BILL ANALYSIS

H.B. 4825

By: Rose

Natural Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The purpose of the proposed economic development district in the Hill Country village of Driftwood is to assure that a high level of services are provided to both the residents and the commercial interests of a mixed-use development.  The development seeks to preserve the character of the Hill Country and set an example for sustainable development in the area.  The combination of vineyards, commercial activities, and residential uses will be a precedent-setting example of economic development for the area that creates jobs, embraces the agricultural traditions of the area, enhances the scenic beauty, and protects the environment.  This development will stimulate tourism, and tax revenues from the district will provide needed funding for the restoration, preservation, and enhancement of the scenic beauty and environment of the area.

H.B. 4825 creates the Driftwood Economic Development Municipal Management District. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 4825 amends the Special District Local Laws Code to create the Driftwood Economic Development Municipal Management District in Hays County. The bill sets forth general provisions for the creation and nature of the district, legislative findings, the district's public purpose and benefit, and district territory; the number of members, terms, and appointment of, and vacancies on, the board of directors of the district, including provisions relating to a petition for an election of the board and to the initial directors; the powers and duties of the district, including the power to provide or enter into contracts for certain improvement projects or activities in support of or incidental to those projects; to contract with any person for any district purpose and accept a grant or donation from any person, and to adopt and enforce rules; and provisions relating to competitive bidding. The bill prohibits the district from exercising the power of eminent domain.

H.B. 4825 sets forth financial provisions for the disbursements and transfers of money; prohibits the district from issuing bonds, borrowing money, or incurring any type of debt; requires an election to obtain voter approval before the imposition of a property tax; authorizes the board by resolution to impose and collect assessments and establishes requirements for liens; authorizes imposition of a sales and use tax and hotel occupancy tax; and establishes accounting requirements.  The bill sets forth the initial boundaries of the district and defines "board," "commissioners court," and "district."

EFFECTIVE DATE

On passage, or, if the act does not receive the necessary vote, the act takes effect September 1, 2009.