2022 -- S 2773 | |
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LC004839 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2022 | |
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A N A C T | |
RELATING TO TOWNS AND CITIES -- TOURISM IMPROVEMENT DISTRICTS | |
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Introduced By: Senators Miller, Goodwin, Ruggerio, McCaffrey, Lombardo, Kallman, | |
Date Introduced: March 24, 2022 | |
Referred To: Senate Housing & Municipal Government | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby |
2 | amended by adding thereto the following chapter: |
3 | CHAPTER 59.1 |
4 | TOURISM IMPROVEMENT DISTRICTS |
5 | 45-59.1-1. Short Title. |
6 | This act shall be known and may be cited as the "Tourism Improvement Districts Act." |
7 | 45-59.1-2. Legislative findings and purpose. |
8 | (a) It is found and declared that: |
9 | (1) Tourism is a major source of employment, income, and tax revenues in this state, and |
10 | the expansion of the tourism industry is vital to the growth of the state's economy. |
11 | (2) The tourism industry is important to this state, not only because of the number of people |
12 | it serves and the vast human, financial, and physical resources it employs, but because of the |
13 | benefits tourism and related activities confer on individuals and on society as a whole. |
14 | (3) Local government oversight and resources are needed to implement a coordinated and |
15 | effective marketing program consistent with the needs of specific areas of this state, and to optimize |
16 | the considerable investment of time, energy, capital, and resources being made by the tourism |
17 | industry. |
18 | (b) It is the purpose of this chapter to authorize municipalities to create tourism |
19 | improvement districts for the purpose of providing the services and undertaking the activities |
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1 | described in this chapter to supplement, not supplant, existing funding provided by the state and |
2 | municipalities implementing a tourism investment district. |
3 | 45-59.1-3. Definitions. |
4 | As used in this chapter: |
5 | (1) "Activity" means any programs or services provided for the purpose of conferring |
6 | specific benefits upon the businesses that are located in the tourism improvement district and to |
7 | which an assessment is charged. |
8 | (2) "Assessment" means a levy for the purpose of providing activities and improvements |
9 | that will provide benefits to businesses located within a tourism improvement district that are |
10 | subject to the tourism improvement district assessment. Assessments may be based on a percent of |
11 | gross business revenue, a fixed dollar amount per transaction, or any other reasonable method based |
12 | upon benefit, and approved by the municipality. |
13 | (3) "Authorizing resolution" means a resolution adopted by the municipality that authorizes |
14 | the formation or renewal of a tourism improvement district and the levying of assessments. |
15 | (4) "Business" means any business establishment of the type or class that is described in |
16 | the tourism improvement district plan and the authorizing resolution. |
17 | (5) "Business owner" means any person recognized by the municipality as the owner of the |
18 | business. The municipality has no obligation to obtain other information as to the ownership of |
19 | businesses, and its determination of ownership shall be final and conclusive for the purposes of this |
20 | chapter. Wherever this chapter requires the signature of the business owner, the signature of the |
21 | authorized representative of the business owner shall be sufficient. |
22 | (6) "Improvement" means an acquisition, construction, installation, or maintenance |
23 | relating to tangible property, with an estimated useful life of five (5) years or more that is designed |
24 | to provide benefits to assessed businesses. |
25 | (7) "Lead municipality" means the municipality in which the tourism improvement district |
26 | plan is filed for the establishment of a tourism improvement district where such district includes |
27 | more than one municipality. |
28 | (8) "Municipality" means any city or town in the State of Rhode Island. |
29 | (9) "Owners' association" means a new or existing nonprofit corporation charged with |
30 | promoting tourism within the area of the tourism improvement district that is under contract with |
31 | the municipality to administer the tourism improvement district and implement activities and |
32 | improvements specified in the tourism improvement district plan. |
33 | (10) "Tourism improvement district" means a tourism improvement district established |
34 | pursuant to this chapter. |
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1 | (11) "Tourism improvement district plan" means a plan as prescribed in § 45-59.1-5. |
2 | 45-59.1-4. Boundaries of a tourism improvement district -- Requirement of consent. |
3 | (a) Municipalities may create tourism improvement districts pursuant to this chapter. |
4 | (b) A municipality may form a tourism improvement district that assesses any business |
5 | located within the boundaries as determined by the municipality. Should any lead municipality |
6 | choose to include other municipalities within the boundaries of a tourism improvement district, |
7 | each participating municipality must provide written consent from the governing body of each |
8 | participating municipality. In the event there are multiple consenting municipalities, upon |
9 | successful receipt of consent from all participating municipalities, the lead municipality shall |
10 | govern and administer the tourism improvement district. |
