§ 4 — Public hearing and notice; declaration of organization of tourism destination marketing district; participation; renewal; discontinuation

Section 4. (a) The municipal governing body of the lead jurisdiction shall hold a public hearing within 60 days of the receipt of a petition. Written notification of such hearing shall be sent to each tourism destination marketing district member within the boundary of the proposed tourism destination marketing district at least 30 days prior to such hearing, by mailing notice to the address listed in the business records of the municipalities proposed to be included within the boundaries of the tourism destination marketing district or, if no such records exist, by such other method as determined by the clerk of the municipality. Notification of the hearing shall also be published for 2 consecutive weeks in a newspaper of general circulation in the area, with the first date of publication beginning at least 14 days prior to such hearing listed on the municipality's website. Such public notice shall contain the proposed boundaries of the tourism destination marketing district, the proposed special assessment rate formula, a summary of the supplemental services provided by the petitioners and where the property owner may obtain a full copy of the petition and the management plan.(b) Prior to the public hearing, the municipal governing body of the lead jurisdiction shall direct the clerk of the lead jurisdiction or the clerk's designee to determine that the establishment criteria and other petition requirements have been met, as set forth in section 3.(c) At the public hearing, the municipal governing body of the lead jurisdiction shall determine if the petition satisfies the purposes set forth and the establishment criteria of this chapter and shall obtain public comment regarding the tourism destination marketing district plan and the effect the proposed tourism destination marketing district will have on the lodging business owners within the proposed tourism destination marketing district. If it appears that said petition is not in conformity with the purposes and establishment criteria, said local municipal governing body shall dismiss the petition. At the public hearing, the presiding officer or clerk of said local municipal governing body shall read into the record the basis for determining the special assessment pursuant to section 7 and the process by which tourism destination marketing district members may vote not to renew such tourism destination marketing district.(d) Not more than 45 days after the close of the public hearing, the municipal governing body, in its sole discretion, may approve or disapprove the tourism destination marketing district by majority vote. Upon such declaration, the tourism destination marketing district may commence operations.(e) Notice of the declaration of the organization of the tourism destination marketing district shall be mailed or delivered to each tourism destination marketing district member within the proposed tourism destination marketing district. The notice shall explain: (i) that membership in the tourism destination marketing district is irrevocable unless as provided in subsection (g) or the dissolution under section 10; (ii) a description of the basis for determining the special assessment; (iii) the criteria by which lodging businesses are assessed by the tourism destination marketing district; (iv) the special assessment rate; and (v) the proposed supplemental services to be provided by the tourism destination marketing.Such notice shall be published for 2 consecutive weeks in a newspaper of general circulation in the area, the last publication being not more than 14 days after the vote to declare the tourism destination marketing district organized and shall be posted on the municipality's website.(f) Once established, participation in the tourism destination marketing district shall be permanent until after the discontinuation of the tourism destination marketing district as provided in this section, or until the dissolution of the tourism destination marketing district under section 10. All participating lodging business owners shall make payments in accordance with the special assessment set out in the petition or management plan. Non-participating lodging business owners in the tourism destination marketing district shall become tourism destination marketing district members and shall be assessed on the date that their business meets the criteria by which lodging businesses are assessed by the tourism destination marketing district.(g) On or before the fifth anniversary of the organization of a newly created tourism destination marketing district and the fifth anniversary thereafter of the date of the most recent renewal of the tourism destination marketing district under this section, the tourism destination marketing district committee shall call a renewal meeting of the tourism destination marketing district members to: (i) review the history of the tourism destination marketing district since its organization or, if applicable, its most recent renewal; (ii) propose an updated tourism destination marketing district plan to succeed the then current tourism destination marketing district plan; and (iii) consider whether to continue the tourism destination marketing district. The meeting shall be held at a location within the tourism destination marketing district. Notice of the meeting shall be given to tourism destination marketing district members at least 30 days prior to the meeting. The tourism destination marketing district shall continue after each renewal meeting if a majority of tourism destination marketing district members who are not more than 30 days in arrears in any payment due to the tourism destination marketing district and are present at the renewal meeting, in person or by proxy, vote to renew the tourism destination marketing district.Such renewal shall last for a term of 5 years commencing on the first day of the next fiscal year of the tourism destination marketing district.(h) If the tourism destination marketing district members elect not to continue the tourism destination marketing district, the tourism destination marketing district committee shall conclude the business of the tourism destination marketing district prior to the sixth anniversary of the tourism destination marketing district's creation, or of the prior renewal vote, as the case may be, and proceed to discontinue the tourism destination marketing district. Notice of the discontinuation vote shall be given to the municipal governing body of the lead jurisdiction, which shall formally declare the tourism destination marketing district dissolved as of such sixth anniversary; provided, however, that the tourism destination marketing district shall not be dissolved until it has received the accounts receivable due to the tourism destination marketing district and until it has satisfied or paid in full all of its outstanding indebtedness, obligations and liabilities, or until funds are on deposit and available therefor, or until a repayment schedule has been formulated and approved by said local municipal governing body.(i) Except as necessary to conclude the business of the tourism destination marketing district, the tourism destination marketing district shall not incur any new or increased financial obligations after such sixth anniversary. Upon the dissolution of a tourism destination marketing district, the remaining assets shall first be applied to repay obligations of the tourism destination marketing district, and then in accordance with the tourism destination marketing district plan, as updated.(j) Nothing in this section shall prevent the filing of a subsequent petition for a similar project.