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Home > Statutes > Usa Oregon
USA Statutes : oregon
Title : TITLE 19 MISCELLANEOUS MATTERS RELATED TO GOVERNMENT AND PUBLIC AFFAIRS
Chapter : Chapter 198 Special Districts Generally
As used in this chapter,
except as otherwise specifically provided, "district" means any one of
the following:

(1) A people's utility district organized under ORS chapter 261.

(2) A domestic water supply district organized under ORS chapter
264.

(3) A cemetery maintenance district organized under ORS chapter 265.

(4) A park and recreation district organized under ORS chapter 266.

(5) A mass transit district organized under ORS 267.010 to 267.390.

(6) A metropolitan service district organized under ORS chapter 268.

(7) A special road district organized under ORS 371.305 to 371.360.

(8) A road assessment district organized under ORS 371.405 to
371.535.

(9) A highway lighting district organized under ORS chapter 372.

(10) A health district organized under ORS 440.305 to 440.410.

(11) A sanitary district organized under ORS 450.005 to 450.245.

(12) A sanitary authority, water authority or joint water and
sanitary authority organized under ORS 450.600 to 450.989.

(13) A vector control district organized under ORS 452.020 to
452.170.

(14) A rural fire protection district organized under ORS chapter
478.

(15) An irrigation district organized under ORS chapter 545.

(16) A drainage district organized under ORS chapter 547.

(17) A water improvement district organized under ORS chapter 552.

(18) A water control district organized under ORS chapter 553.

(19) A weather modification district organized under ORS 558.200 to
558.440.

(20) A port organized under ORS 777.005 to 777.725 and 777.915 to
777.953.

(21) A geothermal heating district organized under ORS chapter 523.

(22) A transportation district organized under ORS 267.510 to
267.650.

(23) A library district organized under ORS 357.216 to 357.286.

(24) A 9-1-1 communications district organized under ORS 401.818 to
401.857. [1971 c.23 §2; 1975 c.782 §48; 1977 c.756 §1; 1981 c.226 §18;
1987 c.671 §10; 1987 c.863 §10; 1989 c.793 §19; 1993 c.577 §15] A district,
by an ordinance or resolution that takes effect at least one year prior
to the date of the regular district election, may provide that any
individual who is an employee of the district is not eligible to serve as
a member of the governing board of the district by which the individual
is employed. [1999 c.336 §2]

     

As used in ORS 198.190,
unless the context requires otherwise, "district" has the meaning given
that term by ORS 198.010 (2) to (5) and (7) to (23). In addition,
"district" means any one of the following:

(1) A county service district organized under ORS chapter 451.

(2) A diking district organized under ORS chapter 551.

(3) A corporation for irrigation, drainage, water supply or flood
control organized under ORS chapter 554.

(4) A soil and water conservation district organized under ORS
568.210 to 568.808 and 568.900 to 568.933.

(5) The Port of Portland created by ORS 778.010. [1971 c.403 §1;
1975 c.782 §48a; 1977 c.756 §2; 1981 c.226 §19; 1983 c.740 §53] A
member of the governing body of a district may receive an amount not to
exceed $50 for each day or portion thereof as compensation for services
performed as a member of the governing body. Such compensation shall not
be deemed lucrative. The governing body may provide for reimbursement of
a member for actual and reasonable traveling and other expenses
necessarily incurred by a member in performing official duties. [1971
c.403 §2; 1983 c.327 §2; 1983 c.740 §53a; 1989 c.517 §1; 1995 c.79 §74]

     



(1) A corporation for irrigation, drainage, water supply or flood
control organized under ORS chapter 554.

(2) A soil and water conservation district organized under ORS
568.210 to 568.808 and 568.900 to 568.933.

(3) A weed control district organized under ORS 570.505 to 570.575.

(4) A port district organized under ORS chapter 778. [1969 c.345
§1; 1971 c.23 §4; 1983 c.327 §3]The governing body of a district shall require bond or an
irrevocable letter of credit of any member of the governing body or any
officer or employee of the district who is charged with possession and
control of district funds and properties. The letter of credit shall be
issued by an insured institution, as defined in ORS 706.008. The amount
of the bond or letter of credit shall be fixed by the governing body of
the district. The premium for the bond or the fee for the letter of
credit shall be paid from district funds. [1969 c.345 §2; 1991 c.331 §45;
1997 c.631 §425]

     

"district"
means a soil and water conservation district organized under ORS 568.210
to 568.808 and 568.900 to 568.933. [1969 c.669 §1; 1971 c.23 §5; 1983
c.740 §54] (1)
Except as otherwise provided by law, a vacancy in an elected office in
the membership of the governing body of a district shall be filled by
appointment by a majority of the remaining members of the governing body.
If a majority of the membership of the governing body is vacant or if a
majority cannot agree, the vacancies shall be filled promptly by the
county court of the county in which the administrative office of the
district is located.

(2) This subsection applies to districts defined in ORS 255.012
which have a regular district election on a date specified in ORS
255.335. The period of service of a person appointed under subsection (1)
of this section shall expire June 30 next following the next regular
district election at which a successor is elected. The successor shall be
elected to serve the remainder, if any, of the term for which the
appointment was made. If the term for which the appointment was made
expires June 30 after the election of the successor, the successor shall
be elected to a full term. In either case the successor shall take office
July 1 next following the election.

(3) This subsection applies to districts not included in subsection
(2) of this section. The period of service of a person appointed under
subsection (1) of this section shall expire on the day before the first
Monday in January of the year next following the election at which a
successor is elected. The successor shall be elected to serve the
remainder, if any, of the term for which the appointment was made. If the
term for which the appointment was made expires on the day before the
first Monday in January after the election of a successor, the successor
shall be elected to a full term. In either case, the successor shall take
office on the first Monday in January of the year next following the
election. [1969 c.669 §2; 1981 c.173 §1; 1983 c.350 §2]DISSOLUTION OF INACTIVE DISTRICTS As used in ORS
198.335 to 198.365, unless the context requires otherwise:

(1) "County board" means the board of county commissioners or the
county court.

(2) "Special district":

(a) Has the meaning given the term "district" in ORS 198.010; and

(b) Also means:

(A) A diking district organized under ORS chapter 551.

(B) A corporation for irrigation, drainage, water supply or flood
control organized under ORS chapter 554.

(C) A soil and water conservation district organized under ORS
568.210 to 568.808 and 568.900 to 568.933.

(D) A weed control district organized under ORS 570.505 to 570.575.

(E) A port district organized under ORS chapter 778. [1971 c.267
§5; 2005 c.22 §148] (1) A special
district shall designate a registered office and a registered agent. The
registered agent shall be an agent of the district upon whom any process,
notice or demand required or permitted by law to be served upon the
district may be served. A registered agent shall be an individual
resident of this state whose address is identical with the registered
office of the district. The registered office may be, but need not be,
the same as the place of business of the special district.

(2) The district may change its registered office or change its
registered agent, or both, upon filing in the office of the Secretary of
State and county clerk of each county in which located a statement
setting forth:

(a) The name of the district.

(b) If the address of its registered office is changed, the address
to which the registered office is to be changed.

(c) If its registered agent is changed, the name of its successor
registered agent.

(d) That the address of its registered office and the address of
the business office of its registered agent, as changed, will be
identical.

(e) That such change was authorized by resolution duly adopted by
the district board.

(3) The statement shall be subscribed and sworn to by the
secretary, financial officer or chairperson of the district board. [1971
c.267 §7] (1) If a special
district for three consecutive years fails to file a report as required
by ORS 294.555 or 297.405 to 297.555 the Secretary of State or the
Department of Revenue, as the case may be, shall notify the county board
of the county where the district, or the greater portion of the assessed
valuation of taxable property in the district, is located.

(2) Within 30 days after receiving the notice provided by
subsection (1) of this section, the county board shall initiate
proceedings to dissolve the special district as provided by ORS 198.345
to 198.365.

(3) The county board may appoint three individuals, residents of
the district, to assist in locating the assets, debts and records of the
district. [1971 c.267 §§8,9; 1977 c.774 §14; 1979 c.286 §1] Within 60 days after receiving the
notice provided by ORS 198.345 (1), the county board shall prepare a
financial statement for the district and file it with the clerk. The
financial statement shall include:

(1) The date of formation of the district.

(2) The date of the last election of officers, if any, and the
names of the persons last serving as members of the governing board.

(3) The amount of each outstanding bond, coupon and other
indebtedness of the district, with a general description of the
indebtedness and the name of the holder and owner of each, if known.

(4) A description of each parcel of real property and interest in
real property owned by the district and, if the property was acquired for
delinquent taxes or assessments, the amount of the taxes and assessments
on each parcel of property.

(5) Uncollected charges, taxes and assessments levied by the
district and the amount upon each lot or tract of land.

(6) A description of all personal property and of all other assets
of the district.

(7) The estimated cost of dissolution. [1971 c.267 §10] (1) Upon the filing of the
financial statement, the county board of a county not within the
jurisdiction of a local government boundary commission shall enter an
order calling a hearing on the question of dissolving the district. The
hearing shall be called not less than 21 nor more than 30 days after the
filing of the statement.

(2) Notice of the hearing shall be given by publication once each
week for not less than three weeks in a newspaper of general circulation
within the district. The notice shall state the time and place of the
hearing and that all interested persons may appear and be heard. The
notice shall also state that all persons having claims against the
district shall present them at the time of the hearing.

(3) In a county within the jurisdiction of a local government
boundary commission, the county board, within 10 days after the filing of
the financial statement, shall file with the boundary commission a
resolution requesting dissolution of the district. In a county within the
jurisdiction of a boundary commission, subsections (1) and (2) of this
section and ORS 198.360 do not apply, and the final order adopted by the
commission shall terminate the proceeding for all purposes except those
mentioned in ORS 198.365. [1971 c.267 §11; 1983 c.336 §19](1) After the hearing, if the county board finds
that the district is in fact operating as an active district, or that
there is need for the district, the board shall continue the hearing
until the reports required under ORS 294.555 and 297.405 to 297.555 are
properly filed. When the county board finds that the reports have been
filed, it may:

(a) Enter an order terminating all further proceedings under ORS
198.345 to 198.365; or

(b) If the functions of the district could be performed by a county
service district, it may continue the hearing and initiate proceedings to
incorporate or annex the area within the district in a county service
district organized under ORS 451.410 to 451.610.

(2) If the county board proceeds as provided by subsection (1)(b)
of this section and the district is terminated as provided by ORS
451.577, the county board shall thereafter enter an order terminating all
further proceedings under ORS 198.345 to 198.365. [1971 c.267 §12; 1977
c.774 §15; 1979 c.286 §2](1) If the county board finds that the district is not active and that
there is no need for the district, the board shall thereupon constitute a
board of trustees for the purpose of paying the debts and disposing of
the property of the district.

(2) Any surplus funds and assets remaining to the credit of the
district, after payment of the debts of the district, shall be credited
to the county general fund available for general purposes. If the
district was located in more than one county, the surplus shall be
apportioned and turned over to each county in which the district was
located. The funds and assets shall be apportioned according to the
proportion in each county of the assessed valuation of taxable property
in the district.

(3) If the assets of the district are insufficient to pay the debts
of the district, the county board acting as a levying board for the
district shall levy taxes, within the limits of the authority of the
district, for the liquidation of the debts. If the only debt of the
district is the cost of the proceedings conducted under ORS 198.345 to
198.365, the county shall pay the cost of the proceedings.

