| (a) Definitions.
(1) Operating Entity--The governing body of a political subdivision,
as defined by Texas Water Code, §17.921(3) and by the rules of the Texas
Water Development Board (TWDB), responsible for providing water supply and
sewer services and the management of its water and sewer system.
(2) Preenforcement Threshold of Noncompliance--The point at
which the commission determines that an operating entity needs training because
its financial, managerial, or technical capabilities are inadequate to ensure
that operation of its water or wastewater facilities will meet requirements
of the Economically Distressed Areas Program ((EDAP), Texas Water Code, Chapter
17, Subchapter M) or are inadequate to ensure its financial viability.
(b) The commission may evaluate whether the managerial, financial,
and technical capabilities of an operating entity who is an applicant for,
or recipient of, financial assistance from the EDAP are adequate to meet program
requirements or to remain financially viable. The commission may also evaluate
whether an operating entity needs training if the operating entity has a history
of compliance problems.
(c) The commission may notify the TWDB that the operating entity
needs training if an inspection or other assessment of the water or sewer
system by the TWDB or commission reveals that the governing body has failed
to:
(1) properly exercise its fiduciary duties;
(2) properly manage its employees' work-related activities;
or
(3) ensure adequate operation of its physical facilities.
(d) The commission shall notify the TWDB when the commission
assesses a penalty against an operating entity. If the commission assesses
a penalty against an operating entity in an enforcement action, the enforcement
order shall contain a provision requiring that the operating entity receive
training as required by the TWDB.
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