Relating to water losses reported by certain municipally owned utilities to the Texas Water Development Board; authorizing administrative penalties.

HB 2605 requires large municipally owned water utilities (those serving over 150,000 connections) to validate annual water loss reports submitted to the Texas Water Development Board within 180 days. For utilities with three consecutive years of high water loss, the bill mandates more detailed validation of leakage reduction strategies and billing data, plus updated mitigation plans. These plans must include specific short- and long-term goals, project descriptions, and estimated financial/water savings, and be incorporated into existing water conservation plans. The bill authorizes administrative penalties for noncompliance but does not specify penalty amounts. It directly affects municipal water systems meeting the connection threshold, aiming to improve reporting accuracy and reduce water waste.