By Green                                              H.B. No. 3644
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation, administration, powers and duties of the
 1-3     Hays County Development District No. 2; providing authority to
 1-4     impose taxes and issue bonds.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  CREATION OF DISTRICT. (a)  The Hays County
 1-7     Development District No. 2 is created as a county development
 1-8     district under Chapter 383, Local Government Code.
 1-9           (b)  The board by resolution may change the district's name.
1-10           (c)  The creation of the district is essential to accomplish
1-11     the purposes of Sections 52 and 52-a, Article III, and Section 59,
1-12     Article XVI, Texas Constitution, and other public purposes stated
1-13     in this Act.
1-14           SECTION 2.  DECLARATION OF INTENT. (a)  The creation of the
1-15     district is necessary to promote, develop, encourage, and maintain
1-16     employment, commerce, transportation, housing, tourism, recreation,
1-17     arts, entertainment, economic development, safety, environmental
1-18     protection, land and natural resource conservation, and the public
1-19     welfare in the area within the district.
1-20           (b)  The creation of the district and this legislation are
1-21     not to be interpreted to relieve the county or the municipality
1-22     from providing the level of services, as of the effective date of
1-23     this Act, to the area in the district or to release the county or
 2-1     the municipality from the obligations each entity has to the
 2-2     provide services to that area.  The district is created to
 2-3     supplement and not supplant the municipal or county services
 2-4     provided in the area in the district.
 2-5           (c)  By creating the district and in authorizing the
 2-6     municipality, county, and other political subdivisions to contract
 2-7     with the district, the legislature has established a program to
 2-8     accomplish the public purposes set out in Section 52-a, Article
 2-9     III, Texas Constitution.
2-10           SECTION 3.  DEFINITIONS. In this Act:
2-11                 (1)  "Board" means the board of directors of the
2-12     district.
2-13                 (2)  "County" means Hays County.
2-14                 (3)  "District" means the Hays County Development
2-15     District No. 2.
2-16                 (4)  "Municipality" means the City of Austin.
2-17           SECTION 4.  BOUNDARIES. The district includes all of the
2-18     territory contained within the following described area:
2-19           A 904.814 acre tract out of the C. W. Hudson Survey No. 43,
2-20     the H. W. Cocke Survey No. 83, the H. W. Cocke Survey No. 432, the
2-21     J. R. Worrall Survey No. 68, the J. E. Crawford Survey, the Thomas
2-22     H. Crawford Survey No. 12, the J. S. Arrington Survey No. 57, the
2-23     F. W. Sutor Survey No. 50, and the Calvin Rowell Survey No. 396 in
2-24     Hays County, Texas, being a portion of that 964.55 acre tract,
2-25     described as Tract 1, all of that 12.76 acre tract, described as
2-26     Tract 2, that 5.00 acre tract, described as Tract 3, that 5.00 acre
 3-1     tract, described as Tract 4, that 5.00 acre tract, described as
 3-2     Tract 5, that 5.00 acre tract, described as Tract 6, and the
 3-3     remainder of that 209.48 acre tract, described as Tract 11, all
 3-4     conveyed to Capital Pacific Holdings, LLC, by deed recorded in
 3-5     Volume 13285, Page 694 of the Travis County Deed Records and in
 3-6     Volume 1460, Page 728 of the Hays County Deed Records, and being
 3-7     all of the three (3) 5.00 acre tracts conveyed to Capital Pacific
 3-8     Holdings, LLC, by deed recorded in Document No. 9913092 of the
 3-9     Official Public Records of Hays County; the said 904.814 acre tract
3-10     is more particularly described by metes and bounds as follows:
3-11           COMMENCING, at a 5/8" iron rod found for the northeast corner
3-12     of the said 964.55 acre tract, being on the southerly line of that
3-13     164.931 acre tract conveyed to CGP-Circle C Limited Partnership by
3-14     deed recorded in Volume 13188, Page 15 of the Travis County Deed
3-15     Records, and the northwest corner of that 283 acre tract conveyed
3-16     to Ira Jon Yates by deed recorded in Volume 7716, Page 845 and
3-17     Volume 11042, Page 933 the said Travis County Deed Records;
3-18           THENCE, leaving the southerly line of the said 164.931 acre
3-19     tract, with the common line between the said 964.55 acre tract and
3-20     the 283 acre tract, for the following three (3) courses:
3-21           (1)  S02 05'59"E, 2543.00 feet to a 1/2" iron rod with
3-22     plastic cap found for corner;
