Monitoring the Session

SB 565

bill widening enforcement deals for regional water providers

Became law, effective Sep 1, 2025

Verdict: No flags

No flagsInitial review
Sen. Charles PerryRSenate 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 a compliance agreement for the suspension of an enforcement action against a regional water supply, sewer, wastewater treatment, or solid waste disposal service for certain violations.

Caption from analyzed text · version I.

Summary

Inherited violations from a smaller system get a deal, with a fix plan.

This bill widens a rule that lets the state environmental agency (the commission) sign a deal promising not to bring enforcement against a regional water, sewer, wastewater or solid waste provider. The deal covers violations it inherits when it takes over a smaller system and must include a plan to fix them. Today the rule covers systems run by cities and counties; the bill adds systems in regional or unincorporated service areas, and systems run by private or other retail utilities. On the ground, more regional providers can absorb struggling local systems without facing immediate enforcement for the old system's existing problems, as long as they sign a compliance agreement with a path to fix them.

Receipt

The receipt

89R-SB565 · 2024-12-11

SOLD BY

Sen. Charles PerryRSenate 28

+ 1 coauthor

ITEM

relating to a compliance agreement for the suspension of an enforcement action against a regional water supply, sewer, wastewater treatment, or solid waste disposal service for certain violations.

WHAT IT DOES

Inherited violations from a smaller system get a deal, with a fix plan.

This bill widens a rule that lets the state environmental agency (the commission) sign a deal promising not to bring enforcement against a regional water, sewer, wastewater or solid waste provider. The deal covers violations it inherits when it takes over a smaller system and must include a plan to fix them. Today the rule covers systems run by cities and counties; the bill adds systems in regional or unincorporated service areas, and systems run by private or other retail utilities. On the ground, more regional providers can absorb struggling local systems without facing immediate enforcement for the old system's existing problems, as long as they sign a compliance agreement with a path to fix them.

CHARGES

[ ] NONE FOUND

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · February 21, 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. Received by the Secretary of the Senate
  2. Filed
  3. Read first time
  4. Referred to Water, Agriculture, & Rural Affairs
  5. Scheduled for public hearing on . . .
  6. Considered in public hearing
  7. Testimony taken in committee
  8. Vote taken in committee
  9. Reported favorably w/o amendments
  10. Recommended for local & uncontested calendar
  11. Committee report printed and distributed
  12. Placed on intent calendar
  13. Co-author authorized
  14. Rules suspended-Regular order of business
  15. Read 2nd time & passed to engrossment
  16. Vote recorded in Journal
  17. Three day rule suspended
  18. Record vote
  19. Read 3rd time
  20. Passed
  21. Record vote
  22. Reported engrossed
  23. Received from the Senate
  24. Read first time
  25. Referred to Natural Resources
  26. Scheduled for public hearing on . . .
  27. Considered in public hearing
  28. Testimony taken/registration(s) recorded in committee
  29. Left pending in committee
  30. Considered in formal meeting
  31. Reported favorably w/o amendment(s)
  32. Comte report filed with Committee Coordinator
  33. Committee report distributed
  34. Committee report sent to Calendars
  35. Considered in Calendars
  36. Placed on General State Calendar
  37. Read 2nd time
  38. Passed to 3rd reading
  39. Record vote RV#3065
  40. Statement(s) of vote recorded in Journal
  41. Read 3rd time
  42. Passed
  43. Record vote RV#3125
  44. Statement(s) of vote recorded in Journal
  45. House passage reported
  46. Reported enrolled
  47. Signed in the Senate
  48. Signed in the House
  49. Sent to the Governor
  50. Signed by the Governor
  51. Effective on 9/1/25
FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 141 yea · 0 nay

Senate · 30 yea · 0 nay

Sources

House: Final passage · May 21, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · Mar 31, 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

Charles Perry

Donors

Texans for Lawsuit Reform PAC$60KRyan Texas PAC$35KFort Stockton Holdings LP$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 · Jul 1, 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.

Texans for Lawsuit Reform PAC$60,000.00

Texans for Lawsuit Reform PAC

$60,000.00

Cash
$60,000.00
Paid by others
$0.00
Total
$60,000.00

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 13, 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.

Report IDs: 100983698, 101007598, 101030579, 101072377.

Ryan Texas PAC$35,000.00

Ryan Texas PAC

$35,000.00

Cash
$35,000.00
Paid by others
$0.00
Total
$35,000.00

Also funds 25 other sitting lawmakers.

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

TEC account match.

Team
Sources

Derived itemized flow · Dec 13, 2024 to Mar 12, 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: 100983698, 101057700.

Fort Stockton Holdings LP$25,000.00

Fort Stockton Holdings LP

$25,000.00

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

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Nov 23, 2024. State data as of Nov 4, 2026.

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

Sources

Derived itemized flow · on Nov 23, 2024. 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: 100983698.

Money

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

×

Texans for Lawsuit Reform PAC

$60,000.00

Cash
$60,000.00
Paid by others
$0.00
Total
$60,000.00

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 13, 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.

