Title 45
Towns and Cities

Chapter 59.1
Tourism Improvement Districts

§ 45-59.1-17. Dissolution of district.

(a) A tourism improvement district established or extended pursuant to this chapter may be dissolved by adoption of a resolution by the municipality pursuant to this section when there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the tourism improvement district, and when either of the following circumstances apply:

(1) The municipality finds there has been misappropriation of funds or other malfeasance.

(2) The municipality finds there has been a violation of law in connection with the management of the tourism improvement district.

(b) During each year of operation of the tourism improvement district, there shall be a thirty (30) day period in which businesses subject to the assessment may request dissolution of the tourism improvement district. The first period shall begin two (2) years after the date of establishment of the tourism improvement district and shall continue for thirty (30) days. Each successive year of operation of the tourism improvement district shall have such a thirty (30) day period. Upon the written petition of sixty percent (60%) or more of business owners or their authorized representatives, as determined via the same majority calculation method chosen in § 45-59.1-6, the municipality shall pass a resolution of intention to disestablish the tourism improvement district. The municipality shall give public notice of any hearing on disestablishment.

(c) The municipality shall adopt a resolution of intention to disestablish the tourism improvement district prior to the public hearing required by this section. The resolution shall state the reason for the potential dissolution, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the tourism improvement district. The notice of the hearing on dissolution required by this section shall be given by mail to the owner of each business subject to assessments in the tourism improvement district. The municipality shall conduct the public hearing not less than thirty (30) days after mailing the notice to the business owners. The public hearing shall be held not more than sixty (60) days after the adoption of the resolution of intention. At the conclusion of the public hearing, the municipality shall adopt a resolution dissolving the tourism improvement district.

(d) After holding a noticed hearing, the municipality shall notify the owners’ association to remedy the findings of the municipality within thirty (30) days. Such public hearing shall be held and notice given to the benefited businesses and the owners’ association not less than thirty (30) days prior to the hearing. If the owners’ association does not remedy the violations within thirty (30) days of notification, or the municipality has not approved a plan to remedy the violation, at the conclusion of a hearing conducted under this section, the municipality may vote to terminate the tourism improvement district.