SPECIAL DISTRICTS CODE
CHAPTER 3816. FRISCO SQUARE MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
§ 3816.001. DEFINITIONS. In this subchapter:
(1) "Board" means the board of directors of the
district.
(2) "District" means the Frisco Square Management
District.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.002. FRISCO SQUARE MANAGEMENT DISTRICT. The
Frisco Square Management District is a special district created
under Section 59, Article XVI, Texas Constitution.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.003. 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 Collin
County, the City of Frisco, 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 City of Frisco's central business area.
(c) This chapter and the creation of the district may not be
interpreted to relieve Collin County or the City of Frisco from
providing the level of services provided as of September 1, 2001, to
the area in the district or to release the county or city from the
obligations of each entity to provide services to that area. The
district is created to supplement and not to supplant the city
services provided in the area in the district.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.004. 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) Each improvement project or service authorized by this
chapter is essential to carry out a public purpose and will benefit:
(1) all land and property in the district;
(2) the employees, employers, and consumers of the
district; and
(3) the public.
(e) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, employees, visitors, and consumers in the
district, and of the public;
(2) provide needed funding for the City of Frisco's
central business area extension to the west to:
(A) preserve, maintain, and enhance the economic
health and vitality of the area as a community and business center;
and
(B) provide a government center for the city;
(3) promote the health, safety, and general welfare of
residents, employers, employees, visitors, and consumers in the
district, and of the public by providing, maintaining, and
operating:
(A) attractive, safe, and convenient street and
road improvements;
(B) off-street parking facilities; and
(C) necessary water, sewer, and drainage
facilities to serve the area within the district; and
(4) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways, parks, and off-street
parking and by landscaping and developing certain areas in the
district, which are necessary for the restoration, preservation,
and enhancement of scenic and aesthetic beauty.
(f) Pedestrian ways along or across a street, at grade or
above or below the surface, and street lighting, street
landscaping, and street art objects are parts of and necessary
components of a street and are considered to be a street or road
improvement.
(g) 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.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 1, Chapter 1384,
Acts of the 77th Legislature, Regular Session, 2001, enacting
former Section 376.454, Local Government Code, as that territory
may have been modified under:
(1) Section 3816.107 or its predecessor statute,
former Section 376.466, Local Government Code, as added by Chapter
1384, Acts of the 77th Legislature, Regular Session, 2001;
(2) Subchapter J, Chapter 49, Water Code; or
(3) other law.
(b) The boundaries and field notes of the district contained
in Section 1, Chapter 1384, Acts of the 77th Legislature, Regular
Session, 2001, enacting former Section 376.454, Local Government
Code, form a closure. A mistake in the field notes or in copying the
field notes in the legislative process does not affect the
district's:
(1) organization, existence, or validity;
(2) right to issue any type of bond or other obligation
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.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.006. ELIGIBILITY FOR REINVESTMENT OR ENTERPRISE
ZONES. (a) All or any part of the area of the district is
eligible, regardless of other statutory criteria, to be included
in:
(1) a tax increment reinvestment zone created by the
City of Frisco under Chapter 311, Tax Code; or
(2) a tax abatement reinvestment zone created by the
City of Frisco under Chapter 312, Tax Code.
(b) All or any part of the area of the district is eligible
to be nominated for inclusion in an enterprise zone by the City of
Frisco under Chapter 2303, Government Code.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.007. APPLICABILITY OF OTHER LAW. Except as
otherwise provided by this chapter, Chapter 375, Local Government
Code, applies to the district, the board, and district employees.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.008. RELATION TO OTHER LAW. This chapter
prevails over a law to which this chapter refers that is in conflict
with or is inconsistent with this chapter.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.009. LIBERAL CONSTRUCTION OF CHAPTER. This
chapter shall be liberally construed in conformity with the
findings and purposes stated in this chapter.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
SUBCHAPTER B. BOARD OF DIRECTORS
§ 3816.051. BOARD OF DIRECTORS. The district is
governed by a board of five directors appointed under Section
3816.052 and three directors serving ex officio under Section
3816.053.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.052. APPOINTED DIRECTORS. (a) The governing
body of the City of Frisco shall appoint directors who meet the
qualifications of Subchapter D, Chapter 375, Local Government Code.
(b) The appointed directors serve staggered terms of four
years, with two directors' terms expiring July 1 of an odd-numbered
year and three directors' terms expiring July 1 of the following
odd-numbered year.
