(a) This section applies only to:
(1) a municipality that:
(A) has a population of more than 900,000 and less than two million;
(B) has a population of more than 325,000 and less than 625,000;
(C) has a population of more than 197,000 and less than 200,500;
(D) has a population of more than 256,000 and less than 257,000;
(E) has a population of more than 20,000 and is wholly located in a county with a population of more than 62,000 and less than 68,000;
(F) has a population of more than 200,000 and borders Lake Lewisville;
(G) has a population of more than 138,000 and is wholly located in a county with a population of less than 265,000; or
(H) has a population of more than 130,000 and less than 140,000 and is wholly located in a county with a population of more than 900,000; and
(2) a public improvement district established under this subchapter and solely composed of territory in which the only businesses are:
(A) hotels with 100 or more rooms ordinarily used for sleeping, if the district is established by a municipality described by Subdivision (1)(A);
(B) hotels with 75 or more rooms ordinarily used for sleeping, if the district is established by a municipality described by Subdivision (1)(B), (D), (E), (F), (G), or (H); or
(C) hotels with 10 or more rooms ordinarily used for sleeping, if the district is established by a municipality described by Subdivision (1)(C).
(a-1) This section applies only to a public improvement district established by a municipality under this subchapter and solely composed of territory in which the only businesses are one or more hotels.

(b) A municipality may undertake a project that confers a special benefit on areas that share a common characteristic or use. The areas may be noncontiguous.
(c) This section does not prohibit a municipality from or limit a municipality to establishing a district that includes a noncontiguous area authorized by this subchapter.
(d) A municipality that undertakes a project under this section may:
(1) adopt procedures for the collection of assessments under this chapter that are consistent with the municipality’s procedures for the collection of a hotel occupancy tax under Chapter 351, Tax Code; and
(2) pursue remedies for the failure to pay an assessment under this chapter that are available to the municipality for failure to pay a hotel occupancy tax under Chapter 351, Tax Code.
(e) A district created after September 1, 2019, may undertake a project under this section only for advertising, promotion, or business recruitment, as authorized by § 372.003(b)(13), directly related to hotels.
(e-1) A municipality may undertake a project under this section only for a purpose described by § 372.003(b)(13).