Regular Session
Government Affairs & Regulatory Compliance Analysis
Texas municipalities are now prohibited from charging higher water or sewer rates to entities based solely on their sales or ad valorem tax-exempt status. Effective June 20, 2025, affected organizations—including non-profits, religious institutions, and manufacturers with specific exemptions—must audit utility bills to ensure rates are capped at the standard rate charged to commercial entities receiving comparable service.
Rep. Cecil Bell·House Bill·Regular Session
Civil Courts (via litigation for non-compliance) • Municipal Utility Departments
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-06-20). Consider how these changes may affect your operations.
Affected business types:
lowMinimal cost impact anticipated.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about HB685
Texas municipalities are now prohibited from charging higher water or sewer rates to entities based solely on their sales or ad valorem tax-exempt status. Effective June 20, 2025, affected organizations—including non-profits, religious institutions, and manufacturers with specific exemptions—must audit utility bills to ensure rates are capped at the standard rate charged to commercial entities receiving comparable service.
HB685 was authored by Texas Representative Cecil Bell during the Regular Session.
HB685 was signed into law by Governor Greg Abbott on June 20, 2025.
HB685 is enforced by Civil Courts (via litigation for non-compliance) and Municipal Utility Departments.
The regulatory priority for HB685 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB685 is estimated as "low". This may vary based on industry and implementation requirements.
HB685 addresses topics including utilities, utilities--water & sewer, city government, city government--utilities and water & sewer service.
Key dates for HB685: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.
HB685 primarily affects utility companies and energy providers, property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
