BILL ANALYSIS

C.S.H.B. 2313

By: Tepper

Ways & Means

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee that the City of Lubbock has expressed its desire to designate a project financing zone (PFZ), which would entitle the city to receive the incremental hotel associated revenue from all hotels in the zone. C.S.H.B. 2313 seeks to allow the City of Lubbock to designate a PFZ.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 2313 amends the Tax Code to include a municipality with a population of more than 250,000 but less than 300,000 that contains a component institution of the Texas Tech University System among the municipalities authorized to designate a project financing zone for a qualified project, to use revenue from the municipal hotel occupancy tax to fund the project, and to pledge revenue derived from that tax or other eligible tax proceeds from a hotel located in the project financing zone for the payment of obligations issued or incurred to acquire, lease, construct, improve, enlarge, and equip the project.

C.S.H.B. 2313, to the extent of any conflict, prevails over another act of the 89th Legislature, Regular Session, 2025, relating to nonsubstantive additions to and corrections in enacted codes.

EFFECTIVE DATE

September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 2313 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

While both the substitute and the introduced include a specified municipality among the municipalities authorized to designate a project financing zone for a qualified project, to use revenue from the municipal hotel occupancy tax to fund the project, and to pledge revenue derived from that tax or other eligible tax proceeds for the payment of certain obligations, the substitute raises the minimum population for that municipality from 200,000 or more, as in the introduced, to more than 250,000.