| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
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, 2023: |
|
|
(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, 2023, 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, 2023. |