The bill, S.B. No. 1243, amends Section 572.053 of the Local Government Code to provide new provisions regarding the dissolution of public utility agencies. It allows public entities participating in a public utility agency to make changes through concurrent ordinances, which include adding or deleting entities from participation, as well as the ability to dissolve the agency entirely. Upon dissolution, all obligations, assets, permits, and licenses of the public utility agency would be transferred to the remaining public entities.

Additionally, the bill specifies that if a public entity is the only remaining participant in a public utility agency, it may dissolve the agency by ordinance in accordance with the new provisions. This legislation is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Local Government Code 572.053 (Local Government Code 572)