11 | (c) The boundaries of any proposed tourism improvement district may overlap with the |
12 | boundaries of another tax, assessment, or special tax assessment area or management district |
13 | created pursuant to Rhode Island law. |
14 | 45-59.1-5. Contents of tourism improvement district plan. |
15 | A tourism improvement district plan shall include, but not be not limited to, all of the |
16 | following: |
17 | (1) A map that identifies the tourism improvement district boundaries in sufficient detail |
18 | to allow a business owner to reasonably determine whether a business is located within the tourism |
19 | improvement district boundaries. The boundaries of a tourism improvement district may overlap |
20 | with other tourism improvement districts established pursuant to this chapter. |
21 | (2) The name of the proposed tourism improvement district. |
22 | (3) The name of the owners' association. |
23 | (i) Where a newly formed nonprofit corporation is designated as the owners' association, |
24 | the certificate of incorporation or bylaws shall provide that the owners' association's governing |
25 | board shall be composed of a majority of business owners, or their authorized representatives, who |
26 | pay the tourism improvement district assessment. |
27 | (ii) Where an existing nonprofit corporation is designated as the owners' association, the |
28 | nonprofit shall create a committee composed of a majority of businesses owners, or their authorized |
29 | representatives, who shall be charged with managing the funds raised by the tourism improvement |
30 | district and fulfilling the obligations of the tourism improvement district plan. |
31 | (iii) The owners' association shall have full discretion to select the specific activities and |
32 | improvements within the authorized parameters of the tourism improvement district plan that shall |
33 | be funded with tourism improvement district assessment revenue. |
34 | (4) The activities and improvements proposed for each year of operation of the tourism |
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1 | improvement district and the estimated cost thereof. If the activities and improvements proposed |
2 | for each year of operation are the same, a description of the first year's proposed activities and |
3 | improvements and a statement that the same activities and improvements are proposed for |
4 | subsequent years shall satisfy the requirements of this subsection. |
5 | (5) The estimated annual amount proposed to be expended for activities and improvements |
6 | during each year of operation of the tourism improvement district. This amount may be estimated |
7 | based upon the assessment rate. If the estimated annual amount proposed to be expended in each |
8 | year of operation of the tourism improvement district is not significantly different, the amount |
9 | proposed to be expended in the initial year and a statement that a similar amount applies to |
10 | subsequent years shall satisfy the requirements of this subsection. |
11 | (6) The proposed source or sources of financing, including the proposed method and basis |
12 | of levying the assessment in sufficient detail to allow each business owner to calculate the amount |
13 | of the assessment to be levied against their business. The tourism improvement district plan may |
14 | set forth increases in assessments for any year of operation of the tourism improvement district. |
15 | Any business of the type or class of businesses that are subject to the assessment that commences |
16 | operations during the tourism improvement district's term shall be subject to the assessment. |
17 | (7) The time and manner of collecting the assessments and any interest or penalties for |
18 | non-payment. |
19 | (8) The specific number of years in which assessments will be levied. In a new tourism |
20 | improvement district, the maximum number of years shall be ten (10). Upon renewal, a district |
21 | shall have a term not to exceed twenty (20) years. The tourism improvement district plan may set |
22 | forth specific increases in assessments for each year of operation of the district; |
23 | (9) Any proposed rules to be applicable to the tourism improvement district. |
24 | (10) A definition describing the types or classes of businesses to be included in the tourism |
25 | improvement district and subject to the tourism improvement district assessment. |
26 | 45-59.1-6. Initiation of proceedings -- Petition for a proposed tourism improvement |
27 | district. |
28 | (a) Upon submission to the clerk of a municipality of a written petition, the municipality |
29 | may initiate proceedings to form a tourism improvement district by adopting a resolution |
30 | expressing its intention to form a tourism improvement district. The written petition may be signed |
31 | by either: |
32 | (1) Business owners or their authorized representatives who will pay sixty percent (60%) |
33 | or more of the assessments proposed to be levied; or |
34 | (2) Business owners or their authorized representatives who constitute sixty percent (60%) |
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1 | or more of the total rooms within the tourism improvement district. |
2 | (b) The petition of business owners required under subsection (a) of this section shall |
3 | include a summary of the tourism improvement district plan. That summary shall include all of the |
4 | following: |
5 | (1) A map showing the boundaries of the tourism improvement district. |
6 | (2) The types or classes of businesses that will be subject to the assessment. |
7 | (3) The assessment rate for the types or classes of business that will be subject to the |
8 | assessment. |
9 | (4) Information specifying where the complete tourism improvement district plan can be |
10 | obtained. |
