Chapter 557 Oregon Laws 2001

AN ACT

HB 2978

Relating to public facilities strategy; creating new provisions; and amending ORS 197.768, 221.035 and 454.655.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 197.768 is amended to read:

197.768. (1) As used in this section, “special district” has the meaning given that term in ORS 197.505.

[(1)] (2)(a) A local government or special district may adopt a public facilities strategy [as described in subsection (2) of this section. A public facilities strategy may be implemented if it] if the public facilities strategy:

[(a)(A)] (A)(i) Is acknowledged under ORS 197.251; or

[(B)] (ii) Is approved by the Land Conservation and Development Commission under ORS 197.628 to 197.650; and

[(b)] (B) Meets the requirements of [subsection (2) of] this section.

(b) If a special district seeks to implement a public facilities strategy, that special district is considered a local government for the purposes of ORS 197.251 and 197.628 to 197.650.

[(2)] (3) A local government or special district may adopt a public facilities strategy [adopted under subsection (1) of this section shall] only if the local government or special district:

[(a) Include a statement of purpose that limits the public facilities strategy to situations in which clear and objective standards demonstrate that:]

[(A) There is a rapid increase in land development in a specific geographical area; and]

[(B) The total land development would exceed the planned or existing capacity of public facilities;]

[(b) Include a detailed description of actions and practices a local government may engage in to control the time and sequence of development approvals in response to the identified deficiencies in public facilities; and]

[(c) Set forth the procedures, notice and findings that allow the local government to proceed under this section.]

(a) Makes written findings justifying the need for the public facilities strategy;

(b) Holds a public hearing on the adoption of a public facilities strategy and the findings that support the adoption of the public facilities strategy; and

(c) Provides written notice to the Department of Land Conservation and Development at least 45 days prior to the final public hearing that is held to consider the adoption of the public facilities strategy.

(4) At a minimum, the findings under subsection (3) of this section must demonstrate that:

(a) There is a rapid increase in the rate or intensity of land development in a specific geographic area that was unanticipated at the time the original planning for that area was adopted or there has been a natural disaster or other catastrophic event in a specific geographic area;

(b) The total land development expected within the specific geographic area will exceed the planned or existing capacity of public facilities; and

(c) The public facilities strategy is structured to ensure that the necessary supply of housing and commercial and industrial facilities that will be impacted within the relevant geographic area is not unreasonably restricted by the adoption of the public facilities strategy.

(5) A public facilities strategy shall include a clear, objective and detailed description of actions and practices a local government or special district may engage in to control the time and sequence of development approvals in response to the identified deficiencies in public facilities.

(6) A public facilities strategy shall be effective for no more than 24 months after the date on which it is adopted, but may be extended, subject to subsection (7) of this section, provided the local government or special district adopting the public facilities strategy holds a public hearing on the proposed extension and adopts written findings that:

(a) Verify that the problem giving rise to the need for a public facilities strategy still exists;

(b) Demonstrate that reasonable progress is being made to alleviate the problem giving rise to the need for a public facilities strategy; and

(c) Set a specific duration for the extension of the public facilities strategy.

(7)(a) A local government or special district considering an extension of a public facilities strategy shall give the department notice at least 14 days prior to the date of the public hearing on the extension.

(b) A single extension may not exceed one year, and a public facilities strategy may not be extended more than three times.

SECTION 2. The amendments to ORS 197.768 by section 1 of this 2001 Act apply to public facilities strategies adopted before, on or after the effective date of this 2001 Act.

SECTION 3. ORS 221.035 is amended to read:

221.035. (1) If a person intends to file a petition for incorporation under ORS 221.031 (1), the person may file a notice of intent to prepare an economic feasibility statement with the county clerk of the county in which the proposed city lies or, should it lie in more than one county, to the county clerk of the county in which the largest part of its territory lies.

(2) When a petition for incorporation is filed under ORS 221.031 (1), an economic feasibility statement concerning the proposed city described in the petition shall also be filed with the county clerk. The economic feasibility statement shall be prepared by the persons designated as the chief petitioners and shall form the basis for the proposed permanent rate limit for operating taxes required by ORS 221.031 (2). The economic feasibility statement shall contain:

[(1)] (a) A description of the services and functions to be performed or provided by the proposed city;

[(2)] (b) An analysis of the relationship between those services and functions and other existing or needed government services; and

[(3)] (c) Proposed first and third year budgets for the new city demonstrating its economic feasibility.

