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A BILL TO BE ENTITLED
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AN ACT
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relating to the supervision of water districts by the Texas |
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Commission on Environmental Quality. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 12.081(a), Water Code, is amended to |
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read as follows: |
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(a) The powers and duties of all districts and authorities |
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created under Article III, Section 52 and Article XVI, Section 59 of |
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the Texas Constitution are subject to the continuing right of |
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supervision of the State of Texas by and through the commission or |
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its successor, and this supervision may include but is not limited |
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to the authority to: |
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(1) inquire into the qualifications [competence,
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fitness, and reputation] of the officers and directors of any |
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district or authority; |
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(2) require, on its own motion or on complaint by any |
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person, audits or other financial information, inspections, |
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evaluations, and engineering reports; |
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(3) issue subpoenas for witnesses to carry out its |
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authority under this subsection; |
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(4) institute investigations and hearings that shall |
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be conducted by the State Office of Administrative Hearings [using
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examiners appointed by the commission]; |
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(5) issue rules necessary to supervise the districts |
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and authorities, except that such rules shall not apply to water |
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quality ordinances adopted by any river authority which meet or |
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exceed minimum requirements established by the commission; and |
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(6) the right of supervision granted herein shall not |
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apply to matters relating to electric utility operations. |
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SECTION 2. Subchapter D, Chapter 12, Water Code, is amended |
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by adding Section 12.0815 to read as follows: |
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Sec. 12.0815. SUSPENSION OF OPERATIONS. (a) This section |
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applies to a district created under Section 59, Article XVI, Texas |
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Constitution. |
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(b) The commission shall give written notice to a district |
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that has failed to follow a court order or commission directive that |
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the district must comply with the court order or commission |
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directive. |
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(c) Not later than the 30th day after the date the district |
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receives the notice under Subsection (b), the commission may |
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suspend operations of the district if the commission has not |
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received a response to the notice from the district, or has received |
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an inadequate response. |
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(d) If the commission suspends operations of a district |
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under this section, the commission shall request that the attorney |
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general bring suit for the appointment of a receiver to collect the |
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assets and carry on the business of the district. |
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(e) The court shall appoint a receiver if an appointment is |
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necessary: |
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(1) to guarantee the collection of assessments, fees, |
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penalties, or interest; |
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(2) to guarantee the continuous and adequate service |
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to the customers of the district; or |
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(3) to prevent continued or repeated violation of the |
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court order or commission directive. |
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(f) The receiver shall execute a bond to assure the proper |
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performance of the receiver's duties in an amount to be set by the |
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court. |
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(g) 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. Until discharged by the court, the receiver shall perform |
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the duties that the court directs to preserve the assets and carry |
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on the business of the district and shall strictly observe the court |
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order involved. |
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(h) On a showing of good cause by the district, 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. |
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SECTION 3. Sections 49.102(e) and (f), Water Code, are |
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amended to read as follows: |
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(e) If a majority of the votes cast in the election favor the |
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creation of the district, then the temporary board shall declare |
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that the district is created and enter the result in its minutes. |
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If a majority of the votes cast in the election are against the |
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creation of the district, the temporary board shall declare that |
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the district was defeated and enter the result in its minutes. A |
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copy of the order shall be filed with the commission not later than |
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the 30th day after the date of the election. |
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(f) The order canvassing the results of the confirmation |
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election shall contain a description of the district's boundaries |
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and shall be filed with the executive director and in the deed |
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records of the county or counties in which the district is located |
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not later than the 30th day after the date of the election. |
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SECTION 4. Section 49.195(a), Water Code, is amended to |
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read as follows: |
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(a) The executive director may review the audit report of |
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each district. After reviewing the audit report, the executive |
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director may request additional information from the district. The |
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district shall provide the additional information not later than |
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the 60th day after the date the request was received, unless the |
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executive director extends the time allowed for the district to |
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provide additional information for good cause. |
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SECTION 5. Section 49.196(a), Water Code, is amended to |
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read as follows: |
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(a) The executive director may review and investigate a |
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district's financial records and may conduct an on-site audit of a |
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district's financial information. The executive director shall |
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have access to all vouchers, receipts, district fiscal and |
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financial records, and other district records the executive |
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director considers necessary. |
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SECTION 6. This Act takes effect September 1, 2017. |