By: Martinez Fischer H.B. No. 4463
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of Austin Desired Development Zone
  District No. 5; providing authority to levy an assessment, impose
  taxes, and issue bonds; and granting a limited power of eminent
  domain.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 4, Special District Local Laws
  Code, is amended by adding Chapter 38__ to read as follows:
  CHAPTER 38__.  Austin Desired Development Zone District No. 5
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 38__.001. DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "City" means the City of Austin.
               (3)  "County" means Travis County.
               (4)  "Director" means a board member.
               (5)  "District" means the Austin Desired Development
  Zone District No. 5.
         Sec. 38__.002.  NATURE OF DISTRICT.  Austin Desired
  Development Zone District No. 5 is a special district created under
  Section 59, Article XVI, Texas Constitution.
         Sec. 38__.003.  PURPOSE; DECLARATION OF INTENT.  (a)  The
  creation of the district is essential to accomplish the purposes of
  Sections 52 and 52-a, Article III, and Section 59, Article XVI,
  Texas Constitution, and other public purposes stated in this
  chapter.  By creating the district and in authorizing the city, the
  county, and other political subdivisions to contract with the
  district, the legislature has established a program to accomplish
  the public purposes set out in Section 52-a, Article III, Texas
  Constitution.
         (b)  The creation of the district is necessary to promote,
  develop, encourage, and maintain employment, commerce,
  transportation, housing, tourism, recreation, the arts,
  entertainment, economic development, safety, and the public
  welfare in the district.
         Sec. 38__.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  
  The district is created to serve a public use and benefit.
         (b)  All land and other property included in the district
  will benefit from the improvements and services to be provided by
  the district under powers conferred by Sections 52 and 52-a,
  Article III, and Section 59, Article XVI, Texas Constitution, and
  other powers granted under this chapter.
         (c)  The creation of the district is in the public interest
  and is essential to:
               (1)  further the public purposes of developing and
  diversifying the economy of the state;
               (2)  eliminate unemployment and underemployment; and
               (3)  develop or expand transportation and commerce.
         (d)  The district will:
               (1)  promote the health, safety, and general welfare of
  residents, employers, potential employees, employees, visitors,
  and consumers in the district, and of the public;
               (2)  provide needed funding for the district to
  preserve, maintain, and enhance the economic health and vitality of
  the district territory as a community and business center; and
               (3)  promote the health, safety, welfare, and enjoyment
  of the public by providing pedestrian ways and by landscaping and
  developing certain areas in the district, which are necessary for
  the restoration, preservation, and enhancement of scenic beauty;
  and
               (4)  provide for water, wastewater, drainage, road, and
  recreational facilities for the district.
         (e)  Pedestrian ways along or across a street, whether at
  grade or above or below the surface, and street lighting, street
  landscaping, parking, and street art objects are parts of and
  necessary components of a street and are considered to be a street
  or road improvement.
         (f)  The district will not act as the agent or
  instrumentality of any private interest even though the district
  will benefit many private interests as well as the public.
         Sec. 38__.005.  INITIAL DISTRICT TERRITORY.  (a)  The
  district is initially composed of the territory described by
  Section 2 of the Act enacting this chapter.
         (b)  The boundaries and field notes contained in Section 2 of
  the Act enacting this chapter form a closure. A mistake in the field
  notes or in copying the field notes in the legislative process does
  not affect the district's:
               (1)  organization, existence, or validity;
               (2)  right to issue any type of bond for the purposes
  for which the district is created or to pay the principal of and
  interest on the bond;
               (3)  right to impose or collect an assessment or tax; or
         (4)  legality or operation.
         Sec. 38__.006.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.  
  All or any part of the area of the district is eligible to be
  included in:
               (1)  a tax increment reinvestment zone created under
  Chapter 311, Tax Code;
               (2)  a tax abatement reinvestment zone created under
  Chapter 312, Tax Code; or
               (3)  an enterprise zone created under Chapter 2303,
  Government Code.
         Sec. 38__.007.  APPLICABILITY OF MUNICIPAL MANAGEMENT
  DISTRICTS LAW.  Except as otherwise provided by this chapter,
  Chapter 375, Local Government Code, applies to the district.
         Sec. 38__.008.  LIBERAL CONSTRUCTION OF CHAPTER.  This
  chapter shall be liberally construed in conformity with the
  findings and purposes stated in this chapter.
         Sec. 38__.009.  CONFIRMATION AND DIRECTORS' ELECTION
  REQUIRED.  The temporary directors shall hold an election to
  confirm the creation of the district and to elect four permanent
  directors as provided by Section 49.102, Water Code.
         Sec. 38__.010.  CONSENT OF MUNICIPALITY REQUIRED.  (a)  The
  temporary directors may not hold an election under Section 38__.009
  until the city has consented by ordinance or resolution to the
  creation of the district and to the inclusion of land in the
  district.
         (b)  The city may condition its consent to the creation of
  the district, to the inclusion of land in the district, and to the
  exercise or limitation of powers granted to the district under this
  Chapter by requiring the owner of any land included in the district
  to negotiate and enter into a written agreement with the City of
  Austin under this Chapter and Sections 43.0563 and 212.172, Local
  Government Code.
         (c)  An agreement between a municipality and a landowner
  entered into prior to the effective date of this chapter and that
  complies with this section is validated.
         (d)  Section 54.016, Water Code, does not apply to the
  district or to an agreement under this section. An agreement under
  this section constitutes the city's consent to the creation of the
  district under Section 42.042, Local Government Code.
