Limiting operational expenditures for tourism-related facilities owned or operated by municipalities and public facilities districts.

HB 2733 limits how municipalities and public facilities districts can spend lodging tax revenues on tourism facilities, capping operational support at 5% of annual lodging tax revenue. It requires applicants to demonstrate how funds will increase tourism by showing projected travel patterns (e.g., overnight stays away from home or trips over 50 miles). Municipalities must use a local advisory committee to review applications and approve funding based on these projections, and recipients must report actual tourism impacts annually. The bill also mandates public reporting of these results to local governments and the legislature.