SECTION 4. Section 5 of this 2001 Act is added to and made a part of ORS 221.020 to 221.100.

SECTION 5. For an area that includes a rural unincorporated community, as defined in section 2, chapter 132, Oregon Laws 2001 (Enrolled House Bill 2458), if a notice of intent to prepare an economic feasibility statement is filed under ORS 221.035 (1) or a petition for incorporation is filed under ORS 221.031 (1) before all or a part of the rural unincorporated community is included in the acknowledged urban growth boundary of a metropolitan service district organized under ORS chapter 268, the incorporation may continue under the statutory requirements that apply to the incorporation of a rural unincorporated community under section 2, chapter 132, Oregon Laws 2001 (Enrolled House Bill 2458). However, the area proposed to be incorporated may include any lands that are included in the acknowledged urban growth boundary.

SECTION 6. ORS 454.655 is amended to read:

454.655. (1) Except as otherwise provided in ORS 454.675, without first obtaining a permit from the Department of Environmental Quality, no person shall construct or install a subsurface sewage disposal system, alternative sewage disposal system or part thereof. However, a person may undertake emergency repairs limited to replacing minor broken components of the system without first obtaining a permit.

(2) A permit required by subsection (1) of this section shall be issued only in the name of an owner or contract purchaser in possession of the land. However, a permit issued to an owner or contract purchaser carries the condition that the owner or purchaser or regular employees or a person licensed under ORS 454.695 perform all labor in connection with the construction of the subsurface or alternative sewage disposal system.

(3) The applications for a permit required by this section must be accompanied by the permit fees prescribed in ORS 454.745.

(4) After receipt of an application and all requisite fees, subject to ORS 454.685, the department shall issue a permit if it finds that the proposed construction will be in accordance with the rules of the Environmental Quality Commission. [No] A permit [shall] may not be issued if a community or area-wide sewerage system is available which will satisfactorily accommodate the proposed sewage discharge. The prohibition on the issuance of a permit in this subsection does not apply to a public agency as defined in ORS 454.430.

(5)(a) Unless weather conditions or distance and unavailability of transportation prevent the issuance of a permit within 20 days of the receipt of the application and fees by the department, the department shall issue or deny the permit within 20 days after such date. If such conditions prevent issuance or denial within 20 days, the department shall notify the applicant in writing of the reason for the delay and shall issue or deny the permit within 60 days after such notification.

(b) If within 20 days of the date of the application the department fails to issue or deny the permit or to give notice of conditions preventing such issuance or denial, the permit shall be considered to have been issued.

(c) If within 60 days of the date of the notification referred to in paragraph (a) of this subsection, the department fails to issue or deny the permit, the permit shall be considered to have been issued.

(6) Upon request of any person, the department may issue a report, described in ORS 454.755 (1), of evaluation of site suitability for installation of a subsurface or alternative sewage disposal system or nonwater-carried sewage disposal facility. The application for such report must be accompanied by the fees prescribed in ORS 454.755.

(7) With respect to an application for a permit for the construction and installation of a septic tank and necessary effluent sewer and absorption facility for a single family residence or for a farm related activity on a parcel of 10 acres or more described in the application by the owner or contract purchaser of the parcel, the Department of Environmental Quality:

(a) Within the period allowed by subsection (5)(a) of this section after receipt by it of the application, shall issue the permit or deliver to the applicant a notice of intent to deny the issuance of the permit;

(b) In any notice of intent to deny an application, shall specify the reasons for the intended denial based upon the rules of the Environmental Quality Commission for the construction and installation of a septic tank and necessary effluent sewer and absorption facility or based upon the factors included in ORS 454.685 (2)(a) to (j);

(c) Upon request of the applicant, shall conduct a hearing in the manner provided in ORS 454.635 (4) and (5) on the reasons specified in a notice of intent to deny the application with the burden of proof upon the department to justify the reasons specified; and

(d) In the case of issuance of a permit, may include as a condition of the permit that no other permit for a subsurface sewage disposal system or alternative sewage disposal system shall be issued for use on the described parcel while the approved septic tank, effluent sewer and absorption facility are in use on the described parcel.

Approved by the Governor June 22, 2001

Filed in the office of Secretary of State June 25, 2001

Effective date January 1, 2002

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