For districts created under Texas Water Code, Chapter 49, following the hearing, or for an order without hearing, the commission or executive director will enter an order that the district be dissolved if it finds that the district has performed none of the functions for which it was created for a period of five consecutive years before the day of the proceeding, or petition, and the district has no outstanding bonded indebtedness. The commission or executive director may enter an order that the district not be dissolved if it finds that the application lacks sufficient documentation. If the district is ordered dissolved, the order shall contain a provision that the assets of the district shall escheat to the state of Texas and shall be administered by the state treasurer and disposed of in the manner provided by Texas Property Code, Chapter 74.