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Bill > HB2867

TX HB2867

TX HB2867
Relating to late payment fees charged by a municipally owned water utility.

summary

Introduced
02/14/2025
In Committee
05/13/2025
Crossed Over
05/12/2025
Passed
Dead
06/02/2025

Introduced Session

89th Legislature Regular Session

Bill Summary

AN ACT relating to late payment fees charged by a municipally owned water utility.

AI Summary

This bill establishes new regulations for late payment fees charged by municipally owned water utilities in Texas, limiting the amount and timing of such fees. Specifically, the bill sets a graduated late payment fee structure where fees cannot exceed $5 or a percentage of the past due amount, depending on how long the bill remains unpaid. During the first 10 days of the late payment period, fees are capped at the greater of $5 or 2% of the amount past due; between days 11-19, fees can be up to $5 or 5% of the amount past due; and after day 20, fees can reach $5 or 10% of the amount past due. The bill also mandates that the late payment penalty period cannot begin until at least 21 days after the utility mails or electronically transmits the customer's bill, and the penalty period continues until the customer pays all past due amounts. These new regulations will apply only to fees charged on or after the bill's effective date of September 1, 2026, providing municipal water utilities and customers with ample time to prepare for the new fee structure.

Committee Categories

Agriculture and Natural Resources

Sponsors (43)

Gary Gates (R)*,  Cody Harris (R)*,  Janie Lopez (R)*,  Sergio Muñoz (D)*,  Senfronia Thompson (D)*,  Keith Bell (R),  Ben Bumgarner (R),  Terry Canales (D),  Pat Curry (R),  Drew Darby (R),  Mark Dorazio (R),  Ryan Guillen (R),  Sam Harless (R),  Richard Hayes (R),  Cole Hefner (R),  Hillary Hickland (R),  Janis Holt (R),  Lacey Hull (R),  Suleman Lalani (D),  Jeff Leach (R),  Mitch Little (R),  Oscar Longoria (D),  A.J. Louderback (R),  J.M. Lozano (R),  Mando Martinez (D),  Don McLaughlin (R),  Morgan Meyer (R),  Terry Meza (D),  Matt Morgan (R),  Tom Oliverson (R),  Claudia Ordaz Perez (D),  Jared Patterson (R),  Dennis Paul (R),  Richard Raymond (D),  Ron Reynolds (D),  John Smithee (R),  James Talarico (D),  Carl Tepper (R),  Ellen Troxclair (R),  Cody Vasut (R),  Hubert Vo (D),  Terry Wilson (R),  Gene Wu (D), 

Last Action

Referred to Water, Agriculture, & Rural Affairs (on 05/13/2025)

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