Virdell Railroad Bill Allows Alcohol Sales At Train Stations

The text as introduced · 1,754 words

89R14541 MCF-F

By: Virdell
H.B. No. 5702

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Llano Historic Railroad Authority;

providing authority to impose fees.

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

SECTION 1. Subtitle D, Title 4, Special District Local Laws

Code, is amended by adding Chapter 4502 to read as follows:

CHAPTER 4502. LLANO HISTORIC RAILROAD AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 4502.001. DEFINITIONS. In this chapter:

(1) "Authority" means the Llano Historic Railroad

Authority.

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

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

(4) "County" means Llano County.

(5) "Director" means a board member.

(6) "Historic railroad district" means the Austin &

Northwestern Railroad Historic District listed in the National

Register of Historic Places in Llano and Burnet Counties that

includes a rail line between the city and the unincorporated

community of Fairland.

Sec. 4502.002. CREATION AND NATURE OF AUTHORITY. The Llano

Historic Railroad Authority is a special district created under

Section 59, Article XVI, Texas Constitution, for the development of

parks and recreational facilities.

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

created to:

(1) maintain the physical infrastructure of the rail

line in the historic railroad district and related facilities;

(2) restore and maintain the historic railroad

district to the standards appropriate for a railroad listed in the

National Register of Historic Places and the guidelines determined

by the National Park Service;

(3) operate activities and facilities associated with

the historic railroad district, including by:

(A) operating concessions;

(B) operating tourist excursions;

(C) conducting historic train tours; and

(D) providing educational programming;

(4) enhance, augment, and improve the historical,

educational, and cultural benefits offered by the historic railroad

district; and

(5) collaborate with local governments, historical

societies, and private entities to promote the authority's

operations.

(b) The creation of the authority is necessary to promote,

develop, encourage, and maintain employment, commerce,

transportation, tourism, recreation, the arts, entertainment,

economic development, and public welfare in the county.

Sec. 4502.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The authority is created to serve a public use and benefit.

(b) The creation of the authority is in the public interest

and is essential to:

(1) further the public purposes of development and

diversification of the economy of the state;

(2) eliminate unemployment and underemployment; and

(3) develop and expand commerce, tourism, recreation,

historical awareness, education, and the arts.

(c) The authority will:

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

residents, employers, employees, visitors, and consumers in the

county; and

(2) preserve, maintain, and enhance the economic

health and vitality of the county.

(d) The authority may not act as the agent or

instrumentality of any private interest, even though the authority

will incidentally benefit many private interests in addition to the

paramount public interest.

Sec. 4502.005. GENERAL WATER DISTRICT LAW NOT APPLICABLE.

Chapter 49, Water Code, does not apply to the authority.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 4502.051. GOVERNING BODY; TERMS. (a) The authority is

governed by a board composed of seven voting directors as follows:

(1) two directors appointed by the commissioners court

of the county;

(2) two directors appointed by the governing body of

the city; and

(3) three directors appointed by the other directors.

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

(c) The initial directors shall draw lots to determine which

three initial directors serve an initial one-year term and which

four initial directors serve an initial three-year term.

Sec. 4502.052. ELIGIBILITY. (a) To be qualified to serve

as a director, a person must be at least 21 years of age.

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

consecutive terms.

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

the county.

Sec. 4502.053. APPOINTMENT OF DIRECTORS. (a) Not later

than August 31 of an appropriate year, by majority vote:

(1) the commissioners court of the county shall

appoint as a voting director a person proposed by the county judge

of the county to serve a term beginning on September 1 of that year;

and

(2) the governing body of the city shall appoint as a

voting director a person proposed by the mayor of the city to serve

a term beginning on September 1 of that year.

(b) Not later than September 30 of an appropriate year, by

majority vote, the directors appointed under Subsection (a) shall

appoint a director to serve a term beginning on October 1 of that

year.

Sec. 4502.054. NONVOTING DIRECTORS. (a) The following

persons serve as nonvoting directors:

(1) the mayor of the city; and

(2) the county judge of the county.

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

board quorum.

Sec. 4502.055. VACANCIES. A board vacancy is filled in the

same manner as the original appointment.

Sec. 4502.056. OFFICERS. (a) Each year, the board shall

elect from among the voting directors officers for the authority,

including a president, a vice president, a secretary, and a

treasurer.

(b) The president and the vice president may not both be

directors appointed under Section 4502.051(a)(3).

Sec. 4502.057. VOTING AUTHORITY OF PRESIDENT. The board

president is a voting director but may vote only to break a tie. All

other voting directors are entitled to one vote on any issue before

the board.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 4502.101. GENERAL POWERS. The authority has the

powers necessary to accomplish any authority purpose, including the

purposes specified in Section 4502.003.

