CHAPTER 3858. DRIFTWOOD ECONOMIC DEVELOPMENT MUNICIPAL MANAGEMENT DISTRICT

State Codes and Statutes

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SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3858. DRIFTWOOD ECONOMIC DEVELOPMENT MUNICIPAL

MANAGEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3858.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the district.

(2) "City council" means the governing body of the City of

Dripping Springs.

(3) "Commissioners court" means the Hays County Commissioners

Court.

(4) "Director" means a member of the board.

(5) "District" means the Driftwood Economic Development

Municipal Management District.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.002. CREATION AND NATURE OF DISTRICT. The district is

a special district created under Section 59, Article XVI, Texas

Constitution.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.003. PURPOSE; LEGISLATIVE FINDINGS. (a) The creation

of the district is essential to accomplish the purposes of

Sections 52 and 52-a, Article III, and Section 59, Article XVI,

Texas Constitution, and other public purposes stated in this

chapter. By creating the district, 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.

interpreted to relieve Hays County from providing the level of

services provided as of the effective date of the Act creating

this chapter to the area in the district. The district is

created to supplement and not supplant county services provided

in the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The

district is created to serve a public use and benefit.

(b) All land and other property included in the district will

benefit from the improvements and services to be provided by the

district under powers conferred by Sections 52 and 52-a, Article

III, and Section 59, Article XVI, Texas Constitution, and other

powers granted under this chapter.

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 commerce in the state.

(d) The district will:

(1) promote the health, safety, and general welfare of

residents, employers, potential employees, employees, consumers,

and visitors in the district;

(2) provide needed funding for the district to preserve,

maintain, and enhance the economic health and viability of the

district as a community and business center; and

(3) promote the health, safety, welfare, and enjoyment of the

public by providing trails, landscaping, and other services that

are necessary for the restoration, preservation, and enhancement

of the scenic beauty and environment of the area.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.005. DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 2 of the Act

creating this chapter, as the territory may have been modified

under:

(1) Section 375.043 or 375.044, Local Government Code; or

(2) other law.

(b) The boundaries and field notes of the district contained in

Section 2 of the Act creating this chapter form a closure. A

mistake in the field notes of the district contained in Section 2

of the Act creating this chapter or in copying the field notes in

the legislative process does not in any way affect:

(1) the district's organization, existence, or validity;

(2) the district's right to contract, including the right to

issue an obligation for a purpose for which the district is

created;

(3) the district's right to impose or collect an assessment,

tax, or other revenue; or

(4) the legality or operation of the board.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.006. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS

LAW. Except as otherwise provided by this chapter, Chapter 375,

Local Government Code, applies to the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3858.051. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.052. APPOINTMENT OF DIRECTORS. The board consists of

the following directors:

(1) Position 1: a person appointed by the commissioners court;

(2) Position 2: a person appointed by the commissioners court;

(3) Position 3: a person appointed by the city council;

(4) Position 4: a person appointed by the city council; and

(5) Position 5: a person appointed by the commissioners court,

who must be the individual who owns more property in the district

than any other individual except that if the commissioners court

is unable to identify a person qualified for Position 5 who is

willing and able to serve, the commissioners court shall appoint

to the place a person who is:

(A) at least 18 years old; and

(B) a resident of this state.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.053. VACANCY. A vacancy in the office of director

shall be filled for the unexpired term by appointment in the same

manner as the office was previously filled under Section

3858.052.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.054. PETITION; ELECTION. (a) The owner or owners of

at least 40 percent of the assessed value of property in the

district may submit a petition to the commissioners court

requesting an election of the board.

(b) If the commissioners court receives a petition under

Subsection (a), the commissioners court shall order an election

of board members in the district.

the 30th day before the date of the election.

(d) Of the directors elected to the board in an election under

this section, the terms of the directors appointed for positions

1 through 3 expire on the third June 1 after the election, and

the terms of directors appointed for positions 4 and 5 expire on

June 1 following the election.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.055. DIRECTOR'S BOND AND OATH. (a) Section 375.067,

Local Government Code, does not apply to a director.

(b) Each director shall file the director's constitutional oath

of office with the district, and the district shall retain the

oath in the district's records.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

For expiration of this section, see Subsection (d).

Sec. 3858.056. INITIAL DIRECTORS. (a) The initial board

consists of the following directors:

Position

Name of Director

Silver Garza

Scott Roberts

Ginger Faught

Ken Manning

Michelle Fischer

(b) The terms of the initial directors appointed for positions 1

through 3 expire June 1, 2013, and the terms of the initial

directors appointed for positions 4 and 5 expire June 1, 2011.

(d) This section expires June 1, 2014.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3858.101. GENERAL POWERS AND DUTIES. The district has the

powers and duties necessary to accomplish the purposes for which

the district was created.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.102. IMPROVEMENT PROJECTS. (a) The district may

provide, or it may enter into contracts with a governmental or

private entity to provide, the following types of improvement

projects or activities in support of or incidental to those

projects:

(1) the planning, design, construction, improvement, operation,

and maintenance of:

(A) irrigation facilities and landscaping;

(B) highway right-of-way or transit corridor beautification and

improvement;

(D) a street or sidewalk;

(E) a hiking or cycling path or trail;

(F) a park, lake, garden, recreational facility, sports

facility, open space, scenic area, or related exhibit or

preserve;

(G) a fountain, plaza, or pedestrian mall;

(H) a drainage or storm-water detention improvement;

(I) a wastewater treatment and disposal facility;

(J) a water quality protection facility;

