(a) All water districts that provide or propose to provide water or wastewater service to residential retail or commercial customers shall adopt rules that require inspection and repair of all damages to facilities the district is responsible for maintaining prior to initiation of service. The rules must, at a minimum:(1) require that the district's operator or the district be notified prior to making any improvement or starting any construction on property within the district if such improvement, construction or equipment used in the construction will be within easements, rights-of-way or property where district facilities are located;(2) require that an inspection be completed by the district's operator or the district to verify district facilities prior to starting construction;(3) require that an inspection be completed by the district's operator or the district to verify district facilities after completion of construction; and(4) require that any damages found be repaired to the satisfaction of the district or that reimbursement for repairs be made to the district before service is initiated.(b) This section is applicable whether a district intends on operating facilities itself or intends on conveying the facilities to a third party.