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TexasHB 556089th Legislature Regular SessionHouseWALLET

Relating to penalties in certain suits involving a groundwater conservation district; increasing a penalty.

Sponsored By: Cody Harris, Charles Perry (Republican)

Signed by Governor

Civil Remedies & LiabilitiesSpecial Districts & Authorities--Groundwater Conserve Dist.Special Districts & Authorities--Water & UtilityWater--Conservation

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 2 costs, 1 mixed.

Water customers can face penalty charges

Courts can let water or sewer utilities recover groundwater-production penalties from customers or customer groups responsible for the violation. Customers must have kept breaking the required drought plan despite the utility’s enforcement measures. The utility must have acted in good faith and used reasonable care to carry out and enforce that plan. The court must find that recovering some or all of the penalty is fair. Utilities can keep recovered money unless the court orders a specific use. These payments do not count as rate revenue, including in utility rate cases. This rule applies to suits filed on or after September 1, 2025.

Groundwater rule violators face higher penalties

Groundwater district boards can set civil penalties by rule up to $25,000 per day per violation, up from $10,000. Each day a violation continues counts separately. Courts can exceed that cap when the violator’s financial gain exceeds it; the penalty must outweigh that gain and deter violations. Courts must weigh harm to groundwater, other users’ groundwater rights, public health and safety, and other water or environmental resources. They must also consider past violations, fault, whether problems were foreseeable or caused by equipment failure, financial gain, and deterrence. Other required factors include good-faith efforts to fix harm, compensate affected people, and diligently carry out and enforce required drought plans. Courts can also weigh other matters of fairness. The law applies to suits filed on or after September 1, 2025; earlier suits remain under the prior law.

Violators can defer penalties for repairs

Courts can defer payment of up to 50% of a groundwater civil penalty when violators follow court-ordered corrective actions. Violators must spend an equal amount fixing the harm or preventing future violations. Public water systems can fund improvements such as added water supplies, reduced leaks, or other water-saving measures. Courts must weigh the penalty-setting factors, the violator’s finances, groundwater risks, alternatives to payment, and effects on essential health and safety services. They must also consider whether the remaining penalty plus attorney’s fees covers enforcement costs. Courts can require full payment if violators fail to follow the order. This rule applies to suits filed on or after September 1, 2025.

Sponsors & Cosponsors

Sponsors

  • Cody Harris

    House

  • Charles Perry

    Republican • Senate

Cosponsors

  • Donna Campbell

    Republican • Senate

  • Sarah Eckhardt

    Democratic • Senate

  • Carrie Isaac

    House

Roll Call Votes

All Roll Calls

Yes: 422 • No: 12

House vote • 5/29/2025

Record vote

Yes: 125 • No: 4

Senate vote • 5/19/2025

Record vote

Yes: 0 • No: 0

Senate vote • 5/19/2025

Record vote

Yes: 0 • No: 0

House vote • 5/8/2025

Record vote

Yes: 144 • No: 3

House vote • 5/7/2025

Record vote

Yes: 134 • No: 5

Senate vote • Unknown

Committee vote: Water, Agriculture and Rural Affairs

Yes: 8 • No: 0

House vote • Unknown

Committee vote: Natural Resources

Yes: 11 • No: 0

Actions Timeline

  1. Effective on 9/1/25

    6/20/2025House

  2. Signed by the Governor

    6/20/2025House

  3. Sent to the Governor

    6/1/2025House

  4. Signed in the Senate

    6/1/2025Senate

  5. Signed in the House

    5/31/2025House

  6. Reported enrolled

    5/30/2025House

  7. House concurs in Senate amendment(s)-reported

    5/29/2025Senate

  8. Text of Senate Amendment(s)

    5/29/2025House

  9. Statement(s) of vote recorded in Journal

    5/29/2025House

  10. Record vote (RV#4014)

    5/29/2025House

  11. House concurs in Senate amendment(s)

    5/29/2025House

  12. Senate Amendments Analysis distributed

    5/20/2025House

  13. Senate Amendments distributed

    5/20/2025House

  14. Senate passage as amended reported

    5/20/2025House

  15. Record vote

    5/19/2025Senate

  16. Passed

    5/19/2025Senate

  17. Read 3rd time

    5/19/2025Senate

  18. Record vote

    5/19/2025Senate

  19. Three day rule suspended

    5/19/2025Senate

  20. Vote recorded in Journal

    5/19/2025Senate

  21. Read 2nd time & passed to 3rd reading

    5/19/2025Senate

  22. Vote recorded in Journal

    5/19/2025Senate

  23. Rules suspended-Regular order of business

    5/19/2025Senate

  24. Placed on intent calendar

    5/16/2025Senate

  25. Co-sponsor authorized

    5/16/2025Senate

Bill Text

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