Chapter
802
AN ACT
HB 2278
Relating to public bodies; creating new provisions; amending ORS 174.116, 223.001, 223.127, 223.208, 223.210, 223.215, 223.225, 223.235, 223.245, 223.260, 223.262, 223.265, 223.270, 223.275, 223.280, 223.285, 223.297, 223.299, 223.301, 223.302, 223.304, 223.307, 223.309, 223.311, 223.313, 223.317, 223.327, 223.389, 223.391, 223.393, 223.399, 223.430, 223.450, 223.455, 223.485, 223.505, 223.510, 223.515, 223.520, 223.530, 223.545, 223.565, 223.575, 223.593, 223.594, 223.610, 223.615, 223.625, 223.640, 223.645, 223.705, 223.710, 223.715, 223.720, 223.725, 223.735, 223.745, 223.750, 223.755, 223.765, 223.770, 223.775, 236.610, 238.225, 261.010, 261.030, 261.035, 261.105, 261.110, 261.141, 261.171, 261.180, 261.200, 261.215, 261.253, 261.305, 261.310, 261.315, 261.330, 264.110, 264.240, 264.250, 264.260, 264.310, 264.340, 264.348, 265.010, 265.140, 267.200, 267.225, 267.550, 267.560, 268.020, 268.300, 268.393, 285A.603, 285A.654, 285A.657, 285A.666, 310.140, 357.261, 371.060, 371.067, 371.105, 371.305, 371.336, 371.405, 371.480, 371.485, 371.520, 371.655, 372.140, 401.842, 440.320, 440.360, 440.370, 440.505, 450.075, 450.160, 450.693, 450.695, 450.817, 450.835, 450.875, 451.410, 451.485, 451.520, 478.300, 478.990, 523.030, 523.050, 523.130, 523.240, 543.660, 545.057, 545.257, 547.045, 552.113, 552.305, 552.320, 553.010, 553.090, 553.110, 553.250, 553.710, 565.275, 568.210, 568.225, 568.410, 568.805, 705.105, 705.135, 731.042, 731.288, 732.528, 744.056, 744.531, 744.626, 748.601, 748.603, 750.055, 750.705, 777.005, 777.010, 777.112, 777.113, 778.010 and 838.035 and section 19, chapter 607, Oregon Laws 1987; and repealing ORS 731.032.
Be It Enacted by the People of the State of
DEFINITION OF LOCAL SERVICE DISTRICT
SECTION 1. ORS 174.116 is amended to read:
174.116. (1)(a) Subject to ORS 174.108, as used in the statutes of this state “local government” means all cities, counties and local service districts located in this state, and all administrative subdivisions of those cities, counties and local service districts.
(b) Subject to ORS 174.108, as used in the statutes of this state “local government” includes:
(A) An entity created by statute, ordinance or resolution for the purpose of giving advice only to a local government;
(B) An entity created by local government for the purpose of giving advice to local government and that is not created by ordinance or resolution, if the document creating the entity indicates that the entity is a public body; and
(C) Any entity created by local government other than an entity described in subparagraph (B) of this paragraph, unless the ordinance, resolution or other document creating the entity indicates that the entity is not a governmental entity or the entity is not subject to any substantial control by local government.
(2) Subject to ORS 174.108, as used in the statutes of this state “local service district” means:
(a) An economic improvement district created under ORS 223.112 to 223.132 or 223.141 to 223.161.
(b) A people’s utility district organized under ORS chapter 261.
(c) A domestic water supply district organized under ORS chapter 264.
(d) A cemetery maintenance district organized under ORS chapter 265.
(e) A park and recreation district organized under ORS chapter 266.
(f) A mass transit district organized under ORS 267.010 to 267.390.
(g) A transportation district organized under ORS 267.510 to 267.650.
(h) A metropolitan service district organized under ORS chapter 268.
(i) A translator district organized under ORS 354.605 to 354.715.
(j) A library district organized under ORS 357.216 to 357.286.
(k) A county road district organized under ORS 371.055 to 371.110.
(L) A special road district organized under ORS 371.305 to 371.360.
