HB 1400

relating to creation of the groundwater science, research, and
innovation fund to be administered by the Texas Water Development
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 15, Water Code, is amended by adding
Subchapter F-1 to read as follows:
SUBCHAPTER F-1. GROUNDWATER SCIENCE, RESEARCH, AND INNOVATION FUND
Sec. 15.421.  DEFINITIONS.  In this subchapter:
(1)  "District" means a groundwater conservation
district created under Section 52, Article III, or Section 59,
Article XVI, Texas Constitution, that has the authority to regulate
the spacing of wells producing from groundwater reservoirs in the
district and regulate the production from those wells.
(2)  "Fund" means the groundwater science, research,
Sec. 15.422.  GROUNDWATER SCIENCE, RESEARCH, AND INNOVATION
FUND.  (a)  The groundwater science, research, and innovation fund
is a special fund in the state treasury to be administered by the
board under this subchapter and rules adopted by the board under
(1)  money appropriated for transfer or deposit to the
(2)  money the board transfers to the fund from any
(3)  depository interest allocable to the fund and
other investment returns on money in the fund;
(4)  money from gifts, grants, or donations to the
(5)  any other fees or sources of revenue that the
legislature may dedicate for deposit to the fund.
Sec. 15.423.  USE OF FUND.  (a)  The board may use the fund
only to provide financial assistance in the form of grants to
finance district programs and projects that will further
groundwater science, research, and innovation in this state,
including local research, data, modeling, and innovative programs
(1)  improve understanding of local groundwater
(2)  develop or improve groundwater models relied on
for planning and decision-making;
(3)  improve groundwater use efficiency and increase
(4)  increase groundwater recharge; or
(5)  protect groundwater quality.
(b)  The fund may be used for any purpose described by
Subsection (a) under criteria developed by the board.
Sec. 15.424.  FINANCIAL ASSISTANCE.  The board shall adopt
rules necessary to administer this subchapter, including rules
establishing procedures for the application for and award of
financial assistance, the distribution of financial assistance,
and the administration of financial assistance and the fund.
Sec. 15.425.  EVALUATION OF APPLICATION.  (a)  When
evaluating an application for financial assistance from a district,
(1)  the expected benefit of the program or project in
informing the management, planning, or decision-making of the
(2)  whether the program or project meets any science,
data, and modeling objectives of the board;
(3)  the extent to which the program's or project's
outcome may benefit the state and regional water planning processes
under Sections 16.051 and 16.053; and
(4)  the district's need for financial assistance based
on the district's available revenue or other sources of financial
assistance available to the district.
(b)  The board by resolution may approve an application if,
after considering the factors listed in Subsection (a) and other
relevant factors, the board finds that the public interest is
served by state assistance for the program or project and the
district has met the matching funds requirement under Section
(c)  The board shall ensure that a district that receives
financial assistance for a program or project provides the board
with all data, science, and other research findings gathered
through the implementation of the program or project for which the
district received financial assistance.
(d)  The board shall ensure that at least 35 percent of the
money transferred from the fund is used to fund programs or projects
(1)  populations of not more than 100,000; and
(2)  annual revenues of not more than $250,000, as
determined at the close of the previous fiscal year.
Sec. 15.426.  MATCHING FUNDS REQUIRED.  The board by rule may
require a district that is the recipient of a grant using money from
the fund to provide matching funds, which may include direct
expenditures or in-kind services related to the program or project,
in an amount equal to 25 percent of the amount of the grant.
SECTION 2.  This Act takes effect September 1, 2025.