H.B. No. 5509 introduces a new provision to the Local Government Code, specifically Section 215.007, which allows municipalities in Texas to suspend or revoke a hotel's certificate of occupancy if there is probable cause to believe that human trafficking activities are occurring on the premises. The bill defines "hotel" according to the Tax Code and specifies that human trafficking activity refers to offenses outlined in the Penal Code. For a municipality to take action, a law enforcement officer must provide an affidavit of probable cause, and a court must issue an order confirming this finding. Additionally, the municipality must adhere to established procedures for suspending or revoking certificates of occupancy.

The bill ensures that hotel owners or operators retain the right to a public hearing and the opportunity to present evidence regarding the suspension or revocation of their certificate. It also clarifies that the procedures for suspending or revoking a hotel’s certificate must align with those applicable to other types of businesses within the municipality. Importantly, the bill states that it does not create a private cause of action, meaning individuals cannot sue based on this provision. The act is set to take effect on September 1, 2025.

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