A bill for an act authorizing cities to establish self-supported entertainment areas.

HF 38 allows Iowa cities to create designated "entertainment areas" where a surcharge (up to 3%) is added to specific transactions. This applies to food and alcohol sales at venues, entertainment tickets, and lodging rentals within the area, with revenues funding improvements or services for the zone. Cities must meet strict requirements, including a projected 250,000+ annual visitors, contiguous property under 75 acres, and at least 75% of properties being entertainment-related. The process requires a public hearing, 25% property owner petition signatures, and a council vote before implementation. The bill directly affects property owners, venue operators, and city governments within designated entertainment zones.