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A BILL TO BE ENTITLED
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AN ACT
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relating to receivership of the Agua Special Utility District and |
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requirements for candidates for the board of directors of the Agua |
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Special Utility District. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 7201.055(b), Special District Local Laws |
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Code, is amended to read as follows: |
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(b) A candidate for a position on the board must: |
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(1) reside in the subdistrict represented by that |
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position; [and] |
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(2) be eligible to hold office under Section 141.001, |
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Election Code; |
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(3) file a campaign treasurer appointment form |
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described by Chapter 252, Election Code, with the Texas Ethics |
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Commission; and |
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(4) file each report required under Title 15, Election |
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Code, with the Texas Ethics Commission and the board. |
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SECTION 2. Section 7201.058, Special District Local Laws |
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Code, is amended by amending Subsection (a) and adding Subsections |
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(c), (d), and (e) to read as follows: |
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(a) A director shall [may] be removed from the board by a |
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majority of the other directors if the director: |
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(1) does not have at the time of appointment the |
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qualifications required by Section 7201.055(b) or is disqualified |
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from serving under Section 7201.059; |
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(2) does not complete the education program required |
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by Section 7201.054; |
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(3) does not meet the eligibility requirements under |
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Section 7201.072; |
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(4) fails to comply with Section 7201.071; [or] |
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(5) misses one-half or more of the regularly scheduled |
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meetings during the preceding 12 months; |
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(6) repeatedly fails to file an affidavit under |
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Section 553.002, Government Code, disclosing an interest in |
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property to be acquired with public money; |
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(7) repeatedly fails to file a conflicts disclosure |
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statement under Section 176.003, Local Government Code; |
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(8) fails to comply with Section 171.004, Local |
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Government Code; |
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(9) does not file the financial statement required of |
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state officers under Section 7201.056; or |
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(10) does not file a campaign treasurer appointment |
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form or a required report under Section 7201.055. |
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(c) A director shall be removed from the board by the other |
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directors if the director has been convicted of or has pleaded |
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guilty or nolo contendere to a civil or criminal offense of: |
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(1) bribery; |
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(2) embezzlement, extortion, or other theft of public |
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money; |
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(3) perjury; |
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(4) coercion of a public servant or voter; |
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(5) tampering with a governmental record; |
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(6) misuse of official information; |
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(7) abuse of official capacity; or |
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(8) conspiracy to commit or an attempted commission of |
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an offense described by Subdivisions (1)-(7). |
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(d) The board shall begin the process of notice and public |
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hearing for the removal of a director not later than the 30th day |
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after the date the board receives notice of a violation under this |
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section. On or before the 60th day after the date of the public |
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hearing, the remaining directors shall make a determination on |
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whether the violation occurred. |
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(e) Not later than the 30th day after the date the board |
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removes a director, the board shall begin the process of filling the |
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vacancy in accordance with Section 49.105, Water Code. |
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SECTION 3. Subchapter B, Chapter 7201, Special District |
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Local Laws Code, is amended by adding Section 7201.059 to read as |
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follows: |
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Sec. 7201.059. DISQUALIFICATION OF DIRECTORS. A director |
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is disqualified from serving as a director if: |
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(1) the director is a member or is appointed or elected |
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as a member of the governing body of another political subdivision; |
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(2) the director does not: |
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(A) meet the eligibility requirements under |
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Section 7201.072; |
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(B) file a campaign treasurer appointment form |
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required under Section 7201.055(b)(3); or |
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(C) file each report required under Section |
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7201.055(b)(4); or |
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(3) the board determines a relationship or employment |
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exists to which Section 49.052, Water Code, applies. |
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SECTION 4. Subchapter B-1, Chapter 7201, Special District |
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Local Laws Code, is amended by adding Section 7201.075 to read as |
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follows: |
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Sec. 7201.075. PUBLIC ACCESS TO DIRECTOR REPORTS. (a) The |
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district shall post to the district's Internet website and make |
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publicly available each report required to be filed with the Texas |
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Ethics Commission under Title 15, Election Code, by: |
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(1) a director; |
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(2) a candidate for the board; or |
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(3) a specific-purpose committee responsible for |