(m) A road assessment district organized under ORS 371.405 to 371.535.
(n) A highway lighting district organized under ORS chapter 372.
(o) A
(p) A health district organized under ORS 440.305 to 440.410.
(q) A sanitary district organized under ORS 450.005 to 450.245.
(r) A sanitary authority, water authority or joint water and sanitary authority organized under ORS 450.600 to 450.989.
(s) A county service district organized under ORS chapter 451.
(t) A vector control district organized under ORS 452.020 to 452.170.
(u) A rural fire protection district organized under ORS chapter 478.
(v) A geothermal heating district organized under ORS chapter 523.
(w) An irrigation district organized under ORS chapter 545.
(x) A drainage district organized under ORS chapter 547.
(y) A diking district organized under ORS chapter 551.
(z) A water improvement district organized under ORS chapter 552.
(aa) A water control district organized under ORS chapter 553.
(bb) A district improvement company or a district improvement corporation organized under ORS chapter 554.
(cc) A weather modification district organized under ORS 558.200 to 558.440.
(dd) A fair district formed under ORS chapter 565.
[(dd)] (ee) A soil and water conservation district organized under ORS 568.210 to 568.808 and 568.900 to 568.933.
[(ee)] (ff) A weed control district organized under ORS 570.505 to 570.575.
[(ff)] (gg) A port organized under ORS 777.005 to 777.725 and 777.915 to 777.953.
[(gg)] (hh) The
(ii) An airport district established under ORS chapter 838.
SECTION 1a. Local service districts, as defined by ORS 174.116, are municipal corporations.
ECONOMIC IMPROVEMENT DISTRICTS
SECTION 2. ORS 223.001 is amended to read:
223.001. As used in ORS 223.112 to 223.132, 223.205 to 223.295, 223.297 to 223.314, 223.317 to 223.327, 223.387 to 223.399, 223.405 to 223.485, 223.505 to 223.595, 223.605 to 223.650, 223.705 to 223.755, 223.765, 223.770, 223.775 and 223.805 to 223.845, unless the context requires otherwise:
(1) “Actual cost” has the meaning given the term under ORS 310.140.
(2) “Capital construction project” means a project for “capital construction,” as defined under ORS 310.140.
(3)(a) “Estimated assessment” means, with respect to each property to be assessed in connection with a local improvement, the total assessment that, at the time of giving notice of the assessment and the right to object or remonstrate, the [governmental unit] local government estimates will be levied against the property following completion of the local improvement. The estimate shall be based on the [governmental unit’s] local government’s estimate at that time of the actual costs of the local improvement and the proposed formula for apportioning the actual costs to the property.
(b) “Estimated assessment” shall be determined by:
(A) Excluding from estimated actual costs the estimated financing costs associated with any bonds issued to accommodate the payment of the assessment in installments; and
(B) Including in estimated actual costs the estimated financing costs associated with interim financing of the local improvement.
(4) “Final assessment” means, with respect to each property to be assessed in connection with a local improvement, the total assessment levied against the property following completion of the local improvement. The total assessment shall be based on the actual costs of the local improvement and the formula for apportioning the actual costs to the property.
(5)(a) “Financing” means all costs necessary or attributable to acquiring and preserving interim or permanent financing of a local improvement.
(b) The costs of financing may include the salaries, wages and benefits payable to employees of the [governmental unit] local government to the extent the same are reasonably allocable to the work or services performed by the employees in connection with the financing of a local improvement or any part thereof. However, as a condition to inclusion of any salaries, wages or benefits payable to employees of a [governmental unit] local government as financing costs of a local improvement or any part thereof, the [governmental unit] local government shall establish a record keeping system to track the actual work done or services performed by each employee on or in connection with such local improvement.
(c) Financing costs that are to be incurred after the levy of a final assessment may be included in the final assessment based on the [governmental unit’s] local government’s reasonable estimate of the financing costs if the [governmental unit] local government first documents the basis for the estimate and makes the documentation available to interested persons on request.
