EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06462-01-1
S. 1058 2
273. FISCAL YEAR.
274. BUDGET.
275. INDEBTEDNESS.
276. PLEDGE OF REVENUES
277. SINKING AND RESERVE FUNDS.
278. SERVICE FEES.
279. SPECIAL MEETINGS.
280. WITHDRAWAL OF A MEMBER MUNICIPALITY.
281. ADMISSION OF DISTRICT MEMBERS.
282. DISSOLUTION.
§ 250. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
1. "COMMUNICATIONS PLANT" MEANS ANY AND ALL PARTS OF ANY COMMUNI-
CATIONS SYSTEM OWNED BY A DISTRICT, WHETHER USING WIRES, CABLES, FIBER
OPTICS, WIRELESS, OTHER TECHNOLOGIES, OR A COMBINATION THEREOF, AND USED
FOR THE PURPOSE OF TRANSPORTING OR STORING INFORMATION, IN WHATEVER
FORMS, DIRECTIONS, AND MEDIA, TOGETHER WITH ANY IMPROVEMENTS THERETO
CONSTRUCTED OR ACQUIRED, AND ALL OTHER FACILITIES, EQUIPMENT, AND
APPURTENANCES NECESSARY OR APPROPRIATE TO SUCH SYSTEM. THE TERM "COMMU-
NICATIONS PLANT" AND ANY REGULATORY IMPLICATIONS OR ANY RESTRICTIONS
UNDER THIS ARTICLE REGARDING A "COMMUNICATIONS PLANT" SHALL NOT APPLY TO
FACILITIES OR PORTIONS OF ANY COMMUNICATIONS FACILITIES INTENDED FOR USE
BY, AND SOLELY USED BY, A DISTRICT MEMBER AND ITS OWN OFFICERS AND
EMPLOYEES IN THE OPERATION OF MUNICIPAL DEPARTMENTS OR SYSTEMS OF WHICH
SUCH COMMUNICATIONS ARE MERELY AN ANCILLARY COMPONENT.
2. "COMMUNICATIONS PLANT IMPROVEMENTS" SHALL MEAN IMPROVEMENTS THAT
MAY BE USED FOR THE BENEFIT OF THE PUBLIC, WHETHER OR NOT PUBLICLY OWNED
OR OPERATED.
3. "COMMUNICATIONS UNION DISTRICT" OR "DISTRICT" MEANS A COLLECTION OF
TWO OR MORE CONTIGUOUS MUNICIPALITIES OR COMMUNITIES THAT AGREE TO
JOINTLY OPERATE A COMMUNICATIONS PLANT TO ALL RESIDENTS OF SUCH MUNICI-
PALITIES, AS PROVIDED UNDER THIS ARTICLE.
4. "DISTRICT MEMBER" OR "MEMBER" MEANS A MUNICIPALITY THAT ELECTS TO
FORM OR JOIN A COMMUNICATIONS UNION DISTRICT UNDER THIS ARTICLE.
5. "GOVERNING BOARD" OR "BOARD" MEANS THE GOVERNING BOARD OF THE
COMMUNICATIONS UNION DISTRICT AS ESTABLISHED UNDER THIS ARTICLE.
6. "LONG-TERM CONTRACT" MEANS AN AGREEMENT IN WHICH A DISTRICT INCURS
DIRECT OR CONDITIONAL OBLIGATIONS FOR WHICH THE COSTS ARE TOO GREAT TO
BE PAID OUT OF THE ORDINARY ANNUAL INCOME AND REVENUES OF SUCH DISTRICT,
IN THE JUDGMENT OF THE BOARD.
7. "MUNICIPALITY" MEANS ANY COUNTY, CITY, TOWN, OR VILLAGE.
§ 251. FORMATION. 1. ANY TWO OR MORE CONTIGUOUS MUNICIPALITIES IN THIS
STATE SHALL BE PERMITTED TO FORM A COMMUNICATIONS UNION DISTRICT FOR THE
DELIVERY OF COMMUNICATIONS SERVICES AND THE OPERATION OF A COMMUNI-
CATIONS PLANT, WHICH DISTRICT SHALL BE A BODY POLITIC AND CORPORATE.
2. A MUNICIPALITY ELECTING TO FORM A DISTRICT UNDER THIS ARTICLE SHALL
SUBMIT TO THE ELIGIBLE VOTERS OF SUCH MUNICIPALITY AT AN ANNUAL OR
SPECIAL MEETING A PROPOSITION IN SUBSTANTIALLY THE FOLLOWING FORM:
"SHALL THE (TOWN/VILLAGE/CITY) OF (NAME OF MUNICIPALITY) ENTER INTO A
COMMUNICATIONS UNION DISTRICT TO BE KNOWN AS (NAME OF PROPOSED
DISTRICT), UNDER THE PROVISIONS OF ARTICLE 12 OF THE PUBLIC SERVICE
LAW?".
3. ADDITIONAL MUNICIPALITIES MAY BE ADMITTED TO THE DISTRICT IN THE
MANNER PROVIDED IN SECTION TWO HUNDRED EIGHTY-ONE OF THIS ARTICLE.
§ 252. DISTRICT COMPOSITION. A DISTRICT FORMED UNDER THIS ARTICLE
SHALL BE COMPOSED OF AND INCLUDE ALL LANDS AND RESIDENTS WITHIN ITS
S. 1058 3
MEMBER MUNICIPALITIES, AND ANY OTHER MUNICIPALITY SUBSEQUENTLY ADMITTED
TO SUCH DISTRICT AS PROVIDED IN THIS ARTICLE, EXCEPT FOR ANY MUNICI-
PALITIES THAT WITHDRAW AS PROVIDED IN THIS ARTICLE. REGISTERED VOTERS
IN EACH MEMBER MUNICIPALITY SHALL BE ELIGIBLE TO VOTE IN ALL DISTRICT
MEETINGS, BUT ONLY DISTRICT MEMBER REPRESENTATIVES SHALL BE ELIGIBLE TO
VOTE IN MEETINGS OF THE DISTRICT'S GOVERNING BOARD.
§ 253. CREATION; DURATION; NONCONTESTABILITY. 1. FOLLOWING THE ORGAN-
IZATIONAL MEETING HELD PURSUANT TO SECTION TWO HUNDRED SIXTY OF THIS
ARTICLE, A DISTRICT'S GOVERNING BOARD SHALL CAUSE TO BE FILED WITH THE
STATE BOARD OF ELECTIONS A CERTIFICATE ATTESTING TO THE VOTE CONDUCTED
UNDER SUBDIVISION TWO OF SECTION TWO HUNDRED FIFTY-ONE OF THIS ARTICLE.