(4) When the proceedings are completed, the county board shall
deliver the books and records of the district to the county clerk. [1971
c.267 §13]RECALL As used in ORS
198.425 and 198.430, unless the context requires otherwise, "district
officer" means a member of the governing body of a district who serves as
such by virtue of election to such position. [1969 c.325 §1; 1971 c.23
§6; 1981 c.173 §2; 1983 c.83 §4]

     

ORS 249.865 to
249.877 apply to the recall of a district officer of a district defined
in ORS 255.012. [1981 c.173 §5](1) A petition for recall of a district officer
of a district other than a district defined in ORS 255.012 shall be filed
with the officer with whom a petition for nomination to such office
should be filed. Except as provided in this subsection, if there is no
such officer or if the officer is the district officer against whom the
petition is being filed, the petition shall be filed with the county
clerk of the county in which the administrative office of the district is
located. In the case of an irrigation district organized under ORS
chapter 545, if there is no such officer or if the officer is the
district officer against whom the petition is being filed, the petition
shall be filed with the board of directors of the irrigation district.

(2) The petition shall be signed by a number of persons who are
qualified to vote in the district, that is equal to but not less than the
lesser of:

(a) Fifteen percent of the persons who are qualified to vote in the
district, or subdivision of the district from which the district officer
was elected; or

(b) Fifteen percent of the total votes cast in the electoral
district for all candidates for Governor at the most recent election at
which a candidate for Governor was elected to a full term.

(3) The person circulating the signature sheet shall certify on
each sheet that every person who signed the sheet did so in the presence
of the person circulating the sheet and that the person circulating the
sheet believes that each signer stated the correct residence address of
the signer and is a person qualified to vote in the district.

(4) In those districts where a person qualified to vote must be an
elector, the petition, before filing, shall be submitted to the county
clerk who shall compare the signatures of the persons signing the
petition with the signatures of electors on the register of electors and,
on the face of each signature sheet, shall make a certificate of the
number of signatures the county clerk believes to be genuine. In other
districts, the officer who receives the petition for filing, before
filing the petition, shall verify the signatures and make a certificate
of the number of signatures the officer believes to be genuine.

(5) The district shall pay the expense of verifying the signatures
and of calling and conducting the election. The election shall be
conducted in the district, or in the subdivision of the district from
which the district officer was elected, in accordance with the law
governing election of district officers.

(6) A person who is qualified to vote in a district under this
section is a person who is qualified, under the law applicable to the
district, to vote in an election at which members of the governing body
of the district are elected.

(7) A recall petition is void unless the petition is filed not
later than the 100th day after the date of the first signature on the
petition. Not later than the 90th day after the date of the first
signature, the petition shall be submitted for signature verification to
the county clerk or other officer described in subsection (4) of this
section who shall make the certificate of the number of genuine
signatures not later than the 10th day after the date of submission. The
petition must contain only original signatures. A recall petition shall
not be accepted for signature verification if the petition contains less
than 100 percent of the required number of signatures. A recall petition
shall not be accepted for filing until 100 percent of the required number
of signatures have been verified. [1969 c.325 §3; 1981 c.173 §3; 1983
c.83 §5; 1987 c.707 §2; 1999 c.144 §1; 1999 c.318 §20; 2003 c.94 §2] (1) A
district officer against whom a recall petition has been filed may submit
to the officer with whom the recall petition is filed, in not more than
200 words, a statement of justification of the district officer's course
in office. The statement must be filed not later than the fifth day after
the recall petition is filed.

(2) The county clerk shall have the statement printed on the
official and sample ballots for the recall election. [1983 c.514 §1a]ORDINANCES AND REGULATIONS As used in ORS
198.510 to 198.600, unless the context requires otherwise:

(1) "County" means the county in which the district, or the greater
portion of the assessed value of the district, is located.

(2) "County board" means the board of county commissioners or the
county court of the county.

(3) "County clerk" means the county clerk of the county.

(4) "District board" means the governing body of a district and the
term includes a county board that is in the governing body of a district.

(5) "Presiding officer" means the chairperson, president or other
person performing the office of presiding officer of the district board.

(6) "Principal Act" means the law, other than ORS 198.510 to
198.600, applicable to a district. [1971 c.268 §2] As used in
ORS 198.510 to 198.600, unless the context requires otherwise, district
has the meaning given that term by ORS 198.010 (2), (4), (5), (6), (11),
(12), (14), (17), (19) and (20) to (23). In addition, "district" means
any one of the following:

(1) A county service district organized under ORS chapter 451.

(2) The Port of Portland established by ORS 778.010. [1971 c.268
§1; 1975 c.782 §48b; 1977 c.756 §3; 1981 c.226 §20]When a district board is authorized by the principal Act of
a district to enact, amend or repeal regulations, it shall do so in
accordance with ORS 198.510 to 198.600. In all counties which do not
provide by ordinance or charter for the manner of enacting, amending or
repealing ordinances and regulations, this section applies when a county
board pursuant to statute is acting as the governing body of a district.
[1971 c.268 §3]
(1) Except in an emergency, an ordinance adopting, amending or repealing
a regulation shall not be considered or voted upon by a district board
unless the ordinance is included in the published agenda of the meeting.
The agenda of a meeting shall state the time, date and place of the
meeting, give a brief description of the ordinances to be considered at
the meeting and state that copies of the ordinances are available at the
office of the district board.

(2) The presiding officer shall cause the agenda to be published
not more than 10 days nor less than four days before the meeting, in one
or more newspapers of general circulation within the district or, if
there is no such newspaper, in a newspaper of general circulation in each
county in which the district is located. The presiding officer may also
cause the agenda:

(a) To be posted in three public places within the district at
least 10 days before the meeting; or

(b) To be published by radio and television stations broadcasting
in the district as provided by ORS 193.310 and 193.320. [1971 c.268 §4]
(1) Except as provided by subsection (3) of this section, before an
ordinance is adopted it shall be read during regular meetings of the
district board on two different days at least six days apart. The reading
of an ordinance shall be full and distinct unless at the meeting:

(a) A copy of the ordinance is available for each person who
desires a copy; and

(b) The board directs that the reading be by title only.

(2) Except as provided by subsection (3) of this section, the
affirmative vote of a majority of the members of the district board is
required to adopt an ordinance.

(3) An ordinance to meet an emergency may be introduced, read once
and put on its final passage at a regular or special board meeting,
without being described in a published agenda, if the reasons requiring
immediate action are described in the ordinance. The unanimous approval
of all members of the board at the meeting, a quorum being present, is
required to adopt an emergency ordinance. [1971 c.268 §5](1) Within seven days after adoption of an ordinance, the
enrolled ordinance shall be:

(a) Signed by the presiding officer;

(b) Attested by the person who served as recording secretary of the
district board at the session at which the board adopted the ordinance;
and

(c) Filed in the records of the district.

(2) A certified copy of each ordinance shall be filed with the
county clerk, available for public inspection.

(3) Within 15 days after adoption of an emergency ordinance, notice
of the adoption of the ordinance shall be published as provided by ORS
198.540 (2) for notice of proposed ordinances. The notice shall:

(a) Briefly describe the ordinance;

(b) State the date when the ordinance was adopted and the effective
date of the ordinance; and

(c) State that a copy is on file at the district office and at the
office of the county clerk of the county, available for public
inspection. [1971 c.268 §6] (1) Except as provided by
subsection (2) of this section, an ordinance shall take effect on the
30th day after it is adopted, unless a later date is prescribed by the
ordinance. If an ordinance is referred to the electors of the district,
it shall not take effect until approved by a majority of those voting on
the ordinance.

(2) An emergency ordinance may take effect upon adoption. [1971
c.268 §7; 1983 c.350 §3]

     

Any
interested person who is a landowner within the district or an elector
registered in the district may petition the district board to adopt,
amend or repeal an ordinance. Any such person may appear at any regular
meeting of the board and shall be given a reasonable opportunity to be
heard. [1971 c.268 §9; 1983 c.83 §6](1) If a penalty for a violation is not otherwise provided,
violation of any regulation adopted by a district board under ORS 198.510
to 198.600 is punishable, upon conviction, by a fine of not more than
$250 or imprisonment of not more than 30 days, or both.

(2) Actions to impose punishment shall be brought in the name of
the district or county, as the case may be, in any court having
jurisdiction of misdemeanors under state laws. The action shall be
brought in the county in which the district, or the greater portion of
the area of the district, is located. Fines recovered shall be paid to
the clerk of the court who, after first deducting the court costs in such
proceedings, shall pay the remainder thereof to the treasurer of the
district or county initiating the action to go to and form a part of its
general fund.

(3) Any peace officer may enforce an ordinance adopted under ORS
198.510 to 198.600. ORS 221.333 is applicable to the enforcement of such
ordinances. [1971 c.268 §10]MISCELLANEOUS Local service districts, as
defined by ORS 174.116, are municipal corporations. [2003 c.802 §1a]Note: 198.605 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 198 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.If a district splits into two or
more districts, or two or more districts consolidate or merge, the
districts affected by the split, consolidation or merger, including
districts created by the split, consolidation or merger, must enter into
a written agreement that addresses any unfunded Public Employees
Retirement System liabilities or surpluses and deliver a copy of the
agreement to the Public Employees Retirement Board as required by ORS
238.231. [2003 c.802 §162; 2005 c.808 §22]Note: 198.608 was added to and made a part of ORS chapter 198 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.(1) A district may enter into a contract for the
purchase or for the lease with option to purchase of real or personal
property when the period of time allowed for payment under the contract
does not exceed 30 years. A district entering into a contract authorized
by this subsection may budget funds annually for payment of amounts due
under the contract in each year during the term of the contract, unless
the contract is terminated sooner in accordance with its terms.

(2) The powers granted to districts by this section are in addition
to any other powers possessed by districts in this state, and this
section may not be construed to limit such powers. [2003 c.794 §182]Note: 198.611 was added to and made a part of ORS chapter 198 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.FORMATION; CHANGES OF ORGANIZATION

(Generally) As used in ORS
198.705 to 198.955, unless the context requires otherwise:

(1) "Affected county" means each county which contains or would
contain any territory for which a formation or a change of organization
is proposed or ordered or which contains all or any part of a district
for which a change of organization is proposed or ordered.

(2) "Affected district" means each district which contains or would
contain territory for which a formation or a change of organization is
proposed or ordered.

(3) "Annexation" includes the attachment or addition of territory
to, or inclusion of territory in, an existing district.

(4) "Change of organization" means the annexation or withdrawal of
territory to or from a district, the merger or consolidation of districts
or the dissolution of a district.

(5) "Consolidation" means the uniting or joining of two or more
districts into a single new successor district.

(6) "County board" means the county court or board of county
commissioners of the principal county.

(7) "Dissolution" includes disincorporation, extinguishment or
termination of the existence of a district and the cessation of all its
corporate powers, except for the purpose of winding up the affairs of the
district.

(8) "District board" means the governing board of a district.

(9) "Formation" includes incorporation, organization or creation of
a district.

(10) "Inhabited territory" means territory within which there
reside 12 or more persons who have been registered to vote within the
territory for at least 30 days prior to the date a proceeding is
commenced under ORS 198.705 to 198.955.

(11) "Landowner" or "owner of land" means any person shown as the
owner of land on the last assessment roll. However, if the person no
longer holds the title to the property, then the terms mean any person
entitled to be shown as owner of land on the next assessment roll, or,
when land is subject to a written agreement of sale, the terms mean any
person shown in the agreement as purchaser to the exclusion of the
seller. "Landowner" or "owner of land" includes any public agency owning
land.