3-23           (2)  N87 54'01"E, 122.41 feet to a 1/2" iron rod with plastic
3-24     cap found for corner;
3-25           (3)  S02 37'47"E, at 1052.11 feet pass a 1/2" iron rod found
3-26     0.93 feet to the right, for a total distance of 1435.39 feet to a
 4-1     calculated point on the Travis and Hays County line, being the
 4-2     northeast corner and POINT OF BEGINNING of the herein described
 4-3     tract;
 4-4           THENCE, leaving the southerly line of said Travis County and
 4-5     continuing with the common line between the said 964.55 acre tract
 4-6     and the 283 acre tract for the following two (2) courses:
 4-7           (1)  S02 37'47"E, 217.52 feet to a 1/2" iron rod found for
 4-8     corner;
 4-9           (2)  S19 55'59"E, at 532.33 feet pass a 1/2" iron rod found
4-10     2.20 feet to the right, at 608.10 feet pass a 1/2" iron rod found
4-11     0.96 feet to the right, for a total distance of 895.56 feet to a
4-12     60d nail found in a fence corner post for the southwest corner of
4-13     the said 283 acre tract, being the northwest corner of that 76.758
4-14     acre tract conveyed to Cal E. Varner by deed recorded in Volume
4-15     12811, Page 504 of the said Travis County Deed Records;
4-16           THENCE, leaving the southerly line of the said 283 acre
4-17     tract, with the common line between the said 76.758 acre tract and
4-18     the 964.55 acre tract, for the following two (2) courses:
4-19           (1)  S20 26'57"E, 514.02 feet to a 60d nail found in a fence
4-20     corner post for corner;
4-21           (2)  S02 25'19"E, 541.61 feet to a cotton gin spindle found
4-22     for the southwest corner of the said 76.758 acre tract, being the
4-23     northwest corner of the said remainder of the 209.48 acre tract;
4-24           THENCE, N82 06'00"E, leaving the easterly line of the said
4-25     964.55 acre tract, with the common line between the said remainder
4-26     of the 209.48 acre tract and the 76.758 acre tract, 1819.59 feet to
 5-1     a calculated point on the northerly line of said Hays County, being
 5-2     on the southerly line of said Travis County, from which a 1/2" iron
 5-3     rod found for the northeast corner of the said remainder of the
 5-4     209.48 acre tract, being the southwest corner of the said 76.758
 5-5     acre tract and a point in the westerly line of that 179.539 acre
 5-6     tract conveyed to Geoffrey D. Weisbart and Diane B. Senterfitt by
 5-7     deed recorded in Volume 11962, Page 1941 of the Travis County Deed
 5-8     Records bears N82 06'00", 223.93 feet;
 5-9           THENCE, S51 42'24"E, leaving the southerly line of the said
5-10     76.758 acre tract, across the said remainder of the 209.48 acre
5-11     tract with the common line between Hays and Travis Counties, 290.20
5-12     feet to a calculated point on the common line between the remainder
5-13     of the said 209.48 acre tract and the 179.539 acre tract;
5-14           THENCE, leaving the southerly line of said Travis County and
5-15     continuing across said Hays County, with the common line between
5-16     the said remainder of the 209.48 acre tract and the 179.539 acre
5-17     tract, for the following four (4) courses:
5-18           (1)  S01 37'14"E, 1128.83 feet to a fence corner post found
5-19     for corner;
5-20           (2)  N88 20'41"E, 100.06 feet to a 1/2" iron rod found for
5-21     corner;
5-22           (3)  S01 37'56"E, 693.88 feet to a 1/2" iron rod found for
5-23     corner;
5-24           (4)  N88 10'38"E, 1660.80 feet to a 3" metal fence post for
5-25     corner;
5-26           THENCE, S02 14'15"E, continuing with the easterly line of the
 6-1     said remainder of the 209.48 tract, at 1310.36 feet pass a 3" metal
 6-2     fence post found 0.92 feet to the left for the southwest corner of
 6-3     the said 179.539 acre tract, being the northwest corner of that
 6-4     0.2308 acre tract conveyed to John August Wilhelm by deed recorded
 6-5     in Volume 11961, Page 2120 of the Travis County Deed Records, at
 6-6     1454.47 feet pass a cotton gin spindle found 1.59 feet to the right
 6-7     for the southwest corner of the said 0.2308 acre tract, being the
 6-8     northwest corner of that 0.714 acre tract conveyed to Wilhelm Hill
 6-9     Properties by deed recorded in Volume 11961, Page 2127 of the
6-10     Travis County Deed Records, at 1902.54 feet pass a 1/2" iron rod
6-11     found 0.63 feet to the right for the southwest corner of the said
6-12     0.714 acre tract, being the northwest corner of that 4.893 acre
6-13     tract conveyed to Peter Douglas Winship by deed recorded in Volume
6-14     1139, Page 475 of the Hays County Deed Records, for a total
6-15     distance of 2446.55 feet to a 1/2" iron rod found for the southeast
