Texas 2023 88th Regular

Texas House Bill HB5359 Introduced / Bill

Filed 04/10/2023

                    By: Bucy H.B. No. 5359


 A BILL TO BE ENTITLED
 AN ACT
 relating to the approval and creation of the Williamson County
 Development District No. 1; and to the administration, powers,
 duties, operation, and financing of the district, including the
 authority to impose an assessment, a tax, and issue bonds.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  LEGISLATIVE FINDINGS.(a) The legislature finds
 that the creation of Williamson County Development District No. 1
 (the "district") will serve the public purpose of promoting
 economic activity and employment and attracting visitors in the
 manner contemplated by Section 52-a, Article III Constitution and
 Chapter 383, Local Government Code.
 (b)  The legislature further finds that economic development
 is an essential function and purpose of the district.
 (c)  All of the land or public improvements within the
 district will be benefited by the works and projects that are to be
 achieved by the district are essential to accomplish the purposes
 of Sections 52-a and 52, Article III, and Section 59, Article XVI,
 Texas Constitution and other public purposes stated in this Act.
 The district services a public use and benefit.
 (d)  A legislative finding made under this Act is conclusive
 and the district is not required to offer proof of the purpose of
 results before exercising a power granted by this Act.
 SECTION 2.  Subtitle C, Title 4, Special District Local Laws
 Code, is amended by adding Chapter 3990 to read as follows:
 CHAPTER 3990. WILLIAMSON COUNTY DEVELOPMENT DISTRICT NO. 1
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 3990.001.  DEFINITIONS. In this chapter:
 (1)  "board" means the district's board of directors.
 (2)  "county" means Williamson County.
 (2)  "director" means a board member.
 (3)  "district" means the Williamson County
 Development District No. 1.
 Sec. 3990.002.  NATURE OF DISTRICT. The Williamson County
 Development District No. 1 is created as a county development
 district with all the rights, powers, privileges, authority,
 functions and duties provided by Chapter 383, Local Government
 Code.
 Sec. 3990.003.  PURPOSE; DECLARATION OF INTENT. (a) The
 principal function of the district is to provide for and facilitate
 economic development, increase employment and to attract visitors
 to Williamson County. 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 Williamson 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. 3990.004.  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 this chapter.
 (c)  The creation of the district is in the public interest
 and is essential to:
 (1)  further the public purposes of developing and
 diversifying the economy of the state;
 (2)  eliminate unemployment and underemployment; and
 (3)  develop or expand transportation and commerce.
 (d)  The district will:
 (1)  promote the health, safety, and general welfare of
 residents, employers, potential employees, employees, visitors,
 and consumers in the district, and of the public;
 (2)  provide needed funding for the district to
 preserve, maintain, and enhance the economic health and vitality of
 the district territory as a community and business center; and
 (3)  promote the health, safety, welfare, and enjoyment
 of the public by providing pedestrian ways and by landscaping and
 developing certain areas in the district, which are necessary for
 the restoration, preservation, and enhancement of scenic beauty.
 (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. 3990.005.  DISTRICT TERRITORY. (a) The district is
 composed of the territory described by Section 3 of the Act enacting
 this chapter.
 (b)  The boundaries and field notes contained in Section 3 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. 3990.006.  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. 3990.007.  APPLICABILITY OF MUNICIPAL MANAGEMENT
 DISTRICTS LAW. Except as otherwise provided by this chapter,
 Chapter 375, Local Government Code, applies to the district.
 Sec. 3990.008.  LIBERAL CONSTRUCTION OF CHAPTER. This
 chapter shall be liberally construed in conformity with the
 findings and purposes stated in this chapter.
 [Sections 3990.009-3990.050 reserved for expansion]
 SUBCHAPTER B. BOARD OF DIRECTORS
 Sec. 3990.051.  GOVERNING BODY; TERMS. 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. 3990.052.  INITIAL DIRECTORS. (a) The initial
 directors shall be: 1.  [NAME]
 2.  [NAME]
 3.  [NAME]
 4.  [NAME]
 5.  [NAME]
 (b)  Of the initial directors, the terms of directors
 appointed for positions 1 through 3 expire June 1, 2025, and the
 terms of directors appointed for positions 4 and 5 expire June 1,
 2027.
 (c)  Prior to the expiration of a director's term or upon a
 vacancy, the board of directors shall present the name of a
 qualified candidate to the county commissioners court. If the
 commissioners find the candidate to be qualified, the candidate
 shall be named to the board of directors. If the commissioners court
 does not find the candidate to be qualified, the court shall notify
 the board of directors to submit an alternate candidate.
 Sec 3990.053. QUALIFICATIONS OF DIRECTOR. (a) To be qualified
 to serve as a director, a person must be at least 21 years of age, a
 resident citizen of the state, and either a qualified voter of the
 county or a property owner in the district.
 Sec. 3990.054  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. 3990.055.  COMPENSATION. A director is entitled to
 receive fees of office and reimbursement for actual expenses as
 provided by Section 49.060, Water Code. Sections 375.069 and
 375.070, Local Government Code, do not apply to the board.