(12) "Legal representative" means:

(a) An officer of a corporation duly authorized, by the bylaws or a
resolution of the board of directors of the corporation, to sign for and
on behalf of the corporation; and

(b) A guardian, executor, administrator or other person holding
property in a trust capacity under appointment of court, when authorized
by an order of court, which order may be made without notice.

(13) "Merger" means the extinguishment, termination and cessation
of the existence of one or more districts by uniting with and being
absorbed into another district.

(14) "Notice" includes an ordinance, resolution, order or other
similar matter providing notice which ORS 198.705 to 198.955 authorize or
require to be published, posted or mailed.

(15) "Principal Act" means the statutes which describe the powers
of a district, including the statutes under which a district is proposed
or is operating.

(16) "Principal county" or "county" means the county in which the
district, or the greater portion of the assessed value of all taxable
property in the district, as shown by the most recent assessment roll of
the counties, is located at the time proceedings are initiated to form a
district, but for any district formed prior to and existing on September
9, 1971, "principal county" or "county" means the county in which the
district, or the greater portion of the value of all taxable property in
the district, as shown by the most recent assessment roll of the
counties, was located on September 9, 1971.

(17) "Proceeding" means a proceeding for formation or for change of
organization conducted pursuant to ORS 198.705 to 198.955.

(18) "Uninhabited territory" means territory within which there
reside less than 12 electors who were residents within the territory 30
days prior to the date a proceeding is commenced under ORS 198.705 to
198.955.

(19) "Withdrawal" includes the detachment, disconnection or
exclusion of territory from an existing district. [1971 c.727 §1; 1981
c.804 §72; 1983 c.83 §7; 2003 c.14 §98] As used in
ORS 198.705 to 198.955, unless the context requires otherwise, "district"
has the meaning given that term by ORS 198.010 (2) to (4), (6) to (14)
and (17) to (23). In addition, the term also means any one of the
following:

(1) A county road district organized under ORS 371.055 to 371.110.

(2) A county service district organized under ORS chapter 451.

(3) The Port of Portland created by ORS 778.010.

(4) A translator district organized under ORS 354.605 to 354.715.
[1971 c.727 §2; 1975 c.782 §48c; 1977 c.756 §4; 1979 c.108 §5; 1979 c.877
§1; 1981 c.226 §21](1) ORS 198.705 to 198.955 may be cited as the District
Boundary Procedure Act.

(2) Except as otherwise provided by ORS 199.410 to 199.519, all
district formation or change of organization proceedings shall be
initiated, conducted and completed as provided by ORS 198.705 to 198.955.
However, ORS 198.705 to 198.955 are not intended to apply when a change
of organization is made by statute as provided by ORS 222.510 to 222.580,
451.573 to 451.577 and 451.585. [1971 c.727 §4]Except as otherwise specifically provided by the
principal Act:

(1) A district may consist of contiguous or noncontiguous territory
located in one or more adjoining counties. If any part of the territory
subject to a petition for formation or annexation is within a city, the
petition shall be accompanied by a certified copy of a resolution of the
governing body of the city approving the petition.

(2) A district may not include territory included within another
district formed under the same principal Act when the other district is
authorized to perform and is performing the services the affected
district is authorized to perform, unless:

(a) Withdrawal of such territory is proposed and the territory is
withdrawn by withdrawal proceedings conducted in the other district
simultaneously with the formation or annexation proceedings, and the
proposed boundary changes are approved for both districts; or

(b) The principal Act provides for automatic withdrawal of the
affected territory in such a case.

(3) The boundary lines of a district formed under ORS 198.705 to
198.955 shall include only such territory as may in reason be served by
the facilities or services of the district.

(4) For purposes of ad valorem taxation, a boundary change must be
filed in final approved form with the county assessor and the Department
of Revenue as provided in ORS 308.225. [1971 c.727 §5; 2001 c.138 §2] If there are two or
more affected counties in a proceeding under ORS 198.705 to 198.955, any
notices, proceedings, orders or any other act authorized or required to
be given, taken or made by the county board, the county clerk or any
other officer of a county, shall be given, taken or made by the persons
holding such offices in the principal county. Officers of an affected
county other than the principal county shall cooperate with the officers
of the principal county and shall furnish the officers of the principal
county with such certificates, records or certified copies of records as
may be necessary to enable the officers of the principal county to comply
with ORS 198.705 to 198.955. [1971 c.727 §7](1) A proposal to merge or consolidate
districts may be initiated as provided in ORS 198.895.

(2) A proposal to merge or consolidate districts may provide that a
city be joined to the surviving or successor district for the purpose of
receiving service from the district.

(3) If a proposal to merge or consolidate districts includes a
proposal to join a city to the surviving or successor district, the
proposal may be initiated as provided in ORS 198.895. [1983 c.142 §5](1) Except as otherwise provided by ORS 198.705 to
198.955, when notice is required or authorized to be published, posted or
mailed, it shall be published, posted or mailed as provided by this
section. When notice is required to be given and the duty of giving the
notice is not specifically enjoined upon some officer, agency or person,
the county clerk or the secretary of the district board, as the case may
be, shall give notice or cause it to be given.

(2) Notice required to be published shall be published in one or
more newspapers of general circulation within the affected district. If
any newspaper is of general circulation in two or more affected
districts, publication in one such newspaper is sufficient publication
for all such affected districts. If no newspaper is of general
circulation within the affected district, the publication shall be made
in a newspaper of general circulation within the principal county.
Published notice of a hearing shall be commenced at least 15 days prior
to the date specified in the notice for the hearing, and the last
publication shall be made at least five days prior to the hearing.

(3) Notice required to be posted shall be posted on or near the
doors of the meeting room of the district board or of the county board,
or upon any official public bulletin board customarily used for the
purpose of posting public notices by or pertaining to the district or
county. Posted notice shall be posted not less than five successive days.
If posted notice is notice of a hearing, posting shall be commenced not
less than 15 days prior to the date specified in the notice for the
hearing.

(4) Mailed notice shall be sent first class and deposited, postage
prepaid, in the United States mails and shall be considered to have been
given when so deposited. If mailed notice is a notice of a hearing,
mailing shall be made not more than 15 days nor less than five days prior
to the date specified in the notice for the hearing.

(5) Notice authorized or required to be given by publication,
posting or mailing shall contain all matters required by ORS 198.705 to
198.955. If a petition, ordinance, resolution or order of a district
board giving notice contains all matters required to be contained in the
notice, the county clerk or district secretary may, and shall if
required, cause a copy of such petition, ordinance, resolution or order
to be published, posted or mailed, in which case no other notice need be
given by the clerk or secretary. [1971 c.727 §8; 1983 c.350 §4]
(1) On or before the date set for a hearing on a petition, any person
interested in the proposed formation or change of organization of the
district may appear and present written statements for or against the
granting of the petition or the proposed change.

(2) A written statement for or against a proposed formation or
change of organization or a request for an election must be in writing,
must clearly specify the defect, error, irregularity or omission to which
objection, if any, is made and must be filed within the time and in the
manner provided by ORS 198.705 to 198.955. Any statement not so made and
filed shall be considered voluntarily waived. [1971 c.727 §§9,10]When ORS
198.705 to 198.955 require an election to be called within a district,
the election shall be conducted as provided by the principal Act of the
district or as provided by the principal Act for an election on
formation. However, to the extent of an omission in the principal Act:

(1) If the district or territory is defined as a district under ORS
255.012, ORS chapter 255 applies.

(2) If the district is not named in ORS 255.012, the general
election laws apply. [1971 c.727 §11; 1983 c.350 §5] A resolution or
order calling an election on a proposed formation or change of
organization shall:

(1) Provide for giving notice of the special election or elections
upon the question.

(2) Designate each district or other territory within which the
election or elections are to be held.

(3) Fix a date for the election, which date shall be the same for
each election when an election is called upon the same question within
more than one territory or district.

(4) State the substance of the question or questions to be
submitted to the electors.

(5) Specify any terms and conditions provided for in the formation
or change of organization.

(6) Contain such other matters as may be necessary to call, provide
for and give notice of the election or elections and to provide for the
conduct thereof and the canvass of the returns thereupon. [1971 c.727 §12](1) Notwithstanding any
provision of ORS 198.705 to 198.955 that provides a different effective
date, an annexation, withdrawal, consolidation or merger shall not become
effective during the period:

(a) Beginning after the 90th day before a primary election or
general election and ending on the day after the election; or

(b) Beginning after the deadline for filing the notice of election
before any other election held by any district or other municipal
corporation involved in the annexation, withdrawal, consolidation or
merger and ending on the day after the election.

(2) If the effective date established for an annexation,
withdrawal, consolidation or merger is a date that is prohibited under
this section, the annexation, withdrawal, consolidation or merger shall
become effective on the day after the election.

(3) For the purposes of ORS 308.225 only, the effective date of an
annexation shall be the date of the order declaring the annexation under
ORS 198.855.

(4) For purposes of ad valorem taxation, a boundary change must be
filed in final approved form with the county assessor and the Department
of Revenue as provided in ORS 308.225. [1985 c.808 §67; 1989 c.923 §23;
1995 c.712 §82; 2001 c.138 §3]Note: 198.747 was added to and made a part of 198.705 to 198.955 by
legislative action but was not added to any other series. See Preface to
Oregon Revised Statutes for further explanation. Before
circulating a petition for formation of a district, the petitioner shall
file with the county clerk of the principal county a prospective
petition. The petitioner shall include with the prospective petition a
description of the boundaries of the territory proposed to be included in
the district. [1991 c.70 §2]Note: 198.748 was added to and made a part of 198.705 to 198.955 by
legislative action but was not added to any other series. See Preface to
Oregon Revised Statutes for further explanation.
Before circulating a petition for formation of a district, the persons
designated on the petition as the chief petitioners shall complete an
economic feasibility statement for the proposed district. The economic
feasibility statement shall form the basis for the proposed permanent
rate limit for operating taxes required by ORS 198.750 (1)(g). The
economic feasibility statement shall contain:

(1) A description of the services and functions to be performed or
provided by the proposed district;

(2) An analysis of the relationships between those services and
functions and other existing or needed government services; and

(3) A proposed first year line item operating budget and a
projected third year line item operating budget for the new district that
demonstrate its economic feasibility. [1989 c.92 §2; 1997 c.541 §342](1) If a proposal for formation or change of organization
of a district is made by petition, the petition shall:

(a) State that the petition is filed pursuant to ORS 198.705 to
198.955.

(b) State the names of all affected districts and all affected
counties.

(c) Designate the principal Act of each affected district.

(d) State the nature of the proposal, whether formation of a
district or change of organization and the kind of change proposed.

(e) State whether the territory subject to the petition is
inhabited or uninhabited.

(f) If the petition is for formation, and district board members
are elected, state the number of members on the board.

(g) If the petition is for formation, include a proposed permanent
rate limit for operating taxes sufficient to support the services and
functions described in the economic feasibility statement required by ORS
198.749. A tax rate limit need not be included in the petition if no tax
revenues are necessary to support the services and functions described in
the economic feasibility statement. The tax rate limit shall be expressed
in dollars per thousand dollars of assessed value. The tax rate limit
shall be calculated for the latest tax year for which the assessed value
of the proposed district is available.

(h) Set forth any proposed terms and conditions, if any, to which a
proposed formation or change of organization is to be subject.

(i) State, or indicate opposite each signature, whether the signers
of the petition are landowners within the district or electors registered
in the district, or both.

(j) Request that proceedings be taken for the formation or change
of organization proposed.

