1-1     By:  Armbrister                                       S.B. No. 1812
 1-2           (In the Senate - Filed April 17, 2001; April 18, 2001, read
 1-3     first time and referred to Committee on Intergovernmental
 1-4     Relations; May 3, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 5, Nays 0;
 1-6     May 3, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1812                    By:  Cain
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the creation, administration, powers, and duties of the
1-11     Hays County Development District No. 2; providing the authority to
1-12     impose taxes.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  CREATION OF THE DISTRICT.  (a)  The Hays County
1-15     Development District No. 2 is created.  The district is a
1-16     governmental agency, a body politic and corporate, and a political
1-17     subdivision of the state.
1-18           (b)  The district is a unit of government for purposes of
1-19     Chapter 101, Civil Practice and Remedies Code, and operations of
1-20     the district are considered to be essential governmental functions
1-21     and not proprietary functions for all purposes, including the
1-22     application of the Texas Tort Claims Act.
1-23           (c)  The creation of the district is essential to accomplish
1-24     the purposes of Sections 52 and 52-a, Article III, and Section 59,
1-25     Article XVI, Texas Constitution, and other public purposes stated
1-26     in this Act.
1-27           (d)  Despite its name this district is not governed by
1-28     Chapter 383, Local Government Code.
1-29           SECTION 2.  DEFINITIONS.  In this Act:
1-30                 (1)  "Board" means the board of directors of the
1-31     district.
1-32                 (2)  "County" means Hays County.
1-33                 (3)  "District" means the Hays County Development
1-34     District No. 2.
1-35                 (4)  "Municipality" means the City of Austin.
1-36                 (5)  "Foundation" means the Hays Consolidated
1-37     Independent School District Education Foundation.
1-38           SECTION 3.  BOUNDARIES.  The district includes all of the
1-39     territory contained within the following described area:
1-40           A 904.814 acre tract out of the C. W. Hudson Survey No. 43,
1-41     the H. W. Cocke Survey No. 83, the H. W. Cocke Survey No. 432, the
1-42     J. R. Worrall Survey No. 68, the J. E. Crawford Survey, the Thomas
1-43     H. Crawford Survey No. 12, the J. S. Arrington Survey No. 57, the
1-44     F. W. Sutor Survey No. 50, and the Calvin Rowell Survey No. 396 in
1-45     Hays County, Texas, being a portion of that 964.55 acre tract,
1-46     described as Tract 1, all of that 12.76 acre tract, described as
1-47     Tract 2, that 5.00 acre tract, described as Tract 3, that 5.00 acre
1-48     tract, described as Tract 4, that 5.00 acre tract, described as
1-49     Tract 5, that 5.00 acre tract, described as Tract 6, and the
1-50     remainder of that 209.48 acre tract, described as Tract 11, all
1-51     conveyed to Capital Pacific Holdings, LLC, by deed recorded in
1-52     Volume 13285, Page 694 of the Travis County Deed Records and in
1-53     Volume 1460, Page 728 of the Hays County Deed Records, and being
1-54     all of the three (3) 5.00 acre tracts conveyed to Capital Pacific
1-55     Holdings, LLC, by deed recorded in Document No. 9913092 of the
1-56     Official Public Records of Hays County; the said 904.814 acre tract
1-57     is more particularly described by metes and bounds as follows:
1-58           COMMENCING, at a 5/8" iron rod found for the northeast corner
1-59     of the said 964.55 acre tract, being on the southerly line of that
1-60     164.931 acre tract conveyed to CGP-Circle C Limited Partnership by
1-61     deed recorded in Volume 13188, Page 15 of the Travis County Deed
1-62     Records, and the northwest corner of that 283 acre tract conveyed
1-63     to Ira Jon Yates by deed recorded in Volume 7716, Page 845 and
1-64     Volume 11042, Page 933 the said Travis County Deed Records;
 2-1           THENCE, leaving the southerly line of the said 164.931 acre
 2-2     tract, with the common line between the said 964.55 acre tract and
 2-3     the 283 acre tract, for the following three (3) courses:
 2-4           (1)  S02 05'59"E, 2543.00 feet to a 1/2" iron rod with
 2-5     plastic cap found for corner;
 2-6           (2)  N87 54'01"E, 122.41 feet to a 1/2" iron rod with plastic
 2-7     cap found for corner;
 2-8           (3)  S02 37'47"E, at 1052.11 feet pass a 1/2" iron rod found
 2-9     0.93 feet to the right, for a total distance of 1435.39 feet to a
2-10     calculated point on the Travis and Hays County line, being the
2-11     northeast corner and POINT OF BEGINNING of the herein described
2-12     tract;
2-13           THENCE, leaving the southerly line of said Travis County and
2-14     continuing with the common line between the said 964.55 acre tract
2-15     and the 283 acre tract for the following two (2) courses:
2-16           (1)  S02 37'47"E, 217.52 feet to a 1/2" iron rod found for
2-17     corner;
2-18           (2)  S19 55'59"E, at 532.33 feet pass a 1/2" iron rod found
2-19     2.20 feet to the right, at 608.10 feet pass a 1/2" iron rod found
2-20     0.96 feet to the right, for a total distance of 895.56 feet to a
2-21     60d nail found in a fence corner post for the southwest corner of
2-22     the said 283 acre tract, being the northwest corner of that 76.758
2-23     acre tract conveyed to Cal E. Varner by deed recorded in Volume
2-24     12811, Page 504 of the said Travis County Deed Records;
2-25           THENCE, leaving the southerly line of the said 283 acre
2-26     tract, with the common line between the said 76.758 acre tract and
2-27     the 964.55 acre tract, for the following two (2) courses:
2-28           (1)  S20 26'57"E, 514.02 feet to a 60d nail found in a fence
2-29     corner post for corner;
2-30           (2)  S02 25'19"E, 541.61 feet to a cotton gin spindle found
2-31     for the southwest corner of the said 76.758 acre tract, being the
2-32     northwest corner of the said remainder of the 209.48 acre tract;
2-33           THENCE, N82 06'00"E, leaving the easterly line of the said
2-34     964.55 acre tract, with the common line between the said remainder
2-35     of the 209.48 acre tract and the 76.758 acre tract, 1819.59 feet to
2-36     a calculated point on the northerly line of said Hays County, being
2-37     on the southerly line of said Travis County, from which a 1/2" iron
2-38     rod found for the northeast corner of the said remainder of the
2-39     209.48 acre tract, being the southwest corner of the said 76.758
2-40     acre tract and a point in the westerly line of that 179.539 acre
2-41     tract conveyed to Geoffrey D. Weisbart and Diane B. Senterfitt by
2-42     deed recorded in Volume 11962, Page 1941 of the Travis County Deed
2-43     Records bears N82 06'00", 223.93 feet;
2-44           THENCE, S51 42'24"E, leaving the southerly line of the said
2-45     76.758 acre tract, across the said remainder of the 209.48 acre
2-46     tract with the common line between Hays and Travis Counties, 290.20
2-47     feet to a calculated point on the common line between the remainder
2-48     of the said 209.48 acre tract and the 179.539 acre tract;
2-49           THENCE, leaving the southerly line of said Travis County and
2-50     continuing across said Hays County, with the common line between
2-51     the said remainder of the 209.48 acre tract and the 179.539 acre
2-52     tract, for the following four (4) courses:
2-53           (1)  S01 37'14"E, 1128.83 feet to a fence corner post found
2-54     for corner;
2-55           (2)  N88 20'41"E, 100.06 feet to a 1/2" iron rod found for
2-56     corner;
2-57           (3)  S01 37'56"E, 693.88 feet to a 1/2" iron rod found for
2-58     corner;
2-59           (4)  N88 10'38"E, 1660.80 feet to a 3" metal fence post for
2-60     corner;
2-61           THENCE, S02 14'15"E, continuing with the easterly line of the
2-62     said remainder of the 209.48 tract, at 1310.36 feet pass a 3" metal
2-63     fence post found 0.92 feet to the left for the southwest corner of
2-64     the said 179.539 acre tract, being the northwest corner of that
2-65     0.2308 acre tract conveyed to John August Wilhelm by deed recorded
2-66     in Volume 11961, Page 2120 of the Travis County Deed Records, at
2-67     1454.47 feet pass a cotton gin spindle found 1.59 feet to the right
2-68     for the southwest corner of the said 0.2308 acre tract, being the
2-69     northwest corner of that 0.714 acre tract conveyed to Wilhelm Hill
 3-1     Properties by deed recorded in Volume 11961, Page 2127 of the
 3-2     Travis County Deed Records, at 1902.54 feet pass a 1/2" iron rod
 3-3     found 0.63 feet to the right for the southwest corner of the said
 3-4     0.714 acre tract, being the northwest corner of that 4.893 acre
 3-5     tract conveyed to Peter Douglas Winship by deed recorded in Volume
 3-6     1139, Page 475 of the Hays County Deed Records, for a total
 3-7     distance of 2446.55 feet to a 1/2" iron rod found for the southeast
 3-8     corner of the aforesaid remainder of the 209.48 acre tract, being
 3-9     the southwest corner of the said 4.893 acre tract and a point on
