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