11 | (5) Information specifying that the complete tourism improvement district plan shall be |
12 | furnished upon request. |
13 | 45-59.1-7. Hearing on establishment or renewal. |
14 | (a) If the municipality has received a successful petition pursuant to § 45-59.1-6, the |
15 | municipality shall hold a public hearing on the establishment or renewal of the tourism |
16 | improvement district prior to adoption of the authorizing resolution. Notice of the public hearing |
17 | shall be mailed to the owners of the businesses proposed to be subject to the assessment. |
18 | (b) The municipality shall provide at least thirty (30) days' written notice of the public |
19 | hearing at which the municipality proposes to establish or renew the tourism improvement district |
20 | and levy the assessment. |
21 | (c) A protest may be made by any business owner that will be subject to the proposed |
22 | assessment. Every protest shall be in writing and shall be filed with the municipality at or before |
23 | the time fixed for the public hearing. The municipality may waive any irregularity in the form or |
24 | content of any written protest. A written protest may be withdrawn in writing at any time before |
25 | the conclusion of the public hearing. Each written protest shall contain a description of the business |
26 | in which the person subscribing the protest is interested that shall be sufficient to identify the |
27 | business and, if a person subscribing is not shown on the official records of the municipality as the |
28 | owner of the business, the protest shall contain or be accompanied by written evidence that the |
29 | person subscribing is the owner of the business or the authorized representative. A written protest |
30 | that does not comply with this section shall not be counted in determining a majority protest. If |
31 | written protests are received from sixty percent (60%) or more of business owners or their |
32 | authorized representatives, as determined via the same majority calculation method chosen in § 45- |
33 | 59.1-6, and protests are not withdrawn so as to reduce the protests to less than sixty percent (60%), |
34 | the municipality shall not levy the assessment. |
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1 | (d) If a tourism improvement district includes multiple municipalities or portions thereof, |
2 | the notice and hearing process set forth in this section shall be conducted by the lead municipality. |
3 | 45-59.1-8. Changes to proposed assessment. |
4 | At the conclusion of the public hearing to establish or renew a tourism improvement |
5 | district, the municipality may adopt, revise, change, reduce, or modify the proposed assessments, |
6 | the boundaries of the tourism improvement district, or the types or classes of businesses within the |
7 | tourism improvement district that would be subject to the assessment. Proposed assessments may |
8 | only be revised by reducing them, either independently or together in a uniform manner. The |
9 | proposed tourism improvement district boundary may only be revised to exclude territory that will |
10 | not benefit from the proposed activities and improvements. The types or classes of businesses that |
11 | will be subject to the proposed assessment may only be revised to exclude the business types or |
12 | classes that will not benefit from the proposed activities and improvements. Any modifications, |
13 | revisions, reductions, or changes to the proposed tourism improvement district plan shall be |
14 | reflected in the tourism improvement district plan prior to the municipality's adoption of the |
15 | resolution creating or renewing the tourism improvement district. |
16 | 45-59.1-9. Authorizing resolution. |
17 | (a) If the municipality, following the public hearing, decides to establish or renew a |
18 | proposed tourism improvement district, the municipality shall adopt an authorizing resolution that |
19 | shall include, but is not limited to, all of the following: |
20 | (1) A brief description of the proposed activities and improvements, the amount of the |
21 | proposed assessment, a statement as to the types or classes of businesses that will be subject to the |
22 | assessment, and a description of the exterior boundaries of the tourism improvement district, which |
23 | may be made by reference to any plan or map that is on file with the municipality. The descriptions |
24 | and statements need not be detailed and shall be sufficient if they enable an owner to generally |
25 | identify the nature and extent of the activities and improvements and the location and extent of the |
26 | tourism improvement district. |
27 | (2) The time and place where the public hearing was held concerning the establishment or |
28 | renewal of the tourism improvement district. |
29 | (3) A determination regarding any protests received. The municipality shall not establish |
30 | or renew the tourism improvement district or levy assessments if a majority protest was received |
31 | as described in § 45-59.1-7(c). |
32 | (4) A statement that the businesses in the tourism improvement district established by the |
33 | resolution shall be subject to any amendments to this chapter. |
34 | (5) A statement that the activities and improvements to be conferred on businesses in the |
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1 | tourism improvement district will be funded by the proceeds of assessments. The revenue from the |
2 | assessments within a tourism improvement district shall not be used for any purpose other than the |
3 | purposes specified in the tourism improvement district plan, as authorized or modified by the |
4 | municipality at the hearing concerning establishment or renewal of the tourism improvement |
