1. (1) The board may adopt a dissolution resolution if:

   1. (a) the district has ceased operations in the service area; and
   2. (b) the district has no outstanding debt or other obligations.
2. (2) The Legislature may dissolve the district by joint resolution.

3. (3) Upon dissolution of the district:

   1. (a) all outstanding revenue bonds shall be defeased or retired in accordance with their terms before dissolution is effective; and
   2. (b) all remaining assets of the district shall be transferred to the state.

Enacted by Chapter 474, 2026 General Session