CHAPTER 3842. NASA AREA MANAGEMENT DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 4. DEVELOPMENT AND IMPROVEMENT
SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT
CHAPTER 3842. NASA AREA MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3842.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the district.
(2) "District" means the NASA Area Management District.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.002. NASA AREA MANAGEMENT DISTRICT. The district is a
special district created under Section 59, Article XVI, Texas
Constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.003. 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
Nassau Bay, 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 territory.
(c) This chapter and the creation of the district may not be
interpreted to relieve Harris County or the City of Nassau Bay
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.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.004. 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; and
(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.
(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.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 3 of the Act
enacting this chapter, as that territory may have been modified
under:
(1) Subchapter J, Chapter 49, Water Code;
(2) Section 3842.108; or
(3) other law.
(b) The boundaries and field notes of the district contained in
Section 3 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 a sales and use
tax; or
(4) legality or operation.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. 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
Nassau Bay or another governmental entity under Chapter 311, Tax
Code;
(2) a tax abatement reinvestment zone created by the City of
Nassau Bay or another governmental entity under Chapter 312, Tax
Code; or
(3) an enterprise zone created by the City of Nassau Bay or
another governmental entity under Chapter 2303, Government Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS
LAW. Except as otherwise provided by this chapter, Chapter 375,
Local Government Code, applies to the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.008. 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.
589, Sec. 2, eff. June 16, 2007.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3842.051. 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 governing body of the City of Nassau Bay may change the
number of voting directors on the board. The board may not
consist of fewer than five or more than 15 voting directors.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.052. APPOINTMENT OF DIRECTORS. (a) The mayor and
members of the governing body of the City of Nassau Bay shall
appoint voting directors. A person is appointed if a majority of
the members of the governing body, including the mayor, vote to
appoint that person.
(b) Section 375.063, Local Government Code, does not apply to
the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.053. NONVOTING DIRECTORS. (a) The following persons
serve as nonvoting directors:
(1) the presiding officer of the City of Nassau Bay's planning
and zoning commission;
(2) the City of Nassau Bay's director of public works; and
(3) the City of Nassau Bay's chief of police.
(b) If a department described by Subsection (a) is consolidated,
renamed, or changed, the board may appoint a director of the
consolidated, renamed, or changed department as a nonvoting
director. If a department described by Subsection (a) is
abolished, the board may appoint a representative of another
department that performs duties comparable to those performed by
the abolished department.
(c) The board may appoint other nonvoting directors to serve at
the pleasure of the voting directors.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.054. QUORUM. For purposes of determining whether a
quorum of the board is present, 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.
589, Sec. 2, eff. June 16, 2007.
For expiration of this section, see Subsection (c).
Sec. 3842.055. INITIAL VOTING DIRECTORS. (a) The mayor and
members of the governing body of the City of Nassau Bay shall
appoint the initial seven voting directors by position.
(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) This section expires September 1, 2012.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3842.101. ADDITIONAL POWERS OF DISTRICT. The district may
exercise the powers given to:
(1) a 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; and
(2) a housing finance corporation under Chapter 394, Local
Government Code, to provide housing or residential development
projects in the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.027, eff. September 1, 2009.
Sec. 3842.102. 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. A director of the corporation is not
required to reside in the district.
(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.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.103. 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.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.104. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT. To
protect the public interest, the district may contract with a
qualified provider, including Harris County or the City of Nassau
Bay, to provide law enforcement services in the district for a
fee.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.105. APPROVAL BY CITY OF NASSAU BAY. (a) Except as
provided by Subsection (c), the district must obtain the approval
of the City of Nassau Bay for:
(1) the issuance of bonds for an improvement project;
(2) the imposition of a sales and use tax;
(3) the plans and specifications of an improvement project
financed by the bonds; and
(4) the plans and specifications of an improvement project
related to the use of land owned by the City of Nassau Bay, an
easement granted by the City of Nassau Bay, or a right-of-way of
a street, road, or highway.
(b) The approval obtained under Subsection (a)(1) or (2) must be
a resolution or ordinance of the governing body of the City of
Nassau Bay. The approval obtained under Subsection (a)(3) or (4)
may be by an administrative process that does not involve the
city's governing body.
(c) If the district obtains the approval of the City of Nassau
Bay'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 further approval from the City of Nassau Bay.
