{"data":{"id":"us-tx/tex.-special-district-local-laws-code-7201.302","jurisdiction":"us-tx","citation":"Tex. Special District Local Laws Code § 7201.302","heading":"APPOINTMENT OF RECEIVER.","body":"(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:\n(1) received three consecutive audit reports with anything other than an unqualified or clean opinion;\n(2) completed five consecutive fiscal years at a net loss;\n(3) has defaulted on more than one financial debt obligation;\n(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\n(5) violates a final judgment issued by a district court in an action brought by the attorney general under:\n(A) this chapter;\n(B) Chapter 7, 13, 49, or 65, Water Code;\n(C) Chapter 341, Health and Safety Code;\n(D) laws governing the selection, monitoring, or review and evaluation of professional services, vendors, or contractors for construction or improvement projects; or\n(E) a rule adopted or order issued under any statute listed in this subdivision.\n(b) The court shall appoint a receiver if an appointment is necessary to:\n(1) guarantee the collection of assessments, fees, penalties, or interest;\n(2) guarantee continuous and adequate service to the customers of the district; or\n(3) prevent continued or repeated violations of a court order or final commission order.\nAdded by Acts 2023, 88th Leg., R.S., Ch. 1088 (S.B. 1188), Sec. 5, eff. September 1, 2023.","path":["SPECIAL DISTRICT LOCAL LAWS CODE","TITLE 6. WATER AND WASTEWATER","SUBTITLE C. SPECIAL UTILITY DISTRICTS","CHAPTER 7201. AGUA SPECIAL UTILITY DISTRICT","SUBCHAPTER E. RECEIVERSHIP OF DISTRICT; ENFORCEMENT"],"source_url":"https://statutes.capitol.texas.gov/Docs/SD/htm/SD.7201.htm#7201.302","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:41Z","sha256":"e85c1939a408cb693bcc884586fb565fb5b35e42d817bdaa588d9e90764c6fd4","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-special-district-local-laws-code-7201.301","next":"us-tx/tex.-special-district-local-laws-code-7201.303"},"notice":"GroundRules: Original legal text. Not legal advice."}