| 1 | 1 | | 89R1776 MCF-D |
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| 2 | 2 | | By: Bettencourt S.B. No. 2518 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the authority of certain special districts and |
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| 10 | 10 | | corporations created by certain special districts to exercise |
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| 11 | 11 | | certain rights and powers outside district boundaries. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Subtitle Z, Title 10, Government Code, is |
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| 14 | 14 | | amended by adding Chapter 3001 to read as follows: |
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| 15 | 15 | | CHAPTER 3001. LIMITATION OF RIGHTS AND POWERS OF CERTAIN SPECIAL |
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| 16 | 16 | | DISTRICTS AND CORPORATIONS |
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| 17 | 17 | | Sec. 3001.001. DEFINITIONS. In this chapter: |
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| 18 | 18 | | (1) "Corporation" and "special district" have the |
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| 19 | 19 | | meanings assigned by Section 303.003, Local Government Code. |
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| 20 | 20 | | (2) "Private entity" has the meaning assigned by |
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| 21 | 21 | | Section 2267.001. |
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| 22 | 22 | | Sec. 3001.002. CERTAIN RIGHTS AND POWERS LIMITED TO |
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| 23 | 23 | | BOUNDARIES. (a) Notwithstanding any other law and except as |
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| 24 | 24 | | provided by Subsection (d), on or after September 1, 2025: |
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| 25 | 25 | | (1) a special district or a corporation created by a |
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| 26 | 26 | | special district may not acquire, purchase, construct, |
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| 27 | 27 | | rehabilitate, renovate, repair, equip, furnish, finance, own, or |
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| 28 | 28 | | lease a multifamily residential development located outside the |
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| 29 | 29 | | district's boundaries; and |
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| 30 | 30 | | (2) a corporation created by a special district may |
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| 31 | 31 | | not grant a leasehold or other possessory interest in real property |
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| 32 | 32 | | outside the district's boundaries to a private entity if the |
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| 33 | 33 | | leasehold or other interest would result in an exemption from ad |
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| 34 | 34 | | valorem taxation under Section 303.042, Local Government Code, for |
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| 35 | 35 | | the private entity. |
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| 36 | 36 | | (b) A contract, agreement, or action of a special district |
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| 37 | 37 | | or a corporation created by a special district that violates |
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| 38 | 38 | | Subsection (a) is void. |
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| 39 | 39 | | (c) This section prevails over a special law governing a |
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| 40 | 40 | | special district. |
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| 41 | 41 | | (d) This chapter does not diminish or impair the rights of |
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| 42 | 42 | | the holders of any outstanding and unpaid debts, bonds, warrants, |
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| 43 | 43 | | or other obligations of a special district or a corporation created |
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| 44 | 44 | | by a special district. After September 1, 2025, a special district |
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| 45 | 45 | | or a corporation created by a special district may continue to |
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| 46 | 46 | | exercise a right or power prohibited by Subsection (a) outside the |
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| 47 | 47 | | district as provided by other law only as necessary to pay or |
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| 48 | 48 | | fulfill any outstanding and unpaid debts, bonds, warrants, or other |
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| 49 | 49 | | obligations. |
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| 50 | 50 | | SECTION 2. This Act takes effect immediately if it receives |
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| 51 | 51 | | a vote of two-thirds of all the members elected to each house, as |
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| 52 | 52 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 53 | 53 | | Act does not receive the vote necessary for immediate effect, this |
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| 54 | 54 | | Act takes effect September 1, 2025. |
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