81R16267 KJM-F
 
  By: Wentworth S.B. No. 2545
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of Austin Desired Development Zone
  District No. 1; providing authority to levy an assessment, impose
  taxes, and issue bonds; 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 3862 to read as follows:
  CHAPTER 3862. AUSTIN DESIRED DEVELOPMENT ZONE DISTRICT NO. 1
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 3862.001.  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. 1.
         Sec. 3862.002. NATURE OF DISTRICT. The district is a special
  district created under Section 59, Article XVI, Texas Constitution.
         Sec. 3862.003.  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. 3862.004.  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, employees, potential 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;
               (3)  promote the health, safety, welfare, and enjoyment
  of the public by providing pedestrian ways and 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. 3862.005.  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. 3862.006.  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. 3862.007.  APPLICABILITY OF MUNICIPAL MANAGEMENT
  DISTRICTS LAW. Except as otherwise provided by this chapter,
  Chapter 375, Local Government Code, applies to the district.
         Sec. 3862.008.  LIBERAL CONSTRUCTION OF CHAPTER. This
  chapter shall be liberally construed in conformity with the
  findings and purposes stated in this chapter.
         Sec. 3862.009.  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. 3862.010.  CONSENT OF MUNICIPALITY REQUIRED. (a) The
  temporary directors may not hold an election under Section 3862.009
  until the city and each other municipality in whose corporate
  limits or extraterritorial jurisdiction the district is located has
  consented by ordinance or resolution to the creation of the
  district and to the inclusion of land in the district.
         (b)  The city and each other municipality may condition its
  consent to the creation of the district, the inclusion of land in
  the district, and the exercise or limitation of powers granted to
  the district under this chapter on a requirement that the
  municipality and the owner of land included in the district
  negotiate and enter into a written agreement under this chapter and
  Sections 43.0563 and 212.172, Local Government Code.
         (c)  An agreement described by Subsection (b) between a
  municipality and a landowner entered into before the effective date
  of this chapter and that complies with this section is validated on
  the effective date of this Act.
         (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 a municipality's consent to the creation
  of the district under Section 42.042, Local Government Code.
  [Sections 3862.011-3862.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 3862.051.  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 Section
  3862.053.
         (b)  Except as provided by Section 3862.052, directors serve
  staggered four-year terms, with two elected directors' terms and
  one or two appointed directors' terms expiring on June 1 of each
  even-numbered year. The term of office for each director first
  appointed under Section 3862.053 shall begin on the date the four
  permanent directors are elected under Section 3862.009.  The
  initial directors shall determine their terms as provided by
  Section 49.102(h), Water Code.
         Sec. 3862.052.  TEMPORARY DIRECTORS. (a)  On or after the
  effective date of the Act enacting 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 3862.009; 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 3862.009 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 permanent directors are elected under
  Section 3862.009; 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 Texas Commission on
  Environmental Quality 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. 3862.053.  APPOINTMENT OF DIRECTORS. (a) The city
  council of the city shall appoint one person as a director. A
  person is appointed if a majority of the members of the city council
  vote to appoint that person.  If a person is not appointed to the
  board under Subsection (c), the members of the city council may vote
  to appoint a second person as a director.
         (b)  The county commissioners court shall appoint one person
  as a 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 as director one person nominated by the board. The board
  shall request a name of a nominee for the director position 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 submit to the Texas Commission
  on Environmental Quality the 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 any names of potential
  nominees before the 31st day after the date the board requests that
  names be submitted, 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. 3862.054.  QUALIFICATIONS OF DIRECTOR. (a) To be
  qualified to be elected and to serve as an elected director, or to
  be qualified to be appointed and to serve as a director appointed
  under Section 3862.053(c), 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)  To be qualified to be appointed and to serve as a
  director appointed under Section 3862.052 or  3862.053(a) or (b), a
  person 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. 3862.055.  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 3862.053 shall be
  filled for the unexpired term in the same manner as the original
  appointment under that section.
         Sec. 3862.056.  QUORUM; VOTING REQUIREMENT. (a) 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 imposition
  of assessments, the imposition of taxes, the imposition of impact
  fees, or the issuance of bonds.
