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 2082
A-Engrossed
House Bill 2789
Ordered by the House May 2
Including House Amendments dated May 2
Sponsored by Representative LEE (at the request of Oregon Water
Resources Congress)
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.
Modifies alternate method by which irrigation districts
{ - levy and collect assessments and - } bill and collect
{ + incurred + } charges.
A BILL FOR AN ACT
Relating to irrigation districts; creating new provisions;
amending ORS 545.482, 545.484, 545.494, 545.496, 545.498,
545.502, 545.504, 545.506, 545.507 and 545.508; and repealing
ORS 545.500.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 545.482 is amended to read:
545.482. The board of directors, by resolution, may provide for
the { - levy and collection of assessments and for the - }
billing and collection of { + incurred + } charges of the
district in the manner provided in ORS 545.482 to 545.508, in
lieu of the method provided for in ORS 545.381 to 545.397,
545.413 to 545.422 and 545.683.
{ - The resolution may apply to charges for operation and
maintenance, to assessments for construction or to other charges
payable to the United States or the State of Oregon under the
terms of the contracts of the district with the United States or
the State of Oregon. - } A resolution under this section may be
adopted either before or after the district has commenced to
deliver water through all or any part of its canal or
distribution system. If the consent of all the holders of
outstanding bonds of the district has been obtained, the
resolution may provide for the collection of { - all
assessments - } { + incurred charges + } for the purpose of
retiring bonds and payment of interest on the bonds, or any part
of the bonds.
SECTION 2. ORS 545.484 is amended to read:
545.484. { + (1) + } At least once in each year the board of
directors of an irrigation district that has provided for the
collection of its own { - charges and assessments - }
{ + incurred charges + } as provided by ORS 545.482 to 545.508,
by resolution, shall make a computation of the { - amounts - }
{ + total amount + } of money necessary to be raised by the
district { + for the ensuing year for the purpose of carrying
out the Irrigation District Law + }, including an allowance for
delinquencies in collections. When making the computation, the
board shall consider the amounts of money necessary for { + :
(a) + } The { - purpose of - } care, operation and
maintenance { - , repairs, - } { + of district facilities;
(b) Reasonable reserve funds for major maintenance, improvement
and replacement of capital improvements and facilities;
(c) The acquisition of land or water rights; + } { +
(d) + } Bond or interest payments, or payments due or to become
due to the United States or the State of Oregon under any
contract of the district with the United States or the State of
Oregon { - , - } { + ; + } or
{ + (e) + } Other expenses of the district.
{ + (2) The resolution shall fix the time when the incurred
charge becomes due and payable. The resolution shall also fix a
time, within one year after the date the incurred charge becomes
due and payable, after which the incurred charge becomes
delinquent.
(3) The amount determined by the board shall be apportioned by
the board to the lands owned or held by each person so that each
acre of land in the district that is entitled to irrigation is
required to pay the same amount, except as otherwise provided in
ORS 545.385, 545.387, 545.389, 545.391 and 545.487. Land owned by
a person constituting a fractional portion of an acre may be
rounded to the next higher whole acre.
(4) A district that provides drainage or other services to
lands that are not entitled to irrigation services from the
district may, at the discretion of the district's board of
directors, charge a different fee for the provision of those
services.
(5) The annual incurred charges established by the resolution
shall continue in effect from year to year until changed by a
resolution of the board of directors.
(6) A person is deemed to have requested water and other
services and improvements provided by the district if the person
signed a petition requesting the formation of an irrigation
district under ORS 545.025, requested that the land of the person
be included in the district pursuant to ORS 545.057 or paid an
incurred charge on or before the delinquency date fixed by the
resolution and the person has not:
(a) Excluded the land from the district pursuant to ORS
545.099;
(b) Transferred all water rights from the land pursuant to ORS
540.505 to 540.580 for the period of time that the incurred
charge was incurred; or
(c) Otherwise requested that water and other services and
improvements no longer be provided to the land.