  [Sections 38__.012 - 38__.050 reserved for expansion]
  SUBCHAPTER B.  BOARD OF DIRECTORS
         Sec. 38 __.051.  GOVERNING BODY; TERMS.  (a)  The district is
  governed by a board of seven directors.  Four of the directors are
  elected.  Three of the directors are appointed under Sec. 38__.053.
         (b)  Except as provided by Sec. 38__.052, directors serve
  staggered four-year terms, with two elected directors' terms and
  one or two appointed director's terms expiring on June 1 of each
  even-numbered year.  The term of office for each director first
  appointed under Sec. 38__.053 shall begin on the date the four
  permanent directors are elected under Section 38__.009
         Sec. 38__.052.  TEMPORARY DIRECTORS.  (a)  On or after the
  effective date of the Act creating this chapter, the owner or owners
  of a majority of the assessed value of the real property in the
  district as determined by the most recent certified tax appraisal
  roll for the county may submit a petition to the Texas Commission on
  Environmental Quality requesting that the commission appoint as
  temporary directors the four persons named in the petition.  The
  commission shall appoint as temporary directors the four persons
  named in the petition.
         (b)  Temporary directors serve until the earlier of:
               (1)  the date four permanent directors are elected
  under Section 38__.009; or
               (2)  the fourth anniversary of the effective date of
  the Act creating this chapter.
         (c)  If permanent directors have not been elected under
  Section 38__.009 and the terms of the temporary directors have
  expired, successor temporary directors shall be appointed or
  reappointed as provided by Subsection (d) to serve terms that
  expire on the earlier of:
               (1)  the date four permanent directors are elected
  under Section 38__.009; or
               (2)  the fourth anniversary of the date of the
  appointment or reappointment.
         (d)  If Subsection (c) applies, the owner or owners of a
  majority of the assessed value of the real property in the district
  according to the most recent certified tax appraisal roll for the
  county may submit a petition to the commission requesting that the
  commission appoint as successor temporary directors the four
  persons named in the petition.  The commission shall appoint as
  successor temporary directors the four persons named in the
  petition.
         Sec. 38__.053.  APPOINTMENT OF DIRECTOR.  (a)  The City
  Council of the city shall appoint one director, and may appoint a
  second director after notice is provided by the board to the city
  under Subsection (c).  A person is appointed if a majority of the
  members of the City Council vote to appoint that person.
         (b)  The county Commissioners Court shall appoint one
  director. A person is appointed if a majority of the members of the
  Commissioners Court vote to appoint that person.
         (c)  The Texas Commission on Environmental Quality shall
  appoint one director nominated by the board.  The board shall
  request the name of a qualified director nominee from each person
  who owns at least 25 percent of the surface area of land in the
  district, based on the most recent certified tax appraisal roll for
  the county.  The board shall nominate to the Texas Commission on
  Environmental Quality the qualified director nominee whose name was
  submitted by the person who owns the largest total surface area of
  land in the district.  If the board has not received the name of a
  qualified director nominee before the 31st day after the date the
  board requests the name of a qualified director nominee from every
  person who owns at least 25 percent of the surface area of land in
  the district, or if no person owns at least 25 percent of the
  surface area of land in the district, the board shall notify the
  city that it may appoint a second director under Subsection (a), and
  no appointment shall be made under this subsection.
         Sec. 38__.054  QUALIFICATIONS OF DIRECTOR.  (a)  To be
  qualified to be elected and serve as an elected director or to be
  qualified to be appointed and serve as an appointed director under
  Subsection (c) of Section 38__.053, a person must be at least 18
  years old and:
               (1)  a resident of the district; or
               (2)  an owner of property in the district.
         (b)  A director appointed under Section 38__.052 or
  Subsection (a) or (b) of Section 38__.053 must be at least 18 years
  old.
         (c)  A person who qualifies to serve as a director under this
  section is subject to Section 375.072, Local Government Code.
         Sec. 38__.055.  DIRECTOR VACANCY.  A vacancy in the office of
  an elected director shall be filled for the unexpired term by the
  majority vote of the remaining members of the board. A vacancy in
  the office of a director appointed under Section 38__.053 shall be
  filled for the unexpired term by a new director appointed under that
  section.
         Sec. 38__.056.  QUORUM.  (a)  A majority of the directors
  constitutes a quorum, and a concurrence of a majority of the
  directors is required for any official action of the district
  unless a lesser or greater number of votes is provided by other law.  
  The written consent of at least two-thirds of the directors is
  required to authorize the levy of assessments, the levy of taxes,
  the imposition of impact fees, or the issuance of bonds.
         (b)  For purposes of determining the requirements for a
  majority of the board under this section, the following are not
  counted:
               (1)  a board position vacant for any reason, including
  death, resignation, or disqualification; or
               (2)  a director who is abstaining from participation in
  a vote because of a conflict of interest.
         Sec. 38__.057.  COMPENSATION.  A director is entitled to
  receive fees of office and reimbursement for actual expenses as
  provided by Section 49.060, Water Code.