         (b)  For purposes of determining the requirements for a
  quorum of the board, 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. 3862.057.  COMPENSATION. A director is entitled to
  receive fees of office and reimbursement for actual expenses as
  provided by Section 49.060, Water Code.
  [Sections 3862.058-3862.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 3862.101.  GENERAL POWERS AND DUTIES. The district has
  the powers and duties:
               (1)  provided by 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)  provided by 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:
                     (A)  macadamized, graveled, or paved roads; or
                     (B)  improvements, including storm drainage, in
  aid of those roads;
               (3)  that Subchapter A, Chapter 372, Local Government
  Code, provides to a municipality or a county;
               (4)  that Chapter 375, Local Government Code, provides
  to a municipality;
               (5)  that Chapter 380, Local Government Code, provides
  to a municipality;
               (6)  that Chapter 394, Local Government Code, provides
  to a housing finance corporation created and operating under that
  chapter;
               (7)  that Subchapter C, Chapter 402, Local Government
  Code, provides to a municipality; and
               (8)  that Chapters 501, 502, and 505, Local Government
  Code, provide to a municipality or to a Type A or B corporation
  created by a municipality.
         Sec. 3862.102.  AGREEMENTS; GRANTS. (a) The district may
  make an agreement with or accept a gift, grant, or loan from any
  person.
         (b)  A service agreement made by the district shall be
  terminable at will and without penalty on 30 days' notice of
  termination, unless the district secures the written consent of the
  city to modify or exclude those termination provisions, except for
  service agreements with the following persons or entities:
               (1)  a developer of property in 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.
         (c)  The implementation of a project is a governmental
  function or service for the purposes of Chapter 791, Government
  Code.
         (d)  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. 3862.103.  AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT
  AND FIREFIGHTING 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 firefighting services under
  Section 49.351, Water Code, and has the powers and duties of a
  municipality under Section 775.022, Health and Safety Code.
         Sec. 3862.104.  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. 3862.105.  STRATEGIC PARTNERSHIP AGREEMENT. The
  district may negotiate and enter into a written strategic
  partnership with the city 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 and the district under this section.
         Sec. 3862.106.  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. 3862.107.  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. 3862.108.  SUITS.  The district may 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 3862.109-3862.150 reserved for expansion]
  SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES
         Sec. 3862.151.  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. 3862.152.  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 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. 3862.153.  RULES. The district may adopt rules
  covering its public transit system or its parking facilities.
         Sec. 3862.154.  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 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 parking
  facilities; and
               (2)  issue bonds or notes to finance the cost of these
  facilities.
  [Sections 3862.155-3862.200 reserved for expansion]
  SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
         Sec. 3862.201.  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. 3862.202.  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. 3862.203.  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 real property in
  the district subject to assessment according to the most recent
  certified tax appraisal roll for the county.
         Sec. 3862.204.  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. 3862.205.  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. 3862.206.  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. 3862.207.  RESIDENTIAL PROPERTY. Section 375.161,
  Local Government Code, does not apply to the district.
         Sec. 3862.208.  OPERATION AND MAINTENANCE TAX. (a) If
  authorized at an election held in accordance with Section 3862.213,
  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. 3862.209.  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. 3862.210.  AUTHORITY TO ISSUE BONDS. (a) The district
  by competitive bid may issue bonds, notes, or other obligations
  payable wholly or partly from ad valorem 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 provided by Section 49.4645,
  Water Code, does not apply to the district.
         Sec. 3862.211.  CITY APPROVAL OF DISTRICT BONDS. (a) Not
  later than the 30th day before the first publication of notice of
  the sale of a district bond, the district shall provide to the city,
  as applicable:
               (1)  a copy of the district's application to the Texas
  Commission on Environmental Quality for approval of the bond sale;
               (2)  a copy of the staff memorandum from the Texas
  Commission on Environmental Quality approving the projects and the
  bonds;
               (3)  the proposed bond resolution;
               (4)  the preliminary official statement for the bond
  sale;
               (5)  the bid form; and
               (6)  the notice of sale.