2. A DISTRICT FORMED UNDER THIS ARTICLE SHALL CONTINUE AS A BODY POLI-
TIC AND CORPORATE UNLESS AND UNTIL DISSOLVED ACCORDING TO THE PROCEDURES
SET FORTH IN THIS ARTICLE.
3. AN ACTION SHALL NOT BE BROUGHT DIRECTLY OR INDIRECTLY CHALLENGING,
QUESTIONING, OR IN ANY MANNER CONTESTING THE LEGALITY OF THE FORMATION,
OR THE EXISTENCE AS A BODY CORPORATE AND POLITIC OF ANY COMMUNICATIONS
UNION DISTRICT CREATED UNDER THIS ARTICLE AFTER SIX MONTHS FROM THE DATE
OF THE RECORDING IN THE STATE BOARD OF ELECTIONS OF THE CERTIFICATE
REQUIRED BY SUBDIVISION ONE OF THIS SECTION. AN ACTION SHALL NOT BE
BROUGHT DIRECTLY OR INDIRECTLY CHALLENGING, QUESTIONING, OR IN ANY
MANNER CONTESTING THE LEGALITY OR VALIDITY OF ANY BONDS ISSUED TO DEFRAY
COSTS OF COMMUNICATIONS PLANT IMPROVEMENTS APPROVED BY THE BOARD, AFTER
SIX MONTHS FROM THE DATE UPON WHICH THE BOARD VOTED AFFIRMATIVELY TO
ISSUE SUCH BONDS.
4. THIS SECTION SHALL BE LIBERALLY CONSTRUED TO SERVE THE LEGISLATIVE
PURPOSE TO VALIDATE AND MAKE CERTAIN THE LEGAL EXISTENCE OF ALL COMMUNI-
CATIONS UNION DISTRICTS IN THIS STATE AND THE VALIDITY OF BONDS ISSUED
OR AUTHORIZED FOR COMMUNICATIONS PLANT IMPROVEMENTS, AND TO BAR EVERY
REMEDY THEREFOR NOTWITHSTANDING ANY DEFECTS OR IRREGULARITIES, JURISDIC-
TIONAL OR OTHERWISE, AFTER EXPIRATION OF THE SIX-MONTH PERIOD. THE
PROVISIONS OF THIS SUBDIVISION AND SUBDIVISION THREE OF THIS SECTION
SHALL ALSO APPLY TO FINANCIAL CONTRACTS DIRECTLY RELATED TO THE
DISTRICT'S BONDING AUTHORITY.
5. TO THE EXTENT A DISTRICT CONSTRUCTS COMMUNICATIONS INFRASTRUCTURE
WITH THE INTENT OF PROVIDING COMMUNICATIONS SERVICES, SUCH DISTRICT
SHALL ENSURE THAT ANY AND ALL LOSSES FROM SUCH SERVICES, OR IN THE EVENT
SUCH SERVICES ARE ABANDONED OR CURTAILED, ANY AND ALL COSTS ASSOCIATED
WITH THE INVESTMENT IN COMMUNICATIONS INFRASTRUCTURE, SHALL BE NOT BORNE
BY THE TAXPAYERS OF DISTRICT MEMBERS.
§ 254. DISTRICT POWERS. SUBJECT TO THE LIMITATIONS AND RESTRICTIONS
SET FORTH IN SECTION TWO HUNDRED FIFTY-SIX OF THIS ARTICLE, A DISTRICT
CREATED UNDER THIS ARTICLE SHALL HAVE THE POWER TO:
1. OPERATE, CAUSE TO BE OPERATED, OR CONTRACT FOR THE CONSTRUCTION,
OWNERSHIP, MANAGEMENT, FINANCING, AND OPERATION OF A COMMUNICATIONS
PLANT FOR THE DELIVERY OF COMMUNICATIONS SERVICES;
2. PURCHASE, SELL, LEASE, OWN, ACQUIRE, CONVEY, MORTGAGE, IMPROVE, AND
USE REAL AND PERSONAL PROPERTY IN CONNECTION WITH ITS PURPOSE;
3. HIRE AND FIX THE COMPENSATION AND TERMS OF EMPLOYMENT OF EMPLOYEES;
4. SUE AND BE SUED;
5. ENTER INTO CONTRACTS FOR ANY TERM OR DURATION;
6. CONTRACT WITH ARCHITECTS, ENGINEERS, FINANCIAL AND LEGAL CONSULT-
ANTS, AND OTHERS FOR PROFESSIONAL SERVICES;
7. CONTRACT WITH INDIVIDUALS, CORPORATIONS, ASSOCIATIONS, AUTHORITIES,
AND AGENCIES FOR SERVICES AND PROPERTY, INCLUDING THE ASSUMPTION OF THE
LIABILITIES AND ASSETS THEREOF;
S. 1058 4
8. PROVIDE COMMUNICATIONS SERVICES FOR ITS DISTRICT MEMBERS, INCLUDING
THE RESIDENTIAL AND BUSINESS LOCATIONS LOCATED THEREIN; AND TO PROVIDE
COMMUNICATIONS SERVICES FOR SUCH OTHER RESIDENTIAL AND BUSINESS
LOCATIONS AS ITS FACILITIES AND OBLIGATIONS MAY ALLOW, PROVIDED SUCH
OTHER LOCATIONS SHALL BE IN A MUNICIPALITY THAT IS CONTIGUOUS WITH THE
MUNICIPAL LIMITS OF A DISTRICT MEMBER;
9. CONTRACT WITH THE STATE OF NEW YORK, THE UNITED STATES, OR ANY
SUBDIVISION OR AGENCY THEREOF FOR SERVICES, ASSISTANCE, OR JOINT
VENTURES;
10. CONTRACT WITH ANY MUNICIPALITY FOR THE SERVICES OF ANY OFFICERS OR
EMPLOYEES OF SUCH MUNICIPALITY;
11. PROMOTE COOPERATIVE ARRANGEMENTS AND COORDINATED ACTION AMONG ITS
MEMBERS AND OTHER PUBLIC AND PRIVATE ENTITIES;
12. MAKE RECOMMENDATIONS FOR REVIEW AND ACTION TO ITS MEMBERS AND
OTHER PUBLIC AGENCIES WHICH PERFORM FUNCTIONS WITHIN THE REGION IN WHICH
ITS MEMBERS ARE LOCATED;
13. EXERCISE ANY OTHER POWERS WHICH ARE NECESSARY OR DESIRABLE FOR
DEALING WITH COMMUNICATIONS MATTERS OF MUTUAL CONCERN AND THAT ARE EXER-
CISED OR ARE CAPABLE OF EXERCISE BY ANY OF ITS MEMBERS;
14. ENTER INTO FINANCING AGREEMENTS AUTHORIZED UNDER LAW, OR ALTERNA-
TIVE MEANS OF FINANCING CAPITAL IMPROVEMENTS AND OPERATIONS AUTHORIZED
UNDER LAW;
15. ESTABLISH A BUDGET TO PROVIDE FOR THE FUNDING THEREOF OUT OF
GENERAL REVENUE OF THE DISTRICT;
16. APPROPRIATE AND EXPEND MONIES;
17. ESTABLISH SINKING AND RESERVE FUNDS FOR RETIRING AND SECURING ITS
OBLIGATIONS;
18. ESTABLISH CAPITAL RESERVE FUNDS AND MAKE APPROPRIATIONS THERETO
FOR COMMUNICATIONS PLANT IMPROVEMENTS AND THE FINANCING THEREOF;
19. ENACT AND ENFORCE ANY AND ALL NECESSARY OR DESIRABLE BYLAWS FOR
THE ORDERLY CONDUCT OF ITS AFFAIRS FOR CARRYING OUT ITS COMMUNICATIONS
PURPOSE AND FOR PROTECTION OF ITS COMMUNICATIONS PROPERTY;
20. SOLICIT, ACCEPT, AND ADMINISTER GIFTS, GRANTS, AND BEQUESTS IN
TRUST OR OTHERWISE FOR ITS PURPOSE;
