HB 3196 Texas House · 89th Legislature (2025)

Relating to the authority of certain municipalities to receive certain tax revenue derived from a hotel and convention center project and to pledge certain tax revenue for the payment of obligations related to the project.

HB 3196 allows specific qualifying Texas municipalities to receive and pledge tax revenue from hotel and convention center projects to cover project-related debts. It amends the Tax Code to define eligible cities, including those meeting population thresholds (e.g., 200,000+ residents with a Texas Tech University component) or geographic criteria (e.g., bordering Lake Lewisville or containing Cedar Hill State Park). The bill establishes a mechanism for these cities to use revenue from such projects to pay for development obligations. This policy change directly affects designated cities meeting the enumerated population and location requirements.

Bill status passed 3 of 5 stages cleared

Introduction

Mar 2025

Committee Review

May 2025

House Passage

May 2025

Senate Passage

Governor

Introduced Mar 20, 2025 Last action May 21, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Engrossed · 5 edits · May 13, 2025

MODERATE

This bill significantly expands the list of municipalities eligible to receive tax revenue from hotel and convention center projects in Texas. The changes add numerous new eligibility criteria based on population thresholds, geographic locations, cultural attractions, and specific municipal characteristics that were not previously included. Additionally, the bill introduces new exceptions for barrier island coastal municipalities regarding facility placement requirements.

Scope change

The bill's scope expanded from a limited set of municipalities to include 64 distinct categories of municipalities based on various criteria including population ranges, geographic features, cultural institutions, and proximity to specific landmarks.

ELIGIBILITY

Added 64 new eligibility categories for municipalities based on population thresholds, geographic features, cultural attractions, and specific municipal characteristics

Introduced new exceptions for barrier island coastal municipalities allowing certain facility placement requirements to be waived due to natural impediments

Reorganized and renumbered the eligibility criteria from 27 original categories to 64 categories with more granular population thresholds and geographic conditions

REQUIREMENT

Added new applicability section referencing the expanded list of eligible municipalities in subsequent sections of the Tax Code

TIMELINE

Changed effective date from immediate to September 1, 2025 if supermajority vote is not achieved, otherwise effective immediately

Floor votes · House May 12, 2025

How they voted

90–37

Passed · 19 other

Total votes 146

May 12, 2025

D Democratic59

49 Yea 2 Nay 8

83% Yea

R Republican87

41 Yea 35 Nay 11

47% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 21, 2025

Committee

Referred to Economic Development

upper

May 21, 2025

Introduced

Read first time

upper

May 14, 2025

Introduced

Received from the House

upper

May 13, 2025

Lower · Passed

Passed

lower

May 12, 2025

Lower · Passed

Passed to engrossment as amended

lower

May 12, 2025

Lower · Passed

Amended

lower

May 12, 2025

House · Passed

House Vote: pass (90-37-19)

house

May 7, 2025

Lower · Passed

Committee report sent to Calendars

lower

May 7, 2025

Lower · Passed

Committee report distributed

lower

May 1, 2025

Lower · Passed

Reported favorably as substituted

lower

Apr 14, 2025

Lower · Passed

Left pending in committee

lower

Apr 14, 2025

Lower · Passed

Testimony taken/registration(s) recorded in committee

lower

Mar 20, 2025

Committee

Referred to Ways & Means

lower

Mar 20, 2025

Introduced

Read first time

lower

5 primary · 0 co-sponsors