A. After the new county or counties are organized a special district governed by a distribution board is established consisting of the territory of the formerly existing affected county or counties. The function of the distribution board is to determine and accomplish the division, transfer and distribution of and payment for the property, assets, liabilities and records of the affected county or counties. The distribution board consists of two members elected at large from each new county plus the chairman of the county formation commission who shall act ex officio as the chairman of the board with the power to vote. The elective members shall be elected by nonpartisan ballot at the general election for the election of county officers pursuant to section 11-140. The names of candidates shall be placed on the general election ballot by petition pursuant to section 16-341 as it applies to county officers. The two candidates receiving the most votes in each new county are elected. If for any reason two members are not elected from a new county, the board of supervisors of the new county shall appoint a member or members as necessary so that the new county has two representatives on the distribution board. Elective members of the distribution board are entitled to compensation for their services determined pursuant to section 38-611. The chairman of the distribution board is entitled to compensation for services determined pursuant to section 11-136, subsection A. The distribution board is established and exists for two years beginning January 1 following the election of county officers pursuant to section 11-140 and terminating for all purposes from and after December 31 of the second calendar year following that election. The term of office for elective members and the chairman is for the duration of the distribution board’s existence. A vacancy on the distribution board shall be filled by appointment by the respective county board of supervisors or by the governor in the case of the chairman. Elective county officers of the new counties shall provide the distribution board with necessary information and assistance to enable the distribution board to carry out its responsibilities under this section.

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B. In the final annual budget of the affected county adopted pursuant to Title 42, Chapter 17, Article 3, the board of supervisors shall include an amount for the operation of the distribution board during its first year of operation including legal, appraisal, survey and other costs. When collected, that amount shall be segregated and paid to the distribution board on the date of its organization. Taxes and federal, state and all other monies payable to the affected county after its termination and monies in the affected county’s treasury shall be paid to the distribution board which shall account for the monies received according to their source. The distribution board shall pay all monies collected to the respective new county from or on behalf of which the monies were collected.

C. The distribution board shall annually estimate an amount to be levied as a tax on all the taxable property in the district to pay the distribution board’s costs of administration and operation and to compensate any new county for property and other assets to which it is entitled under the terms of the transfer, division and apportionment of property as prescribed by the commission but which cannot be physically conveyed to the new county. On or before June 30 each year the distribution board shall certify to the board of supervisors of each new county the amount of taxes necessary to be levied for these purposes, and the board of supervisors shall levy and cause that amount to be collected as secondary taxes at the same time and in the same manner as levying and collecting general county taxes. The money so collected shall be paid to the distribution board which shall account for and expend the monies according to the purposes prescribed by this section. Any amounts remaining in the operating account of the distribution board on the date of its termination shall be paid to the new counties in proportion to their respective assessed valuation. Any amounts collectible by the distribution board on the date of its termination shall be collected by the respective new county in which they were assessed and paid to the state treasurer. The state treasurer shall hold these monies in trust for and pay them monthly to the respective new county on behalf of which they were collected according to the records of the distribution board.

D. The distribution board shall:

1. Establish a method to divide, apportion and assign to the respective new counties the liability for payment of any amounts which come due on account of:

(a) Bonds or other indebtedness of the affected county or counties which are outstanding or authorized when the affected county or counties are terminated.

(b) Other contracts and obligations, including employee compensation, of the affected county or counties.

(c) Indebtedness, contracts and other obligations of the distribution board.

2. Transfer, divide and apportion between the new counties all real and personal property and cash accounts of the affected county or counties as prescribed by the commission, compensating any new county for property which cannot be physically conveyed.

E. All records of an affected county shall, on its termination, be immediately transferred to the possession and custody of the distribution board. As soon as practicable the distribution board shall divide and transfer these records to the respective new county as appropriate. The records which would or should have been made in a new county, if it had been organized at the time of making the records, shall be transferred to that new county. The distribution board shall allow access to and inspection and transcription of county records by any person otherwise authorized by law to inspect or transcribe the particular records. If a transcript is made and properly verified and deposited, it has the same validity and effect as the original.

F. Before the distribution board is terminated the auditor general shall audit all of the distribution board’s records and transmit the results of the audit to the board of supervisors of each new county and to the legislature. The costs of this audit shall be included in the distribution board’s final budget and paid from the final tax levy for the distribution board.