file an objection to the
substantial amendment in accordance with the following:
(i) The objection shall be in writing and signed by
the owner or authorized representative of the benefited
business and identify the address of the benefited
business for which the objection is being made.
(ii) The benefited business shall file the objection
with the chief clerk of the county no later than three
days prior to a vote by the county to adopt the
substantial amendment.
(4) If benefited businesses that make up 40% of the
total room inventory within the proposed TID file objections
under paragraph (3), the county may not vote to adopt the
substantial amendment.
(e) 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 county shall ensure that the
final plan incorporates amendments made to the preliminary plan
based on comments received from each benefited business provided
at a public hearing or at any other time prior to approval of
the final plan. No less than 30 days prior to the vote by the
county establishing the proposed TID, the county shall make the
final plan available on the county's publicly accessible
Internet website.
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30 (f) Substantial amendments to final plan.--The following
shall apply to substantial amendments to an approved final plan:
(1) A substantial amendment to the final plan may only
be submitted by the prospective TIDMA to the county upon the
recommendation of a two-thirds majority of the governing
board of the TIDMA.
(2) A substantial amendment to the final plan shall only
be adopted by a county after the submission of the
substantial amendment by the prospective TIDMA. 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. The county shall, to
the extent reasonably practical, provide all of the following
to each benefited business located within the proposed TID
via the United States Postal Service to the last known
address on file with the county tax collection office:
(i) A copy of the final plan.
(ii) A summary of the substantial amendment.
(iii) Objection procedures.
(iv) Amendment procedures.
(v) The date, location and time of a public hearing.
(3) A benefited business may file an objection to the
substantial amendment in accordance with the following:
(i) The objection shall be in writing and signed by
the owner or authorized representative of the benefited
business and identify the address of the benefited
business for which the objection is being made.
(ii) The benefited business shall file the objection
with the chief clerk of the county no later than three
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30 days prior to a vote by the county to adopt the
substantial amendment.
(4) Except as provided under paragraph (5), no later
than 30 days from the date of a public hearing under
paragraph (2), the county may vote on a substantial amendment
to the final plan. If adopted, the substantial amendment to
the final plan shall take effect upon the date of adoption
unless otherwise specified in the final plan.
(5) If benefited businesses that make up 40% of the
total room inventory within the proposed TID file objections
under paragraph (3), the county may not vote to adopt the
substantial amendment.
Section 4. Governance of tourism improvement districts.
(a) Governance.--
(1) A county may establish multiple TIDs within the
boundaries of the county.
(2) A county may establish a TID that only includes
certain classifications of benefited businesses, including
classification by total room inventory.
(3) A county shall ensure that a benefited business is
not included in more than one TID.
(b) Special assessment fee.--
(1) A county may impose a special assessment fee on a
benefited business within the geographic boundaries of a TID
for the purpose of providing tourism activities as specified
in the final plan.
(2) A benefited business shall collect the special
assessment fee and remit the money generated from the fee to
the county.
(3) A benefited business may display the special
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30 assessment fee on each business transaction receipt.
(4) A county may impose a fee on benefited business not
to exceed 4% of the total special assessment fees collected
by the benefited business in a fiscal year for the purpose of
covering the costs incurred for administration of a TID.
(5) A county shall deposit the money received from the
special assessment fee, not including the money generated
from the administrative fee imposed under paragraph (4), into
a special fund established for such purpose.
(c) Acquisitions.--A county may acquire, by gift, purchase
or eminent domain, land, real property or rights-of-way that may
be needed for the purposes of a TID in accordance with the final
plan and Federal and State law.
(d) Duration.--A county may establish a TID for an initial
duration of five years, which shall be subject to renewal or
termination by the county in accordance with this act.
Section 5. Establishment of tourism improvement district
management associations.
(a) Establishment.--A county shall establish a TIDMA,
including a governing board, to administer a TID by designating
a newly created nonprofit corporation, an existing nonprofit
corporation or an authority to administer tourism activities
within the TID in accordance with the final plan. The TIDMA
shall be incorporated as a nonprofit corporation in this
Commonwealth or as an authority.
(b) Administrative bodies.--A TIDMA shall have an
administrative body. The following shall apply:
(1) When a newly created nonprofit corporation is
designated as the TIDMA, the certificate of incorporation or
bylaws shall provide that the administrative body of the
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30 TIDMA be composed only of owners or authorized
representatives of each benefited business. A representative
of the county may have a position on the governing board of
the TIDMA.
(2) When an existing nonprofit corporation is designated
as the TIDMA, the administrative body of the TIDMA shall be
composed only of owners or authorized representatives of each
benefited business. The owners or authorized representatives
of each benefited business shall manage the money generated
by the TID in accordance with the final plan. A
representative of the county may have a position on the
governing board of the TIDMA.