6-16     corner of the aforesaid remainder of the 209.48 acre tract, being
6-17     the southwest corner of the said 4.893 acre tract and a point on
6-18     the northerly right-of-way line of Bliss Spillar Road (County Road
6-19     224);
6-20           THENCE, S88 32'25"W, leaving the westerly line of the said
6-21     4.893 acre tract, with the common line between the remainder of the
6-22     said 209.48 acre tract and Bliss Spillar Road, 100.02 feet to a 60d
6-23     nail found in a fence corner post for the southwest corner of the
6-24     remainder of the said 209.48 acre tract, being the northwest corner
6-25     of the said Bliss Spillar Road and an angle point in the easterly
6-26     line of the said 12.76 acre tract;
 7-1           THENCE, leaving the southerly line of the said remainder of
 7-2     the 209.48 acre tract, with the common line between Bliss Spillar
 7-3     Road and the said 12.76 acre tract for the following two (2)
 7-4     courses:
 7-5           (1)  S04 30'52"E, 28.91 feet to a 60d nail found in a fence
 7-6     post for corner;
 7-7           (2)  S55 00'29"E, 13.53 feet to a 1/2" iron rod found for the
 7-8     southwest corner of said Bliss Spillar Road, being the northwest
 7-9     corner of that 132.105 acre tract conveyed to S. R. Baker by deed
7-10     recorded in Volume 892, Page 273 of the Hays County Deed Records;
7-11           THENCE, leaving the southerly line of said Bliss Spillar
7-12     Road, with the common line between the said 12.76 acre tract and
7-13     the 132.105 acre tract for the following four (4) courses:
7-14           (1)  S22 34'33"W, 64.75 feet to a 1/2" iron rod found for
7-15     corner;
7-16           (2)  S03 36'07"E, 381.35 feet to a 1/2" iron rod found for
7-17     corner;
7-18           (3)  S01 15'51"W, 95.85 feet to a 1/2" iron rod found for
7-19     corner;
7-20           (4)  S01 46'45"E, 109.24 feet to a 1/2" iron rod with plastic
7-21     cap found for the southeast corner of the said 12.76 acre tract,
7-22     being an easterly corner of that 1325.00 acre tract conveyed to the
7-23     City of Austin by deed recorded in volume 1473, Page 961 of the
7-24     Hays County Deed Records;
7-25           THENCE, leaving the westerly line of the said 132.105 acre
7-26     tract, with the common line between the said 12.76 acre tract and
 8-1     the 1325.00 acre tract for the following three (3) courses:
 8-2           (1)  S87 30'16"W, 567.17 feet to a 1/2" iron rod found for
 8-3     the southwest corner of the said 12.76 acre tract;
 8-4           (2)  N01 34'01"W, 979.06 feet to a 1/2" iron rod with plastic
 8-5     cap found for the northwest corner of the said 12.76 acre tract;
 8-6           (3)  N87 24'30"E, 567.29 feet to a 1/2" iron rod found for
 8-7     the northeast corner of the said 12.76 acre tract, being on the
 8-8     westerly line of the said remainder of the 209.48 acre tract;
 8-9           THENCE, N02 01'08"W, leaving the northerly line of the said
8-10     12.76 acre tract, with the common line between the said remainder
8-11     of the 209.48 acre tract and the 1325.00 acre tract, 110.66 feet to
8-12     a 1/2" iron rod found for the most easterly northeast corner of the
8-13     aforesaid 1325.00 acre tract, being the southeast corner of the
8-14     said 964.55 acre tract;
8-15           THENCE, S89 08'27"W, leaving the westerly line of the said
8-16     209.48 acre tract, with the common line between the said 964.55
8-17     acre tract and the 1325.0 acre tract, 7060.12 feet to a 1/2" iron
8-18     rod found for the southwest corner of the aforesaid 964.55 acre
8-19     tract, from which a 60d nail found for the northeast corner of that
8-20     655.771 acre tract conveyed to Capital Pacific Holdings, LLC, by
8-21     deed recorded in Document No. 9827120 of the Official Public
8-22     Records of Hays County, bears S02 07'50"E, 91.37 feet;
8-23           THENCE, continuing with the common line between the said
8-24     964.55 acre tract and the 1325.0 acre tract for the following three
8-25     (3) courses:
8-26           (1)  N02 10'23"W, 2006.86 feet to a fence post found for
 9-1     corner;
 9-2           (2)  N48 56'11"W, 1383.96 feet to a 60d nail found in a 10"
 9-3     elm for corner;
 9-4           (3)  N51 06'36"W, 55.68 feet to a 60d nail found in a 18"
 9-5     hackberry, being a southeast corner of that 110.54 acre tract
 9-6     conveyed to Richard C. Sanders and Nancy A. Turner by deed recorded
 9-7     in Volume 960, Page 258 of the Hays County Deed Records and an
 9-8     angle point at the southeast corner of that Cross Conveyance Deed
 9-9     between the said 964.55 acre tract and the 110.54 acre tract as
9-10     recorded in Document No. 00010169 of the Official Public Records of
9-11     Hays County.
