Texas 2023 - 88th Regular

Texas House Bill HB5313 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R1394 SGM-F
2	2	By: Muñoz, Jr. H.B. No. 5313
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to receivership of the Agua Special Utility District and
8	8	requirements for candidates for the board of directors of the Agua
9	9	Special Utility District.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 7201.055(b), Special District Local Laws
12	12	Code, is amended to read as follows:
13	13	(b) A candidate for a position on the board must:
14	14	(1) reside in the subdistrict represented by that
15	15	position; [and]
16	16	(2) be eligible to hold office under Section 141.001,
17	17	Election Code;
18	18	(3) file a campaign treasurer appointment form
19	19	described by Chapter 252, Election Code, with the Texas Ethics
20	20	Commission; and
21	21	(4) file each report required under Title 15, Election
22	22	Code, with the Texas Ethics Commission.
23	23	SECTION 2. Chapter 7201, Special District Local Laws Code,
24	24	is amended by adding Subchapter E to read as follows:
25	25	SUBCHAPTER E. RECEIVERSHIP OF DISTRICT; ENFORCEMENT
26	26	Sec. 7201.301. DEFINITIONS. In this subchapter:
27	27	(1) "Agent" means an individual who exercises
28	28	discretion in the planning, recommending, selecting, or
29	29	contracting of a vendor or contractor for the sale, lease, or
30	30	purchase of real property, goods, or services on behalf of the
31	31	district.
32	32	(2) "Commission" means the Texas Commission on
33	33	Environmental Quality.
34	34	Sec. 7201.302. APPOINTMENT OF RECEIVER. (a) At the request
35	35	of the commission, the attorney general shall bring a suit for the
36	36	appointment of a receiver to collect the assets and carry on the
37	37	business of the district if the district:
38	38	(1) received three consecutive audit reports with
39	39	anything other than an unqualified or clean opinion;
40	40	(2) completed five consecutive fiscal years at a net
41	41	loss;
42	42	(3) has defaulted on one or more financial debt
43	43	obligations;
44	44	(4) has a director or agent who has been convicted of
45	45	or has pleaded guilty to a civil or criminal offense related to the
46	46	management or governance of the district within the past 10 years;
47	47	or
48	48	(5) violates a final judgment issued by a district
49	49	court in a suit by the attorney general under:
50	50	(A) this chapter;
51	51	(B) Chapter 7, 13, 49, or 65, Water Code;
52	52	(C) Chapter 341, Health and Safety Code;
53	53	(D) laws governing the selection, monitoring, or
54	54	review and evaluation of professional services, vendors, or
55	55	contractors for construction or improvement projects; or
56	56	(E) a rule adopted or order issued under any
57	57	statute listed in this subdivision.
58	58	(b) The court shall appoint a receiver if an appointment is
59	59	necessary to:
60	60	(1) guarantee the collection of assessments, fees,
61	61	penalties, or interest;
62	62	(2) guarantee continuous and adequate service to the
63	63	customers of the district; or
64	64	(3) prevent continued or repeated violations of a
65	65	court order or final commission order.
66	66	(c) The receiver shall execute a bond in an amount to be set
67	67	by the court to ensure the proper performance of the receiver's
68	68	duties.
69	69	(d) After appointment and execution of bond, the receiver
70	70	shall take possession of the assets of the district specified by the
71	71	court.
72	72	(e) Until discharged by the court, the receiver shall
73	73	perform the duties that the court directs to preserve the assets and
74	74	carry on the business of the district and shall strictly observe the
75	75	final order involved.
76	76	(f) The receiver has the powers and duties necessary to
77	77	ensure the continued operation of the district and the provision of
78	78	continuous and adequate services, including:
79	79	(1) meter reading;
80	80	(2) billing for services;
81	81	(3) collecting revenue;
82	82	(4) disbursing funds;
83	83	(5) accessing all system components; and
84	84	(6) requesting rate increases.
85	85	(g) The court may dissolve the receivership and order the
86	86	assets and control of the business returned to the district if the
87	87	district shows good cause for the dissolution of the receivership.
88	88	(h) This section does not affect the authority of the
89	89	commission to pursue an enforcement action against the district or
90	90	an affiliated person.
91	91	SECTION 3. This Act takes effect September 1, 2023.