H.B. No. 3196 aims to expand the authority of certain municipalities in Texas to receive tax revenue from hotel and convention center projects and to pledge this revenue for related obligations. The bill amends Section 351.152 of the Tax Code to include additional municipalities eligible for these benefits, specifically adding a new category (3-a) for municipalities described by Section 351.001(11). This amendment broadens the scope of municipalities that can benefit from the tax revenue provisions, which are designed to support local economic development through tourism and convention activities.

Additionally, the bill introduces Section 351.1535, which outlines exceptions applicable to eligible barrier island coastal municipalities. This section specifies conditions under which certain requirements for qualified convention center facilities and hotels may not apply, particularly in cases where natural impediments make compliance impractical. The bill also amends Section 351.157(b) to include more municipalities in the provisions related to tax revenue allocation. Overall, H.B. No. 3196 seeks to enhance the financial capabilities of municipalities to foster tourism and economic growth through strategic investments in hospitality infrastructure.

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)