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.