(1) Upon the adoption of the resolution by the fiscal court of the county in which the district is to function, and, where necessary pursuant to KRS 77.015, the passage of the ordinance by the legislative body of the largest city within such county, the district shall immediately begin to function.
(2) After the adoption of the resolution of the fiscal court of the county in which the district is to function, and the passage of the ordinance by the legislative body of the largest city within such county, the regular activation and organization of the district shall be finally and conclusively established against all persons except the Commonwealth of Kentucky upon suit commenced by the Attorney General. The activation and organization of said district shall not be directly or collaterally questioned in any suit, action or proceeding instituted by any other person.