HB 5702

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
(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
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
(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
(3)  operate activities and facilities associated with
the historic railroad district, including by:
(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
(5)  collaborate with local governments, historical
societies, and private entities to promote the authority's
(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
(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.
(1)  promote the health, safety, and general welfare of
residents, employers, employees, visitors, and consumers in the
(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
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
(2)  two directors appointed by the governing body of
(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
(c)  At least five of the seven voting directors must live in
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;
(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
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
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
(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
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
(b)  For an authority purpose, the authority may enter into a
contract with a rapid transit authority created under Chapter 451,
(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
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
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
(1)  schools for educational field trips and
(2)  civic and charitable organizations for events,
(3)  nonprofit groups promoting arts, culture, and
(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
(2)  scheduling procedures to prioritize public
(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
(2)  the amount of revenue generated by the authority
Sec. 4502.106.  RAPID TRANSIT AUTHORITY.  A rapid transit
authority may collaborate with the Llano Historic Railroad
(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
(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
(1)  ticket sales for train tours;
(4)  retail sale of souvenirs and educational
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
(b)  The grant must serve a public purpose of the taxing
Sec. 4502.201.  DISSOLUTION OF AUTHORITY; OUTSTANDING DEBT.
(a)  The board may dissolve the authority regardless of whether the
(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
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,
(b)  The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
(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
(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
SECTION 3.  This Act takes effect September 1, 2025.