9-12           THENCE, leaving the northerly line of the said 1325.0 acre
9-13     tract, with the said Cross Conveyance Deed defining the common line
9-14     between the said 964.55 acre tract and the 110.54 acre tract, for
9-15     the following ten (10) courses:
9-16           (1)  N17 31'00"E, 104.47 feet to a 1/2" iron rod, with
9-17     plastic cap stamped "Carson and Bush Professional Surveyors," found
9-18     for corner;
9-19           (2)  N02 39'44"E, 435.63 feet to a 1/2" iron rod found for
9-20     corner;
9-21           (3)  N03 00'10"W, 711.50 feet to a 1/2" iron pipe found for
9-22     corner;
9-23           (4)  N09 43'25"W, 171.53 feet to a 1/2" iron rod, with
9-24     plastic cap stamped "Carson and Bush Professional Surveyors," found
9-25     for corner;
9-26           (5)  N02 55'14"E, 229.69 feet to a cotton gin spindle found
 10-1    for corner;
 10-2          (6)  N02 16'32"W, 282.47 feet to a 1/2" iron rod, with
 10-3    plastic cap stamped "Carson and Bush Professional Surveyors," found
 10-4    for corner;
 10-5          (7)  N03 45'17"E, 337.13 feet to a 1" iron pipe found for
 10-6    corner;
 10-7          (8)  N05 17'57"E, 209.25 feet to a 1/2" iron rod, with
 10-8    plastic cap stamped "Carson and Bush Professional Surveyors," found
 10-9    for corner;
10-10          (9)  N24 35'55"W, 186.20 feet to a 1/2" iron rod, with
10-11    plastic cap stamped "Carson and Bush Professional Surveyors," found
10-12    for corner;
10-13          (10)  N87 51'31"E, 318.51 feet to a 1/2" iron rod, with
10-14    plastic cap stamped "Carson and Bush Professional Surveyors," found
10-15    for the point of termination of the said Cross Conveyance Deed
10-16    recorded in Document No. 00010169 of the Official Public Records of
10-17    Hays County, being the southwest corner of the remainder of that
10-18    235.94 acre tract conveyed to Lewis Eugene Rowell by deed recorded
10-19    in Volume 499, Page 396 and Volume 1062, Page 872 of the Hays
10-20    County Plat Records and the beginning of that boundary line
10-21    agreement recorded in Volume 12647, Page 676  of the Travis County
10-22    Deed Records and Volume 1203, Page 390 of the Hays County Deed
10-23    Records;
10-24          THENCE, leaving the easterly line of the said 110.54 acre
10-25    tract with the common line, as defined by the boundary line
10-26    agreement, between the 964.55 acre tract and the said remainder of
 11-1    the 235.94 acre tract, for the following six (6) courses:
 11-2          (1)  N87 20'18"E, 545.04 feet to a 1/2" iron rod found for
 11-3    corner;
 11-4          (2)  N02 40'16"W, 1600.51 feet to a 1/2" iron rod found for
 11-5    corner;
 11-6          (3)  S87 19'59"W, 833.83 feet to a 1/2" iron rod found for
 11-7    corner;
 11-8          (4)  N01 41'52"W, 833.40 feet to a 1/2" iron rod found for
 11-9    corner;
11-10          (5)  N87 19'56"E, 888.65 feet to a 1/2" iron rod found for
11-11    corner;
11-12          (6)  N02 37'56"W, 334.38 feet to a calculated point on the
11-13    aforesaid common line between Hays and Travis Counties, from which
11-14    a 1/2" iron rod found on the aforesaid common line between the
11-15    964.55 acre tract and the remainder of the 235.94 acre tract bears
11-16    N02 37'56"W, 644.56 feet;
11-17          THENCE, S51 42'24"E, leaving the said easterly line of the
11-18    remainder of the 235.94 acre tract, across the said 964.55 acre
11-19    tract, with the northerly line of Hays County, being the southerly
11-20    of Travis County, at a distance of 503.73 feet pass a concrete
11-21    monument (mile marker #20) found, for a total distance of 3989.77
11-22    feet to the PLACE OF BEGINNING, CONTAINING within these metes and
11-23    bounds 904.814 acres of land.
11-24          SECTION 5.  FINDINGS RELATING TO BOUNDARIES. The boundaries
11-25    and field notes of the district form a closure. If a mistake is
11-26    made in the field notes or in copying the field notes in the
 12-1    legislative process, it does not affect the district's:
 12-2                (1)  organization, existence, or validity;
 12-3                (2)  right to issue any type of bond for the purposes
 12-4    for which the district is created or to pay the principal of and
 12-5    interest on a bond;
 12-6                (3)  right to impose or collect taxes; or
 12-7                (4)  legality of operation.
 12-8          SECTION 6.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  All
 12-9    the land and other property included in the district will be
12-10    benefitted by the improvements and services to be provided by the
12-11    district under powers conferred by Sections 52 and 52-a, Article
12-12    III, and Section 59, Article XVI, Texas Constitution, and other
12-13    powers granted under this Act, and the district is created to serve
12-14    a public use and benefit.
12-15          (b)  The creation of the district is in the public interest
12-16    and is essential to:
12-17                (1)  further the public purposes of the development and
12-18    diversification of the economy of the state; and
12-19                (2)  eliminate unemployment and underemployment and
12-20    develop or expand transportation and commerce.
12-21          (c)  The district will:
12-22                (1)  promote the health, safety, and general welfare of
12-23    residents, employers, employees, visitors, tourists, consumers in
12-24    the district, and the general public;
12-25                (2)  provide needed funding to preserve, maintain, and
12-26    enhance the economic health and vitality of the area within the
 13-1    district as a community and tourism and business center;
 13-2                (3)  further promote the health, safety, welfare, and
 13-3    enjoyment of the public by providing pedestrian ways and by
 13-4    landscaping and developing certain areas in the district, which are
 13-5    necessary for the restoration, preservation, and enhancement of
 13-6    scenic and aesthetic beauty; and
 13-7                (4)  further the public purpose of developing and
 13-8    diversifying the economy of this state by providing incentives for
 13-9    the location and development of facilities and projects to attract
13-10    visitors and tourists; and
13-11                (5)  conserve the natural resources of the state by
13-12    engaging in environmental protection and mitigation within and
13-13    without the boundaries of the district and by protecting streams.
