By: Armbrister S.B. No. 1812 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 Education District; providing authority to impose taxes 1-4 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 Education District is created as a county development district 1-8 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 Article VII, Section 1, and Article III, Section 1-12 52-a, Texas Constitution, and the other public purposes stated in 1-13 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, and economic development through the 1-17 provision of educational facilities, programs, and services in Hays 1-18 County. 1-19 (b) By creating the district, the legislature has 1-20 established a program to accomplish the public purposes set out in 1-21 Section 52-a, Article III, Texas Constitution and to assist in 1-22 meeting its duty to provide a general diffusion of knowledge to the 1-23 residents of Hays County, as required by Article VII, Section 1, 2-1 Texas Constitution. 2-2 SECTION 3. DEFINITIONS. In this Act: 2-3 (1) "Board" means the board of directors of the district. 2-4 (2) "County" means Hays County. 2-5 (3) "District" means the Hays County Educational Development 2-6 District. 2-7 (4) "Municipality" means the City of Austin. 2-8 (5) "School District" means Hays Consolidated Independent 2-9 School District. 2-10 SECTION 4. BOUNDARIES. The district includes all of the 2-11 territory contained within the following described area: 2-12 A 904.814 acre tract out of the C. W. Hudson Survey No. 43, 2-13 the H. W. Cocke Survey No. 83, the H. W. Cocke Survey No. 432, the 2-14 J. R. Worrall Survey No. 68, the J. E. Crawford Survey, the Thomas 2-15 H. Crawford Survey No. 12, the J. S. Arrington Survey No. 57, the 2-16 F. W. Sutor Survey No. 50, and the Calvin Rowell Survey No. 396 in 2-17 Hays County, Texas, being a portion of that 964.55 acre tract, 2-18 described as Tract 1, all of that 12.76 acre tract, described as 2-19 Tract 2, that 5.00 acre tract, described as Tract 3, that 5.00 acre 2-20 tract, described as Tract 4, that 5.00 acre tract, described as 2-21 Tract 5, that 5.00 acre tract, described as Tract 6, and the 2-22 remainder of that 209.48 acre tract, described as Tract 11, all 2-23 conveyed to Capital Pacific Holdings, LLC, by deed recorded in 2-24 Volume 13285, Page 694 of the Travis County Deed Records and in 2-25 Volume 1460, Page 728 of the Hays County Deed Records, and being 2-26 all of the three (3) 5.00 acre tracts conveyed to Capital Pacific 3-1 Holdings, LLC, by deed recorded in Document No. 9913092 of the 3-2 Official Public Records of Hays County; the said 904.814 acre tract 3-3 is more particularly described by metes and bounds as follows: 3-4 COMMENCING, at a 5/8" iron rod found for the northeast corner 3-5 of the said 964.55 acre tract, being on the southerly line of that 3-6 164.931 acre tract conveyed to CGP-Circle C Limited Partnership by 3-7 deed recorded in Volume 13188, Page 15 of the Travis County Deed 3-8 Records, and the northwest corner of that 283 acre tract conveyed 3-9 to Ira Jon Yates by deed recorded in Volume 7716, Page 845 and 3-10 Volume 11042, Page 933 the said Travis County Deed Records; 3-11 THENCE, leaving the southerly line of the said 164.931 acre 3-12 tract, with the common line between the said 964.55 acre tract and 3-13 the 283 acre tract, for the following three (3) courses: 3-14 (1) S02 05'59"E, 2543.00 feet to a 1/2" iron rod with 3-15 plastic cap found for corner; 3-16 (2) N87 54'01"E, 122.41 feet to a 1/2" iron rod with plastic 3-17 cap found for corner; 3-18 (3) S02 37'47"E, at 1052.11 feet pass a 1/2" iron rod found 3-19 0.93 feet to the right, for a total distance of 1435.39 feet to a 3-20 calculated point on the Travis and Hays County line, being the 3-21 northeast corner and POINT OF BEGINNING of the herein described 3-22 tract; 3-23 THENCE, leaving the southerly