(Conditionally Rpld.)

1. A. The auditor general shall conduct a performance audit as defined in section 41-1278 of the district and its operations, which shall be completed not more than three hundred months after the date of the initial issuance of bonds authorized by section 48-6272. The audit shall be submitted to the board of directors of the district and to the joint legislative audit committee or its successor. The auditor general shall provide copies of the audit to the secretary of state and the executive director of the Arizona legislative council.

2. B. At the direction of the board of directors but not later than sixty months after the date the performance audit is delivered to the joint legislative audit committee pursuant to subsection A of this section:

   1. 1. The board of directors shall wind up the affairs of the district.
   2. 2. The board of directors shall sell all district property and other assets to the highest and best bidders at public auction. The proceeds of the auction shall be used to retire all outstanding district obligations and any remaining proceeds shall be transferred to the state treasurer for credit to the state general fund.
   3. 3. The district is dissolved. On dissolution of the district, the board shall notify the executive director of the Arizona legislative council of the date of dissolution.