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supporting, opposing, or assisting a director or candidate for the |
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board. |
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(b) The district shall make available a report under |
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Subsection (a) not later than the fifth business day after the date |
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the report is filed with the board. |
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(c) This section may not be construed to limit public access |
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to information in a report described by Subsection (a) through |
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other electronic or print distribution. |
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(d) The district may remove the address of a person, except |
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for the city, state, and zip code, listed as having made a political |
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contribution to the member, candidate, or committee before posting |
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a report on the district's Internet website. The information must |
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remain available in a copy of the report maintained in the |
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district's office. |
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SECTION 5. Chapter 7201, Special District Local Laws Code, |
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is amended by adding Subchapter E to read as follows: |
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SUBCHAPTER E. RECEIVERSHIP OF DISTRICT; ENFORCEMENT |
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Sec. 7201.301. DEFINITIONS. In this subchapter: |
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(1) "Agent" means an individual who exercises |
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discretion in the planning, recommending, selecting, or |
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contracting of a vendor or contractor for the sale, lease, or |
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purchase of real property, goods, or services on behalf of the |
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district. |
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(2) "Commission" means the Texas Commission on |
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Environmental Quality. |
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Sec. 7201.302. APPOINTMENT OF RECEIVER. (a) At the request |
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of the commission, the attorney general shall bring an action for |
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the appointment of a receiver to collect the assets and carry on the |
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business of the district if the district: |
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(1) received three consecutive audit reports with |
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anything other than an unqualified or clean opinion; |
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(2) completed five consecutive fiscal years at a net |
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loss; |
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(3) has defaulted on more than one financial debt |
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obligation; |
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(4) has a director or agent who has been convicted of |
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or has pleaded guilty or nolo contendere to a civil or criminal |
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offense related to the management or governance of the district; or |
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(5) violates a final judgment issued by a district |
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court in an action brought by the attorney general under: |
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(A) this chapter; |
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(B) Chapter 7, 13, 49, or 65, Water Code; |
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(C) Chapter 341, Health and Safety Code; |
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(D) laws governing the selection, monitoring, or |
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review and evaluation of professional services, vendors, or |
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contractors for construction or improvement projects; or |
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(E) a rule adopted or order issued under any |
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statute listed in this subdivision. |
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(b) The court shall appoint a receiver if an appointment is |
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necessary to: |
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(1) guarantee the collection of assessments, fees, |
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penalties, or interest; |
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(2) guarantee continuous and adequate service to the |
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customers of the district; or |
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(3) prevent continued or repeated violations of a |
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court order or final commission order. |
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Sec. 7201.303. POWERS AND DUTIES OF RECEIVER. (a) The |
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receiver shall execute a bond in an amount to be set by the court to |
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ensure the proper performance of the receiver's duties. |
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(b) After appointment and execution of bond, the receiver |
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shall take possession of the assets of the district specified by the |
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court. |
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(c) Until discharged by the court, the receiver shall |
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perform the duties that the court directs to preserve the assets and |
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carry on the business of the district and shall strictly observe the |
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final order involved. |
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(d) The receiver has the powers and duties necessary to |
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ensure the continued operation of the district and the provision of |
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continuous and adequate services, including: |
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(1) meter reading; |
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(2) billing for services; |
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(3) collecting revenue; |
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(4) disbursing funds; |
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(5) accessing all system components; and |
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(6) requesting rate increases. |
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Sec. 7201.304. DISSOLUTION OF RECEIVERSHIP. The court may |
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dissolve the receivership and order the assets and control of the |
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business returned to the district if the district shows good cause |
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for the dissolution of the receivership. |
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Sec. 7201.305. EFFECT ON COMMISSION ENFORCEMENT AUTHORITY. |
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This section does not affect the authority of the commission to |
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pursue an enforcement action against the district or an affiliated |
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person. |
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SECTION 6. Not later than the 30th day after the effective |
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date of this Act, the board of directors of the Agua Special Utility |
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District shall adopt or update procedures for the removal of a |
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director under Section 7201.058, Special District Local Laws Code, |
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as amended by this Act. |
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SECTION 7. This Act takes effect September 1, 2023. |
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