Section 12. Discontinuance of districts

(1) The county board of any county
  or the city council of the city of New York which,  by  resolution,  has
  declared  the  county  or  the  city  of New York to be a soil and water
  conservation district, may at any time after five years from the passage
  of said resolution, and after determining that a substantial  proportion
  of  the  rural  land  occupiers  of  the district so desire, repeal said
  resolution at a regular or special meeting of  said  board  or  council,
  providing written notice of intended action on such resolution, together
  with  the  basis  for  action,  is  provided by the county board or city
  council to the state soil and  water  conservation  committee  at  least
  thirty   days   before   action   is  taken  on  such  resolution.  This
  determination may be made through hearings, petitions or referenda.
    (2) Upon the repeal of the resolution which declared the county or the
  city of New York to be a  soil  and  water  conservation  district,  the
  directors  may not enter into any more contracts or agreements on behalf
  of the district, and all rules and regulations theretofore  adopted  and
  in  force  within such district shall be of no further force and effect.
  Such district, however, shall continue for the purpose of fulfilling its
  contracts,  discharging  any  existing   obligations,   collecting   and
  distributing  its assets and doing all other acts required to adjust and
  wind up its affairs.
    (3) Upon the repeal by the county board or the  city  council  of  the
  resolution declaring the county or the city of New York to be a soil and
  water  conservation  district,  the  directors  shall  at public auction
  dispose of all property belonging  to  the  district  as  soon  as  said
  property  is  no  longer  needed by the district to fulfill any existing
  contracts, and shall forthwith pay over the proceeds of such sale, after
  paying the necessary costs of the sale, into the county or the  city  of
  New  York  treasury. The directors shall, at least ten days prior to the
  holding of such public  auction,  notify  the  state  committee  of  the
  property  proposed  to be sold thereat, and after such sale shall render
  to the county board or the city council and to  the  state  committee  a
  report  of  such sale, specifying the property sold, the amount received
  therefore, and the disposition of the proceeds.  Such report of the sale
  shall also be accompanied by a list of the  remaining  property  of  the
  district still undisposed of.