1. (a) Chapters 36 and 49, subchapters I and K, being the Texas Water Code, §§36.301-36.307 and 49.321-49.327 authorize the commission to dissolve any district as defined in Water Code, §49.001(1) which is inactive for a period of three consecutive years for a groundwater conservation district or five consecutive years for other water districts and has no outstanding bonded indebtedness. A groundwater conservation district that is composed of territory entirely within one county may be dissolved even if it has outstanding indebtedness that matures after the year in which the district is dissolved.
2. (b) Proceedings for the dissolution of a district may be initiated by the executive director upon his own initiative or upon the receipt of an application submitted to the executive director by the owners of land or interests in land within the district which is sought to be dissolved, a member or members of the board of directors of the district, or any other party who can demonstrate an interest in having the district dissolved.
3. (c) The application must include a petition on the part of the party requesting dissolution including a statement of the reasons that a dissolution is desirable or necessary, and contain a statement that the district has been financially dormant for the preceding three-year period for a groundwater conservation district or the preceding five-year period for other water districts and has performed no functions for the five previous preceding years and has no outstanding bonded indebtedness. A groundwater conservation district that is composed of territory entirely within one county may be dissolved even if it has outstanding indebtedness that matures after the year in which the district is dissolved.
4. (d) If the petition is submitted by a landowner, a director of the district, or other interested party, the application must contain certified copies of dormancy affidavits submitted pursuant to Water Code, §49.197, for three years for a groundwater conservation district or five years for other water districts preceding the year in which the application is submitted.
5. (e) Evidence that the district has no outstanding bonded indebtedness may be filed as prepared testimony with the application and may consist of statements or testimony from the district's attorney, engineer, or officer and shall include an affidavit of the state Comptroller of Public Accounts certifying that the district has never registered any bonds with the comptroller.
6. (f) Applications shall include a list of assets and liabilities of the district.

7. (g) The executive director may initiate procedures to dissolve a district without financial dormancy affidavits on file if:

   1. (1) The district has failed to comply with the reporting requirements of this chapter for the previous five year period;
   2. (2) attempts to contact directors, interested parties or anyone with knowledge of district's financial activity have failed; and
   3. (3) the state comptroller of public accounts has submitted a certificate certifying that the district has never registered any bonds with the comptroller.

Source Note:The provisions of this §293.131 adopted to be effective September 5, 1986, 11 TexReg 3748; amended to be effective June 30, 1993, 18 TexReg 3758; amended to be effective October 22, 1996, 21 TexReg 9905; amended to be effective June 5, 1998, 23 TexReg 5715.