(K) a facility to enhance groundwater recharge;

(L) an alternative energy facility; or

(M) solid waste management services, including garbage

collection, recycling, and composting;

(2) the planning, design, construction, acquisition, lease,

rental, improvement, maintenance, installation, and management of

and provision of furnishings for a facility for:

(A) a conference, convention, or exhibition;

(B) a manufacturer, consumer, or trade show;

(D) an exhibit, display, attraction, special event, or seasonal

or cultural celebration or holiday; or

(3) a special or supplemental service for the improvement and

promotion of the district or for the protection of public health

and safety in the district, including:

(A) advertising;

(B) promotion;

(D) health and sanitation;

(E) public safety;

(F) security;

(G) fire protection or emergency medical services;

(H) business recruitment;

(I) development;

(J) elimination of traffic congestion;

(K) recreational, educational, or cultural improvements,

enhancements, and services; or

(L) any similar public improvement, facility, or service.

(b) The district may not undertake a project under this section

unless the board determines the project to be necessary to

accomplish the public purpose of the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.103. CONTRACTS; GIFTS; DONATIONS. The district may:

(1) contract with any person to accomplish any district purpose,

including a contract for:

(A) the payment, repayment, or reimbursement of costs incurred

by that person on behalf of the district, including all or part

of the costs of an improvement project and interest on the

reimbursed costs;

(B) the use, occupancy, lease, rental, operation, maintenance,

or management of all or part of a proposed or existing

improvement project; or

for a fee;

(2) apply for and contract with any person to receive,

administer, and perform a duty or obligation of the district

under a federal, state, local, or private gift, grant, loan,

conveyance, transfer, bequest, or other financial assistance

arrangement relating to investigation, planning, analysis, study,

design, acquisition, construction, improvement, completion,

implementation, or operation by the district or others of a

proposed or existing improvement project; and

(3) accept a grant or donation from any person.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.104. RULES; ENFORCEMENT. (a) The district may adopt

and enforce rules:

(1) to administer or operate the district;

(2) for the use, enjoyment, availability, protection, security,

and maintenance of the district's property and facilities; or

(3) to provide for public safety and security in the district.

(b) The district may enforce its rules by injunctive relief.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.105. COMPETITIVE BIDDING. Section 375.221, Local

Government Code, does not apply to the formation of a district

contract.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.106. NO EMINENT DOMAIN POWER. The district may not

exercise the power of eminent domain.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 3858.151. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.152. NO AUTHORITY TO ISSUE BONDS. The district may

not issue bonds.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.153. AD VALOREM TAX; ELECTION. (a) 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 imposes an ad valorem tax.

(b) If authorized at an election under Subsection (a) and

subject to Subsection (c), the district may impose an annual ad

valorem tax on taxable property in the district to:

(1) maintain and operate the district;

(2) construct or acquire improvements; or

(3) provide a service.

district only if the revenue requirements of the district are not

satisfied by the other taxes imposed by the board.

(d) The board shall determine the tax rate. The tax rate may

not exceed 15 cents per $100 valuation.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.154. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The

board by resolution may impose and collect an assessment for any

purpose authorized by this chapter.

(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.

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.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.155. SALES AND USE TAX; ELECTION. (a) Except as

otherwise provided by this section, Subtitles A and B, Title 2,

Tax Code, and Chapter 151, Tax Code, apply to a tax imposed under

this section and to the administration and enforcement of that

tax in the same manner that those laws apply to a state tax.

(b) Except as otherwise provided by this chapter, Chapter 321,

Tax Code, applies to the imposition, computation, administration,

and governance of a sales and use tax imposed under this section.

retail of taxable items within the district, and an excise tax on

the use, storage, or other consumption in the district of taxable

items purchased, leased, or rented from a retailer in the

district if authorized by a majority of the voters of the

district voting at an election called for that purpose and held

in the manner provided by Subchapter L, Chapter 375, Local

Government Code.

(d) The tax may be imposed in one-eighth of one percent

increments not to exceed the rate authorized by the district

voters.

(e) A tax under this section is applied to the sales price of a

taxable item.

(f) The board may not adopt a sales and use tax if as a result

of the adoption of the tax the combined rate of all sales and use

taxes imposed by the board and other political subdivisions of

this state having territory in the district would exceed two

percent at any location in the district.

(g) If the voters of the district approve the adoption of the

tax at an election held on the same election date on which

another political subdivision adopts a sales and use tax or

approves an increase in the rate of its sales and use tax and as

a result the combined rate of all sales and use taxes imposed by

the district and other political subdivisions of this state

having territory in the district would exceed two percent at any

location in the district, the election to adopt a sales and use

tax under this chapter has no effect.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.156. HOTEL OCCUPANCY TAX. The district may impose a

hotel occupancy tax in the manner that Chapter 351, Tax Code,

provides for a municipality. A tax imposed under this section

may not exceed seven percent of the price paid for lodging in the

district.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

Sec. 3858.157. ACCOUNTING. (a) On the conclusion of each

fiscal year, the board shall obtain from an independent entity a

review of the district's financial activities for the preceding

fiscal year.

(b) Not later than September 1, the board annually shall submit

to the commissioners court a written report containing:

(1) the findings of a review under Subsection (a);

(2) if not included in the review, accounting records of the

preceding fiscal year; and

(3) a summary of the activities of the district during the

preceding fiscal year.

initial annual report not later than September 1, 2010. This

subsection expires October 1, 2010.

Added by Acts 2009, 81st Leg., R.S., Ch.

1203, Sec. 1, eff. June 19, 2009.

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