89R14541 MCF-F

By: Virdell H.B. No. 5702

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Llano Historic Railroad Authority; providing authority to impose fees.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle D, Title 4, Special District Local Laws Code, is amended by adding Chapter 4502 to read as follows:

CHAPTER 4502. LLANO HISTORIC RAILROAD AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 4502.001. DEFINITIONS. In this chapter:

(1) "Authority" means the Llano Historic Railroad Authority.

(2) "Board" means the authority's board of directors.

(3) "City" means the City of Llano.

(4) "County" means Llano County.

(5) "Director" means a board member.

(6) "Historic railroad district" means the Austin & Northwestern Railroad Historic District listed in the National Register of Historic Places in Llano and Burnet Counties that includes a rail line between the city and the unincorporated community of Fairland.

Sec. 4502.002. CREATION AND NATURE OF AUTHORITY. The Llano Historic Railroad Authority is a special district created under Section 59, Article XVI, Texas Constitution, for the development of parks and recreational facilities.

Sec. 4502.003. PURPOSES OF AUTHORITY. (a) The authority is created to:

(1) maintain the physical infrastructure of the rail line in the historic railroad district and related facilities;

(2) restore and maintain the historic railroad district to the standards appropriate for a railroad listed in the National Register of Historic Places and the guidelines determined by the National Park Service;

(3) operate activities and facilities associated with the historic railroad district, including by:

(A) operating concessions;

(B) operating tourist excursions;

(C) conducting historic train tours; and

(D) providing educational programming;

(4) enhance, augment, and improve the historical, educational, and cultural benefits offered by the historic railroad district; and

(5) collaborate with local governments, historical societies, and private entities to promote the authority's operations.

(b) The creation of the authority is necessary to promote, develop, encourage, and maintain employment, commerce, transportation, tourism, recreation, the arts, entertainment, economic development, and public welfare in the county.

Sec. 4502.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The authority is created to serve a public use and benefit.

(b) The creation of the authority is in the public interest and is essential to:

(1) further the public purposes of development and diversification of the economy of the state;

(2) eliminate unemployment and underemployment; and

(3) develop and expand commerce, tourism, recreation, historical awareness, education, and the arts.

(c) The authority will:

(1) promote the health, safety, and general welfare of residents, employers, employees, visitors, and consumers in the county; and

(2) preserve, maintain, and enhance the economic health and vitality of the county.

(d) The authority may not act as the agent or instrumentality of any private interest, even though the authority will incidentally benefit many private interests in addition to the paramount public interest.

Sec. 4502.005. GENERAL WATER DISTRICT LAW NOT APPLICABLE. Chapter 49, Water Code, does not apply to the authority.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 4502.051. GOVERNING BODY; TERMS. (a) The authority is governed by a board composed of seven voting directors as follows:

(1) two directors appointed by the commissioners court of the county;

(2) two directors appointed by the governing body of the city; and

(3) three directors appointed by the other directors.

(b) Voting directors serve staggered three-year terms.

(c) The initial directors shall draw lots to determine which three initial directors serve an initial one-year term and which four initial directors serve an initial three-year term.

Sec. 4502.052. ELIGIBILITY. (a) To be qualified to serve as a director, a person must be at least 21 years of age.

(b) A voting director may not serve more than three consecutive terms.

(c) At least five of the seven voting directors must live in the county.

Sec. 4502.053. APPOINTMENT OF DIRECTORS. (a) Not later than August 31 of an appropriate year, by majority vote:

(1) the commissioners court of the county shall appoint as a voting director a person proposed by the county judge of the county to serve a term beginning on September 1 of that year; and

(2) the governing body of the city shall appoint as a voting director a person proposed by the mayor of the city to serve a term beginning on September 1 of that year.

(b) Not later than September 30 of an appropriate year, by majority vote, the directors appointed under Subsection (a) shall appoint a director to serve a term beginning on October 1 of that year.

Sec. 4502.054. NONVOTING DIRECTORS. (a) The following persons serve as nonvoting directors:

(1) the mayor of the city; and

(2) the county judge of the county.

(b) A nonvoting director is not counted in determining the board quorum.

Sec. 4502.055. VACANCIES. A board vacancy is filled in the same manner as the original appointment.

Sec. 4502.056. OFFICERS. (a) Each year, the board shall elect from among the voting directors officers for the authority, including a president, a vice president, a secretary, and a treasurer.

