Sec. 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, 13, 49, or 65, Water Code;
(C)  Chapter 341, 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.
Added by Acts 2023, 88th Leg., R.S., Ch. 1088 (S.B. 1188), Sec. 5, eff. September 1, 2023.