13-14          (d)  Pedestrian ways along or across a street, whether at
13-15    grade or above or below the surface, and street lighting, street
13-16    landscaping, and street art objects are parts of and necessary
13-17    components of a street and are considered to be a street or road
13-18    improvement.
13-19          (e)  The district will not act as the agent or
13-20    instrumentality of any private interest even though many private
13-21    interests will be benefitted by the district, as will the general
13-22    public.
13-23          SECTION 7.  GENERAL POWERS.  (a)  Except as provided by this
13-24    Act, the district has all of the rights, powers, privileges,
13-25    authority, and functions conferred on county development districts
13-26    by Chapter 383, Local Government Code, and municipal management
 14-1    districts by Chapter 375, Local Government Code, and by the general
 14-2    laws of the state on conservation and reclamation districts created
 14-3    under Section 59, Article XVI, Texas Constitution, and on road
 14-4    districts and road utility districts created pursuant to Section
 14-5    52, Article III, Texas Constitution, including those conferred by
 14-6    Chapter 54, Water Code, together with the additional rights,
 14-7    powers, privileges, authority, and functions contained in this Act.
 14-8          (b)  If any provision of the general law is in conflict or
 14-9    inconsistent with this Act, this Act prevails.  Any general law
14-10    which supplements the power and authority of the district, to the
14-11    extent not in conflict or inconsistent with this Act, is adopted
14-12    and incorporated by reference.
14-13          (c)  Subchapters B and C of Chapter 383, Local Government
14-14    Code, and Sections 383.084 and 383.102 through 383.105, 383.111,
14-15    and 383.122, Local Government Code and Section 352.107, Tax Code,
14-16    do not apply to the district.
14-17          SECTION 8.  ADDITIONAL POWERS OF DISTRICT.  (a)  The district
14-18    may exercise the powers given to a corporation created under
14-19    Section 4B, Development Corporation Act of 1979 (Article 5190.6,
14-20    Vernon's Texas Civil Statutes).
14-21          (b)  The district may exercise the powers granted to eligible
14-22    political subdivisions under Chapter 221, Natural Resources Code.
14-23          (c)  The district may exercise any of its powers in areas
14-24    outside the boundaries of the district if the board determines that
14-25    there is a benefit to the district.
14-26          (d)  The district may levy, assess, and apply the proceeds
 15-1    from a limited sales and use tax, as provided by this Act, for the
 15-2    district's purposes.
 15-3          (e)  The district may impose, collect, and apply the proceeds
 15-4    from a hotel occupancy tax, as provided by this Act, for the
 15-5    district's purposes.
 15-6          (f)  The district has the power to provide for general
 15-7    promotion and tourist advertising of the district and its vicinity
 15-8    and to conduct a marketing program to attract visitors and
 15-9    tourists, any of which may be conducted by the district pursuant to
15-10    contracts for professional services with persons or organizations
15-11    selected by the district.
15-12          (g)  The district has the power to acquire, construct,
15-13    finance, develop, own, operate, maintain and lease, as lessee or
15-14    lessor, hotels, golf courses, convention facilities, conference
15-15    centers, arenas, amphitheaters, auditoriums, exhibition halls, and
15-16    park and recreation facilities, including swimming pools and tennis
15-17    courts.
15-18          (h)  The district has the power to acquire, construct,
15-19    finance, develop, own, operate, maintain and lease, as lessee or
15-20    lessor, roads, streets, pedestrian and transportation facilities
15-21    and utilities.
15-22          (i)  The district has the power to finance and engage in
15-23    environmental protection and mitigation or improvements, to protect
15-24    streams, preserve open spaces, and to acquire and own property
15-25    within and without the boundaries of the district for such
15-26    purposes.
 16-1          (j)  The district shall have the power of eminent domain to
 16-2    accomplish any corporate purpose of the district, even if located
 16-3    within the boundaries of the municipality.  The power of eminent
 16-4    domain shall be exercised in accordance with Section 49.222, Water
 16-5    Code.
 16-6          SECTION 9.  LIMITATION ON POWERS OF DISTRICT.  The district
 16-7    does not have the power to levy assessments, impact fees, or ad
 16-8    valorem property taxes.  Subchapters F, G, and H of Chapter 375,
 16-9    Local Government Code, are not applicable to the district.
16-10          SECTION 10.  LIBERAL CONSTRUCTION OF ACT.  This Act shall be
16-11    liberally construed in conformity with the findings and purposes
16-12    stated in this Act.
16-13          SECTION 11.  BOARD OF DIRECTORS IN GENERAL.  (a)  The
16-14    district is governed by a board of 5 directors who serve staggered
16-15    terms of four years.
16-16          (b)  A director shall receive compensation as provided by
16-17    Section 49.060, Water Code.
16-18          (c)  Directors and officers of the district shall be public
16-19    officials and shall be entitled to governmental immunity for their
16-20    actions in their capacity as directors and officers of the
16-21    district.
16-22          (d)  Employees of the district shall be entitled to
16-23    governmental immunity for their actions in their capacity as
16-24    employees of the district.
16-25          SECTION 12.  APPOINTMENT OF DIRECTORS.  (a)  The mayor and
16-26    members of the governing body of the municipality shall appoint
 17-1    directors from persons recommended by the board.  A person is
 17-2    appointed if a majority of the members and the mayor vote to
 17-3    appoint that person.
