1. The state soil and water districts commission upon receiving at any time a petition for the disestablishment of any soil and water district, said petition being signed by not less than twenty-five land representatives in each township within the area covered by the petition, shall presently call for and conduct within that district a referendum upon the disestablishment of that district; and if a majority of the land representatives voting in this referendum do vote in favor of the disestablishment, the soil and water commission shall declare that district to be disestablished, and the soil and water supervisors of that district may not thereafter enter into any contracts or agreements on behalf of that district.

2. The state soil and water districts commission upon declaring the disestablishment of any soil and water district shall take charge of all property belonging to such soil and water district, and, if practicable, may complete any contract or agreement entered into but left unfinished by the soil and water supervisors of that district. The property shall be sold or transferred to other soil and water districts, by the soil and water commission, and the proceeds from such sale shall be expended by the soil and water commission; provided, however, that such expenditure shall promote soil and water conservation in a soil and water district or in soil and water districts; and provided further, that any property purchased with county funds for the use of a soil and water district shall, upon the disestablishment of that district, be returned to the county commission of that district. The soil and water commission shall also take charge of any unspent funds contributed from private sources to the soil and water district before the disestablishment of such district, and shall either return such funds to the donor or expend such funds in the promotion of soil and water conservation according to the terms of the donation. Subsequent to the disestablishment of a soil and water district the area once comprising this district shall not be eligible to reestablishment as a soil and water district for a period of two years, but at the end of that period it may be reestablished by the same procedure, section 278.100, employed for its first establishment.