89R14601 ANG-F By: Harris H.B. No. 5560 A BILL TO BE ENTITLED AN ACT relating to penalties in certain suits involving a groundwater conservation district; increasing a penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 36.102, Water Code, is amended by amending Subsection (b) and adding Subsection (f) to read as follows: (b) Except as provided by Subsection (f), the [The] board by rule may set reasonable civil penalties that the district may recover from [against] any person for breach of any rule of the district in an amount not to exceed $25,000 [$10,000] per day per violation, and each day of a continuing violation constitutes a separate violation. (f) In an enforcement action brought by a district against a person, the court may assess a penalty greater than the maximum penalty authorized under Subsection (b) if the court determines that the person gained an economic benefit as a result of the violation that was greater than the maximum penalty under Subsection (b). A penalty assessed under this subsection must be in an amount determined by the court to be necessary and appropriate to outweigh the economic benefit gained by the person as a result of the violation and discourage future violations. SECTION 2. Section 36.102, Water Code, as amended by this Act, applies only to a suit involving a groundwater conservation district that is filed on or after the effective date of this Act. A suit filed before the effective date of this Act is subject to the law in effect on the date the suit is filed, and that law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2025.