HB4158

Regular Session

Relating to the compensation of the directors of the Texana Groundwater Conservation District.

LowStandard timeline

Low Cost

Effective:2025-06-20

Enforcing Agencies

Texana Groundwater Conservation District

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: June 20, 2025 (Immediate effect due to supermajority vote).
Compliance Deadline: Immediate for District internal operations; no direct compliance action required for private businesses.
Agency Rulemaking: The Texana Groundwater Conservation District Board must pass a resolution to formally set the new per diem rates. Watch the agenda for the next scheduled Board meeting.

Immediate Action Plan

Verify Jurisdiction: Confirm if your facilities or water sources are located within Jackson County (Texana GCD boundaries).
Monitor Board Activity: Review the agenda for the next Texana GCD Board meeting for resolutions regarding "Director Compensation" or "Fees of Office."
Forecast Budgets: If your business pays significant groundwater production fees, flag this line item for a potential minor increase in FY 2026 to cover the District's increased administrative overhead.

Operational Changes Required

Contracts

No Impact. This legislation does not alter existing Master Service Agreements (MSAs), groundwater rights contracts, or vendor agreements.

Hiring/Training

No Impact. No new certifications or personnel requirements are introduced.

Reporting & Record-Keeping

No Impact. Private businesses and permit holders have no new filing obligations.

Fees & Costs

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.

Strategic Ambiguities & Considerations

The legislation repeals the governing section (Section 8857.056) without explicitly naming the replacement standard.

The Legal Default: By silencing the specific law, the District defaults to the general law (Texas Water Code Chapter 36).
The Variable: Chapter 36 sets a *maximum* ($250/day), not a mandatory rate. The ambiguity lies in where the Board will set their own pay between $0 and $250. This discretion will be exercised in open Board meetings.

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Information 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.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsTexana Groundwater Conservation District Special Districts & Authorities Special Districts & Authorities--groundwater Conserve Dist.Special Districts & Authorities--water & Utility Water Water--conservation Salaries & Expenses

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

H.B. 4158

By: Louderback

Natural Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Under current law, a director of a groundwater conservation district is entitled to receive fees of office for each day the director actually spends performing the duties of a director, capped at $250 a day and $9,000 a year. However, certain other law explicitly prohibits directors of the Texana Groundwater Conservation District, which is located wholly in Jackson County, from receiving any compensation for service as a director. The bill author has informed the committee that this may hinder the district's ability to recruit qualified directors. H.B. 4158 seeks to allow the Texana Groundwater Conservation District to compensate its directors.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 4158 repeals Section 8857.056, Special District Local Laws Code, which prohibits a director of the Texana Groundwater Conservation District from receiving a salary or other compensation for service as a director but authorizes such a director to be reimbursed for actual expenses of attending meetings at the rate in effect for employees of Jackson County.

EFFECTIVE DATE

September 1, 2025.

House Authors

Rep. AJ LouderbackRepublican · Primary Author

Senate Sponsor

Sen. Joan HuffmanRepublican · Primary Sponsor

Bill Text(with markup)

H.B. No. 4158

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the compensation of the directors of the Texana
	Groundwater Conservation District.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 8857.056, Special District Local Laws
	Code, is repealed.
	SECTION 2. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 7, 2025

TO:	Honorable Cody Harris, Chair, House Committee on Natural Resources

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB4158 by Louderback (Relating to the compensation of the directors of the Texana Groundwater Conservation District.), As Introduced

No fiscal implication to the State is anticipated.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

LBB Staff:

JMc, TUf, BC, CWi

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Frequently Asked Questions

Common questions about HB4158

What does Texas HB4158 do?

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. Implementation Timeline Effective Date: June 20, 2025 (Immediate effect due to supermajority vote).

Who authored HB4158?

HB4158 was authored by Texas Representative AJ Louderback during the Regular Session.

When was HB4158 signed into law?

HB4158 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce HB4158?

HB4158 is enforced by Texana Groundwater Conservation District.

How urgent is compliance with HB4158?

The compliance urgency for HB4158 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB4158?

The cost impact of HB4158 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HB4158 address?

HB4158 addresses topics including texana groundwater conservation district, special districts & authorities, special districts & authorities--groundwater conserve dist., special districts & authorities--water & utility and water.

Legislative data provided by LegiScanLast updated: November 25, 2025

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