line of said Travis County and 3-24 continuing with the common line between the said 964.55 acre tract 3-25 and the 283 acre tract for the following two (2) courses: 3-26 (1) S02 37'47"E, 217.52 feet to a 1/2" iron rod found for 4-1 corner; 4-2 (2) S19 55'59"E, at 532.33 feet pass a 1/2" iron rod found 4-3 2.20 feet to the right, at 608.10 feet pass a 1/2" iron rod found 4-4 0.96 feet to the right, for a total distance of 895.56 feet to a 4-5 60d nail found in a fence corner post for the southwest corner of 4-6 the said 283 acre tract, being the northwest corner of that 76.758 4-7 acre tract conveyed to Cal E. Varner by deed recorded in Volume 4-8 12811, Page 504 of the said Travis County Deed Records; 4-9 THENCE, leaving the southerly line of the said 283 acre 4-10 tract, with the common line between the said 76.758 acre tract and 4-11 the 964.55 acre tract, for the following two (2) courses: 4-12 (1) S20 26'57"E, 514.02 feet to a 60d nail found in a fence 4-13 corner post for corner; 4-14 (2) S02 25'19"E, 541.61 feet to a cotton gin spindle found 4-15 for the southwest corner of the said 76.758 acre tract, being the 4-16 northwest corner of the said remainder of the 209.48 acre tract; 4-17 THENCE, N82 06'00"E, leaving the easterly line of the said 4-18 964.55 acre tract, with the common line between the said remainder 4-19 of the 209.48 acre tract and the 76.758 acre tract, 1819.59 feet to 4-20 a calculated point on the northerly line of said Hays County, being 4-21 on the southerly line of said Travis County, from which a 1/2" iron 4-22 rod found for the northeast corner of the said remainder of the 4-23 209.48 acre tract, being the southwest corner of the said 76.758 4-24 acre tract and a point in the westerly line of that 179.539 acre 4-25 tract conveyed to Geoffrey D. Weisbart and Diane B. Senterfitt by 4-26 deed recorded in Volume 11962, Page 1941 of the Travis County Deed 5-1 Records bears N82 06'00", 223.93 feet; 5-2 THENCE, S51 42'24"E, leaving the southerly line of the said 5-3 76.758 acre tract, across the said remainder of the 209.48 acre 5-4 tract with the common line between Hays and Travis Counties, 290.20 5-5 feet to a calculated point on the common line between the remainder 5-6 of the said 209.48 acre tract and the 179.539 acre tract; 5-7 THENCE, leaving the southerly line of said Travis County and 5-8 continuing across said Hays County, with the common line between 5-9 the said remainder of the 209.48 acre tract and the 179.539 acre 5-10 tract, for the following four (4) courses: 5-11 (1) S01 37'14"E, 1128.83 feet to a fence corner post found 5-12 for corner; 5-13 (2) N88 20'41"E, 100.06 feet to a 1/2" iron rod found for 5-14 corner; 5-15 (3) S01 37'56"E, 693.88 feet to a 1/2" iron rod found for 5-16 corner; 5-17 (4) N88 10'38"E, 1660.80 feet to a 3" metal fence post for 5-18 corner; 5-19 THENCE, S02 14'15"E, continuing with the easterly line of the 5-20 said remainder of the 209.48 tract, at 1310.36 feet pass a 3" metal 5-21 fence post found 0.92 feet to the left for the southwest corner of 5-22 the said 179.539 acre tract, being the northwest corner of that 5-23 0.2308 acre tract conveyed to John August Wilhelm by deed recorded 5-24 in Volume 11961, Page 2120 of the Travis County Deed Records, at 5-25 1454.47 feet pass a cotton gin spindle found 1.59 feet to the right 5-26 for the southwest corner of the said 0.2308 acre tract, being the 6-1 northwest corner of that 0.714 acre tract conveyed to Wilhelm Hill 6-2 Properties by deed recorded in Volume 11961, Page 2127 of the 6-3 Travis County Deed Records, at 1902.54 feet pass a 1/2" iron rod 6-4 found 0.63 feet to the right for the southwest corner of the said 6-5 0.714 acre tract, being the northwest corner of that 4.893 acre 6-6 tract conveyed to Peter Douglas Winship by deed recorded in Volume 6-7 1139, Page 475 of the Hays County Deed Records, for