TX HB2867

Caps late payment fees for municipal water and sewer utilities using a tiered structure: during the first 10 days of the penalty period, fees cannot exceed $5 or 2% of the past due amount (whichever is greater)

Increases the maximum fee to $5 or 5% of the past due amount from days 11-19 of the penalty period, and to $5 or 10% on day 20 and beyond

Prohibits municipal utilities from beginning the late payment penalty period until at least 21 days after the bill is mailed or electronically transmitted to the customer

Late payment penalty period ends when the customer pays all past due amounts in full

Applies only to fees charged on or after September 1, 2026