  [Sections 38__.058 - 38__.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 38__.101.  GENERAL POWERS AND DUTIES.  The district has
  the powers and duties provided by:
               (1)  the general laws relating to conservation and
  reclamation districts created under Section 59, Article XVI, Texas
  Constitution, including Chapters 49 and 54, Water Code;
               (2)  Section 52, Article III, Texas Constitution,
  including the power to design, acquire, construct, finance, issue
  bonds for, improve, operate, maintain, and convey to this state, a
  county, or a municipality for operation and maintenance
  macadamized, graveled, or paved roads, or improvements, including
  storm drainage, in aid of those roads;
               (3)  Subchapter A, Chapter 372, Local Government Code,
  in the same manner as a municipality or a county;
               (4)  Chapter 375, Local Government Code;
               (5)  Chapter 380, Local Government Code, in the same
  manner as a municipality;
               (6)  Chapter 394, Local Government Code, to a housing
  finance corporation created and operating under that chapter, in
  the same manner as a housing finance corporation;
               (7)  Subchapter C, Chapter 402, Local Government Code,
  in the same manner as a municipality; and
               (8)  Chapters 501, 502, and 505, Local Government Code,
  in the same manner as a municipality to which one or more of those
  chapters applies.
         Sec. 38__.102.  AGREEMENTS; GRANTS.  (a)  The district may
  make an agreement with or accept a gift, grant, or loan from any
  person. A service agreement made by the district shall be
  terminable at will and without penalty upon 30 days notice of
  termination, unless the district secures the written consent of the
  City of Austin to modify or exclude those termination provisions,
  except for service agreements with the following persons or
  entities:
               (1)  a developer of land within the district, as
  defined by Section 49.052(d), Water Code;
               (2)  a government agency, entity, or political
  subdivision;
               (3)  a retail public utility or electric cooperative,
  concerning water, wastewater, gas, electricity, telecommunication,
  drainage, or other utility services and facilities; or
               (4)  a provider of services relating to solid waste
  collection, transfer, processing, reuse, resale, disposal, and
  management.
         (b)  The implementation of a project is a governmental
  function or service for the purposes of Chapter 791, Government
  Code.
         (c)  The board may enter into a contract with the board of
  directors of a tax increment reinvestment zone created under
  Chapter 311, Tax Code, and the governing body of the municipality or
  county that created the zone to manage the zone or implement the
  project plan and reinvestment zone financing plan.
         Sec. 38__.103.  AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT
  AND FIRE-FIGHTING SERVICES.  (a)  To protect the public interest,
  the district may contract with a qualified party, including the
  county or the city, for the provision of law enforcement services in
  the district for a fee.
         (b)  The district may provide fire-fighting services under
  Section 49.351, Water Code and has the powers and duties of a
  municipality under Section 775.022, Health & Safety Code.
         Sec. 38__.104.  ECONOMIC DEVELOPMENT PROGRAMS.  The district
  may establish and provide for the administration of one or more
  programs to promote state or local economic development and to
  stimulate business and commercial activity in the district,
  including programs to:
               (1)  make loans and grants of public money; and
               (2)  provide district personnel and services.
         Sec. 38__.105.  STRATEGIC PARTNERSHIP AGREEMENT.  The
  district may negotiate and enter into a written strategic
  partnership with the City of Austin under Section 43.0751, Local
  Government Code.  A power granted to the district under this Chapter
  may be restricted or prohibited by the terms and conditions of an
  agreement between the City of Austin and the district under this
  section.
         Sec. 38__.106.  LIMITED EMINENT DOMAIN.  (a)  The district
  may exercise the power of eminent domain under Section 49.222,
  Water Code.
         (b)  The district may not exercise the power of eminent
  domain outside the district boundaries to acquire:
               (1)  a site for a water treatment plant, water storage
  facility, wastewater treatment plant, or wastewater disposal
  plant; or
               (2)  a recreational facility as defined by Section
  49.462, Water Code.
         Sec. 38__.107.  ANNEXATION OR EXCLUSION OF LAND BY DISTRICT.  
  (a)  The district may annex land as provided by Subchapter J,
  Chapter 49, Water Code.
         (b)  The district may exclude land as provided by Subchapter
  J, Chapter 49, Water Code.  Section 375.044(b), Local Government
  Code, does not apply to the district.
         Sec 38__.108.  SUITS. The District shall not be a voluntary
  party to any suit against the city by a district resident or a
  person who owns property in the district unless the district has
  standing to bring the suit.
  [Sections 38__.109 - 38__.150 reserved for expansion]
  SUBCHAPTER D.  PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES
         Sec. 38__.151.  PUBLIC TRANSIT SYSTEM.  (a)  The district may
  acquire, lease as lessor or lessee, construct, develop, own,
  operate, and maintain a public transit system to serve the area
  within the boundaries of the district.
         (b)  The district may contract with a regional transit
  authority for the provision of a public transit system and public
  transit services.
         Sec. 38__.152.  PARKING FACILITIES AUTHORIZED; OPERATION BY
  PRIVATE ENTITY; TAX EXEMPTION.  (a)  The district may acquire, lease
  as lessor or lessee, construct, develop, own, operate, and maintain
  parking facilities or a system of parking facilities, including:
               (1)  lots, garages, parking terminals, or other
  structures or accommodations for parking motor vehicles off the
  streets; and
               (2)  equipment, entrances, exits, fencing, and other
  accessories necessary for safety and convenience in parking
  vehicles.
         (b)  A parking facility of the district may be leased to, or
  operated for the district by, an entity other than the district.
         (c)  The district's parking facilities are a program
  authorized by the legislature under Section 52-a, Article III,
  Texas Constitution.
         (d)  The district's parking facilities serve the public
  purposes of the district and are owned, used, and held for a public
  purpose even if leased or operated by a private entity for a term of
  years.
         (e)  The district's public parking facilities and any lease
  to a private entity are exempt from the payment of ad valorem taxes
  and state and local sales and use taxes.
