H.B. No. 27 amends the Special District Local Laws Code by adding Section 8863.1031, which mandates that the Texas Water Development Board conduct a study within the geographic boundaries of the Neches and Trinity Valleys Groundwater Conservation District. The study aims to analyze the maximum sustainable groundwater production from the underlying aquifer without compromising the district's modeled available groundwater and to assess the hydrological impacts of groundwater transfers out of the district. The Board is required to submit a report on the study's findings to key state officials by January 12, 2027.

Additionally, the bill stipulates that the groundwater conservation district is prohibited from issuing new permits or amendments for the production and transfer of groundwater out of the district until the study is completed. This provision is set to expire on September 1, 2027. The bill will take effect immediately if it receives a two-thirds majority vote in both houses; otherwise, it will become effective 91 days after the legislative session concludes.

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