a total 6-8 distance of 2446.55 feet to a 1/2" iron rod found for the southeast 6-9 corner of the aforesaid remainder of the 209.48 acre tract, being 6-10 the southwest corner of the said 4.893 acre tract and a point on 6-11 the northerly right-of-way line of Bliss Spillar Road (County Road 6-12 224); 6-13 THENCE, S88 32'25"W, leaving the westerly line of the said 6-14 4.893 acre tract, with the common line between the remainder of the 6-15 said 209.48 acre tract and Bliss Spillar Road, 100.02 feet to a 60d 6-16 nail found in a fence corner post for the southwest corner of the 6-17 remainder of the said 209.48 acre tract, being the northwest corner 6-18 of the said Bliss Spillar Road and an angle point in the easterly 6-19 line of the said 12.76 acre tract; 6-20 THENCE, leaving the southerly line of the said remainder of 6-21 the 209.48 acre tract, with the common line between Bliss Spillar 6-22 Road and the said 12.76 acre tract for the following two (2) 6-23 courses: 6-24 (1) S04 30'52"E, 28.91 feet to a 60d nail found in a fence 6-25 post for corner; 6-26 (2) S55 00'29"E, 13.53 feet to a 1/2" iron rod found for the 7-1 southwest corner of said Bliss Spillar Road, being the northwest 7-2 corner of that 132.105 acre tract conveyed to S. R. Baker by deed 7-3 recorded in Volume 892, Page 273 of the Hays County Deed Records; 7-4 THENCE, leaving the southerly line of said Bliss Spillar 7-5 Road, with the common line between the said 12.76 acre tract and 7-6 the 132.105 acre tract for the following four (4) courses: 7-7 (1) S22 34'33"W, 64.75 feet to a 1/2" iron rod found for 7-8 corner; 7-9 (2) S03 36'07"E, 381.35 feet to a 1/2" iron rod found for 7-10 corner; 7-11 (3) S01 15'51"W, 95.85 feet to a 1/2" iron rod found for 7-12 corner; 7-13 (4) S01 46'45"E, 109.24 feet to a 1/2" iron rod with plastic 7-14 cap found for the southeast corner of the said 12.76 acre tract, 7-15 being an easterly corner of that 1325.00 acre tract conveyed to the 7-16 City of Austin by deed recorded in Volume 1473, Page 961 of the 7-17 Hays County Deed Records; 7-18 THENCE, leaving the westerly line of the said 132.105 acre 7-19 tract, with the common line between the said 12.76 acre tract and 7-20 the 1325.00 acre tract for the following three (3) courses: 7-21 (1) S87 30'16"W, 567.17 feet to a 1/2" iron rod found for 7-22 the southwest corner of the said 12.76 acre tract; 7-23 (2) N01 34'01"W, 979.06 feet to a 1/2" iron rod with plastic 7-24 cap found for the northwest corner of the said 12.76 acre tract; 7-25 (3) N87 24'30"E, 567.29 feet to a 1/2" iron rod found for 7-26 the northeast corner of the said 12.76 acre tract, being on the 8-1 westerly line of the said remainder of the 209.48 acre tract; 8-2 THENCE, N02 01'08"W, leaving the northerly line of the said 8-3 12.76 acre tract, with the common line between the said remainder 8-4 of the 209.48 acre tract and the 1325.00 acre tract, 110.66 feet to 8-5 a 1/2" iron rod found for the most easterly northeast corner of the 8-6 aforesaid 1325.00 acre tract, being the southeast corner of the 8-7 said 964.55 acre tract; 8-8 THENCE, S89 08'27"W, leaving the westerly line of the said 8-9 209.48 acre tract, with the common line between the said 964.55 8-10 acre tract and the 1325.0 acre tract, 7060.12 feet to a 1/2" iron 8-11 rod found for the southwest corner of the aforesaid 964.55 acre 8-12 tract, from which a 60d nail found for the northeast corner of that 8-13 655.771 acre tract conveyed to Capital Pacific Holdings, LLC, by 8-14 deed recorded in Document No. 9827120 of the Official Public 8-15 Records of Hays County, bears S02 07'50"E, 91.37 feet; 8-16 THENCE, continuing with the common line between the said 8-17 964.55 acre tract and the 1325.0 acre tract for the following three 8-18 (3) courses: 8-19 (1) N02 10'23"W, 2006.86 feet to a fence post found for 8-20 corner; 8-21 (2) N48 56'11"W, 1383.96 feet to a 60d nail found in a 10" 8-22 elm for corner; 8-23 (3) N51 06'36"W, 55.68 feet to a 60d nail found in a 18" 8-24 hackberry, being a southeast corner of that 110.54 acre tract 8-25 conveyed to Richard C. Sanders and Nancy A. Turner by deed recorded 8-26 in Volume 960, Page 258 of the Hays County Deed Records and an 9-1 angle point at the southeast corner of that Cross Conveyance Deed 9-2 between the said 964.55 acre tract and the 110.54 acre tract as 9-3 recorded in Document No. 00010169 of the Official Public Records of 9-4 Hays County. 