Bill Text: TX HB3568 | 2023-2024 | 88th Legislature | Comm Sub

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Bill Title: Relating to certain public facilities used to provide affordable housing; authorizing a fee; authorizing a penalty.

Spectrum: Slight Partisan Bill (Republican 42-27)

Status: (Introduced - Dead) 2023-04-20 - Committee report sent to Calendars [HB3568 Detail]

Download: Texas-2023-HB3568-Comm_Sub.html

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88R20425 JAM-F
By: Gates, Howard, Wilson, Paul, H.B. No. 3568
Morales of Harris
Substitute the following for H.B. No. 3568:
By: Lozano C.S.H.B. No. 3568

A BILL TO BE ENTITLED
AN ACT
relating to certain public facilities used to provide affordable
housing; authorizing a fee; authorizing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 303.021, Local Government Code, is
amended by adding Subsections (d) and (e) to read as follows:
(d) A corporation or a sponsor may finance, own, or operate
a multifamily residential development only if:
(1) a municipality, county, or housing authority is
the applicable sponsor;
(2) the corporation or sponsor complies with all
applicable provisions of this chapter; and
(3) the development is located:
(A) in the area of operation of the sponsor, if
the sponsor is a housing authority; or
(B) if the sponsor is not a housing authority,
inside the boundaries of the sponsor, without regard to whether the
sponsor is authorized to own property or provide services outside
the boundaries of the sponsor.
(e) A corporation sponsored by a municipal management
district may not finance, own, or operate a residential
development.
SECTION 2. Subchapter B, Chapter 303, Local Government
Code, is amended by adding Section 303.0415 to read as follows:
Sec. 303.0415. PROHIBITED CONFLICTS OF INTEREST FOR CERTAIN
PUBLIC FACILITIES. (a) In this section:
(1) "Immediate family member" means spouse, domestic
partner, cohabitant, child, stepchild, grandchild,
great-grandchild, parent, stepparent, mother-in-law,
father-in-law, son-in-law, daughter-in-law, grandparent,
great-grandparent, brother, sister, half-brother, half-sister,
stepsibling, brother-in-law, sister-in-law, aunt, uncle, niece,
nephew, or first cousin.
(2) "Public facility financial consulting services"
means financial consulting or advisory services with a value in
excess of $25,000 that are provided to a prospective public
facility user in connection with the user's application for
approval of the acquisition of an ownership interest or leasehold
or other possessory interest in a public facility that is a
multifamily residential development. The term does not include
legal, accounting, tax, or auditing services.
(b) A person may not own or obtain a direct or indirect
ownership interest in a public facility that is a multifamily
residential development, and may not provide or derive any material
economic benefit from the provision of public facility financial
consulting services associated with a public facility that is a
multifamily residential development, if the person is:
(1) a member of the governing body of a corporation's
sponsor;
(2) an elected member of the governing body of the
municipality, county, or school district in which a public facility
that is a multifamily residential development is located; or
(3) an immediate family member of a person described
by Subdivision (1) or (2).
(c) Subsection (b) does not apply to an elected official or
immediate family member of an elected official who owns:
(1) publicly traded equity, debt, or other securities
issued by an entity that provides public facility financial
consulting services; or
(2) any equity, debt, or other securities issued by
any public or private investment fund, mutual fund, real estate
investment trust, or other investment vehicle that directly or
indirectly owns an interest in any entity that provides public
facility financial consulting services.
SECTION 3. The heading to Section 303.042, Local Government
Code, is amended to read as follows:
Sec. 303.042. TAXATION; EXEMPTION.
SECTION 4. Subchapter B, Chapter 303, Local Government
Code, is amended by adding Section 303.0421, and a heading is added
to that section to read as follows:
Sec. 303.0421. MULTIFAMILY RESIDENTIAL DEVELOPMENTS OWNED
BY CORPORATIONS.
SECTION 5. Section 303.0421, Local Government Code, as
added by this Act, is amended by adding Subsections (a), (a-1),
(a-2), (c), (d), and (g) to read as follows:
(a) In this section:
(1) "Capital improvement" means a property
improvement that has a depreciable life of at least five years under
generally accepted accounting principles, excluding typical
expenses that are routine in making a multifamily residential unit
ready for lease after a turnover of the unit, including expenses for
plasterboard repair, interior painting, and floor coverings.
