Regular Session
Government Affairs & Regulatory Compliance Analysis
HB4158 repeals the specific statutory compensation cap for Texana Groundwater Conservation District (Jackson County) directors, effectively defaulting the District to the higher "fees of office" standards under Texas Water Code Chapter 36. While this is an internal governance change, the likely increase in director per diems will raise District overhead, creating potential pressure on future permit fees and tax rates for local businesses.
Rep. AJ Louderback·House Bill·Regular Session
Texana Groundwater Conservation District
This legislation has regulatory implications for the following Texas businesses and organizations:
Standard regulatory changes (effective 2025-06-20). Review during normal business planning.
Affected business types:
lowMinimal cost impact anticipated.
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Key implementation requirements and action items for compliance with this legislation
No Impact. This legislation does not alter existing Master Service Agreements (MSAs), groundwater rights contracts, or vendor agreements.
No Impact. No new certifications or personnel requirements are introduced.
No Impact. Private businesses and permit holders have no new filing obligations.
Indirect Budget Impact. The repeal allows directors to move from the previous statutory cap to the standard rate allowed by Texas Water Code § 36.060 (generally up to $250 per day, with an annual cap). While the legislative fiscal note indicates "no significant implication," businesses with high-volume groundwater permits should anticipate a marginal increase in District operating expenses, which may be passed down via permit fees in the next fiscal cycle.
The legislation repeals the governing section (Section 8857.056) without explicitly naming the replacement standard.
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about HB4158
HB4158 repeals the specific statutory compensation cap for Texana Groundwater Conservation District (Jackson County) directors, effectively defaulting the District to the higher "fees of office" standards under Texas Water Code Chapter 36. While this is an internal governance change, the likely increase in director per diems will raise District overhead, creating potential pressure on future permit fees and tax rates for local businesses.
HB4158 was authored by Texas Representative AJ Louderback during the Regular Session.
HB4158 was signed into law by Governor Greg Abbott on June 20, 2025.
HB4158 is enforced by Texana Groundwater Conservation District.
The regulatory priority for HB4158 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB4158 is estimated as "low". This may vary based on industry and implementation requirements.
HB4158 addresses topics including texana groundwater conservation district, special districts & authorities, special districts & authorities--groundwater conserve dist., special districts & authorities--water & utility and water.
Key dates for HB4158: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
