The bill amends the Government Code and Local Government Code to clarify the authority of municipalities regarding the transfer of revenue from municipal utility systems to their general funds. Specifically, it allows municipalities and their officers to transfer revenue from municipally owned utility systems to the general fund, provided that such transfers are authorized in the relevant financial documents. However, it also introduces a prohibition on transferring revenue from municipal utilities to the general fund, stating that municipalities cannot do so, regardless of other laws.

Additionally, the bill modifies the existing regulations concerning drainage utility systems, mandating that their income must be segregated and identifiable in municipal accounts. It removes previous provisions that allowed for the transfer of drainage utility charges to the general fund under certain conditions, thereby tightening the restrictions on such transfers. The bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Government Code 1502.059, Local Government Code 552.049 (Local Government Code 552, Government Code 1502)