Section 1. As used in this chapter the following words shall, unless the context clearly requires otherwise, have the following meanings:

''Business improvement district board of directors'' or ''Board of directors'', a locally designated board of property owners or their designees who are assigned responsibility for the management of a business improvement district.

''BID'', a business improvement district formed pursuant to this chapter, which is a contiguous geographic area with clearly defined boundaries in which at least three-fourths of the area is zoned or used for commercial, industrial, retail, or mixed uses.

''BID member'', a property owner who participates in a BID.

''Elector'', a BID member, or a natural person designated by a member to vote by proxy for such member; provided, however, that such designation shall be in writing and filed with the city or town clerk; provided, further, that only one such proxy may be designated by an owner.

''Fee'', a payment for services or improvements specified by the BID improvement plan.

''Improvement plan'', the strategic plan for the BID which sets forth the supplemental services and programs, revitalization strategy, budget and fee structure, as well as the management entity for the business improvement district, and is approved by the local municipal governing body as part of the creation of the BID. An improvement plan shall, within the limitations described in section nine, be updated at least once every three years by the BID board of directors, and a copy thereof shall be mailed or delivered to each BID member. The updated improvement plan shall take effect upon the approval of a majority of the electors. Any amendment to the improvement plan under section nine shall be deemed to be an update of the improvement plan.

''Local municipal governing body'', the city council or board of aldermen in a city or the board of selectmen or town council in a town.

''Management entity'', an entity designated in an improvement plan to receive funds to carry out and implement the purposes of the BID, and which shall be governed by the BID board of directors. The improvement plan may designate the BID board of directors to act as the management entity, or may designate that the management entity will be selected by the board of directors. If a management entity is utilized, such entity shall be required to furnish a surety bond conditioned on the faithful performance of its duties.

''Property'', any real property located within the BID.

''Property owner'', the owner of record of property.

''Standard government services'', governmental functions, programs, activities, facilities, improvements and other services which a municipality is authorized to perform or provide.

''Supplemental service'', the provision of programs, public services, activities, amenities, or information in addition to the standard governmental services provided to the BID.