Bill Text: TX SB2518 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to the authority of certain special districts and corporations created by certain special districts to exercise certain rights and powers outside district boundaries.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2025-04-03 - Referred to Local Government [SB2518 Detail]
Download: Texas-2025-SB2518-Introduced.html
| 89R1776 MCF-D | ||
| By: Bettencourt | S.B. No. 2518 | |
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| relating to the authority of certain special districts and | ||
| corporations created by certain special districts to exercise | ||
| certain rights and powers outside district boundaries. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle Z, Title 10, Government Code, is | ||
| amended by adding Chapter 3001 to read as follows: | ||
| CHAPTER 3001. LIMITATION OF RIGHTS AND POWERS OF CERTAIN SPECIAL | ||
| DISTRICTS AND CORPORATIONS | ||
| Sec. 3001.001. DEFINITIONS. In this chapter: | ||
| (1) "Corporation" and "special district" have the | ||
| meanings assigned by Section 303.003, Local Government Code. | ||
| (2) "Private entity" has the meaning assigned by | ||
| Section 2267.001. | ||
| Sec. 3001.002. CERTAIN RIGHTS AND POWERS LIMITED TO | ||
| BOUNDARIES. (a) Notwithstanding any other law and except as | ||
| provided by Subsection (d), on or after September 1, 2025: | ||
| (1) a special district or a corporation created by a | ||
| special district may not acquire, purchase, construct, | ||
| rehabilitate, renovate, repair, equip, furnish, finance, own, or | ||
| lease a multifamily residential development located outside the | ||
| district's boundaries; and | ||
| (2) a corporation created by a special district may | ||
| not grant a leasehold or other possessory interest in real property | ||
| outside the district's boundaries to a private entity if the | ||
| leasehold or other interest would result in an exemption from ad | ||
| valorem taxation under Section 303.042, Local Government Code, for | ||
| the private entity. | ||
| (b) A contract, agreement, or action of a special district | ||
| or a corporation created by a special district that violates | ||
| Subsection (a) is void. | ||
| (c) This section prevails over a special law governing a | ||
| special district. | ||
| (d) This chapter does not diminish or impair the rights of | ||
| the holders of any outstanding and unpaid debts, bonds, warrants, | ||
| or other obligations of a special district or a corporation created | ||
| by a special district. After September 1, 2025, a special district | ||
| or a corporation created by a special district may continue to | ||
| exercise a right or power prohibited by Subsection (a) outside the | ||
| district as provided by other law only as necessary to pay or | ||
| fulfill any outstanding and unpaid debts, bonds, warrants, or other | ||
| obligations. | ||
| SECTION 2. 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, 2025. | ||