         (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 between the district and the city under Sections
  3862.010 and 3862.105, 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) not later than the 15th day
  after the city receives the information provided under Subsection
  (a), or the bond sale shall be considered to be approved by the
  city.
         (d)  The district may not issue or sell a bond that the city
  has timely refused to approve under this section.
         Sec. 3862.212.  TAXES FOR BONDS. At the time the district
  issues bonds or other obligations payable wholly or partly from ad
  valorem taxes, the board shall provide for the annual imposition of
  a continuing direct ad valorem tax, without limit as to rate or
  amount, 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. 3862.213.  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 3862.209.
         (b)  The district must hold an election in the manner
  provided by Subchapter L, Chapter 375, Local Government Code, to
  obtain voter approval before the district may impose an ad valorem
  tax or sales and use tax or issue 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 that
  may be acquired by a district by the issuance of district 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. 3862.214.  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. 3862.215.  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 that section existed on January 1, 2009.
         Sec. 3862.216.  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. 3862.217.  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 3862.218-3862.300 reserved for expansion]
  SUBCHAPTER F. SALES AND USE TAX
         Sec. 3862.301.  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. 3862.302.  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. 3862.303.  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
  hold the election in the manner prescribed by Section 3862.213.
         (d)  The ballots shall be printed to provide for voting for
  or against the proposition: "Authorization of a sales and use tax
  in the Austin Desired Development Zone Management District No. 1 at
  a rate not to exceed _____ percent."
         Sec. 3862.304.  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. 3862.305.  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 in the district
  and an excise tax on the use, storage, or other consumption in the
  district of taxable items purchased, leased, or rented from a
  retailer in 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 3862.306-3862.350 reserved for expansion]
  SUBCHAPTER G. HOTEL OCCUPANCY TAXES
         Sec. 3862.351.  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 use
  the revenue from the tax for any district purpose that is 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 3862.352-3862.400 reserved for expansion]
  SUBCHAPTER H. DISSOLUTION
         Sec. 3862.401.  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 unless
  all of the district's outstanding debts 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 an agreement between
  the landowner and the city under Section 3862.010.
         (d)  Sections 43.075 and 43.0715, Local Government Code, do
  not apply to the district.
         SECTION 2.  Austin Desired Development Zone District No. 1
  includes all territory contained in the following area:
         A DESCRIPTION OF 326.322 ACRES IN THE SANTIAGO DEL VALLE
  GRANT, THE GUILLERMO NUNEZ SURVEY NO. 502, AND THE BARBARA LOPEZ Y
  MIRELEZ SURVEY NO. 503, IN TRAVIS COUNTY, TEXAS, BEING ALL OF A
  25.304 ACRE TRACT DESCRIBED IN A SPECIAL WARRANTY DEED TO JONA
  ACQUISITION INC., DATED JULY 23, 2008 AND RECORDED IN DOCUMENT NO.
  2008124712 OF THE OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS,
