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Senate Bill 1430 |
Senate Author: Van de Putte |
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Effective: 5-22-07 |
House Sponsor: Puente |
Current law provides that, if a municipal utility system's revenue is used to secure payment of public securities issued or obligations incurred by the municipality, the utility system's routine maintenance and operation expenses are a first lien against that revenue. Senate Bill 1430, applicable to a municipally owned electric or gas utility, amends the Government Code to specify that, in a municipality with a population of more than one million, funding for a bill payment assistance program for low-income system customers who have been threatened with service disconnection for nonpayment of bills is a necessary operations expense to be included in the other expenses in the first lien against system revenue.