3-10     the northerly right-of-way line of Bliss Spillar Road (County Road
3-11     224);
3-12           THENCE, S88 32'25"W, leaving the westerly line of the said
3-13     4.893 acre tract, with the common line between the remainder of the
3-14     said 209.48 acre tract and Bliss Spillar Road, 100.02 feet to a 60d
3-15     nail found in a fence corner post for the southwest corner of the
3-16     remainder of the said 209.48 acre tract, being the northwest corner
3-17     of the said Bliss Spillar Road and an angle point in the easterly
3-18     line of the said 12.76 acre tract;
3-19           THENCE, leaving the southerly line of the said remainder of
3-20     the 209.48 acre tract, with the common line between Bliss Spillar
3-21     Road and the said 12.76 acre tract for the following two (2)
3-22     courses:
3-23           (1)  S04 30'52"E, 28.91 feet to a 60d nail found in a fence
3-24     post for corner;
3-25           (2)  S55 00'29"E, 13.53 feet to a 1/2" iron rod found for the
3-26     southwest corner of said Bliss Spillar Road, being the northwest
3-27     corner of that 132.105 acre tract conveyed to S. R. Baker by deed
3-28     recorded in Volume 892, Page 273 of the Hays County Deed Records;
3-29           THENCE, leaving the southerly line of said Bliss Spillar
3-30     Road, with the common line between the said 12.76 acre tract and
3-31     the 132.105 acre tract for the following four (4) courses:
3-32           (1)  S22 34'33"W, 64.75 feet to a 1/2" iron rod found for
3-33     corner;
3-34           (2)  S03 36'07"E, 381.35 feet to a 1/2" iron rod found for
3-35     corner;
3-36           (3)  S01 15'51"W, 95.85 feet to a 1/2" iron rod found for
3-37     corner;
3-38           (4)  S01 46'45"E, 109.24 feet to a 1/2" iron rod with plastic
3-39     cap found for the southeast corner of the said 12.76 acre tract,
3-40     being an easterly corner of that 1325.00 acre tract conveyed to the
3-41     City of Austin by deed recorded in volume 1473, Page 961 of the
3-42     Hays County Deed Records;
3-43           THENCE, leaving the westerly line of the said 132.105 acre
3-44     tract, with the common line between the said 12.76 acre tract and
3-45     the 1325.00 acre tract for the following three (3) courses:
3-46           (1)  S87 30'16"W, 567.17 feet to a 1/2" iron rod found for
3-47     the southwest corner of the said 12.76 acre tract;
3-48           (2)  N01 34'01"W, 979.06 feet to a 1/2" iron rod with plastic
3-49     cap found for the northwest corner of the said 12.76 acre tract;
3-50           (3)  N87 24'30"E, 567.29 feet to a 1/2" iron rod found for
3-51     the northeast corner of the said 12.76 acre tract, being on the
3-52     westerly line of the said remainder of the 209.48 acre tract;
3-53           THENCE, N02 01'08"W, leaving the northerly line of the said
3-54     12.76 acre tract, with the common line between the said remainder
3-55     of the 209.48 acre tract and the 1325.00 acre tract, 110.66 feet to
3-56     a 1/2" iron rod found for the most easterly northeast corner of the
3-57     aforesaid 1325.00 acre tract, being the southeast corner of the
3-58     said 964.55 acre tract;
3-59           THENCE, S89 08'27"W, leaving the westerly line of the said
3-60     209.48 acre tract, with the common line between the said 964.55
3-61     acre tract and the 1325.0 acre tract, 7060.12 feet to a 1/2" iron
3-62     rod found for the southwest corner of the aforesaid 964.55 acre
3-63     tract, from which a 60d nail found for the northeast corner of that
3-64     655.771 acre tract conveyed to Capital Pacific Holdings, LLC, by
3-65     deed recorded in Document No. 9827120 of the Official Public
3-66     Records of Hays County, bears S02 07'50"E, 91.37 feet;
3-67           THENCE, continuing with the common line between the said
3-68     964.55 acre tract and the 1325.0 acre tract for the following three
3-69     (3) courses:
 4-1           (1)  N02 10'23"W, 2006.86 feet to a fence post found for
 4-2     corner;
 4-3           (2)  N48 56'11"W, 1383.96 feet to a 60d nail found in a 10"
 4-4     elm for corner;
 4-5           (3)  N51 06'36"W, 55.68 feet to a 60d nail found in a 18"
 4-6     hackberry, being a southeast corner of that 110.54 acre tract
 4-7     conveyed to Richard C. Sanders and Nancy A. Turner by deed recorded
 4-8     in Volume 960, Page 258 of the Hays County Deed Records and an
 4-9     angle point at the southeast corner of that Cross Conveyance Deed
4-10     between the said 964.55 acre tract and the 110.54 acre tract as
4-11     recorded in Document No. 00010169 of the Official Public Records of
4-12     Hays County.