         Sec. 38__.153.  RULES.  The district may adopt rules
  covering its public transit system or its public parking system.
         Sec.  38__.154.  FINANCING OF PUBLIC TRANSIT SYSTEM OR
  PARKING FACILITIES.  (a)  The district may use any of its resources,
  including revenue, assessments, taxes, or grant or contract
  proceeds, to pay the cost of acquiring or operating a public transit
  system or public parking facilities.
         (b)  The district may:
               (1)  set, charge, impose, and collect fees, charges, or
  tolls for the use of the public transit system or the public parking
  facilities; and
               (2)  issue bonds or notes to finance the cost of these
  facilities.
  [Sections 38__.155 - 38__.200 reserved for expansion]
  SUBCHAPTER E.  GENERAL FINANCIAL PROVISIONS
         Sec. 38__.201.  DISBURSEMENTS AND TRANSFERS OF MONEY.  The
  board by resolution shall establish the number of directors'
  signatures and the procedure required for a disbursement or
  transfer of the district's money.
         Sec. 38__.202.  MONEY USED FOR IMPROVEMENTS OR SERVICES.  
  The district may acquire, construct, finance, operate, or maintain
  any improvement or service authorized under this chapter or Chapter
  375, Local Government Code, using any money available to the
  district.
         Sec. 38__.203.  PETITION REQUIRED FOR FINANCING SERVICES AND
  IMPROVEMENTS WITH ASSESSMENTS.  (a)  The board may not finance a
  service or improvement project with assessments under this chapter
  unless a written petition requesting that service or improvement
  has been filed with the board.
         (b)  A petition filed under Subsection (a) must be signed by
  the owners of a majority of the assessed value of the real property
  in the district subject to assessment as determined by the most
  recent certified tax appraisal roll for the county.
         Sec. 38__.204.  METHOD OF NOTICE FOR HEARING.  The district
  may mail the notice required by Section 375.115(c), Local
  Government Code, by certified or first class United States mail.  
  The board shall determine the method of notice.
         Sec. 38__.205.  ASSESSMENTS; LIENS FOR ASSESSMENTS.  (a)  
  The board by resolution may impose and collect an assessment for any
  purpose authorized by this chapter in all or any part of the
  district.
         (b)  An assessment, a reassessment, or an assessment
  resulting from an addition to or correction of the assessment roll
  by the district, penalties and interest on an assessment or
  reassessment, an expense of collection, and reasonable attorney's
  fees incurred by the district:
               (1)  are a first and prior lien against the property
  assessed;
               (2)  are superior to any other lien or claim other than
  a lien or claim for county, school district, or municipal ad valorem
  taxes; and
               (3)  are the personal liability of and a charge against
  the owners of the property even if the owners are not named in the
  assessment proceedings.
         (c)  The lien is effective from the date of the board's
  resolution imposing the assessment until the date the assessment is
  paid. The board may enforce the lien in the same manner that the
  board may enforce an ad valorem tax lien against real property.
         (d)  The board may make a correction to or deletion from the
  assessment roll that does not increase the amount of assessment of
  any parcel of land without providing notice and holding a hearing in
  the manner required for additional assessments.
         Sec. 38__.206.  UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND
  ASSESSMENTS.  The district may not impose an impact fee or
  assessment on the property, including the equipment,
  rights-of-way, facilities, or improvements, of:
               (1)  an electric utility or a power generation company
  as defined by Section 31.002, Utilities Code;
               (2)  a gas utility as defined by Section 101.003 or
  121.001, Utilities Code;
               (3)  a telecommunications provider as defined by
  Section 51.002, Utilities Code; or
               (4)  a person who provides to the public cable
  television or advanced telecommunications services.
         Sec. 38__.207.  RESIDENTIAL PROPERTY.  Section 375.161,
  Local Government Code, does not apply to the district.
         Sec. 38__.208.  OPERATION AND MAINTENANCE TAX.  (a)  If
  authorized at an election held in accordance with Section 38__.212,
  the district may impose an operation and maintenance tax on taxable
  property in the district in accordance with Section 49.107, Water
  Code, for any district purpose, including to:
               (1)  maintain and operate the district;
               (2)  construct or acquire improvements; or
               (3)  provide a service.
         (b)  The board shall determine the tax rate. The rate may not
  exceed the rate approved at the election.
         Sec. 38__.209.  CONTRACT TAXES.  (a)  In accordance with
  Section 49.108, Water Code, the district may impose a tax other than
  an operation and maintenance tax and use the revenue derived from
  the tax to make payments under a contract after the provisions of
  the contract have been approved by a majority of the district voters
  voting at an election held for that purpose.
         (b)  A contract approved by the district voters may contain a
  provision stating that the contract may be modified or amended by
  the board without further voter approval.
         Sec. 38__.210.  AUTHORITY TO ISSUE BONDS.  (a)  The district
  may issue by competitive bid bonds, notes, or other obligations
  payable wholly or partly from taxes, assessments, impact fees,
  revenue, grants, or other money of the district, or any combination
  of those sources of money, to pay for any authorized district
  purpose.
         (b)  The limitation on the outstanding principal amount of
  bonds, notes, and other obligations set forth in Section 49.4645,
  Water Code, does not apply to the district.
