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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a municipality to transfer revenue of a |
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municipal utility to the general fund of the municipality. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Z, Chapter 552, Local Government |
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Code, is amended by adding Section 552.915 to read as follows: |
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Sec. 552.915. PROHIBITION ON TRANSFER OF MUNICIPAL UTILITY |
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REVENUE. (a) In this section: |
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(1) "Municipal utility" means a utility system owned, |
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operated, or controlled by a municipality. |
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(2) "Utility system" has the meaning assigned by |
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Section 552.914. |
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(b) Notwithstanding any other law, a municipality may not |
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transfer revenue from a municipal utility to the general fund of the |
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municipality if the transfer would result in a rate increase or |
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financial deficit for the municipal utility. |
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(c) A municipal utility may not include transfers of revenue |
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from a municipal utility to the general fund of the municipality in |
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the municipal utility's cost of service study. |
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SECTION 2. This Act takes effect September 1, 2023. |