9-5 THENCE, leaving the northerly line of the said 1325.0 acre 9-6 tract, with the said Cross Conveyance Deed defining the common line 9-7 between the said 964.55 acre tract and the 110.54 acre tract, for 9-8 the following ten (10) courses: 9-9 (1) N17 31'00"E, 104.47 feet to a 1/2" iron rod, with 9-10 plastic cap stamped "Carson and Bush Professional Surveyors," found 9-11 for corner; 9-12 (2) N02 39'44"E, 435.63 feet to a 1/2" iron rod found for 9-13 corner; 9-14 (3) N03 00'10"W, 711.50 feet to a 1/2" iron pipe found for 9-15 corner; 9-16 (4) N09 43'25"W, 171.53 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 (5) N02 55'14"E, 229.69 feet to a cotton gin spindle found 9-20 for corner; 9-21 (6) N02 16'32"W, 282.47 feet to a 1/2" iron rod, with 9-22 plastic cap stamped "Carson and Bush Professional Surveyors," found 9-23 for corner; 9-24 (7) N03 45'17"E, 337.13 feet to a 1" iron pipe found for 9-25 corner; 9-26 (8) N05 17'57"E, 209.25 feet to a 1/2" iron rod, with 10-1 plastic cap stamped "Carson and Bush Professional Surveyors," found 10-2 for corner; 10-3 (9) N24 35'55"W, 186.20 feet to a 1/2" iron rod, with 10-4 plastic cap stamped "Carson and Bush Professional Surveyors," found 10-5 for corner; 10-6 (10) N87 51'31"E, 318.51 feet to a 1/2" iron rod, with 10-7 plastic cap stamped "Carson and Bush Professional Surveyors," found 10-8 for the point of termination of the said Cross Conveyance Deed 10-9 recorded in Document No. 00010169 of the Official Public Records of 10-10 Hays County, being the southwest corner of the remainder of that 10-11 235.94 acre tract conveyed to Lewis Eugene Rowell by deed recorded 10-12 in Volume 499, Page 396 and Volume 1062, Page 872 of the Hays 10-13 County Plat Records and the beginning of that boundary line 10-14 agreement recorded in Volume 12647, Page 676 of the Travis County 10-15 Deed Records and Volume 1203, Page 390 of the Hays County Deed 10-16 Records; 10-17 THENCE, leaving the easterly line of the said 110.54 acre 10-18 tract with the common line, as defined by the boundary line 10-19 agreement, between the 964.55 acre tract and the said remainder of 10-20 the 235.94 acre tract, for the following six (6) courses: 10-21 (1) N87 20'18"E, 545.04 feet to a 1/2" iron rod found for 10-22 corner; 10-23 (2) N02 40'16"W, 1600.51 feet to a 1/2" iron rod found for 10-24 corner; 10-25 (3) S87 19'59"W, 833.83 feet to a 1/2" iron rod found for 10-26 corner; 11-1 (4) N01 41'52"W, 833.40 feet to a 1/2" iron rod found for 11-2 corner; 11-3 (5) N87 19'56"E, 888.65 feet to a 1/2" iron rod found for 11-4 corner; 11-5 (6) N02 37'56"W, 334.38 feet to a calculated point on the 11-6 aforesaid common line between Hays and Travis Counties, from which 11-7 a 1/2" iron rod found on the aforesaid common line between the 11-8 964.55 acre tract and the remainder of the 235.94 acre tract bears 11-9 N02 37'56"W, 644.56 feet; 11-10 THENCE, S51 42'24"E, leaving the said easterly line of the 11-11 remainder of the 235.94 acre tract, across the said 964.55 acre 11-12 tract, with the northerly line of Hays County, being the southerly 11-13 of Travis County, at a distance of 503.73 feet pass a concrete 11-14 monument (mile marker #20) found, for a total distance of 3989.77 11-15 feet to the PLACE OF BEGINNING, CONTAINING within these metes and 11-16 bounds 904.814 acres of land. 11-17 SECTION 5. FINDINGS RELATING TO BOUNDARIES. The boundaries 11-18 and field notes of the district form a closure. If a mistake is 11-19 made in the field notes or in copying the field notes in the 11-20 legislative process, it does not affect the district's: 11-21 (1) organization, existence, or validity; 11-22 (2) right to issue any type of bond for the purposes for 11-23 which the district is created or to pay the principal of and 11-24 interest on a bond; 11-25 (3) right to impose or collect taxes; or 11-26 (4) legality of operation. 