4-13           THENCE, leaving the northerly line of the said 1325.0 acre
4-14     tract, with the said Cross Conveyance Deed defining the common line
4-15     between the said 964.55 acre tract and the 110.54 acre tract, for
4-16     the following ten (10) courses:
4-17           (1)  N17 31'00"E, 104.47 feet to a 1/2" iron rod, with
4-18     plastic cap stamped "Carson and Bush Professional Surveyors," found
4-19     for corner;
4-20           (2)  N02 39'44"E, 435.63 feet to a 1/2" iron rod found for
4-21     corner;
4-22           (3)  N03 00'10"W, 711.50 feet to a 1/2" iron pipe found for
4-23     corner;
4-24           (4)  N09 43'25"W, 171.53 feet to a 1/2" iron rod, with
4-25     plastic cap stamped "Carson and Bush Professional Surveyors," found
4-26     for corner;
4-27           (5)  N02 55'14"E, 229.69 feet to a cotton gin spindle found
4-28     for corner;
4-29           (6)  N02 16'32"W, 282.47 feet to a 1/2" iron rod, with
4-30     plastic cap stamped "Carson and Bush Professional Surveyors," found
4-31     for corner;
4-32           (7)  N03 45'17"E, 337.13 feet to a 1" iron pipe found for
4-33     corner;
4-34           (8)  N05 17'57"E, 209.25 feet to a 1/2" iron rod, with
4-35     plastic cap stamped "Carson and Bush Professional Surveyors," found
4-36     for corner;
4-37           (9)  N24 35'55"W, 186.20 feet to a 1/2" iron rod, with
4-38     plastic cap stamped "Carson and Bush Professional Surveyors," found
4-39     for corner;
4-40           (10)  N87 51'31"E, 318.51 feet to a 1/2" iron rod, with
4-41     plastic cap stamped "Carson and Bush Professional Surveyors," found
4-42     for the point of termination of the said Cross Conveyance Deed
4-43     recorded in Document No. 00010169 of the Official Public Records of
4-44     Hays County, being the southwest corner of the remainder of that
4-45     235.94 acre tract conveyed to Lewis Eugene Rowell by deed recorded
4-46     in Volume 499, Page 396 and Volume 1062, Page 872 of the Hays
4-47     County Plat Records and the beginning of that boundary line
4-48     agreement recorded in Volume 12647, Page 676 of the Travis County
4-49     Deed Records and Volume 1203, Page 390 of the Hays County Deed
4-50     Records;
4-51           THENCE, leaving the easterly line of the said 110.54 acre
4-52     tract with the common line, as defined by the boundary line
4-53     agreement, between the 964.55 acre tract and the said remainder of
4-54     the 235.94 acre tract, for the following six (6) courses:
4-55           (1)  N87 20'18"E, 545.04 feet to a 1/2" iron rod found for
4-56     corner;
4-57           (2)  N02 40'16"W, 1600.51 feet to a 1/2" iron rod found for
4-58     corner;
4-59           (3)  S87 19'59"W, 833.83 feet to a 1/2" iron rod found for
4-60     corner;
4-61           (4)  N01 41'52"W, 833.40 feet to a 1/2" iron rod found for
4-62     corner;
4-63           (5)  N87 19'56"E, 888.65 feet to a 1/2" iron rod found for
4-64     corner;
4-65           (6)  N02 37'56"W, 334.38 feet to a calculated point on the
4-66     aforesaid common line between Hays and Travis Counties, from which
4-67     a 1/2" iron rod found on the aforesaid common line between the
4-68     964.55 acre tract and the remainder of the 235.94 acre tract bears
4-69     N02 37'56"W, 644.56 feet;
 5-1           THENCE, S51 42'24"E, leaving the said easterly line of the
 5-2     remainder of the 235.94 acre tract, across the said 964.55 acre
 5-3     tract, with the northerly line of Hays County, being the southerly
 5-4     of Travis County, at a distance of 503.73 feet pass a concrete
 5-5     monument (mile marker #20) found, for a total distance of 3989.77
 5-6     feet to the PLACE OF BEGINNING, CONTAINING within these metes and
 5-7     bounds 904.814 acres of land.