         Sec. 38__.211.  CITY APPROVAL OF DISTRICT BONDS.  (a)  No
  later than 30 days before the first publication of notice of sale of
  a district bond, the district shall provide to the city a copy of
  the district's application to the Texas Commission on Environmental
  Quality for approval of the bond sale, a copy of the staff
  memorandum from the Texas Commission on Environmental Quality
  approving the projects and the bonds, the proposed bond resolution,
  the preliminary official statement for the bond sale, the bid form,
  and the notice of sale, as applicable.
         (b)  The city may refuse to approve a bond sale only if the
  city determines that issuance of the bonds would cause the district
  to be substantially out of compliance with a material provision of a
  written agreement with the city under Section 38__.010, Section
  38__.105, or any other written agreement with the city pertaining
  to the district's creation or operation.
         (c)  The city shall notify the district of its refusal to
  approve a bond sale under Subsection (b) no later than the 15th day
  after its receipt of the information provided under Subsection (a),
  or the bond sale shall be deemed to be approved by the City.
         (d)  The district shall not issue or sell a bond that the city
  has refused to approve under this section.
         Sec. 38__.212.  TAXES FOR BONDS.  At the time the district
  issues bonds payable wholly or partly from ad valorem taxes, the
  board shall provide for the annual imposition of a continuing
  direct annual ad valorem tax, without limit as to rate or amount,
  for each year while all or part of the bonds are outstanding as
  required and in the manner provided by Sections 54.601 and 54.602,
  Water Code.
         Sec. 38__.213.  ELECTIONS REGARDING TAXES AND BONDS.  (a)  
  The district may issue, without an election, bonds, notes, and
  other obligations secured by:
               (1)  revenue other than ad valorem taxes; or
               (2)  contract payments described by Section 38__.209.
         (b)  The district shall hold an election in the manner
  provided by Subchapter L, Chapter 375, Local Government Code, to
  obtain voter approval before the district imposes an ad valorem tax
  or sales and use tax or issues bonds payable from ad valorem taxes.
         (c)  Section 375.243, Local Government Code, does not apply
  to the district.
         (d)  All or any part of any facilities or improvements which
  may be acquired by a district by the issuance of its bonds may be
  included in one single proposition to be voted on at the election or
  the bonds may be submitted in several propositions.
         Sec 38__.214.  CITY NOT REQUIRED TO PAY DISTRICT
  OBLIGATIONS.  Except as provided by Section 375.263, Local
  Government Code, the city is not required to pay a bond, note, or
  other obligation of the district.
         Sec. 38__.215.  COMPETITIVE BIDDING.  Subchapter I, Chapter
  49, Water Code, applies to the district. Subchapter K, Chapter 375,
  Local Government Code, does not apply to the district if the
  district complies with the requirements of Section 375.222, Local
  Government Code, as it existed on January 1, 2009.
         Sec. 38__.216.  TAX AND ASSESSMENT ABATEMENTS.  The district
  may grant in the manner authorized by Chapter 312, Tax Code, an
  abatement for a tax or assessment owed to the district.
         Sec. 38__.217.  TAX INCREMENT FINANCING POWERS.  (a)  The
  district may designate all or any part of the district as a tax
  increment reinvestment zone, and the district may use tax increment
  financing under Chapter 311, Tax Code, in the manner provided by
  that chapter for a municipality, except as modified by this
  section.
         (b)  The district has all powers provided under Chapter 311,
  Tax Code.
         (c)  The district and an overlapping taxing unit may enter
  into an interlocal agreement for the payment of all or a portion of
  the tax increment of the unit to the district.
         (d)  For the purpose of tax increment financing under this
  section, the board functions as the board of directors of the
  reinvestment zone. Section 311.009, Tax Code, does not apply to the
  district.
  [Sections 38__.218 - 38__.300 reserved for expansion]
  SUBCHAPTER F.  SALES AND USE TAX
         Sec. 38__.301.  MEANINGS OF WORDS AND PHRASES.  Words and
  phrases used in this subchapter that are defined by Chapters 151 and
  321, Tax Code, have the meanings assigned by Chapters 151 and 321,
  Tax Code.
         Sec. 38__.302.  APPLICABILITY OF CERTAIN TAX CODE
  PROVISIONS.  (a)  Except as otherwise provided by this subchapter,
  Subtitles A and B, Title 2, Tax Code, and Chapter 151, Tax Code,
  apply to taxes imposed under this subchapter and to the
  administration and enforcement of those taxes in the same manner
  that those laws apply to state taxes.
         (b)  Chapter 321, Tax Code, relating to municipal sales and
  use taxes, applies to the application, collection, charge, and
  administration of a sales and use tax imposed under this subchapter
  to the extent consistent with this chapter, as if references in
  Chapter 321, Tax Code, to a municipality referred to the district
  and references to a governing body referred to the board.
         (c)  Sections 321.106, 321.401, 321.402, 321.403, 321.404,
  321.406, 321.409, 321.506, 321.507, and 321.508, Tax Code, do not
  apply to a tax imposed under this subchapter.
         Sec. 38__.303.  AUTHORIZATION; ELECTION.  (a)  The district
  may adopt a sales and use tax to serve the purposes of the district
  after an election in which a majority of the voters of the district
  voting in the election authorize the adoption of the tax.
         (b)  The board by order may call an election to authorize a
  sales and use tax.  The election may be held with any other district
  election.
         (c)  The district shall provide notice of the election and
  shall hold the election in the manner prescribed by Section 38.212.
         (d)  The ballots shall be printed to provide for voting for
  or against the proposition: "Authorization of a sales and use tax in
  Austin Desired Development Zone Management District No. 5 at a rate
  not to exceed [    ] percent."
