CHAPTER 3840. SPECTRUM MANAGEMENT DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 4. DEVELOPMENT AND IMPROVEMENT
SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT
CHAPTER 3840. SPECTRUM MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3840.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the district.
(2) "District" means the Spectrum Management District.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.002. SPECTRUM MANAGEMENT DISTRICT. The Spectrum
Management District is a special district created under Section
59, Article XVI, Texas Constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.003. PURPOSE; DECLARATION OF INTENT. (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 and in authorizing the City of
Pearland, Harris 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.
(c) This chapter and the creation of the district may not be
interpreted to relieve Harris County and the City of Pearland
from providing the level of services provided as of the effective
date of the Act enacting this chapter, to the area in the
district. The district is created to supplement and not to
supplant the county or city services provided in the area in the
district.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.004. 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.
(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;
(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;
(4) provide for water, wastewater, and drainage needs of the
district; and
(5) provide for recreational facilities, sports arenas, and
other athletic facilities.
(e) Pedestrian ways along or across a street, whether at grade
or above or below the surface, and street lighting, street
landscaping, parking, and street art objects are parts of and
necessary components of a street and are considered to be a
street or road improvement.
(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.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 2 of the Act
enacting this chapter, as that territory may have been modified
under:
(1) Subchapter J, Chapter 49, Water Code; or
(2) other law.
(b) The boundaries and field notes of the district 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 in any way affect the district's:
(1) organization, existence, or validity;
(2) right to issue any type of bond for a purpose 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.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.006. 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 by a municipality
under Chapter 311, Tax Code;
(2) a tax abatement reinvestment zone created by a municipality
under Chapter 312, Tax Code; or
(3) an enterprise zone created under Chapter 2303, Government
Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS
LAW. (a) Except as otherwise provided by this chapter, Chapter
375, Local Government Code, applies to the district.
(b) Subchapter B, Chapter 375, and Sections 375.064(f), 375.069,
375.070, 375.071, 375.113, and 375.114, Local Government Code, do
not apply to the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.008. LIBERAL CONSTRUCTION OF CHAPTER. This chapter
shall be liberally construed in conformity with the findings and
purposes stated in this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3840.051. COMPOSITION; TERMS. (a) The district is
governed by a board of seven voting directors who serve staggered
terms of four years, with three or four directors' terms expiring
June 1 of each odd-numbered year.
(b) The board by resolution may change the number of voting
directors on the board, but only if the board determines that the
change is in the best interest of the district. The board may
not consist of fewer than five or more than 15 voting directors.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.052. APPOINTMENT OF DIRECTORS. (a) The mayor and the
governing body of the City of Pearland shall appoint voting
directors from persons recommended by the board.
(b) A person is appointed if a majority of the members of the
governing body, including the mayor, vote to appoint that person.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.053. DISQUALIFICATION. Section 49.052, Water Code,
does not apply to the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.054. NONVOTING DIRECTORS. The board may appoint
nonvoting directors to serve at the pleasure of the voting
directors.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.055. QUORUM. For purposes of determining the
requirements for a quorum, the following are not counted:
(1) a board position vacant for any reason, including death,
resignation, or disqualification;
(2) a director who is abstaining from participation in a vote
because of a conflict of interest; or
(3) a nonvoting director.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
For expiration of this section, see Subsection (d).
Sec. 3840.056. INITIAL VOTING DIRECTORS. (a) The initial board
consists of the following voting directors:
Pos. No.
Name of Director
1
Fred Welch
2
Charlie Whynot
3
Cullum Heard
4
Darrell Jordan
5
Mark Evans
6
Ronnie Hecht
7
Shareen Larmond
(b) Of the initial voting directors, the terms of directors
appointed for positions 1 through 4 expire June 1, 2009, and the
terms of directors appointed for positions 5 through 7 expire
June 1, 2011.
(c) Section 3840.052 does not apply to this section.
(d) This section expires September 1, 2012.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3840.101. ADDITIONAL POWERS OF DISTRICT. The district may
exercise the powers given to:
(1) an economic 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;
(2) a housing finance corporation under Chapter 394, Local
Government Code, to provide housing or residential development
projects in the district; and
(3) a sports facility district under Chapter 325, Local
Government Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.026, eff. September 1, 2009.
Sec. 3840.102. NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation
to assist and act for the district in implementing a project or
providing a service authorized by this chapter.
(b) The nonprofit corporation:
(1) has each power of and is considered for purposes of this
chapter to be a local government corporation created under
Chapter 431, Transportation Code; and
(2) may implement any project and provide any service authorized
by this chapter.
(c) The board shall appoint the board of directors of the
nonprofit corporation.
