Relating to the definition of a project financing zone for the purposes of certain municipalities that use certain tax revenue to fund convention center facilities, multipurpose arenas, venues, and related infrastructure.

HB 2877 amends Texas law to clarify the definition of a "project financing zone" for municipalities using tax revenue to fund convention centers, multipurpose arenas, venues, and related infrastructure. It requires municipalities to formally designate such zones via ordinance or agreement, with boundaries limited to a three-mile radius around the project center or a smaller contiguous area if the municipality qualifies under specific criteria. The designation must precisely specify boundaries (either coordinates for a 3-mile zone or exact lines for smaller zones) and expire 30 years after creation. This bill directly affects local governments seeking to leverage tax revenue for large-scale event facilities by establishing clear, standardized rules for zone creation and oversight.