Tex.
Spec. Dist. Local Laws Code Section 7201.302
Appointment of Receiver
(a)
At the request of the commission, the attorney general shall bring an action for the appointment of a receiver to collect the assets and carry on the business of the district if the district:(1)
received three consecutive audit reports with anything other than an unqualified or clean opinion;(2)
completed five consecutive fiscal years at a net loss;(3)
has defaulted on more than one financial debt obligation;(4)
has a director or agent who has been convicted of or has pleaded guilty or nolo contendere to a civil or criminal offense related to the management or governance of the district; or(5)
violates a final judgment issued by a district court in an action brought by the attorney general under:(A)
this chapter;(B)
Chapter 7 (Enforcement), 13 (Water Rates and Services), 49 (Provisions Applicable to All Districts), or 65 (Special Utility Districts), Water Code;(C)
Chapter 341 (Minimum Standards of Sanitation and Health Protection Measures), Health and Safety Code;(D)
laws governing the selection, monitoring, or review and evaluation of professional services, vendors, or contractors for construction or improvement projects; or(E)
a rule adopted or order issued under any statute listed in this subdivision.(b)
The court shall appoint a receiver if an appointment is necessary to:(1)
guarantee the collection of assessments, fees, penalties, or interest;(2)
guarantee continuous and adequate service to the customers of the district; or(3)
prevent continued or repeated violations of a court order or final commission order.
Source:
Section 7201.302 — Appointment of Receiver, https://statutes.capitol.texas.gov/Docs/SD/htm/SD.7201.htm#7201.302 (accessed May 11, 2024).