12-1 SECTION 6. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) All 12-2 the land and other property included in the district will be 12-3 benefitted by the educational facilities, programs, and services to 12-4 be provided by the district and the district is created to serve a 12-5 public use and benefit. 12-6 (b) The creation of the district is in the public interest 12-7 and is essential to: 12-8 (1) further the public purposes of the development and 12-9 diversification of the economy of the state; 12-10 (2) eliminate unemployment and underemployment; and 12-11 (3) aid in the education of children in the school 12-12 district and enhance their educational opportunities through the 12-13 provision of educational facilities, programs, and services. 12-14 (4) provide educational facilities, programs, and 12-15 services for students in the school district. 12-16 SECTION 7. GENERAL POWERS. (a) The district has all of the 12-17 rights, powers, privileges, authority, and functions conferred on 12-18 county development districts by Chapter 383, Local Government Code 12-19 to accomplish the purposes of its creation together with the 12-20 additional rights, powers, privileges, authority, and functions 12-21 contained in this Act. 12-22 (b) If any provision of the general law is in conflict or 12-23 inconsistent with this Act, this Act prevails. Any general law 12-24 which supplements the power and authority of the district, to the 12-25 extent not in conflict or inconsistent with this Act, is adopted 12-26 and incorporated by reference. 13-1 (c) Subchapters B and C of Chapter 383, Local Government 13-2 Code, and Sections 383.084 and 383.102 through 383.105, 383.111, 13-3 and 383.122, Local Government Code and Section 352.107, Tax Code, 13-4 do not apply to the district. 13-5 SECTION 8. ADDITIONAL POWERS OF DISTRICT. (a) The district 13-6 may levy, assess, and apply the proceeds from a limited sales and 13-7 use tax, as provided by this Act, for the district's educational 13-8 purposes. 13-9 (b) The district may impose, collect, and apply the proceeds 13-10 from a hotel occupancy tax, as provided by this Act, for the 13-11 district's educational purposes. 13-12 (c) The district shall have the power to provide educational 13-13 facilities, programs, and services in the school district and 13-14 contract with a nonprofit corporation to provide such facilities, 13-15 programs, and services on its behalf on such terms and conditions 13-16 as the board deems advisable. 13-17 SECTION 9. LIMITATION ON POWERS OF DISTRICT. (a) The 13-18 district does not have the power to levy assessments, impact fees, 13-19 or ad valorem property taxes. 13-20 (b) Notwithstanding any provision of law to the contrary, 13-21 the district shall not exercise the power of eminent domain for any 13-22 purpose. 13-23 SECTION 10. BOARD OF DIRECTORS IN GENERAL. (a) The 13-24 district is governed by a board of five directors who serve 13-25 staggered terms of four years. 13-26 (b) A director shall receive no compensation for service as 14-1 a director but may be reimbursed for expenses. 14-2 (c) Directors and officers of the district shall be public 14-3 officials and shall be entitled to governmental immunity for their 14-4 actions in their capacity as directors and officers of the 14-5 district. 