The 86th Texas Legislature gave the city of Frisco the go ahead to create a tourism public improvement district, which is expected to attract more visitors to the city.
The legislation, filed May 20, goes into effect Sept. 1.
A tourism public improvement district, or TPID, collects a 2% fee from room rates of participating hotels. The TPID fund will be used for marketing efforts and incentive packages to attract groups to Frisco.
More than a dozen hotels in Frisco would be eligible to participate in the TPID, which would help hotels fill their rooms with various conventions and events, Visit Frisco Executive Director Marla Roe said.
"[A TPID] allows you to be more competitive," Roe said. "It helps us expand our marketing reach to attract events to Frisco."
Roe said Visit Frisco is beginning the process to get the TPID implemented and expects to begin collecting funds from hotels by next April.
Only a handful of Texas cities are authorized to have a TPID. The first city authorized was Dallas in 2011.