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        |  | A BILL TO BE ENTITLED | 
      
        |  | AN ACT | 
      
        |  | relating to the supervision of water districts by the Texas | 
      
        |  | Commission on Environmental Quality. | 
      
        |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
        |  | SECTION 1.  Section 12.081(a), Water Code, is amended to | 
      
        |  | read as follows: | 
      
        |  | (a)  The powers and duties of all districts and authorities | 
      
        |  | created under Article III, Section 52 and Article XVI, Section 59 of | 
      
        |  | the Texas Constitution are subject to the continuing right of | 
      
        |  | supervision of the State of Texas by and through the commission or | 
      
        |  | its successor, and this supervision may include but is not limited | 
      
        |  | to the authority to: | 
      
        |  | (1)  inquire into the qualifications [ competence,  | 
      
        |  | fitness, and reputation] of the officers and directors of any | 
      
        |  | district or authority; | 
      
        |  | (2)  require, on its own motion or on complaint by any | 
      
        |  | person, audits or other financial information, inspections, | 
      
        |  | evaluations, and engineering reports; | 
      
        |  | (3)  issue subpoenas for witnesses to carry out its | 
      
        |  | authority under this subsection; | 
      
        |  | (4)  institute investigations and hearings that shall | 
      
        |  | be conducted by the State Office of Administrative Hearings [ using  | 
      
        |  | examiners appointed by the commission]; | 
      
        |  | (5)  issue rules necessary to supervise the districts | 
      
        |  | and authorities, except that such rules shall not apply to water | 
      
        |  | quality ordinances adopted by any river authority which meet or | 
      
        |  | exceed minimum requirements established by the commission; and | 
      
        |  | (6)  the right of supervision granted herein shall not | 
      
        |  | apply to matters relating to electric utility operations. | 
      
        |  | SECTION 2.  Sections 49.102(e) and (f), Water Code, are | 
      
        |  | amended to read as follows: | 
      
        |  | (e)  If a majority of the votes cast in the election favor the | 
      
        |  | creation of the district, then the temporary board shall declare | 
      
        |  | that the district is created and enter the result in its minutes. | 
      
        |  | If a majority of the votes cast in the election are against the | 
      
        |  | creation of the district, the temporary board shall declare that | 
      
        |  | the district was defeated and enter the result in its minutes.  A | 
      
        |  | copy of the order shall be filed with the commission not later than | 
      
        |  | the 30th day after the date of the election. | 
      
        |  | (f)  The order canvassing the results of the confirmation | 
      
        |  | election shall contain a description of the district's boundaries | 
      
        |  | and shall be filed with the executive director and in the deed | 
      
        |  | records of the county or counties in which the district is located | 
      
        |  | not later than the 30th day after the date of the election. | 
      
        |  | SECTION 3.  Section 49.195(a), Water Code, is amended to | 
      
        |  | read as follows: | 
      
        |  | (a)  The executive director may review the audit report of | 
      
        |  | each district.  After reviewing the audit report, the executive | 
      
        |  | director may request additional information from the district.  The | 
      
        |  | district shall provide the additional information not later than | 
      
        |  | the 60th day after the date the request was received, unless the | 
      
        |  | executive director extends the time allowed for the district to | 
      
        |  | provide additional information for good cause. | 
      
        |  | SECTION 4.  Section 49.196(a), Water Code, is amended to | 
      
        |  | read as follows: | 
      
        |  | (a)  The executive director may review and investigate a | 
      
        |  | district's financial records and may conduct an on-site audit of a | 
      
        |  | district's financial information. The executive director shall | 
      
        |  | have access to all vouchers, receipts, district fiscal and | 
      
        |  | financial records, and other district records the executive | 
      
        |  | director considers necessary. | 
      
        |  | SECTION 5.  This Act takes effect September 1, 2019. |