BILL ANALYSIS

Senate Research Center	S.B. 1546
88R6451 MCF-D	By: Bettencourt
	Local Government
	4/6/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Special districts are political subdivisions of the State that are created for special purposes by local law or under general law.  When special districts are created, they are created for a specific or local reason.  Some special districts have begun exercising rights and powers granted to them by special or general law, well outside of the district's boundaries.

S.B. 1546 seeks to restrict a special district's rights and powers to the jurisdictional boundaries of the special district.

As proposed, S.B. 1546 amends current law relating to the authority of a special district to exercise a right or power outside the district's boundaries.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subtitle Z, Title 10, Government Code, by adding Chapter 3001, as follows:

CHAPTER 3001. SPECIAL DISTRICT RIGHTS AND POWERS LIMITATION

Sec. 3001.001. DEFINITION. Defines "special district."

Sec. 3001.002. RIGHTS AND POWERS LIMITED TO BOUNDARIES. (a) Prohibits a special district, notwithstanding any other law, except as provided by Subsection (c), from exercising any right or power outside the district's boundaries on or after September 1, 2023.

(b) Provides that this section prevails over a special law governing a special district.

(c) Provides that 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. Authorizes a special district, after September 1, 2023, to continue to exercise a right or power 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. Effective date: September 1, 2023.