DeAyala Bill Limits Legal Fee Wins For Groundwater Districts

The text as introduced · 524 words

89R13809 JBD-D

By: DeAyala
H.B. No. 2805

A BILL TO BE ENTITLED

AN ACT

relating to civil actions related to groundwater conservation

districts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 36.066, Water Code, is amended by

amending Subsections (a), (g), and (h) and adding Subsection (g-1)

to read as follows:

(a) A district may sue and be sued in the courts of this

state in the name of the district by and through its board. A

district board member is immune from personal [ suit and immune

from ] liability for official votes and official actions. To the

extent an official vote or official action conforms to laws

relating to conflicts of interest, abuse of office, or

constitutional obligations, this subsection provides immunity for

those actions. All courts shall take judicial notice of the

creation of the district and of its boundaries.

(g) If the trial court finds by clear and convincing

evidence that an administrative proceeding brought against a

district and appealed to the court or a suit brought against a

district was groundless and brought in bad faith [ district prevails

in any suit other than a suit in which it voluntarily intervenes ],

the district may seek and the court shall grant, in the interests of

justice and as provided by Subsection (h), in the same action,

recovery for reasonable and necessary attorney's fees, costs for

expert witnesses and depositions , and other costs incurred by the

district in the proceeding or suit [ before the court ].

(g-1) If the trial court finds by clear and convincing

evidence that a district has intentionally violated the statutory

or constitutional rights of a groundwater rights owner, the rights

owner may seek and the court shall grant, in the interests of

justice and as provided by Subsection (h), in the same action,

recovery for reasonable and necessary attorney's fees, costs for

expert witnesses and depositions, and other costs incurred by the

rights owner in:

(1) an administrative proceeding appealed to the court

and arising from the rights violation; and

(2) a suit arising from the rights violation. [ The

amount of the attorney's fees shall be fixed by the court. ]

(h) The court shall determine the amount of attorney's fees

awarded under this section. If the district or groundwater rights

owner prevails on some, but not all, of the issues in the proceeding

or suit, the court shall award attorney's fees and costs under this

section only for those issues on which the district or rights owner

prevails. The district or rights owner, as applicable, has the

burden of segregating the attorney's fees and costs in order for the

court to make an award.

SECTION 2. Section 36.066, Water Code, as amended by this

Act, applies only to an action filed on or after the effective date

of this Act. An action filed before the effective date of this Act

is governed by the law as it existed immediately before the

effective date of this Act, and that law is continued in effect for

that purpose.

SECTION 3. This Act takes effect September 1, 2025.