21. EXERCISE ALL POWERS INCIDENT TO A PUBLIC CORPORATION;
22. ADOPT A NAME UNDER WHICH IT SHALL BE KNOWN AND SHALL CONDUCT BUSI-
NESS; AND
23. ESTABLISH AN EFFECTIVE DATE OF ITS CREATION.
§ 255. COMMUNICATIONS PLANT; SITES. EACH MEMBER SHALL MAKE AVAILABLE
FOR LEASE TO THE DISTRICT ONE OR MORE SITES FOR A COMMUNICATIONS PLANT
OR COMPONENTS THEREOF WITHIN SUCH MEMBER MUNICIPALITY.
§ 256. LIMITATIONS; TAXES; INDEBTEDNESS. 1. NOTWITHSTANDING ANY GRANT
OF AUTHORITY IN THIS ARTICLE TO THE CONTRARY, A DISTRICT SHALL NOT
ACCEPT FUNDS GENERATED BY A MEMBER'S TAXING OR ASSESSMENT POWER.
2. NOTWITHSTANDING ANY GRANT OF AUTHORITY IN THIS ARTICLE TO THE
CONTRARY, A DISTRICT SHALL NOT HAVE THE POWER TO LEVY, ASSESS, APPOR-
TION, OR COLLECT ANY TAX UPON PROPERTY WITHIN SUCH DISTRICT, NOR UPON
ANY OF ITS MEMBERS, WITHOUT SPECIFIC AUTHORIZATION OF THE STATE LEGISLA-
TURE.
3. NOTWITHSTANDING ANY GRANT OF AUTHORITY IN THIS ARTICLE TO THE
CONTRARY, EVERY ISSUE OF A DISTRICT'S NOTES AND BONDS SHALL BE PAYABLE
ONLY OUT OF ANY REVENUES OR MONIES OF SUCH DISTRICT.
§ 257. BOARD AUTHORITY. THE LEGISLATIVE POWER AND AUTHORITY OF A
DISTRICT AND THE ADMINISTRATION AND THE GENERAL SUPERVISION OF ALL
FISCAL, PRUDENTIAL, AND GOVERNMENTAL AFFAIRS OF SUCH DISTRICT SHALL BE
S. 1058 5
VESTED IN A LEGISLATIVE BODY KNOWN AS THE GOVERNING BOARD, EXCEPT AS
SPECIFICALLY PROVIDED OTHERWISE IN THIS ARTICLE.
§ 258. BOARD COMPOSITION. A DISTRICT GOVERNING BOARD SHALL BE COMPOSED
OF ONE REPRESENTATIVE FROM EACH MEMBER AND ONE OR MORE ALTERNATES TO
SERVE IN THE ABSENCE OF SUCH DESIGNATED REPRESENTATIVE.
§ 259. APPOINTMENT. ANNUALLY ON OR BEFORE THE LAST MONDAY IN APRIL
COMMENCING IN THE YEAR FOLLOWING THE DATE OF A DISTRICT'S CREATION, THE
LEGISLATIVE BODY OF EACH MEMBER SHALL APPOINT A REPRESENTATIVE AND ONE
OR MORE ALTERNATES TO THE GOVERNING BOARD FOR ONE-YEAR TERMS. APPOINT-
MENTS OF REPRESENTATIVES AND ALTERNATES SHALL BE IN WRITING, SIGNED BY
THE CHAIR OF THE LEGISLATIVE BODY OF THE APPOINTING MEMBER, AND
PRESENTED TO THE CLERK OF THE DISTRICT. THE LEGISLATIVE BODY OF A
MEMBER, BY MAJORITY VOTE, MAY REPLACE ITS APPOINTED REPRESENTATIVE OR
ALTERNATE AT ANY TIME AND SHALL PROMPTLY NOTIFY THE DISTRICT CLERK OF
SUCH REPLACEMENT.
§ 260. ORGANIZATIONAL MEETING. ANNUALLY, ON THE SECOND TUESDAY IN MAY
FOLLOWING THE APPOINTMENTS CONTEMPLATED PURSUANT TO SECTION TWO HUNDRED
FIFTY-NINE OF THIS ARTICLE, THE BOARD SHALL HOLD ITS ORGANIZATIONAL
MEETING. AT SUCH MEETING, THE BOARD SHALL ELECT FROM AMONG ITS APPOINTED
REPRESENTATIVES A CHAIR AND A VICE CHAIR, EACH OF WHOM SHALL HOLD OFFICE
FOR ONE YEAR AND UNTIL HIS OR HER SUCCESSOR IS DULY ELECTED.
§ 261. QUORUM. FOR THE PURPOSE OF TRANSACTING BUSINESS, THE PRESENCE
OF DELEGATES OR ALTERNATES REPRESENTING MORE THAN FIFTY PERCENT OF
DISTRICT MEMBERS SHALL CONSTITUTE A QUORUM. NOTWITHSTANDING SUCH
REQUIREMENT, A SMALLER NUMBER MAY ADJOURN TO ANOTHER DATE. ANY ACTION
ADOPTED BY A MAJORITY OF THE VOTES CAST AT A MEETING OF THE BOARD AT
WHICH A QUORUM IS PRESENT SHALL BE THE ACTION OF THE BOARD, EXCEPT AS
OTHERWISE PROVIDED IN THIS ARTICLE.