5 | district. |
6 | (6) A finding that the businesses within the tourism improvement district will benefit from |
7 | the activities and improvements funded by the tourism improvement district assessments. |
8 | (b) The adoption of the authorizing resolution shall constitute the levy of assessments in |
9 | each of the years referred to in the tourism improvement district plan. |
10 | 45-59.1-10. Expiration of tourism improvement district term. |
11 | If a tourism improvement district expires due to the term specified in § 45-59.1-5(a)(8), a |
12 | new tourism improvement district plan may be created and the tourism improvement district may |
13 | be renewed pursuant to this chapter. |
14 | 45-59.1-11. Time and manner of collection of assessments -- Delinquent payments. |
15 | (a) The collection of the assessments levied pursuant to this chapter shall be made at the |
16 | time and in the manner set forth by the municipality in the authorizing resolution. All delinquent |
17 | payments for assessments levied pursuant to this chapter may be charged interest and penalties. |
18 | (b) Any delinquent payments for assessments, along with any interest or penalties, shall |
19 | constitute a debt owed the municipality and may be collectable by the municipality as a debt under |
20 | law. |
21 | (c) Any delinquent payments for assessments, interest, or penalties recovered under this |
22 | section shall be expended in the same manner as provided in the authorizing resolution for proceeds |
23 | of the assessment. |
24 | 45-59.1-12. Validity of assessment. |
25 | The validity of an assessment levied under this chapter shall not be contested in any action |
26 | or proceeding unless the action or proceeding is commenced within thirty (30) days after the |
27 | authorizing resolution is adopted pursuant to § 45-59.1-9. Any appeal from a final judgment in an |
28 | action or proceeding shall be perfected within thirty (30) days after the entry of judgment. |
29 | 45-59.1-13. Certification to establish levels of services and funding. |
30 | The tourism improvement district is intended to provide supplemental funding and services |
31 | and not to supplant existing funding or services. After establishing a tourism improvement district, |
32 | the municipality shall not decrease the level of publicly funded tourism promotion services in a |
33 | tourism improvement district existing prior to the creation of such tourism improvement district. |
34 | 45-59.1-14. Modification to the tourism improvement district plan. |
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1 | (a) The owners' association, at any time, may request that the municipality modify the |
2 | tourism improvement district plan. Any modification of the tourism improvement district plan shall |
3 | be made pursuant to this chapter. The tourism improvement district plan shall not be modified, |
4 | except by the request of the owners' association and only in the manner requested by the owners' |
5 | association. |
6 | (b) Upon the written request of the owners' association, the municipality may modify the |
7 | tourism improvement district plan by adopting a resolution determining to make the modifications |
8 | after conducting one public hearing on the proposed modifications. If the modification includes the |
9 | levy of a new or increased assessment or the expansion of the tourism improvement district's |
10 | geographic boundaries, the municipality shall comply with all procedures required for |
11 | establishment of a new tourism improvement district provided by this chapter. Notice of all other |
12 | public hearings pursuant to this section shall comply with both of the following: |
13 | (1) The resolution of intention to modify shall be published once at least seven (7) days |
14 | before the public hearing in a newspaper of general circulation in the municipality. |
15 | (2) A complete copy of the resolution of intention to modify shall be mailed by first class |
16 | mail, at least ten (10) days before the public hearing, to each business owner affected by the |
17 | proposed modification. |
18 | (c) The municipality shall adopt a resolution of intention to modify which states the |
19 | proposed modification prior to the public hearing required by this section. The public hearing shall |
20 | be held not more than ninety (90) days after the adoption of the resolution of intention to modify. |
21 | 45-59.1-15. Reports. |
22 | (a) The owners' association shall cause to be prepared a report for each fiscal year, except |
23 | the first year, for which assessments are to be levied and collected to pay the costs of the activities |
24 | described in the report. The owners' association's first report shall be due ninety (90) days after the |
25 | first year of operation of the tourism improvement district. |
26 | (b) The report shall be filed with the municipality and shall refer to the tourism |
27 | improvement district by name, specify the fiscal year to which the report applies, and, with respect |
28 | to that fiscal year, shall contain all of the following information: |
29 | (1) The activities and improvements to be provided for that fiscal year. |
30 | (2) An estimate of the cost of providing the activities and improvements for that fiscal year. |
31 | (3) The method and basis of levying the assessments in sufficient detail to allow each |
32 | business owner to estimate the amount of the assessment to be levied against his or her business |
33 | for that fiscal year. |
34 | (4) The estimated amount of any surplus or deficit revenues to be carried over from a |
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1 | previous fiscal year. |
2 | (c) The municipality may approve the report as filed by the owners' association or may |