(c) Notwithstanding the common law doctrine of
incompatibility, members of the governing body of the City of
Frisco may be appointed to the board. The term of a director who is
also a member of the governing body of the City of Frisco expires
when the member's term on the governing body expires. The person
may be reappointed to the board to complete the unexpired term on
the board.
(d) A person may not be appointed to the board if the
appointment of that person would result in fewer than three of the
directors residing in the City of Frisco.
(e) The governing body of the City of Frisco shall appoint a
director to fill a vacancy that occurs on the board.
(f) District directors are public officials entitled to
governmental immunity for their official actions.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.053. EX OFFICIO DIRECTORS. (a) The following
persons serve as nonvoting ex officio directors:
(1) the manager of the City of Frisco;
(2) the financial director of the City of Frisco; and
(3) the planning director of the City of Frisco.
(b) If an office described by Subsection (a) is renamed,
changed, or abolished, the governing body of the City of Frisco may
appoint another city officer or employee who performs duties
comparable to those performed by the officer described by
Subsection (a).
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.054. CONFLICTS OF INTEREST. (a) Except as
provided by Section 3816.053 or this section:
(1) a director may participate in all board votes and
decisions; and
(2) Chapter 171, Local Government Code, governs
conflicts of interest of board members.
(b) Section 171.004, Local Government Code, does not apply
to the district. A director who has a substantial interest in a
business or charitable entity that will receive a pecuniary benefit
from a board action shall file an affidavit with the board secretary
declaring the interest. Another affidavit is not required if the
director's interest changes.
(c) After the affidavit is filed, the director may
participate in a discussion or vote on that action if:
(1) a majority of the directors have a similar
interest in the same entity;
(2) all other similar business or charitable entities
in the district will receive a similar pecuniary benefit; or
(3) the director is a property owner in the district.
(d) A director who is also an officer or employee of a public
entity may not participate in a discussion of or vote on a matter
regarding a contract with that same public entity.
(e) For purposes of this section, a director has a
substantial interest in a charitable entity in the same manner that
a person would have a substantial interest in a business entity
under Section 171.002, Local Government Code.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
SUBCHAPTER C. POWERS AND DUTIES
§ 3816.101. DISTRICT POWERS. (a) The district has all
powers necessary to accomplish the purposes for which the district
was created.
(b) The district may exercise the powers given to:
(1) a corporation created under Section 4B,
Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
Civil Statutes); or
(2) a housing finance corporation created under
Chapter 394, Local Government Code, to provide housing or
residential development projects in the district.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.102. 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. The board of directors of the nonprofit
corporation shall serve in the same manner as, for the same term as,
and on the conditions of the board of directors of a local
government corporation created under Chapter 431, Transportation
Code.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.103. AGREEMENTS; GRANTS; DONATIONS. (a) The
district may enter into an agreement with or accept a donation,
grant, or loan from any person.
(b) A municipality, county, or other political subdivision
of this state, without further authorization, may contract with the
district for:
(1) the acquisition, construction, improvement,
implementation, maintenance, and operation of a district project;
or
(2) the provision of a service authorized under this
chapter.
(c) A contract under Subsection (b) may:
(1) be for a period and include terms on which the
parties agree;
(2) be payable from taxes or any other source of
revenue that may be available for that purpose; and
(3) provide terms under which taxes or other revenues
collected at a district project or from a person using or purchasing
a commodity or service at a district project may be paid or rebated
to the district.
(d) The implementation of a project is a governmental
function or service for the purposes of Chapter 791, Government
Code.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.104. AUTHORITY TO CONTRACT FOR LAW
ENFORCEMENT. To protect the public interest, the district may
contract with the City of Frisco for the city to provide law
enforcement services in the district for a fee.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.105. COMPETITIVE BIDDING. Section 375.221,
Local Government Code, does not apply to a district contract for
$25,000 or less.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.106. APPROVAL OF CERTAIN IMPROVEMENT
PROJECTS. (a) Except as provided by Subsection (b), the district
must obtain the approval of the City of Frisco's governing body:
(1) for the issuance of a bond for each improvement
project;
(2) of the plans and specifications of an improvement
project financed by the bond; and
(3) of the plans and specifications of a district
improvement project related to the use of land owned by the City of
Frisco, an easement granted by the City of Frisco, or a right-of-way
of a street, road, or highway.
