80(R) SB 1945 - Introduced version

	80R6336 JPL-F

	By: Ellis	S.B. No. 1945

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Spectrum Management District;

providing authority to levy an assessment, impose a tax, and issue

bonds.

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

SECTION 1. SPECTRUM MANAGEMENT DISTRICT. Subtitle C, Title

4, Special District Local Laws Code, is amended by adding Chapter

3840 to read as follows:

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.

Sec. 3840.002. SPECTRUM MANAGEMENT DISTRICT. The Spectrum

Management District is a special district created under Section 59,

Article XVI, Texas Constitution.

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.

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.

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.

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.

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.

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.

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.

Sec. 3840.008. LIBERAL CONSTRUCTION OF CHAPTER. This

chapter shall be liberally construed in conformity with the

findings and purposes stated in this chapter.

[Sections 3840.009-3840.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3840.051. COMPOSITION; TERMS. (a) The district is

governed by a board of five voting directors who serve staggered

terms of four years, with two or three 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.

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.

Sec. 3840.053. DISQUALIFICATION. Section 49.052, Water

Code, does not apply to the district.

Sec. 3840.054. NONVOTING DIRECTORS. The board may appoint

nonvoting directors to serve at the pleasure of the voting

directors.

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.

Sec. 3840.056. INITIAL VOTING DIRECTORS. (a) The initial

board consists of the following voting directors:

Pos. No.

Name of Director

_________

(b) Of the initial voting directors, the terms of directors

appointed for positions 1 through 3 expire June 1, 2009, and the

terms of directors appointed for positions 4 and 5 expire June 1,

2011.

(d) This section expires September 1, 2012.

[Sections 3840.057-3840.100 reserved for expansion]

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 Section

4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's

Texas Civil Statutes), including the power to own, operate,

acquire, construct, lease, improve, or maintain a project described

by that section;

(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 facilities district under Chapter 325,

Local Government Code.

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.

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.

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.

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.

Sec. 3840.105. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The

district may join and pay dues to an organization that:

(1) enjoys tax-exempt status under Section 501(c)(3),

(4), or (6), Internal Revenue Code of 1986; and

(2) performs a service or provides an activity

consistent with the furtherance of a district purpose.

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.

Sec. 3840.107. NO EMINENT DOMAIN. The district may not

exercise the power of eminent domain.

[Sections 3840.108-3840.150 reserved for expansion]

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.

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.

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.

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.

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.

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. 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.

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.

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.

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.

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

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.

to the district.

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.

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.

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.

[Sections 3840.164-3840.200 reserved for expansion]

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.

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) The provisions of Subchapters B, C, and D, Chapter 321,

Tax Code, relating to municipal sales and use taxes apply 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.

do not apply to a tax imposed under this subchapter.

Sec. 3840.203. AUTHORIZATION; ELECTION. (a) The district

may adopt a sales and use tax to serve the purposes of the district

at an election in which a majority of the voters of the district

voting in the election approve the adoption of the tax.

(b) The board by order may call an election to adopt a sales

and use tax. The election may be held with any other district

election.

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: "Adoption of a district sales and use

tax in the Spectrum Management District at a rate not to exceed

_____ percent."

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.

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.

sales tax portion of the tax and is applied to the sales price of the

taxable item.

[Sections 3840.206-3840.250 reserved for expansion]

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.

SECTION 2. BOUNDARIES. As of the effective date of this

Act, the Spectrum Management District includes all territory

contained in the following described area:

Beginning at the intersection of the East boundary of the

right of way of State Highway 288 and the Harris County line at

Clear Creek;

Thence, West along the Harris County line following Clear

Creek to the East boundary of the right of way of Almeda School Road

(County Road 48);

Thence, North along the East boundary of the right of way of

Almeda School Road (County Road 48) to the South boundary of the

right of way of Beltway 8 (Sam Houston Parkway);

Thence, East along the South boundary of the right of way of

Beltway 8 (Sam Houston Parkway) to the East boundary of the right of

way of State Highway 288;

Thence, South along the East boundary of the right of way of

State Highway 288 to the point of beginning.

SAVE AND EXCEPT and land contained within the boundaries of

the Pearland Municipal Management District No. 1.

SECTION 3. LEGISLATIVE FINDINGS. The legislature finds

that:

(1) proper and 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 by

the constitution and laws of this state, including the governor,

who has submitted the notice and Act to the Texas Commission on

Environmental Quality;

(2) 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;

(3) the general law relating to consent by political

subdivisions to the creation of districts with conservation,

reclamation, and road powers and the inclusion of land in those

districts has been complied with; and

(4) 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 4. EFFECTIVE DATE. 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, 2007.