3 | make recommendations for approval to the annual report within forty-five (45) days of receiving |
4 | the annual report. The annual report shall be final and approved within ninety (90) days following |
5 | its submission by the owners' association to the municipality. |
6 | 45-59.1-16. Renewal of tourism improvement district. |
7 | (a) Any tourism improvement district previously established whose term has expired, or |
8 | will expire, may be renewed by following the procedures for establishment as provided in this |
9 | chapter. |
10 | (b) Upon renewal, any remaining revenues derived from assessments, or any revenues |
11 | derived from the sale of assets acquired with the revenues, shall be transferred to the renewed |
12 | tourism improvement district. |
13 | (c) There is no requirement that the boundaries, assessments, activities, or improvements |
14 | of a renewed tourism improvement district be the same as the original or prior tourism improvement |
15 | district. |
16 | 45-59.1-17. Dissolution of district. |
17 | (a) A tourism improvement district established or extended pursuant to this chapter may be |
18 | dissolved by adoption of a resolution by the municipality pursuant to this section when there is no |
19 | indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the tourism |
20 | improvement district, and when either of the following circumstances apply: |
21 | (1) The municipality finds there has been misappropriation of funds or other malfeasance. |
22 | (2) The municipality finds there has been a violation of law in connection with the |
23 | management of the tourism improvement district. |
24 | (b) During each year of operation of the tourism improvement district, there shall be a thirty |
25 | (30) day period in which businesses subject to the assessment may request dissolution of the |
26 | tourism improvement district. The first period shall begin two (2) years after the date of |
27 | establishment of the tourism improvement district and shall continue for thirty (30) days. Each |
28 | successive year of operation of the tourism improvement district shall have such a thirty (30) day |
29 | period. Upon the written petition of sixty percent (60%) or more of business owners or their |
30 | authorized representatives, as determined via the same majority calculation method chosen in § 45- |
31 | 59.1-6, the municipality shall pass a resolution of intention to disestablish the tourism improvement |
32 | district. The municipality shall give public notice of any hearing on disestablishment. |
33 | (c) The municipality shall adopt a resolution of intention to disestablish the tourism |
34 | improvement district prior to the public hearing required by this section. The resolution shall state |
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1 | the reason for the potential dissolution, shall state the time and place of the public hearing, and |
2 | shall contain a proposal to dispose of any assets acquired with the revenues of the assessments |
3 | levied within the tourism improvement district. The notice of the hearing on dissolution required |
4 | by this section shall be given by mail to the owner of each business subject to assessments in the |
5 | tourism improvement district. The municipality shall conduct the public hearing not less than thirty |
6 | (30) days after mailing the notice to the business owners. The public hearing shall be held not more |
7 | than sixty (60) days after the adoption of the resolution of intention. At the conclusion of the public |
8 | hearing, the municipality shall adopt a resolution dissolving the tourism improvement district. |
9 | (d) After holding a noticed hearing, the municipality shall notify the owners' association to |
10 | remedy the findings of the municipality within thirty (30) days. Such public hearing shall be held |
11 | and notice given to the benefited businesses and the owners' association not less than thirty (30) |
12 | days prior to the hearing. If the owners' association does not remedy the violations within thirty |
13 | (30) days of notification, or the municipality has not approved a plan to remedy the violation, at |
14 | the conclusion of a hearing conducted under this section, the municipality may vote to terminate |
15 | the tourism improvement district. |
16 | 45-59.1-18. Remaining revenues. |
17 | Upon the dissolution or expiration without renewal of a tourism improvement district, any |
18 | remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or |
19 | derived from the sale of assets acquired with the revenues, shall be spent in accordance with the |
20 | tourism improvement district plan or shall be refunded to the owners of the businesses then located |
21 | and operating within the tourism improvement district in which assessments were levied by |
22 | applying the same method and basis that was used to calculate the assessments levied in the fiscal |
23 | year in which the tourism improvement district is disestablished or expires. |
24 | SECTION 2. This act shall take effect upon passage. |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO TOWNS AND CITIES -- TOURISM IMPROVEMENT DISTRICTS | |
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1 | This act would enable municipalities, with a supermajority consensus of impacted |
2 | businesses, to create tourism improvement districts, a tourism focused alternative to district |
3 | management authorities in § 45-59-1 et seq., designed to provide supplementary financial support |
4 | for marketing programs to increase economic activity in the tourism industry, particularly in |
5 | regards to occupancy and room rates in lodging businesses. |
6 | This act would take effect upon passage. |
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