(a) Any district created hereunder may be abolished in the manner provided for in this section; provided, however, that no district shall be abolished when it has any indebtedness.

(1) Upon the petition for abolition of a district, conforming to the requirements set forth below, being filed with the judge of probate, he or she shall order an election on abolition of the district to be held in the district with the time provided for by Section 45-37-140.04 unless the petition is submitted less than one year before the next scheduled primary, primary runoff, or a general election in which case the election shall be held at the next scheduled primary, primary runoff, or a general election, at which qualified electors residing within the district shall be entitled to vote. The number of qualified electors residing in the district signing the petition shall not be less than the smaller of these two numbers: 500, or a number equal to 10 percent of the qualified electors residing within the district. The petition shall contain a recital that the district is not indebted; and the petition shall request the judge of probate to order an election on whether the district shall be abolished. Upon the officers canvassing the returns of the election certifying that abolition of the district was approved by a majority of the votes cast at the election, the district shall be abolished.

(2) No election to abolish a district shall be held at any time within two years following the date of the election creating the district; and not more than one election on the abolition of a district shall be held within a period of two years.

(3) When a district is abolished, either pursuant to Section 45-37-140.13, or under this section, a committee, herein called the committee, appointed in the manner hereinafter stated shall determine what disposition shall be made of the properties and assets of the district, in accordance with this section. The committee shall consist of three members, each of whom shall be a qualified elector of the district. As used herein, the term Presiding Judge, Birmingham Division, means the Presiding Judge of the Circuit Court of the Tenth Judicial Circuit of Alabama, Birmingham Division. The term Presiding Judge, Bessemer Division, means the Presiding Judge of the Circuit Court of the Tenth Judicial Circuit of Alabama, Bessemer Division. The term board of trustees as used in this section means the board of trustees of the district as comprised at the time of its dissolution. When no part of a district is situated in the Bessemer Cutoff, the committee shall consist of three members, one of whom shall be appointed by the Presiding Judge, Birmingham Division, one of whom shall be appointed by the board of trustees, and one of whom shall be appointed by the United States District Judge for the Southern Division of the Northern District of Alabama having the longest tenure of service on that court. When the district is located entirely within the Bessemer Cutoff, the committee shall consist of three members, one of whom shall be appointed by the Presiding Judge, Bessemer Division, one of whom shall be appointed by the board of trustees, and one of whom shall be appointed by the United States District Judge for the Southern Division of the Northern District of Alabama having the longest tenure of service on that court. When a district lies partly, but not entirely, within the Bessemer Cutoff, the committee shall consist of four members, one of whom shall be appointed by the Presiding Judge, Birmingham Division, one of whom shall be appointed by the Presiding Judge, Bessemer Division, one of whom shall be appointed by the board trustees, and one of whom shall be appointed by the United States District Judge for the Southern Division of the Northern District of Alabama having the longest tenure of service on that court.

(4) Subject to this section, the committee shall determine what disposition shall be made of all of the proceeds and assets of the district. The committee shall use such properties and assets of the district, or the proceeds from the sale thereof, for the acquisition, construction, or establishment of some permanent improvement designed to benefit the community comprising the district at the time of its dissolution.

(5) For the accomplishment of this purpose those who were officers of the district at the time of its dissolution shall be authorized to execute any necessary conveyance, contract, or other instrument which may be necessary.

(b) As used in this section, the term new district, means a district which has been, or shall be, created under this article, and which when created contains at least 90 percent of the territory which comprised a previous district which was abolished under this section.

(1) When a district has heretofore been, or shall hereafter be, abolished, as provided for in this section, and a new district has heretofore been, or shall hereafter be, created, and the creation of the new district was, or shall be, accomplished before the committee disposes of the funds, property, and assets of the abolished district, as provided for in this section, the new district shall be entitled to receive, and shall own, all funds, property, and assets of the abolished district. Those holding any such funds, property, or assets shall deliver the same to the new district, and the new district shall hold and use such funds, property, and assets for its benefit and operation, in accordance with this article.

(2) This subsection shall apply to any district heretofore or hereafter abolished, if the committee has not disposed of the funds, property, and assets of the abolished district prior to September 1, 1999.

(c) No cost shall be charged to the district for the creation or abolition of a fire district when the election is held at a regularly scheduled primary, primary runoff, or a general election.