Relating to the ability of certain municipalities and counties to elect not to participate in certain event reimbursement programs and to the allocation of a portion of the state hotel occupancy tax revenue collected in those municipalities and counties.

HB 3259 allows cities and counties with populations under 400,000 to choose not to join two state event funding programs: the major events reimbursement program (Chapter 478) and the events trust fund (Chapter 480). If they opt out, they instead receive a portion of state hotel occupancy tax revenue collected in their area, as specified in Tax Code Section 156.2514. This opt-out lasts for four years, requiring written notice to the governor, and during this period, they cannot participate in the event programs or receive related disbursements. After four years, they may revoke the opt-out by notifying the governor before specific deadlines to rejoin the programs.