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.