Texas · Through 89th 2nd Called Legislative Session, 2025

Tex. Local Government Code § 572.053: CHANGES IN PUBLIC ENTITIES PARTICIPATING IN OR DISSOLUTION OF PUBLIC UTILITY AGENCY.

(a) The public entities that participate in a public utility agency may by concurrent ordinances:
(1) add a public entity to, or delete a public entity from, participation in the public utility agency; or
(2) dissolve the public utility agency and transfer all obligations, assets, permits, and licenses of the public utility agency to the remaining public entities.
Text of subsection as added by Acts 2025, 89th Leg., R.S., Ch. 810 (S.B. 1243), Sec. 1
(b) A public entity that is the only remaining participant in a public utility agency may by ordinance dissolve the public utility agency in accordance with Subsection (a)(2).
Text of subsection as added by Acts 2025, 89th Leg., R.S., Ch. 90 (S.B. 1169), Sec. 5
(b) A participating public entity may withdraw from a public utility agency by providing an ordinance or resolution of the governing body of the participating public entity to the agency not later than the 180th day before the proposed date of withdrawal. A participating public entity may not withdraw from a public utility agency under this subsection if bonds, notes, or other obligations of the agency are secured by the revenues of the participating public entity, unless the agency adopts a resolution approving the withdrawal. Upon withdrawal, a participating public entity assumes the outstanding debt attributable to that entity from the agency on a prorated basis equal to that entity's benefit and has, without compensation from the agency, no further rights, duties, or obligations relating to the agency or ability to receive service from the facilities of the agency.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 19, eff. Sept. 1, 1999.
Renumbered from Local Government Code, Section 422.053 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(c)(2), eff. April 1, 2009.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 667 (S.B. 1596), Sec. 2, eff. June 17, 2011.
Acts 2025, 89th Leg., R.S., Ch. 90 (S.B. 1169), Sec. 5, eff. May 20, 2025.
Acts 2025, 89th Leg., R.S., Ch. 810 (S.B. 1243), Sec. 1, eff. September 1, 2025.

Where this section sits in the code

LOCAL GOVERNMENT CODE
TITLE 13. WATER AND UTILITIES
SUBTITLE C. WATER PROVISIONS APPLYING TO MORE THAN ONE TYPE OF LOCAL GOVERNMENT
CHAPTER 572. PUBLIC UTILITY AGENCIES FOR PROVISION OF WATER OR SEWER SERVICE
SUBCHAPTER C. PUBLIC UTILITY AGENCIES

(a) The public entities that participate in a public utility agency may by concurrent ordinances:

(1) add a public entity to, or delete a public entity from, participation in the public utility agency; or

(2) dissolve the public utility agency and transfer all obligations, assets, permits, and licenses of the public utility agency to the remaining public entities.

Text of subsection as added by Acts 2025, 89th Leg., R.S., Ch. 810 (S.B. 1243), Sec. 1

(b) A public entity that is the only remaining participant in a public utility agency may by ordinance dissolve the public utility agency in accordance with Subsection (a)(2).

Text of subsection as added by Acts 2025, 89th Leg., R.S., Ch. 90 (S.B. 1169), Sec. 5

(b) A participating public entity may withdraw from a public utility agency by providing an ordinance or resolution of the governing body of the participating public entity to the agency not later than the 180th day before the proposed date of withdrawal. A participating public entity may not withdraw from a public utility agency under this subsection if bonds, notes, or other obligations of the agency are secured by the revenues of the participating public entity, unless the agency adopts a resolution approving the withdrawal. Upon withdrawal, a participating public entity assumes the outstanding debt attributable to that entity from the agency on a prorated basis equal to that entity's benefit and has, without compensation from the agency, no further rights, duties, or obligations relating to the agency or ability to receive service from the facilities of the agency.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 19, eff. Sept. 1, 1999.

Renumbered from Local Government Code, Section 422.053 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(c)(2), eff. April 1, 2009.

Amended by:

Acts 2011, 82nd Leg., R.S., Ch. 667 (S.B. 1596), Sec. 2, eff. June 17, 2011.

Acts 2025, 89th Leg., R.S., Ch. 90 (S.B. 1169), Sec. 5, eff. May 20, 2025.

Acts 2025, 89th Leg., R.S., Ch. 810 (S.B. 1243), Sec. 1, eff. September 1, 2025.

Collected 2026-08-27T01:47:27Z. Source file · JSON

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