14-6 (d) Employees of the district shall be entitled to 14-7 governmental immunity for their actions in their capacity as 14-8 employees of the district. 14-9 SECTION 11. APPOINTMENT OF DIRECTORS. (a) The trustees of 14-10 the board of education of the school district shall appoint three 14-11 directors. A person is appointed if a majority of the trustees 14-12 vote to appoint that person. 14-13 (b) The judge and commissioners of the county shall appoint 14-14 two directors. A person is appointed if a majority of the 14-15 commissioners and the judge vote to appoint that person. 14-16 (c) A person demonstrates their capacity as a representative 14-17 by providing the board with a written letter signed by the person 14-18 or organization which they represent. 14-19 (d) Unless otherwise agreed, the directors shall decide the 14-20 initial terms of office by lot, with a simple majority of directors 14-21 serving initial terms of four years and the remaining directors 14-22 serving initial terms of two years. 14-23 SECTION 12. LIMITED SALES AND USE TAX. (a) Without further 14-24 authorization, the district may impose a sales and use tax by order 14-25 or resolution of the board. 14-26 (b) The board may adopt, repeal, or change the rate of the 15-1 limited sales and use tax authorized by this Act without holding an 15-2 election. 15-3 (c) The provisions of Subchapters B, C, and D, Chapter 322, 15-4 Tax Code, relating to sales and use taxes for special purpose 15-5 taxing authorities shall apply to the application, collection, and 15-6 administration of a sales and use tax imposed under this Act, to 15-7 the extent not inconsistent with the provisions of this Act, and 15-8 with the same effect as if references therein to a taxing entity or 15-9 the entity area referred to the district or the area within the 15-10 boundaries of the district. 15-11 (d) A tax imposed under this Act or the repeal or change in 15-12 rate of a tax under this Act takes effect on the first day of the 15-13 first calendar quarter occurring after the expiration of the first 15-14 complete calendar quarter occurring after the date on which the 15-15 comptroller receives a copy of the order or resolution of the board 15-16 adopting, repealing, or changing the rate of the limited sales and 15-17 use tax authorized by this Act. 15-18 (e) On adoption of the tax authorized by this Act, there is 15-19 imposed a tax on the receipts from the sale at retail of taxable 15-20 items within the district at a rate not to exceed one percent, as 15-21 well as an excise tax on the use, storage, or other consumption 15-22 within the district of taxable items purchased, leased, or rented 15-23 from a retailer during the period that the tax is effective within 15-24 the district. The rate of the excise tax is the same as the rate 15-25 of the sales tax portion of the tax and is applied to the sales 15-26 price of the taxable item. With respect to a taxable service, 16-1 "use" means the derivation in the district of direct or indirect 16-2 benefit from the service. 16-3 (f) The district is entitled to examine and receive 16-4 information from the Comptroller of Public Accounts related to the 16-5 levy, assessment, and collection of sales and use taxes to the same 16-6 extent as if the district were a municipality. 16-7 SECTION 13. LIMITATION ON ADOPTION OF TAX. (a) The 16-8 district may adopt a sales and use tax only if as a result of 16-9 adoption of the tax the combined rate of all local sales and use 16-10 taxes imposed by political subdivisions having territory in the 16-11 district will not exceed two percent. 