A referendum among the state’s producers shall be conducted by the director in any of the following cases:

1. (a) Whenever the director, on his own motion or at the request of the council, determines that it is no longer in the best interest of the state to continue the existence of the council and the programs established and maintained pursuant to this chapter.

2. (b) Upon the receipt by the director of a petition for such a referendum signed by 3,000 of the state’s producers that signed the petition not more than six months prior to its presentation to the director.

   In either such event, the director shall thereupon prepare and mail to each producer as shown in the records of the department, a ballot form and self-addressed envelope.