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Texas Statutes (Last Updated: January 4, 2014) |
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WATER CODE |
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Title 2. WATER ADMINISTRATION |
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Subtitle B. WATER RIGHTS |
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Chapter 13. WATER RATES AND SERVICES |
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Subchapter K. VIOLATIONS AND ENFORCEMENT |
Sec. 13.4131. SUPERVISION OF CERTAIN UTILITIES
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(a) The commission, after providing to the utility notice and an opportunity for a hearing, may place a utility under supervision for gross or continuing mismanagement, gross or continuing noncompliance with this chapter or commission rules, or noncompliance with commission orders.
(b) While supervising a utility, the commission may require the utility to abide by conditions and requirements prescribed by the commission, including:
(1) management requirements;
(2) additional reporting requirements;
(3) restrictions on hiring, salary or benefit increases, capital investment, borrowing, stock issuance or dividend declarations, and liquidation of assets; and
(4) a requirement that the utility place the utility's funds into an account in a financial institution approved by the commission and use of those funds shall be restricted to reasonable and necessary utility expenses.
(c) While supervising a utility, the commission may require that the utility obtain commission approval before taking any action that may be restricted under Subsection (b) of this section. Any action or transaction which occurs without commission approval may be voided by the commission.