Lt. Governor Releases Senate Interim Charges 

On March 27, Lieutenant Governor Dan Patrick announced the 2026 Interim Legislative Charges related to hotel tax reporting and project financing zones for the Texas Senate.

The Senate Economic Development Committee has been charged with “ensuring local hotel occupancy tax accountability” and “strengthening oversight of Project Financing Zones.”

Ensuring Local Hotel Occupancy Tax Accountability: Study the collection, reporting, and use of state and local hotel occupancy tax revenues, and review data and outcomes under the current legislative framework to assess whether it is operating as intended. Make recommendations to ensure the effectiveness of local incentives and safeguard long-term fiscal accountability. 

Strengthening Oversight of Project Finance Zones: Study the fiscal impact to the state of multiple project finance zones authorized within individual cities under Chapter 351, Tax Code, and evaluate whether requiring specific legislative approval for each newly proposed project finance zone would strengthen accountability and protect state revenues. Make recommendations to strengthen state oversight, prevent the proliferation of zones, and protect state tax revenues from unauthorized or inefficient use.

THLA is working with the Economic Development Committee on these charges and will be reaching out to municipal stakeholders for their input as well. This presents a positive opportunity to work with the state legislature to ensure the promotion and further growth of tourism and the hotel industry in cities and counties across Texas remain key focuses for lawmakers heading into the next legislative session.  

The full charges are available to read here.

If you have any questions, please do not hesitate to contact THLA’s legislative team:  news@texaslodging.com.