H.B. No. 3509 amends the Local Government Code to clarify the definitions and requirements related to public improvement districts (PIDs) in certain municipalities, particularly concerning hotel-related projects. The bill introduces new definitions, including "extraterritorial jurisdiction" and "hotel," which specifies that the term includes properties that begin operating as hotels after the establishment of a PID. Additionally, it stipulates that districts created after September 1, 2019, can only undertake projects related to advertising, promotion, or business recruitment directly associated with hotels.

The bill also revises the petition process for establishing a PID, requiring that petitions be signed by qualified petitioners who represent more than 60 percent of the appraised value of hotel properties or the area of all hotel properties liable for assessment under the proposal. It mandates that each qualified petitioner provide a written statement confirming their authority to enter into agreements concerning hotel operations. Furthermore, it repeals certain sections of the Local Government Code that are no longer applicable. The changes will apply only to petitions filed on or after the effective date of the Act, which will take effect immediately if it receives a two-thirds vote from both houses or on September 1, 2025, if not.

Statutes affected:
Introduced: Local Government Code 372.0015, Local Government Code 372.005 (Local Government Code 372)
House Committee Report: Local Government Code 372.0015, Local Government Code 372.0035, Local Government Code 372.003 (Local Government Code 372)