 17-4          (b)  Representatives of an owner or operator of, or someone
 17-5    who proposes to own or operate, a hotel, conference center or
 17-6    convention center within the district shall be appointed to
 17-7    position numbers one and two of the board.
 17-8          (c)  A representative of an owner or operator of, or someone
 17-9    who proposes to own or operate, a golf course within the district
17-10    shall be appointed to position number three of the board.
17-11          (d)  Representatives of a nonprofit corporation involved with
17-12    land conservation or environmental protection shall be appointed to
17-13    position numbers four and five of the board.
17-14          (e)  A person demonstrates their capacity as a representative
17-15    by providing the board with a written letter signed by the person
17-16    or organization which they represent.
17-17          SECTION 13.  CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.  (a)
17-18    Except as provided in this section:
17-19                (1)  a director may participate in all board votes and
17-20    decisions; and
17-21                (2)  Chapter 171, Local Government Code, governs
17-22    conflict of interests for board members.
17-23          (b)  Section 171.004, Local Government Code, does not apply
17-24    to the district. A director who has a substantial interest in a
17-25    business or charitable entity that will receive a pecuniary benefit
17-26    from a board action shall file a one-time affidavit declaring the
 18-1    interest.  An additional affidavit is not required if the
 18-2    directors' interest changes.  After the affidavit is filed with the
 18-3    board secretary, the director may participate in a discussion or
 18-4    vote on that action if:
 18-5                (1)  a majority of the directors have a similar
 18-6    interest in the same entity; or
 18-7                (2)  all other similar business or charitable entities
 18-8    in the district will receive a similar pecuniary benefit.
 18-9          (c)  A director who is also an officer or employee of a
18-10    public entity may not participate in the discussion of or vote on a
18-11    matter regarding a contract with that same public entity.
18-12          (d)  For purposes of this section, a director has a
18-13    substantial interest in a charitable entity in the same manner that
18-14    a person would have a substantial interest in a business entity
18-15    under Section 171.002, Local Government Code.
18-16          SECTION 14.  LIMITED SALES AND USE TAX.  (a)  Without further
18-17    authorization, the district may impose a sales and use tax for the
18-18    benefit of the district by order or resolution of the board.
18-19          (b)  The board may adopt, repeal, or change the rate of the
18-20    limited sales and use tax authorized by this Act without holding an
18-21    election.
18-22          (c)  The provisions of Subchapters B, C, and D, Chapter 322,
18-23    Tax Code, relating to sales and use taxes for special purpose
18-24    taxing authorities shall apply to the application, collection, and
18-25    administration of a sales and use tax imposed under this Act, to
18-26    the extent not inconsistent with the provisions of this Act, and
 19-1    with the same effect as if references therein to a taxing entity or
 19-2    the entity area referred to the district or the area within the
 19-3    boundaries of the district.
 19-4          (d)  A tax imposed under this Act or the repeal or change in
 19-5    rate of a tax under this Act takes effect on the first day of the
 19-6    first calendar quarter occurring after the expiration of the first
 19-7    complete calendar quarter occurring after the date on which the
 19-8    comptroller receives a copy of the order or resolution of the board
 19-9    adopting, repealing, or changing the rate of the limited sales and
19-10    use tax authorized by this Act.
19-11          (e)  On adoption of the tax authorized by this Act, there is
19-12    imposed a tax on the receipts from the sale at retail of taxable
19-13    items within the district at a rate not to exceed two percent, as
19-14    well as an excise tax on the use, storage, or other consumption
19-15    within the district of taxable items purchased, leased, or rented
19-16    from a retailer during the period that the tax is effective within
19-17    the district.  The rate of the excise tax is the same as the rate
19-18    of the sales tax portion of the tax and is applied to the sales
19-19    price of the taxable item.  With respect to a taxable service,
19-20    "use" means the derivation in the district of direct or indirect
19-21    benefit from the service.
19-22          (f)  The district is entitled to examine and receive
19-23    information from the Comptroller of Public Accounts related to the
19-24    levy, assessment, and collection of sales and use taxes to the same
19-25    extent as if the district were a municipality.
19-26          SECTION 15.  LIMITATION ON ADOPTION OF TAX.  (a)  the
 20-1    district may adopt a sales and use tax only if as a result of
 20-2    adoption of the tax the combined rate of all local sales and use
 20-3    taxes imposed by political subdivisions having territory in the
 20-4    district will not exceed two percent.
 20-5          (b)  If, as a result of a general purpose annexation by the
 20-6    municipality of territory in the district, the overlapping local
 20-7    sales and use tax rates in the area in the district will exceed two
 20-8    percent, the district's sales and use tax rate is automatically
 20-9    reduced to a rate that when added to the combined rate of local
20-10    sales and use taxes will equal two percent, in accordance with
20-11    Section 383.106, Local Government Code.
20-12          (c)  If the district's sales and use tax rate is reduced in
20-13    accordance with Subsection (b), Section 383.106(c), Local
20-14    Government Code, shall apply.
20-15          SECTION 16.  USE OF SALES AND USE TAX PROCEEDS.  Sales and
20-16    use taxes collected under this Act may be used only for the
20-17    purposes for which the district was created, and the district may
20-18    pledge the revenue derived from the district sales and use tax to
20-19    the payment of bonds, notes or other obligations issued by the
20-20    district.
