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

SB 2565 amends Texas tax code to allow specific cities to use hotel and convention center tax revenue for certain projects. It directly affects municipalities meeting one of 16 defined criteria, such as cities bordering Lake Palestine, containing specific landmarks (like the American Quarter Horse Hall of Fame), or meeting population thresholds in particular geographic areas. The bill expands existing authority by clarifying which cities can redirect these tax revenues, rather than creating new taxes. This change would enable eligible cities to fund projects using revenue already collected from hotel stays and convention fees. The bill is currently in committee review with a favorable committee report.