Monitoring the Session

SB 266

Perry Bill Bars Big Cities From Raiding Water Revenue

Filed

Verdict: No flags

No flagsInitial review
Sen. Charles PerryRSenate 28

Initial review · graded Nov 9, 2026 · How we grade

Caption

relating to the authority of a municipality with a population of 50,000 or more to transfer certain water-related revenue and receive water-related funding; making nonsubstantive changes.

Caption from analyzed text · version I.

Summary

Cities of 50,000 or more keep water money in the water system, or lose state water help.

The bill limits cities of 50,000 or more people from moving water or sewer revenue into the city's general fund, except to repay the city for direct, actual costs it spent on the water or sewer system. It also requires those cities to certify to the Texas Water Development Board that they follow this limit before the board grants them state water financial help. The money limit takes effect in 2027, and the certification rule applies to funding applications filed on or after September 1, 2028.

Receipt

The receipt

90R-SB266 · 2026-11-09

SOLD BY

Sen. Charles PerryRSenate 28

ITEM

relating to the authority of a municipality with a population of 50,000 or more to transfer certain water-related revenue and receive water-related funding; making nonsubstantive changes.

WHAT IT DOES

Cities of 50,000 or more keep water money in the water system, or lose state water help.

The bill limits cities of 50,000 or more people from moving water or sewer revenue into the city's general fund, except to repay the city for direct, actual costs it spent on the water or sewer system. It also requires those cities to certify to the Texas Water Development Board that they follow this limit before the board grants them state water financial help. The money limit takes effect in 2027, and the certification rule applies to funding applications filed on or after September 1, 2028.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal note in the loaded record.

HISTORY

  1. Received by the Secretary of the Senate
  2. Filed
FILED UNDER

No verified beat found.

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.

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 a super-expensive superintelligence, Nov 9, 2026, against the published rubric.

Sources

Texas Senate · Filed Nov 9, 2026

11/09/2026 S Filed

Texas Legislature Online · Introduced

Data snapshot Nov 10, 2026 at 2:41 AM CST. Grades, charges, quotes and corrections follow the published record.

Subjects

City Government--Finance

City Government--Utilities

Utilities--Water & Sewer

WATER DEVELOPMENT BOARD, TEXAS

Text

The text as introduced · 402 words

90R2272 ANG-F

By: Perry
S.B. No. 266

A BILL TO BE ENTITLED

AN ACT

relating to the authority of a municipality with a population of

50,000 or more to transfer certain water-related revenue and

receive water-related funding; making nonsubstantive changes.

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

SECTION 1. Section 1502.058(a), Government Code, is amended

to read as follows:

(a) Except as provided by [ Subsection (b) or (c), by Section

1502.059, or by ] Section 271.052, Local Government Code :

(1) [ , ] a municipality may not use the revenue of a

utility system, park, or swimming pool to pay any other debt,

expense, or obligation of the municipality until the debt secured

by the revenue is finally paid ; and

(2) a municipality with a population of 50,000 or more

may transfer the revenue of a water or sewer system owned by the

municipality to the municipality's general fund only for the

purpose of reimbursing the municipality for direct, actual costs

incurred on behalf of the municipality's water or sewer system .

SECTION 2. Subchapter A, Chapter 15, Water Code, is amended

by adding Section 15.0071 to read as follows:

Sec. 15.0071. ADDITIONAL CONSIDERATIONS FOR CERTAIN

FINANCIAL ASSISTANCE PROVIDED TO UTILITIES OWNED BY CERTAIN LARGE

MUNICIPALITIES. (a) This section applies only to a municipality

with a population of 50,000 or more.

(b) The board shall require a municipality to certify to the

board that the municipality is in compliance with Section 1502.058,

Government Code, before granting an application for financial

assistance under Subchapter B, C, C-1, D, E, G, J, L, or Q submitted

by or on behalf of the municipality or utility owned by the

municipality.

SECTION 3. (a) Section 15.0071, Water Code, as added by this

Act, applies only to an application for financial assistance

submitted to the Texas Water Development Board on or after

September 1, 2028.

(b) Not later than March 1, 2028, the executive

administrator of the Texas Water Development Board shall adopt or

amend rules as necessary to comply with Section 15.0071, Water

Code, as added by this Act.

SECTION 4. 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, 2027.