The rights referred to in section 43-1829[, Idaho Code,] may be disposed of by the board of directors by pro rata allotment to the lands in the district, or by sale for use within or outside of the district: provided, however, that the price at which such water or water rights are sold shall not exceed the actual cost at which the same was acquired by the vendor district together with interest, at not to exceed seven per cent (7%) per annum, on such cost for the period of time between district’s investment in such water or water rights and the date of sale: and, provided further, that the qualified electors of the district who are residents of the district and holders of title or evidence of title to land in the district shall first authorize the disposal thereof at an election called for that purpose which may be held on the date of the annual election of directors, or on such other date as shall be determined by the board of directors.
Notice of such election must be given by posting a notice in three (3) public places in each election precinct in said district, at least four (4) weeks before the date of said election, and the publication thereof for the same length of time in some newspaper published in the district, and in case no paper is published in the district, then in a paper published in each of the counties in which the district or any part thereof is located. Such notice must specify the time for holding said election and the manner in which it is proposed to dispose of the rights. Said election must be held and the results thereof determined and declared in all respects as nearly as practicable in conformity with chapter 4 of this title, governing bond elections: provided, that no informality in conducting such election shall invalidate the same, if the election shall have been otherwise correctly conducted. At such election the ballot shall contain the words: "Disposal of Rights–Yes"; "Disposal of Rights–No," or other words equivalent thereto. If a majority of the votes cast are "Disposal of Rights–Yes," the board of directors shall dispose of said rights according to the proposal submitted. If more than a majority of the votes cast are "Disposal of Rights–No," the result shall be so declared and entered of record.