H.B. No. 3196 amends the Texas Tax Code to expand the authority of certain municipalities to receive tax revenue from hotel and convention center projects. The bill introduces new eligibility criteria for municipalities, specifically adding a new category (3-a) that includes municipalities described by Section 351.001(11). Additionally, it modifies existing sections to clarify the applicability of tax revenue pledges for obligations related to these projects. The bill also adds Section 351.1535, which outlines exceptions for eligible barrier island coastal municipalities, allowing them to bypass certain requirements related to the proximity of hotels and convention centers to natural impediments.

Furthermore, the bill amends Section 351.157(b) to include additional municipalities that qualify for specific provisions under the Tax Code. These changes aim to facilitate the development of convention centers and hotels in various municipalities, particularly those facing geographical challenges. The act is set to take effect immediately upon receiving a two-thirds vote from both houses of the legislature or on September 1, 2025, if that threshold is not met.

Statutes affected:
Introduced: Tax Code 351.152 (Tax Code 351)
House Committee Report: Tax Code 351.152 (Tax Code 351)
Engrossed: Tax Code 351.152, Tax Code 351.157 (Tax Code 351)