71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 462-1
 
                         House Bill 2458
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Representative Kurt
  Schrader)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Modifies requirements for incorporation of city within
urbanized area. Eliminates authority of city within three miles
of proposed new city to prevent incorporation of new city.
 
                        A BILL FOR AN ACT
Relating to incorporation of cities; creating new provisions; and
  amending ORS 221.031.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 221.031 is amended to read:
  221.031. (1) Before circulating a petition to incorporate
unincorporated territory as a city, the petitioners shall file
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, a petition for incorporation in a form prescribed by rule
of the Secretary of State. If the economic feasibility statement
required by ORS 221.035 is submitted with the petition, the
county clerk shall immediately date and time stamp the
prospective petition and shall authorize the circulation of the
petition. The county clerk shall retain the prospective petition
and economic feasibility statement and shall immediately send two
copies of the prospective petition to the appropriate county
court.
  (2) A petition for incorporation filed with the county clerk
under subsection (1) of this section shall designate the name and
residence address of not more than three persons as chief
petitioners, who shall be electors registered within the
boundaries of the proposed city. The petition shall contain the
name of the proposed city. The petition shall also include a
proposed permanent rate limit for operating taxes that would
generate operating tax revenues sufficient to support an adequate
level of municipal services. 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 city is available. There
shall be attached to the cover sheet of the petition a map
indicating the exterior boundaries of the proposed city. The map
shall not exceed 14 inches by 17 inches in size and shall be used
in lieu of a metes and bounds or legal description of the
proposed city. If the territory proposed to be incorporated is
within the jurisdiction of a local government boundary
commission, the petition shall be accompanied by the economic
feasibility analysis required under ORS 199.476 (1).
Notwithstanding subsection (1) of this section, unless the
economic feasibility analysis is approved by the local government
boundary commission as provided in ORS 199.522, the county clerk
shall not authorize the circulation of the petition.
  (3) Each sheet of signatures shall be attached to a full and
correct copy of the petition for incorporation. Not more than 20
signatures on each sheet of the petition for incorporation shall
be counted. The circulator shall certify on each signature sheet
that the individuals signed the sheet in the presence of the
circulator and that the circulator believes each individual is an
elector registered in the county. If the territory proposed to be
incorporated is within the jurisdiction of a local government
boundary commission, each signature sheet shall contain a
statement that the economic feasibility analysis for the proposed
city was approved by the boundary commission, that the analysis
is available for inspection at the offices of the boundary
commission and that subsequent to the gathering of the petitions
the boundary commission must review and finally approve the
proposal prior to submission at an election.
    { - (4) When any of the area proposed to be incorporated lies
within an urbanized area, the petition required by subsections
(1) and (2) of this section, in addition to the requirements of
such subsections, and in order to be sufficient to allow for
calling a public hearing under ORS 221.040, shall meet one of the
following requirements: - }
    { - (a) Be accompanied by a resolution approving the proposed
incorporation adopted by the city or cities whose proximity would
otherwise prohibit incorporation; or - }
    { - (b) Be accompanied by an affidavit, signed by any person
requesting incorporation, stating that the city or cities whose
proximity would otherwise prohibit incorporation have failed to
take any action pursuant to the request within 120 days of its
submission. - }
  SECTION 2.  { + Section 3 of this 2001 Act is added to and made
a part of ORS 221.020 to 221.100. + }
  SECTION 3.  { + (1) As used in this section:
  (a) 'Neighboring city' means a city that has any part of its
territory situated within three miles of the area proposed to be
incorporated.
  (b) 'Rural unincorporated community' means a settlement that:
  (A) Is made up primarily of lands subject to an exception to
statewide planning goals related to agricultural lands or
forestlands;
  (B) Either was identified in the acknowledged comprehensive
plan of a county as a 'rural community,' 'service center, ' '
rural center,' 'resort community' or similar term before October
28, 1994, or is listed in the Department of Land Conservation and
Development's 'Survey of Oregon Unincorporated Communities'
(January 30, 1997);
  (C) Lies outside the urban growth boundary of any city; and
  (D) Is not incorporated as a city.
  (c) 'Urban reserve area' has the meaning given that term in ORS
195.145.
  (d) 'Urban services' has the meaning given that term in ORS
195.065.
  (2) When any of the area proposed to be incorporated as a city
lies within an urbanized area:
  (a) The area proposed to be incorporated must also be located
entirely within a designated rural unincorporated community or
other lands subject to an exception to statewide planning goals
related to agricultural lands or forestlands.
 
  (b) The petition required by ORS 221.031 must be accompanied by
an affidavit, signed by a chief petitioner, stating that:
  (A) Ten percent of the electors registered within the area
proposed for incorporation favor the incorporation; and
  (B) The chief petitioners have engaged the neighboring cities
in discussions concerning the effects of the proposed
incorporation, including discussions specifically relating to how
those cities and the proposed city will allow for expansion of
urban growth boundaries and, where applicable, for creation or
expansion of urban reserve areas.
  (c) The economic feasibility statement required by ORS 221.035
must:
  (A) Indicate that the proposed city must provide urban services
in a cost-effective manner at the minimum level adequate to meet
current needs and projected growth;
  (B) Contain a proposed permanent rate limit for operating taxes
to provide revenues for urban services; and
  (C) Indicate that the proposed city must plan for residential
development at or above the minimum urban residential density
established by rule of the Land Conservation and Development
Commission.
  (3) If the governing body of a neighboring city determines that
the proposed incorporation adversely affects that city, the
governing body may ask the county court with which the petition
for incorporation was filed to reject the petition and terminate
the incorporation proceedings. The objections by the city to the
incorporation shall be heard and considered by the county court
at a public hearing held under ORS 221.040.
  (4) If, at the hearing held under ORS 221.040, the county court
finds that any of the requirements of subsection (2) of this
section are not met or that the proposed incorporation will
adversely affect a neighboring city, the county court shall
provide by order for the termination of the incorporation
proceedings. The order shall contain the findings of the county
court relating to the proposed incorporation and the reasons for
terminating the incorporation proceedings.
  (5) In the manner provided in ORS 197.830 to 197.845, the Land
Use Board of Appeals shall review, upon the petition of a party
to the incorporation proceedings, the order of the county court
under subsection (4) of this section. + }
  SECTION 4.  { + Section 3 of this 2001 Act and the amendments
to ORS 221.031 by section 1 of this 2001 Act apply only to
petitions to incorporate unincorporated territory as a city that
are filed on or after the effective date of this 2001 Act. + }
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