(2) "Moderate rehabilitation" means the expenditure
of capital improvements for a multifamily residential development
acquired by a corporation, in an aggregate amount of not less than
the product of $25,000 multiplied by the total number of units in
the development on the date of acquisition of the development by the
corporation, subject to Subsection (a-1).
(3) "Rent reduction" means the projected difference
between the rent charged for a unit subject to rent and income
restrictions under Section 303.0425 and the maximum market rate
rent that could be charged for that same unit without the rent and
income restrictions.
(a-1) The comptroller biennially shall adjust to reflect
inflation the amount specified by Subsection (a)(2) relating to the
expenditure of capital improvements for a multifamily residential
development. The board shall use 2021 as the base year for the
adjustment and in making the computation shall consider the
Consumer Price Index for All Urban Consumers, or its successor in
function, published by the United States Bureau of Labor
Statistics.
(a-2) This section applies to a multifamily residential
development that is owned by a corporation created under this
chapter, except that this section does not apply to a multifamily
residential development that:
(1) has at least 20 percent of its residential units
reserved for public housing units;
(2) participates in the Rental Assistance
Demonstration program administered by the United States Department
of Housing and Urban Development; or
(3) receives financial assistance administered under
Subchapter DD, Chapter 2306, Government Code.
(c) A corporation created under this chapter that proposes
to develop or acquire a multifamily residential development to
which Subsection (a-2) applies must hold a public hearing, at a
meeting of the governing body of the corporation's sponsor, to
approve the development.
(d) Notwithstanding Subsection (b), an occupied multifamily
residential development that is acquired by a corporation and to
which Subsection (a-2) applies is eligible for an exemption under
Section 303.042(c) for:
(1) the one-year period following the date of the
acquisition, regardless of whether the development complies with
the requirements of Subsections (b) and (c) and Sections
303.0425(b)-(h); and
(2) a year following the year described by Subdivision
(1) only if the development comes into compliance with the
requirements of Subsections (b) and (c) and Sections
303.0425(b)-(h) not later than the first anniversary of the date of
the acquisition.
(g) A corporation or a sponsor of a corporation may not
accept a payment from a public facility user or developer in
exchange for the corporation's or sponsor's participation in a
multifamily residential development without complying with the
requirements of this section.
SECTION 6. Sections 303.042(d), (e), and (f), Local
Government Code, are transferred to Section 303.0421, Local
Government Code, as added by this Act, redesignated as Sections
303.0421(b), (e), and (f), Local Government Code, and amended to
read as follows:
(b) Notwithstanding Section 303.042(c) and subject to
Subsections (c) and (d) of this section, an [(d) An] exemption
under Section 303.042(c) [this section] for a multifamily
residential development to which Subsection (a-2) applies is
available [which is owned by a public facility corporation created
by a housing authority under this chapter and which does not have at
least 20 percent of its units reserved for public housing units,
applies] only if:
(1) the requirements under Section 303.0425 are met
[housing authority holds a public hearing, at a regular meeting of
the authority's governing body, to approve the development]; [and]
(2) the corporation delivers to the presiding officer
of the governing body of each taxing unit in which the development
is to be located written notice of the development, at least 30 days
before the date:
(A) the corporation takes action to approve a new
multifamily residential development or the acquisition of an
occupied multifamily residential development; and
(B) of any public hearing required to be held
under this section;
(3) for a development proposed by a corporation whose
sponsor is a housing authority, the development is approved by or
receives a resolution of no objection from the governing body of the
municipality in which the development is located, if the
development is located in a municipality, or, if the development is
not located in a municipality, by the county in which the
development is located;
(4) for an occupied multifamily residential
development that is acquired by a corporation:
(A) the development is located at the time of
acquisition entirely within a census tract:
(i) that has a poverty rate of less than 20
percent; or
(ii) with a median household income in the
two highest quartiles among census tracts within the uniform state
service region in which the development is located; and
(B) a moderate rehabilitation of the development
is completed not later than the third anniversary of the date of
acquisition; and
(5) before final approval of the development under
Subsection (c):
(A) the corporation or corporation's sponsor
conducts, or obtains from a professional entity that has experience
underwriting affordable multifamily residential developments and
does not have financial interests in the applicable development,
public facility user, or developer, an underwriting assessment of
the proposed development to determine the appropriate category of
income-restricted units to require at the development; and
(B) based on the assessment conducted under
Paragraph (A), the corporation makes a good faith determination
that the total annual amount of rent reduction on the
income-restricted units provided at the development will be not
less than 60 percent of the estimated amount of the annual ad
valorem taxes that would be imposed on the property without an
exemption under Section 303.042(c), for:
(i) the first three years after the rent
stabilization period, for newly constructed developments; and
(ii) the second, third, and fourth years
after the date of acquisition by the corporation, for developments
occupied at the time of acquisition [at least 50 percent of the
units in the multifamily residential development are reserved for
occupancy by individuals and families earning less than 80 percent
of the area median family income].
