HB 685: cities can’t charge tax-exempt groups higher water rates

Caption

relating to rates established by municipalities for water or sewer service for certain entities.

Summary

Sewer too. The exemption alone can’t be the reason.

The bill bars Texas cities from charging higher water or sewer rates only to groups that qualify for a sales tax or property tax exemption. It touches city-run water and sewer utilities and tax-exempt entities such as those that hold those exemptions. Starting September 1, 2025, a city cannot single out tax-exempt customers for a higher rate than other customers getting comparable service.

Labels

Labels: DO-OVER. Reworked text of a bill filed before that died: 88R HB 4328 (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.QUICK READ: 117 WORDS. The bill as filed runs 117 words, counting the existing law it amends and the text it strikes. The median 89R bill as filed runs 441 words (derived, 8,702 graded bills, snapshot Oct 19, 2026).

Receipt

The receipt

89R-HB685 · 2024-11-12

SOLD BY

Rep. Cecil Bell Jr.RHouse 3

ITEM

relating to rates established by municipalities for water or sewer service for certain entities.

WHAT IT DOES

Sewer too. The exemption alone can’t be the reason.

The bill bars Texas cities from charging higher water or sewer rates only to groups that qualify for a sales tax or property tax exemption. It touches city-run water and sewer utilities and tax-exempt entities such as those that hold those exemptions. Starting September 1, 2025, a city cannot single out tax-exempt customers for a higher rate than other customers getting comparable service.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · May 8, 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

Nov 12, 2024Filed
Mar 4, 2025Read first time
Mar 4, 2025Referred to Natural Resources
Mar 26, 2025Scheduled for public hearing on . . .
Mar 26, 2025Considered in public hearing
Mar 26, 2025Left pending in committee
Apr 2, 2025Considered in public hearing
Apr 2, 2025Reported favorably w/o amendment(s)
Apr 8, 2025Comte report filed with Committee Coordinator
Apr 8, 2025Committee report distributed
Apr 8, 2025Committee report sent to Calendars
Apr 17, 2025Considered in Calendars
Apr 22, 2025Placed on General State Calendar
Apr 22, 2025Read 2nd time
Apr 22, 2025Passed to engrossment
Apr 22, 2025Record vote RV#358
Apr 23, 2025Read 3rd time
Apr 23, 2025Passed
Apr 23, 2025Record vote RV#407
Apr 23, 2025Reported engrossed
Apr 24, 2025Received from the House
Apr 24, 2025Read first time
Apr 24, 2025Referred to Water, Agriculture, & Rural Affairs
May 12, 2025Scheduled for public hearing on . . .
May 12, 2025Considered in public hearing
May 12, 2025Vote taken in committee
May 13, 2025Co-sponsor authorized
May 13, 2025Reported favorably w/o amendments
May 13, 2025Recommended for local & uncontested calendar
May 13, 2025Committee report printed and distributed
May 25, 2025Placed on local & uncontested calendar
May 25, 2025Laid before the Senate
May 25, 2025Read 2nd time & passed to 3rd reading
May 25, 2025Vote recorded in Journal
May 25, 2025Three day rule suspended
May 25, 2025Record vote
May 25, 2025Read 3rd time
May 25, 2025Passed
May 25, 2025Record vote
May 25, 2025Senate passage reported
May 26, 2025Reported enrolled
May 27, 2025Signed in the House
May 27, 2025Signed in the Senate
May 28, 2025Sent to the Governor
Jun 20, 2025Signed by the Governor
Jun 20, 2025Effective on 9/1/25

FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 145 yea · 0 nay

Senate · 31 yea · 0 nay

Sources

House: Final passage · Apr 23, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · May 25, 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

Cecil Bell Jr.

Donors

Texans for Lawsuit Reform PAC$303K DUSTIN BURROWS CAMPAIGN$84K Texas Conservative Majority PAC$84K

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 · Aug 30, 2024 to Apr 2, 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.

Texans for Lawsuit Reform PAC$303,416.00

Texans for Lawsuit Reform PAC

$303,416.00

Cash: $77,500.00
Paid by others: $225,916.00
Total: $303,416.00

mail $151,916.00advertising $57,250.00polling $16,750.00

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 · Nov 14, 2024 to Mar 3, 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: 101012348, 101016762, 101032999, 101036177, 101041213, 101061435.

DUSTIN BURROWS CAMPAIGN$84,000.00

DUSTIN BURROWS CAMPAIGN

$84,000.00

Cash: $75,000.00
Paid by others: $9,000.00
Total: $84,000.00

polling $9,000.00

Also funds 39 other sitting lawmakers.

Derived recipient stock · Sep 13, 2025 to Sep 23, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team

Sources

Derived itemized flow · Dec 29, 2025 to Jan 27, 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: 101032999, 101036177, 101041213.

Texas Conservative Majority PAC$83,505.68

Texas Conservative Majority PAC

$83,505.68

Cash: $0.00
Paid by others: $83,505.68
Total: $83,505.68

canvassing $50,000.00Other filed descriptions $24,666.67polling $7,750.00texting $1,089.01

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 · Feb 9, 2026 to Mar 3, 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: 101041213, 101061435.

Money

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

×

Texans for Lawsuit Reform PAC

$303,416.00

Cash: $77,500.00
Paid by others: $225,916.00
Total: $303,416.00

mail $151,916.00advertising $57,250.00polling $16,750.00

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 · Nov 14, 2024 to Mar 3, 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: 101012348, 101016762, 101032999, 101036177, 101041213, 101061435.