 5-8           SECTION 4.  FINDINGS RELATING TO BOUNDARIES.  The boundaries
 5-9     and field notes of the district form a closure.  If a mistake is
5-10     made in the field notes or in copying the field notes in the
5-11     legislative process, it does not affect the district's:
5-12                 (1)  organization, existence, or validity;
5-13                 (2)  right to impose or collect taxes; or
5-14                 (3)  legality of operation.
5-15           SECTION 5.  BOARD OF DIRECTORS IN GENERAL.  (a)  The district
5-16     is governed by a board of seven directors who serve staggered
5-17     four-year terms.
5-18           (b)  A director serves without compensation.
5-19           (c)  Directors and officers of the district shall be public
5-20     officials and shall be entitled to governmental immunity for their
5-21     actions in their capacity as directors and officers of the
5-22     district.
5-23           (d)  Employees of the district shall be entitled to
5-24     governmental immunity for their actions in their capacity as
5-25     employees of the district.
5-26           SECTION 6.  APPOINTMENT OF DIRECTORS.  (a)  The board
5-27     consists of three members of the municipality's governing body, two
5-28     members of the county's commissioners court, and two members of the
5-29     Hays Consolidated Independent School District Board of Trustees,
5-30     appointed by their respective governing bodies.
5-31           (b)  The members appointed by the municipality's governing
5-32     body shall occupy positions 1, 2, and 3 on the board.  The members
5-33     appointed by the commissioners court shall occupy positions 4 and 5
5-34     on the board.  The members appointed by the Hays Consolidated
5-35     Independent School District Board of Trustees shall occupy
5-36     positions 6 and 7 on the board.
5-37           (c)  A director vacates the office of board member if the
5-38     person ceases to be a member of the appointing governing body.  The
5-39     appropriate appointing authority shall make an appointment to fill
5-40     the vacancy for the remainder of the term vacated.
5-41           (d)  A board member serves on the board as an additional duty
5-42     of the office held on the appointing governing body.
5-43           SECTION 7.  CONFLICTS OF INTEREST.  Chapter 171, Local
5-44     Government Code, governs conflicts of interest for board members.
5-45           SECTION 8.  LIMITED SALES AND USE TAX.  (a)  The board by
5-46     order or resolution may impose a sales and use tax for the benefit
5-47     of the district in an amount not to exceed two percent.  No
5-48     election is necessary for imposition of the tax authorized by this
5-49     section.
5-50           (b)  The board may increase, repeal, or decrease the rate of
5-51     the limited sales and use tax authorized by this Act without
5-52     holding an election.
5-53           (c)  The provisions of Subchapters B, C, and D, Chapter 322,
5-54     Tax Code, relating to sales and use taxes for special purpose
5-55     taxing authorities shall apply to the application, collection, and
5-56     administration of a sales and use tax imposed under this Act, to
5-57     the extent not inconsistent with the provisions of this Act, and
5-58     with the same effect as if references therein to a taxing entity or
5-59     the entity area referred to the district or the area within the
5-60     boundaries of the district.
5-61           (d)  A tax imposed under this Act or the repeal or change in
5-62     rate of a tax under this Act takes effect on the first day of the
5-63     first calendar quarter occurring after the expiration of the first
5-64     complete calendar quarter occurring after the date on which the
5-65     comptroller receives a copy of the order or resolution of the board
5-66     adopting, repealing, or changing the rate of the limited sales and
5-67     use tax authorized by this Act.
