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.