20-21          SECTION 17.  HOTEL OCCUPANCY TAX.  (a)  In this section,
20-22    "hotel" has the meaning assigned by Section 156.001, Tax Code.
20-23          (b)  The board by order or resolution may impose a tax on a
20-24    person who, under a lease, concession, permit, right of access,
20-25    license, contract, or agreement, pays for the use or possession or
20-26    for the right to use or possess a room that is in a hotel located
 21-1    in the boundaries of the district, costs $2 or more each day, and
 21-2    is ordinarily used for sleeping.  The tax authorized by this
 21-3    section may be imposed at any rate not to exceed the greater of:
 21-4    (i) nine percent of the price paid for a room in a hotel, or (ii)
 21-5    the rate of hotel occupancy tax imposed by the municipality.
 21-6          (c)  A district by order or resolution may repeal, increase,
 21-7    or decrease the rate of a tax imposed under this section.  The rate
 21-8    of tax imposed under this section shall be equal to or greater than
 21-9    the rate of hotel occupancy tax imposed by the municipality.
21-10          (d)  Except as inconsistent with this Act, Sections 352.004,
21-11    352.0041, 352.005, and 352.007, Tax Code, govern the imposition and
21-12    collection of a hotel occupancy tax authorized under this Act.  A
21-13    reference in Sections 352.004, 352.0041, 352.005, and 352.007, Tax
21-14    Code, to a county, the county's officers or governing body, or the
21-15    county attorney is a reference to the district, the district's
21-16    officers or governing body, or the district's attorney, as
21-17    appropriate.
21-18          (e)  The district is entitled to examine and receive
21-19    information related to the levy, assessment, and collection of
21-20    hotel occupancy taxes to the same extent as if the district were a
21-21    municipality.
21-22          SECTION 18.  USE OF HOTEL OCCUPANCY TAX PROCEEDS.  The
21-23    district shall apply the proceeds from a hotel occupancy tax
21-24    imposed under this Act for any of the district's purposes and for
21-25    the purposes described by Section 352.1015, Tax Code, to the extent
21-26    considered appropriate by the board.  The district may pledge the
 22-1    revenue derived from a hotel occupancy tax imposed under this Act
 22-2    to the payment of bonds, notes or other obligations issued by the
 22-3    district.
 22-4          SECTION 19.  DEDICATION OF REVENUES.
 22-5          (a)  The district shall use 25 percent of all district
 22-6    revenues, 50 percent of which shall remain in Hays County,
 22-7    including revenues from the sales and use and hotel occupancy taxes
 22-8    authorized by this Act, for the following district purposes:
 22-9                (1)  environmental protection and mitigation;
22-10                (2)  construction of environmental improvements or
22-11    facilities;
22-12                (3)  protection of streams;
22-13                (4)  maintenance and preservation of open spaces; and
22-14                (5)  the acquisition and ownership of property for such
22-15    purposes.
22-16          (b)  The district shall use ten percent of all district
22-17    revenues, including revenues from the sales and use and hotel
22-18    occupancy taxes authorized by this Act, for the purpose of
22-19    promoting education in the county.
22-20          (c)  the requirements of this section apply to the aggregate
22-21    district revenues as opposed to each source of revenues.
22-22          (d)  The use of revenues for projects carried out pursuant to
22-23    this section may be subordinate to the payment of bonds, notes or
22-24    other obligations issued by the district.
22-25          (e)  Projects or services implemented pursuant to this
22-26    section may be located inside or outside the boundaries of the
 23-1    district.
 23-2          (f)  The board shall prepare a plan describing the manner in
 23-3    which funds will be spent pursuant to subsection (a).  Such plan
 23-4    shall be modified and amended as necessary.  The board shall submit
 23-5    the plan, and any modification or amendment thereto, to the
 23-6    municipality for its approval.
 23-7          SECTION 20.  BONDS AND NOTES.  (a)  The Board may issue
 23-8    bonds, notes and other obligations in the manner provided by
 23-9    Subchapter J, Chapter 375, Local Government Code.  Section 375.207,
23-10    Local Government Code, does not apply to bonds, notes or other
23-11    obligations issued by the district.
23-12          (b)  In addition to the sources of money described by
23-13    Subchapter J, Chapter 375, Local Government Code, the bonds, notes
23-14    or other obligations of the district may be secured and made
23-15    payable, wholly or partly, by a pledge of any part of the net
23-16    proceeds the district receives from:
23-17                (1)  the sales and use tax authorized by this Act;
23-18                (2)  the hotel occupancy tax authorized by this Act;
23-19                (3)  repayments the district receives from the
23-20    municipality because of a required reduction of the district's
23-21    sales and use tax or hotel occupancy tax; and
23-22                (4)  revenues from district contracts, leases and
23-23    operation of district projects and improvements.
23-24          SECTION 21.  AGREEMENTS:  GENERAL; DONATIONS, INTERLOCAL
23-25    AGREEMENTS, AND LAW ENFORCEMENT SERVICES.  (a)  The district may
23-26    make an agreement with or accept a donation, grant, or loan from
 24-1    any person.
