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.