S.B. No. 1984
  relating to the creation of the Spectrum Management District;
  providing authority to levy an assessment, impose a tax, and issue
  4, Special District Local Laws Code, is amended by adding Chapter
  3840 to read as follows:
         Sec. 3840.001.  DEFINITIONS.  In this chapter:
               (1)  "Board" means the board of directors of the
               (2)  "District" means the Spectrum Management
         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.
         (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.
  (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.
         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.
  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.
  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]
         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.
         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
         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
  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.
  [Sections 3840.057-3840.100 reserved for expansion]
         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 facility 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.
         (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.
         Sec. 3840.103.  AGREEMENTS; GRANTS.  (a)  The district may
  make an agreement with or accept a gift, grant, or loan from any
         (b)  The implementation of a project is a governmental
  function or service for the purposes of Chapter 791, Government
  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.
  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.
         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
         Sec. 3840.107.  PROPERTY.  The district may construct,
  purchase, sell, or lease property, including facilities, to
  accomplish a district purpose.
         Sec. 3840.108.  NO EMINENT DOMAIN.  The district may not
  exercise the power of eminent domain.
  [Sections 3840.109-3840.150 reserved for expansion]
  board by resolution shall establish the number of directors'
  signatures and the procedure required for a disbursement or
  transfer of the district's money.
  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
  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
         (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
               (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.
         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.
  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.
         (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.
  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.
         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.
  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]
         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.
  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.
         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
         (c)  The district shall provide notice of the election and
  shall hold the election in the manner prescribed by Section
         (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."
         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
         (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.
  [Sections 3840.206-3840.250 reserved for expansion]
  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
               (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.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I hereby certify that S.B. No. 1984 passed the Senate on
  April 26, 2007, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 25, 2007, by the
  following vote: Yeas 30, Nays 0.
  Secretary of the Senate    
         I hereby certify that S.B. No. 1984 passed the House, with
  amendment, on May 23, 2007, by the following vote: Yeas 144,
  Nays 0, two present not voting.
  Chief Clerk of the House