SB 2518
Bettencourt Bill Bars Special Districts From Out-Of-District Apartments
Died in committee
Verdict: No flags
Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade
Caption
relating to the authority of certain special districts and corporations created by certain special districts to exercise certain rights and powers outside district boundaries.
Caption from analyzed text · version I.
Summary
Their corporations too. No tax-exempt out-of-district leases to private companies, and rule-breaking deals are void.
The bill bars special districts and the corporations they create from buying, building, financing, owning or leasing apartment complexes outside their own boundaries. It also bars those corporations from handing out-of-district property leases to private companies when the lease would make the property exempt from property tax. Any deal that breaks these rules is void, though existing debts and bonds can still be paid off.
Labels
Labels: NEVER GOT A HEARING. Filed Mar 13, 2025 and referred to the Senate Local Government committee. No public hearing. The bill died.
Receipt
The receipt
89R-SB2518 · 2025-03-13
SOLD BY
ITEM
relating to the authority of certain special districts and corporations created by certain special districts to exercise certain rights and powers outside district boundaries.
WHAT IT DOES
Their corporations too. No tax-exempt out-of-district leases to private companies, and rule-breaking deals are void.
The bill bars special districts and the corporations they create from buying, building, financing, owning or leasing apartment complexes outside their own boundaries. It also bars those corporations from handing out-of-district property leases to private companies when the lease would make the property exempt from property tax. Any deal that breaks these rules is void, though existing debts and bonds can still be paid off.
CHARGES
[ ] NONE FOUND
TOTAL
No fiscal note in the loaded record.
HISTORY
- Received by the Secretary of the Senate
- Filed
- Read first time
- Referred to Local Government
FILED UNDER
THE TEXT
“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”
Bill text, introduced version (I)
The bill limits special districts and their corporations from financing or owning apartment projects outside their boundaries.
PROPERTY TAX RELIEF THAT ISN'T
THE TEXT
…“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”
Bill text, introduced version (I)
The bill stops district corporations from using out-of-district leases to take property off the tax rolls for private companies.
THANK YOU FOR CHECKING THE RECEIPT
CAMPAIGN PAID FOR BY
CAMPAIGN PAID FOR BY
Donors
Donors report through Friends of Paul Bettencourt.
Not tied to this bill.
Sources
The author's campaign account only. Own money and internal transfers are separate on the member page.
Derived itemized flow · Oct 27, 2024 to Jun 30, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
MoneyMissing data does not establish zero giving. Display amounts are rounded.
Votes
No floor vote loaded for this bill.
Fiscal
No fiscal note in the loaded record.
How this was graded
Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.
Sources
Texas Senate · Filed Mar 13, 2025
04/03/2025 S Referred to Local Government
Texas Legislature Online · Introduced
Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.
Senate committee · Local Government · Final status: Died in committee
Subjects
Corporations & Associations
Special Districts & Authorities--Miscellaneous
Text
The text as introduced · 401 words
89R1776 MCF-D By: Bettencourt S.B. No. 2518 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, 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 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, 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 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, 2025.