Sec. 4502.102. CONTRACTS. (a) The authority may contract

with any person to manage or operate all or part of authority

property.

(b) For an authority purpose, the authority may enter into a

contract with a rapid transit authority created under Chapter 451,

Transportation Code.

(c) This chapter does not authorize the invalidation or

impairment of any contract or agreement entered into before

September 1, 2025, related to a recreational or other use of the

historic railroad district.

Sec. 4502.103. SALE OF ALCOHOLIC BEVERAGES ON AUTHORITY

PROPERTY. The authority may contract with a person for the retail

sale of alcoholic beverages and a person may sell alcoholic

beverages at retail on authority property that is used as a station

for passenger rail services if the person holds or obtains the

appropriate permit or license authorizing the sale of the alcoholic

beverages.

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

(1) acquire, own, lease, operate, construct,

maintain, repair, improve, or extend improvements, equipment, or

any other property necessary to accomplish an authority purpose; or

(2) lease or otherwise convey authority property to

private parties for an authority purpose.

Sec. 4502.105. COMMUNITY ORGANIZATIONS. (a) The authority

shall make its facilities available for use by community

organizations, including:

(1) schools for educational field trips and

programming;

(2) civic and charitable organizations for events,

workshops, and tours; and

(3) nonprofit groups promoting arts, culture, and

heritage.

(b) The authority may establish reasonable policies to

ensure equitable access to facilities, including:

(1) a fee structure for cost recovery, which may

include reduced or waived fees for nonprofit organizations or

educational groups; and

(2) scheduling procedures to prioritize public

benefit uses.

(c) The authority shall annually prepare and submit to the

commissioners court of the county and the governing body of the city

a report on community access activities. The report must include:

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

authority; and

(2) the amount of revenue generated by the authority

and operating costs covered.

Sec. 4502.106. RAPID TRANSIT AUTHORITY. A rapid transit

authority may collaborate with the Llano Historic Railroad

Authority to:

(1) seek and apply for or provide funding for the

restoration of the historic railroad district;

(2) provide technical assistance and other resources

to support grant applications and collaborative funding

initiatives related to the restoration of the historic railroad

district;

(3) restore the historic railroad district as part of

a broader economic development strategy for the region in which the

rapid transit authority operates; and

(4) ensure that restoration efforts in the historic

railroad district are undertaken in a manner consistent with

contracts or agreements of the rapid transit authority entered into

with persons other than the Llano Historic Railroad Authority.

Sec. 4502.107. AUTHORITY TO SUE AND BE SUED; IMMUNITY. (a)

The authority may sue and be sued in this state.

(b) This section does not waive any governmental immunity

that would otherwise apply to the authority.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 4502.151. AD VALOREM TAXES PROHIBITED. The authority

may not impose an ad valorem tax.

Sec. 4502.152. APPROPRIATIONS; GRANTS; DONATIONS. (a) The

legislature may appropriate money to the authority to fund the

authority's activities under this chapter.

(b) The authority may accept grants and donations,

including property, for any authority purpose.

Sec. 4502.153. REVENUE. The authority may generate revenue

through:

(1) ticket sales for train tours;

(2) facility rental fees;

(3) concessions; and

(4) retail sale of souvenirs and educational

materials.

Sec. 4502.154. GRANTS FROM OTHER TAXING AUTHORITY. (a) A

taxing authority in the county may by contract grant to the

authority local hotel occupancy tax revenue received from a hotel

located in the county.

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

authority making the grant.

SUBCHAPTER E. DISSOLUTION

Sec. 4502.201. DISSOLUTION OF AUTHORITY; OUTSTANDING DEBT.

(a) The board may dissolve the authority regardless of whether the

authority has debt.

(b) If the authority has debt when it is dissolved, the

authority shall remain in existence solely for the purpose of

discharging its debts. The dissolution is effective when all debts

have been discharged.

SECTION 2. (a) The legal notice of the intention to

introduce this Act, setting forth the general substance of this

Act, has been published as provided by law, and the notice and a

copy of this Act have been furnished to all persons, agencies,

officials, or entities to which they are required to be furnished

under Section 59, Article XVI, Texas Constitution, and Chapter 313,

Government Code.

(b) The governor, one of the required recipients, has

submitted the notice and Act to the Texas Commission on

Environmental Quality.

(c) The Texas Commission on Environmental Quality has filed

its recommendations relating to this Act with the governor,

lieutenant governor, and speaker of the house of representatives

within the required time.

(d) All requirements of the constitution and laws of this

state and the rules and procedures of the legislature with respect

to the notice, introduction, and passage of this Act have been

fulfilled and accomplished.

SECTION 3. This Act takes effect September 1, 2025.