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HB 3241 Texas House · 89th Legislature (2025)

Relating to the authority of certain municipalities to use certain tax revenue for hotel and convention center projects.

HB 3241 expands the authority of specific Texas municipalities to use hotel and convention center tax revenue for related projects. It applies to cities meeting defined population and geographic criteria, such as those with populations over 95,000 in certain counties or bordering landmarks like Lake Lewisville. The bill allows these qualifying cities to pledge existing hotel/convention tax revenue to fund project-related obligations, without creating new taxes. This policy change directly affects eligible municipalities by providing a clearer legal pathway to finance convention facilities and hotel developments.
Issues: ✓ Budget & TaxesSupports Budget & TaxesExpands municipal use of existing hotel tax revenue for projects without new taxes, promoting fiscal flexibility and targeted funding for economic development.95% confidence
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 · 4 edits · May 16, 2025
MODERATE
The bill was significantly expanded from its original version, adding numerous new municipalities that are eligible to receive tax revenue for hotel and convention center projects. The original version covered only 18 specific municipalities, while the engrossed version now includes 70 different municipalities based on various criteria such as population, geographic location, and the presence of specific landmarks or institutions.
Scope change
The scope of the bill was substantially expanded from 18 eligible municipalities to 70 eligible municipalities, significantly broadening the number of communities that can access tax revenue for hotel and convention center development.
ELIGIBILITY

Added 52 new municipalities to the list of eligible entities that can receive tax revenue for hotel and convention center projects, increasing the total from 18 to 70.

Modified eligibility criteria for several existing municipalities by changing population thresholds, geographic requirements, or specific conditions they must meet.

Introduced new eligibility categories based on specific features such as proximity to national monuments, state parks, rivers, lakes, and cultural institutions like museums and halls of fame.

Changed the effective date provision to allow the bill to take effect immediately with a two-thirds vote, or otherwise take effect on September 1, 2025.

Floor votes · House May 15, 2025

How they voted

91–38
Passed · 16 other
Total votes 145
May 15, 2025
D Democratic60
47 Yea 7 Nay 6
78% Yea
R Republican85
44 Yea 31 Nay 10
51% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
26
Key actions
7
Committee
7
May 21, 2025
Committee
Referred to Economic Development
upper
May 21, 2025
Introduced
Read first time
upper
May 19, 2025
Introduced
Received from the House
upper
May 16, 2025
Lower · Passed
Passed
lower
May 15, 2025
Lower · Passed
Passed to engrossment
lower
May 8, 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
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Caroline Harris Davila
Caroline Harris Davila
RRepublican
TX
52