Bill Text: TX HB5359 | 2023-2024 | 88th Legislature | Engrossed

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Bill Title: Relating to the creation of the Williamson County Development District No. 1; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Engrossed - Dead) 2023-05-15 - Referred to Local Government [HB5359 Detail]

Download: Texas-2023-HB5359-Engrossed.html

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By: Bucy, Wilson, Harris of Williamson H.B. No. 5359

A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Williamson County Development
District No. 1; providing authority to issue bonds; providing
authority to impose assessments, fees, and taxes.
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 4006 to read as follows:
CHAPTER 4006. WILLIAMSON COUNTY DEVELOPMENT DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 4006.0101. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "County" means Williamson County.
(3) "Director" means a board member.
(4) "District" means the Williamson County
Development District No. 1.
Sec. 4006.0102. NATURE OF DISTRICT. The Williamson County
Development District No. 1 is a special district created under
Section 52, Article III, Texas Constitution, and has all the
rights, powers, privileges, authority, functions, and duties
provided by Chapter 383, Local Government Code.
Sec. 4006.0103. PURPOSE; DECLARATION OF INTENT. (a) The
creation of the district is essential to accomplish the purposes of
Sections 52 and 52-a, Article III, Texas Constitution, and other
public purposes stated in this chapter and Chapter 383, Local
Government Code.
(b) The district will serve the public purpose of developing
and diversifying the economy of the state and the district by
providing for the development of projects to attract visitors and
tourists and increase employment in the manner provided by Chapter
383, Local Government Code.
(c) By creating the district and in authorizing 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.
(d) 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. 4006.0104. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
(a) 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 this chapter.
(b) The district is created to serve a public use and
benefit.
(c) The creation of the district is in the public interest
and is essential to further the public purposes of:
(1) developing and diversifying the economy of the
state;
(2) eliminating unemployment and underemployment; and
(3) developing or expanding 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;
(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, and road
facilities for the district authorized by Section 52, Article III,
Texas Constitution.
(e) 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. 4006.0105. 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 revenue bond for the
purposes for which the district is created or to pay the principal
of and interest on the bonds;
(3) right to impose or collect an assessment; or
(4) legality or operation.
Sec. 4006.0106. 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. 4006.0107. CONSTRUCTION OF CHAPTER. This chapter
shall be liberally construed in conformity with the findings and
purposes stated in this chapter.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 4006.0201. GOVERNING BODY; TERMS. (a) Except in the
case of a conflict with this subchapter, Subchapter C, Chapter 383,
Local Government Code, applies to the district.
(b) The district is governed by a board of five directors
who serve staggered terms of four years with two or three directors'
terms expiring June 1 of each odd-numbered year.
Sec. 4006.0202. QUALIFICATIONS OF DIRECTOR. To be
qualified to serve as a director, a person must be:
(1) at least 21 years old;
(2) a resident of this state; and
(3) either:
(A) an owner of property in the district; or
(B) a qualified voter of the county.
Sec. 4006.0203. RECOMMENDATIONS FOR SUCCEEDING DIRECTORS.
(a) Before the expiration of a director's term or upon a vacancy,
the board shall submit to the commissioners court of the county the
name of a candidate to serve as a director.
(b) If the commissioners court determines that the
candidate is qualified under Section 4006.0202, the court shall
approve the candidate to serve on the board. If the commissioners
court determines that the candidate is not qualified under Section
4006.0202, the board shall submit an alternate candidate on the
request of the commissioners court.
Sec. 4006.0204. QUORUM. 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. 4006.0205. COMPENSATION. A director is entitled to
receive fees of office and reimbursement for actual expenses in the
manner provided by Section 49.060, Water Code. Sections 375.069
and 375.070, Local Government Code, do not apply to the board.
