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By:  Davis of Harris                                              H.B. No. 3536


A BILL TO BE ENTITLED
AN ACT
relating to the creation of the NASA Area Management District; providing authority to levy assessments, impose taxes and issue bonds. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. NASA AREA MANAGEMENT DISTRICT. Subtitle C, Title 4, Special District Local Laws Code, is amended by adding Chapter ___ to read as follows:
CHAPTER . NASA AREA MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. .001. DEFINITIONS. In this chapter: (1) "Board" means the board of directors of the district. (2) "District" means the NASA Area Management District. Sec. .002. NASA AREA MANAGEMENT DISTRICT. (a) The NASA Area Management District is a special district created under Section 59, Article XVI, Texas Constitution. (b) The board by resolution may change the name of the district. Sec. .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 Act. (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 area of the district. (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. (d) 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. Sec. .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 development and diversification of the economy of the state; and (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. Sec. .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 bonds for a purpose for which the district is created or to pay the principal of and interest on the bonds; (3) right to impose or collect an assessment or tax; or (4) legality or operation. Sec. .006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All or any part of the area of the district is eligible, notwithstanding other statutory criteria, 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 by a municipality under Chapter 2303, Government Code. Sec. .007. 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 if the governing body of the City of Nassau Bay consents by resolution or ordinance to the annexation. Sec. .008. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS LAW. Except as otherwise provided by this chapter, Chapter 375, Local Government Code, applies to the district. Sec. .009. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter.
[Sections .010- .050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. .051. BOARD OF DIRECTORS; 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. Sec. .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 council and the mayor vote to appoint that person. (b) Section 375.063, Local Government Code, does not apply to the district. Sec. .053. NONVOTING DIRECTORS. (a) The following persons serve as nonvoting directors: (1) the chairman 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. Sec. .054. QUORUM. For purposes of determining the requirements for a quorum of the board, 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. .055. INITIAL VOTING DIRECTORS. (a) The initial board consists of the following directors: Pos. No. Name of Director 1 2 3 4 5 6 7 (b) Of the initial voting directors, the terms of directors appointed for positions 1 through 4 expire June 1, 2007, and the terms of directors appointed for positions 5 through 7 expire June 1, 2009. (c) Section .052 does not apply to this section. (d) This section expires September 1, 2010.
[Sections .056- .100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. .101. ADDITIONAL POWERS OF DISTRICT. The district may exercise the powers given to: (1) a 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 projects described by that section; and (2) a housing finance corporation under Chapter 394, Local Government Code, to provide housing or residential development projects in the district. Sec. .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 the board of directors of a local government corporation created under Chapter 431, Transportation Code; provided that they need not live in the district. Sec. .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. .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 Nassau Bay to provide law enforcement services in the district for a fee. Sec. .105. APPROVAL BY CITY OF NASSAU BAY. (a) Except as provided by Subsection (b), the district must obtain the approval of the City of Nassau Bay's governing body for: (1) the issuance of bonds for each improvement project; (2) the imposition of a sales and use tax; (3) the imposition of an assessment on residential property other than apartments; (4) the plans and specifications of the improvement project financed by bonds; and (5) the plans and specifications of any district 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 for the issuance of bonds, the imposition of a sales and use tax, and the imposition of an assessment on residential property under Subsection (a) must be a resolution by the City of Nassau Bay. The approval obtained for plans and specifications must be a permit issued by the City of Nassau Bay. (c) If the district obtains approval from the governing body of the City of Nassau Bay for 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 may condition its consent to the issuance of bonds and the imposition of a sales and use tax. In consenting to the imposition of a sales and use tax, the City of Nassau Bay may require that the district abolish or decrease the rate of its sales and use tax in the event that the district's sales and use tax rate, when combined with all other local sales and use taxes applicable in the district, exceed the maximum local sales and use tax rate allowed by state law. Sec. .106. 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. .107. 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) The district has all of the powers and authority of a municipality under Chapter 380, Local Government Code. Sec. .108. NO EMINENT DOMAIN. The district may not exercise the power of eminent domain.