 24-2          (b)  The implementation of a project is a governmental
 24-3    function or service for the purposes of Chapter 791, Government
 24-4    Code.
 24-5          (c)  To protect the public interest, the district may
 24-6    contract with the municipality or the count for the municipality or
 24-7    county to provide law enforcement services in the district for a
 24-8    fee.
 24-9          (d)  The district is a district for purposes of Chapter
24-10    43.0751, Local Government Code, and may enter into a strategic
24-11    partnership agreement with the municipality.
24-12          SECTION 22.  ECONOMIC DEVELOPMENT PROGRAMS.  The board may
24-13    establish and provide for the administration of one or more
24-14    programs, including programs for making loans and grants of public
24-15    money and providing personnel and services of the district to
24-16    promote state or local economic development and to stimulate
24-17    business, commercial, and tourism activity in the district.
24-18          SECTION 23.  NONPROFIT CORPORATION.  (a)  The board by
24-19    resolution may authorize the creation of a nonprofit corporation to
24-20    assist and act on behalf of the district in implementing a project
24-21    or providing a service authorized by this subchapter.
24-22          (b)  The board shall appoint the board of directors of a
24-23    nonprofit corporation created under this section.  The board of
24-24    directors of the nonprofit corporation shall serve in the same
24-25    manner, term, and conditions as a board of directors of a local
24-26    government corporation created under Chapter 431, Transportation
 25-1    Code.
 25-2          (c)  A nonprofit corporation created under this section has
 25-3    the powers of and is considered for purposes of this Act to be a
 25-4    local government corporation created under Chapter 431,
 25-5    Transportation Code and a corporation created under Section 4B of
 25-6    the Development Corporation Act (Article 5190.6, Texas Civil
 25-7    Statutes).
 25-8          (d)  A nonprofit corporation created under this section may
 25-9    implement any project and provide any service authorized by this
25-10    Act.
25-11          (e)  Any assets of a nonprofit corporation created under this
25-12    section shall vest in the district upon dissolution of the
25-13    corporation.  All earnings of the corporation after payment of all
25-14    debt and expenses of the corporation shall inure to the benefit of
25-15    the district.
25-16          (f)  The district shall have all rights, privileges and
25-17    authority of a corporation organized and operating under Subchapter
25-18    D of Chapter 431, Transportation Code.
25-19          SECTION 24.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The board
25-20    by resolution shall establish the number of directors' signatures
25-21    and the procedure required for a disbursement or transfer of the
25-22    district's money.
25-23          SECTION 25.  COMPETITIVE BIDDING.  Section 375.221, Local
25-24    Government Code, does not apply to the district if the contract is
25-25    for more than $50,000 or if the contract is a design-build
25-26    contract.
 26-1          SECTION 26.  ANNEXATION AND EXCLUSION OF TERRITORY.  The
 26-2    district may annex and exclude territory pursuant to Sections
 26-3    375.043 and 375.044, Local Government Code.  The municipality must
 26-4    consent to all annexations of territory into the district.
 26-5          SECTION 27.  DISSOLUTION.  The district may only be dissolved
 26-6    pursuant to Section 383.123, Local Government Code.  Section
 26-7    383.122, Local Government Code, and Subchapter M of Chapter 375,
 26-8    Local Government Code, do not apply to the district.
 26-9          SECTION 28. The legislature finds that:
26-10                (1)  proper and legal notice of the intention to
26-11    introduce this Act, setting forth the general substance of this
26-12    Act, has been published as provided by law, and the notice and a
26-13    copy of this Act have been furnished to all persons, agencies,
26-14    officials, or entities to which they are required to be furnished
26-15    by the construction and laws of this state,  including the
26-16    governor, who has submitted the notice and Act to the Texas Natural
26-17    Resource Conservation Commission;
26-18                (2)  the Texas Natural Resource Conservation Commission
26-19    has filed its recommendations relating to this Act with the
26-20    governor, lieutenant governor, and speaker of the house of
26-21    representatives within the required time;
26-22                (3)  the general law relating to consent by political
26-23    subdivisions to the creation of districts with conservation,
26-24    reclamation, and road powers and the inclusion of land in those
26-25    district has been complied with; and
26-26                (4)  all requirements of the constitution and laws of
 27-1    this state and the rules and procedures of the legislature with
 27-2    respect to the notice, introduction, and passage of this Act have
 27-3    been fulfilled and accomplished.
 27-4          SECTION 29.  Notwithstanding Section 12 of this Act:
 27-5                (1)  the initial board of directors of the Hays County
 27-6    Development District No. 2 consists of:
 27-7                Pos. No.                  Name of Board Member
 27-8                1                                      
 27-9                2                                      
27-10                3                                      
27-11                4                                      
27-12                5                                      
27-13                (2)  of the initial board members, the members
27-14    appointed to positions 1 through 3 serve until June 1, 2005, and
27-15    the members appointed for positions 4 and 5 serve until June 1,
27-16    2003.
27-17          SECTION 30.  EFFECTIVE DATE.  This Act takes effect
27-18    immediately if it receives a vote of two-thirds of all the members
27-19    elected to each house, as provided by Section 39, Article III,
27-20    Texas Constitution.  If this Act does not receive the vote
27-21    necessary for immediate effect, this Act takes effect September 1,
27-22    2001.