S.B. No. 1243 amends Section 572.053 of the Local Government Code to provide new provisions regarding the participation and dissolution of public utility agencies. The bill allows public entities that participate 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, if a public entity is the only remaining participant, it may dissolve the agency by ordinance.

The bill emphasizes the procedural framework for both the addition and removal of entities, as well as the dissolution process, thereby clarifying the authority and responsibilities of public entities involved in public utility agencies. This legislation is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Local Government Code 572.053 (Local Government Code 572)
Senate Committee Report: Local Government Code 572.053 (Local Government Code 572)
Engrossed: Local Government Code 572.053 (Local Government Code 572)
House Committee Report: Local Government Code 572.053 (Local Government Code 572)
Enrolled: Local Government Code 572.053 (Local Government Code 572)