  A PORTION OF A 138.540 ACRE TRACT DESCRIBED IN A GENERAL WARRANTY
  DEED TO JONA ACQUISITION INC., DATED MARCH 2, 2007 AND RECORDED IN
  DOCUMENT NO. 2007038642 OF THE OFFICIAL PUBLIC RECORDS OF TRAVIS
  COUNTY, TEXAS, A PORTION OF A 20.807 ACRE TRACT DESCRIBED AS EXHIBIT
  A-2 IN A SPECIAL WARRANTY DEED TO JONA ACQUISITION INC., DATED
  JANUARY 3, 2007 AND RECORDED IN DOCUMENT NO. 2007003159 OF THE
  OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS, A PORTION OF A
  81.018 ACRE TRACT DESCRIBED IN A SPECIAL WARRANTY DEED TO JONA
  ACQUISITION INC., DATED DECEMBER 12, 2006 AND RECORDED IN DOCUMENT
  NO. 2006246454 OF THE OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY,
  TEXAS, A PORTION OF A 103.415 ACRE TRACT DESCRIBED IN A SPECIAL
  WARRANTY DEED TO JONA ACQUISITION INC., DATED NOVEMBER 20, 2006 AND
  RECORDED IN DOCUMENT NO. 2006224021 OF THE OFFICIAL PUBLIC RECORDS
  OF TRAVIS COUNTY, TEXAS, ALL OF A 152.571 ACRE TRACT DESCRIBED IN A
  SPECIAL WARRANTY DEED TO JONA ACQUISITION INC., DATED NOVEMBER 2,
  2006 AND RECORDED IN DOCUMENT NO. 2006214522 OF THE OFFICIAL PUBLIC
  RECORDS OF TRAVIS COUNTY, TEXAS, A ALL OF A 59.027 ACRE TRACT
  DESCRIBED IN A GENERAL WARRANTY DEED TO JONA ACQUISITION INC.,
  DATED MARCH 2, 2007 AND RECORDED IN DOCUMENT NO. 2007038634 OF THE
  OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS, AND A PORTION OF
  F.M. 1625, A FARM TO MARKET ROAD IN TRAVIS COUNTY, TEXAS HAVING A
  RIGHT-OF-WAY WIDTH OF 80 FEET; SAID 326.322 ACRE TRACT BEING MORE
  PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:
         BEGINNING at a 1/2" rebar with "Chaparral Boundary" cap found
  in the west right-of-way line of U.S. Highway 183 (right-of-way
  width varies) for the northeast corner of said 25.304 acre tract,
  same being the southeast corner of Lot 14, South 183 Park, a
  subdivision of record in Volume 78, Page 253 of the Plat Records of
  Travis County, Texas;
         THENCE with the west right-of-way line of U.S. Highway 183,
  same being the east line of said 25.304 acre tract, with a curve to
  the left, having a radius of 5779.84 feet, a delta angle of 3°25'57",
  an arc length of 346.27 feet, and a chord which bears South 06°47'27"
  West, a distance of 346.22 feet to a 1/2" rebar with "Chaparral
  Boundary" cap found in the west right-of-way line of F.M. 1625 (80'
  right-of-way) for an angle point in the east line of said 25.304
  acre tract;
         THENCE South 27°05'32" West, with the west right-of-way line
  of F.M. 1625, same being the east line of said 25.304 acre tract, a
  distance of 312.55 feet to a 1/2" rebar with "Chaparral Boundary"
  cap found for an angle point, same being the north corner of a 0.017
  acre tract described in a right-of-way deed of record in Volume
  1278, Page 455 of the Deed Records of Travis County, Texas;
         THENCE South 32°22'56" West, with the east line of said 25.304
  acre tract, same being the west right-of-way line of F.M. 1625, also
  being the west line of said 0.017 acre tract, a distance of 105.03
  feet to a Mag nail with "Chaparral Boundary" washer found at the
  southeast corner of said 25.304 acre tract, same being the
  northeast corner of said 138.540 acre tract, also being the
  southwest corner of said 0.017 acre tract;
         THENCE with the west right-of-way line of F.M. 1625, same
  being the southeast line of said 138.540 acre tract, the following
  two (2) courses and distances:
         1.  South 32°22'56" West, a distance of 3.43 feet to a
  concrete highway monument found;
         2.  South 27°05'32" West, a distance of 432.46 feet to a
  calculated point for a south corner of said 138.540 acre tract, same
  being the east corner of a 1.10 acre tract described in a deed of
  record in Volume 12586, Page 40 of the Real Property Records of