16-12 (b) If, as a result of a general purpose annexation by the 16-13 municipality of territory in the district, the overlapping local 16-14 sales and use tax rates in the area in the district will exceed two 16-15 percent, the district's sales and use tax rate is automatically 16-16 reduced to a rate that when added to the combined rate of local 16-17 sales and use taxes will equal two percent, in accordance with 16-18 Section 383.106, Local Government Code. 16-19 (c) If the district's sales and use tax rate is reduced in 16-20 accordance with Subsection (b), Section 383.106(c), Local 16-21 Government Code, shall apply. 16-22 SECTION 14. USE OF SALES AND USE TAX PROCEEDS. Sales and 16-23 use taxes collected under this Act may be used only for the 16-24 educational purposes for which the district is created, and the 16-25 district may pledge the revenue derived from the district sales and 16-26 use tax to the payment of bonds, notes or other obligations issued 17-1 by the district. 17-2 SECTION 15. HOTEL OCCUPANCY TAX. (a) In this section, 17-3 "hotel" has the meaning assigned by Section 156.001, Tax Code. 17-4 (b) The board by order or resolution may impose a tax on a 17-5 person who, under a lease, concession, permit, right of access, 17-6 license, contract, or agreement, pays for the use or possession or 17-7 for the right to use or possess a room that is in a hotel located 17-8 in the boundaries of the district, costs $2 or more each day, and 17-9 is ordinarily used for sleeping. The tax authorized by this 17-10 section may be imposed at any rate not to exceed the greater of: 17-11 (i) nine percent of the price paid for a room in a hotel, or 17-12 (ii) the rate of hotel occupancy tax imposed by the municipality. 17-13 (c) A district by order or resolution may repeal, increase, 17-14 or decrease the rate of a tax imposed under this section. The rate 17-15 of tax imposed under this section shall be equal to or greater than 17-16 the rate of hotel occupancy tax imposed by the municipality. 17-17 (d) Except as inconsistent with this Act, Sections 352.004, 17-18 352.0041, 352.005, and 352.007, Tax Code, govern the imposition and 17-19 collection of a hotel occupancy tax authorized under this Act. A 17-20 reference in Sections 352.004, 352.0041, 352.005, and 352.007, Tax 17-21 Code, to a county, the county's officers or governing body, or the 17-22 county attorney is a reference to the district, the district's 17-23 officers or governing body, or the district's attorney, as 17-24 appropriate. 17-25 (e) The district is entitled to examine and receive 17-26 information related to the levy, assessment, and collection of 18-1 hotel occupancy taxes to the same extent as if the district were a 18-2 municipality. 18-3 (f) If, as a result of a general purpose annexation by the 18-4 municipality of territory in the district, the overlapping hotel 18-5 occupancy tax rate in the area in the district will exceed nine 18-6 percent, the district's hotel occupancy tax rate is automatically 18-7 reduced to a rate that when added to the combined rate of local 18-8 sales and use taxes will equal nine percent, in accordance with 18-9 Section 383.106, Local Government Code. 18-10 (g) If the district's hotel occupancy tax rate is reduced in 18-11 accordance with Subsection (b), Section 383.106, Local Government 18-12 Code, shall apply and the municipality shall make payments to the 18-13 district equal to the amounts that would have been collected by the 18-14 district had the municipality not imposed or increased its sales 18-15 and use tax or annexed for general purposes the area in the 18-16 district, less amounts that the district collects following the 18-17 municipality's levy of or increase in its sales and use tax or 18-18 general purpose annexation of the area in the district. 18-19 SECTION 16. USE OF HOTEL OCCUPANCY TAX PROCEEDS. The 18-20 district shall apply the proceeds from a hotel occupancy tax 18-21 imposed under this Act for any of the district's educational 18-22 purposes and for the purposes described by Section 352.1015, Tax 18-23 Code, to the extent considered appropriate by the board. The 18-24 district may pledge the revenue derived from a hotel occupancy tax 18-25 imposed under this Act to the payment of bonds, notes or other 18-26 obligations issued by the district. 