48-6508. Renewal; dissolution; remaining revenue

A. An established tourism improvement area may be renewed for a new term.  A renewed tourism improvement area may engage in different tourism improvement area activities than the original tourism improvement area.  On renewal of a tourism improvement area, the governing body shall transfer any remaining monies held by the tourism improvement area to the renewed tourism improvement area.

B. During the term of the tourism improvement area, there shall be a sixty-day period each year in which lodging business owners that have paid lodging business assessments may request dissolution of the tourism improvement area. The initial sixty-day period shall begin one year after the date of establishment of the tourism improvement area. On receipt of a petition submitted by the lodging business owners that represent fifty percent or more of the total number of assessed rooms within the tourism improvement area, the governing body shall pass a resolution of intention to dissolve the tourism improvement area. The governing body shall hold a hearing on the petition to dissolve the tourism improvement area and shall provide notice of the hearing pursuant to the notice requirements of section 48-6504.

C. The governing body may adopt a resolution to dissolve a tourism improvement area. The governing body may only adopt a resolution to dissolve a tourism improvement area when the tourism improvement area has satisfied all debts of the tourism improvement area.  The governing body may also dissolve a tourism improvement area if the governing body finds there has been misappropriation of monies, malfeasance or a violation of law in connection with the management of the tourism improvement area.

D. The resolution adopted by the governing body pursuant to subsection B or C of this section shall state the reason for the dissolution and the time and place of the public hearing and shall contain a proposal to dispose of any assets acquired with the monies of the lodging business assessments levied within the tourism improvement area. The notice of the hearing on dissolution required by this section shall be given by mail to each lodging business owner that is subject to a lodging business assessment in the tourism improvement area and published in a newspaper of general circulation in the municipality or county or on the municipality's or county's public website at least thirty days before the date of the hearing. The governing body shall conduct the public hearing at least thirty days after mailing the notice of hearing. The public hearing shall be held not more than sixty days after the adoption of the resolution of intention to dissolve the tourism improvement area.

E. On the dissolution or expiration without renewal of a tourism improvement area, any monies that remain after all debts of the tourism improvement area are paid shall be spent in accordance with the tourism improvement area plan or shall be refunded to the lodging business owners of the lodging businesses that are located and operating within the tourism improvement area at the time of dissolution of the tourism improvement area. Remaining monies that are to be refunded to lodging business owners shall be refunded using the same method and basis that was used by the destination marketing organization to establish the lodging business assessments levied in the fiscal year in which the tourism improvement area is dissolved or expires.