The bill, S.B. No. 1180, amends Section 351.1015(b) of the Texas Tax Code to expand the authority of certain municipalities to utilize specific tax revenue for qualified projects. The revised section now includes additional criteria for municipalities eligible to use these funds. Specifically, it allows municipalities with populations of at least 700,000 but less than 950,000, those that contain over 70% of a county's population with 1.5 million or more, and municipalities with populations of at least two million. Furthermore, it introduces new eligibility for municipalities with populations over 150,000 that are entirely located in counties with populations of 3.3 million or more.

The bill also makes several deletions and insertions to clarify the criteria for qualified municipalities. Notably, it removes the previous conditions that limited eligibility to certain population thresholds and adds new categories to broaden the scope of municipalities that can access these tax revenues. The act is set to take effect on September 1, 2025, and it will take precedence over any conflicting legislation from the 89th Legislature, Regular Session, 2025, regarding nonsubstantive changes to the enacted codes.