(2) Subsection (1) of this section applies:
(a) If the entire area of a special district is incorporated in or annexed to a district; and
(b) If the district has the authority to provide the same service as the special district. [1965 c.475 §3; 1969 c.646 §14; 1973 c.785 §27; 1989 c.374 §8]