§ 262. VOTING. EACH DISTRICT MEMBER'S DELEGATION SHALL BE ENTITLED TO
CAST ONE VOTE.
§ 263. TERM. UNLESS REPLACED IN THE MANNER PROVIDED IN SECTION TWO
HUNDRED FIFTY-NINE OF THIS ARTICLE, A REPRESENTATIVE ON A GOVERNING
BOARD SHALL HOLD OFFICE UNTIL HIS OR HER SUCCESSOR IS DULY APPOINTED.
ANY REPRESENTATIVE OR ALTERNATE MAY BE REAPPOINTED TO SUCCESSIVE TERMS
WITHOUT LIMIT.
§ 264. VACANCY. ANY VACANCY ON A BOARD SHALL BE FILLED WITHIN THIRTY
DAYS AFTER SUCH VACANCY OCCURS BY APPOINTMENT BY THE AUTHORITY WHICH
APPOINTED THE REPRESENTATIVE OR ALTERNATE WHOSE POSITION HAS BECOME
VACANT. AN APPOINTEE TO A VACANCY SHALL SERVE UNTIL THE EXPIRATION OF
THE TERM OF THE REPRESENTATIVE OR ALTERNATE TO WHOSE POSITION THE
APPOINTMENT WAS MADE AND MAY THEREAFTER BE REAPPOINTED.
§ 265. COMPENSATION OF REPRESENTATIVES. EACH DISTRICT MEMBER MAY REIM-
BURSE ITS REPRESENTATIVE TO THE GOVERNING BOARD FOR EXPENSES AS IT
DETERMINES REASONABLE, EXCEPT AS PROVIDED IN SECTION TWO HUNDRED SEVEN-
TY-ONE OF THIS ARTICLE WITH RESPECT TO DISTRICT OFFICERS.
§ 266. OFFICERS; BOND. 1. THE OFFICERS OF A DISTRICT SHALL BE COMPOSED
OF THE CHAIR AND THE VICE CHAIR OF THE BOARD, THE CLERK OF THE DISTRICT,
AND THE TREASURER OF THE DISTRICT. PRIOR TO ASSUMING THEIR OFFICES,
OFFICERS MAY BE REQUIRED TO POST BOND IN SUCH AMOUNTS AS SHALL BE DETER-
MINED BY RESOLUTION OF THE BOARD. THE COST OF SUCH BOND SHALL BE BORNE
BY THE DISTRICT.
2. THE CHAIR SHALL PRESIDE AT ALL MEETINGS OF THE BOARD AND SHALL MAKE
AND SIGN ALL CONTRACTS ON BEHALF OF THE DISTRICT UPON APPROVAL BY THE
BOARD. THE CHAIR SHALL PERFORM ALL DUTIES INCIDENT TO THE POSITION AND
OFFICE AS REQUIRED BY THE LAWS OF THE STATE.
S. 1058 6
3. DURING THE ABSENCE OF OR INABILITY OF THE CHAIR TO RENDER OR
PERFORM HIS OR HER DUTIES OR EXERCISE HIS OR HER POWERS, THE SAME SHALL
BE PERFORMED AND EXERCISED BY THE VICE CHAIR AND WHEN SO ACTING, THE
VICE CHAIR SHALL HAVE ALL THE POWERS AND BE SUBJECT TO ALL THE RESPONSI-
BILITIES HEREBY GIVEN TO OR IMPOSED UPON THE CHAIR.
4. DURING THE ABSENCE OR INABILITY OF THE VICE CHAIR TO RENDER OR
PERFORM HIS OR HER DUTIES OR EXERCISE HIS OR HER POWERS, THE BOARD SHALL
ELECT FROM AMONG ITS MEMBERSHIP AN ACTING VICE CHAIR WHO SHALL HAVE THE
POWERS AND BE SUBJECT TO ALL THE RESPONSIBILITIES GIVEN OR IMPOSED UPON
THE VICE CHAIR BY THIS ARTICLE.
5. UPON THE DEATH, DISABILITY, RESIGNATION, OR REMOVAL OF THE CHAIR OR
VICE CHAIR, THE BOARD SHALL ELECT A SUCCESSOR TO SUCH VACANT OFFICE
UNTIL THE NEXT ANNUAL MEETING.
§ 267. CLERK. THE CLERK OF A DISTRICT SHALL BE APPOINTED BY THE BOARD,
AND SHALL SERVE AT ITS PLEASURE. THE CLERK SHALL NOT BE REQUIRED TO BE A
MEMBER OF THE GOVERNING BOARD. THE CLERK SHALL HAVE THE EXCLUSIVE CHARGE
AND CUSTODY OF THE RECORDS OF THE DISTRICT AND THE SEAL OF THE DISTRICT.
THE CLERK SHALL RECORD ALL VOTES AND PROCEEDINGS OF THE DISTRICT,
INCLUDING DISTRICT AND BOARD MEETINGS, AND SHALL PREPARE AND CAUSE TO BE
POSTED AND PUBLISHED ALL WARNINGS OF MEETINGS OF SUCH MEETINGS. FOLLOW-
ING APPROVAL BY THE BOARD, THE CLERK SHALL CAUSE THE ANNUAL REPORT TO BE
DISTRIBUTED TO THE LEGISLATIVE BODIES OF THE DISTRICT MEMBERS. THE CLERK
SHALL PREPARE AND DISTRIBUTE ANY OTHER REPORTS REQUIRED BY STATE LAW AND
RESOLUTIONS OR REGULATIONS OF THE BOARD. THE CLERK SHALL PERFORM ALL
DUTIES AND FUNCTIONS INCIDENT TO THE OFFICE OF SECRETARY OR CLERK OF A
BODY CORPORATE.
