Water Code § 36.1022

Sec. 36.1022. RECOVERY OF CIVIL PENALTY BY WATER AND SEWER UTILITY. (a) A court that has assessed a civil penalty against a water and sewer utility, as defined by Section 13.002, under Section 36.102 for violation of a district rule limiting groundwater production may authorize the utility to recover, in any manner that is equitable and just, all or part of the civil penalty from any customers or class of customers responsible for causing the utility to violate the rule. (b) The court may allow the recovery of the civil penalty only if the court finds that: (1) the utility acted in good faith and exercised reasonable diligence in implementing and enforcing the terms of the utility's drought contingency plan required by Section 11.1272; and (2) the customers from whom the civil penalty will be recovered continued to violate the provisions of the drought contingency plan despite the utility's enforcement measures. (c) The utility may retain a civil penalty recovered under this section unless the court directs the utility to use the money for a specific purpose in the interests of justice. (d) A civil penalty recovered under this section is not a rate as defined by Section 13.002 and may not be considered revenue of the utility in a rate proceeding under Chapter 13. Added by Acts 2025, 89th Leg., R.S., Ch. 1121 (H.B. 5560), Sec. 2, eff. September 1, 2025.