H.B. No. 5560 amends the Water Code to increase civil penalties for violations of rules set by groundwater conservation districts. The bill raises the maximum penalty from $10,000 to $25,000 per day for each violation, with each day of a continuing violation counted as a separate offense. Additionally, the bill introduces new criteria for courts to consider when determining the amount of civil penalties, including the nature and gravity of the violation, the violator's history of previous violations, and any economic benefits gained from the violation. It also allows courts to impose penalties greater than the maximum if the violator gained an economic benefit exceeding the set penalty.

Furthermore, the bill establishes provisions for deferring civil penalties, allowing courts to permit individuals to defer up to 50% of the penalty if they comply with corrective actions. It also introduces a mechanism for water and sewer utilities to recover civil penalties from customers responsible for violations, provided the utility acted in good faith and enforced its drought contingency plan. The changes will apply only to suits filed after the effective date of the Act, which is set for September 1, 2025.

Statutes affected:
Introduced: Water Code 36.102 (Water Code 36)
House Committee Report: Water Code 36.102 (Water Code 36)
Engrossed: Water Code 36.102 (Water Code 36)
Senate Committee Report: Water Code 36.102 (Water Code 36)
Enrolled: Water Code 36.102 (Water Code 36)