Relating to rates established by municipalities for water or sewer service for certain entities.

HB 685 prohibits Texas municipalities from charging higher water or sewer rates to tax-exempt entities (like nonprofits, schools, or government facilities) compared to similar non-exempt entities receiving the same service. It requires equal rate structures for comparable utility service regardless of an entity's tax-exempt status. The law, effective September 1, 2025, amends the Local Government Code to establish this non-discrimination standard for municipal utility rates. This directly affects municipalities setting utility rates and tax-exempt organizations receiving water/sewer service.