(a) The governing bodies of any special district and any city or county that have reached an agreement that the city or county shall assume all powers, responsibilities and duties of the special district shall pass a joint resolution stating their intent to bring about such dissolution and setting the time and place for a joint public hearing on this issue. The joint resolution shall be published once each week for two consecutive weeks in a newspaper of general circulation in the county or counties where the city or county and special district are located. Once the governing bodies have passed the joint resolution stating their intent to bring about the dissolution, the special district shall not issue new debt without first notifying the governing body of the city or county and having the new debt approved by the city or county governing body by resolution.

(b) Following the public hearing, the governing bodies of the special district and the city or county shall decide to proceed with or abandon the proposed dissolution. If both governing bodies agree to proceed with the dissolution and assumption of the powers and responsibilities of the special district by the city or county, as evidenced by formal action of each body, the city or county shall adopt an ordinance or county resolution dissolving the special district and assuming all powers, responsibilities and duties of the special district. The special district shall be deemed dissolved on the effective date of the ordinance or county resolution. A copy of the ordinance or county resolution shall be provided to the county clerk.