 [Sections 3990.056-3990.99 reserved for expansion]
 SUBCHAPTER C. POWERS AND DUTIES
 Sec. 3990.100.  DISTRICT POWERS. (a) The district has all of
 the rights, powers, privileges, authority, functions, and duties
 provided by Chapters 375 and 383, Local Government Code, to county
 development districts and municipal management districts and by
 Chapters 49 and 54, Water Code, to municipal utility districts.
 (b)  The district's rights, powers, privileges, authority,
 functions, and duties include, but are not limited to:
 (1)  all of the rights, powers, privileges, authority,
 functions, and duties provided by Chapters 49 and 54, Water Code, to
 municipal utility districts, except that the district may not
 provide utility services;
 (2)  the authority, after approval by voters at an
 election conducted within the boundaries of the district, to levy,
 assess and collect taxes for maintenance and operating purposes in
 the manner set forth in Sections 49.107(a)-(e), Water Code, and for
 the repayment of bonds, notes, warrants, lease purchase agreements,
 certificates of assessment, certificates of participation in lease
 purchase agreements, and other interest bearing obligations in the
 manner set forth in Sections 49.106(a)-(d), Water Code, and for all
 of the purposes for which the district may expend funds;
 (3)  to establish, levy and collect special assessments
 in the manner specified in Sections 375.111-.124, Local Government
 Code;
 (4)  to utilize funds, whether the funds are derived
 from ad valorem taxes, sales and use taxes, hotel occupancy taxes,
 assessments, revenues from the project, or any other sources for
 the payment of projects or services in the manner authorized by
 Section 375.181, Local Government Code, Chapter 383, Local
 Government Code, and Chapter 54, Water Code;
 (5)  to enter into obligations, including by not
 limited to, lease purchase agreements, certificates of
 participation, general obligation bonds and notes, revenue bonds
 and notes, and combination general obligation and revenue bonds and
 notes, and other interest bearing obligations, in the manner
 specified in Sections 375.201-375.205, Local Government Code;
 (6)  to exercise all of the rights, powers, and
 authority of a road district, a municipal management district, a
 municipal utility district and a water control and improvement
 district which are not specifically contradicted by Chapter 383,
 Local Government Code;
 (7)  to exercise 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;
 (8)  to provide for public improvements as described in
 Section 372.003(b), Texas Local Government Code.
 (9)  to exercise all of the rights, powers, and
 authority granted to the district by this Act, all of the rights,
 powers, and authority granted to the district by Chapters 383 and
 375, Local Government Code, and to a municipal utility district by
 Chapters 49 and 54, Water Code, which are not contrary to this Act,
 to finance, construct or acquire public improvements in the
 district, including costs of issuance of obligations of the
 district.
 (10)  except as provided by Sec. [  ].107, to adopt the
 powers of a road district under Section 52(b)(3), Article III,
 Texas Constitution, in the manner specified in Sections 53.029(c)
 and (d), Water Code
 Sec. 3990.102.  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. 3990.103.  AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT
 SERVICES. To protect the public interest, the district may
 contract with a qualified person, including the County or a
 municipality, for the provision of law enforcement services in the
 district for a fee.
 Sec. 3990.104.  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. 3990.105.  ECONOMIC DEVELOPMENT PROGRAMS. (a) 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.
 (b)  The district has all of the powers of a municipality
 under Chapter 380, Local Government Code.
 Sec. 3990.106.  STRATEGIC PARTNERSHIP AGREEMENT. The
 district may negotiate and enter into a written strategic
 partnership with a municipality under Section 43.0751, Local
 Government Code.
 Sec. 3990.107.  ROAD STANDARDS. (a) A road project must meet
 all applicable construction standards, zoning and subdivision
 requirements, and regulations of each municipality in whose
 corporate limits or extraterritorial jurisdiction the road project
 is located.
 (b)  If a road project is not located in the corporate limits
 or extraterritorial jurisdiction of a municipality, the road
 project must meet all applicable construction standards,
 subdivision requirements and regulations of each county in which
 the road project is located.
 (c)  If the state will maintain and operate the road, the
 Texas Transportation Commission must approve the plans and
 specifications for the project.
 Sec. 3990.108.  NO EMINENT DOMAIN. The district may not
 exercise the power of eminent domain.
 [Sections 3990.109-3990.150 reserved for expansion]
 SUBCHAPTER D. PUBLIC PARKING FACILITIES
 Sec. 3990.151.  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 on behalf of 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. 3990.152.  RULES. The district may adopt rules
 governing the district's public parking facilities.
 Sec. 3990.153.  FINANCING OF PUBLIC 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 public parking facilities.
 (b)  The district may:
 (1)  set, charge, impose, and collect fees, charges, or
 tolls for the use of the district's public parking facilities; and
 (2)  issue bonds or notes to finance the cost of the
 district's public parking facilities.
