The bill, H.B. No. 5560, amends Section 36.102 of the Water Code to increase the civil penalties that groundwater conservation districts can impose for rule violations. Specifically, it allows districts to recover penalties of up to $25,000 per day for each violation, an increase from the previous maximum of $10,000. Additionally, the bill introduces a new provision that permits courts to assess penalties greater than this maximum if it is determined that the violator gained an economic benefit exceeding the penalty amount. The court will set the penalty based on what is necessary to outweigh the economic benefit and deter future violations.

The changes made by this bill will only apply to suits involving groundwater conservation districts that are filed on or after the effective date of September 1, 2025. Any suits filed before this date will continue to be governed by the existing law at the time of filing. This legislative update aims to enhance the enforcement capabilities of groundwater conservation districts and ensure that penalties are commensurate with the economic impacts of violations.

Statutes affected:
Introduced: Water Code 36.102 (Water Code 36)