19-1 SECTION 17. DEDICATION OF REVENUES. (a) The district shall 19-2 use 100 percent of all district revenues from the sales and use and 19-3 hotel occupancy taxes authorized by this Act for the purpose of 19-4 providing educational facilities, services, and programs in the 19-5 school district. The district shall contract with a nonprofit 19-6 corporation created to aid and assist education in the area of the 19-7 school district to provide such facilities, services and programs 19-8 on its behalf on such terms and conditions as the board deems 19-9 advisable. 19-10 (b) Projects or services implemented pursuant to this 19-11 section for education purposes may be located inside or outside the 19-12 boundaries of the district but must be within the school district. 19-13 SECTION 18. BONDS AND NOTES. (a) The Board may issue 19-14 bonds, notes or other obligations in the manner provided by Chapter 19-15 383, Local Government Code, for any corporate purpose and to carry 19-16 out the purpose of this Act. 19-17 (b) The bonds, notes or other obligations of the district 19-18 may be secured and made payable, wholly or partly, by a pledge of 19-19 any part of the net proceeds the district receives from: 19-20 (1) the sales and use tax authorized by this Act; 19-21 (2) the hotel occupancy tax authorized by this Act; 19-22 (3) repayments the district receives from the 19-23 municipality because of a required reduction of the district's 19-24 sales and use tax or hotel occupancy tax; and 19-25 (4) revenues from district contracts, leases and 19-26 projects. 20-1 SECTION 19. AGREEMENTS: GENERAL; DONATIONS, INTERLOCAL 20-2 AGREEMENTS, AND LAW ENFORCEMENT SERVICES. (a) The district may 20-3 make an agreement with or accept a donation, grant, or loan from 20-4 any person. 20-5 (b) The implementation of a project is a governmental 20-6 function or service for the purposes of Chapter 791, Government 20-7 Code. 20-8 (c) The district is a district for purposes of Chapter 20-9 43.0751, Local Government Code, and may enter into a strategic 20-10 partnership agreement with the municipality. 20-11 SECTION 20. ECONOMIC DEVELOPMENT PROGRAMS. The board may 20-12 establish and provide for the administration of one or more 20-13 programs, including programs for making loans and grants of public 20-14 money and providing personnel and services of the district to 20-15 promote state or local economic development and to stimulate 20-16 business, commercial through the provision of educational 20-17 facilities, programs and services. 20-18 SECTION 21. ANNEXATION AND EXCLUSION OF TERRITORY. 20-19 Notwithstanding any provision of law to the contrary, the district 20-20 may not annex territory into the District. 20-21 SECTION 22. DISSOLUTION. The district may be dissolved 20-22 pursuant to Chapter 383, Local Government Code, or Subchapter M of 20-23 Chapter 375, Local Government Code. 20-24 SECTION 23. EFFECTIVE DATE. (a) This Act takes effect on 20-25 the date on which the City of Austin consents to the creation of 20-26 the district if that date: 21-1 (1) occurs before the 91st day after the last day of 21-2 the legislative session and this Act receives a vote of two-thirds 21-3 of all the members elected to each house, as provided by Section 21-4 39, Article III, Texas Constitution; or 21-5 (2) occurs on or after the 91st day after the last day 21-6 of the legislative session. 21-7 (b) If that date of consent occurs before the 91st day after 21-8 the last day of the legislative session and this Act does not 21-9 receive the vote necessary for effect on that consent date, this 21-10 Act takes effect on the 91st day after the last day of the 21-11 legislative session.