BILL ANALYSIS

C.S.H.B. 4098

By: Harris Davila

Ways & Means

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee that hotel and convention center projects have become a key part of economic development strategies in municipalities across Texas, as these projects support tourism, generate local jobs, and drive hospitality and retail revenue for surrounding communities. Under current law, specific municipalities are authorized to access certain state and local tax revenue streams to help fund these projects, but the list of eligible municipalities is narrowly defined. C.S.H.B. 4098 seeks to enable an additional municipality to receive certain tax revenue derived from a hotel and convention center project and to pledge certain tax revenue to support infrastructure and debt service related to the project by including a municipality that meets certain population and geographic criteria among the municipalities authorized to do so.

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. 4098 amends the Tax Code to include a municipality that is located in a county with a population of 600,000 or more that is adjacent to the county that contains the State Capitol and that has a population of more than 16,000 but less than 27,000 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.

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. 4098 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 entitling a municipality described under the bill's provisions to receive the sales and use tax and, if applicable, mixed beverage tax revenue derived from qualified restaurants, bars, retail establishments, and swimming pools and swimming facilities owned or operated by the related qualified hotel that are located in the municipality.