The bill, H.B. No. 2034, introduces new regulations regarding the issuance of groundwater permits to certain foreign individuals and entities. It adds Section 36.1141 to Subchapter D, Chapter 36 of the Water Code, defining "designated country" as one identified by the U.S. Director of National Intelligence as posing a national security risk. The bill outlines specific criteria under which permits cannot be issued or renewed, particularly targeting governmental entities and organizations from designated countries, as well as individuals domiciled in those countries. It emphasizes that permits may not be granted if doing so would create a risk to public health, safety, and welfare.

Additionally, the bill clarifies that it does not apply to permits issued to U.S. citizens or lawful permanent residents, nor to organizations owned or controlled by such individuals. The provisions of this new section will only apply to permits issued, amended, or renewed after the effective date of the Act, which is set for September 1, 2025. Existing permits prior to this date will continue to be governed by the previous law.

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