BILL ANALYSIS H.B. 685 By: Bell, Cecil Natural Resources Committee Report (Unamended) BACKGROUND AND PURPOSE In 2023, First Liberty Institute, a legal organization that advocates for religious freedom and is known for providing counsel in the case Kennedy v. Bremerton School District, filed a lawsuit in Montgomery County asserting that their client, Grace Community Church, had been unfairly charged an elevated fee for the installation of a water tap by a municipally owned utility. The author of the bill has informed the committee that this lawsuit has raised the concern that some utilities are imposing a "fee-in-lieu-of-taxes" model on tax-exempt organizations. H.B. 685 seeks to alleviate this issue by prohibiting such a practice. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 685 amends the Local Government Code to prohibit a municipality from establishing a rate for water or sewer utility service applicable only to entities that qualify for a sales tax or property tax exemption that is higher than a rate established for entities that receive comparable utility service. EFFECTIVE DATE September 1, 2025.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 685
By: Bell, Cecil
Natural Resources
Committee Report (Unamended)
H.B. 685
By: Bell, Cecil
Natural Resources
Committee Report (Unamended)
BACKGROUND AND PURPOSE In 2023, First Liberty Institute, a legal organization that advocates for religious freedom and is known for providing counsel in the case Kennedy v. Bremerton School District, filed a lawsuit in Montgomery County asserting that their client, Grace Community Church, had been unfairly charged an elevated fee for the installation of a water tap by a municipally owned utility. The author of the bill has informed the committee that this lawsuit has raised the concern that some utilities are imposing a "fee-in-lieu-of-taxes" model on tax-exempt organizations. H.B. 685 seeks to alleviate this issue by prohibiting such a practice.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 685 amends the Local Government Code to prohibit a municipality from establishing a rate for water or sewer utility service applicable only to entities that qualify for a sales tax or property tax exemption that is higher than a rate established for entities that receive comparable utility service.
EFFECTIVE DATE September 1, 2025.
BACKGROUND AND PURPOSE
In 2023, First Liberty Institute, a legal organization that advocates for religious freedom and is known for providing counsel in the case Kennedy v. Bremerton School District, filed a lawsuit in Montgomery County asserting that their client, Grace Community Church, had been unfairly charged an elevated fee for the installation of a water tap by a municipally owned utility. The author of the bill has informed the committee that this lawsuit has raised the concern that some utilities are imposing a "fee-in-lieu-of-taxes" model on tax-exempt organizations. H.B. 685 seeks to alleviate this issue by prohibiting such a practice.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 685 amends the Local Government Code to prohibit a municipality from establishing a rate for water or sewer utility service applicable only to entities that qualify for a sales tax or property tax exemption that is higher than a rate established for entities that receive comparable utility service.
EFFECTIVE DATE
September 1, 2025.