×

DUSTIN BURROWS CAMPAIGN

$84,000.00

Cash: $75,000.00
Paid by others: $9,000.00
Total: $84,000.00

polling $9,000.00

Also funds 39 other sitting lawmakers.

Derived recipient stock · Sep 13, 2025 to Sep 23, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team

Sources

Derived itemized flow · Dec 29, 2025 to Jan 27, 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: 101032999, 101036177, 101041213.

×

Texas Conservative Majority PAC

$83,505.68

Cash: $0.00
Paid by others: $83,505.68
Total: $83,505.68

canvassing $50,000.00Other filed descriptions $24,666.67polling $7,750.00texting $1,089.01

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 · Feb 9, 2026 to Mar 3, 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: 101041213, 101061435.

Votes5

Senate May 25, 2025

Final passage

Yea: 31
Nay: 0
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Names

Senate journal

Names were not printed. No individual positions are inferred.

The journal row lists three votes in order: passage to third reading, suspension of the three-day rule, and final passage. This entry records final passage. Repeated tallies belong to separate votes.

Sources

HB 685 (Creighton) Relating to rates established by municipalities for water or sewer service for certain entities. (viva voce vote) (31-0) (31-0)

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

Yea: 31 (published)
Nay: 0 (published)
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

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

Senate May 25, 2025

Suspension of the three-day rule

Yea: 31
Nay: 0
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Names

Senate journal

Names were not printed. No individual positions are inferred.

The journal row lists three votes in order: passage to third reading, suspension of the three-day rule, and final passage. This entry records suspension of the three-day rule. Repeated tallies belong to separate votes.

Sources

HB 685 (Creighton) Relating to rates established by municipalities for water or sewer service for certain entities. (viva voce vote) (31-0) (31-0)

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

Yea: 31 (published)
Nay: 0 (published)
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

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

Senate May 25, 2025

Passage to third reading

Yea: Not printed
Nay: Not printed
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Names

Senate journal

Names were not printed. No individual positions are inferred.

The journal row lists three votes in order: passage to third reading, suspension of the three-day rule, and final passage. This entry records passage to third reading. Repeated tallies belong to separate votes.

Voice vote. No numeric tally or individual yeas are inferred.

Sources

HB 685 (Creighton) Relating to rates established by municipalities for water or sewer service for certain entities. (viva voce vote) (31-0) (31-0)

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

Yea: Not printed
Nay: Not printed
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

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

House Apr 23, 2025

Yea: 145
Nay: 0
Present, not voting: 2
Absent: 3
Excused: 0

Names

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

House journal

Sources

Record 407

HB 685 was passed by (Record 407): 145 Yeas, 0 Nays, 2 Present, not voting.

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

Yea: 145 (published)
Nay: 0 (published)
Present, not voting: 2 (published)
Absent: 3 (derived from named list)
Excused: 0 (derived from named list)

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

House Apr 22, 2025

Yea: 145
Nay: 0
Present, not voting: 2
Absent: 1
Excused: 2

Names

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

House journal

Sources

Record 358

HB 685 was passed to engrossment by (Record 358): 145 Yeas, 0 Nays, 2 Present, not voting.

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

Yea: 145 (published)
Nay: 0 (published)
Present, not voting: 2 (published)
Absent: 1 (derived from named list)
Excused: 2 (derived from named list)

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

Witnesses2

For: 1
Against: 1
On: 0

Names

For

Self; Texas Pastor Council1 registration

Against

Self1 registration

Sources

2 parsed registrations across the loaded witness lists.

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

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

Fiscal

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · May 8, 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.

FILED BEFORE

Filed 2 times: 88R and 89R. Checked against 88R only.

88R HB 4328

by Rep. Cecil Bell, same lead author · Died in committee · reworked

Introduced text

Last action, Mar 21, 2023: Referred to Natural Resources

Relating to rates established by municipalities for water or sewer service for certain entities.

Caption, 88R bill history

Sources

Texas House · Filed Nov 12, 2024

06/20/2025 E Effective on 9/1/25

Texas Legislature Online · Introduced · House Committee Report · Engrossed · Senate Committee Report · Enrolled

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

Companion

SB 2701 by Creighton (identical)

Subjects

City Government--Utilities

Taxation--Property-Exemptions

Utilities--Water & Sewer

WATER & SEWER SERVICE

Text

The text as introduced · 117 words

89R1266 CS-F

By: Bell of Montgomery
H.B. No. 685

A BILL TO BE ENTITLED

AN ACT

relating to rates established by municipalities for water or sewer

service for certain entities.

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. PROHIBITION ON RATE DISCRIMINATION. A

municipality may not establish a rate for water or sewer utility

service applicable only to entities that qualify for a sales tax or

ad valorem tax exemption that is higher than a rate established for

entities that receive comparable utility service.

SECTION 2. This Act takes effect September 1, 2025.

Verdict: No flags

The receipt

SOLD BY

ITEM

WHAT IT DOES

CHARGES

TOTAL

HISTORY

SIGNED FOR BY

Donors

Texans for Lawsuit Reform PAC

DUSTIN BURROWS CAMPAIGN

Texas Conservative Majority PAC

Texans for Lawsuit Reform PAC

DUSTIN BURROWS CAMPAIGN

Texas Conservative Majority PAC

Senate May 25, 2025

Senate May 25, 2025

Senate May 25, 2025

House Apr 23, 2025

House Apr 22, 2025

For

Against

88R HB 4328

Companion