(2) If the petition proposes formation of a district, the petition
shall set forth a description of the boundaries of the territory proposed
to be included in the district. If the petition proposes annexation or
withdrawal of territory, the petition shall set forth a description of
the boundaries of the territory to be annexed or withdrawn.

(3) If a petition proposes formation of a district, or
consolidation or merger of districts, the petition may propose a name for
the new district or for the surviving or successor district.

(4) The person circulating the petition shall certify on each
signature sheet of the petition that every person who signed the petition
did so in the presence of the person circulating the petition. [1971
c.727 §§13,14; 1983 c.83 §8; 1989 c.92 §3; 1997 c.541 §343; 1999 c.318
§21] (1) A petition for formation
shall be signed by not less than:

(a) Fifteen percent of the electors or 100 electors, whichever is
the greater, registered in the territory subject to the petition; or

(b) Fifteen owners of land or the owners of 10 percent of the
acreage, whichever is the greater number of signers, within the territory
subject to the petition.

(2) A petition for annexation shall be signed by not less than:

(a) Fifteen percent of the electors or 100 electors, whichever is
the lesser, registered in the area proposed to be annexed; or

(b) Fifteen owners of land or the owners of 10 percent of the
acreage, whichever is the greater number of signers, within the area
proposed to be annexed.

(3) A petition for withdrawal shall be signed by not less than:

(a) Fifteen percent of the electors or 100 electors, whichever is
the lesser, registered in the district; or

(b) Fifteen owners of land or the owners of 10 percent of the
acreage, whichever is the greater number of signers, within the district.

(4) A petition for merger and a petition for consolidation shall be
signed by not less than:

(a) Fifteen percent of the electors or 100 electors, whichever is
the lesser, registered in each district which it is proposed to merge or
consolidate; or

(b) Fifteen owners of land in each district or the owners of 10
percent of the acreage located in each district, whichever is the greater
number of signers.

(5) A petition for dissolution shall be signed by not less than:

(a) Fifteen percent of the electors registered in the district; or

(b) Owners of 15 percent of the acreage within the district. [1971
c.727 §15; 1973 c.117 §1; 1983 c.83 §9](1) Each person signing a
petition may also print the person's name on the petition and shall add
after the signature the date of signing. If a person is signing the
petition as an elector, the person shall add after the signature the
person's place of residence, giving street and number or a designation
sufficient to enable the place of residence to be readily ascertained. If
the signer is signing the petition as a landowner, the number of acres of
land owned by the signer and the name of the county whose assessment roll
is used for the purpose of determining the signer's right to vote shall
be stated in the body of the petition or indicated opposite the
signature. If the signer is a legal representative of the owner, the
signature shall be accompanied by a certified copy of the signer's
authority to sign as a legal representative.

(2) After a petition has been offered for filing, a person may not
withdraw the person's name therefrom.

(3) A petition shall designate not more than three persons as chief
petitioners, setting forth their names and mailing addresses. A petition
may consist of a single instrument or separate counterparts. [1971 c.727
§17; 1973 c.283 §7; 1983 c.567 §18](1) A petition shall not be accepted for
filing unless the signatures thereon have been secured within six months
of the date on which the first signature on the petition was affixed. A
petition for formation of a district shall not be accepted for filing if
it is not accompanied by the economic feasibility statement required
under ORS 198.749. When a petition for formation of a district includes a
proposed permanent rate limit for operating taxes, the petition shall be
filed not later than 180 days before the date of the next primary
election or general election at which the petition for formation will be
voted upon. Petitions required to be filed with the county board shall be
filed with the county clerk of the principal county. Petitions required
to be filed with the district board shall be filed with the secretary of
the district board. It is not necessary to offer all counterparts of a
petition for filing at the same time, but all counterparts when certified
as provided by subsection (3) of this section shall be filed at the same
time.

(2) Within 10 days after the date a petition is offered for filing,
the county clerk or district secretary, as the case may be, shall examine
the petition and determine whether it is signed by the requisite number
of qualified signers. In the case of a petition required or permitted to
be signed by landowners, within 10 days after the date a petition is
offered for filing, the county assessor shall examine the petition and
determine whether it is signed by the requisite number of qualified
landowners. If the requisite number of qualified signers have signed the
petition, the county clerk or district secretary shall file the petition.
If the requisite number have not signed, the county clerk or district
secretary shall so notify the chief petitioners and may return the
petition to the petitioners.

(3) A petition shall not be filed unless the certificate of the
county clerk or the district secretary is attached thereto certifying
that the county clerk or district secretary has compared the signatures
of the signers with the appropriate records, that the county clerk or
district secretary has ascertained therefrom the number of qualified
signers appearing on the petition, and that the petition is signed by the
requisite number of qualified signers. In the case of a petition required
or permitted to be signed by landowners, a petition shall not be filed
unless the certificate of the county assessor is attached thereto
certifying that the county assessor has compared the signatures of the
signers with the appropriate records and that the petition is signed by
the requisite number of qualified landowners.

(4) No petition for dissolution shall be accepted for filing within
one year after an election held on the question of dissolution of a
district. [1971 c.727 §18; 1973 c.117 §2; 1989 c.92 §4; 1991 c.70 §3;
1995 c.712 §83; 1997 c.541 §344; 1999 c.318 §47] (1)
In examining a petition required or permitted to be signed by landowners,
the county assessor shall disregard the signature of a person not shown
as owner on the last equalized assessment roll unless prior to
certification the county assessor is furnished with written evidence,
satisfactory to the county assessor, that the signer:

(a) Is a legal representative of the owner;

(b) Is entitled to be shown as owner of land on the next assessment
roll;

(c) Is a purchaser of land under a written agreement of sale; or

(d) Is authorized to sign for and on behalf of any public agency
owning land.

(2) If a person signing a petition as a landowner appears as owner
on the last equalized assessment roll but is shown thereon as a partner,
tenant in common or tenant by the entirety, the signature of the person
signing shall be counted as if all other owners, as shown on the roll for
the same parcel of land, had signed. [1971 c.727 §19; 1999 c.318 §48](1) A
petition for formation, annexation, withdrawal or dissolution shall not
be accepted for filing unless the petition is accompanied by a bond, a
cash deposit or other security deposit as follows:

(a) The bond shall be in a form and in an amount approved by the
county board, not to exceed $100 for each precinct in the affected
district and any territory to be included in the district, up to a
maximum of $10,000. The bond shall be conditioned that, if the attempted
formation, annexation, withdrawal or dissolution is not effected, the
chief petitioners will pay the costs thereof, excluding any costs
incurred by a local government boundary commission under ORS 199.410 to
199.519.

(b) The cash deposit shall be in an amount approved by the county
board, not to exceed $100 for each precinct in the affected district and
any territory to be included in the district, up to a maximum of $10,000.
The cash deposit shall be accompanied by a form prescribed by the
Secretary of State. The form shall include the names and addresses of all
persons and organizations providing any part of the cash deposit and the
amount provided by each, and a statement signed by the chief petitioners
that if the costs of the attempted formation, annexation, withdrawal or
dissolution exceed the deposit, the chief petitioners shall pay to the
county treasurer the amount of the excess costs.

(c) The security deposit other than a bond or cash deposit shall be
of a kind and in an amount approved by the county board, not to exceed
$100 for each precinct in the affected district and any territory to be
included in the district, up to a maximum of $10,000. The security
deposit shall be accompanied by a form prescribed by the Secretary of
State. The form shall include the names and addresses of all persons and
organizations providing any part of the security deposit and the amount
and kind provided by each, and a statement signed by the chief
petitioners that if the costs of the attempted formation, annexation,
withdrawal or dissolution exceed the security deposited, the chief
petitioners shall pay to the county treasurer the amount of the excess
costs.

(2) If the proposed formation, annexation, withdrawal or
dissolution is effected, the district shall be liable for the costs. Not
later than the 30th day after the election, if a cash deposit or security
deposit other than a bond was made under subsection (1) of this section,
the county clerk shall refund the deposit to the persons who made the
deposit.

(3) If the proposed formation, annexation, withdrawal or
dissolution is not effected, the county shall collect the costs of the
attempted formation, annexation, withdrawal or dissolution as follows:

(a) If the chief petitioners posted a bond, the county shall
collect on the bond.

(b) If the chief petitioners made a cash deposit, not later than
the 30th day after the election, the county clerk shall pay into the
general fund of the county that portion of the deposit needed to
reimburse the county for the costs. If any portion of the deposit remains
after the costs have been paid, the county clerk shall refund the portion
to the persons shown on the form filed under subsection (1) of this
section as having made the deposit. If the costs exceed the amount of the
deposit, the chief petitioners shall pay to the county treasurer the
amount of the excess costs.

(c) If the chief petitioners made a security deposit other than a
bond or cash deposit, not later than the 30th day after the election, the
county clerk shall negotiate or otherwise collect on as much of the
security deposit as necessary to reimburse the county for the costs and
shall pay the proceeds into the general fund of the county. If any
portion of the security deposit or any proceeds of the security deposit
remain after the costs have been paid, the county clerk shall return the
portion or the remaining proceeds to the persons shown on the form filed
under subsection (1) of this section as having made the deposit. If the
costs exceed the amount of the proceeds, the chief petitioners shall pay
to the county treasurer the amount of the excess costs.

(4) Notwithstanding subsection (1) of this section, the costs of
proceedings initiated by a county or district board, excluding costs
incurred by a local government boundary commission under ORS 199.410 to
199.519, shall be paid by the initiating board out of county or district
funds. [1971 c.727 §20; 1983 c.567 §19] (1) Within 10
days after a document referred to by subsection (2) of this section is
entered, adopted or executed, the board that entered, adopted or executed
the document shall file duplicate copies of the document with the
Department of Revenue, the Secretary of State and with the county clerk
and the county assessor of each county in which any district affected by
the document is located.

(2) This section applies to:

(a) An order of formation entered by the county board under ORS
198.810 to 198.840.

(b) An order of annexation entered by the county board under ORS
198.850 to 198.867.

(c) An order of withdrawal entered by the county board under ORS
198.875.

(d) A resolution of merger adopted by the district board under ORS
198.910.

(e) A resolution of consolidation adopted by the district board
under ORS 198.910.

(f) The statement executed by the board of trustees of a dissolving
district under ORS 198.945. [1971 c.727 §21; 1977 c.884 §1]No municipal corporation, as defined in ORS 297.405,
incorporated or formed in this state after October 3, 1979, shall receive
or disburse moneys or transact business of any kind until a notice of
incorporation or formation has been filed with the Secretary of State by
that corporation. [1979 c.621 §7]Note: 198.782 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 198 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.(1) If the county clerk refuses to accept and file a
petition for formation or for change of organization, or if the county
board refuses to call a special election as provided by ORS 198.705 to
198.955, any citizen of the affected district or territory may apply
within 10 days after such refusal to the circuit court of the principal
county for a writ of mandamus to compel the county board or county clerk
to do so. If it is decided by the circuit court that the petition for
formation or change of organization is legally sufficient and the
requisite number of signatures is attached, the circuit court shall
direct the county board to call the election. The suit shall be advanced
on the docket and decided by the circuit court as quickly as possible.
Either party may appeal as provided for appeals in other proceedings.

(2) An action to determine the validity of a formation or change of
organization proceeding may also be brought pursuant to ORS 33.710 and
33.720 or 34.010 to 34.100.