§ 268. TREASURER. THE TREASURER OF A DISTRICT SHALL BE APPOINTED BY
THE BOARD, AND SHALL SERVE AT ITS PLEASURE. THE TREASURER SHALL NOT BE A
MEMBER OF THE GOVERNING BOARD. THE TREASURER SHALL HAVE THE EXCLUSIVE
CHARGE AND CUSTODY OF THE FUNDS OF THE DISTRICT AND SHALL BE THE
DISBURSING OFFICER OF THE DISTRICT. WHEN AUTHORIZED BY THE BOARD, THE
TREASURER MAY SIGN, MAKE, OR ENDORSE IN THE NAME OF THE DISTRICT ALL
CHECKS AND ORDERS FOR THE PAYMENT OF MONEY AND PAY OUT AND DISBURSE THE
SAME AND RECEIPT THEREFOR. THE TREASURER SHALL KEEP A RECORD OF EVERY
OBLIGATION ISSUED AND CONTRACT ENTERED INTO BY THE DISTRICT AND OF EVERY
PAYMENT THEREON. THE TREASURER SHALL KEEP CORRECT BOOKS OF ACCOUNT OF
ALL THE BUSINESS AND TRANSACTIONS OF THE DISTRICT AND SUCH OTHER BOOKS
AND ACCOUNTS AS THE BOARD MAY REQUIRE. THE TREASURER SHALL RENDER A
STATEMENT OF THE CONDITION OF THE FINANCES OF THE DISTRICT AT EACH REGU-
LAR MEETING OF THE BOARD AND AT SUCH OTHER TIMES AS SHALL BE REQUIRED OF
THE TREASURER. THE TREASURER SHALL PREPARE THE ANNUAL FINANCIAL STATE-
MENT AND THE BUDGET OF THE DISTRICT FOR DISTRIBUTION, UPON APPROVAL OF
THE BOARD, TO THE LEGISLATIVE BODIES OF DISTRICT MEMBERS. THE TREASURER
SHALL DO AND PERFORM ALL OF THE DUTIES REQUIRED FOR THE OFFICE OF TREAS-
URER OF A BODY POLITIC AND CORPORATE. UPON REMOVAL OR THE TREASURER'S
TERMINATION FROM OFFICE BY VIRTUE OF REMOVAL OR RESIGNATION, THE TREAS-
URER SHALL IMMEDIATELY PAY OVER TO HIS OR HER SUCCESSOR ALL OF THE FUNDS
BELONGING TO THE DISTRICT AND DELIVER TO SUCH SUCCESSOR ALL OFFICIAL
BOOKS AND PAPERS.
§ 269. AUDIT. ONCE A DISTRICT BECOMES OPERATIONAL, THE BOARD SHALL
CAUSE AN AUDIT OF THE FINANCIAL CONDITION OF THE DISTRICT TO BE
PERFORMED ANNUALLY BY AN INDEPENDENT PROFESSIONAL ACCOUNTING FIRM.
§ 270. COMMITTEES. THE BOARD SHALL HAVE AUTHORITY TO ESTABLISH ONE OR
MORE COMMITTEES AND GRANT AND DELEGATE TO SUCH COMMITTEES SUCH POWERS AS
IT DEEMS NECESSARY. MEMBERS OF AN EXECUTIVE COMMITTEE SHALL SERVE STAG-
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GERED TERMS AND SHALL BE BOARD MEMBERS. MEMBERSHIP ON OTHER COMMITTEES
ESTABLISHED BY THE BOARD SHALL NOT BE RESTRICTED TO BOARD MEMBERS.
§ 271. COMPENSATION OF OFFICERS. OFFICERS OF A DISTRICT SHALL BE PAID
FROM DISTRICT FUNDS SUCH COMPENSATION OR REIMBURSEMENT OF EXPENSES, OR
BOTH, AS DETERMINED BY THE BOARD.
§ 272. RECALL OF OFFICERS. AN OFFICER MAY BE REMOVED BY A TWO-THIRDS
VOTE OF THE BOARD WHENEVER, IN ITS JUDGMENT, THE BEST INTEREST OF THE
DISTRICT SHALL BE SERVED BY SUCH REMOVAL.
§ 273. FISCAL YEAR. THE FISCAL YEAR OF A DISTRICT SHALL COMMENCE ON
JANUARY FIRST AND END ON DECEMBER THIRTY-FIRST OF EACH YEAR.
§ 274. BUDGET. 1. ANNUALLY, ON OR BEFORE OCTOBER TWENTY-FIRST, A BOARD
SHALL APPROVE AND CAUSE TO BE DISTRIBUTED TO THE LEGISLATIVE BODY OF
EACH DISTRICT MEMBER FOR REVIEW AND COMMENT AN ANNUAL REPORT OF ITS
ACTIVITIES, TOGETHER WITH A FINANCIAL STATEMENT, A PROPOSED DISTRICT
BUDGET FOR THE FOLLOWING FISCAL YEAR, AND A FORECAST PRESENTING ANTIC-
IPATED YEAR-END RESULTS. SUCH PROPOSED BUDGET SHALL INCLUDE REASONABLY
DETAILED ESTIMATES OF:
(A) DEFICITS AND SURPLUSES FROM PRIOR FISCAL YEARS;
(B) ANTICIPATED EXPENDITURES FOR THE ADMINISTRATION OF THE DISTRICT;
(C) ANTICIPATED EXPENDITURES FOR THE OPERATION AND MAINTENANCE OF ANY
DISTRICT COMMUNICATIONS PLANT;
(D) PAYMENTS DUE ON OBLIGATIONS, LONG-TERM CONTRACTS, LEASES, AND
FINANCING AGREEMENTS;
(E) PAYMENTS DUE TO ANY SINKING FUNDS FOR THE RETIREMENT OF DISTRICT
OBLIGATIONS;
(F) PAYMENTS DUE TO ANY CAPITAL OR FINANCING RESERVE FUNDS;
(G) ANTICIPATED REVENUES FROM ALL SOURCES; AND
(H) SUCH OTHER ESTIMATES AS THE BOARD DEEMS NECESSARY TO ACCOMPLISH
ITS PURPOSE.
2. A BOARD SHALL HOLD A PUBLIC HEARING ON OR BEFORE NOVEMBER FIFTEENTH
OF EACH YEAR TO RECEIVE COMMENTS FROM THE LEGISLATIVE BODIES OF DISTRICT
MEMBERS AND HEAR ALL OTHER INTERESTED PERSONS REGARDING THE PROPOSED
BUDGET. NOTICE OF SUCH HEARING SHALL BE GIVEN TO THE LEGISLATIVE BODIES
OF DISTRICT MEMBERS AT LEAST FIFTEEN DAYS PRIOR TO SUCH HEARING. THE
BOARD SHALL GIVE CONSIDERATION TO ALL COMMENTS RECEIVED AND MAKE SUCH
CHANGES TO THE PROPOSED BUDGET AS IT DEEMS BENEFICIAL.
3. ANNUALLY, ON OR BEFORE DECEMBER FIFTEENTH, A BOARD SHALL ADOPT THE
BUDGET AND APPROPRIATE THE SUMS IT DEEMS NECESSARY TO MEET ITS OBLI-
GATIONS AND OPERATE AND CARRY OUT THE DISTRICT'S FUNCTIONS FOR THE
FOLLOWING FISCAL YEAR.
