Regular Session
Government Affairs & Regulatory Compliance Analysis
SB612 amends the Texas Water Code to prohibit Conservation and Reclamation Districts (MUDs, WCIDs) from charging arbitrary, flat-rate, or revenue-generating fees for pipeline construction and associated infrastructure. Effective September 1, 2025, all fees imposed on developers and utility contractors must be strictly limited to the District's actual, reasonable, and documented costs, shifting the burden of proof to the District to justify every dollar invoiced.
Sen. Juan Hinojosa·Senate Bill·Regular Session
Conservation and Reclamation Districts (compliance required by local districts) • Texas Courts (venue for challenging non-compliant fees)
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-09-01). 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
Explore more bills from this author and on related topics
Common questions about SB612
SB612 amends the Texas Water Code to prohibit Conservation and Reclamation Districts (MUDs, WCIDs) from charging arbitrary, flat-rate, or revenue-generating fees for pipeline construction and associated infrastructure. Effective September 1, 2025, all fees imposed on developers and utility contractors must be strictly limited to the District's actual, reasonable, and documented costs, shifting the burden of proof to the District to justify every dollar invoiced.
SB612 was authored by Texas Senator Juan Hinojosa during the Regular Session.
SB612 was signed into law by Governor Greg Abbott on June 20, 2025.
SB612 is enforced by Conservation and Reclamation Districts (compliance required by local districts) and Texas Courts (venue for challenging non-compliant fees).
The regulatory priority for SB612 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB612 is estimated as "low". This may vary based on industry and implementation requirements.
SB612 addresses topics including fees & other nontax revenue, fees & other nontax revenue--local, utilities, utilities--water & sewer and special districts & authorities.
Key dates for SB612: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.
SB612 primarily affects utility companies and energy providers. 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.