(3) For the purpose of an action to determine or contest the
validity of a formation or change of organization, the formation or
change shall be considered complete and final upon the date the order of
formation or the order, resolution or statement announcing a change of
organization is filed with the county clerk as provided by ORS 198.780.
[1971 c.727 §22; 1979 c.562 §7; 1979 c.772 §15a]No change of organization, or any term or condition thereof,
shall impair the rights of any bondholder or other creditor of a
district. Notwithstanding ORS 198.705 to 198.955, or of any order
changing the organization of a district, or any term or condition
thereof, each and every bondholder or other creditor may enforce all the
rights of the bondholder or other creditor in the same manner and to the
same extent as if the change of organization, term or condition had not
been made. Any such rights may also be enforced against agencies, and
their respective officers, as follows:

(1) Upon annexation or withdrawal of territory: Against the
district to or from which the territory is annexed or withdrawn.

(2) Upon dissolution of a district: Against the successor city,
county or district or against a city, county or district receiving
distribution of all or any part of the remaining assets of the dissolved
district.

(3) Upon merger of two or more districts: Against the surviving
district.

(4) Upon consolidation of two or more districts: Against the
successor district. [1971 c.727 §23](1) Proceedings may be initiated by the county
board or any other public agency in accordance with ORS 431.705 to
431.760:

(a) To annex the affected territory to a district, as defined by
ORS 431.705; or

(b) To form a metropolitan service district as authorized by ORS
chapter 268, or a county service district as authorized by ORS chapter
451, to include the affected territory.

(2) The findings of the Director of Human Services when filed with
the county board in accordance with ORS 431.735 or 431.750 shall be
considered a petition for the purposes of ORS 198.705 to 198.955. The
county board of the principal county shall conduct proceedings in
accordance with the findings and order of the director and with ORS
198.705 to 198.955.

(3) In proceedings described by subsection (1) of this section, the
county board shall determine whether the affected territory shall be
included in a new district or annexed to an existing district. The county
board shall not inquire into the need for the proposed service facilities
or adjust the boundaries of the affected territory. ORS 198.805 (2), and
the provisions of ORS 198.810 and 198.815 providing for an election on
the formation of or annexation to a district, do not apply to proceedings
under this section. [1973 c.361 §14] (1) A district may change its name
from the name given it in the formation order of the county board under
ORS 198.810, or from the name under which it was otherwise incorporated,
to a name chosen by resolution of a majority of the members of the
district board.

(2) A district board shall not adopt a resolution for a district
name change without first publishing notice of the proposed name change
under ORS 198.730 (2) and holding a hearing on the matter.

(3) The resolution for a district name change shall take effect 30
days after adoption by the district board unless a petition objecting to
the name change is filed as provided in this subsection within those 30
days. The requirements for preparing, circulating and filing a petition
under this subsection shall be as provided for an initiative petition in
ORS 255.135 to 255.205. If a majority of the electors voting on the
question approve the name change, it shall be effective immediately.
[1979 c.272 §2; 1983 c.350 §6](1) All powers, rights, duties and obligations of a district
which has adopted a new name under ORS 198.793 shall be continued under
the new name. All references to the prior name of the district shall be
considered references to the new name.

(2) A district changing its name under ORS 198.793 shall,
immediately upon effectiveness of the change, certify the name change to
the Director of the Department of Revenue, the county treasurer of the
principal county and the county clerk and county assessor of each county
in which the district is situated. [1979 c.272 §3](Formation)For purposes of a formation proceeding, the county board
where the petition is filed shall have original and, except as provided
by ORS 199.410 to 199.519, exclusive jurisdiction, coextensive with the
boundaries of the proposed district, without regard to county lines. For
all purposes under ORS 198.705 to 198.955, the jurisdiction of the county
board of the principal county shall continue from the time a district is
formed until the district is dissolved. [1971 c.727 §6] (1) A
petition for formation must be filed with the county board of the
principal county. Before the petition is filed, the petition must be
endorsed by any agency required by the principal Act to endorse or
approve the petition. If the petition satisfies the requirements of ORS
198.748, 198.749 and 198.750 to 198.775 and is otherwise sufficient under
the principal Act, the county board shall:

(a) If the county is within the jurisdiction of a local government
boundary commission, file the petition with the boundary commission
within 10 days after the petition is filed with the board; or

(b) Set a date for a hearing on the petition. The hearing may not
be held less than 30 days or more than 50 days after the date the
petition is filed.

(2) The county board shall cause notice of the hearing to be posted
in at least three public places and published by two insertions in a
newspaper. The notice shall state:

(a) The purpose for which the district is to be formed.

(b) The name and boundaries of the proposed district.

(c) The time and place of the hearing on the petition.

(d) That all interested persons may appear and be heard.

(3) Except as provided in subsection (1)(a) of this section, this
section and ORS 198.805 do not apply in areas subject to the jurisdiction
of a local government boundary commission. [1971 c.727 §24; 1983 c.336
§20; 1989 c.92 §5; 2005 c.747 §1](1) At the time stated in
the notice, the county board shall hear the petition and determine, in
accordance with the criteria prescribed by ORS 199.462, whether the area
could be benefited by the formation of the district. The county board may
adjourn the hearing from time to time, but not exceeding four weeks in
all unless additional notice is given. The county board may alter the
boundaries set forth in the petition to either include or exclude
territory. The board may not modify the boundaries to:

(a) Exclude from the proposed district land that, in the judgment
of the board, could be benefited by inclusion in the proposed district; or

(b) Include in the proposed district land that, in the judgment of
the board, could not be benefited by inclusion in the proposed district.

(2) If the county board determines that any land has been
improperly omitted from the proposed district and that the owner has not
appeared at the hearing, the board shall continue the hearing and shall
order notice given to the nonappearing owner requiring the owner to
appear before it and show cause, if any, why the land of the owner should
not be included in the proposed district. The notice shall be given
either by posting and publication, in the same manner as notice of the
original hearing and for the same period, or by personal service on each
nonappearing owner. If notice is given by personal service, service shall
be made at least 10 days prior to the date fixed for the further hearing.

(3) If the county board finds that a proposed county service
district may not be needed in the future or that indefinite existence may
significantly discourage future boundary changes, it may require
dissolution as provided in ORS 451.620. The order for such dissolution
shall specify the fiscal year, not later than the 10th fiscal year after
the date of the order, in which dissolution shall occur. [1971 c.727 §25;
1987 c.504 §5; 2005 c.747 §2](1) The county board shall
approve, modify or reject a petition for formation using only the
criteria set forth in ORS 198.805.

(2) If the county board approves the petition for formation, as
presented or as modified, or if the boundary commission considers the
petition for formation pursuant to ORS 198.800 (1)(a), approves the
petition, as presented or as modified, and transmits its approval to the
county board in accordance with ORS 199.480, the county board shall enter
an order so declaring. The order shall set forth the name of the district
and the boundaries as determined by the board or by the boundary
commission. The order shall also fix a place, and a time not less than 20
nor more than 50 days after the date of the order, for a final hearing on
the petition. The order shall declare that if written requests for an
election are not filed as provided by subsection (3) of this section, the
board, at the time of the final hearing, will enter its order creating
the district. The board shall cause notice of the hearing to be given by
publication.

(3) An election may not be held unless written requests for an
election are filed at or before the hearing by not less than 15 percent
of the electors or 100 electors, whichever is the lesser number,
registered in the proposed district.

(4) Notwithstanding subsections (2) and (3) of this section, if the
petition for formation includes:

(a) A permanent rate limit for operating taxes for the proposed
district and the petition is approved by the county board or boundary
commission, as presented or as modified, the county shall hold an
election on the question of forming the district.

(b) In addition to the permanent rate limit for operating taxes, a
separate ad valorem tax for bonded indebtedness for capital construction
within the proposed district and the petition is approved by the county
board, as presented or as modified, the county shall hold an election on
the question of incurring the bonded indebtedness when the election on
the question of formation of the district is held. The question on
incurring bonded indebtedness may be approved only if electors approve
formation of the district, and the ballot measure must clearly state that
the bonded indebtedness may be approved only if electors approve
formation of the district.

(5) Notwithstanding subsection (3) of this section and ORS 198.815,
an order of a boundary commission authorizing a county service district
established to provide sewage works to also provide drainage works shall
be effective upon the filing of the order with the county board. The
order of the boundary commission is subject to referendum by the electors
of the county service district in the manner provided for district
measures under ORS 255.135 to 255.205. If the order of a boundary
commission is referred to the electors, the order does not take effect
until the order is approved by a majority of the votes cast on the
question and the results of the election are certified. The question in
the ballot title for a measure referred under this subsection shall be
worded so that an affirmative response to the question corresponds to a
vote in favor of authorizing the county service district to provide
drainage works. [1971 c.727 §26; 1983 c.83 §10; 1983 c.336 §21; 1989 c.92
§6; 1989 c.374 §1; 1997 c.541 §345; 2001 c.707 §1; 2005 c.747 §3](1)
Notwithstanding ORS 198.810 (3), an order of the county board that
approves a petition for formation of a county service district within
Washington County to provide water resource management services or
ancillary activities may be referred to the electors in the proposed
district. An election on the question of forming the district shall be
held as provided in ORS 198.815. If an election is called, the order
shall not become effective until the order is approved by a majority of
the votes cast on the question and the results of the election are
certified. The question in the ballot title for a measure referred under
this subsection shall be worded so that an affirmative response to the
question corresponds to a vote in favor of authorizing the formation of a
county service district to provide water resource management services and
ancillary activities.

(2) Notwithstanding ORS 198.705 to 198.955 or 451.620, an order of
the county board that approves a petition for formation of a county
service district within Washington County to provide water resource
management services may also provide for the dissolution of any existing
county service district that is situated within the newly established
district and that provides any water resource management service that
will be provided by the newly established district. Upon the effective
date of the order, the existing county service district shall be
dissolved and the newly established district shall succeed to all the
assets and become charged with all the liabilities, obligations and
functions of the former district. [1999 c.759 §3; 2005 c.747 §4]Note: 198.813 was added to and made a part of 198.800 to 198.820 by
legislative action but was not added to any other series. See Preface to
Oregon Revised Statutes for further explanation.(1) If the required number
of written requests for an election are filed with the county board on or
before the date of the final hearing or if the petition for formation
includes a permanent rate limit for operating taxes for the proposed
district, the board shall provide by order for the holding of an election
to submit to the electors the question of forming the district. The board
shall cause notice of the election to be published by two insertions. If
requests for an election are filed by less than the required number of
persons and no permanent rate limit for operating taxes is included in
the petition, the county board shall dismiss the requests and enter an
order creating the district.

(2) The order calling an election shall fix the date of the
election on the next available election date in ORS 255.345 for which the
filing deadline can be met. However, when the proposal for formation
includes a permanent rate limit for operating taxes for the proposed
district, the election shall be held on the date of the next primary
election or general election for which the filing deadline can be met.
The order shall also state that at such election members of the district
board will be voted for. Candidates to be voted for as members of the
first board of a district shall be nominated as provided by ORS chapter
255 and the principal Act of a district.

(3) The order calling the election shall require the county
official in charge of elections to include with the ballot for the
election a map or other description of the boundaries of the proposed
district using streets and other generally recognized features and a
statement of the permanent rate, if any, proposed for the district in the
petition for formation under ORS 198.750 (1)(g). Such statement shall
comply with the requirements of ORS 250.035. The map or other description
and statement required by this subsection shall be supplied by the county
board.

(4)(a) When the proposal for formation includes a permanent rate
limit for operating taxes for the proposed district, the ballot title
shall clearly indicate that a single question is being proposed which is:

(A) Whether the proposed district shall be formed; and

(B) Whether the permanent rate limit specified in the ballot title
shall be adopted as the maximum rate of operating taxes for that district.

