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Committee advances bill to let counties authorize tourism improvement districts
Summary
The House committee reported House Bill 13 47 out of committee, a measure that would allow counties to permit lodging businesses to form tourism improvement districts to fund local destination marketing and events through a small assessment on room nights.
Representative Espita Freitas, sponsor of House Bill 13 47, told the House Tourism & Economic & Recreational Development Committee on Monday that the measure would give counties authority to allow local lodging businesses to form tourism improvement districts, or TIDs, if they choose.
"HB 13 47 is simply enabling legislation. It doesn't mandate anything. It simply gives counties the authority to allow local lodging businesses, hotels, inns, motels to form a tourism improvement district if they choose," Representative Espita Freitas said.
The nut graf: The bill would let a majority of lodging businesses in a defined area petition a county to form a TID; if approved, a small assessment on room nights would fund destination marketing, events and hospitality-related development. Management would be local, overseen by a nonprofit management association, and subject to annual audits and reporting.
Under the proposal, the assessment would be industry-funded rather than paid from general tax revenues. "This program is entirely industry funded," Representative Espita Freitas said, adding that similar models operate in other states. She said more than 200 active TIDs exist across 23 states and cited examples including Texas, Colorado, Louisiana and Tennessee.
Committee chair James asked whether an individual hotel could opt out if most nearby properties supported a district. "If I am a hotelier ... but I don't wanna participate, will you draw your map around me and allow me to opt out?" Chair James asked.
Representative Espita Freitas replied, "So because it's business led, it'll be up to the hoteliers to decide. And also, there's, if 40% of the lodging businesses in the area choose not to participate ... then there would be obviously no TID."
The committee reported the bill as committed with the expectation of a unanimous recommendation; no roll call was conducted in committee. The action was recorded as reported as committed.
Background and context: Supporters said TIDs are a tested tool to increase hotel stays, job growth and tax revenue by funding professional, targeted marketing. The bill contains accountability measures such as annual audits and county oversight, and proponents emphasized that formation is voluntary and requires majority buy-in from affected businesses.
The committee did not take further amendments during the hearing. The bill will move forward to the next legislative step as reported by the committee.
