HB 4972
Cain’s Utility Transfer Ban Has A Bond Ordinance Escape Hatch
Died in committee
Verdict: Smells
Why it's charged
The hole
THE TEXT
…“authorized in the indenture, deed of trust, or ordinance providing”…
Bill text, introduced version (I)
The new ban says cities may not move utility revenue into the general fund, but the rewritten bond section says cities may do so anyway "notwithstanding" the ban, if the city's own bond ordinance or bond papers allow it. A city that has issued utility revenue bonds can write that permission into the ordinance it adopts, which lets the main case escape the ban.
The holeInitial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade
Caption
relating to the authority of a municipality to transfer revenue of a municipal utility to the general fund of the municipality.
Caption from analyzed text · version I.
Summary
Ban on utility transfers, unless the bond ordinance allows them. The city writes the ordinance!
The bill bans Texas cities from moving money earned by city-owned utilities, including drainage utilities, into the city's general fund. It touches every city that owns or controls a utility, and utilities run by nonprofits whose boards are appointed by cities. It also rewrites the utility bond law so a city can still make those transfers when its own bond ordinance or bond papers allow it, so many cities may keep the money moving.
Labels
Labels: NEVER GOT A HEARING. Filed Mar 13, 2025 and referred to the House Intergovernmental Affairs committee. No public hearing. The bill died.
Receipt
The receipt
89R-HB4972 · 2025-03-13
SOLD BY
ITEM
relating to the authority of a municipality to transfer revenue of a municipal utility to the general fund of the municipality.
WHAT IT DOES
Ban on utility transfers, unless the bond ordinance allows them. The city writes the ordinance!
The bill bans Texas cities from moving money earned by city-owned utilities, including drainage utilities, into the city's general fund. It touches every city that owns or controls a utility, and utilities run by nonprofits whose boards are appointed by cities. It also rewrites the utility bond law so a city can still make those transfers when its own bond ordinance or bond papers allow it, so many cities may keep the money moving.
CHARGES
[x] THE HOLEanalysis confidence 65%
THE TEXT
…“authorized in the indenture, deed of trust, or ordinance providing”…
Bill text, introduced version (I)
The new ban says cities may not move utility revenue into the general fund, but the rewritten bond section says cities may do so anyway "notwithstanding" the ban, if the city's own bond ordinance or bond papers allow it. A city that has issued utility revenue bonds can write that permission into the ordinance it adopts, which lets the main case escape the ban.
TOTAL
No fiscal note in the loaded record.
HISTORY
- Filed
- Read first time
- Referred to Intergovernmental Affairs
FILED UNDER
No verified beat found.
THANK YOU FOR CHECKING THE RECEIPT
CAMPAIGN PAID FOR BY
CAMPAIGN PAID FOR BY
Donors
Not tied to this bill.
Sources
The author's campaign account only. Own money and internal transfers are separate on the member page.
Derived itemized flow · Oct 28, 2024 to May 28, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Teans for Lawsuit Reform PAC$5,000.00
Teans for Lawsuit Reform PAC
$5,000.00
- Cash
- $5,000.00
- Paid by others
- $0.00
- Total
- $5,000.00
Also funds 0 other sitting lawmakers.
Derived recipient stock · on Jul 3, 2025. State data as of Nov 4, 2026.
Name match, not a verified identity: normalized filed name and state.
Sources
Derived itemized flow · on Jul 3, 2025. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 101033926.
Missing data does not establish zero giving. Display amounts are rounded.
Teans for Lawsuit Reform PAC
$5,000.00
- Cash
- $5,000.00
- Paid by others
- $0.00
- Total
- $5,000.00
Also funds 0 other sitting lawmakers.
Derived recipient stock · on Jul 3, 2025. State data as of Nov 4, 2026.
Name match, not a verified identity: normalized filed name and state.
Sources
Derived itemized flow · on Jul 3, 2025. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 101033926.
Votes
No floor vote loaded for this bill.
Fiscal
No fiscal note in the loaded record.
How this was graded
Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.
Sources
Texas House · Filed Mar 13, 2025
04/03/2025 H Referred to Intergovernmental Affairs: Apr 3 2025 12:38PM
Texas Legislature Online · Introduced
Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.
House committee · Intergovernmental Affairs · Final status: Died in committee
Subjects
City Government--Finance
City Government--Utilities
Text
The text as introduced · 387 words
89R2686 CS-D By: Cain H.B. No. 4972 A BILL TO BE ENTITLED AN ACT relating to the authority of a municipality to transfer revenue of a municipal utility to the general fund of the municipality. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 1502.059, Government Code, is amended to read as follows: Sec. 1502.059. TRANSFER OF REVENUE TO GENERAL FUND. Notwithstanding Section 1502.058(a) of this chapter, Section 552.049 or Section 552.916, Local Government Code, or a similar law or municipal charter provision, a municipality and its officers and utility trustees may transfer to the municipality's general fund and may use for general or special purposes revenue of any municipally owned utility system in the amount and to the extent authorized in the indenture, deed of trust, or ordinance providing for and securing payment of public securities issued under this chapter or similar law. SECTION 2. Section 552.049, Local Government Code, is amended to read as follows: Sec. 552.049. SEGREGATION OF INCOME. (a) The income of a drainage utility system must be segregated and completely identifiable in municipal accounts. (b) A [ If drainage charges are solely for the cost of service, the ] municipality may not transfer the income of a drainage utility system [ charges in whole or in part ] to the municipal general fund [ , except for any part collected outside municipal boundaries and except for any part pledged to retire any outstanding indebtedness or obligation incurred, or as a reserve for future construction, repair, or maintenance of the drainage system. If the governing body has levied, in the drainage charge, an amount in contribution to the funding of future system improvements, including replacement, new construction, or extension, that amount is not transferable to the general fund ]. SECTION 3. Subchapter Z, Chapter 552, Local Government Code, is amended by adding Section 552.916 to read as follows: Sec. 552.916. PROHIBITION ON TRANSFER OF MUNICIPAL UTILITY REVENUE. (a) In this section, "municipal utility" means any utility owned, operated, or controlled by a municipality or by a nonprofit corporation whose directors are appointed by one or more municipalities. (b) Notwithstanding any other law, a municipality may not transfer revenue from a municipal utility to the general fund of the municipality. SECTION 4. This Act takes effect September 1, 2025.