TX HB5560

Increases maximum civil penalty for violations of groundwater conservation district rules from $10,000 to $25,000 per day per violation

Requires courts to consider specific factors when determining penalty amounts, including: impact on groundwater resources and public health, violator's history of previous violations, degree of culpability, economic benefit gained, and good faith efforts to rectify the violation

Allows courts to assess penalties exceeding the $25,000 daily maximum if the violator's economic benefit from the violation was greater than that amount

Permits courts to defer up to 50% of civil penalties if the violator agrees to corrective actions, with deferred funds required to be spent on mitigating consequences or preventing future violations

Authorizes water and sewer utilities penalized for groundwater overproduction to recover civil penalties from customers who caused the violation, if the utility acted in good faith enforcing its drought contingency plan

Takes effect September 1, 2025, and applies only to suits filed on or after that date