(7) Notwithstanding subsection (3) of this section, if a person
was denied approval to transfer all water rights from the land
pursuant to ORS 540.523 or 540.530 or another provision for the
period of time that the incurred charge was incurred, the
district may assess an incurred charge against the person only if
the incurred charge is based on the actual quantity of water used
by the person. + }
SECTION 3. ORS 545.496 is amended to read:
545.496. (1) { - Charges and assessments - } { + Incurred
charges + } under ORS 545.482, 545.484 and 545.494 shall be
collected by the secretary of the district { - , and shall
become due and payable at such time and place as the board of
directors may determine. The board - } { + . The district + }
may withhold delivery of water from any tract of land until the
{ - charges and assessments - } { + incurred charges for the
current year and any prior years, including interest and lien and
collection costs and fees, + } are paid { + in full + }.
{ - The board may withhold delivery of water under this section
for charges and assessments for operation and maintenance,
repairs, construction, or other purposes. The board may withhold
delivery of water to any water user who is delinquent in the
payment of any charge or assessment for any purpose becoming due
in and for the year in which the water is desired, or in prior
years. - }
(2) If { - a charge or assessment - } { + an incurred
charge + }, or any installment of { - a charge or
assessment - } { + an incurred charge + }, under ORS 545.482,
545.484 and 545.494 is not paid when due, interest shall be
charged and collected on the { - charge or assessment - }
{ + incurred charge + } or installment at the rate of one and
one-third percent per month, or fraction of a month, until paid.
(3) If a notice of claim of lien has been filed under ORS
545.494, the costs of the filing and any costs of removing the
lien, including but not limited to recording and filing fees,
title search fees and a reasonable administrative fee, shall be
charged and collected { - at the time of payment under
subsection (1) of this section - } .
SECTION 4. ORS 545.502 is amended to read:
545.502. (1) At any time after the delinquency date fixed by
{ - the board of directors - } { + the resolution + } and
upon the filing of the notice of claim of lien under ORS 545.494,
the board by resolution may direct that all delinquent
{ - charges and assessments - } { + incurred charges + } then
unpaid { - , whether for operation and maintenance,
construction, bond or interest, or other purpose, - } shall be
foreclosed by the district. The foreclosure shall follow the
general procedure of a suit in equity { - , - } and
{ - shall - } be filed in the circuit court for the county in
which the land to be foreclosed is situated. If land in two or
more counties is to be foreclosed, separate proceedings shall be
commenced in each county as to the lands in that county. In
addition to such { - charges and assessments - } { + incurred
charges + } being foreclosed, the district may recover in the
suit the costs and disbursements and expenses of foreclosure,
including but not limited to recording and filing fees, title
search fees, foreclosure reports and a reasonable administrative
fee. Any number of tracts of land may be foreclosed in the same
suit, without regard to whether they are delinquent for the same
or different { - charges or assessments - } { + incurred
charges + }, or for the same or several years. The decree shall
order the sale of the property, fix the time for holding the
sale, which shall not be more than four weeks from the date of
the decree, and order the sheriff of the county to hold the sale
in the same manner as other foreclosure sales. The sheriff shall
give notice of the sale for two consecutive weeks prior to the
day of sale by publication of notice once each week in a
newspaper published in the county in which the land to be sold is
situated. The sheriff shall also post notices in three public and
conspicuous places within the county at least two weeks prior to
the day of sale. The irrigation district may be a bidder and
purchaser of the property at the sale. Upon sale of the property
the sheriff shall issue deed to the property immediately. No
right of redemption thereafter shall exist.
(2) The court may award reasonable attorney fees to the
prevailing party in a foreclosure action under this section.
SECTION 5. ORS 545.494 is amended to read:
545.494. (1) If any { - charge or assessment - }
{ + incurred charge + } remains unpaid beyond the due date of
the { - charge or assessment - } { + incurred charge + }, the
secretary of the district may file a notice of claim of lien with
the recording officer of the county of each county in which land
is situated which received or was entitled to receive the benefit
of the water delivery for which the { - charge or
assessment - } { + incurred charge + } has been made. The
notice of claim of lien shall be in writing and must contain:
(a) The name of the water user to whom the water was delivered
or was deliverable;
(b) A statement of the amount claimed past due; and
(c) A description of the land which received or was entitled to
receive the benefit of the water delivery sufficient for
identification.