(d) The City of Nassau Bay and the district may agree on
conditions for obtaining the approval of the city under this
section, including an agreement for the approval of a sales and
use tax that requires the district to abolish or decrease the
rate of the tax if the rate, when combined with other local sales
and use taxes, results in a combined tax rate that exceeds the
maximum rate under Section 321.101(f), Tax Code, at any location
in the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.106. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
district may join and pay dues to an organization that:
(1) is exempt from the payment of federal income taxes under
Section 501(a), Internal Revenue Code of 1986, by being listed as
an exempt organization 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.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.107. ECONOMIC DEVELOPMENT PROGRAMS AND OTHER POWERS
RELATED TO PLANNING AND DEVELOPMENT. (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) 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.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.108. ANNEXATION. In addition to the authority to
annex territory under Subchapter J, Chapter 49, Water Code, the
district may by board resolution annex territory located in the
City of Nassau Bay if the city's governing body by ordinance or
resolution consents to the annexation.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.109. NO EMINENT DOMAIN. The district may not exercise
the power of eminent domain.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 3842.151. 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.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.152. 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.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.153. 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 assessment according to the
most recent certified tax appraisal roll for Harris County;
(2) at least 25 persons who own real property in the district,
if more than 25 persons own real property in the district
according to the most recent certified tax appraisal roll for
Harris County;
(3) the owners of a majority of the surface area of real
property in the district subject to assessment as determined by
the board; or
(4) the owners of a majority of the number of platted lots of
real property subject to assessment as determined by the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.154. METHOD OF NOTICE FOR HEARING. The district may
mail the notice required by Section 375.115(c), Local Government
Code, by certified United States mail or an equivalent service
that can provide a record of mailing or other delivery.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.155. 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
an ad valorem tax lien against real property is enforced.
(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.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.156. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND
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.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.157. 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) Section 375.243, Local Government Code, does not apply to
the district.
(c) The limitation on the outstanding principal amount of bonds,
notes, and other obligations provided by Section 49.4645(a),
Water Code, does not apply to the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.158. CITY NOT REQUIRED TO PAY DISTRICT OBLIGATIONS.
Except as provided by Section 375.263, Local Government Code, the
City of Nassau Bay is not required to pay a bond, note, or other
obligation of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.159. COMPETITIVE BIDDING. Section 375.221, Local
Government Code, applies to the district only for a contract that
has a value greater than $50,000.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.160. 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.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.161. TAX INCREMENT FINANCING POWERS. (a) The
district may designate all or any part of the district as a tax
increment reinvestment zone, and the district may use tax
increment financing under Chapter 311, Tax Code, in the manner
provided by that chapter for a municipality, except as modified
by this section.
(b) The district has all powers provided under Chapter 311, Tax
Code.
(c) The district and an overlapping taxing unit may enter into
an interlocal agreement for the payment of all or a portion of
the tax increment of the unit to the district.
(d) For the purpose of tax increment financing under this
section, the board functions as the board of directors of the
reinvestment zone. Section 311.009, Tax Code, does not apply to
the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
SUBCHAPTER E. SALES AND USE TAX
Sec. 3842.201. 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.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.202. 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.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.203. AUTHORIZATION. The district may adopt a sales
and use tax for the benefit of the district. The board is not
required to call an election to adopt the tax.
Added by Acts 2007, 80th Leg., R.S., Ch.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.204. ABOLISHING SALES AND USE TAX. (a) Except as
provided in Subsection (b), the board, with the consent of the
governing body of the City of Nassau Bay, 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.
589, Sec. 2, eff. June 16, 2007.
Sec. 3842.205. SALES AND USE TAX RATE. (a) On adoption of the
tax authorized by this subchapter, there is imposed a tax at the
rate authorized by the district on the receipts from the sale at
retail of taxable items within the district, and an excise tax on
the use, storage, or other consumption within the district of
taxable items purchased, leased, or rented from a retailer within
the district during the period that the tax is in effect.
(b) The board shall determine the tax rate. The rate may not
exceed the rate authorized by the governing body of the City of
Nassau Bay.
(c) With the consent of the governing body of the City of Nassau
Bay, the board may reduce the tax rate to the extent the
reduction does not impair any outstanding debt or other
obligations payable from the tax.
(d) 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.
589, Sec. 2, eff. June 16, 2007.
SUBCHAPTER F. DISSOLUTION
Sec. 3842.251. 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.
589, Sec. 2, eff. June 16, 2007.