4. ACTIONS OR RESOLUTIONS OF A BOARD FOR THE ANNUAL APPROPRIATIONS OF
ANY YEAR SHALL NOT CEASE TO BE OPERATIVE AT THE END OF THE FISCAL YEAR
FOR WHICH THEY WERE ADOPTED. APPROPRIATIONS MADE BY THE BOARD FOR THE
VARIOUS ESTIMATES OF THE BUDGET SHALL BE EXPENDED ONLY FOR SUCH ESTI-
MATES, BUT BY MAJORITY VOTE OF THE BOARD THE BUDGET MAY BE AMENDED FROM
TIME TO TIME TO TRANSFER FUNDS BETWEEN OR AMONG SUCH ESTIMATES. ANY
BALANCE LEFT OR UNENCUMBERED IN ANY SUCH BUDGET ESTIMATE, OR THE AMOUNT
OF ANY DEFICIT AT THE END OF THE FISCAL YEAR, SHALL BE INCLUDED IN AND
PAID OUT OF THE OPERATING BUDGET AND APPROPRIATIONS IN THE FOLLOWING
FISCAL YEAR. ALL SUCH BUDGET AMENDMENTS SHALL BE REPORTED BY THE
DISTRICT TREASURER TO THE LEGISLATIVE BODIES OF EACH DISTRICT MEMBER
WITHIN FOURTEEN DAYS OF THE END OF THE FISCAL YEAR.
5. FINANCIAL STATEMENTS AND AUDIT RESULTS SHALL BE DELIVERED TO THE
LEGISLATIVE BODIES OF EACH DISTRICT MEMBER WITHIN TEN DAYS OF DELIVERY
TO THE BOARD.
S. 1058 8
§ 275. INDEBTEDNESS. A BOARD MAY BORROW MONEY THROUGH THE ISSUANCE OF
NOTES OF ITS DISTRICT FOR THE PURPOSE OF PAYING CURRENT EXPENSES OF SUCH
DISTRICT. SUCH NOTES SHALL MATURE WITHIN ONE YEAR, AND MAY BE REFUNDED
IN THE MANNER PROVIDED BY LAW, AND SHALL BE PAYABLE SOLELY FROM THE
DISTRICT'S OPERATING REVENUES. THE GOVERNING BOARD MAY BORROW MONEY IN
ANTICIPATION OF THE RECEIPT OF GRANTS-IN-AID FROM ANY SOURCE AND ANY
REVENUES. SUCH NOTES SHALL MATURE WITHIN ONE YEAR, BUT MAY BE RENEWED
AS OTHERWISE PROVIDED BY LAW.
§ 276. PLEDGE OF REVENUES. 1. WHEN A BOARD, AT A REGULAR OR SPECIAL
MEETING CALLED FOR SUCH PURPOSE, DETERMINES BY RESOLUTION PASSED BY A
VOTE OF A MAJORITY OF MEMBERS PRESENT AND VOTING THAT THE PUBLIC INTER-
EST OR NECESSITY DEMANDS COMMUNICATIONS PLANT IMPROVEMENTS, OR A LONG-
TERM CONTRACT, AND THAT THE COST OF SUCH IMPROVEMENTS OR LONG-TERM
CONTRACT WILL BE TOO GREAT TO BE PAID OUT OF THE ORDINARY ANNUAL INCOME
AND REVENUE OF THE DISTRICT, THE BOARD MAY PLEDGE COMMUNICATIONS PLANT
NET REVENUES AND ENTER INTO LONG-TERM CONTRACTS TO PROVIDE FOR SUCH
IMPROVEMENTS.
2. THE PLEDGE OF COMMUNICATIONS PLANT NET REVENUES, AND OTHER OBLI-
GATIONS ALLOWED BY LAW, MAY BE AUTHORIZED FOR ANY PURPOSE PERMITTED BY
THIS ARTICLE, OR ANY OTHER APPLICABLE LAW.
§ 277. SINKING AND RESERVE FUNDS. 1. A BOARD MAY ESTABLISH AND PROVIDE
FOR SINKING AND RESERVE FUNDS, HOWEVER DENOMINATED, FOR THE RETIREMENT
AND SECURITY OF PLEDGES OF COMMUNICATIONS PLANT NET REVENUE, OR FOR
LONG-TERM CONTRACTS. WHEN ESTABLISHED, SUCH FUNDS SHALL BE KEPT INTACT
AND SEPARATE FROM OTHER MONIES AT THE DISPOSAL OF THE DISTRICT, AND
SHALL BE ACCOUNTED FOR AS A PLEDGED ASSET FOR THE PURPOSE OF RETIRING OR
SECURING SUCH OBLIGATIONS OR CONTRACTS. THE COST OF PAYMENTS TO ANY
SINKING OR RESERVE FUND SHALL BE INCLUDED IN THE ANNUAL BUDGET OF THE
DISTRICT.
2. A BOARD SHALL ESTABLISH AND PROVIDE FOR A CAPITAL RESERVE FUND TO
PAY FOR COMMUNICATIONS PLANT IMPROVEMENTS, REPLACEMENT OF WORN OUT
BUILDINGS AND EQUIPMENT, AND PLANNED AND UNPLANNED MAJOR REPAIRS IN
FURTHERANCE OF THE PURPOSE FOR WHICH THE DISTRICT WAS CREATED. ANY SUCH
CAPITAL RESERVE FUND SHALL BE KEPT IN A SEPARATE ACCOUNT AND INVESTED AS
ARE OTHER PUBLIC FUNDS AND SHALL BE EXPENDED FOR SUCH PURPOSES FOR WHICH
ESTABLISHED. THE COST OF PAYMENTS TO ANY CAPITAL RESERVE FUND SHALL BE
INCLUDED IN THE ANNUAL BUDGET OF THE DISTRICT.
§ 278. SERVICE FEES. A BOARD MAY FROM TIME TO TIME ESTABLISH AND
ADJUST SERVICE, SUBSCRIPTION, ACCESS, AND UTILITY FEES FOR THE PURPOSE
OF GENERATING REVENUES FROM THE OPERATION OF ITS COMMUNICATIONS PLANT.
