88R10098 ANG-D
By: Schwertner S.B. No. 1110
A BILL TO BE ENTITLED
AN ACT
relating to the authority of a municipality to transfer revenue of a
municipal utility to the general fund of the municipality.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 552, Local Government
Code, is amended by adding Section 552.915 to read as follows:
Sec. 552.915. PROHIBITION ON TRANSFER OF MUNICIPAL UTILITY
REVENUE. (a) In this section:
(1) "Municipal utility" means a utility system owned,
operated, or controlled by a municipality.
(2) "Utility system" has the meaning assigned by
Section 552.914.
(b) Notwithstanding any other law, a municipality may not
transfer revenue from a municipal utility to the general fund of the
municipality if the transfer would result in a rate increase or
financial deficit for the municipal utility.
(c) A municipal utility may not include transfers of revenue
from a municipal utility to the general fund of the municipality in
the municipal utility's cost of service study.
SECTION 2. This Act takes effect September 1, 2023.