(b) The ballot title for the election shall be in compliance with
ORS 250.036.

(5) When the proposal for formation includes a permanent rate limit
for the proposed district, the district shall be authorized to impose
operating taxes not in excess of the permanent rate limit if the proposal
is approved by a majority of the votes cast and:

(a) At least 50 percent of registered electors eligible to vote in
the election cast a ballot; or

(b) The election is a general election in an even-numbered year.

(6) If a proposed county service district is subject to dissolution
unless a determination of public need for continued existence is made,
the ballot title shall include the fiscal year in which dissolution will
occur and statement that the district will dissolve unless the board of
directors determines that there is a public need for continued existence.
[1971 c.727 §27; 1979 c.316 §6; 1987 c.504 §6; 1987 c.707 §1; 1989 c.92
§7; 1989 c.923 §4; 1991 c.70 §4; 1995 c.712 §84; 1997 c.541 §346; 1999
c.21 §1] (1) After the
election if any is held, if it is determined by the county board that the
majority of the votes cast were in favor of formation of the district,
the board shall enter an order establishing and forming the district. If
a majority of the votes cast oppose the formation of the district, the
board shall enter an order dismissing the petition. The order shall be
entered within 30 days after the date of the election. The county board
shall also canvass the votes for members of the district board and, if
formation of the district is approved, cause the county clerk to issue
certificates of election to the number of persons, equal to the number of
board members named in the petition for formation, receiving the highest
number of votes.

(2) After the date of the formation order, the inhabitants of the
territory within the district shall be a municipal corporation to be
known by the name specified in the order, and as such shall have
perpetual succession, and by such name shall exercise and carry out the
corporate powers and objects conferred by the principal Act of the
district.

(3) An order creating a district, whether the district is formed
with or without an election, shall state the name and purpose of the
district, describe its boundaries, and declare the district formed. From
the date of the formation order the district shall be considered
established. [1971 c.727 §28; 1999 c.759 §4](1) If an election is not held on the question of
formation, an election shall be ordered for the purpose of electing the
first members of the district board. When the formation order is entered,
the county board shall order an election held in the district, which
election shall be held on the next practicable date under ORS 255.345.

(2) ORS chapter 255 governs the nomination and election of the
first board of a district defined under ORS 255.012 if the district has
an elective board. If the district is not defined under ORS 255.012, the
returns of the election shall be made to the county clerk. The clerk
shall canvass the votes for members of the district board and issue
certificates of election to the number of persons, equal to the number of
board members named in the petition for formation, receiving the highest
number of votes. [1971 c.727 §29; 1975 c.647 §1; 1983 c.350 §7](1) If the owners of all real property within an area desire to
form a district, they may sign and present a petition to the county
board. The petition shall contain the information required by ORS 198.750
to 198.775 and shall be verified by the affidavit of one of the
petitioners that the petitioner believes that the signers of the petition
comprise all the owners, at the time of the verification, of all the land
included within the proposed district. If members of the district board
are generally elected to office, the petition shall also state the names
of persons desired as the members of the first board and an acceptance in
writing by each agreeing to serve as a member of the board.

(2) The county board shall approve the petition for formation of
the district if it finds:

(a) That the owners of all the land within the proposed district
have joined in the petition; and

(b) That, in accordance with the criteria prescribed by ORS
199.462, the area could be benefited by formation of the district.

(3) If formation is approved, any election required by ORS 198.810
to 198.825 shall be dispensed with. After the hearing on the petition, if
the county board approves the petition, it shall enter an order creating
the district. If the district board members generally are elected, the
persons nominated by the petition and accepting nomination as members of
the board shall constitute the first board of the district. [1971 c.727
§30](1) The county board may initiate the formation of a district, to
be located entirely within the county, by an order setting forth:

(a) The intention of the county board to initiate the formation of
a district and citing the principal Act.

(b) The name and boundaries of the proposed district.

(c) The date, time and place of a public hearing on the proposal.

(2) An order initiating the formation of a county service district
may require dissolution, subject to a determination of public need for
continued existence of the county service district as provided in ORS
451.620. The fiscal year in which dissolution will occur, not later than
the 10th fiscal year after the date of the order, shall be specified.

(3) Except as otherwise provided by the principal Act, if any part
of the territory subject to formation of a district under this section is
within a city, the order shall be accompanied by a certified copy of a
resolution of the governing body of the city approving the order.

(4) A county board that also serves as the governing body of a
county service district established to provide sewage works may initiate
a proceeding to authorize that county service district to also provide
drainage works by adopting an order setting forth the information
specified in subsection (1) of this section. The order must be
accompanied by resolutions consenting to the additional function that are
adopted by the governing bodies of not less than 70 percent of the cities
located within the boundaries of the county service district. [1971 c.727
§31; 1987 c.504 §7; 1987 c.510 §1; 1989 c.374 §2; 2005 c.510 §4] Notice of the hearing set by the order
shall be given in the manner provided by ORS 198.800 except that the
notice shall state that the county board has entered an order declaring
its intention to initiate formation. The hearing and election on the
proposal, and election of board members, shall be conducted as provided
by ORS 198.800 to 198.825. [1971 c.727 §32] The county shall bear the cost of formation or
attempted formation of a district under ORS 198.835 to 198.845. However,
if a district is formed, the district shall reimburse the county for any
expenses incurred by the county in making necessary preliminary
engineering studies and surveys in connection with the formation of the
district. [1971 c.727 §33](Annexation)(1) When the electors of an area wish to annex
to a district, they may file an annexation petition with the county
board. Before the petition is filed with the county board, it shall be
approved by indorsement thereon by the board of the affected district and
by any other agency also required by the principal Act to indorse or
approve the petition.

(2) ORS 198.800 to 198.820 apply to the proceeding conducted by the
county board and the rights, powers and duties of petitioners and other
persons having an interest in the proceedings. However, when determining
whether to approve an annexation petition filed under this section, the
county board, in lieu of the criteria prescribed by ORS 198.805 (1) and
199.462, shall consider the local comprehensive plan for the area and any
service agreement executed between a local government and the affected
district.

(3) In lieu of a petition, annexation may be initiated by
resolution of the district board or of the county board. Proceedings may
also be initiated by any other public agency if authorized by the
principal Act. If proceedings are initiated by the district board or
another public agency, a resolution setting forth the matters described
by ORS 198.835 shall be filed with the county board. The proceeding
thereafter shall be conducted as provided by ORS 198.835 to 198.845.
However, when determining whether to approve the resolution, the county
board, in lieu of the criteria prescribed by ORS 198.805 (1) and 199.462,
shall consider the local comprehensive plan for the area and any service
agreement executed between a local government and the affected district.
An annexation initiated by the district board may include an effective
date that is not later than 10 years after the date of the order
declaring the annexation. [1971 c.727 §34; 1991 c.637 §5; 1999 c.392 §3](1) If the annexation petition is not signed
by all the owners of all the lands in the territory proposed to be
annexed or is not signed by a majority of the electors registered in the
territory proposed to be annexed and by the owners of more than half of
the land in the territory and an election is ordered on the proposed
annexation as provided by ORS 198.815, the county board shall order an
election to be held in the territory and the county board also shall
order the board of the affected district to hold an election on the same
day, both elections to be held for the purpose of submitting the proposed
annexation to the electors. The district board shall certify the results
of the election to the county board. The order of annexation shall not be
entered by the county board unless a majority of the votes in the
territory and a majority of the votes in the district are in favor of the
annexation. If a majority of the votes cast in both elections do not
favor annexation, the county board by order shall so declare.

(2) Two or more proposals for annexation of territory may be voted
upon at the same time. However, within the district each proposal shall
be stated separately on the ballot and voted on separately and, in the
territory proposed to be annexed, no proposal for annexing other
territory shall appear on the ballot.

(3) If the annexation petition is signed by all of the owners of
all land in the territory proposed to be annexed or is signed by a
majority of the electors registered in the territory proposed to be
annexed and by the owners of more than half of the land in the territory,
an election in the territory and district shall be dispensed with. After
the hearing on the petition, if the county board approves the petition as
presented or as modified or, if an election is held, if the electors
approve the annexation, the county board shall enter an order describing
the boundaries of the territory annexed and declaring it annexed to the
district. [1971 c.727 §35; 1987 c.818 §5] (1)
Notwithstanding ORS 198.750, 198.755, 198.760, 198.765, 198.775, 198.850
and 198.855, a parcel of land may be annexed to a district as provided in
this section.

(2) When the owner of a parcel of land wants to annex that land to
a district, the owner may file an annexation petition with the county
board. The petition shall declare that the petition is filed pursuant to
this section, state the name of the affected district and all affected
counties, indicate the principal Act of the affected district and be
signed by the owner of the parcel of land. Before the petition is filed
with the county board, the petition must be approved by indorsement
thereon by the board of the affected district and by any other agency
also required by the principal Act to indorse or approve the petition.

(3) If a petition filed under this section meets the requirements
of this section and is otherwise sufficient under the principal Act, the
county board shall set a date for a public hearing on the petition. The
hearing shall be held not sooner than 20 days nor later than 50 days
after the date on which the petition is filed. Written notice of the
hearing shall be mailed to the petitioner and to the board of the
affected district.

(4) At the time stated in the notice described in subsection (3) of
this section, the county board shall hold a public hearing to consider
the petition. When determining whether to approve the petition, the
county board shall consider the local comprehensive plan for the area and
any service agreement executed between a local government and the
affected district. If the petition is approved, the county board shall
enter an order describing the boundaries of the land and declaring the
land annexed to the district. [1999 c.392 §2] After the date of entry of an
order by the county board annexing territory to a district, the territory
annexed shall become subject to the outstanding indebtedness, bonded or
otherwise, of the district in like manner as the territory within the
district. [1971 c.727 §36]

     

(1) The governing body of a city may adopt a
resolution or motion to propose annexation to a district for the purpose
of receiving service from the district. Upon adoption of an annexation
proposal, the governing body of the city shall certify to the district
board a copy of the proposal.

(2) The district board shall approve or disapprove the city's
annexation proposal. If the district board approves the proposal, the
district board shall adopt an order or resolution to call an election in
the district unless otherwise provided in subsection (3) of this section.

(3) The district board is not required to call an election if:

(a) The population of the city is less than 20 percent of the
population of the district; or

(b) The entire boundary of the city is encompassed within the
boundary of the district.

(4) Notwithstanding subsection (3) of this section, if 10 percent
of the electors or 100 electors of the district, whichever is less, sign
and present to the county board a petition requesting an election, the
board shall call an election in the district. The petition shall be in
conformity, to the greatest extent practicable, with ORS 198.750,
198.760, 198.765 and 198.770.

(5) The order or resolution of the district board shall include the
applicable matters specified in ORS 198.745. In addition the order or
resolution may contain a plan for zoning or subdistricting the district
as enlarged by the annexation if the principal Act for the district
provides for election or representation by zone or subdistrict.

(6) The district board shall certify a copy of the resolution or
order to the governing body of the city.

(7) Upon receipt of the resolution or order of the district board,
the governing body of the city shall call an election in the city on the
date specified in the order or resolution of the district board.

(8) An election under this section shall be held on a date
specified in ORS 255.345 that is not sooner than the 90th day after the
date of the district order or resolution calling the election. [1983
c.142 §2 (enacted in lieu of 198.865); 1993 c.417 §1; 2003 c.219 §1](1) If the electors of the
city approve the annexation, the city governing body shall:

(a) Certify to the county board of the principal county for the
district the fact of the approval by the city electors of the proposal;
and

(b) Present the certificate to the district board.

