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 a new category of municipalities eligible for these benefits, specifically adding (3-a) a municipality described by Section 351.001(11); to the list of qualifying municipalities under Section 351.152. Additionally, it establishes exceptions for eligible barrier island coastal municipalities, allowing them to bypass certain requirements related to the proximity of convention centers and hotels to natural impediments, such as open water or protected wetlands. The bill also modifies Section 351.157(b) to include (15-a) a municipality described by Section 351.152(51); among those eligible for specific provisions. These changes aim to facilitate the development of convention centers and hotels in municipalities that meet certain criteria, thereby promoting tourism and economic growth in those areas. The act is set to take effect immediately upon receiving a two-thirds vote from both houses 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)