Monitoring the Session

HB 2867

bill capping late fees at city water utilities

Died in committee

Verdict: No flags

No flagsInitial review
Rep. Gary GatesRHouse 28

Initial 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 late payment fees charged by a municipally owned water utility.

Caption from analyzed text · version I.

Summary

Greater of $5 or 2, 5 or 10 percent, depending on lateness.

The bill caps the late fees a city-owned water or sewer utility can charge, on a sliding scale of the greater of $5 or 2, 5 or 10 percent of the past-due amount, depending on how long the bill has been late. It touches city water and sewer utilities and the households and businesses that pay them. Late-fee clocks cannot start until 21 days after the bill is sent and must stop once the customer pays, starting with fees charged after the law takes effect, immediately or on September 1, 2025.

Labels

Labels: ACROSS THE AISLE. Joint authors: 3 Republicans, 2 Democrats. Party as the Legislative Reference Library lists it for the 89th Legislature.GOT HALFWAY. Passed the House on May 12, 2025. Died in the Senate: never got out of the Water, Agriculture and Rural Affairs committee.

Receipt

The receipt

89R-HB2867 · 2025-02-14

SOLD BY

Rep. Gary GatesRHouse 28 Rep. Senfronia ThompsonDHouse 141 Rep. Janie LopezRHouse 37

+ 2 more authors, 38 coauthors

ITEM

relating to late payment fees charged by a municipally owned water utility.

WHAT IT DOES

Greater of $5 or 2, 5 or 10 percent, depending on lateness.

The bill caps the late fees a city-owned water or sewer utility can charge, on a sliding scale of the greater of $5 or 2, 5 or 10 percent of the past-due amount, depending on how long the bill has been late. It touches city water and sewer utilities and the households and businesses that pay them. Late-fee clocks cannot start until 21 days after the bill is sent and must stop once the customer pays, starting with fees charged after the law takes effect, immediately or on September 1, 2025.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version H · source

Sources

Fiscal note · version H · April 27, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Natural Resources
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Testimony taken/registration(s) recorded in committee
  7. Left pending in committee
  8. Considered in formal meeting
  9. Committee substitute considered in committee
  10. Reported favorably as substituted
  11. Comte report filed with Committee Coordinator
  12. Committee report distributed
  13. Committee report sent to Calendars
  14. Considered in Calendars
  15. Placed on General State Calendar
  16. Read 2nd time
  17. Amended 1-Gates
  18. Record vote RV#2100
  19. Statement(s) of vote recorded in Journal
  20. Passed to engrossment as amended
  21. Record vote RV#2101
  22. Statement(s) of vote recorded in Journal
  23. Read 3rd time
  24. Passed
  25. Record vote RV#2137
  26. Statement(s) of vote recorded in Journal
  27. Reported engrossed
  28. Received from the House
  29. Read first time
  30. Referred to Water, Agriculture, & Rural Affairs
FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 135 yea · 8 nay

Sources

House: Final passage · May 12, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Gary Gates

Donors

Texas Conservative Majority PAC$273KTexans for Lawsuit Reform PAC$224KTexans for Reasonable Solutions PAC$25K

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 30, 2024 to Oct 23, 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.

Texas Conservative Majority PAC$273,400.00

Texas Conservative Majority PAC

$273,400.00

Cash
$150,000.00
Paid by others
$123,400.00
Total
$273,400.00
canvassing $108,000.00polling $15,400.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Aug 17, 2026 to Oct 23, 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.

Report IDs: 101068223, 101071943.

Texans for Lawsuit Reform PAC$224,000.08

Texans for Lawsuit Reform PAC

$224,000.08

Cash
$35,000.00
Paid by others
$189,000.08
Total
$224,000.08
mail $87,600.08advertising $68,500.00polling $32,900.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 23, 2025 to Oct 22, 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.

Report IDs: 101010390, 101033067, 101068223, 101071943.

Texans for Reasonable Solutions PAC$25,000.00

Texans for Reasonable Solutions PAC

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 81 other sitting lawmakers.

Derived recipient stock · Aug 23, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Jul 30, 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.

Report IDs: 101068223.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texas Conservative Majority PAC

$273,400.00

Cash
$150,000.00
Paid by others
$123,400.00
Total
$273,400.00
canvassing $108,000.00polling $15,400.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Aug 17, 2026 to Oct 23, 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.

Report IDs: 101068223, 101071943.

×

Texans for Lawsuit Reform PAC

$224,000.08

Cash
$35,000.00
Paid by others
$189,000.08
Total
$224,000.08
mail $87,600.08advertising $68,500.00polling $32,900.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 23, 2025 to Oct 22, 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.

Report IDs: 101010390, 101033067, 101068223, 101071943.

×

Texans for Reasonable Solutions PAC

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 81 other sitting lawmakers.

