Relating to security deposits collected by a municipal utility district.

HB 2471 requires municipal utility districts to apply security deposit deductions only to the tenant or landlord directly responsible for damages or charges, rather than using one party's deposit to cover the other's liabilities. It directly affects landlords and tenants who pay separate security deposits for utility services through municipal districts. The bill amends the Water Code to prohibit districts from deducting costs from a deposit belonging to a party not responsible for the damages. The law takes effect immediately if approved by a two-thirds vote, otherwise on September 1, 2025. This changes how districts handle deposit refunds but does not alter deposit amounts or create new fees.