A court may let a person defer up to 50% of a civil penalty, but only if the person follows corrective-action requirements.
Sec. 36.1021. DEFERRAL OF PENALTY. (a) A court by order may allow a person to defer the payment of not more than 50 percent of the total amount of the civil penalties awarded by the court to a district for a violation under Section 36.102 on the condition that the person complies with all provisions for corrective action to address the violation. (b) A court order under Subsection (a) must require the person to spend an amount of money equal to the amount of the civil penalty deferred by the court to mitigate the consequences of a violation of a rule of the district or prevent future violations of a rule of the district. (c) In determining whether deferral of a civil penalty under this section is appropriate and the amount, if any, to be deferred, the court must consider: (1) the factors used in determining the amount of the civil penalty under Section 36.102(b-1); (2) whether the amount of the civil penalty that is not deferred, when combined with the amount of any attorney's fees awarded by the court to the district, will at a minimum cover the costs and expenditures of the district in enforcing its rules against the person so that the district will be made financially whole; (3) the financial position of the person and the person's ability to reasonably pay the costs associated with the corrective action under the terms of the court order; (4) any risks to groundwater resources, another person's right to produce groundwater, public health and safety, or other water resources or the environment that would result from a delay in implementing the corrective action because of the person's limited financial resources; (5) any alternatives reasonably available to the person for the purpose of paying the penalty and any costs associated with taking the corrective action; and (6) whether requiring the person to pay the civil penalty will affect other essential public health and safety services for which the person is responsible. (d) If the person seeking deferral of a civil penalty under this section is a wholesale or retail public water system, the corrective action for purposes of Subsection (a) may include capital improvements that benefit the water system in which the violation occurred, including securing additional sources of water supply, addressing system water loss, or otherwise addressing water conservation issues. (e) The court may require the person to pay the full amount of the civil penalty under Section 36.102 if the court finds that the person is not in compliance with a provision of the court order issued under Subsection (a) of this section. Added by Acts 2025, 89th Leg., R.S., Ch. 1121 (H.B. 5560), Sec. 2, eff. September 1, 2025.