A. Prior to the organization of a district, the corporation shall have prepared a proposal in written form. The proposal shall include but not be limited to:

1. the reasons for organizing and constituting a district;

2. the advantages and disadvantages which would accrue from implementation of the proposal;

3. a brief and concise description of the territory to be embraced within the proposed district;

4. a statement that the territory described in paragraph 3 of this subsection does not include any territory that is presently within the boundaries of any other district or public water supply system;

5. a statement that the proposed district is embracing only those lands within the proposed boundaries described in paragraph 3 of this subsection which can reasonably and economically be served in the foreseeable future;

6. a statement that the organization of a district shall result in a voluntary dissolution of the corporation and upon passage of the proposal shall constitute the consent of the board of directors and the membership of the corporation to dissolve the corporation;

7. a statement that upon the affirmative order of the board of county commissioners to organize the district, the current board of directors and officers for the corporation shall serve as the board of directors and officers of the district until the next designated meeting of the district; and

8. a statement that upon the affirmative order of the board of county commissioners to organize the district, the bylaws of the corporation shall, as appropriate, constitute the bylaws of the district.

B. The written proposal shall be considered and acted upon by the board of directors of such corporation at a duly called meeting. If the board of directors approves the proposal by resolution by a majority vote, the proposal shall then be submitted to a vote of the membership of the corporation at a regular or special membership meeting. A member of the corporation may cast his vote inperson or by proxy. Prior to the meeting a copy of the approved resolution and a stamped return envelope shall be mailed to the membership of the corporation. The appointment of a proxy shall be in writing filed with the secretary of the corporation at or before the meeting. In all other matters the appointment and authority of a proxy shall be governed by the provisions of Section 1057 of Title 18 of the Oklahoma Statutes.

If the proposal is not approved by a majority vote of the membership of the corporation, the proposal shall not be implemented.

C. Upon approval of the proposal by the membership of the corporation and by all secured creditors, the board of directors shall file a petition, addressed to the board of county commissioners having jurisdiction as provided by subsection D of this section, for the establishment of the district. The proposal as approved by the membership and the board of directors and a list of the names and addresses of each of the secured creditors of the corporation shall be attached to the petition as exhibits.

D. 1. If the corporation is situated in one county, the petition shall be filed with the county clerk of said county, and the board of county commissioners of said county shall have jurisdiction to hear and determine the petition.

2. If the corporation is situated in more than one (1) county, the petition shall be filed with the county clerk of the county in which the greatest membership of the corporation is located and the board of county commissioners of such county shall have jurisdiction to hear and determine the petition.

E. Upon receipt of said petition, the county clerk shall thereupon give notice to the board of county commissioners of the filing and pendency of said petition, whereupon the county commissioners of the county wherein the petition is filed shall enter its order setting hearing and giving notice of the hearing, ten (10) days prior to the hearing. The board of county commissioners shall cause notice of such hearing to be published for at least one (1) day in a newspaper of general circulation published in the county or counties embraced within the proposed district. In addition to the notice as prescribed by this subsection, the county clerk shall at least ten (10) days before the date fixed for said hearing give or send by certified mail, return receipt requested, notice thereof to:

1. each secured creditor of the corporation, addressed to the secured creditor's last-known address as specified by the exhibit attached to the petition;

2. any other rural water district and other public water supplier in the county or counties in which the corporation has membership or serves; and

3. any city or municipality adjacent or contiguous to the proposed territory of the proposed district.

F. After the hearing, if the board finds that the averments of the petition are true and that the corporation should be organized and constitute a district pursuant to the Rural Water, Sewer, Gas and Solid Waste Management Districts Act, the board shall enter its order directing the organization of such district and shall declare the land described in the petition or any part thereof to be incorporated as a district under the name of "Rural Water and/or Sewer and/or Gas and/or Solid Waste Management District No. ____, _____ County, Oklahoma" (inserting number in order of incorporation and name of county). Thereupon the district shall be a legally constituted district pursuant to the Rural Water, Sewer, Gas and Solid Waste Management Districts Act. The board of county commissioners shall enter upon its records full minutes of such hearing, together with its order creating the rural district under the corporate name specified by this subsection.

Added by Laws 1989, c. 103, § 3, emerg. eff. April 25, 1989. Renumbered from Title 18, § 863.3 by Laws 1989, c. 369, § 153, operative July 1, 1989.