Sec. 4006.0206. INITIAL DIRECTORS; DISSOLUTION. (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 may submit a petition to the commissioners court of
the county requesting that the commissioners court appoint as
initial directors five persons named in the petition. The
commissioners court shall appoint as initial directors the persons
named in the petition.
(b) The initial directors shall determine by lot which three
positions expire June 1, 2025, and which two positions expire June
1, 2027.
(c) The district is considered to have been dissolved on
September 1, 2025, if initial directors are not appointed before
that date.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 4006.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created, including the rights, powers,
privileges, authority, functions, and duties provided by Chapter
383, Local Government Code, to county development districts.
Sec. 4006.0302. SPECIFIC POWERS AND DUTIES. The district's
rights, powers, privileges, authority, functions, and duties
include:
(1) utilizing funds, whether the funds are derived
from sales and use taxes, hotel occupancy taxes, assessments,
revenues from a project, or any other source, for payment of
projects or services in the manner authorized by Section 375.181,
Local Government Code, and Chapter 383, Local Government Code;
(2) entering into obligations, including lease
purchase agreements, certificates of participation in lease
purchase agreements, revenue bonds and notes, and other
interest-bearing obligations, in the manner specified in Sections
375.201-375.205, Local Government Code;
(3) exercising the rights, powers, and authority given
to a development corporation under Chapter 505, Local Government
Code, including the power to own, operate, acquire, construct,
lease, improve, or maintain a project described by that chapter;
(4) providing for public improvements described by
Section 372.003(b), Local Government Code; and
(5) exercising all of the rights, powers, and
authority granted to the district by this chapter, and all of the
rights, powers, and authority granted to the district by Chapter
383, Local Government Code, to finance, construct, or otherwise
acquire public improvements in the district, including the costs of
issuance of the obligations of the district.
Sec. 4006.0303. AGREEMENTS; GRANTS. (a) The district may
make an agreement with or accept a gift, grant, or loan from any
person.
(b) The implementation of a project is a governmental
function or service for the purposes of Chapter 791, Government
Code.
Sec. 4006.0304. LAW ENFORCEMENT SERVICES. To protect the
public interest, the district may contract with a qualified party,
including the county or a municipality, to provide law enforcement
services in the district for a fee.
Sec. 4006.0305. MEMBERSHIP IN CHARITABLE ORGANIZATIONS.
The district may join and pay dues to a charitable or nonprofit
organization that performs a service or provides an activity
consistent with the furtherance of a district purpose.
Sec. 4006.0306. ECONOMIC DEVELOPMENT PROGRAMS. (a) The
district may engage in activities that accomplish the economic
development purposes of the district.
(b) 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.
(c) The district may create economic development programs
and exercise the economic development powers provided to
municipalities by Chapter 380, Local Government Code.
Sec. 4006.0307. STRATEGIC PARTNERSHIP AGREEMENT. The
district may negotiate and enter into a written strategic
partnership agreement with a municipality under Section 43.0751,
Local Government Code.
Sec. 4006.0308. ROAD STANDARDS AND REQUIREMENTS. (a) A
road project must meet all applicable construction standards,
subdivision requirements, and regulations of the county in which
the road project is located.
(b) If the state will maintain and operate the road, the
Texas Transportation Commission must approve the plans and
specifications of the road project.
Sec. 4006.0309. NO AD VALOREM TAX. The district may not
impose an ad valorem tax.
Sec. 4006.0310. NO EMINENT DOMAIN. The district may not
exercise the power of eminent domain.
SUBCHAPTER D. PUBLIC PARKING FACILITIES
Sec. 4006.0401. PARKING FACILITIES AUTHORIZED; OPERATION
BY PRIVATE ENTITY. (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.
Sec. 4006.0402. RULES. The district may adopt rules
governing the district's parking facilities.
Sec. 4006.0403. FINANCING OF PARKING FACILITIES. (a) The
district may use any of its resources, including revenue,
assessments, sales and use taxes, hotel occupancy taxes, or grant
or contract proceeds, to pay the cost of acquiring or operating
parking facilities.