[Sections .109- .150 reserved for expansion]
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. .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. .152. PETITION REQUIRED FOR FINANCING SERVICES AND IMPROVEMENTS WITH ASSESSMENTS. (a) The district may acquire, construct, finance, operate and maintain any improvement or service authorized pursuant to this Act or Chapter 375, Local Government Code, using all funds available to the district. 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 as determined by 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 as determined by the most recent certified tax appraisal roll for Harris County; (3) the owners of a majority of the surface area of the 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 in the district subject to assessment as determined by the board. Sec. .153. 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. Sec. .154. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The board by resolution may impose and collect an assessment in all or part of the district for any purpose authorized by this chapter. (b) An assessment, 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 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 a 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. (e) Section 375.161, Local Government Code, does not apply to the district. Sec. .155. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND ASSESSMENTS. (a) 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. (b) If the district, in the exercise of the powers conferred on it by this Act, requires or requests the relocation, rerouting, or removal of electric, gas, water, sewer, communications, or other public utilities, as defined by Sections 31.002, 101.003, 121.001, or 51.002, Utilities Code, the relocation, rerouting, or removal shall be at the sole expense of the district. Sec. .156. BONDS AND OTHER OBLIGATIONS. (a) The district may issue bonds or other obligations, by competitive bid or negotiated sale, payable wholly or partly from sales and use 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) In exercising the district's power to borrow, 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) Section 375.243, Local Government Code, does not apply to the district. Sec. .157. SALES AND USE TAX; EXCISE TAX. (a) For purposes of this section: (1) "Taxable items" includes all items subject to any sales and use tax that could be imposed by the city if the city has imposed a sales and use tax. (2) "Use" with respect to a taxable service, means the derivation in the district of a direct or indirect benefit from the service. (b) The district may impose a sales and use tax for the benefit of the district, without any requirement of an election to authorize the tax. (c) If the district adopts a sales and use tax: (1) a tax is imposed on the receipts from the sale at retail of taxable items in the district; and (2) an excise tax is imposed on the use, storage, or other consumption in the district of taxable items purchased or rented from a retailer during the period that the tax is effective in the district. (d) The rate of the excise tax is the same as the rate of the sales tax portion of the tax applied to the sales price of the taxable items and is included in the sales tax. The proceeds of the sales and use tax shall be used for the purposes for which the district was created. Sec. .158. IMPOSITION, COMPUTATION, ADMINISTRATION, AND GOVERNANCE OF SALES AND USE TAX. (a) Chapter 321, Tax Code, to the extent not inconsistent with this Act, governs the imposition, application, collection, and administration of a sales and use tax under this Act, except that sections 321.401-321.406, Tax Code, do not apply. Subtitles A and B, Title 2, and Chapter 151, Tax Code, govern the administration and enforcement of the taxes under this Act. (b) Chapter 321, Tax Code, does not apply to the use and allocation of revenues under this Act. (c) In applying Chapter 321, Tax Code, the district's name shall be substituted for references in that chapter to "the municipality" and the district's board is substituted for references in that chapter to "governing body." (d) The adoption of a tax rate or change in the tax rate takes effect as provided in Chapter 321, Tax Code. (e) The sales and use tax may not be abolished so long as the district has debt secured thereby outstanding. The board, with consent of the city, by order may abolish the local sales and use tax without an election. (f) In the event of an annexation by the district, the sales and use tax shall be automatically applicable to the annexed area. Not later than the 10th day after the date on which the district annexes or excludes territory, the board shall send to the comptroller a certified copy of any resolution, order, or ordinance relating to the annexation or exclusion. Sec. .159. 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. Sec. .160. COMPETITIVE BIDDING. Section 375.221, Local Government Code, applies to the district only for a contract that has a value greater than $25,000. Sec. .161. 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 .162- .200 reserved for expansion]
SUBCHAPTER E. DISSOLUTION
Sec. .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. SECTION 2. BOUNDARIES. As of the effective date of this Act, the NASA Area Management District includes all territory contained in the following described area: BEGINNING AT A POINT located at the intersection of the south right-of-way line of NASA Parkway and the city limit of the City of Nassau Bay, located in the City of Nassau Bay, Harris County, Texas; THENCE, in a southeasterly direction approximately 3400 feet following the city limit line between the City of Nassau Bay and the City of Webster to the southwest corner of the Nassau Bay Homeowners Association marina and yacht club property; THENCE, in a northeasterly direction approximately 365 feet following the southern property line of the Nassau Bay Homeowners Association marina and yacht club to the eastern property line; THENCE, in a northwesterly direction approximately 590 feet following the eastern property line of the Nassau Bay Homeowners Association marina and yacht club to the northern property line; THENCE, in a westerly direction approximately 160 feet following the northern property line of the Nassau Bay Homeowners Association marina and yacht club to the western property line; THENCE, in a generally southwesterly direction approximately 420 feet following the western property line of the Nassau Bay Homeowners Association marina and yacht club to the city limit line of the City of Nassau Bay; THENCE, in a northwesterly direction for