(b) The president and the vice president may not both be directors appointed under Section 4502.051(a)(3).

Sec. 4502.057. VOTING AUTHORITY OF PRESIDENT. The board president is a voting director but may vote only to break a tie. All other voting directors are entitled to one vote on any issue before the board.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 4502.101. GENERAL POWERS. The authority has the powers necessary to accomplish any authority purpose, including the purposes specified in Section 4502.003.

Sec. 4502.102. CONTRACTS. (a) The authority may contract with any person to manage or operate all or part of authority property.

(b) For an authority purpose, the authority may enter into a contract with a rapid transit authority created under Chapter 451, Transportation Code.

(c) This chapter does not authorize the invalidation or impairment of any contract or agreement entered into before September 1, 2025, related to a recreational or other use of the historic railroad district.

Sec. 4502.103. SALE OF ALCOHOLIC BEVERAGES ON AUTHORITY PROPERTY. The authority may contract with a person for the retail sale of alcoholic beverages and a person may sell alcoholic beverages at retail on authority property that is used as a station for passenger rail services if the person holds or obtains the appropriate permit or license authorizing the sale of the alcoholic beverages.

Sec. 4502.104. GENERAL PROPERTY POWERS. The authority may:

(1) acquire, own, lease, operate, construct, maintain, repair, improve, or extend improvements, equipment, or any other property necessary to accomplish an authority purpose; or

(2) lease or otherwise convey authority property to private parties for an authority purpose.

Sec. 4502.105. COMMUNITY ORGANIZATIONS. (a) The authority shall make its facilities available for use by community organizations, including:

(1) schools for educational field trips and programming;

(2) civic and charitable organizations for events, workshops, and tours; and

(3) nonprofit groups promoting arts, culture, and heritage.

(b) The authority may establish reasonable policies to ensure equitable access to facilities, including:

(1) a fee structure for cost recovery, which may include reduced or waived fees for nonprofit organizations or educational groups; and

(2) scheduling procedures to prioritize public benefit uses.

(c) The authority shall annually prepare and submit to the commissioners court of the county and the governing body of the city a report on community access activities. The report must include:

(1) the number and type of events hosted by the authority; and

(2) the amount of revenue generated by the authority and operating costs covered.

Sec. 4502.106. RAPID TRANSIT AUTHORITY. A rapid transit authority may collaborate with the Llano Historic Railroad Authority to:

(1) seek and apply for or provide funding for the restoration of the historic railroad district;

(2) provide technical assistance and other resources to support grant applications and collaborative funding initiatives related to the restoration of the historic railroad district;

(3) restore the historic railroad district as part of a broader economic development strategy for the region in which the rapid transit authority operates; and

(4) ensure that restoration efforts in the historic railroad district are undertaken in a manner consistent with contracts or agreements of the rapid transit authority entered into with persons other than the Llano Historic Railroad Authority.

Sec. 4502.107. AUTHORITY TO SUE AND BE SUED; IMMUNITY. (a) The authority may sue and be sued in this state.

(b) This section does not waive any governmental immunity that would otherwise apply to the authority.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 4502.151. AD VALOREM TAXES PROHIBITED. The authority may not impose an ad valorem tax.

Sec. 4502.152. APPROPRIATIONS; GRANTS; DONATIONS. (a) The legislature may appropriate money to the authority to fund the authority's activities under this chapter.

(b) The authority may accept grants and donations, including property, for any authority purpose.

Sec. 4502.153. REVENUE. The authority may generate revenue through:

(1) ticket sales for train tours;

(2) facility rental fees;

(3) concessions; and

(4) retail sale of souvenirs and educational materials.

Sec. 4502.154. GRANTS FROM OTHER TAXING AUTHORITY. (a) A taxing authority in the county may by contract grant to the authority local hotel occupancy tax revenue received from a hotel located in the county.

(b) The grant must serve a public purpose of the taxing authority making the grant.

SUBCHAPTER E. DISSOLUTION

Sec. 4502.201. DISSOLUTION OF AUTHORITY; OUTSTANDING DEBT. (a) The board may dissolve the authority regardless of whether the authority has debt.

(b) If the authority has debt when it is dissolved, the authority shall remain in existence solely for the purpose of discharging its debts. The dissolution is effective when all debts have been discharged.

SECTION 2. (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) 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 3. This Act takes effect September 1, 2025.