86R8864 SLB-F
 
  By: Hinojosa S.B. No. 912
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the suspension of operations of water districts that
  have failed to follow a court order or administrative directive by
  the Texas Commission on Environmental Quality.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter D, Chapter 12, Water Code, is amended
  by adding Section 12.0815 to read as follows:
         Sec. 12.0815.  SUSPENSION OF OPERATIONS. (a)  This section
  applies to a district created under Section 59, Article XVI, Texas
  Constitution.
         (b)  The commission shall give written notice to a district
  that has failed to follow a court order or commission directive that
  the district must comply with the court order or commission
  directive.
         (c)  Not later than the 30th day after the date the district
  receives the notice under Subsection (b), the commission may
  suspend operations of the district if the commission has not
  received a response to the notice from the district, or has received
  an inadequate response.
         (d)  If the commission suspends operations of a district
  under this section, the commission shall request that the attorney
  general bring suit for the appointment of a receiver to collect the
  assets and carry on the business of the district.
         (e)  The court shall appoint a receiver if an appointment is
  necessary:
               (1)  to guarantee the collection of assessments, fees,
  penalties, or interest;
               (2)  to guarantee the continuous and adequate service
  to the customers of the district; or
               (3)  to prevent continued or repeated violation of the
  court order or commission directive.
         (f)  The receiver shall execute a bond to assure the proper
  performance of the receiver's duties in an amount to be set by the
  court.
         (g)  After appointment and execution of bond, the receiver
  shall take possession of the assets of the district specified by the
  court. Until discharged by the court, the receiver shall perform
  the duties that the court directs to preserve the assets and carry
  on the business of the district and shall strictly observe the court
  order involved.
         (h)  On a showing of good cause by the district, the court may
  dissolve the receivership and order the assets and control of the
  business returned to the district.
         SECTION 2.  This Act takes effect September 1, 2019.