(6) “Governing body” means the council, commission, board or other controlling body, however designated, in which the legislative powers of a [governmental unit] local government are vested.
[(7) “Governmental unit” means a city, county, district as described under ORS 198.010 or 198.180, or any other municipal, quasi-municipal or public corporation with authority to undertake the acquisition, construction, reconstruction, repair, betterment or extension of a local improvement but does not include a common or union high school district, education service district, community college district, community college service district or other unit providing public elementary, secondary or post-secondary education, or any combination thereof.]
[(8)] (7) “Installment application” means an application filed by a property owner to have a final assessment paid in installments over a period of years.
(8) “Local government” means a local government as defined in ORS 174.116 that has authority to undertake the acquisition, construction, reconstruction, repair, betterment or extension of a local improvement.
(9) “Local improvement” has the meaning given the term under ORS 310.140.
(10) “
(11) “Owner” means the owner of the title to real property or the contract purchaser of real property of record as shown on the last available complete assessment roll in the office of the county assessor.
(12) “Recorder” means the auditor, recorder, clerk or other person or officer of a [governmental unit] local government serving as clerk of the [governmental unit] local government or performing the clerical work of the [governmental unit] local government, or other official or employee as the governing body of a [governmental unit] local government shall designate to act as recorder.
(13) “Structure” has the meaning given the term under ORS 310.140.
(14) “Treasurer” means the [governmental unit] elected or appointed official of a local government, however designated, charged by law with the responsibility for acting as custodian of and investment officer for the public moneys of the [governmental unit] local government.
SECTION 3. ORS 223.127 is amended to read:
223.127. (1) ORS 223.387 and 223.391 to 223.395 apply to economic improvement districts created by a city in accordance with ORS 223.112 to 223.132.
(2) The rights and duties accorded [governmental units] local governments and the owners of property for financing assessments under ORS 223.205 and 223.210 to 223.295 apply to assessments levied upon property in an economic improvement district for financing all or part of the cost of an economic improvement.
SECTION 4. ORS 223.208 is amended to read:
223.208. (1) Subject to subsection (2) of this section, the rights and duties accorded [governmental units] local governments and the owners of property for financing and assessments under ORS 223.205 to 223.775 shall apply to the following:
(a) A system development charge designed to finance the purchase or development of a public park or recreational facility or the construction, extension or enlargement of a street, community water supply, storm sewer or sewerage or disposal system as defined in ORS 199.464 imposed by a [governmental unit] local government as a condition to issuance of any occupancy permit or imposed by a [governmental unit] local government at such other time as, by ordinance, it may determine.
(b) That portion of a connection charge imposed by a [governmental unit which] local government that is greater than the amount necessary to reimburse the [unit] local government for its costs of inspection and installing connections with system mains.
(2) Notwithstanding ORS 223.230, the financing of system development or connection charges under this section may, at the option of the governing body, be a second lien on real property, which lien shall be inferior only to the mortgage or other security interest held by the lender of the owner’s purchase money. Bonds issued under this subsection shall be issued separately from bonds otherwise issued under ORS 223.205 to 223.775 and shall comply with all applicable federal regulations.
SECTION 5. ORS 223.210 is amended to read:
223.210. (1) If the governing body of a [governmental unit] local government has proceeded to cause any local improvement to be constructed or made within the corporate limits of the [unit] local government, and has determined the final assessment for the local improvement against the property benefited thereby or liable therefor, according to applicable law, the [governmental unit] local government shall cause notice of the final assessment to be published. The notice shall identify the local improvement for which the assessment is to be made, each lot to be assessed and the final assessment for each lot. In addition, the notice shall state that the owner of any property to be assessed shall have the right to make application to the [governmental unit] local government for payment of the final assessment in installments as provided in this section. A copy of the notice shall be mailed or personally delivered to the owner of each lot to be assessed.
(2) The owner of any property to be so assessed, at any time within 10 days after notice of final assessment is first published, may file with the recorder a written application to pay:
(a) The whole of the final assessment in installments; or
(b) If part of the final assessment has been paid, the unpaid balance of the assessment in installments.
