Texas 2017 - 85th Regular

Texas Senate Bill SB1423 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R9263 DMS-D
2	2	By: Hinojosa S.B. No. 1423
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the supervision of water districts by the Texas
8	8	Commission on Environmental Quality.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 12.081(a), Water Code, is amended to
11	11	read as follows:
12	12	(a) The powers and duties of all districts and authorities
13	13	created under Article III, Section 52 and Article XVI, Section 59 of
14	14	the Texas Constitution are subject to the continuing right of
15	15	supervision of the State of Texas by and through the commission or
16	16	its successor, and this supervision may include but is not limited
17	17	to the authority to:
18	18	(1) inquire into the qualifications [competence,
19	19	fitness, and reputation] of the officers and directors of any
20	20	district or authority;
21	21	(2) require, on its own motion or on complaint by any
22	22	person, audits or other financial information, inspections,
23	23	evaluations, and engineering reports;
24	24	(3) issue subpoenas for witnesses to carry out its
25	25	authority under this subsection;
26	26	(4) institute investigations and hearings that shall
27	27	be conducted by the State Office of Administrative Hearings [using
28	28	examiners appointed by the commission];
29	29	(5) issue rules necessary to supervise the districts
30	30	and authorities, except that such rules shall not apply to water
31	31	quality ordinances adopted by any river authority which meet or
32	32	exceed minimum requirements established by the commission; and
33	33	(6) the right of supervision granted herein shall not
34	34	apply to matters relating to electric utility operations.
35	35	SECTION 2. Subchapter D, Chapter 12, Water Code, is amended
36	36	by adding Section 12.0815 to read as follows:
37	37	Sec. 12.0815. SUSPENSION OF OPERATIONS. (a) This section
38	38	applies to a district created under Section 59, Article XVI, Texas
39	39	Constitution.
40	40	(b) The commission shall give written notice to a district
41	41	that has failed to follow a court order or commission directive that
42	42	the district must comply with the court order or commission
43	43	directive.
44	44	(c) Not later than the 30th day after the date the district
45	45	receives the notice under Subsection (b), the commission may
46	46	suspend operations of the district if the commission has not
47	47	received a response to the notice from the district, or has received
48	48	an inadequate response.
49	49	(d) If the commission suspends operations of a district
50	50	under this section, the commission shall request that the attorney
51	51	general bring suit for the appointment of a receiver to collect the
52	52	assets and carry on the business of the district.
53	53	(e) The court shall appoint a receiver if an appointment is
54	54	necessary:
55	55	(1) to guarantee the collection of assessments, fees,
56	56	penalties, or interest;
57	57	(2) to guarantee the continuous and adequate service
58	58	to the customers of the district; or
59	59	(3) to prevent continued or repeated violation of the
60	60	court order or commission directive.
61	61	(f) The receiver shall execute a bond to assure the proper
62	62	performance of the receiver's duties in an amount to be set by the
63	63	court.
64	64	(g) After appointment and execution of bond, the receiver
65	65	shall take possession of the assets of the district specified by the
66	66	court. Until discharged by the court, the receiver shall perform
67	67	the duties that the court directs to preserve the assets and carry
68	68	on the business of the district and shall strictly observe the court
69	69	order involved.
70	70	(h) On a showing of good cause by the district, the court may
71	71	dissolve the receivership and order the assets and control of the
72	72	business returned to the district.
73	73	SECTION 3. Sections 49.102(e) and (f), Water Code, are
74	74	amended to read as follows:
75	75	(e) If a majority of the votes cast in the election favor the
76	76	creation of the district, then the temporary board shall declare
77	77	that the district is created and enter the result in its minutes.
78	78	If a majority of the votes cast in the election are against the
79	79	creation of the district, the temporary board shall declare that
80	80	the district was defeated and enter the result in its minutes. A
81	81	copy of the order shall be filed with the commission not later than
82	82	the 30th day after the date of the election.
83	83	(f) The order canvassing the results of the confirmation
84	84	election shall contain a description of the district's boundaries
85	85	and shall be filed with the executive director and in the deed
86	86	records of the county or counties in which the district is located
87	87	not later than the 30th day after the date of the election.
88	88	SECTION 4. Section 49.195(a), Water Code, is amended to
89	89	read as follows:
90	90	(a) The executive director may review the audit report of
91	91	each district. After reviewing the audit report, the executive
92	92	director may request additional information from the district. The
93	93	district shall provide the additional information not later than
94	94	the 60th day after the date the request was received, unless the
95	95	executive director extends the time allowed for the district to
96	96	provide additional information for good cause.
97	97	SECTION 5. Section 49.196(a), Water Code, is amended to
98	98	read as follows:
99	99	(a) The executive director may review and investigate a
100	100	district's financial records and may conduct an on-site audit of a
101	101	district's financial information. The executive director shall
102	102	have access to all vouchers, receipts, district fiscal and
103	103	financial records, and other district records the executive
104	104	director considers necessary.
105	105	SECTION 6. This Act takes effect September 1, 2017.