SB 2518

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
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
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
(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
(b)  A contract, agreement, or action of a special district
or a corporation created by a special district that violates
(c)  This section prevails over a special law governing a
(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
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.