(3) At the option of the [governmental unit] local government, an installment application may be filed more than 10 days after notice of the final assessment is first published.
SECTION 6. ORS 223.215 is amended to read:
223.215. (1)(a) The installment application shall state that the applicant does thereby waive all irregularities or defects, jurisdictional or otherwise, in the proceedings to cause the local improvement for which the final assessment is levied and in the apportionment of the actual cost of the local improvement.
(b) The application shall provide that the applicant agrees to pay the final assessment over a period of not less than 10 years nor more than 30 years and according to such terms as the governing body of the [governmental unit] local government may provide. The governing body may provide that the owner of the assessed property may elect to have the final assessment payable over a period of less than 10 years and according to such terms as the governing body may provide.
(c) The application shall also provide that the applicant acknowledges and agrees to pay interest at the rate provided by the governing body of the [governmental unit] local government on all unpaid assessments, together with an amount, determined by the governing body, sufficient to pay a proportionate part of the cost of administering the bond assessment program and issuing the bonds authorized under ORS 223.235, including but not limited to legal, printing and consultant’s fees.
(d) The application shall also contain a statement, by lots or blocks, or other convenient description, of the property of the applicant assessed for the improvement.
(2) In connection with the final assessments for any local improvement, the governing body of the [governmental unit] local government may establish a procedure by which an owner of any property to be assessed may irrevocably elect in writing to have the final assessment levied for a number of years less than 10, which shall be determined by the governing body. The written election shall:
(a) Be signed by the owner or a duly authorized representative of the owner;
(b) Contain a description of the assessed property and the local improvement for which the assessment is made; and
(c) Contain a statement by the owner acknowledging that the improvement is a local improvement as described under ORS 223.001 (9), that payment of the final assessment against the properties benefited by the local improvement plus interest may be spread over at least 10 years and that, notwithstanding any provision of law, the owner consents to make payments over a period of less than 10 years and to have the assessment levied on the benefited property accordingly.
(3) The election under subsection (2) of this section shall be recorded in the bond lien docket for the local improvement to which the assessment relates. From and after the time at which the written election is so recorded, it shall be valid and binding upon all subsequent owners of the property or any part thereof.
SECTION 7. ORS 223.225 is amended to read:
223.225. The recorder of the [governmental unit] local government shall:
(1) Keep all applications filed under ORS 223.210 in convenient form for examination. The applications received for each local improvement shall be separate.
(2) Enter in a book kept for that purpose, under separate heads for each local improvement, the date of filing of each application, the name of the applicant, a description of the property and the amount of the final assessment, as shown in the application.
SECTION 8. ORS 223.235 is amended to read:
223.235. (1) When in any [governmental unit] local government a bond lien docket is made up, as provided in ORS 223.230, as to the final assessments for any local improvement, the [governmental unit] local government shall by ordinance or resolution of the governing body authorize the issue of its bonds pursuant to the applicable provisions of ORS chapter 288 and in accordance with this section.
(2) The bonds authorized to be issued under this section shall be issued in an amount that does not exceed the unpaid balance of all final assessments for the related local improvements, plus the amounts necessary to fund any debt service reserve and to pay any other financing costs associated with the bonds.
(3)(a) If the question of the issuance of the specific bonds has been approved by the electors of the [governmental unit] local government and the bonds are issued as general obligation bonds, the [governmental unit] local government shall each year assess, levy and collect a tax on all taxable property within its boundaries. The amount of the tax shall be sufficient to pay all principal of and interest on the bonds that are due and payable in that year and to replenish any debt service reserves required for the bonds. In computing the amount of taxes to impose, the [governmental unit] local government shall deduct from the total amount otherwise required the amount of final installment payments which are pledged to the payment of the bonds and which are due and payable in that year, and shall add to this net amount the amount of reasonably anticipated delinquencies in the payments of the installments or the taxes.
(b) The taxes shall be levied in each year and returned to the county officer whose duty it is to extend the tax roll within the time and in the manner provided in ORS 310.060.
