S.B. No. 1921

AN ACT

relating to a common characteristic or use project in a public improvement district in certain municipalities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 372.0015, Local Government Code, is amended to read as follows:

Sec. 372.0015. DEFINITIONS [DEFINITION]. In this subchapter:

(1) "Extraterritorial[, "extraterritorial] jurisdiction" means extraterritorial jurisdiction as determined under Chapter 42.

(2) "Hotel" has the meaning assigned by Section 156.001, Tax Code. The term includes a property that begins operating as a hotel after the establishment of a public improvement district that includes the property.

SECTION 2. Section 372.0035(e), Local Government Code, is amended to read as follows:

(e) Notwithstanding Section 372.003, a [A] district created after September 1, 2019, may undertake a project under this section only for advertising, promotion, or business recruitment[, as authorized by Section 372.003(b)(13),] directly related to hotels.

SECTION 3. Section 372.005, Local Government Code, is amended by amending Subsection (b-1) and adding Subsection (b-2) to read as follows:

(b-1) A person is a qualified petitioner under Subsection (b-2) if the person:

(1) is employed in a management position responsible for overseeing the operations of a hotel, including:

(A) the owner or general manager of a hotel;

(B) a regional manager who oversees the operations of a hotel; or

(C) an employee of a management company who oversees the operation of a hotel; and

(2) provides a written statement that the person is authorized to enter into a binding agreement concerning the operation of a hotel on behalf of the owner of a hotel.

(b-2) Notwithstanding Subsection (b), a petition for the establishment of a public improvement district described by Section 372.0035(a-1) [372.0035(a) or (a-1)] is sufficient only if the petition is:

(1) signed by qualified petitioners who represent [record owners of taxable real property liable for assessment under the proposal who constitute:

[(1)] more than 60 percent of the appraised value of hotel [taxable real] property liable for assessment under the proposal, as determined by the current roll of the appraisal district in which the property is located,[;] and who:

[(2) more than 60 percent of:]

(A) represent more than 60 percent of all hotels [all record owners of taxable real property] that are liable for assessment under the proposal; or

(B) represent more than 60 percent of the area of all [taxable] real property that is liable for assessment under the proposal; and

(2) accompanied by the written statement described by Subsection (b-1)(2) for each qualified petitioner signing the petition.

SECTION 4. Sections 372.0035(a) and (e-1), Local Government Code, are repealed.

SECTION 5. Section 372.005, Local Government Code, as amended by this Act, applies only to a petition for the establishment or renewal of a public improvement district filed on or after the effective date of this Act. A petition filed before the effective date of this Act is governed by the law in effect on the date the petition is filed, and the former law is continued in effect for that purpose.

SECTION 6. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.

______________________________ ______________________________

President of the Senate Speaker of the House

I hereby certify that S.B. No. 1921 passed the Senate on April 16, 2025, by the following vote: Yeas 31, Nays 0.

______________________________ Secretary of the Senate

I hereby certify that S.B. No. 1921 passed the House on May 15, 2025, by the following vote: Yeas 107, Nays 34, two present not voting.

______________________________ Chief Clerk of the House

Approved:

______________________________

Date

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Governor