BILL ANALYSIS

C.S.H.B. 3954

By: Cole

Ways & Means

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee that local leaders in the author's district have brought up needing the ability to use certain tax revenue derived from a hotel and convention center project and to use tax revenue to support the project. C.S.H.B. 3954 seeks to provide for this authority by including a municipality that meets certain criteria among the municipalities entitled to receive certain tax revenue derived from a hotel and convention center project and authorized to pledge certain tax revenue for the payment of obligations related to the project.

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. 3954 amends the Tax Code to include among the municipalities entitled to receive certain tax revenue derived from a hotel and convention center project and authorized to pledge or commit certain tax revenue for the payment of obligations related to the project a municipality that meets the following criteria:

· has a population of 10,000 or more but less than 75,000;

· is located in two counties, one of which is a county in which the State Capitol is located; and

· hosts an annual German festival.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 3954 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.

The substitute omits a provision present in the introduced that entitled a municipality described by the bill to receive the sales and use tax and, if applicable, mixed beverage tax revenue derived from qualifying restaurants, bars, retail establishments, swimming pools, and swimming facilities located near a qualified hotel or convention center facility.