HB 2010

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
Sec. 49.321.  DISSOLUTION AUTHORITY.  After notice and
(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
SECTION 2.  Section 49.324, Water Code, is amended to read as
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
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.