5-68           (e)  On adoption of the tax authorized by this Act, there is
5-69     imposed a tax on the receipts from the sale at retail of taxable
 6-1     items within the district at a rate not to exceed two percent, as
 6-2     well as an excise tax on the use, storage, or other consumption
 6-3     within the district of taxable items purchased, leased, or rented
 6-4     from a retailer during the period that the tax is effective within
 6-5     the district.  The rate of the excise tax is the same as the rate
 6-6     of the sales tax portion of the tax and is applied to the sales
 6-7     price of the taxable item.  With respect to a taxable service,
 6-8     "use" means the derivation in the district of direct or indirect
 6-9     benefit from the service.
6-10           (f)  The district is entitled to examine and receive
6-11     information from the comptroller of public accounts related to the
6-12     levy, assessment, and collection of sales and use taxes to the same
6-13     extent as if the district were a municipality.
6-14           SECTION 9.  USE OF SALES AND USE TAX PROCEEDS.  Sales and use
6-15     taxes collected under this Act may be used only as provided in this
6-16     Act.
6-17           SECTION 10.  HOTEL OCCUPANCY TAX.  (a)  In this section,
6-18     "hotel" has the meaning assigned by Section 156.001, Tax Code.
6-19           (b)  The board by order or resolution may impose a tax on a
6-20     person who, under a lease, concession, permit, right of access,
6-21     license, contract, or agreement, pays for the use or possession or
6-22     for the right to use or possess a room that is in a hotel located
6-23     in the boundaries of the district, costs $2 or more each day, and
6-24     is ordinarily used for sleeping.  The tax authorized by this
6-25     section may be imposed at any rate not to exceed the greater of:
6-26                 (1)  nine percent of the price paid for a room in a
6-27     hotel; or
6-28                 (2)  the rate of hotel occupancy tax imposed by the
6-29     municipality.
6-30           (c)  The board by order or resolution may repeal, increase,
6-31     or decrease the rate of a tax imposed under this section.
6-32           (d)  Except as inconsistent with this Act, Sections 352.004,
6-33     352.0041, 352.005, and 352.007, Tax Code, govern the imposition and
6-34     collection of a hotel occupancy tax authorized under this Act.  A
6-35     reference in Sections 352.004, 352.0041, 352.005, and 352.007, Tax
6-36     Code, to a county, the county's officers or governing body, or the
6-37     county attorney is a reference to the district, the district's
6-38     officers or governing body, or the district's attorney, as
6-39     appropriate.
6-40           (e)  The district is entitled to examine and receive
6-41     information related to the levy, assessment, and collection of
6-42     hotel occupancy taxes to the same extent as if the district were a
6-43     municipality.
6-44           SECTION 11.  USE OF HOTEL OCCUPANCY TAX PROCEEDS.  The
6-45     district shall apply the proceeds from a hotel occupancy tax
6-46     imposed under this Act as provided by this Act and Section
6-47     352.1015, Tax Code, to further public education in the county.
6-48           SECTION 12.  ALLOCATION OF REVENUES.  (a)  The district shall
6-49     transfer all of the tax revenues to the foundation in accordance
6-50     with this section, and tax revenues may not be used for any other
6-51     purpose.
6-52           (b)  Before any funds are transferred to the foundation, the
6-53     procedures set forth in this section must be followed.
6-54           (c)  The foundation shall present to the board a request for
6-55     funding in a specific amount and shall present to the board a
6-56     specific proposal for the use of that amount.
6-57           (d)  The board shall review the proposal and the purposes for
6-58     which the specific amount of funding is requested.
6-59           (e)  If the board, in its sole discretion, finds that the
6-60     amount of funds and the purposes described in a request for funding
6-61     are reasonable, serve the public purposes for which the district is
6-62     created, and further public education in the school district, the
6-63     board may transfer to the foundation an amount not to exceed the
6-64     amount requested.
6-65           (f)  The acceptance by the foundation of any funding from the
6-66     district constitutes a binding agreement by the foundation to
6-67     permit the board to audit any program of the foundation funded in
6-68     whole or in part with funds from the district to ensure that the
6-69     public purposes of the funding are accomplished and that the funds
 7-1     are used in accordance with the terms of a request approved by the
 7-2     board under this section.