§ 279. SPECIAL MEETINGS. 1. A BOARD MAY CALL A SPECIAL MEETING OF THE
DISTRICT WHEN IT DEEMS IT NECESSARY OR PRUDENT TO DO SO AND SHALL CALL A
SPECIAL MEETING OF THE DISTRICT WHEN ACTION BY THE VOTERS IS NECESSARY
UNDER THIS ARTICLE. THE BOARD SHALL CALL A SPECIAL MEETING UPON RECEIPT
OF A PETITION SIGNED BY AT LEAST FIVE PERCENT OF THE REGISTERED VOTERS
WITHIN ITS DISTRICT, OR UPON REQUEST OF AT LEAST TWENTY-FIVE PERCENT OF
DISTRICT MEMBERS EVIDENCED BY FORMAL RESOLUTIONS OF THE LEGISLATIVE
BODIES OF SUCH MEMBERS OR BY PETITIONS SIGNED BY AT LEAST FIVE PERCENT
OF THE MEMBER'S REGISTERED VOTERS. THE BOARD MAY RESCIND THE CALL OF A
SPECIAL MEETING CALLED BY IT BUT NOT A SPECIAL MEETING CALLED AS
PROVIDED IN THIS SUBDIVISION. THE BOARD MAY SCHEDULE THE DATE OF SUCH
SPECIAL MEETINGS TO COINCIDE WITH THE DATE OF ANNUAL MUNICIPAL MEETINGS,
PRIMARY ELECTIONS, GENERAL ELECTIONS, OR SIMILAR MEETINGS WHEN THE ELEC-
TORATE WITHIN THE DISTRICT MEMBERS WILL BE VOTING ON OTHER MATTERS.
2. AT ANY SPECIAL MEETING OF A DISTRICT, VOTERS OF EACH DISTRICT
MEMBER SHALL CAST THEIR BALLOTS AT SUCH POLLING PLACES WITHIN THE MUNI-
S. 1058 9
CIPALITY OF THEIR RESIDENCE AS SHALL BE DETERMINED BY THE BOARD OF THE
DISTRICT IN COOPERATION WITH THE BOARD OF ELECTIONS OF EACH DISTRICT
MEMBER.
3. NOT LESS THAN THREE NOR MORE THAN FOURTEEN DAYS PRIOR TO ANY
SPECIAL MEETING, AT LEAST ONE PUBLIC HEARING SHALL BE HELD BY THE BOARD
AT WHICH TIME THE ISSUES UNDER CONSIDERATION SHALL BE PRESENTED AND
COMMENTS RECEIVED. NOTICE OF SUCH PUBLIC HEARING SHALL INCLUDE THE
PUBLICATION OF A WARNING IN A NEWSPAPER OF GENERAL CIRCULATION IN THE
DISTRICT AT LEAST ONCE A WEEK, ON THE SAME DAY OF THE WEEK, FOR THREE
CONSECUTIVE WEEKS, THE LAST SUCH PUBLICATION NOT LESS THAN FIVE NOR MORE
THAN TEN DAYS BEFORE THE PUBLIC HEARING. SUCH NOTICE MAY BE INCLUDED IN
THE WARNING CALLED FOR IN SUBDIVISION FOUR OF THIS SECTION.
4. THE BOARD SHALL PROVIDE NOTICE OF A SPECIAL MEETING BY FILING A
NOTICE WITH THE CLERK OF EACH DISTRICT MEMBER AND BY POSTING A NOTICE IN
AT LEAST FIVE PUBLIC PLACES IN EACH MUNICIPALITY IN THE DISTRICT NOT
LESS THAN THIRTY NOR MORE THAN FORTY DAYS BEFORE SUCH MEETING. IN ADDI-
TION, SUCH NOTICE SHALL BE PUBLISHED IN A NEWSPAPER OF GENERAL CIRCU-
LATION IN THE DISTRICT ONCE A WEEK ON THE SAME DAY OF THE WEEK FOR THREE
CONSECUTIVE WEEKS BEFORE SUCH MEETING, THE LAST SUCH PUBLICATION TO BE
NOT LESS THAN FIVE NOR MORE THAN TEN DAYS BEFORE SUCH MEETING.
5. THE ORIGINAL NOTICE OF ANY SPECIAL MEETING OF THE DISTRICT SHALL BE
SIGNED BY A MAJORITY OF THE BOARD AND SHALL BE FILED WITH THE CLERK
BEFORE BEING POSTED.
6. THE POSTED AND PUBLISHED NOTICES FOR SPECIAL MEETINGS UNDER THIS
SECTION SHALL INCLUDE THE DATE, TIME, PLACE, AND NATURE OF THE MEETING.
SUCH NOTICES SHALL, BY SEPARATE ARTICLES, SPECIFICALLY INDICATE THE
BUSINESS TO BE TRANSACTED AND THE QUESTIONS TO BE VOTED UPON AT SUCH
MEETING.
7. ALL LEGAL VOTERS OF A DISTRICT'S MEMBERS SHALL BE LEGAL VOTERS OF
SUCH DISTRICT. THE DISTRICT MEMBERS SHALL POST AND REVISE CHECKLISTS IN
THE SAME MANNER AS FOR MUNICIPAL MEETINGS PRIOR TO ANY DISTRICT MEETING
AT WHICH THERE WILL BE VOTING.
§ 280. WITHDRAWAL OF A MEMBER MUNICIPALITY. A DISTRICT MEMBER MAY
WITHDRAW FROM ITS DISTRICT UPON THE FOLLOWING TERMS AND CONDITIONS:
1. PRIOR TO SUCH DISTRICT PLEDGING COMMUNICATIONS PLANT NET REVENUES,
OR ENTERING INTO A LONG-TERM CONTRACT, OR CONTRACT SUBJECT TO ANNUAL
APPROPRIATION, A DISTRICT MEMBER MAY VOTE TO WITHDRAW IN THE SAME MANNER
AS THE VOTE FOR ADMISSION TO THE DISTRICT. IF A MAJORITY OF THE VOTERS
OF A DISTRICT MEMBER PRESENT AND VOTING AT A MEETING FOR SUCH PURPOSE
VOTES TO WITHDRAW FROM THE DISTRICT, THE VOTE SHALL BE CERTIFIED BY THE
CLERK OF SUCH MUNICIPALITY AND PRESENTED TO THE BOARD. FOLLOWING THE
PRESENTATION OF SUCH VOTE TO THE BOARD, THE BOARD SHALL GIVE NOTICE TO
THE REMAINING DISTRICT MEMBERS OF SUCH VOTE TO WITHDRAW AND SHALL HOLD A
MEETING TO DETERMINE IF IT IS IN THE BEST INTEREST OF SUCH DISTRICT TO
CONTINUE TO EXIST. REPRESENTATIVES OF THE DISTRICT MEMBERS SHALL BE
GIVEN AN OPPORTUNITY TO BE HEARD AT SUCH MEETING TOGETHER WITH ANY OTHER
INTERESTED PERSONS. AFTER SUCH A MEETING, THE BOARD MAY DECLARE THE
DISTRICT DISSOLVED OR IT MAY DECLARE THAT THE DISTRICT SHALL CONTINUE TO
EXIST DESPITE THE WITHDRAWAL OF SUCH MEMBER. THE MEMBERSHIP OF THE WITH-
DRAWING MUNICIPALITY SHALL TERMINATE AFTER THE VOTE TO WITHDRAW.