(e) For the purposes of Subsection (a-2) [(d)], a "public
housing unit" is a residential [dwelling] unit for which the
landlord receives a public housing operating subsidy from the
federal Public Housing Operating Fund. It does not include a unit
for which payments are made to the landlord under the federal
Section 8 Housing Choice Voucher Program.
(f) Notwithstanding Sections 303.042(a) and (b)
[Subsections (a) and (b)], during the period [of time] that a
corporation owns a particular public facility that is a multifamily
residential development, a leasehold or other possessory interest
in the real property of the public facility granted by the
corporation shall be treated in the same manner as a leasehold or
other possessory interest in real property granted by an authority
under Section 379B.011(b).
SECTION 7. Subchapter B, Chapter 303, Local Government
Code, is amended by adding Sections 303.0425, 303.0426, and
303.0427 to read as follows:
Sec. 303.0425. ADDITIONAL REQUIREMENTS FOR BENEFICIAL TAX
TREATMENT RELATING TO CERTAIN PUBLIC FACILITIES. (a) In this
section:
(1) "Developer" means a private entity that works with
a corporation to propose or operate a multifamily residential
development as a public facility.
(2) "Extremely low income housing unit" means a
residential unit restricted for occupancy by an individual or
family whose annual median income is not more than the greater of:
(A) 30 percent of the area median income for the
household's place of residence, as adjusted for family size and as
established by the United States Department of Housing and Urban
Development; or
(B) 30 percent of the statewide median income, as
adjusted for family size and as established by the United States
Department of Housing and Urban Development.
(3) "Housing choice voucher program" means the housing
choice voucher program under Section 8, United States Housing Act
of 1937 (42 U.S.C. Section 1437f), including housing choice
vouchers provided through the Veteran's Affairs Supportive Housing
Program.
(4) "Low income housing unit" means a residential unit
restricted for occupancy by an individual or family whose annual
median income is not more than the greater of:
(A) 60 percent of the area median income for the
household's place of residence, as adjusted for family size and as
established by the United States Department of Housing and Urban
Development; or
(B) 60 percent of the statewide median income, as
adjusted for family size and as established by the United States
Department of Housing and Urban Development.
(5) "Moderate income housing unit" means a residential
unit restricted for occupancy by an individual or family whose
annual median income is not more than the greater of:
(A) 80 percent of the area median income for the
household's place of residence, as adjusted for family size and as
established by the United States Department of Housing and Urban
Development; or
(B) 80 percent of the statewide median income, as
adjusted for family size and as established by the United States
Department of Housing and Urban Development.
(6) "Public facility user" means a public-private
partnership entity or a developer or other private entity that has
an ownership interest or a leasehold or other possessory interest
in a public facility that is a multifamily residential development.
(7) "Very low income housing unit" means a residential
unit restricted for occupancy by an individual or family whose
annual median income is not more than the greater of:
(A) 50 percent of the area median income for the
household's place of residence, as adjusted for family size and as
established by the United States Department of Housing and Urban
Development; or
(B) 50 percent of the statewide median income, as
adjusted for family size and as established by the United States
Department of Housing and Urban Development.
(b) A multifamily residential development must reserve:
(1) at least:
(A) 12 percent of the units in the development as
moderate income housing units;
(B) 12 percent of the units in the development as
low income housing units; and
(C) 12 percent of the units in the development:
(i) as very low income housing units; or
(ii) for tenants assigned project-based
vouchers under the housing choice voucher program; or
(2) at least:
(A) 30 percent of the units in the development as
moderate income housing units; and
(B) 10 percent of the units in the development:
(i) as extremely low income housing units;
or
(ii) for tenants assigned project-based
vouchers under the housing choice voucher program.
