HB 3259 allows municipalities and counties with a population of 400,000 or less to opt out of participating in certain event reimbursement programs, including the major events reimbursement program and the events trust fund. Local governments that make this election would instead receive an allocation of state hotel occupancy tax revenue collected within their jurisdiction. The bill outlines a four-year cycle for opting in or out of these programs and establishes procedures for notifying the governor’s office of these decisions. Additionally, it modifies eligibility rules for event funding, prohibiting events held in municipalities or counties that opt out from receiving reimbursement funds​.