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  H.B. No. 2207
 
 
 
 
AN ACT
  relating to a bill payment assistance program, and the authority of
  the board of trustees to set rates, for certain municipal utility
  systems.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  (a)  Section 1502.056(a), Government Code, is
  amended to read as follows:
         (a)  If the revenue of a utility system, park, or swimming
  pool secures the payment of public securities issued or obligations
  incurred under this chapter, each expense of operation and
  maintenance, including all salaries, labor, materials, interest,
  repairs and extensions necessary to provide efficient service, and
  each proper item of expense, is a first lien against that
  revenue.  For a municipality with a population of more than one
  million but less than two million, the first lien against the
  revenue of a municipally owned [electric or gas] utility system
  that secures the payment of public securities issued or obligations
  incurred under this chapter also applies to funding, as a necessary
  operations expense, for a bill payment assistance program for
  utility system customers who have been threatened with
  disconnection from service for nonpayment of bills and who have
  been determined by the municipality to be low-income customers.
         (b)  Notwithstanding any other provision of this Act, this
  section takes effect immediately if this Act receives a vote of
  two-thirds of all the members elected to each house, as provided by
  Section 39, Article III, Texas Constitution.  If this Act does not
  receive the vote necessary for immediate effect, this section takes
  effect September 1, 2011.
         SECTION 2.  Section 552.141, Local Government Code, is
  amended to read as follows:
         Sec. 552.141.  APPLICABILITY OF SUBCHAPTER. This subchapter
  applies only to a home-rule municipality that owns or may own a
  water, wastewater, storm water, or drainage utility system, by
  ordinance or charter elects to have the management and control of
  two or more of those utility systems governed by this subchapter,
  and:
               (1)  has outstanding obligations payable solely from
  and secured by a lien on and pledge of the net revenue of one or more
  of those systems; or
               (2)  issues obligations that are payable solely from
  and secured by a lien on and pledge of the net revenue of one or more
  of those systems.
         SECTION 3.  Section 552.142(a), Local Government Code, is
  amended to read as follows:
         (a)  A municipality by ordinance may transfer management and
  control of two or more of its water, wastewater, storm water, or
  drainage systems to a board of trustees. A municipality by
  ordinance may grant the board authority to set rates and related
  terms for the systems.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2207 was passed by the House on April
  7, 2011, by the following vote:  Yeas 140, Nays 4, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 2207 on May 26, 2011, by the following vote:  Yeas 142, Nays 0,
  1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2207 was passed by the Senate, with
  amendments, on May 23, 2011, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor