Texas § 7201.302 APPOINTMENT OF RECEIVER.

Texas Statutes

§ 7201.302 — APPOINTMENT OF RECEIVER.

Texas § 7201.302

Code SDSpecial District Local Laws Code

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Bluebook

Tex. Special District Local Laws Code Code Ann. § 7201.302 (2026).

Text

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 , o

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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.