approximately 1550 feet to the northwest corner of the Saxony Place Townhomes; THENCE, in a northeasterly direction approximately 460 feet following the northern property lines of the Saxony Place Townhomes to the eastern right-of-way line of Nassau Bay Drive; THENCE, in a northerly direction approximately 25 feet following the eastern right-of-way line of Nassau Bay Drive to the southwest corner of the Nassau Bay Baptist Church property; THENCE, in an easterly direction approximately 410 feet following the southern property line of the Nassau Bay Baptist Church to the southeast corner of the property; THENCE, in a northwesterly direction 500 feet along the eastern property line of the Nassau Bay Baptist Church to the northwest corner of Nassau Bay Section One; THENCE, in a northeasterly direction approximately 765 feet following the northern subdivision line of Nassau Bay Section One to a point; THENCE, in a southeasterly direction approximately 207 feet following the subdivision line of Nassau Bay Section One to a point; THENCE, in a northeasterly direction approximately 440 feet following the subdivision line of Nassau Bay Section One to a point; THENCE, in a northwesterly direction approximately 105 feet following the subdivision line of Nassau Bay Section One to a point; THENCE in a northeasterly direction approximately 440 feet following the subdivision line of Nassau Bay Section One to the western right-of-way of Point Lookout Drive; THENCE, in a southeasterly direction approximately 1100 feet following the western right-of-way of Point Lookout Drive to a point; THENCE, in a northeasterly direction approximately 60 feet to the southwest corner of the St. Paul Catholic Church property; THENCE, in a northeasterly direction approximately 385 feet following the southern property line of the St. Paul Catholic Church; THENCE, in a northwesterly direction approximately 700 feet following the eastern property line of the St. Paul Catholic Church; THENCE, in a southwesterly direction approximately 340 feet following the northern property line of the St. Paul Catholic Church to the eastern right-of-way of Point Lookout Drive; THENCE, in a northwesterly direction approximately 335 feet to a point; THENCE, in a northeasterly direction approximately 985 feet following the northern property lines of the Queens Court Townhomes to the northeast corner of that subdivision; THENCE, in a southeasterly direction approximately 320 feet following the western property line of the Queens Court Townhomes to the southeast corner of that subdivision; THENCE, in a southwesterly direction approximately 350 feet following the southern property line of the Queens Court Townhomes to a point; THENCE, in a southeasterly direction approximately 10 feet following the property line of the Queens Court Townhomes to a point; THENCE, in a southwesterly direction approximately 165 feet following the southern property line of the Queens Court Townhomes to the western right-of-way line of Vinland Drive; THENCE, in a southeasterly direction approximately 690 feet following the east right-of-way line of Vinland Drive to the southern right-of-way line of San Sebastian Lane; THENCE, in a northeasterly direction approximately 330 feet following the southern right-of-way line of San Sebastian Lane to the western right-of-way line of Vinland Drive; THENCE, in a southeasterly direction approximately 940 feet following the western right-of-way line of Vinland Drive to the southern right-of-way line of Martinique Drive; THENCE, in a northeasterly direction approximately 500 feet along the southern right-of-way line of Martinique Drive to the western right-of-way line of Upper Bay Drive; THENCE, in a southerly direction approximately 760 feet along the western right-of-way line of Upper Bay Road to the northern right-of-way line of Prince William Lane; THENCE, in an easterly direction approximately 70 feet to the easterly right-of-way line of Upper Bay Road; THENCE, in a generally southerly and easterly direction approximately 3350 feet following the property lines along the western and southern shore of Nassau Bay to the City of Nassau Bay property generally known as "the peninsula"; THENCE, in a southerly direction approximately 440 feet to the city limit line of the City of Nassau Bay in the Clear Creek channel; THENCE, in a northeasterly direction approximately 5300 feet following the Clear Creek channel along the city limit line of the City of Nassau Bay to a point in Clear Lake; THENCE, in northwesterly direction approximately 2000 feet to the southwestern corner of the Swan Lagoon subdivision along the northern shoreline of Clear Lake; THENCE, in a northwesterly direction approximately 230 feet along the western boundary of the Swan Lagoon subdivision to the southern right-of-way line of Surf Court; THENCE, in a northwesterly direction approximately 1115 feet following the southern and then eastern boundary line of Surf Court to the northern property line of the Clippers Square subdivision; THENCE in a northeasterly direction approximately 750 feet following the northern property line of the Clipper's Square subdivision to the eastern right-of-way line of Lagoon Drive; THENCE, in a northerly direction approximately 485 feet along the eastern right-of-way line of Lagoon Drive to the south right-of-way line of NASA Parkway; THENCE, in a northeasterly direction approximately 2230 feet following the southern right-of-way line of NASA Parkway to the western right-of-way line of Lakeside Lane; THENCE, in a southeasterly direction approximately 400 feet along the western right-of-way line of Lakeside Lane to a point; THENCE, in a northeasterly direction approximately 405 feet along the southern property line of the Hilton Hotel to the eastern property boundary; THENCE, in a generally northeasterly direction approximately 1150 feet following the property lines along the western shoreline of Clear Lake to the city limits of the City of Nassau Bay; THENCE, in a northwesterly direction approximately 330 feet following the city limit line of the City of Nassau Bay to the northern right-of-way line of NASA Parkway; THENCE in a southwesterly direction approximately 9500 feet following the northern right-of-way line of NASA Parkway to the city limits of the City of Webster; THENCE, in a southeasterly direction approximately 180 feet following the city limits of the City of Webster to the southern right-of-way line of NASA Parkway; THENCE in a southwesterly direction approximately 750 feet following the southern right-of-way line of NASA Parkway to the POINT OF BEGINNING. 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, 2005.