(c) The monthly rent charged for an income-restricted
residential unit may not exceed:
(1) 30 percent of the monthly income restriction
applicable to the unit under this section; or
(2) for a unit occupied by a recipient of a housing
choice voucher, the greater of:
(A) the amount described by Subdivision (1); or
(B) the monthly payment standard used by the
housing authority that administers the voucher for the unit.
(d) In calculating the income of an individual or family for
an income-restricted residential unit, the public facility user
must use the definition of annual income described in 24 C.F.R.
Section 5.609, as implemented by the United States Department of
Housing and Urban Development. If the income of a tenant exceeds an
applicable limit at the time of the renewal of a lease agreement for
a residential unit, the provisions of Section 42(g)(2)(D), Internal
Revenue Code of 1986, apply in determining whether the unit may
still qualify as an extremely low, very low, low, or moderate income
housing unit.
(e) A multifamily residential development, other than an
occupied development acquired by a corporation, must reserve, for
each income category applicable to income-restricted residential
units, one third of the units for each income category as
three-bedroom units, one-third of the units for each income
category as two-bedroom units, and one-third of the units for each
income category as one-bedroom units.
(f) For an occupied multifamily residential development
acquired by a corporation, the percentage of moderate income
housing units, low income housing units, very low income housing
units, and extremely low income housing units reserved in each
category of residential units in the development, as based on the
number of bedrooms per unit, must be the same as the percentage of
each category of residential units reserved in the development as a
whole.
(g) Income-restricted residential units reserved under
Subsection (b) may not be smaller than:
(1) 550 square feet for a one-bedroom unit;
(2) 800 square feet for a two-bedroom unit; and
(3) 1,000 square feet for a three-bedroom unit.
(h) To qualify as a bedroom under this section, the bedroom
must meet the qualifications for a bedroom in the state's qualified
allocation plan under Subchapter DD, Chapter 2306, Government Code,
that is in effect on the date the development is approved by the
corporation or sponsor.
(i) The public facility user may not:
(1) refuse to rent a residential unit to an individual
or family because the individual or family participates in the
housing choice voucher program, if the assistance received by the
individual or family through the program is equal to or greater than
the amount established as the maximum monthly rent for the
applicable unit under Subsection (c); or
(2) use a financial or minimum income standard that
requires an individual or family participating in the housing
choice voucher program to have a monthly income of more than 250
percent of the individual's or family's share of the total monthly
rent payable for a unit.
(j) The public facility user shall:
(1) affirmatively market available residential units
directly to individuals and families participating in the housing
choice voucher program;
(2) notify local housing authorities of the
multifamily residential development's acceptance of tenants in the
housing choice voucher program; and
(3) include on the primary Internet website for the
development information about:
(A) the user's policy regarding the acceptance of
tenants participating in the housing choice voucher program; and
(B) the inclusion of income-restricted units
included in the development.
(k) Each lease agreement for a residential unit in a
multifamily residential development subject to this section must
provide that:
(1) the landlord may not retaliate against the tenant
or the tenant's guests by taking an action because the tenant
established, attempted to establish, or participated in a tenant
organization;
(2) the landlord may only choose to not renew the lease
if the tenant:
(A) is in material noncompliance with the lease,
including nonpayment of rent after the required cure period;
(B) committed one or more substantial violations
of the lease;
(C) failed to provide required information on the
income, composition, or eligibility of the tenant's household; or
(D) committed repeated minor violations of the
lease that:
(i) disrupt the livability of the property;
(ii) adversely affect the health and safety
of any person or the right to quiet enjoyment of the leased premises
and related development facilities;
(iii) interfere with the management of the
development; or
(iv) have an adverse financial effect on
the development, including the repeated failure of the tenant to
pay rent in a timely manner; and
(3) to not renew the lease, the landlord must serve a
written notice of proposed nonrenewal on the tenant not later than
the 30th day before the effective date of nonrenewal.
(l) A tenant may not waive the protections provided by
Subsection (k).