Derived recipient stock · Aug 23, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Jul 30, 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.

Report IDs: 101068223.

Votes3

House May 12, 2025

Yea
135
Nay
8
Present, not voting
1
Absent
3
Excused
3
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2137

HB 2867 was passed by (Record 2137): 135 Yeas, 8 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 135 (published)
  • Nay: 8 (published)
  • Present, not voting: 1 (published)
  • Absent: 3 (derived from named list)
  • Excused: 3 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 10, 2025

Yea
119
Nay
5
Present, not voting
1
Absent
4
Excused
21
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2101

CSHB 2867, as amended, was passed to engrossment by (Record 2101): 119 Yeas, 5 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 119 (published)
  • Nay: 5 (published)
  • Present, not voting: 1 (published)
  • Absent: 4 (derived from named list)
  • Excused: 21 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 10, 2025

Yea
121
Nay
1
Present, not voting
1
Absent
6
Excused
21
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2100

Amendment No. 1 was adopted by (Record 2100): 121 Yeas, 1 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 121 (published)
  • Nay: 1 (published)
  • Present, not voting: 1 (published)
  • Absent: 6 (derived from named list)
  • Excused: 21 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses7
For
0
Against
6
On
1
Names

Against

  • City of Buda1 registration
  • City of Dallas1 registration
  • City of Garland1 registration
  • City of Irving1 registration
  • San Antonio Water System1 registration
  • San Marcos TX Utilities1 registration

On

  • City of Georgetown1 registration
Sources

7 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version H · source

Sources

Fiscal note · version H · April 27, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

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 Feb 14, 2025

05/13/2025 S Referred to Water, Agriculture, & Rural Affairs

Texas Legislature Online · Introduced · House Committee Report · Engrossed

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Coauthors
Keith BellRHouse 4 Benjamin BumgarnerRHouse 63 Terry CanalesDHouse 40 Pat CurryRHouse 56 Drew DarbyRHouse 72 Mark DorazioRHouse 122 Ryan GuillenRHouse 31 Sam HarlessRHouse 126 Richard HayesRHouse 57 Cole HefnerRHouse 5 Hillary HicklandRHouse 55 Janis HoltRHouse 18 Lacey HullRHouse 138 Suleman LalaniDHouse 76 Jeff LeachRHouse 67 Mitch LittleRHouse 65 Oscar LongoriaDHouse 35 AJ LouderbackRHouse 30 J. M. LozanoRHouse 43 Armando "Mando" MartinezDHouse 39 Don McLaughlinRHouse 80 Morgan MeyerRHouse 108 Terry MezaDHouse 105 Matt MorganRHouse 26 Tom OliversonRHouse 130 Claudia OrdazDHouse 79 Jared PattersonRHouse 106 Dennis PaulRHouse 129 Richard Peña RaymondDHouse 42 Ron ReynoldsDHouse 27 John T. SmitheeRHouse 86 James TalaricoDHouse 50 Carl H. TepperRHouse 84 Ellen TroxclairRHouse 19 Cody VasutRHouse 25 Hubert VoDHouse 149 Terry M. WilsonRHouse 20 Gene WuDHouse 137

House committee · Natural Resources · Committee vote 10 aye, 1 nay, 2 absent · Out of committee

Senate committee · Water, Agriculture and Rural Affairs · Final status: Died in committee

Subjects

City Government--Utilities

Fees & Other Nontax Revenue--Local

Utilities--Water & Sewer

Text

The text as introduced · 341 words

89R6359 ANG-D

By: Gates
H.B. No. 2867

A BILL TO BE ENTITLED

AN ACT

relating to late payment fees charged by a municipally owned water

utility.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter Z, Chapter 552, Local Government

Code, is amended by adding Section 552.916 to read as follows:

Sec. 552.916. LATE PAYMENT FEES FOR WATER OR SEWER SERVICE.

(a) A municipal utility that provides water or sewer service may

not charge a late payment fee that:

(1) before the 32nd day of the late payment penalty

period is more than the greater of:

(A) $5; or

(B) two percent of the amount past due;

(2) on or after the 32nd day but before the 41st day of

the late payment penalty period is more than the greater of:

(A) $5; or

(B) five percent of the amount past due; or

(3) on or after the 41st day but before the 51st day of

the late payment penalty period is more than the greater of:

(A) $5; or

(B) 10 percent of the amount past due.

(b) A late payment penalty period may not begin before the

21st day after the date the municipal utility mails or transmits

electronically the customer's bill.

(c) A late payment penalty period must end on the date the

customer pays all past due amounts to the municipal utility.

SECTION 2. The changes in law made by this Act apply only to

a fee charged on or after the effective date of this Act. A fee

charged before the effective date of this Act is governed by the law

in effect on the date the fee was charged, and the former law is

continued in effect for that purpose.

SECTION 3. 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, 2025.