(d) The board of directors of the nonprofit corporation shall
serve in the same manner as the board of directors of a local
government corporation created under Chapter 431, Transportation
Code, except that a director of the corporation is not required
to reside in the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.103. 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.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.104. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT. To
protect the public interest, the district may contract with a
qualified party, including Harris County or the City of Pearland,
to provide law enforcement services in the district for a fee.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.105. 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.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.106. 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) For purposes of this section, the district has all of the
powers of a municipality under Chapter 380, Local Government
Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.107. PROPERTY. The district may construct, purchase,
sell, or lease property, including facilities, to accomplish a
district purpose.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.108. NO EMINENT DOMAIN. The district may not exercise
the power of eminent domain.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 3840.151. 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 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.152. 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.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.153. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
service or improvement project with assessments under this
chapter unless a written petition requesting that service or
improvement has been filed with the board.
(b) A petition filed under Subsection (a) must be signed by:
(1) the owners of a majority of the assessed value of real
property in the district subject to the proposed assessment
according to the most recent certified tax appraisal roll for
Harris County; or
(2) at least 50 owners of real property in the district if more
than 50 persons own real property in the district as determined
by the most recent certified tax appraisal roll for Harris
County.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.154. METHOD OF NOTICE FOR HEARING. The district may
mail the notice required by Section 375.115(c), Local Government
Code, by certified or first class United States mail. The board
shall determine the method of notice.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.155. 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.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.156. AD VALOREM TAX. (a) If authorized at an
election held in accordance with Section 3840.160, the district
may impose an annual ad valorem tax on taxable property in the
district for any district purpose, including to:
(1) maintain and operate the district;
(2) construct or acquire improvements; or
(3) provide a service.
(b) The board shall determine the tax rate.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.157. UTILITY PROPERTY EXEMPT FROM IMPACT FEES OR
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.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.158. BONDS AND OTHER OBLIGATIONS. (a) The district
may issue by competitive bid or negotiated sale bonds or other
obligations payable wholly or partly from taxes, assessments,
impact fees, revenue, grants, or other money of the district, or
any combination of those sources of money, to pay for any
authorized purpose of the district.
(b) The district may issue a bond or other obligation in the
form of a bond, note, certificate of participation or other
instrument evidencing a proportionate interest in payments to be
made by the district, or other type of obligation.
(c) The term of a bond issued under this chapter may not exceed
40 years from the date of issuance.
(d) In addition to any other terms authorized by the board by
bond order or resolution, the proceeds of the district's bonds
may be used for a reserve fund, credit enhancement, or
capitalized interest for the bonds.
(e) The limitation on the outstanding principal amount of bonds,
notes, and other obligations provided by Section 49.4645, Water
Code, does not apply to the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.159. TAXES FOR BONDS AND OTHER OBLIGATIONS. At the
time bonds or other obligations payable wholly or partly from ad
valorem taxes are issued:
(1) the board shall impose a continuing direct annual ad valorem
tax, without limit as to rate or amount, for each year that all
or part of the bonds are outstanding; and
(2) the district annually shall impose a continuing direct ad
valorem tax on all taxable property in the district in an amount
sufficient to:
(A) pay the interest on the bonds or other obligations as the
interest becomes due;
(B) create a sinking fund for the payment of the principal of
the bonds or other obligations when due or the redemption price
at any earlier required redemption date; and
(C) pay the expenses of imposing the taxes.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.160. TAX AND BOND ELECTIONS. (a) The district shall
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 or issues bonds payable from
ad valorem taxes.
(b) The board may include more than one issue in a single
proposition at an election.
(c) Section 375.243, Local Government Code, does not apply to
the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.161. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT
OBLIGATIONS. Except as provided by Section 375.263, Local
Government Code, a municipality is not required to pay a bond,
note, or other obligation of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.162. BIDDING REQUIREMENTS. Section 375.221, Local
Government Code, and Sections 49.273(d), (e), (f), and (g), Water
Code, do not apply to the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.163. 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.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
SUBCHAPTER E. SALES AND USE TAX
Sec. 3840.201. 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.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.202. 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.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.203. 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 3840.160.
(d) The ballots shall be printed to provide for voting for or
against the proposition: "Authorization of a district sales and
use tax in the Spectrum Management District at a rate not to
exceed _____ percent."
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.204. ABOLISHING SALES AND USE TAX. (a) Except as
provided by Subsection (b), the board, with the consent of the
governing body of the City of Pearland, 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.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
Sec. 3840.205. 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 in 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 lower 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.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.
SUBCHAPTER F. DISSOLUTION
Sec. 3840.251. DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT.
(a) The board may dissolve the district regardless of whether
the district has debt. Section 375.264, Local Government Code,
does not apply to the district.
(b) If the district has debt when it is dissolved, the district
shall remain in existence solely for the purpose of discharging
its debts. The dissolution is effective when all debts have been
discharged.
Added by Acts 2007, 80th Leg., R.S., Ch.
1344, Sec. 1, eff. June 15, 2007.