(m) Requirements under this subchapter that govern the
reservation of income-restricted residential units or the income
restrictions applicable to tenants of a multifamily residential
development must be documented in a land use restriction agreement
or a similar restrictive instrument that is recorded in the real
property records of the county in which the development is located.
Sec. 303.0426. AUDIT REQUIREMENTS RELATING TO CERTAIN
MULTIFAMILY RESIDENTIAL DEVELOPMENTS. (a) In this section:
(1) "Department" means the Texas Department of Housing
and Community Affairs.
(2) "Developer" has the meaning assigned by Section
303.0425.
(3) "Public facility user" has the meaning assigned by
Section 303.0425.
(b) The department shall conduct an audit of each public
facility user of a multifamily residential development claiming an
exemption under Section 303.042(c) and to which Section 303.0421
applies, to:
(1) determine whether the public facility user is in
compliance with Sections 303.0421 and 303.0425; and
(2) identify the difference in the rent charged for
income-restricted residential units and the estimated maximum
market rents that could be charged for those units without the rent
or income restrictions.
(c) The department shall conduct the audit required by
Subsection (b):
(1) for an occupied multifamily residential
development that is acquired by the corporation:
(A) annually for the first three years following
the date of acquisition; and
(B) each third year following the period
described by Paragraph (A); and
(2) for a multifamily residential development not
described by Subdivision (1):
(A) annually for the first three years following
the date of the issuance of the certificate of occupancy; and
(B) each third year following the period
described by Paragraph (A).
(d) The department shall complete and publish a report
regarding the findings of an audit conducted under this section.
The report must:
(1) be made available on the department's Internet
website;
(2) be issued to a public facility user that has an
interest in a development that is the subject of an audit; and
(3) describe in detail the nature of any failure to
comply with the requirements in Sections 303.0421 and 303.0425.
(e) The department shall adopt forms and reporting
standards for the auditing process.
(f) Not later than the 60th day after the date of receipt of
the department's audit report under Subsection (d)(2), a public
facility user shall provide a copy of the report to the comptroller,
the appraisal district containing the development that is the
subject of the report, the corporation, the governing body of the
corporation's sponsor, and, if the corporation's sponsor is a
housing authority, the elected officials that appointed the housing
authority's governing board.
(g) Not later than April 1 of each year for which an audit is
required under Subsection (c), a public facility user to which
Section 303.0421 applies shall pay to the department a fee of $40
per unit contained in the development, as determined by the audit,
to reimburse the department for expenses related to the audit.
(h) If an audit conducted under this section establishes
that a public facility user is not in compliance with the
requirements of Section 303.0425 because the user collected rent in
an amount that exceeded the amount of rent authorized under Section
303.0425(c) or rented an income-restricted residential unit to a
tenant not qualified for occupancy of that unit, the appraisal
district may impose on the public facility user a penalty in the
following amounts, as applicable:
(1) 125 percent of the amount by which the amount of
rent collected for income-restricted residential units exceeded
the amount of rent authorized to be charged for those units under
Section 303.0425(c); and
(2) 125 percent of the difference between the amount
of rent collected for an income-restricted residential unit
occupied by a tenant not qualified for occupancy of that unit and
the full market rental rate for the unit.
(i) A penalty collected under Subsection (h):
(1) may not be refunded before a final disposition of
any applicable appeal;
(2) is in addition to any other remedy provided by law;
and
(3) shall be distributed to each taxing unit with
jurisdiction over the development pro rata according to the
applicable ad valorem tax rate of the jurisdictions.
(j) An exemption under Section 303.042(c) does not apply for
a tax year in which a multifamily residential development that is
owned by a public facility corporation created under this chapter:
(1) is determined by an audit conducted under this
section to not be in compliance with the requirements of Sections
303.0421 and 303.0425; and
(2) fails to cure the noncompliance within the 60-day
period immediately following the date of receipt of the audit
establishing the noncompliance.
(k) An audit conducted under this section is subject to
disclosure under Chapter 552, Government Code, except that
information containing tenant names, unit numbers, or other tenant
identifying information may be redacted.
