1. (a) Texas Water Code, §§36.304 - 36.310 authorize the commission to dissolve any district as defined in Texas Water Code, §36.001(1), a groundwater conservation district, which is not operational as determined under Texas Water Code, §36.302 and has no outstanding bonded indebtedness.

   1. (1) 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. (2) The procedures set out in §293.137 of this title (relating to Commission Action for Failure of a Groundwater Conservation District to Submit a Management Plan or to Implement a Certified Plan through its Operations) shall apply to these actions.
   3. (3) Upon the dissolution of a groundwater conservation district by the commission, all assets of the district shall be sold at public auction and the proceeds given to the county if it is a single county district. If it is a multi-county district, the proceeds shall be divided with the counties in proportion to the surface land area in each county served by the district.

2. (b) Texas Water Code, Chapter 49, Subchapters I and K, §§49.321 - 49.327 authorize the commission to dissolve any district as defined in Texas Water Code, §49.001(1), which is inactive for a period of five consecutive years and has no outstanding bonded indebtedness.

   1. (1) 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 filed with 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.

   2. (2) If the dissolution is initiated by a party other than the executive director, the application must include:

      1. (A) a petition on the part of the party requesting dissolution including a statement of the reasons that a dissolution is desirable or necessary;
      2. (B) a statement that the district has been financially dormant for the preceding five-year period for water districts and has performed no functions for the five preceding years and has no outstanding bonded indebtedness;
      3. (C) certified copies of dormancy affidavits submitted pursuant to Texas Water Code, §49.197, for five years for water districts preceding the year in which the application is submitted;
      4. (D) 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;
      5. (E) list of assets and liabilities of the district;
      6. (F) evidence that all landowners who have not signed the petition have been notified by mail of the dissolution request. A certified tax roll for the district and certificate of mailing executed by the postmaster would be sufficient evidence;
      7. (G) a filing fee in the amount of $100; and
      8. (H) additional data and information as the executive director or commission may deem necessary or pertinent to the application.

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

      1. (A) the district has failed to comply with the reporting requirements of this chapter for the previous five-year period;
      2. (B) attempts to contact directors, interested parties, or anyone with knowledge of district's financial activity have failed; and
      3. (C) 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; amended to be effective February 21, 1999, 24 TexReg 960; amended to be effective September 14, 2000, 25 TexReg 8955.