(b) If the district obtains the approval of the City of
Frisco's governing body of a capital improvements budget for a
period not to exceed five years, the district may finance the
capital improvements and issue bonds specified in the budget
without the further approval of the city.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.107. ANNEXATION. In addition to the authority to
annex territory under Subchapter C, Chapter 375, Local Government
Code, the district has the authority to annex territory located in a
reinvestment zone created by the City of Frisco under Chapter 311,
Tax Code, if the city's governing body consents to the annexation.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
SUBCHAPTER D. FINANCIAL PROVISIONS
§ 3816.151. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS. (a) The board may not finance a service or an
improvement project under this chapter unless a written petition
requesting that service or improvement is filed with the board.
(b) The petition must be signed by:
(1) the owners of a majority of the assessed value of
real property in the district according to the most recent
certified tax appraisal roll for Collin County; or
(2) at least 25 owners of land in the district, if more
than 25 persons own property in the district according to the most
recent certified property tax appraisal roll for Collin County.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.152. 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.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.153. AUTHORITY TO IMPOSE AD VALOREM TAXES,
ASSESSMENTS, AND IMPACT FEES. The district may impose an ad
valorem tax, assessment, or impact fee as provided by Chapter 375,
Local Government Code, on all property in the district, including
industrial, commercial, or residential property, and may impose an
assessment on municipal property in the district to:
(1) finance or provide an improvement or service for a
project or activity this chapter authorizes the district to
construct, acquire, or improve; or
(2) provide or to make a payment under a contract.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.154. MAINTENANCE TAX. (a) If authorized at an
election held in accordance with Section 3816.159, the district may
impose an annual ad valorem tax on taxable property in the district
to:
(1) maintain and operate the district and the
improvements constructed or acquired by the district; or
(2) provide a service.
(b) The board shall determine the tax rate.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.155. CONTRACTS SECURED BY AD VALOREM TAXES. A
contract for which the payments are secured wholly or partly by ad
valorem taxes may not be executed unless the imposition of the ad
valorem taxes to secure the payment of the contract is approved by a
majority, or a larger percentage if constitutionally required, of
the voters in the district voting at an election held for that
purpose.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.156. ASSESSMENTS. (a) The board by resolution
may impose and collect an assessment for any purpose authorized by
this chapter.
(b) The district may impose an assessment against any
property of the City of Frisco in the district. Payment of an
assessment by another exempt jurisdiction must be established by
contract.
(c) The board may apportion the cost of an improvement
project or service to be assessed against property in the district
on all property in the district according to a finding of the board
that the improvement project or service benefits all property in
the district.
(d) The board may include two or more types of improvements
and services in one assessment proceeding. The board may conduct
separate assessment proceedings as the district undertakes
improvement projects or the provision of services.
(e) The board may adjust annual assessments for services in
accordance with an annual budget the board adopts for the provision
of those services. An annual adjustment may not exceed the annual
amount set forth in the original assessment proceedings except
after public notice and hearing on the increase.
(f) The board, after notice and hearing as provided by
Subchapter F, Chapter 375, Local Government Code, may:
(1) correct, add to, or delete assessments from its
assessment rolls; and
(2) collect assessments after making the corrections,
additions, or deletions.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.157. LIENS FOR ASSESSMENTS. (a) An assessment,
including an assessment resulting from an addition to or correction
of the assessment roll by the district, a reassessment, 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 proceeding.
(b) 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.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.158. UTILITY PROPERTY EXEMPT FROM ASSESSMENTS AND
IMPACT FEES. The district may not impose an assessment or impact
fee on the property of a person that provides gas, electricity,
telephone, sewage, or water service to the public.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.159. ELECTIONS REGARDING TAXES OR
BONDS. (a) In addition to the elections required under
Subchapter L, Chapter 375, Local Government Code, the district must
hold an election in the manner provided by that subchapter to obtain
voter approval before the district may:
(1) impose a maintenance tax; or
(2) issue a bond payable from ad valorem taxes or
assessments.
(b) The board may include more than one purpose in a single
proposition at an election.
(c) If the district obtains the written consent of all
property owners in the district to impose a maintenance tax or issue
bonds payable from ad valorem taxes or assessments, the district is
exempt from the election requirement under Subsection (a) and may
cancel an election called under Subsection (a).
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3816.160. 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.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
SUBCHAPTER E. DISSOLUTION
§ 3816.201. 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.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
