Monitoring the Session

SB 2701

bill barring higher city water rates for tax-exempt entities

Died in committee

Verdict: No flags

No flagsInitial review
Sen. Brandon CreightonRSenate 4

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

Caption from analyzed text · version I.

Summary

No special higher water or sewer rate just for the tax-exempt.

The bill bars Texas cities from charging a higher water or sewer rate that applies only to entities exempt from sales tax or property tax. It touches city-run water and sewer utilities and tax-exempt entities that buy service from them. Starting September 1, 2025, a city cannot set a special higher rate for tax-exempt customers compared with other customers getting comparable service.

Labels

Labels: DO-OVER. Reworked text of a bill filed before that died: 88R SB 1334 (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: 115 WORDS. The bill as filed runs 115 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-SB2701 · 2025-03-13

SOLD BY

ITEM

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

WHAT IT DOES

No special higher water or sewer rate just for the tax-exempt.

The bill bars Texas cities from charging a higher water or sewer rate that applies only to entities exempt from sales tax or property tax. It touches city-run water and sewer utilities and tax-exempt entities that buy service from them. Starting September 1, 2025, a city cannot set a special higher rate for tax-exempt customers compared with other customers getting comparable service.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal note in the loaded record.

HISTORY

  1. Received by the Secretary of the Senate
  2. Filed
  3. Read first time
  4. Referred to Water, Agriculture, & Rural Affairs
FILED UNDER

No verified beat found.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Donors report through Friends of Brandon Creighton.

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

$0 raised since Jul 1, 2024. Derived sum of published report totals. blank in the state's data, consistent with zero. Flow, Jul 1, 2024 through Jun 30, 2026. State filing data as of Nov 4, 2026. 4 of 4 filed reports carry a published figure.

Report 101060909: Published total from the filed report. Retrieved Oct 29, 2026. Filed report 101060909

$0 spent Jan 1, 2026 to Jun 30, 2026. Published total from the filed report. Flow, Jan 1, 2026 through Jun 30, 2026. State filing data as of Nov 4, 2026. 1 of 1 filed reports carry a published figure.

Report 101060909: Published total from the filed report. Retrieved Oct 29, 2026. Filed report 101060909

$0 cash on hand. Published report total. Stock, as of Jun 30, 2026. State filing data as of Nov 4, 2026.

$0 loans outstanding. Published report total. Stock, as of Jun 30, 2026. State filing data as of Nov 4, 2026.

Derived sum of itemized contributions in regular reports and uncovered special-session dates. Unitemized contributions are not included. Flow, Jul 1, 2024 through Jun 30, 2026. State filing data as of Nov 4, 2026.

Money

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

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.

FILED BEFORE

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

88R SB 1334

by Sen. Creighton, same lead author · Died in committee · reworked

Introduced text

Last action, Apr 28, 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 Senate · Filed Mar 13, 2025

04/03/2025 S Referred to Water, Agriculture, & Rural Affairs

Texas Legislature Online · Introduced

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

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

Companion

HB 685 by Bell, Cecil (identical)

Subjects

City Government--Utilities

Taxation--Property-Exemptions

Utilities--Water & Sewer

WATER & SEWER SERVICE

Text

The text as introduced · 115 words

89R1266 CS-F

By: Creighton
S.B. No. 2701

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.