37-1038. Dissolution of district
A. At any time after five years following the organization of a district, any
twenty-five owners of land or not less than twenty per cent of the owners of land lying
within the boundaries of the district may file a petition with the commissioner praying
that the operations of the district be terminated and its existence discontinued. The
commissioner shall conduct such public meetings and hearings upon the petition as may be
necessary to assist in the consideration thereof.
B. Within sixty days after filing of the petition, the commissioner shall give
notice of the holding of a referendum, and shall supervise the referendum and issue
appropriate regulations governing the conduct thereof. The question shall be submitted
by ballots upon which the propositions, "For terminating the existence of the (name of
district)" and "against terminating the existence of the (name of district)," shall be
printed, with a square after each proposition and an instruction to mark an X in the
square following the proposition for which the voter desires to vote. Only owners of
lands lying within the boundaries of the district shall be eligible to vote on the
referendum. No informality in the conduct of the referendum or in any matter relating
thereto shall invalidate the referendum or the result thereof, if due notice thereof has
been given substantially as provided in this chapter and the referendum has been fairly
conducted.
C. If sixty-five per cent of the landowners voting thereon vote to terminate the
existence of a district, the commissioner shall advise the supervisors to conclude the
affairs of the district. The supervisors shall dispose of all property belonging to the
district at public auction and shall transmit the proceeds of the sale to the state
treasurer for deposit, pursuant to sections 35-146 and 35-147.
D. The supervisors shall thereupon file a verified application with the secretary
of state for discontinuance of the district, together with the certificate of the
commissioner setting forth the determination of the commissioner that the continued
operation of the district is not administratively feasible. The application shall recite
that the property of the district has been disposed of and the proceeds paid over as
provided in this section, and shall include a full accounting of the properties and the
proceeds of the sale. The secretary of state shall issue to the supervisors a
certificate of dissolution, and shall record the certificate in his office.
E. The commissioner shall not entertain a petition for the discontinuance of any
district, nor conduct a referendum thereon, nor make any determination pursuant thereto,
more than once in five years.
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