 [Sections 3990.154-3990.200 reserved for expansion]
 SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
 Sec. 3990.201.  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. 3990.202.  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. 3990.205.  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. 3990.206.  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. 3990.208.  OPERATION AND MAINTENANCE TAX. (a)  If
 authorized at an election held in accordance with Section 3990.212,
 the district may impose an annual 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; or
 (2)  construct or acquire public improvements.
 (b)  The board shall determine the tax rate. The rate may not
 exceed the rate approved at the election.
 (c)  Section 49.107(h), Water Code, does not apply to the
 district.
 Sec. 3990.210.  AUTHORITY TO BORROW MONEY AND TO ISSUE
 BONDS.  (a)  The district may borrow money on terms and conditions
 as 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 other than ad
 valorem taxes.
 (b)  The district may issue bonds, notes, or other
 obligations payable wholly or partly from ad valorem taxes, sales
 and use taxes, assessments, impact fees, revenue, contract
 payments, grants, or other district money, or any combination of
 those sources of money, to pay for any authorized district purpose.
 (c)  The limitation on the outstanding principal amount of
 bonds, notes, and other obligations set forth in Section 49.4645,
 Water Code, does not apply to the district.
 Sec. 3863.211.  TAXES FOR BONDS. At the time the district
 issues bonds payable wholly or partly from ad valorem taxes, the
 board shall provide for the annual imposition of a continuing
 direct annual ad valorem tax, without limit as to rate or amount,
 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. 3990.212.  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 3863.209.
 (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 which
 may be acquired by a district by the issuance of its bonds may be
 included in one single proposition to be voted on at the election or
 the bonds may be submitted in several propositions.
 Sec. 3990.213.  COMPETITIVE BIDDING. Subchapter I, Chapter
 49, Water Code, applies to the district. Sections 375.221 and
 375.223, Local Government Code, do not apply to the district.
 Sec. 3990.214.  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.
 [Sections 3990.215-3990.250 reserved for expansion]
 SUBCHAPTER F. TAXES FOR CERTAIN DEFINED AREAS AND DESIGNATED
 PROPERTY
 Sec. 3990.251.  AUTHORITY TO ESTABLISH DEFINED AREAS OR
 DESIGNATED PROPERTY. The district may define areas or designate
 certain property of the district to pay for improvements,
 facilities, or services that primarily benefit that area or
 property and do not generally and directly benefit the district as a
 whole.
 Sec. 3990.252.  PROCEDURE FOR ELECTION. (a)  Before the
 district may impose an ad valorem tax or issue bonds payable from ad
 valorem taxes of the area defined or property designated under
 Section 3863.251, the board must call and hold an election as
 provided by Section 2990.212 only in the defined area or in the
 boundaries of the designated property.
 (b)  The board may submit the proposition to the voters on
 the same ballot to be used in another election.
 Sec. 3990.253.  DECLARING RESULT AND ISSUING ORDER. (a)  If
 a majority of the voters voting at the election approve the
 proposition or propositions, the board shall declare the results
 and by order shall establish the defined area and describe it by
 metes and bounds or designate the specific property.
 (b)  A court may not review the board's order except on the
 ground of fraud, palpable error, or arbitrary and confiscatory
 abuse of discretion.
 Sec. 3990.254.  TAXES FOR SERVICES, IMPROVEMENTS, AND
 FACILITIES IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter
 approval and adoption of the order described in Section 3990.253,
 the district may apply separately, differently, equitably, and
 specifically its taxing power and lien authority to the defined
 area or designated property to provide money to construct,
 administer, maintain, and operate services, improvements, and
 facilities that primarily benefit the defined area or designated
 property.
 Sec. 3990.255.  ISSUANCE OF BONDS AND IMPOSITION OF TAXES
 FOR DEFINED AREA OR DESIGNATED PROPERTY. After the order under
 Section 3990.253 is adopted, the district may issue bonds to
 provide for any land, improvements, facilities, plants, equipment,
 and appliances for the defined area or designated property.
 [Sections 3990.256-3990.300 reserved for expansion]
 SUBCHAPTER G. SALES AND USE TAX
 Sec. 3990.301.  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. 3990.302.  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, 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. 3990.303.  AUTHORIZATION; ELECTION.  (a)  The district
 may adopt a sales and use tax to serve the purposes of the district
 after an election in which a majority of the voters of the district
 voting in the election authorize the adoption of the tax.
 (b)  The board by order may call an election to authorize a
 sales and use tax.  The election may be held with any other district
 election.
 (c)  The district shall provide notice of the election and
 shall hold the election in the manner prescribed by Section
 3990.212.
 (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. 3990.304.  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. 3990.305.  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 within
 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 decrease 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 3990.306-3990.350 reserved for expansion]
 SUBCHAPTER H. HOTEL OCCUPANCY TAXES
 Sec. 3990.351.  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 otherwise provided by this section,
 Subchapter A, Chapter 351, Tax Code, governs a hotel occupancy tax
 authorized by this section, including the collection of the tax.
 (d)  The district may impose a hotel occupancy tax and may
 use revenue from the tax for any district purpose that is also an
 authorized use of a municipality's 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 3.  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 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. (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 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, 2023.