(c) The taxes shall become payable at the same time and be collected by the same officer who collects county taxes and shall be turned over to the [governmental unit] local government according to law.
(d) The county officer whose duty it is to extend the county levy shall extend the levy of the [governmental unit] local government in the same manner as city taxes are extended. Property shall be subject to sale for nonpayment of the taxes levied by a [governmental unit] local government in like manner and with like effect as in the case of county and state taxes.
(4) If the question of the issuance of the specific bonds has not been approved by the electors of the [governmental unit] local government and the bonds are issued as limited tax obligation bonds, the [governmental unit] local government may, subject only to the limitations of section 11b (1), Article XI of the Oregon Constitution, calculate, assess, levy and collect a tax on all taxable property within its boundaries in the manner provided in subsection (3) of this section. The amount of such tax shall be sufficient to pay all principal of and interest on such bonds which is due and payable in that year and to replenish any debt service reserves required for such bonds, provided that if such bonds are issued as limited tax obligation bonds the amount of such tax shall not exceed the amount permitted under section 11b (1), Article XI of the Oregon Constitution.
(5)(a) All bonds issued pursuant to this section, including general obligation bonds, shall be secured by and be payable from the installments of final assessments with respect to which the bonds were issued.
(b) In the ordinance or resolution authorizing the issuance of the bonds, the governing body of the issuing [governmental unit] local government may:
(A) Provide that installments of final assessments levied with respect to two or more local improvements shall secure a single issue of bonds.
(B) Reserve the right to pledge, as security for any bonds thereafter issued pursuant to this section, any installments of final assessments previously pledged as security for other bonds issued pursuant to this section.
(c) All bonds shall be secured by a lien on the installments of final assessments with respect to which they were issued. The lien shall be valid, binding and fully perfected from the date of issuance of the bonds. The installments of final assessments shall be immediately subject to the lien without the physical delivery thereof, the filing of any notice or any further act. The lien shall be valid, binding and fully perfected against all persons having claims of any kind against the [governmental unit] local government or the property assessed whether in tort, contract or otherwise, and irrespective of whether such persons have notice of the lien.
(6) As additional security for any bonds issued under this section, including general obligation bonds, the governing body of the issuing [governmental unit] local government may pledge or mortgage, or grant security interests in, its revenues, assets and properties, and otherwise secure and enter into covenant with respect to the bonds, as provided in ORS 288.155.
(7)(a) A [governmental unit] local government shall have the power, at any time and from time to time after the undertaking of a local improvement has been authorized, to borrow money and issue and sell notes for the purpose of providing interim financing for the actual costs of the local improvement.
(b) Notes authorized under this subsection may be issued in a single series for the purpose of providing interim financing for two or more local improvements.
(c) Notes authorized under this subsection shall mature not later than one year after the date upon which the issuing [governmental unit] local government expects to issue bonds for the purpose of providing permanent financing with respect to installment payments of the final assessments for the local improvements.
(d) Any notes authorized under this subsection may be refunded from time to time by the issuance of additional notes or out of the proceeds of bonds issued pursuant to this section. The notes may be made payable from the proceeds of any bonds to be issued under this section to provide permanent financing or from any other sources from which the bonds are payable.
(e) The governing body of the issuing [governmental unit] local government may pledge to the payment of the notes any revenues [which] that may be pledged to the payment of bonds authorized to be issued under this section with respect to the local improvements for which the notes provide interim financing.
SECTION 9. ORS 223.245 is amended to read:
223.245. The interest on the bonds and the amounts of the installments of maturing bonds shall be included in the annual budget of the issuing [governmental unit] local government. There shall be deducted in the budget the amount that the governing body conservatively estimates will be received from payments of the principal of and interest on installments of final assessments appertaining to the particular bond issue, and from receipts from sales and rentals of property acquired by the [governmental unit] local government pursuant to the assessments, during the fiscal year.
SECTION 10. ORS 223.260 is amended to read:
223.260. (1) The proceeds of any bonds or notes authorized to be issued under ORS 223.235 shall be paid by the purchaser to the treasurer of the issuing [governmental unit] local government. Accrued interest and any premium may be credited to any account designated by the issuing [governmental unit] local government. The balance of the proceeds shall be credited to the local improvement fund or funds for which the bonds or notes are issued.