(b) The district may:
(1) set, charge, impose, and collect fees, charges, or
tolls for the use of the parking facilities; and
(2) issue revenue bonds or notes to finance the cost of
the parking facilities.
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
Sec. 4006.0501. DISBURSEMENTS AND TRANSFERS OF MONEY. The
board by resolution shall establish the number of director's
signatures and the procedure required for a disbursement or
transfer of the district's money.
Sec. 4006.0502. MONEY USED FOR IMPROVEMENTS OR SERVICES.
The district may acquire, construct, finance, operate, or maintain
an improvement or service authorized under this chapter or Chapter
383, Local Government Code, using any money available to the
district for that purpose.
Sec. 4006.0503. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
The board may impose and collect assessments in the manner
specified by Subchapter F, Chapter 375, Local Government Code, and
this section 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 a
taxing unit, as that term is defined by Section 1.04, Tax Code, 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. 4006.0504. UTILITY PROPERTY EXEMPT FROM ASSESSMENTS.
The district may not impose an 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. 4006.0505. AUTHORITY TO BORROW MONEY AND TO ISSUE
BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on
terms determined by the board. Section 375.205, Local Government
Code, does not apply to a loan, line of credit, or other borrowing
from a bank or financial institution secured by revenue.
(b) The district may, without an election, issue revenue
bonds, notes, or other obligations payable wholly or partly from
sales and use taxes, hotel occupancy taxes, assessments, revenue,
contract payments, grants, or other district money, or any
combination of those sources of money, to pay for any authorized
district purpose.
Sec. 4006.0506. CONSENT OF MUNICIPALITY NOT REQUIRED. The
board is not required to obtain consent to the creation of the
district or to the inclusion of land in the district from any
municipality in whose corporate limits or extraterritorial
jurisdiction the district is located before the board issues bonds.
SUBCHAPTER F. SALES AND USE TAX
Sec. 4006.0601. MEANINGS OF WORDS AND PHRASES. A word or
phrase used in this subchapter that is defined by Chapters 151 and
321, Tax Code, has the meaning assigned by Chapters 151 and 321, Tax
Code.
Sec. 4006.0602. 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, change, 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. 4006.0603. 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 call the election in the manner prescribed by Sections
383.031 and 383.032, Local Government Code.
(d) The ballots shall be printed to provide for voting for
or against the proposition: "Authorization of a sales and use tax in
the Williamson County Development District No. 1 at a rate not to
exceed ___ percent."
Sec. 4006.0604. ABOLISHING SALES AND USE TAX. (a) Except
as provided by 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.
Sec. 4006.0605. SALES AND USE TAX RATE. (a) On adoption of
the tax authorized by this subchapter, a tax is imposed on the
receipts from the sale at retail of taxable items in the district
and an excise tax is imposed on the use, storage, or other
consumption in the district of taxable items purchased, leased, or
rented from a retailer 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 the rate 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.
SUBCHAPTER G. HOTEL OCCUPANCY TAXES
Sec. 4006.0701. 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.
