Bill Text: TX SB1188 | 2023-2024 | 88th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to receivership of the Agua Special Utility District and requirements for directors of the Agua Special Utility District.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2023-06-18 - Effective on 9/1/23 [SB1188 Detail]

Download: Texas-2023-SB1188-Introduced.html

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88R1394 SGM-F
By: Hinojosa S.B. No. 1188

A BILL TO BE ENTITLED
AN ACT
relating to receivership of the Agua Special Utility District and
requirements for candidates for the board of directors of the Agua
Special Utility District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 7201.055(b), Special District Local Laws
Code, is amended to read as follows:
(b) A candidate for a position on the board must:
(1) reside in the subdistrict represented by that
position; [and]
(2) be eligible to hold office under Section 141.001,
Election Code;
(3) file a campaign treasurer appointment form
described by Chapter 252, Election Code, with the Texas Ethics
Commission; and
(4) file each report required under Title 15, Election
Code, with the Texas Ethics Commission.
SECTION 2. Chapter 7201, Special District Local Laws Code,
is amended by adding Subchapter E to read as follows:
SUBCHAPTER E. RECEIVERSHIP OF DISTRICT; ENFORCEMENT
Sec. 7201.301. DEFINITIONS. In this subchapter:
(1) "Agent" means an individual who exercises
discretion in the planning, recommending, selecting, or
contracting of a vendor or contractor for the sale, lease, or
purchase of real property, goods, or services on behalf of the
district.
(2) "Commission" means the Texas Commission on
Environmental Quality.
Sec. 7201.302. APPOINTMENT OF RECEIVER. (a) At the request
of the commission, the attorney general shall bring a suit for the
appointment of a receiver to collect the assets and carry on the
business of the district if the district:
(1) received three consecutive audit reports with
anything other than an unqualified or clean opinion;
(2) completed five consecutive fiscal years at a net
loss;
(3) has defaulted on one or more financial debt
obligations;
(4) has a director or agent who has been convicted of
or has pleaded guilty to a civil or criminal offense related to the
management or governance of the district within the past 10 years;
or
(5) violates a final judgment issued by a district
court in a suit by the attorney general under:
(A) this chapter;
(B) Chapter 7, 13, 49, or 65, Water Code;
(C) Chapter 341, Health and Safety Code;
(D) laws governing the selection, monitoring, or
review and evaluation of professional services, vendors, or
contractors for construction or improvement projects; or
(E) a rule adopted or order issued under any
statute listed in this subdivision.
(b) The court shall appoint a receiver if an appointment is
necessary to:
(1) guarantee the collection of assessments, fees,
penalties, or interest;
(2) guarantee continuous and adequate service to the
customers of the district; or
(3) prevent continued or repeated violations of a
court order or final commission order.
(c) The receiver shall execute a bond in an amount to be set
by the court to ensure the proper performance of the receiver's
duties.
(d) After appointment and execution of bond, the receiver
shall take possession of the assets of the district specified by the
court.
(e) 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
final order involved.
(f) The receiver has the powers and duties necessary to
ensure the continued operation of the district and the provision of
continuous and adequate services, including:
(1) meter reading;
(2) billing for services;
(3) collecting revenue;
(4) disbursing funds;
(5) accessing all system components; and
(6) requesting rate increases.
(g) The court may dissolve the receivership and order the
assets and control of the business returned to the district if the
district shows good cause for the dissolution of the receivership.
(h) This section does not affect the authority of the
commission to pursue an enforcement action against the district or
an affiliated person.
SECTION 3. This Act takes effect September 1, 2023.