(2) If the electors of the district approve the annexation, the
district board shall:

(a) Certify the results of the election; and

(b) Attach the certificate to the certificate of the city and
present both certificates to the county board.

(3) Upon receipt of the certificate of the city governing body and
the district board, the county board shall enter an order annexing the
territory included in the city to the district. When the county board
enters the order, the city territory, together with any territory
thereafter annexed to the city:

(a) Shall be included in the boundaries of the district; and

(b) Shall be subject to all liabilities of the district in the same
manner and to the same extent as other territory included in the
district. [1983 c.142 §3 (enacted in lieu of 198.865)]

     

A contract
between a district and a landowner relating to extraterritorial provision
of service and consent to eventual annexation of property of the
landowner shall be recorded and, when recorded, shall be binding on all
successors with an interest in that property. [1991 c.637 §2]Note: 198.869 was added to and made a part of 198.705 to 198.955 by
legislative action but was not added to ORS 198.510 to 198.915. See
Preface to Oregon Revised Statutes for further explanation.(Withdrawal) (1)(a)
When a plan for district improvements is adopted, or any time more than
two years after the date of formation of a district or after the date of
annexation of territory to a district if petitioner's property is located
within the territory annexed, an owner of land included in a district may
petition the county board for withdrawal of the property of the owner
from the district.

(b) If the electors of an area within a district wish to withdraw
from the district, they may file a petition with the county board.

(2) Petitioners shall cause notice of the petition filing to be
given in writing to the district secretary. Within five days after the
petition is filed, petitioners shall furnish the secretary with a copy of
the petition as filed.

(3) Except as provided by ORS 198.875, ORS 198.800 to 198.820 apply
to proceedings for withdrawal and to the rights, powers and duties of the
petitioners and other persons having an interest in the proceeding.

(4) The county board may approve the petition as presented or it
may adjust the boundaries and approve the petition. The petition shall be
approved if it has not been, or is not or would not be, feasible for the
territory described in the petition to receive service from the district.
The petition shall be denied if it appears that it is, or would be,
feasible for the territory described in the petition to receive service
from the district. [1971 c.727 §39] (1) At the time and place
set for the final hearing upon the withdrawal petition if the required
number of written requests for an election on the proposed withdrawal
have not been filed, the county board shall enter an order withdrawing
the described area from the district.

(2) If the required number of requests for an election are filed on
or before the final hearing, the county board shall call an election in
the district upon the question of the withdrawal of the area.

(3) If an election is called and a majority of the votes cast at
the election is in favor of the withdrawal of the designated area from
the district, the county board shall enter an order withdrawing the area
from the district. If the majority of the votes cast is against
withdrawal, the county board shall enter an order declaring the results
of the election. In either case, the county board shall cause a copy of
the order to be filed with the secretary of the district. [1971 c.727 §40] The described area withdrawn
shall, from the date of entry of the order, be free from assessments and
taxes levied thereafter by the district. However, the withdrawn area
shall remain subject to any bonded or other indebtedness existing at the
time of the order, except as provided by ORS 198.882. The proportionate
share shall be based on the assessed valuation, according to the
assessment roll in the year of the levy, of all the property contained in
the district immediately prior to the withdrawal. [1971 c.727 §41; 1977
c.663 §1](1) The governing body of a district shall relieve an
area withdrawn from the district from taxation for its proportionate
share of outstanding bonded or other indebtedness if:

(a) No district services have been provided to the withdrawn area;
and

(b) The area withdrawn does not exceed five percent of the
equalized assessed valuation of the taxable property within the entire
district prior to the withdrawal, as certified to the county assessor in
the tax year of the withdrawal.

(2) Notwithstanding subsection (1) of this section, if the total
unlimited taxing power of the district over the area not withdrawn from
the district does not wholly satisfy the bonded or other indebtedness
incurred prior to the withdrawal, the withdrawn territory shall be taxed
in an amount sufficient to satisfy its proportionate share of that
indebtedness. [1977 c.663 §3]Note: 198.882 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 198 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.

(Merger; Consolidation) (1) One district or more may
merge with another district if the merger is approved by the electors as
provided by ORS 198.895 to 198.915 or if it is approved by a local
government boundary commission as provided by ORS 199.480 (1)(c). The
districts included in the merger shall be considered annexed by and
absorbed into the surviving district.

(2) If the merger is approved, the district boards and officers of
the merging districts shall turn over to the board of the surviving
district all funds, property, contracts and records of the merging
districts. Upon the effective date of the merger, the surviving district
shall:

(a) Succeed to all the property, contracts, rights and powers of
the merging districts, and shall constitute and be a regularly organized
district as if originally organized in the manner provided by the
principal Act and ORS 198.705 to 198.955;

(b) Uncollected taxes, assessments or charges levied by the merging
districts shall become the property of the surviving district and upon
collection shall be credited to the account of the surviving district; and

(c) Subject to any debt distribution plan adopted under ORS
198.900, the surviving district shall become liable for all the
obligations, legal or contractual, of the merging districts.

(3) Districts providing potable water for domestic consumption,
sanitary sewer or surface water quality and quantity purposes under
separate principal Acts may merge as provided in this section. The
district designated as the surviving district shall have all powers held
by the other district under the principal Act of the other district.

(4) A county service district may merge with another district
providing different or similar services as provided in subsection (3) of
this section. When the county service district is not the surviving
district, the merging entities shall enter into an agreement concerning
elected representation on the board of the surviving district. The
agreement shall provide that no fewer than two members of the board of
the surviving district shall be appointed by the board of county
commissioners, acting as the governing body of the county service
district, to serve until replaced by individuals elected to the office at
the next regular district election.

(5) Subsections (3) and (4) of this section do not apply to water
authorities or sanitary authorities seeking to provide a different
water-related service if the entities that seek to merge with the
existing water authorities or sanitary authorities are within the urban
growth boundary of a city and the city provides water supply, wastewater
treatment or surface water management and treatment. When such entities
are within the urban growth boundary of a city, the merging entities must:

(a) Obtain consent for the merger from the city prior to calling an
election; or

(b) Comply with the formation process set forth in ORS 450.600.
[1971 c.727 §42; 1983 c.336 §22; 1997 c.590 §1] (1) Two or more
districts may consolidate and form a new district if the consolidation is
approved by the electors as provided by ORS 198.895 to 198.915 or if it
is approved by a local government boundary commission as provided by ORS
199.480 (1)(c). The districts included in the consolidation shall be
considered joined into a single new district.

(2) If the consolidation is approved, the district boards and
officers of the consolidating districts shall turn over to the board of
the successor district all funds, property, contracts and records of the
consolidating districts. Upon the effective date of the consolidation,
the successor district shall:

(a) Succeed to all the property, contracts, rights and powers of
the consolidating districts, and shall constitute and be a regularly
organized district as if originally organized in the manner provided by
the principal Act and ORS 198.705 to 198.955;

(b) Uncollected taxes, assessments or charges levied by the
consolidating districts shall become the property of the successor
district and upon collection shall be credited to the account of the
successor district; and

(c) Subject to any debt distribution plan adopted under ORS
198.900, the successor district shall become liable for all the
obligations, legal or contractual, of the consolidating districts.

(3) Districts providing potable water for domestic consumption,
sanitary sewer or surface water quality and quantity purposes under
separate principal Acts may consolidate as provided in this section. Upon
the effective date of the consolidation, the district designated as the
successor district shall have all powers held by the consolidating
districts under the principal Acts of all of the districts.

(4) A county service district may consolidate with another district
providing different or similar services as provided in subsection (3) of
this section. The consolidating entities shall enter into an agreement
that shall be binding on the successor district concerning elected
representation on the board of the successor district. The agreement
shall provide that no fewer than two members of the board of the
successor district shall be appointed by the board of county
commissioners, acting as the governing body of the county service
district, to serve until replaced by individuals elected to the office at
the next regular district election.

(5) Subsections (3) and (4) of this section do not apply to water
authorities or sanitary authorities seeking to provide a different
water-related service if the entities that seek to consolidate with the
existing water authorities or sanitary authorities are within the urban
growth boundary of a city and the city provides water supply, wastewater
treatment or surface water management and treatment. When such entities
are within the urban growth boundary of a city, the consolidating
entities must:

(a) Obtain consent for the consolidation from the city prior to
calling an election; or

(b) Comply with the formation procedures set forth in ORS 450.600.
[1971 c.727 §43; 1983 c.336 §23; 1997 c.590 §2](1) The electors of two or more
districts may initiate proceedings to merge or consolidate districts by
filing duplicate petitions with the boards of the districts to be merged
or consolidated. The petitions shall state the names of the affected
districts, and the name of the surviving or successor district and
whether the merger or consolidation must be approved by each district. If
the proposal may be approved by fewer than all affected districts and may
be effective only as to the approving districts, the petition shall so
specify.

(2) When proceedings have been initiated as provided in subsection
(1), (3), (4) or (5) of this section, and the districts or district and
city are subject to the jurisdiction of a local government boundary
commission, the initiating documents shall be filed with the boundary
commission as provided by ORS 199.476.

(3) If a proposed merger or consolidation initiated under
subsection (1) of this section includes a proposal to join a city to the
surviving or successor district, the electors of the districts and the
city also shall file a duplicate petition with the governing body of the
city. The signature requirements under ORS 198.755 applicable to a
district proposed to merge or consolidate are applicable to the city. A
petition under this subsection shall contain all the matters required to
be stated in the petition under subsection (1) of this section, except
that the petition also shall state:

(a) The name of the city proposed to join the surviving or
successor district; and

(b) Whether the merger or consolidation must be approved by each
district or city in order to be effective.

(4) The electors of one district and a city may initiate
proceedings to join the city to the district by filing duplicate
petitions with the board of the district and the governing body of the
city. The signature requirements under ORS 198.755 (4) applicable to a
district are applicable to the city. A petition under this subsection
shall contain the name of the district, the name of the city and shall
state that the proposal must be approved by the district and the city in
order to be effective.

(5) Merger or consolidation also may be initiated by resolution
adopted or approved by two or more district boards. If the merger or
consolidation under this subsection includes a proposal to join a city to
the surviving or successor district, the governing body of the city also
must adopt or approve a resolution. A resolution adopted or approved
under this subsection shall contain all the matters required to be stated
in a petition to merge or to consolidate. [1971 c.727 §44; 1983 c.142 §6;
1983 c.336 §24; 1985 c.263 §1] (1) A
petition for merger or consolidation may include a debt distribution plan
to be voted upon as a part of the proposal. The plan may provide for any
distribution of indebtedness and may require that merging or
consolidating districts and any city to be joined to the surviving or
successor district remain solely liable for all or any portion of any
indebtedness outstanding at the time of the merger or consolidation.

(2) If the merger or consolidation is approved, the district board
of the successor or surviving district shall, in accordance with the
plan, levy taxes and assessments for the liquidation of any prior
existing indebtedness. Such a levy shall be subject to the principal Act
of the consolidated or merged district. [1971 c.727 §45; 1983 c.142 §7]
The procedures and requirements regarding the preparation, circulation
and filing of a petition in a district under ORS 198.705 to 198.955 apply
to the preparation, circulation and filing of a petition in a city,
except that the duties of the secretary of the district board as
described in ORS 198.765 and 198.770 shall be performed by the elections
officer of the city. The governing body of a city shall perform the
duties of the district board in ORS 198.705 to 198.955 in regard to a
petition filed with the city. [1983 c.142 §9](1) When the governing body of each
affected district or city has received a petition under ORS 198.895
containing the required number of signatures or has adopted or approved a
resolution, the governing body of the affected entity having the largest
population according to the most recent federal decennial census shall
call a joint assembly of the governing bodies of the affected entities.
The governing body calling the joint assembly shall specify the time and
place of the assembly. The secretary of the governing body shall give
notice of the assembly to each member of the governing body of each
affected entity. The notice shall be given by certified mail.