         Sec. 38__.304.  ABOLISHING SALES AND USE TAX.  (a)  Except as
  provided in Subsection (b), the board may abolish the sales and use
  tax without an election.
         (b)  The board may not abolish the sales and use tax if the
  district has outstanding debt secured by the tax.
         (c)  Notwithstanding subsection (b), a sales and use tax
  adopted under this subchapter is automatically abolished on the
  effective date of full-purpose annexation by the city of the
  district.
         Sec. 38__.305.  SALES AND USE TAX RATE.  (a)  On adoption of
  the tax authorized by this subchapter, there is imposed a tax on the
  receipts from the sale at retail of taxable items within the
  district, and an excise tax on the use, storage, or other
  consumption within the district of taxable items purchased, leased,
  or rented from a retailer within the district during the period that
  the tax is in effect.
         (b)  The board shall determine the rate of the tax, which may
  be in one-eighth of one percent increments not to exceed the maximum
  rate authorized by the district voters at the election.  The board
  may lower the tax rate to the extent it does not impair any
  outstanding debt or obligations payable from the tax.
         (c)  The rate of the excise tax is the same as the rate of the
  sales tax portion of the tax and is applied to the sales price of the
  taxable item.
  [Sections 38__.306 - 38__.350 reserved for expansion]
  SUBCHAPTER G.  HOTEL OCCUPANCY TAXES
         Sec. 38__.351.  HOTEL OCCUPANCY TAX.  (a)  In this section,
  "hotel" has the meaning assigned by Section 156.001, Tax Code.
         (b)  For purposes of this section, a reference in Chapter
  351, Tax Code, to a municipality is a reference to the district and
  a reference in Chapter 351, Tax Code, to the municipality's
  officers or governing body is a reference to the board.
         (c)  Except as inconsistent with this section, Subchapter A,
  Chapter 351, Tax Code, governs a hotel occupancy tax authorized by
  this section.
         (d)  The district may impose a hotel occupancy tax and may
  use revenue from the tax for any district purpose that is also an
  authorized use of hotel occupancy tax revenue under Chapter 351,
  Tax Code.
         (e)  The board by order may impose, repeal, increase, or
  decrease the rate of a tax on a person who, under a lease,
  concession, permit, right of access, license, contract, or
  agreement, pays for the use or possession or for the right to the
  use or possession of a room that:
               (1)  is in a hotel located in the district's boundaries;
               (2)  costs $2 or more each day; and
               (3)  is ordinarily used for sleeping.
         (f)  The amount of the tax may not exceed seven percent of the
  price paid for a room in a hotel.
         (g)  The district may examine and receive information
  related to the imposition of hotel occupancy taxes to the same
  extent as if the district were a municipality.
         (h)  A hotel occupancy tax imposed under this subchapter is
  automatically abolished on the effective date of full-purpose
  annexation by the city of the district.
  [Sections 38__.352 - 38__.400 reserved for expansion]
  SUBCHAPTER H.  DISSOLUTION
         Sec. 38__.401 DISSOLUTION. (a) The district may not be
  dissolved under Subchapter M, Chapter 375, Local Government Code,
  or any other law that authorizes dissolution of the district until
  and unless all of the district's outstanding indebtedness and
  contractual obligations payable from ad valorem taxes, sales and
  use taxes, assessments, or other revenue sources are paid in full or
  payment is fully provided for.
         (b)  If the conditions of subsection (a) are satisfied, the
  district may be dissolved by the affirmative vote of at least five
  of the directors of the board.  If the conditions of subsection (a)
  are satisfied after the district has been annexed into the city for
  full purposes, the city may dissolve the district by the majority
  vote of its governing body.
         (c)  Dissolution of the district shall be in accordance with
  the terms and conditions of this section and of the agreement
  between the landowner and the city under Section 38.010.
         (d)  Sections 43.075 and 43.0715, Local Government Code, do
  not apply to the district.
         SECTION 2.  Austin Desired Development Zone District No. 5
  includes all territory contained in the following area:
         DESCRIPTION OF 339.251 ACRES IN THE SANTIAGO DEL VALLE GRANT
  IN TRAVIS COUNTY, TEXAS, BEING A PORTION OF A 167.748 ACRE TRACT
  DESCRIBED IN A GENERAL WARRANTY DEED TO JONA ACQUISITION INC.,
  DATED DECEMBER 13, 2006 AND RECORDED IN DOCUMENT NO. 2006241307 OF
  THE OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS, A PORTION OF A
  98.656 ACRE TRACT DESCRIBED IN A GENERAL WARRANTY DEED TO JONA
  ACQUISITION INC., DATED OCTOBER 19, 2006 AND RECORDED IN DOCUMENT
  NO. 2006204344 OF THE OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY,
  TEXAS, A PORTION OF A 60.921 ACRE TRACT DESCRIBED IN A SPECIAL
  WARRANTY DEED TO JONA ACQUISITION INC., DATED DECEMBER 12, 2006 AND
  RECORDED IN DOCUMENT NO. 2006239174 OF THE OFFICIAL PUBLIC RECORDS
  OF TRAVIS COUNTY, TEXAS, A PORTION OF A 55.222 ACRE TRACT DESCRIBED
  IN A SPECIAL WARRANTY DEED TO JONA ACQUISITION INC., DATED APRIL 2,
  2006 AND RECORDED IN DOCUMENT NO. 2006060712 OF THE OFFICIAL PUBLIC
  RECORDS OF TRAVIS COUNTY, TEXAS, A PORTION OF A 25.119 ACRE TRACT
  DESCRIBED IN A SPECIAL WARRANTY DEED TO JONA ACQUISITION INC.,
  DATED APRIL 2, 2006 AND RECORDED IN DOCUMENT NO. 2006060707 OF THE
  OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS, A PORTION OF A
  7.602 ACRE TRACT DESCRIBED IN A SPECIAL WARRANTY DEED TO JONA
  ACQUISITION INC., DATED APRIL 2, 2006 AND RECORDED IN DOCUMENT NO.
