§ 35-70-118 — Dissolution - procedure - conservation fund

(1) No proceeding
for the dissolution of a conservation district shall be initiated within five years after
the date of the organization of the district. Anytime after the expiration of such
five-year period, proceedings to determine whether or not a conservation district
shall be dissolved may be instituted by a petition addressed to the state board,
which shall be signed by not less than twenty-five percent of the owners of land
within the district and approved by a majority of the supervisors of such district.
Such petition shall state the reasons for the dissolution and the proposed
disposition of all contracts, assets, and liabilities held or owed by the district and
shall request that the state board proceed to hold a hearing and call an election to
determine whether or not such district shall be dissolved.

(2) Within sixty days after receipt of such petition, the state board shall give
notice by publication, as specified in section 35-70-105 (6), of the filing of such
petition; of the date (not less than twenty days after the date of such notice), time,
and place when a hearing shall be had to determine the sufficiency of the petition
and the advisability of dissolving the district; that all complaints and objections that
may be made in writing concerning the sufficiency of the petition and the
advisability of the dissolution of the district by the owners of any land within such
district will be heard and determined before final action thereon; and that all
owners of land within the district shall have the right to attend such hearing and be
heard.

(3) (a) On hearing, if, in the opinion of the state board, the petition is
insufficient or proper arrangements have not been made for the disposition of the
contracts, assets, and liabilities of the district, the papers shall be returned to the
petitioners for amendment. If, in the opinion of the state board, the dissolution of
the district is not advisable, it shall so inform the petitioners, and the district shall
not be dissolved; but subsequent petitions may be filed after six months have
expired after the date of denial of such petition and new hearings and
determinations made thereon.

(b) If, following the hearing, it is the opinion of the state board that the
petition is sufficient and that the dissolution is advisable, the state board shall call
an election in the manner provided for in section 35-70-105 (5) and (7), but the only
question to be determined at such election shall be whether or not the district shall
be dissolved.

(4) (a) If a majority of the votes cast are against dissolution of the district,
the district shall continue to exist as though no petition had been filed and no
election held. Thereafter, no petitions for dissolution shall be considered by the
state board at intervals of less than three years.

(b) If a majority of the votes cast are for dissolution of the district, the state
board shall, within sixty days after such election, certify to the division of local
government in the department of local affairs a statement of such election and the
result thereof. The director of said division thereupon shall execute and issue to the
state board a certificate of dissolution, and thereafter the existence of the district
shall cease. The state board shall forthwith cause the certificate of dissolution to
be recorded in the books of the county clerk and recorder of the county in which
such district was located in whole or in part.

(5) (a) Within thirty days after the division of local government has issued a
certificate of dissolution, the supervisors shall proceed, as trustees, to sell the
assets of the district at public or private sale, whichever may be approved by the
state board. After paying any outstanding accounts of the district and the cost of
such dissolution and sale, the remainder of the proceeds shall be paid over to the
state board and shall be deposited with the state treasurer to the credit of such
board in a fund to be known as the conservation fund. Such fund shall be expended
by the state board as needed by the organizations of conservation districts and for
carrying out the purposes of this article and not otherwise. If at any time after such
fund is established there are no conservation districts in existence in the state, the
state board shall so notify the controller, and any balance remaining in such fund
shall be transferred to the general fund of the state.

(b) All contracts entered into by the district prior to dissolution shall remain
in full force and effect until terminated by the terms thereof or by mutual
agreement, but, in all such contracts, upon dissolution of such districts, the state
board shall be substituted for the supervisors as the district's party to such
contracts. The state board has the same right as the supervisors would have had to
perform and require performance of such contract, sue and be sued thereon, and
modify or terminate such contracts by mutual agreement or as provided in such
contracts, but no member of the state board shall be subject to any personal
liability therefor.

(c) Such dissolution shall not affect any lien or right of action theretofore
held by the district, and the state board shall succeed to all the rights and
obligations of the supervisors in such respect. Any funds coming into the hands of
each county treasurer in payment of taxes or assessments levied against the lands
within the district after dissolution of the district or remaining in such treasurer's
hands at the time of such dissolution shall be treated as are other assets of the
districts, as provided in this section.

Legislative History

Source: L. 37: p. 1190, � 18. CSA: C. 149A, � 18. L. 41: p. 706, � 1. L. 49: p. 675, � 8. CRS 53: � 128-1-18. L. 59: p. 713, � 1. C.R.S. 1963: � 128-1-18. L. 76: (4)(b) and (5)(a) amended, p. 605, � 27, effective July 1. L. 82: (1), (2), (3)(b), and (4) amended, p. 534, � 12, effective January 1, 1983. L. 2002: (1) and (5)(a) amended, p. 523, � 25, effective July 1.