By: Bettencourt  S.B. No. 1546
         (In the Senate - Filed March 3, 2023; March 16, 2023, read
  first time and referred to Committee on Local Government;
  May 3, 2023, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 8, Nays 0; May 3, 2023, sent
  to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1546 By:  Hall
 
 
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.
 
  * * * * *