(a) The district may apply to the commission for designation as an authorized agent to implement and enforce on-site sewage disposal rules under Chapter 366, Health and Safety Code.
(b) If the district finds that due to the nature of the soil or drainage in the area it is necessary to prevent water pollution that may injure the public health, the board by rule may:
(1) provide limits on the number and kind of septic tanks in an area defined by the rule;
(2) prohibit the use of septic tanks in the area; or
(3) prohibit the installation of new septic tanks in the area.

(c) The board shall consult with the commission before the adoption of a rule under Subsection (b).
(d) The board may not adopt a rule under Subsection (b) without first holding a public hearing in the area to be affected by the rule.
(e) The board by order may provide for a gradual and systematic reduction of the number or kind of septic tanks in the area and, by rule, may provide for a system to license and issue permits for the installation of new septic tanks in the area affected. If the board adopts a license and permit system, a person may not install a septic tank in the area without a license or permit from the board.