Transfer of obligations of nonprofit rural water supplier or wastewater system operator to water user district, sanitary district, or municipality--Majority vote of district

Any nonprofit corporation, cooperative, or association engaged in the treatment, distribution, or sale of water or the collection, treatment, or disposal of wastewater to a rural area may, by majority vote of the membership voting in an election on the question, transfer all of its assets, liabilities, contracts, and other obligations to a water user district as defined in § 46A-9-2 , sanitary district authorized to operate a water system under § 34A-5-41 , or a municipality. No such action may be taken unless approved by majority vote of the water user district or sanitary district membership voting in an election on the action. Source: SL 1974, ch 285 ; SL 1977, ch 368 ; SL 1982, ch 312 , § 2; SDCL Supp, § 46-16-40.1; SL 2006, ch 226 , § 5.