Sec. 303.0427. REPORTING REQUIREMENTS RELATING TO
MULTIFAMILY RESIDENTIAL DEVELOPMENTS. (a) Not later than April 30
of each year, a public facility corporation that owns a multifamily
residential development for which an exemption is claimed under
Section 303.042(c) shall provide to the comptroller and the Texas
Department of Housing and Community Affairs a report that includes:
(1) a list of each multifamily residential development
owned by the public facility corporation, including:
(A) the name of the development;
(B) the street address of the development,
including the municipality and county in which the development is
located;
(C) the number of residential units in the
development, reported by number of bedrooms per unit;
(D) a summary of the income and rent restrictions
applicable to the development, disaggregated by the category of
income restriction and the number of bedrooms per unit of each
category of income restriction; and
(E) the name of the public facility user
associated with each development; and
(2) a copy of all agreements between the public
facility corporation and the public facility user for the
development, if those agreements have not previously been submitted
to the comptroller and department.
(b) The comptroller shall:
(1) post a copy of the report received under
Subsection (a) on the comptroller's Internet website; and
(2) for each report submitted, collect from the
corporation submitting the report a reasonable fee not to exceed
the amount necessary to offset the comptroller's costs of
administering this section.
SECTION 8. Sections 392.005(c) and (d), Local Government
Code, are amended to read as follows:
(c) An exemption under this section for a multifamily
residential development which is owned by [(i) a public facility
corporation created by a housing authority under Chapter 303, (ii)]
a housing development corporation[,] or [(iii)] a similar entity
created by a housing authority, other than a public facility
corporation created by a housing authority under Chapter 303, and
which does not have at least 20 percent of its residential units
reserved for public housing units, applies only if:
(1) the authority holds a public hearing, at a regular
meeting of the authority's governing body, to approve the
development; and
(2) at least 50 percent of the units in the multifamily
residential development are reserved for occupancy by individuals
and families earning less than 80 percent of the area median
[family] income, adjusted for family size.
(d) For the purposes of Subsection (c), a "public housing
unit" is a residential [dwelling] unit for which the owner receives
a public housing operating subsidy. It does not include a unit for
which payments are made to the landlord under the federal Section 8
Housing Choice Voucher Program.
SECTION 9. (a) Subject to Subsections (b), (c), and (d) of
this section, Sections 303.0421 and 303.0425, Local Government
Code, as added by this Act, apply only to a tax imposed for a tax
year beginning on or after the effective date of this Act.
(b) Subject to Subsections (c) and (d) of this section,
Sections 303.0421 and 303.0425, Local Government Code, as added by
this Act, apply only to a multifamily residential development that
is approved on or after June 1, 2023, by a public facility
corporation or the sponsor of a public facility corporation, in
accordance with Chapter 303, Local Government Code. A multifamily
residential development that was approved by a public facility
corporation or the sponsor of a public facility corporation before
June 1, 2023, is governed by the law in effect on the date the
development was approved by the corporation or sponsor, and the
former law is continued in effect for that purpose. For purposes of
this subsection, a multifamily residential development is approved
on or after June 1, 2023, if the governing body of a public facility
corporation or the sponsor of a public facility corporation takes
initial action approving the development.
(c) Subject to Subsection (d) of this section, Section
303.0421(d), Local Government Code, as added by this Act, applies
only to an occupied multifamily residential development that is
acquired by a public facility corporation on or after June 1, 2023.
An occupied multifamily residential development that is acquired by
a public facility corporation before June 1, 2023, is governed by
the law in effect on the date the development was acquired by the
public facility corporation, and the former law is continued in
effect for that purpose. For purposes of this subsection, a
multifamily residential development is acquired on or after June 1,
2023, if the governing body of a public facility corporation or the
sponsor of a public facility corporation takes initial action
approving the acquisition of the development.
(d) Notwithstanding any other provision of this section:
(1) Sections 303.0426 and 303.0427, Local Government
Code, as added by this Act, apply to all multifamily residential
developments owned by a public facility corporation; and
(2) the initial report required to be submitted under
Section 303.0427(a), Local Government Code, as added by this Act,
by a public facility user of a multifamily residential development
must be submitted by April 1, 2024.
SECTION 10. Not later than January 1, 2024, the Texas
Department of Housing and Community Affairs shall adopt rules
necessary to implement Sections 303.0426 and 303.0427, Local
Government Code, as added by this Act.
SECTION 11. (a) Section 303.0426, Local Government Code,
as added by this Act, takes effect January 1, 2025.
(b) Except as otherwise provided by this Act, 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,
2023.