By: King of Uvalde	H.B. No. 2735

	A BILL TO BE ENTITLED
	AN ACT
	relating to security required before filing suit against a
	groundwater conservation district.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter H, Chapter 36, Water Code, is amended
	by adding Section 36.2515 to read as follows:
	Sec. 36.2515.  SECURITY REQUIRED. (a) In this section,
	"security" means a bond or deposit posted by a plaintiff before
	filing suit against a district or, as provided by the Texas Rules of
	Appellate Procedure, by a judgment debtor to a district to suspend
	execution of the judgment during appeal of the judgment.
	(b)  Subject to Section 52.006, Civil Practice and Remedies
	Code, a district by rule shall establish the amount of security
	required to file suit under Section 36.251 challenging a rule or
	order made by the district, including an appeal of a decision on a
	permit application by a party other than the applicant. Except as
	provided by Subsection (c), the amount of security required under
	this section may not exceed $100,000.
	(c)  The amount of security required to be posted by a party
	to a contested case hearing, other than by the applicant, for the
	appeal of a decision granting a permit application or permit
	amendment application under Section 36.251(b) shall be increased by
	an amount sufficient to cover the applicant's cost to defend the
	permit or amendment granted by the district against the suit and
	appeal. The amount of an increase under this subsection may not
	exceed $100,000.
	(d)  Section 52.006, Civil Practice and Remedies Code,
	applies to an appeal by a party other than the applicant from a
	decision of the district court affirming a district's rule, order,
	or decision on a permit application. The amount of security
	required under this subsection must equal the sum of:
	(1)  the amount of any civil penalty awarded;
	(2)  interest for the estimated duration of the suit or
	appeal; and
	(3)  attorney's fees and costs required for the
	district to defend against the suit and appeal.
	(e)  A security required under this section must be filed
	into the registry of the district court in which the suit is filed.
	SECTION 2.  The changes in law made by this Act apply only to
	a suit against a groundwater conservation district that is filed on
	or after the effective date of this Act. A suit against a
	groundwater conservation district that is filed before the
	effective date of this Act is governed by 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, 2023.