(2) Upon filing of the notice, the { - charge or
assessment - } { + incurred charge and costs of filing and
removing the notice + }shall become a lien upon all lands
described in the notice in the amounts set forth opposite each
tract of land. The lien shall be prior to all encumbrances of
whatever kind or nature, whether executed before or after the
lien of the irrigation district is created, or whether recorded
or registered or not. The lien of the irrigation district upon
each tract of land shall be subject to all lawful taxes levied
and assessed for state and county purposes by the county in which
the land is located. The lien of the irrigation district shall
not be subject or inferior to any claim, lien or assessment of
any other taxing district, whenever levied, or whether extended
on the county tax rolls for collection or not.
SECTION 6. ORS 545.498 is amended to read:
545.498. Before handling or receiving any funds or collecting
any { - charges or assessments - } { + incurred charges + }
as provided in ORS 545.482 to 545.508, the secretary of the
district shall give a good and sufficient surety bond by an
authorized surety company, in an amount that the board of
directors may determine. The cost of the bond shall be paid by
the district. The bond shall be approved by the board and filed
in the office of the district. The amount of the bond may be
varied from time to time by order of the board.
SECTION 7. ORS 545.504 is amended to read:
545.504. At any time prior to sale, or at the time of sale, as
provided by ORS 545.502, the former owner, { - charge or
assessment - } { + incurred charge + } payer, or holder of
legal or equitable title or lien upon or to any tract of land
included in the foreclosure and decree may withdraw the tract of
land from the foreclosure and sale by paying the amount of the
lien foreclosed, together with the amount of state and county
taxes that the irrigation district may have paid, and a
proportionate amount of the costs incurred in the foreclosure
proceeding. If the payment is to be made prior to the decree, the
payment shall be tendered to the clerk of the court, together
with written appearance in the suit. If the payment is to be made
after the decree is entered, the payment shall be tendered to the
sheriff ordered to hold the sale. If payment is made before
decree, the tract shall be dismissed from the foreclosure
proceeding. If payment is made after decree, the district shall
issue satisfaction of lien to the former owner, { - charge or
assessment - } { + incurred charge + } payer, or holder of
legal or equitable title or lien upon the tract, and file the
satisfaction of lien for record.
SECTION 8. ORS 545.506 is amended to read:
545.506. At any time after any { - charge or assessment - }
{ + incurred charge + } on a tract of land under ORS 545.482 to
545.508 becomes delinquent, the irrigation district may pay any
state and county taxes that are due or delinquent on the tract of
land and add the amount paid to the lien of the district against
the tract.
SECTION 9. ORS 545.507 is amended to read:
545.507. When authorized by a resolution of its board of
directors, an irrigation district whose board of directors has
provided for the collection of { - charges and assessments - }
{ + incurred charges + } of the district in the manner provided
in ORS 545.482 to 545.508 may:
(1) Borrow moneys for payment of its operation and maintenance
costs and expenses in an amount not to exceed 50 percent of the
operation and maintenance charge per acre for each acre within
the district or the amount of its uncollected charges for
operation and maintenance, whichever is greater; and
(2) Issue and deliver as evidence of the indebtedness the
promissory notes of the district bearing interest. The promissory
notes shall be payable at such time as its board of directors
shall determine and may contain provisions for payment of the
attorney fees of the holder of the notes if suit or action is
commenced for the collection of the notes. The district may agree
that all or any part of the uncollected { - charges and
assessments - } { + incurred charges + } shall be applied in
payment of the promissory notes when collected.
SECTION 10. ORS 545.508 is amended to read:
545.508. Any irrigation district collecting { - charges and
assessments - } { + incurred charges + } as provided in ORS
545.482 to 545.508 shall deposit all moneys collected in such
banks as the board of directors may determine. The amounts
collected for operation and maintenance, construction, bond
principal, interest, or other purposes shall be kept in separate
funds and accounted for separately. Moneys in the funds shall be
paid out only upon order of the board by checks or drafts signed
by the president and secretary of the board.
SECTION 11. { + ORS 545.500 is repealed. + }
SECTION 12. { + The amendments to ORS 545.482, 545.484,
545.494, 545.496, 545.498, 545.502, 545.504, 545.506, 545.507 and
545.508 by sections 1 to 10 of this 2001 Act and the repeal of
ORS 545.500 by section 11 of this 2001 Act apply to fiscal years
beginning on or after the effective date of this 2001 Act. + }
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