Report IDs: 100983698, 101007598, 101030579, 101072377.

×

Ryan Texas PAC

$35,000.00

Cash
$35,000.00
Paid by others
$0.00
Total
$35,000.00

Also funds 25 other sitting lawmakers.

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

TEC account match.

Team
Sources

Derived itemized flow · Dec 13, 2024 to Mar 12, 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: 100983698, 101057700.

×

Fort Stockton Holdings LP

$25,000.00

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

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Nov 23, 2024. State data as of Nov 4, 2026.

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

Sources

Derived itemized flow · on Nov 23, 2024. 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: 100983698.

Votes5

House May 21, 2025

Yea
141
Nay
0
Present, not voting
2
Absent
1
Excused
6
Names

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

House journal

Sources

Record 3125

SB 565 was passed by (Record 3125): 141 Yeas, 0 Nays, 2 Present, not voting.

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

  • Yea: 141 (published)
  • Nay: 0 (published)
  • Present, not voting: 2 (published)
  • Absent: 1 (derived from named list)
  • Excused: 6 (derived from named list)

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

House May 20, 2025

Yea
134
Nay
0
Present, not voting
2
Absent
0
Excused
14
Names

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

House journal

Sources

Record 3065

SB 565 was passed to third reading by (Record 3065): 134 Yeas, 0 Nays, 2 Present, not voting.

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

  • Yea: 134 (published)
  • Nay: 0 (published)
  • Present, not voting: 2 (published)
  • Absent: 0 (derived from named list)
  • Excused: 14 (derived from named list)

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

Senate Mar 31, 2025

Yea
30
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
1
Names

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

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

The bill was read third time and was passed by the following vote: Yeas 30, Nays 0. (Same as previous roll call)

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

  • Yea: 30 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: 1 (derived from named list)

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

Senate Mar 31, 2025

Yea
30
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
1
Names

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

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

Senator Perry moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that SB 565 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 30, Nays 0.

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

  • Yea: 30 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: 1 (derived from named list)

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

Senate Mar 31, 2025

Yea
Not printed
Nay
Not printed
Present, not voting
Not printed
Absent
Not printed
Excused
1
Names

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

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

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

Sources

The bill was read second time and was passed to engrossment by a viva voce vote.

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: 1 (derived from named list)

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

Witnesses11
For
10
Against
0
On
1
Names

For

  • Environmental defense fund1 registration
  • Lone Star Chapter Sierra Club1 registration
  • Self1 registration
  • Self; Water Finance Exchange1 registration
  • Self; WFX and Anser Advisory1 registration
  • Sierra Club Lone Star Chapter1 registration
  • Texas 20362 registrations
  • Texas Rural Water Association2 registrations

On

  • TCEQ1 registration
Sources

11 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.

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

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · February 21, 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 Senate · Filed Dec 11, 2024

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

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

Data snapshot Oct 26, 2026 at 6:51 AM CDT. Grades, charges, quotes and corrections follow the published record.

Coauthors
César BlancoDSenate 29
Sponsors
Caroline Harris DavilaRHouse 52

House committee · Natural Resources · Committee vote 13 aye, 0 nay · Out of committee

Senate committee · Water, Agriculture and Rural Affairs · Committee vote 7 aye, 0 nay, 2 absent · Out of committee

Companion

HB 2568 by Harris Davila (identical)

Subjects

Environment--Solid Waste

Environment--Water

Occupational Regulation--Other Trades & Professions

Utilities--Water & Sewer

ENVIRONMENTAL QUALITY, TEXAS COMMISSION ON

Text

The text as introduced · 303 words

89R5270 ANG-F

By: Perry
S.B. No. 565

A BILL TO BE ENTITLED

AN ACT

relating to a compliance agreement for the suspension of an

enforcement action against a regional water supply, sewer,

wastewater treatment, or solid waste disposal service for certain

violations.

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

SECTION 1. Sections 7.0026(b) and (c), Water Code, are

amended to read as follows:

(b) If a water supply, sewer, wastewater treatment, or solid

waste disposal service operated by or for a municipality , [ or ]

county , regional service area, or unincorporated service area is

being integrated into a regional water supply, sewer, wastewater

treatment, or solid waste disposal service administered by another

entity, including a retail public utility , the commission may enter

into a compliance agreement with the regional service under which

the commission will not initiate an enforcement action against the

regional service for existing or anticipated violations resulting

from the operation by the regional service of the service being

integrated. A compliance agreement under this section must

include provisions necessary to bring the service being integrated

into compliance.

(c) If a water supply, sewer, or wastewater treatment

service operated by a retail public utility, other than a

municipality or county, is being integrated into a regional water

supply, sewer, or wastewater treatment service administered by

another entity, including a separate retail public utility, the

commission may enter into a compliance agreement with the regional

service under which the commission will not initiate an enforcement

action against the regional service for existing or anticipated

violations resulting from the operation by the regional service of

the service being integrated. A compliance agreement under this

section must include provisions necessary to bring the service

being integrated into compliance.

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