Section § 26240

Explanation

This law says that a commission can decide to hold an election on whether to dissolve a district. If they decide to do this, they must organize the election in the same way as other district elections. For the district to be dissolved, two-thirds of the voters in the district must vote in favor of it.

Whenever it shall deem it advisable, the commission shall, by resolution, order that an election be held in the district upon the question of dissolution of the district. The election shall be called and conducted in the same manner as other elections of the district, and if two-thirds of the electors of the district vote in favor of dissolution, the district shall be dissolved.

Section § 26241

Explanation

When a district is dissolved, any property it owned in areas outside of city limits becomes the county's property. If the property is located inside a city, it becomes the city's property.

Upon dissolution, any property in unincorporated territory which may have been acquired by the district shall vest in the county, and any property within the boundaries of an incorporated city shall vest in the city.

Section § 26242

Explanation

This law says that if a district is dissolved while it still has unpaid bonds, the district will no longer operate except to collect taxes to pay off those bonds. The county's board of supervisors takes over as the district's commission to manage the debt repayment until everything is paid off, including interest. They are responsible for collecting taxes and any other necessary actions to clear the district's debts.

If at the time of the election to dissolve the district there is outstanding any bonded indebtedness of the district, the vote to dissolve shall dissolve the district for all purposes except the levy and collection of taxes for the payment of that outstanding indebtedness.
From the time of dissolution until the bonded indebtedness together with the interest thereon is fully paid, the board of supervisors of the county shall constitute ex officio the boulevard commission of the district, and shall levy such taxes and perform such other acts as may be necessary to raise money for the payment of the outstanding indebtedness of the district.