  2006060704 OF THE OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS,
  A PORTION OF A 23.694 ACRE TRACT DESCRIBED IN A SPECIAL WARRANTY
  DEED TO JONA ACQUISITION INC., DATED APRIL 2, 2006 AND RECORDED IN
  DOCUMENT NO. 2006060710 OF THE OFFICIAL PUBLIC RECORDS OF TRAVIS
  COUNTY, TEXAS, A PORTION OF A 42.558 ACRE TRACT DESCRIBED IN A
  GENERAL WARRANTY DEED TO JONA ACQUISITION INC., DATED MAY 16, 2008
  AND RECORDED IN DOCUMENT NO. 2008083861 OF THE OFFICIAL PUBLIC
  RECORDS OF TRAVIS COUNTY, TEXAS, A PORTION OF WENDE ROAD, A PUBLIC
  ROAD IN TRAVIS COUNTY, TEXAS HAVING A RIGHT-OF-WAY WIDTH OF 40 FEET,
  AND A PORTION OF SASSMAN ROAD, A PUBLIC ROAD IN TRAVIS COUNTY, TEXAS
  HAVING A RIGHT-OF-WAY OF VARIABLE WIDTH.
         SAVE AND EXCEPT LOT ONE, J.P. COTMAN ADDITION, AN ADDITION TO
  TRAVIS COUNTY, TEXAS, ACCORDING TO THE MAP OR PLAT THEREOF,
  RECORDED IN VOLUME 79, PAGE 60, OF THE PLAT RECORDS OF TRAVIS
  COUNTY, TEXAS, CONVEYED TO JUAN YESCAS AND MARIA R. YESCAS IN A
  WARRANTY DEED, DATED DECEMBER 30, 2004 AND RECORDED IN DOCUMENT NO.
  2004242191 OF THE OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS,
  A 2.50 ACRE TRACT DESCRIBED IN AN INDEPENDENT EXECUTOR'S SPECIAL
  WARRANTY DEED TO MICHAEL L. APPLEGATE AND HARMONY D. APPLEGATE,
  DATED OCTOBER 23 2003 AND RECORDED IN DOCUMENT NO. 2003268689 OF THE
  OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY TEXAS, A 3.213 ACRES TRACT
  DESCRIBED IN A DEED, WITH VENDOR'S LIEN TO MARIO RODRIGUEZ & EMMA
  RODRIGUEZ, DATED FEBRUARY 4, 1983 AND RECORDED IN VOLUME 7998, PAGE
  656 OF THE DEED RECORDS OF TRAVIS COUNTY TEXAS, A 2.50 ACRE TRACT
  DESCRIBED IN A DEED TO H. E. THYSSEN & MARGARET THYSSEN, DATED JUNE
  3, 1977 AND RECORDED IN VOLUME 5827, PAGE 2441 OF THE DEED RECORDS
  OF TRAVIS COUNTY TEXAS, A 0.201 ACRE TRACT DESCRIBED IN A WARRANTY
  DEED TO LARRY THYSSEN, DATED OCTOBER 31, 2006 AND RECORDED IN
  DOCUMENT NO. 2006224848 OF THE OFFICIAL PUBLIC RECORDS OF TRAVIS
  COUNTY TEXAS; SAID 339.251 ACRE TRACT BEING MORE PARTICULARLY
  DESCRIBED BY METES AND BOUNDS AS FOLLOWS:
         BEGINNING at a 1/2" rebar with "Chaparral Boundary" cap found
  for the southeast corner of said 167.748 acre tract, same being in
  the west right-of-way line of F.M. 1625 (80' right-of-way), also
  being in the north right-of-way line of Sassman Road (right-of-way
  width varies);
         THENCE South 27°11'52" West, crossing Sassman Road with the
  west right-of-way line of F.M. 1625, a distance of 70.00 feet to a
  1/2" iron rod found for the northeast corner of said 98.656 acre
  tract;
         THENCE with the west right-of-way line of F. M. 1625, same
  being the east line of said 98.656 acre tract, the following two (2)
  courses and distances:
         1.  South 27°11'52" West, a distance of 2856.46 feet to a
  concrete highway monument found 40 feet right of TxDOT centerline
  station 115+77;
         2.  South 27°04'38" West, a distance of 352.97 feet to a
  calculated point in said line;
         THENCE crossing said 98.656 acre tract, said 60.921 acre
  tract, said 51.942 acre tract, said 55.222 acre tract, said 25.119
  acre tract, said 7.602 acre tract, said 23.694 acre tract, Sassman
  Road, said 42.558 acre tract, and said 167.748 acre tract the
  following fifteen (15) courses and distances:
         1.  North 62°55'22" West, a distance of 149.13 feet to a
  calculated point;
         2.  With a curve to the right, having a radius of 1800.01
  feet, a delta angle of 68°24'29", an arc length of 2149.12 feet, and
  a chord which bears North 28°43'07" West, a distance of 2023.72 feet
  to a calculated point;
         3.  North 05°29'07" East, a distance of 423.15 feet to a
  calculated point;
         4.  With a curve to the left, having a radius of 1000.01 feet,
  a delta angle of 40°36'48", an arc length of 708.84 feet, and a chord
  which bears North 14°49'17" West, a distance of 694.10 feet to a
  calculated point;
         5.  North 35°07'41" West, a distance of 344.76 feet to a
  calculated point;
         6.  North 54°52'19" East, a distance of 25.40 feet to a
  calculated point;
         7.  With a curve to the left, having a radius of 500.00 feet,
  a delta angle of 96°25'47", an arc length of 841.51 feet, and a chord
  which bears North 06°39'26" East, a distance of 745.65 feet to a
  calculated point;
         8.  North 41°33'28" West, a distance of 324.65 feet to a
  calculated point;
         9.  With a curve to the right, having a radius of 500.00 feet,
  a delta angle of 69°45'07", an arc length of 608.70 feet, and a chord
  which bears North 06°40'55" West, a distance of 571.80 feet to a
  calculated point;
         10.  North 28°11'39" East, a distance of 1655.67 feet to a
