85R9263 DMS-D
By: Hinojosa S.B. No. 1423
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. 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 3. 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 4. 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 5. 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 6. This Act takes effect September 1, 2017.