Relating to the authority of a municipality to transfer revenue of a municipal utility to the general fund of the municipality.

HB 4972 amends Texas law to clarify municipal utility revenue rules. It adds Section 552.916 to prohibit municipalities from transferring revenue from municipal utilities (like water or sewer systems) to the general fund, overriding earlier provisions that allowed such transfers under specific conditions. The bill explicitly states that "a municipality may not transfer revenue from a municipal utility to the general fund" (Section 552.916(b)), creating a clear restriction. This directly affects municipalities managing public utilities by limiting how they can use utility-generated revenue. The bill takes effect September 1, 2025.