Sec. 1. Deorganization of Town of Madrid. The Town of Madrid in Franklin County is deorganized, except that the corporate existence, powers, duties and liabilities of the town survive for the purposes of prosecuting and defending all pending suits to which the town is, or may be, a party and all needful process arising out of any suits, including provisions for the payment of all or any judgments or debts that may be rendered against the town or exist in favor of any creditor.

Sec. 2. Unexpended school funds. The treasurer of the town or any other person who has custody of the funds of the town shall pay to the Treasurer of State all unexpended school funds that, together with the credits due the town for school purposes, are to be used by the State Tax Assessor to settle any school obligations contracted by the town before deorganization. Any unexpended school funds remaining with the Treasurer of State after all the obligations have been met must be added to the Unorganized Territory Education and Services Fund, as established in the Maine Revised Statutes, Title 36, chapter 115.

Sec. 3. Provision of education services. Notwithstanding any other law, this section entitles all kindergarten to Grade 8 pupils in Madrid to attend school in the Town of Phillips and all secondary school pupils to attend school within School Administrative District No. 58, upon deorganization. Pupils must be provided transportation at state expense to those schools.

Sec. 4. Assessment of taxes. The State Tax Assessor shall assess the real and personal property taxes in the Town of Madrid as of April 1, 2000 as provided in Title 36, chapter 115.

Sec. 5. Referendum; certificate to Secretary of State. Notwithstanding Title 30-A, section 7209, the municipal officers of the town shall submit this Act to the legal voters of the Town of Madrid by ballot at the next general election to be held in November. This election must be called, advertised and conducted according to the Maine Revised Statutes, Title 30-A, sections 2528 and 2532. The town clerk shall prepare the required ballots on which the clerk shall reduce the subject matter of this Act to the following question:

"Do you favor the deorganization of the Town of Madrid?"

The voters shall indicate their opinion on this question by a cross or check mark placed against the word "Yes" or "No." Before becoming effective, this Act must be approved by at least

2/3 of the legal voters voting at the general election, and the