88R6451 MCF-D
 
  By: Wilson H.B. No. 5171
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of a special district to exercise a right
  or power outside the district's 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.  SPECIAL DISTRICT RIGHTS AND POWERS LIMITATION
         Sec. 3001.001.  DEFINITION. In this chapter, "special
  district" means a political subdivision of this state with a
  limited geographic area created for a special purpose by local law
  or under general law.  The term does not include a school district.
         Sec. 3001.002.  RIGHTS AND POWERS LIMITED TO BOUNDARIES.
  (a)  Notwithstanding any other law, except as provided by
  Subsection (c), a special district may not exercise any right or
  power outside the district's boundaries on or after September 1,
  2023.
         (b)  This section prevails over a special law governing a
  special district.
         (c)  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.  After September 1,
  2023, a special district may 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.  This Act takes effect September 1, 2023.