89R3532 MP-F By: Vasut H.B. No. 2010 A BILL TO BE ENTITLED AN ACT relating to the dissolution of certain special districts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 49.321, Water Code, is amended to read as follows: Sec. 49.321. DISSOLUTION AUTHORITY. After notice and hearing, the commission: (1) may dissolve any district that is inactive for a period of at least 5 but less than 10 [five] consecutive years and has no outstanding bonded indebtedness; and (2) shall dissolve any district that is inactive for a period of at least 10 consecutive years and has no outstanding bonded indebtedness. SECTION 2. Section 49.324, Water Code, is amended to read as follows: Sec. 49.324. ORDER OF DISSOLUTION. The commission: (1) may enter an order dissolving the district at the conclusion of the hearing if it finds that the district has performed none of the functions for which it was created for a period of at least 5 but less than 10 [five] consecutive years before the day of the proceeding and that the district has no outstanding bonded indebtedness; and (2) shall enter an order dissolving the district at the conclusion of the hearing if it finds that the district has performed none of the functions for which it was created for a period of at least 10 consecutive years before the day of the proceeding and that the district has no outstanding bonded indebtedness. SECTION 3. The Texas Commission on Environmental Quality shall promptly institute proceedings in accordance with Subchapter K, Chapter 49, Water Code, to dissolve each district, as defined by Section 49.001 of that code, that as of the effective date of this Act has been inactive for at least 10 consecutive years and that has no outstanding bonded indebtedness and shall enter an order under Section 49.324(2) of that code, as added by this Act, dissolving each district described by that subdivision not later than the 180th day after the effective date of this Act. SECTION 4. This Act takes effect September 1, 2025.