  calculated point;
         11.  South 61°48'21" East, a distance of 1129.78 feet to a
  calculated point;
         12.  With a curve to the left, having a radius of 1400.00
  feet, a delta angle of 31°17'39", an arc length of 764.66 feet, and a
  chord which bears South 77°27'10" East, a distance of 755.19 feet to
  a calculated point;
         13.  North 86°54'01" East, a distance of 948.17 feet to a
  calculated point;
         14.  With a curve to the right, having a radius of 1400.01
  feet, a delta angle of 30°17'26", an arc length of 740.14 feet, and a
  chord which bears South 77°57'16" East, a distance of 731.55 feet to
  a calculated point;
         15.  South 62°48'33" East, a distance of 209.65 feet to a
  calculated point in the west right-of-way line of said F.M. 1625,
  same being the southeast line of said 167.748 acre tract;
         THENCE with the west right-of-way line of F.M. 1625, same
  being the southeast line of said 167.748 acre tract, the following
  two (2) courses and distances:
         1.  South 27°05'45" West, a distance of 1346.91 feet to a
  concrete highway monument found;
         2.  South 27°19'52" West, a distance of 601.74 feet to a 1/2"
  rebar with "Chaparral Boundary" cap found at the east corner of a
  2.99 acre tract described in a deed of record in Document No.
  2005117402 of the Official Public Records of Travis County, Texas,
  from which a 1/2" rebar found bears South 62°17'33" East, a distance
  of 0.61 feet;
         THENCE continuing with the southeast line of said 167.748
  acre tract, same being the northeast, northwest, and southwest
  lines of said 2.99 acre tract, the following three (3) courses and
  distances:
         1.  North 62°14'19" West, a distance of 361.02 feet to a 1/2"
  rebar found;
         2.  South 27°25'52" West, a distance of 360.78 feet to a 1/2"
  rebar found;
         3.  South 62°14'19" East, a distance of 361.65 feet to a 1/2"
  rebar with "Chaparral Boundary" cap found in the west right-of-way
  line of F.M. 1625, same being the south corner of said 2.99 acre
  tract;
         THENCE continuing with the southeast line of said 167.748
  acre tract, same being the west right-of-way line of F.M. 1625, the
  following two (2) courses and distances:
         1.  South 27°19'52" West, a distance of 361.72 feet to a 1/2"
  rebar with "Chaparral Boundary" cap found;
         2.  South 27°11'52" West, a distance of 434.71 feet to the
  POINT OF BEGINNING, containing 339.251 acres of land, more or less.
         SECTION 3.  LEGISLATIVE FINDINGS.  The legislature finds
  that:
         (1)  The development or redevelopment in the area in the
  proposed Austin Desired Development Zone District No. 5 would not
  occur solely through private investment in the reasonably
  foreseeable future;
         (2)  The area in the proposed Austin Desired Development Zone
  District No. 5 is unproductive and underdeveloped; and
         (3)  The conditions in the area of the proposed Austin
  Desired Development Zone District No. 5 substantially arrest or
  impair the sound growth of the area, are an economic or social
  liability, and present a menace to the public health, safety,
  morals, or welfare.
         SECTION 4.  (a)  The legal notice of the intention to
  introduce this Act, setting forth the general substance of this
  Act, has been published as provided by law, and the notice and a
  copy of this Act have been furnished to all persons, agencies,
  officials, or entities to which they are required to be furnished
  under Section 59, Article XVI, Texas Constitution, and Chapter 313,
  Government Code.
         (b)  The governor, one of the required recipients, has
  submitted the notice and Act to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this Act with the governor,
  lieutenant governor, and speaker of the house of representatives
  within the required time.
         (d)  The general law relating to consent by political
  subdivisions to the creation of districts with conservation,
  reclamation, and road powers and the inclusion of land in those
  districts has been complied with.
         (e)  All requirements of the constitution and laws of this
  state and the rules and procedures of the legislature with respect
  to the notice, introduction, and passage of this Act have been
  fulfilled and accomplished.
         SECTION 5.  EFFECTIVE DATE.  This Act takes effect
  immediately if it receives a vote of two-thirds of all the members
  elected to each house, as provided by Section 39, Article III, Texas
  Constitution.  If this Act does not receive the vote necessary for
  immediate effect, this Act takes effect September 1, 2009.