SECTION 2. The Williamson County Development District No. 1
initially includes all territory contained in the following area:
BEING a 148.88 acre tract of land situated in the Rachael Saul
Survey, Abstract Number 551 and the Thomas P. Davy Survey, Abstract
Number 169, in Williamson County, Texas, being all portion of the
tracts of land described as Tract One and Tract Two in the deed to
Pearson Ranch, LLC recorded in Document Number 2019122036, Official
Public Records of Williamson County, Texas, and a portion of
Pearson Ranch West, Phase 1, an addition in Williamson County,
Texas recorded in Document Number 2021146789, Official Public
Records of Williamson County, Texas, said 148.88 acre tract of land
being more particularly described as follows;
BEGINNING at a point in the north right-of-way line of North
State Highway 45W (a variable width right-of-way) being the common
south corner of said Pearson Ranch, LLC tract and a tract of land
described as Tract 1 in the deed to JME-JFE Limited Partnership
recorded in Document Number 2012056983, Official Public Records of
Williamson County, Texas;
THENCE South 68 degrees 25 minutes 02 seconds West, along the
north right-of-way line of North State Highway 45W, a distance of
95.48 feet to a point for corner;
THENCE South 22 degrees 12 minutes 41 seconds West,
continuing along the north right-of-way line of North State Highway
45W, a distance of 27.72 feet to a point for corner;
THENCE South 67 degrees 43 minutes 05 seconds West,
continuing along the north right-of-way line of North State Highway
45W, a distance of 1,426.94 feet to a point for corner;
THENCE South 65 degrees 14 minutes 23 seconds West,
continuing along the north right-of-way line of North State Highway
45W, a distance of 228.74 feet to a point for the beginning of a
circular curve to the right, having a radius of 2,844.79 feet and
whose chord bears South 66 degrees 13 minutes 40 seconds West, a
chord distance of 110.08 feet;
THENCE Southwesterly, continuing along the north
right-of-way line of North State Highway 45W and said circular
curve to the left, through a central angle of 02 degrees 13 minutes
02 seconds, an arc length of 110.09 feet to point for corner at the
end of said curve;
THENCE South 67 degrees 16 minutes 38 seconds West,
continuing along the north right-of-way line of North State Highway
45W, a distance of 12.96 feet to a point for corner;
THENCE South 67 degrees 32 minutes 33 seconds West,
continuing along the north right-of-way line of North State Highway
45W, a distance of 830.67 feet to point for corner;
THENCE South 68 degrees 18 minutes 17 seconds West,
continuing along the north right-of-way line of North State Highway
45W, a distance of 841.90 feet to point for corner in the north
right-of-way line of the Southern Pacific Railroad (100' wide);
THENCE North 69 degrees 12 minutes 37 seconds West, departing
the north right-of-way line of North State Highway 45W and along the
north right-of-way line of the Southern Pacific Railroad, a
distance of 545.04 feet to a point for corner;
THENCE North 00 degrees 07 minutes 59 seconds West, departing
the north right-of-way line of the Southern Pacific Railroad, a
distance of 275.22 feet to a point for corner;
THENCE North 00 degrees 09 minutes 50 seconds West, a
distance of 981.45 feet to a point for corner;
THENCE North 68 degrees 46 minutes 14 seconds East, a
distance of 1,549.15 feet to a point for corner;
THENCE North 68 degrees 50 minutes 57 seconds East, a
distance of 590.38 feet to a point for corner;
THENCE North 17 degrees 54 minutes 02 seconds West, a
distance of 1,320.44 feet to a point for corner;
THENCE North 68 degrees 59 minutes 52 seconds East, a
distance of 708.02 feet to a point for corner;
THENCE South 17 degrees 54 minutes 30 seconds East, a
distance of 1,137.92 feet to a point for corner;
THENCE North 84 degrees 50 minutes 51 seconds East, a
distance of 930.90 feet to a point for corner;
THENCE South 10 degrees 36 minutes 54 seconds East, a
distance of 674.79 feet to a point for corner;
THENCE South 10 degrees 40 minutes 16 seconds East, a
distance of 290.66 feet to a point for corner;
THENCE South 10 degrees 37 minutes 54 seconds East, a
distance of 417.94 feet to the POINT OF BEGINNING and CONTAINING a
computed area of 155.79 acres, or 6,786,298 square feet of land,
more or less.
SAVE AND EXCEPT that portion located within the municipality,
all of Lot 1, Block A, said Pearson Ranch West, Texas, Phase 1,
being 6.909 acres or 300,970 square feet LEAVING A NET ACREAGE of
148.88 acres or 6,485,328 square feet of land, more or less.
SECTION 3. (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.
(b) 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 4. 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, 2023.