(3) When an authority is designated as the TIDMA, the
administrative body of the TIDMA shall be appointed under 53
Pa.C.S. Ch. 56 (relating to municipal
authorities). Notwithstanding 53 Pa.C.S. Ch. 56, the
administrative body shall only be composed of owners or
authorized representatives of each benefited business. A
representative of the county may have a position on the
governing board of the TIDMA.
Section 6. Duties of tourism improvement district management
associations.
(a) Duties.--In accordance with a final plan, a TIDMA shall
have the following duties:
(1) Participate in a civil or administrative proceeding
as a party.
(2) Employ an executive director or administrator and
any necessary supporting staff or contract for the provision
of necessary supporting staff.
(3) Prepare a planning or feasibility study or contract
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30 for the preparation of a planning or feasibility study to
determine needed tourism activities or programs and services
within a 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 an existing business , authority or
other TIDMA within or outside of the TID.
(7) Spend money allocated for a TID, including Federal,
State or municipal funds received by the TIDMA in accordance
with the final plan.
(b) Special assessment fees.--
(1) A TIDMA shall use the money generated from the
special assessment fee to provide tourism activities within a
TID in accordance with the final plan.
(2) If the amount of money generated from the special
assessment fee during a fiscal year exceeds the cost of the
tourism activities within the TID for a fiscal year, not
including administrative costs incurred by the county, the
money shall be carried over and used for tourism activities
within the TID in the next fiscal year.
Section 7. Termination of tourism improvement districts.
(a) Request for termination.--
(1) Benefited businesses that make up 40% of the tota l
room inventory within a TID may file a written request for
the termination of the TID.
(2) The benefited business shall file the request with
the chief clerk for the county. Upon receipt of a request for
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30 termination, the county shall hold at least one public
hearing for the purpose of receiving public comment before
voting to terminate the TID. At least 30 days prior to the
public hearing under this paragraph, the county shall, to the
extent reasonably practical, provide all of the following to
each benefited business located in the TID via the United
States Postal Service to the last known address on file with
the county tax collection office:
(i) A copy of the written request for the
termination of the TID.
(ii) Objection procedures.
(iii) Amendment procedures.
(iv) The date, location and time of the public
hearing.
(3) A benefited business may file an objection to the
written request in accordance with the following:
(i) The objection shall be in writing and signed by
the owner or authorized representative of the benefited
business and identify the address of the benefited
business for which the objection is being made.
(ii) The benefited business shall file the objection
with the chief clerk of the county no later than 10 days
after the public hearing under paragraph (2).
(4) If benefited businesses that make up 40% of the
total room inventory within the TID do not object to the
termination of the TID within 10 days after the public
hearing under paragraph (2) and there is no outstanding and
unpaid indebtedness incurred to accomplish a purpose of the
TID, the county shall vote to terminate the TID. Ownership in
assets of the TIDMA shall transfer to the county after the
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30 adoption of an ordinance terminating the TID.
(b) Termination by county.--
(1) A county may vote to terminate a TID that does not
have outstanding and unpaid indebtedness incurred to
accomplish a purpose of the TID if the county finds that
there has been misappropriation of funds, malfeasance or a
violation of Federal or State law in connection with the
management of the TID.
(2) Prior to the county voting to terminate 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
Federal or State law in connection with the management of the
TID.
(3) At least 30 days prior to the public hearing under
paragraph (2), the county shall, to the extent reasonably
practical, provide all of the following to each benefited
business located in the TID via the United States Postal
Service to the last known address on file with the county tax
collection office:
(i) Objection procedures.
(ii) Amendment procedures.
(iii) The date, location and time of the public
hearing.
(4) A benefited business may file an objection to the
proposed termination in accordance with the following:
(i) The objection shall be in writing and signed by
the owner or authorized representative of the benefited
business and identify the address of the benefited
business for which the objection is being made.
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30 (ii) The benefited business shall file the objection
with the chief clerk of the county no later than 10 days
after the public hearing under paragraph (2).
(5) Ownership in assets of the TIDMA shall transfer to
the county after the adoption of an ordinance terminating the
TID.
Section 8. Annual audit of tourism improvement district
management associations.
A TIDMA shall annually submit all of the following no later
than 120 days after the end of each fiscal year:
(1) An independent third-party audit of the income and
expenditures and programmatic information to the chief clerk
of the county.
(2) A copy of the audit under paragraph (1) to each
benefited business within a TID.
Section 9. Effective date.
This act shall take effect in 60 days.
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