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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
HB5320

Regular Session

Relating to the powers, duties, and governance of the Starr County Drainage District, the change of the name of the Starr County Drainage District to the Starr County Drainage and Groundwater Conservation District, the dissolution of the Starr County Groundwater Conservation District, and the transfer of the assets and liabilities of the Starr County Groundwater Conservation District to the Starr County Drainage and Groundwater Conservation District; authorizing the imposition of a tax.

Government Affairs & Regulatory Compliance Analysis

HB5320: Government Affairs Overview

Effective September 1, 2025, HB5320 dissolves the Starr County Groundwater Conservation District and consolidates its regulatory authority and assets into the newly renamed Starr County Drainage and Groundwater Conservation District. This legislation centralizes control over both surface drainage and subsurface groundwater, grants the new District expanded ad valorem taxing authority under Water Code Chapter 49, and mandates a complete restructuring of the Board of Directors.

Rep. Ryan Guillen·House Bill·Regular Session

Moderate
Medium Cost
Effective:2025-09-01
Enforcing Agencies

Starr County Commissioners Court • Starr County Drainage and Groundwater Conservation District • Texas Commission on Environmental Quality (TCEQ)

Business Impact

Who HB5320 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.

💧

Water

Affected business types:

  • Water utilities
  • Wastewater treatment facilities
  • Municipal water districts
  • Agricultural water users
View all water legislation

Key Operational Considerations

  • 1Automatic Assumption: Existing contracts with the dissolved Groundwater District legally transfer to the new Combined District. You do not need to execute new agreements.
  • 2Municipal Agreements: If your business relies on municipal water, monitor for new inter-local agreements, as the District is now authorized to assume municipal utility functions.
  • 3Government Relations: Assign a representative to engage the Starr County Commissioners Court immediately. The Court appoints the new five-member Board.

Estimated Cost Impact

mediumModerate costs expected for implementation.

Enforcing Agencies

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HB5320
Relating to the powers, duties, and governance of the Starr County Drainage District, the change of the name of the Starr County Drainage District to ...
Moderate Urgency
Heavily Contested
House Vote85 - 43
YEA
NAY
66% in favor128 voting
Senate Vote27 - 4
YEA
87% in favor31 voting
47
Total Opposition Votes
Cost Impact
Medium
Effective
2025-09-01
Enforcing Agencies
Starr County Commissioners CourtStarr County Drainage and Ground...TCEQ
Primary Author: Rep. Ryan Guillen
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025.
  • Compliance Deadline: September 1, 2025 (for vendor/payee updates); January 31, 2026 (anticipated deadline for first tax payments under new authority).
  • Agency Rulemaking: The new Board will be appointed shortly after September 1, 2025. Expect a "regulatory gray zone" in Q4 2025 and Q1 2026 while the new Board harmonizes existing groundwater rules with drainage protocols. Current rules remain in effect until formally amended.

Immediate Action Plan

  • 1. Update Financial Systems: Change the vendor name in AP systems effective 9/1/2025 to prevent payment delays.
  • 2. Lobby for Board Appointment: Submit qualified candidates for the "Industrial Interest" Board seat to the Starr County Commissioners Court before August 2025.
  • 3. Review Tax Liability: Re-calculate property tax projections for Starr County holdings based on potential new Chapter 49 assessments.
  • 4. Audit Compliance Protocols: Review internal environmental compliance manuals; ensure they prioritize District groundwater rules over conflicting municipal ordinances.

Operational Changes Required

Contracts

  • Automatic Assumption: Existing contracts with the dissolved Groundwater District legally transfer to the new Combined District. You do not need to execute new agreements.
  • Notice of Acknowledgment: Legal departments should issue a formal "Notice of Acknowledgment" to the new District confirming recognition of the transfer to prevent service interruptions or payment disputes.
  • Municipal Agreements: If your business relies on municipal water, monitor for new inter-local agreements, as the District is now authorized to assume municipal utility functions.

Hiring/Training

  • Government Relations: Assign a representative to engage the Starr County Commissioners Court immediately. The Court appoints the new five-member Board.
  • Board Representation: If you are an industrial operator, you must advocate for a favorable appointee to the specific Board seat reserved for "active industrial interests" (Sec. 11022.0201(4)).

Reporting & Record-Keeping

  • Vendor Management: Update vendor master files immediately. Payments made to "Starr County Groundwater Conservation District" after September 1 may be rejected. Redirect all payments to "Starr County Drainage and Groundwater Conservation District."
  • Permit Audits: Audit all active groundwater well permits. While valid, the issuing authority has changed. Ensure renewal applications reference the new District name to avoid administrative rejection.

Fees & Costs

  • Tax Accruals: The new District has authority to impose ad valorem property taxes. Finance teams must adjust tax accruals for the 2026 tax year to account for potential rate increases or new assessments.
  • Utility Exemptions: Electric, gas, telecom, and cable utilities are statutorily exempt from impact fees, standby fees, or assessments on equipment/rights-of-way. Accounts Payable must flag and contest any invoices attempting to apply these fees.

Strategic Ambiguities & Considerations

  • "Active Industrial Interests": The statute reserves one Board seat for this group but fails to define the selection criteria. Without immediate industry input, the Commissioners Court may appoint a director who does not align with your operational needs.
  • Regulatory Supremacy: The law states the District’s groundwater rules prevail over conflicting municipal or regional water authority rules. It does not specify a dispute resolution mechanism. If your facility is caught between a City ordinance and a District rule, the District rule controls, but enforcement during the transition may be inconsistent.

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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.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 14, 2025
Passed House
May 10, 2025
Passed Senate
May 28, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsStarr County Drainage and Groundwater Conservation DistrictCounty GovernmentCounty Government--generalEnvironmentEnvironment--waterSpecial Districts & AuthoritiesSpecial Districts & Authorities--groundwater Conserve Dist.WaterWater--conservationStarr CountyStarr County Drainage DistrictStarr County Groundwater Conservation District
03

House Authors

Rep. Ryan GuillenRepublican · Primary Author

Senate Sponsor

Sen. Judith ZaffiriniDemocrat · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Rep. Ryan Guillen

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Related by Topic

View more Starr County Drainage and Groundwater Conservation District legislation
Quick Reference

Frequently Asked Questions

Common questions about HB5320

Q

What does Texas HB5320 do?

Effective September 1, 2025, HB5320 dissolves the Starr County Groundwater Conservation District and consolidates its regulatory authority and assets into the newly renamed Starr County Drainage and Groundwater Conservation District. This legislation centralizes control over both surface drainage and subsurface groundwater, grants the new District expanded ad valorem taxing authority under Water Code Chapter 49, and mandates a complete restructuring of the Board of Directors.

Q

Who authored HB5320?

HB5320 was authored by Texas Representative Ryan Guillen during the Regular Session.

Q

When was HB5320 signed into law?

HB5320 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB5320?

HB5320 is enforced by Starr County Commissioners Court, Starr County Drainage and Groundwater Conservation District and Texas Commission on Environmental Quality (TCEQ).

Q

How significant are the changes in HB5320?

The regulatory priority for HB5320 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB5320?

The cost impact of HB5320 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does HB5320 address?

HB5320 addresses topics including starr county drainage and groundwater conservation district, county government, county government--general, environment and environment--water.

Q

What are the key dates for HB5320?

Key dates for HB5320: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Need Strategic Guidance on This Legislation?

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.

Legislative data provided by LegiScanLast updated: January 11, 2026