 7-3           (g)  The acceptance by the foundation of any funding from the
 7-4     district constitutes a binding agreement by the foundation not to
 7-5     make any change in the foundation's articles of incorporation,
 7-6     bylaws, or other instruments defining the organization and purposes
 7-7     of the foundation, without the advance written approval of the
 7-8     board.
 7-9           (h)  The board may bring an action in a court of competent
7-10     jurisdiction to recover amounts not used in accordance with the
7-11     terms of a request approved by the board under this section.
7-12           SECTION 13.  LIMITATION ON THE POWERS OF THE DISTRICT.  The
7-13     district has no powers or duties not expressly provided by this Act
7-14     and none may be implied.
7-15           SECTION 14.  ADMINISTRATIVE SERVICES.  The county, the
7-16     municipality, and the Hays Consolidated Independent School District
7-17     may provide administrative services to the district and may permit
7-18     the board to use meeting facilities without charge.
7-19           SECTION 15.  DISSOLUTION.  (a)  The board may by resolution
7-20     or order dissolve the district.
7-21           (b)  The district may also be dissolved in the same manner as
7-22     a district created under Chapter 383, Local Government Code.
7-23           (c)  If the district is abolished, the taxes levied by the
7-24     district are repealed.
7-25           SECTION 16.  LEGISLATIVE FINDINGS.  The legislature finds
7-26     that:
7-27                 (1)  proper and legal notice of the intention to
7-28     introduce this Act, setting forth the general substance of this
7-29     Act, has been published as provided by law, and the notice and a
7-30     copy of this Act have been furnished to all persons, agencies,
7-31     officials, or entities to which they are required to be furnished
7-32     by the construction and laws of this state, including the governor,
7-33     who has submitted the notice and Act to the Texas Natural Resource
7-34     Conservation Commission;
7-35                 (2)  the Texas Natural Resource Conservation Commission
7-36     has filed its recommendations relating to this Act with the
7-37     governor, lieutenant governor, and speaker of the house of
7-38     representatives within the required time;
7-39                 (3)  the general law relating to consent by political
7-40     subdivisions to the creation of districts with conservation,
7-41     reclamation, and road powers and the inclusion of land in those
7-42     districts has been complied with; and
7-43                 (4)  all requirements of the constitution and laws of
7-44     this state and the rules and procedures of the legislature with
7-45     respect to the notice, introduction, and passage of this Act have
7-46     been fulfilled and accomplished.
7-47           SECTION 17.  INITIAL BOARD.  (a)  Notwithstanding Section 5
7-48     of this Act, the members appointed to positions 1, 3, 5, and 7 of
7-49     the board serve until June 1, 2003, the members appointed to
7-50     positions 2, 4, and 6 serve until June 1, 2004.
7-51           (b)  The governing bodies shall make their appointments to
7-52     the board not later than the 30th day after the effective date of
7-53     this Act.
7-54           SECTION 18.  LEGISLATIVE INTENT.  It is the intention of the
7-55     77th Legislature that subsequent Legislatures not impede the
7-56     purposes set forth in this Act by amending the board's composition
7-57     or the district's duties and powers prescribed in this Act, unless
7-58     resolutions consenting to any proposed amendment have been enacted
7-59     and approved by the board and the governing bodies of the county,
7-60     the municipality, and the Hays Consolidated Independent School
7-61     District, each and all respectively.
7-62           SECTION 19.  NONSEVERABILITY.  The legislature intends this
7-63     Act to be applied in its entirety and would not have enacted any
7-64     provision of this Act without each and every other provision.  The
7-65     provisions of this Act are not severable, and if any provision of
7-66     this Act is held invalid, the entire Act is invalid.
7-67           SECTION 20.  EFFECTIVE DATE.  (a)  This Act takes effect on
7-68     the date on which the municipality consents to the creation of the
7-69     district if that date:
 8-1                 (1)  occurs before the 91st day after the last day of
 8-2     the legislative session and this Act receives a vote of two-thirds
 8-3     of all the members elected to each house, as provided by Section
 8-4     39, Article III, Texas Constitution, or
 8-5                 (2)  occurs on or after the 91st day after the last day
 8-6     of the legislative session.
 8-7           (b)  If that date of consent occurs before the 91st day after
 8-8     the last day of the legislative session and this Act does not
 8-9     receive the vote necessary for effect on that consent date, this
8-10     Act takes effect on the 91st day after the last day of the
8-11     legislative session.
8-12                                  * * * * *