  Travis County, Texas, from which a 1/2" rebar found bears South
  52°47'09" East, a distance of 0.55 feet;
         THENCE North 52°47'09" West, with the south line of said
  138.540 acre tract, same being the northeast line of said 1.10 acre
  tract and the northeast line of a 1 acre tract described in a deed of
  record in Volume 5869, Page 1058 of the Deed Records of Travis
  County, Texas, a total distance of 427.83 feet to a 1/2" rebar with
  "Chaparral Boundary" cap found at the northernmost corner of said 1
  acre tract;
         THENCE South 30°00'39" West, continuing with the south line of
  said 138.540 acre tract, same being the northwest line of said 1
  acre tract, a distance of 250.26 feet to a 1/2" rebar found for the
  westernmost corner of said 1 acre tract, same being an angle point
  in the northeast line of said 20.807 acre tract;
         THENCE South 53°08'58" East, with the north line of said
  20.807 acre tract, same being the south line of said 1 acre tract
  and the south line of said 1.10 acre tract, a distance of 440.29
  feet to a 1/2" rebar with "Chaparral Boundary" cap found in the west
  right-of-way line of F.M. 1625, for the northeast corner of said
  20.807 acre tract, same being the southeast corner of said 1.10 acre
  tract;
         THENCE with the west right-of-way line of F.M. 1625, same
  being the east line of said 20.807 acre tract, the following three
  (3) courses and distances:
         1.  South 27°05'32" West, a distance of 28.03 feet to a 1/2"
  rebar with "Chaparral Boundary" cap found;
         2.  South 26°41'32" West, a distance of 410.29 feet to a
  concrete highway monument found;
         3.  South 27°11'23" West, a distance of 393.37 feet to a
  calculated point in the north right-of-way line of Colton Bluff
  Springs Road (apparent right-of-way width varies), for the
  southeast corner of said 20.807 acre tract, from which a 1/2" rebar
  found bears North 61°15'38" West, a distance of 0.36 feet;
         THENCE South 62°48'37" East, departing the north right-of-way
  line of Colton Bluff Springs Road, same being the west right-of-way
  line of F.M. 1625, crossing F.M. 1625, at a distance of 80.00 feet
  to a calculated point in the east right-of-way line of F.M. 1625,
  same being the west line of said 59.027 acre tract;
         THENCE North 27°11'23" East, with the east right-of-way line
  of F.M. 1625, same being the west line of said 59.027 acre tract, a
  distance of 12.84 feet to a 1/2" rebar with "Chaparral Boundary" cap
  found for the northwest corner of said 59.027 acre tract, same being
  in the east right-of-way line of F.M. 1625, being also in the south
  right-of-way line of McKenzie Road (60' right-of-way width);
         THENCE with the north line of the 59.027 acre tract, same
  being the south right-of-way line of McKenzie Road, the following
  two (2) courses and distances:
         1.  South 62°41'20" East, a distance of 908.70 feet to a 1"
  iron pipe found;
         2.  South 33°59'03" East, at a distance of 170.08 feet passing
  a concrete highway monument found, and continuing for a total
  distance of 171.70 feet to a 1/2" rebar with plastic "Chaparral
  Boundary" cap found in the west right-of-way line of U.S. Highway
  183, from which another concrete highway monument found bears South
  57°18'03" East, a distance of 126.01 feet;
         THENCE South 4°10'14" East, with the west right-of-way line of
  U.S. Highway 183, at a distance of 1888.95 feet passing a 1/2" rebar
  with plastic "Chaparral Boundary" cap found, at the southeast
  corner of said 59.027 acre tract, same being the northeast corner of
  said 152.571 acre tract, and continuing with the east line of said
  152.571 acre tract, same being the west right-of-way line of U.S.