2. AFTER SUCH DISTRICT HAS PLEDGED COMMUNICATIONS PLANT NET REVENUES,
OR ENTERED INTO A LONG-TERM CONTRACT OR CONTRACT SUBJECT TO ANNUAL
APPROPRIATIONS, A DISTRICT MEMBER MAY VOTE TO WITHDRAW IN THE SAME
MANNER AS THE VOTE FOR ADMISSION TO SUCH DISTRICT.
§ 281. ADMISSION OF DISTRICT MEMBERS. A BOARD MAY AUTHORIZE THE INCLU-
SION OF ADDITIONAL DISTRICT MEMBERS IN THE COMMUNICATIONS UNION DISTRICT
S. 1058 10
UPON SUCH TERMS AND CONDITIONS AS IT IN ITS SOLE DISCRETION SHALL DEEM
TO BE FAIR, REASONABLE, AND IN THE BEST INTEREST OF SUCH DISTRICT. THE
LEGISLATIVE BODY OF ANY NONMEMBER MUNICIPALITY WHICH DESIRES TO BE
ADMITTED TO SUCH DISTRICT SHALL MAKE APPLICATION FOR ADMISSION TO THE
BOARD. THE BOARD SHALL DETERMINE THE FINANCIAL, ECONOMIC, GOVERNANCE,
AND OPERATIONAL EFFECTS THAT ARE LIKELY TO OCCUR IF SUCH MUNICIPALITY IS
ADMITTED AND THEREAFTER EITHER GRANT OR DENY AUTHORITY FOR ADMISSION OF
SUCH PETITIONING MUNICIPALITY. IF THE BOARD GRANTS SUCH AUTHORITY, IT
SHALL ALSO SPECIFY ANY TERMS AND CONDITIONS, INCLUDING FINANCIAL OBLI-
GATIONS, UPON WHICH SUCH ADMISSION IS PREDICATED. UPON RESOLUTION OF THE
BOARD, SUCH APPLICANT MUNICIPALITY SHALL BECOME A DISTRICT MEMBER.
§ 282. DISSOLUTION. 1. IF A BOARD BY RESOLUTION APPROVED BY TWO-THIRDS
OF ALL THE VOTES ENTITLED TO BE CAST DETERMINES THAT IT IS IN THE BEST
INTERESTS OF THE PUBLIC, THE DISTRICT MEMBERS, AND THE DISTRICT THAT
SUCH DISTRICT BE DISSOLVED, AND IF SUCH DISTRICT THEN HAS NO OUTSTANDING
OBLIGATIONS UNDER PLEDGES OF COMMUNICATIONS PLANT NET REVENUE, LONG-TERM
CONTRACTS, OR CONTRACTS SUBJECT TO ANNUAL APPROPRIATION, OR WILL HAVE NO
SUCH DEBT OR OBLIGATION UPON COMPLETION OF THE PLAN OF DISSOLUTION, IT
SHALL PREPARE A PLAN OF DISSOLUTION AND ADOPT A RESOLUTION DIRECTING
THAT THE QUESTION OF SUCH DISSOLUTION AND THE PLAN OF DISSOLUTION BE
SUBMITTED TO THE VOTERS OF SUCH DISTRICT AT A SPECIAL MEETING, FOR WHICH
NOTICE SHALL BE DULY PROVIDED FOR SUCH PURPOSE. IF A MAJORITY OF THE
VOTERS OF SUCH DISTRICT PRESENT AND VOTING AT SUCH SPECIAL MEETING SHALL
VOTE TO DISSOLVE SUCH DISTRICT AND APPROVE THE PLAN OF DISSOLUTION, SUCH
DISTRICT SHALL CEASE TO CONDUCT ITS AFFAIRS EXCEPT INSOFAR AS MAY BE
NECESSARY FOR THE WINDING UP THEREOF. THE BOARD SHALL IMMEDIATELY CAUSE
A NOTICE OF THE PROPOSED DISSOLUTION TO BE MAILED TO EACH KNOWN CREDITOR
OF SUCH DISTRICT AND SHALL PROCEED TO COLLECT THE ASSETS OF SUCH
DISTRICT AND APPLY AND DISTRIBUTE THEM IN ACCORDANCE WITH THE PLAN OF
DISSOLUTION.
2. THE PLAN OF DISSOLUTION SHALL:
(A) IDENTIFY AND VALUE ALL UNENCUMBERED ASSETS;
(B) IDENTIFY AND VALUE ALL ENCUMBERED ASSETS;
(C) IDENTIFY ALL CREDITORS AND THE NATURE OR AMOUNT OF ALL LIABILITIES
AND OBLIGATIONS;
(D) IDENTIFY ALL OBLIGATIONS UNDER LONG-TERM CONTRACTS AND CONTRACTS
SUBJECT TO ANNUAL APPROPRIATION;
(E) SPECIFY THE MEANS BY WHICH ASSETS OF SUCH DISTRICT SHALL BE LIQUI-
DATED AND ALL LIABILITIES AND OBLIGATIONS PAID AND DISCHARGED, OR
ADEQUATE PROVISION MADE FOR THE SATISFACTION THEREOF;
(F) SPECIFY THE MEANS BY WHICH ANY ASSETS REMAINING AFTER DISCHARGE OF
ALL LIABILITIES SHALL BE LIQUIDATED IF NECESSARY; AND
(G) SPECIFY THAT ANY ASSETS REMAINING AFTER PAYMENT OF ALL LIABILITIES
SHALL BE APPORTIONED AND DISTRIBUTED AMONG THE DISTRICT MEMBERS ACCORD-
ING TO A FORMULA BASED UPON POPULATION.
3. WHEN THE PLAN OF DISSOLUTION HAS BEEN IMPLEMENTED, THE BOARD SHALL
ADOPT A RESOLUTION CERTIFYING SUCH IMPLEMENTATION TO THE DISTRICT
MEMBERS, WHEREUPON SUCH DISTRICT SHALL BE TERMINATED, AND NOTICE THEREOF
SHALL BE DELIVERED TO THE TEMPORARY PRESIDENT OF THE SENATE AND THE
SPEAKER OF THE ASSEMBLY IN ANTICIPATION OF CONFIRMATION OF DISSOLUTION
BY THE STATE LEGISLATURE.
§ 2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.
