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.