(2) At the joint assembly, a majority of the members of each
governing body constitute a quorum for the transaction of business.

(3) The assembly, by a majority of all members present, shall adopt
an order calling an election in each affected entity. The order shall
include the matters specified in ORS 198.745.

(4) The order adopted by the assembly may include a plan for zoning
or subdistricting the surviving or successor district for the purpose of
nominating or electing members of its board if the principal Act for the
district provides for election or representation by zone or subdistrict.
The plan must describe the proposed boundaries of the zones or
subdistricts. If required by the principal Act, the plan also must
include a map of the proposed zone or subdistrict boundaries.

(5) If the merger or consolidation is initiated by petition and the
petition includes a debt distribution plan, the order adopted under this
section shall include that plan. [1983 c.142 §10; 1983 c.350 §7b] The governing body of
each affected entity shall meet separately not later than the fifth day
after receiving from the county clerk the abstract of the votes cast in
the entity in an election on consolidation or merger. At the meeting, the
governing body of the entity shall determine the result of the election
and certify the result to the governing body of each of the affected
entities. [1971 c.727 §46; 1983 c.142 §11](1) If the proposal for merger or
consolidation is approved by a majority of the votes cast in each
affected entity required for approval of the proposal, the governing body
of the affected entity with the largest population according to the most
recent federal decennial census shall call a joint meeting of the
governing bodies of the affected entities. The meeting shall be held at a
time and place designated by the governing body calling the meeting, not
later than 10 days after the canvass of the vote in the entity last
canvassed. The secretary of the entity calling the meeting shall give
notice of the time and place of the meeting to each member of the
governing body of each affected entity.

(2) At the joint meeting, a majority of the members of the
governing body of each affected entity constitute a quorum for the
transaction of business. The members so assembled shall from among the
members elect a number of persons consistent with the principal Act to
serve as board members of the surviving or successor district. The board
so elected shall immediately meet and organize as provided by the
principal Act and shall by resolution declare the districts merged or
consolidated and each affected city joined, as the case may be. From the
date of adoption of the resolution the merger or consolidation is
complete, and the city territory, together with any territory thereafter
annexed to the city, is included in the boundaries of the surviving or
successor district and shall be subject to all the liabilities of the
district in the same manner and to the same extent as other territory
included in the district.

(3) Of the persons elected under subsection (2) of this section to
serve as board members of the surviving or successor district, three
shall serve until June 30 following the next regular district election as
defined in ORS 255.005 and the remaining members shall serve until June
30 next following the second regular district election. However, if the
principal Act provides for a board of directors of three members for the
surviving or successor district, then two members shall serve until June
30 following the next regular district election as defined in ORS 255.005
and the remaining member shall serve until June 30 next following the
second regular district election. The terms of office of the members
shall be determined by lot. [1971 c.727 §47; 1983 c.142 §12; 1989 c.503
§1; 1993 c.424 §4]Notwithstanding ORS 198.910, when, at an election on
consolidation or merger, a majority of the votes cast in each affected
district is in favor of merger or consolidation or when merger or
consolidation of districts is approved by a final order of a local
government boundary commission, if two or more of the affected districts
each have 20 percent or more of the electors or owners of land within the
successor or surviving district, then each such affected district shall
be represented on the board elected under ORS 198.910 as follows:

(1) By one member when the percentage of electors or owners of land
in the affected district is at least 20 percent but less than 40 percent
of the electors or owners of land within the successor or surviving
district.

(2) By two members when the percentage of electors or owners of
land in the affected district is at least 40 percent but less than 60
percent of the electors or owners of land within the successor or
surviving district.

(3) By the number of board members remaining after apportionment of
board members under subsections (1) and (2) of this section when, among
all of the affected districts, the percentage of electors or owners of
land in the affected district is the highest percentage of electors or
owners of land within the successor or surviving district. [1997 c.590 §5]

     

At
the first regular election held in the surviving or successor district,
two or three district board members shall be elected as provided by ORS
198.910 (3). [1971 c.727 §48; 1993 c.424 §5]

(Dissolution) Dissolution of a district may be
initiated:

(1) By a petition of the electors requesting dissolution of the
district, filed with the county board.

(2) By resolution of the district board filed with the county board
when the district board determines that it is in the best interest of the
inhabitants of the district that the district be dissolved and liquidated.

(3) By resolution of the county board:

(a) If the district at the time of the regular district election
has not elected district board members, as required by the principal Act,
to fill vacancies on the district board; or

(b) If the territory within the district is uninhabited; and

(c) If in either case the county board determines that it is in the
best interest of the people of the county that the district be dissolved
and liquidated.

(4) Within five days after a petition is filed or a resolution of a
county board is adopted under this section, a copy shall be filed with
the district secretary, if any, or with any other district officer who
can with reasonable diligence be located.

(5) If there are no qualified district board members, the county
board shall act as or appoint a board of trustees to act in behalf of the
district. [1971 c.727 §49] (1) When dissolution
proceedings have been initiated, the district board shall make findings
of fact which shall include:

(a) The amount of each outstanding bond, coupon and other
indebtedness, with a general description of the indebtedness and the name
of the holder and owner of each, if known.

(b) A description of each parcel of real property and interest in
real property and, if the property was acquired for delinquent taxes or
assessments, the amount of such taxes and assessments on each parcel of
property.

(c) Uncollected taxes, assessments and charges levied by the
district and the amount upon each lot or tract of land.

(d) A description of the personal property and of all other assets
of the district.

(e) The estimated cost of dissolution.

(2) The district board shall propose a plan of dissolution and
liquidation.

(3) Within 30 days after initiation of the dissolution proceeding,
the findings of fact and the proposed plan of dissolution and liquidation
shall be filed in the office of the county clerk and shall be available
for inspection by any interested person. [1971 c.727 §50] The plan of
dissolution and liquidation may include provision for transfer and
conveyance of all assets of the district to any other district or, in the
case of a county service district, to the county in which the district is
located, which has the authority to and agrees to assume the outstanding
indebtedness of the dissolving district, if any, and to continue to
furnish similar services to the inhabitants of the district. [1971 c.727
§51; 1987 c.504 §8](1) When the district to be dissolved is within the jurisdiction
of a local government boundary commission, within 10 days after the
district board files the plan of dissolution and liquidation required by
ORS 198.925, the district board shall file the documents initiating
dissolution with the boundary commission in accordance with ORS 199.476.

(2) Within 10 days after the district board files the plan of
dissolution and liquidation required by ORS 198.925, and following
boundary commission approval if necessary, the district board shall call
an election for the purpose of submitting to the electors of the district
the question of whether the district shall be dissolved, its indebtedness
liquidated and its assets disposed of in accordance with the plan
proposed. The election shall be held on the next available election date
in ORS 255.345 for which the filing deadline can be met. No election
shall be called until the assent of all known holders of valid
indebtedness against the district is obtained or provision is made in the
plan for payment of the nonassenting holders. The notice of the election
shall contain a brief summary of the plan of dissolution and liquidation
and state that the plan of dissolution is available for examination at
the office of the county clerk. [1971 c.727 §52; 1979 c.316 §8; 1983
c.336 §25; 1987 c.707 §3; 1989 c.923 §5] The election required by ORS
198.935 shall be dispensed with and the county board shall declare the
district dissolved and proceed in accordance with ORS 198.945, if the
county board finds that:

(1) Dissolution is in the interest of the people of the county; and

(2) The territory within the affected district is uninhabited;

(3) The district has failed regularly to elect district board
members in accordance with the principal Act of the district; or

(4) For a county service district, dissolution is required due to
an absence of public need for continuation of the district, as provided
in ORS 451.620. [1971 c.727 §53; 1987 c.504 §9](1) Upon canvassing the vote after the
election, if it appears that a majority or more of the votes cast approve
dissolution, the district board shall declare the district dissolved. The
board shall thereupon constitute a board of trustees who shall pay the
debts or procure releases thereof and dispose of the property of the
district. If the dissolved district was located wholly within the limits
of one county, the board of the dissolving district may designate the
county board as the board of trustees for the purpose of winding up the
affairs of the district. If a majority of the votes cast at the election
is against dissolution, the district board shall declare the proposal
lost and cause the result of the vote to be made a part of the records of
the district. In either case, the results of the election shall be
certified to the county board immediately after the canvass of the vote.

(2) If dissolution is approved, after the affairs of the district
have been fully settled, all books and records of the district shall be
deposited by the board of trustees in the office of the county clerk of
the county. At the same time, the board of trustees shall execute under
oath, and file with the county board, a statement that the district has
been dissolved and its affairs liquidated. From the date of the
statement, the corporate existence of the district is terminated for all
purposes.

(3) If a majority of the votes cast are against dissolution, no
further election for dissolution shall be called by the board, upon
petition or upon a resolution of the board, prior to the expiration of
one year from the date of the election on dissolution. [1971 c.727 §54] The board of trustees
may convey to another district all assets of the dissolving district as
described by ORS 198.930:

(1) If the other district assumes all debts and obligations of the
dissolving district and undertakes to continue to furnish the service
provided by the dissolving district pursuant to the plan of dissolution
and liquidation; and

(2) If the consent of all the known holders of valid indebtedness
against the district has been obtained, or provision has been made in the
plan for payment of the nonassenting holders. [1971 c.727 §55] (1) Except as provided by ORS
198.950, any surplus funds remaining to the credit of the district, after
payment of the indebtedness of the district, shall be turned over to the
county treasurer. If the assets of the district are insufficient to pay
the indebtedness, the board of trustees shall levy taxes, within the
limits of the authority of the district, for the liquidation of such
indebtedness.

(2) Notwithstanding subsection (1) of this section, if the property
of a district is located within the corporate limits of a city, such
property shall, upon dissolution of the district, vest in the city in
which located and the property of the district lying outside the
corporate limits of any city shall vest in the county until the formation
of a city embracing such territory, at which time it shall vest in the
city.

(3) In each year that the county receives surplus funds to the
credit of the district under subsection (1) of this section, any funds in
the account of the district on June 30, in excess of $6,000 retained by
the county for administration, shall be certified to the county assessor
and shall be disposed of as provided under one of the following
paragraphs, as selected by the county assessor:

(a) Notwithstanding ORS 310.105, the funds may be offset against
that portion of the levies of taxing units levied against the property
values of property within the dissolved district. The method of offset
shall be further defined by rule of the Department of Revenue. If the
funds are offset as provided under this paragraph, the funds shall be
distributed to each taxing unit in the amount of that taxing unit's
offset.

(b) The amount may be credited to each property appearing on the
tax roll for the year for which the credit applies within the dissolved
district on the basis of current assessed value. If the surplus funds are
distributed under this paragraph, the surplus funds shall be deposited in
the unsegregated tax collections account established under ORS 311.385
and distributed in the same manner as other funds in that account. The
method to be used to credit the amount of the surplus shall be further
defined by rule of the Department of Revenue. [1971 c.727 §56; 1989 c.883
§1; 1991 c.459 §343]

     _______________
 
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