| 1 | 1 | | 88R10098 ANG-D |
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| 2 | 2 | | By: Schwertner S.B. No. 1110 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the authority of a municipality to transfer revenue of a |
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| 8 | 8 | | municipal utility to the general fund of the municipality. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter Z, Chapter 552, Local Government |
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| 11 | 11 | | Code, is amended by adding Section 552.915 to read as follows: |
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| 12 | 12 | | Sec. 552.915. PROHIBITION ON TRANSFER OF MUNICIPAL UTILITY |
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| 13 | 13 | | REVENUE. (a) In this section: |
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| 14 | 14 | | (1) "Municipal utility" means a utility system owned, |
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| 15 | 15 | | operated, or controlled by a municipality. |
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| 16 | 16 | | (2) "Utility system" has the meaning assigned by |
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| 17 | 17 | | Section 552.914. |
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| 18 | 18 | | (b) Notwithstanding any other law, a municipality may not |
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| 19 | 19 | | transfer revenue from a municipal utility to the general fund of the |
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| 20 | 20 | | municipality if the transfer would result in a rate increase or |
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| 21 | 21 | | financial deficit for the municipal utility. |
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| 22 | 22 | | (c) A municipal utility may not include transfers of revenue |
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| 23 | 23 | | from a municipal utility to the general fund of the municipality in |
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| 24 | 24 | | the municipal utility's cost of service study. |
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| 25 | 25 | | SECTION 2. This Act takes effect September 1, 2023. |
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