Relating to the authority of certain municipalities to use certain tax revenue derived from a hotel and convention center project.

HB 3954 amends Texas Tax Code to allow specific municipalities (meeting strict population, location, or geographic criteria like bordering Lake Lewisville or containing a Texas Tech component) to use hotel and convention center tax revenue for related project costs. The bill establishes eligibility for 16 defined city types, including those with populations over 95,000 in designated counties or with specific geographic features. It permits these cities to pledge existing hotel tax revenue to pay for obligations tied to such projects, without creating new taxes. The policy change directly affects only the qualifying municipalities listed in the bill’s 16 criteria.