  Highway 183, for a total distance of 4697.45 feet to a 5/8" rebar
  found at the southeast corner of said 152.571 acre tract, same being
  the northeast corner of a 9.87 acre tract described in a deed of
  record in Document No. 1999103744 of the Official Public Records of
  Travis County, Texas, also being in the west right-of-way line of
  U.S. Highway 183 (100' right-of-way width);
         THENCE North 62°43'22" West, with the south line of said
  152.571 acre tract, same being the north lines of said 9.87 acre
  tract, a 19.73 acre tract described in a deed of record in Volume
  4054, Page 1326 of the Deed Records of Travis County, Texas, a 3.00
  acre tract described in a deed of record in Volume 3978, Page 1205
  of the Deed Records of Travis County, Texas, and a 1.00 acre tract
  described in a deed of record in Volume 2100, Page 268 of the Deed
  Records of Travis County, Texas, a distance of 3498.94 feet to a
  1/2" rebar with plastic "Chaparral Boundary" cap found at the
  southwest corner of said 152.571 acre tract, same being the
  northwest corner of said 1.00 acre tract, also being in the
  established east right-of-way line of F.M. 1625;
         THENCE North 62°43'22" West, departing the east right-of-way
  line of F.M. 1625, crossing F.M. 1625, at a distance of 80.00 feet
  to a calculated point in the west right-of-way line of F.M. 1625,
  same being the east line of a 167.748 acre tract of land described
  in Document No. 2006241307 of the Official Public Records of Travis
  County, Texas;
         THENCE North 27°05'45" East, with the west right-of-way line
  of F.M. 1625, same being the east line of said 167.748 acres tract,
  the east line of a 0.1291 acre tract described in a deed of record
  under Document No. 2001163489 of the Official Public Records of
  Travis County, Texas, and the east line of said 103.415 acre tract,
  a distance of 1721.97 feet to a calculated point;
         THENCE crossing the said 167.748 acres tract, said 103.415
  acre tract, said 81.018 acre tract, said 20.807 acre tract, said
  138.540 acre tract, F.M. 1625, and Colton Bluff Springs Road the
  following eleven (11) courses and distances:
         1.  North 62°55'18" West, a distance of 582.76 feet to a
  calculated point;
         2.  North 27°04'42" East, a distance of 1111.80 feet to a
  calculated point;
         3.  South 62°55'18" East, a distance of 587.80 feet to a
  calculated point;
         4.  North 27°11'27" West, a distance of 173.86 feet to a
  calculated point for a point of curvature to the left;
         5.  Following said curve to the left, having a radius of
  1450.01 feet, a delta angle of 48°32'03", an arc length of 1228.27
  feet, and a chord which bears North 02°55'25" East, a distance of
  1191.88 feet to a calculated point;
         6.  North 21°20'36" West, a distance of 811.55 feet to a
  calculated point for a point of curvature to the right;
         7.  Following said curve to the left, having a radius of
  500.00 feet, a delta angle of 41°14'06", an arc length of 359.84
  feet, and a chord which bears North 00°43'33" West, a distance of
  352.13 feet to a calculated point;
         8.  North 19°53'30" East, a distance of 342.27 feet to a
  calculated point for a point of curvature to the right;
         9.  Following said curve to the right, having a radius of
  2003.01 feet, a delta angle of 22°31'58", an arc length of 787.73
  feet, and a chord which bears North 58°50'31" West, a distance of
  782.66 feet to a calculated point;
         10.  North 47°34'32" West, a distance of 43.08 feet to a
  calculated point;
         11.  North 27°06'47" East, a distance of 3.11 feet to a 1/2"
  iron pipe found for an angle point in the north line of said 138.540
  acre tract, same being the southeast corner of a 380.080 acre tract
  described in a deed of record in Volume 12791, Page 11 of the Real
  Property Records of Travis County, Texas;
         THENCE with the common line of said 138.540 acre tract and
  said 380.080 acre tract, the following two (2) courses and
  distances:
         1.  North 27°06'47" East, a distance of 851.48 feet to a 3/4"
  iron pipe found;
         2.  North 29°08'56" East, a distance of 229.98 feet to a 1/2"
  iron pipe found at the southwest corner of said 25.304 acre tract;
         THENCE North 26°45'01" East, with the west line of said 25.304
  acre tract, same being the east line of said 380.080 acre tract, a
  distance of 430.74 feet to a 1/2" rebar found at the northwest
  corner of said 25.304 acre tract, same being the southwest corner of
  Lot 8, South 183 Park, a subdivision of record in Volume 78, Page
  253 of the Plat Records of Travis County, Texas;
         THENCE South 48°05'10" East, with the north line of said
  25.304 acre tract, same being the south line of Lots 8 through 14
  inclusive of said South 183 Park, at a distance of 2072.23 feet to
  POINT OF BEGINNING, containing 326.322 acres of land, more or less.
         SECTION 3.  (a) The legislature finds that the development
  or redevelopment in the area in the proposed Austin Desired
  Development Zone District No. 1 would not occur solely through
  private investment in the reasonably foreseeable future.
         (b)  The legislature further finds that the area in the
  proposed Austin Desired Development Zone District No. 1 is
  unproductive and underdeveloped and that the conditions
  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.  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.