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A BILL TO BE ENTITLED
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AN ACT
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relating to receivership of the Agua Special Utility District and |
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requirements for candidates for the board of directors of the Agua |
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Special Utility District. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 7201.055(b), Special District Local Laws |
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Code, is amended to read as follows: |
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(b) A candidate for a position on the board must: |
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(1) reside in the subdistrict represented by that |
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position; [and] |
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(2) be eligible to hold office under Section 141.001, |
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Election Code; |
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(3) file a campaign treasurer appointment form |
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described by Chapter 252, Election Code, with the Texas Ethics |
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Commission; and |
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(4) file each report required under Title 15, Election |
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Code, with the Texas Ethics Commission. |
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SECTION 2. Chapter 7201, Special District Local Laws Code, |
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is amended by adding Subchapter E to read as follows: |
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SUBCHAPTER E. RECEIVERSHIP OF DISTRICT; ENFORCEMENT |
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Sec. 7201.301. DEFINITIONS. In this subchapter: |
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(1) "Agent" means an individual who exercises |
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discretion in the planning, recommending, selecting, or |
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contracting of a vendor or contractor for the sale, lease, or |
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purchase of real property, goods, or services on behalf of the |
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district. |
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(2) "Commission" means the Texas Commission on |
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Environmental Quality. |
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Sec. 7201.302. APPOINTMENT OF RECEIVER. (a) At the request |
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of the commission, the attorney general shall bring a suit for the |
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appointment of a receiver to collect the assets and carry on the |
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business of the district if the district: |
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(1) received three consecutive audit reports with |
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anything other than an unqualified or clean opinion; |
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(2) completed five consecutive fiscal years at a net |
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loss; |
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(3) has defaulted on one or more financial debt |
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obligations; |
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(4) has a director or agent who has been convicted of |
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or has pleaded guilty to a civil or criminal offense related to the |
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management or governance of the district within the past 10 years; |
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or |
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(5) violates a final judgment issued by a district |
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court in a suit by the attorney general under: |
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(A) this chapter; |
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(B) Chapter 7, 13, 49, or 65, Water Code; |
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(C) Chapter 341, Health and Safety Code; |
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(D) laws governing the selection, monitoring, or |
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review and evaluation of professional services, vendors, or |
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contractors for construction or improvement projects; or |
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(E) a rule adopted or order issued under any |
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statute listed in this subdivision. |
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(b) The court shall appoint a receiver if an appointment is |
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necessary to: |
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(1) guarantee the collection of assessments, fees, |
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penalties, or interest; |
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(2) guarantee continuous and adequate service to the |
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customers of the district; or |
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(3) prevent continued or repeated violations of a |
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court order or final commission order. |
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(c) The receiver shall execute a bond in an amount to be set |
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by the court to ensure the proper performance of the receiver's |
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duties. |
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(d) After appointment and execution of bond, the receiver |
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shall take possession of the assets of the district specified by the |
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court. |
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(e) Until discharged by the court, the receiver shall |
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perform the duties that the court directs to preserve the assets and |
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carry on the business of the district and shall strictly observe the |
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final order involved. |
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Statutes affected:
Introduced: Special District Local Laws Code 7201.055 (Special District Local Laws Code 7201)
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