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

SB 2701 prohibits Texas municipalities from charging higher water or sewer rates to tax-exempt entities (like nonprofits or government bodies qualifying for sales or property tax exemptions) than they charge to similar non-exempt customers receiving comparable service. The bill amends the Local Government Code to require equal rate structures for these entities, preventing discriminatory pricing based on tax-exempt status. It directly affects qualifying tax-exempt organizations that use municipal water or sewer services. The law takes effect on September 1, 2025.