Disincorporation, procedure — approval at election — appointment of receiver, duties.

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Effective - 28 Aug 1990

257.450. Disincorporation, procedure — approval at election — appointment of receiver, duties. — 1. Disincorporation of a conservancy district may be accomplished by a vote therefor on the submission of the question to the voters of the district. The submission is initiated as follows:

(1) When the board determines the disincorporation is desirable after a hearing on the subject is held, provided that notice of such hearing is made by publication setting a time for the hearing and citing the reasons for the proposed need to disincorporate, and the board makes its decision for disincorporation within thirty days after the hearing is concluded, and on such decision calls forthwith for a disincorporation election; or

(2) When the number of registered voters which would be necessary to regularly initiate proceedings for establishment of the district petitions the board for a disincorporation election. The determination of the validity of the petition signatures and the petition shall be bound by the same provisions, as such would apply to this section, as for those of petitioners initiating action for a proposed district as provided in this chapter. When the board determines that the petition is valid it shall call a hearing as on its own motion to disincorporate. After the hearing is concluded with no withdrawal of the petition as provided for in this section, the board shall submit the question to the voters of the district.

2. Whenever notice of publication of a hearing on disincorporation is ordered, the secretary of the board shall report the action to the official state agency designated by the governor to review plans of the district.

3. A majority of petitioners on a disincorporation petition may withdraw the petition and thereby terminate the proceedings at any time before the hearing is concluded.

4. In no case may disincorporation proceedings be initiated and carried forward unless at least one plan for the district has been prepared and finally approved as an official plan.

5. The question shall be submitted in substantially the following form:

Shall the ______ Conservancy District be disincorporated?

6. A vote of a majority of those voting is required for disincorporation.

7. When disincorporation is voted as provided in this section, the board of trustees shall certify the result to the court, whereupon the court shall appoint a competent person from within the district as receiver. The receiver shall have, under order of the court, such powers and responsibilities, as such would apply to this section, as provided by law for receivers in the liquidation of general and business corporations; shall have, under court order, the authority to exercise such taxing power of the district as is necessary to dispose of the bonded and other indebtedness of the district; and shall be considered, for the purpose of this section and related portions of this chapter, to be an officer of the district. Upon appointment of a receiver by the court, the power and authority of the trustees of the district to function as the board of the district ceases, and the offices of trustees terminate, subject to whatever orders the court may issue for securing the aid of the trustees in liquidation of the district.

8. When the receiver has closed the affairs and paid all debts of the district, he shall, subject to any further and necessary orders of the court, take action as follows:

(1) Pay to the county commission of each county within the district the money remaining in his hands, on the basis of a pro rata to each county commission as the taxes paid from each county to the district in the last full year of district tax collection under the board of trustees relate to the total district tax collection in said year; except that, in event the life of the district under the board does not encompass a full year of tax collection, the basis of payment shall be, as the court shall order, in a manner as similar as possible to such pro rata;

(2) File all data, plans and other official records of the district with the clerk of the court, which records shall be matters of public record available to any interested person.

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(L. 1959 S.B. 199 § 45, A.L. 1978 H.B. 971, A.L. 1990 H.B. 1070)


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