H.B. No. 3259 proposes amendments to the Government Code and Tax Code to allow certain municipalities and counties in Texas, specifically those with populations of 400,000 or less, the option to elect not to participate in major events reimbursement programs. This includes the major events reimbursement program under Chapter 478 and the events trust fund under Chapter 480. Municipalities or counties that choose this option will be eligible to receive a portion of the state hotel occupancy tax revenue collected in their jurisdiction. The bill outlines the process for making this election, including the requirement for written notice to the governor and stipulates that those who opt out cannot participate in the reimbursement programs for a four-year period.

Additionally, the bill establishes new provisions regarding the allocation of hotel occupancy tax revenue to eligible municipalities and counties. It specifies the conditions under which these entities can receive allocations based on their election status and the revenue generated from hotels within their jurisdiction. The bill also includes provisions that disallow funding for events held in municipalities or counties that have opted out of the reimbursement programs, unless the event is held in a municipality that has not made such an election. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Government Code 478.0051, Government Code 480.0051, Government Code 480.00515 (Government Code 478, Government Code 480)