(2) A [governmental unit] local government may create, within the Bancroft Bond Redemption Fund maintained by the [governmental unit] local government as required by ORS 223.285, separate accounts for separate issues of bonds or notes issued as provided in ORS 223.235, and may pledge any amounts deposited in the separate accounts to specific issues of bonds or notes without pledging the amounts to any other issues of such bonds or notes.
SECTION 11. ORS 223.262 is amended to read:
223.262. (1) As used in ORS 223.205 and 223.210 to 223.295:
(a) “Assessment contract” means the obligation to pay final assessments in installments that arise when a property owner submits an application to pay assessments in installments under ORS 223.210 or a similar provision of a local charter.
(b) “Assessment contract rights” includes the right to receive installment payments of final assessments, with interest, made under an assessment contract, and the right to enforce the lien of the final assessment.
(2) Any [governmental unit] local government that receives or expects to receive assessment contracts may:
(a) Sell or assign to third parties all or any portion of its assessment contract rights.
(b) Create corporations or other business entities to factor assessment contract rights.
(c) Create grantor trusts and transfer to the trusts assessment contract rights.
(d) Contract to service assessment contracts and assessment liens for the owners of assessment contract rights, or contract with third parties to service assessment contracts and assessment liens for the owners of assessment contract rights.
(e) Serve as a trustee for the owners of assessment contract rights.
(f) Enter into contracts necessary to carry out the provisions of this section.
(3) Any trust created under this section may fractionalize and sell assessment contract rights.
(4) Assessment contract rights, any interests therein and any interests in trusts secured primarily by assessment contract rights shall be exempt from registration under ORS 59.055.
(5) If assessment contract rights that secure outstanding obligations of a [governmental unit] local government are sold or assigned under this section, an amount shall be placed irrevocably in escrow that is calculated to be sufficient to pay all principal and interest on the outstanding obligations as they mature or are irrevocably called for prior redemption, in accordance with ORS 288.677. Any sale proceeds not required to fund the escrow may be placed in the general fund of the [governmental unit] local government. If only a portion of the contract rights securing outstanding obligations is sold, then the amount of outstanding obligations that must be defeased pursuant to this subsection shall be that proportion of the principal amount of the outstanding obligations that the principal amount of the contract rights that are sold represents to the total principal amount of the contract rights that secure the outstanding obligations.
SECTION 12. ORS 223.265 is amended to read:
223.265. (1) The installments due and payable under an assessment contract shall be due and payable periodically as the governing body of the [governmental unit] local government shall determine but shall not be due and payable over a term in excess of 30 years. Each installment is due and payable with interest as described under subsection (3) of this section.
(2) The installments and interest are payable to the treasurer by the property owner whose application to pay the cost of the local improvement by installments has been filed as provided in ORS 223.210.
(3) The amount of each installment (percentage of the total final assessment) shall be determined by the governing body of the [governmental unit] local government and shall be as appears by the bond lien docket described in ORS 223.230. Each installment shall be due and payable with the accrued and unpaid interest on the unpaid balance of the final assessment amount at the rate per annum determined by the governing body of the [governmental unit] local government under ORS 223.215.
(4) The first payment shall be due and payable on the date that the governing body shall determine, and subsequent payments shall be due and payable on subsequent periodic dates thereafter as shall have been determined by the governing body.
SECTION 13. ORS 223.270 is amended to read:
223.270. (1) If the owner neglects or refuses to pay installments under ORS 223.265 as they become due and payable for a period of one year, then the governing body of the [governmental unit] local government may, by reason of the neglect or refusal to pay the installments, and while the neglect and refusal to pay continues, pass a resolution:
(a) Giving the name of the owner then in default in the payment of the sums due;
(b) Stating the sums due, either principal or interest and any unpaid late payment penalties or charges;
(c) Containing a description of the property upon which the sums are owing; and
(d) Declaring the whole sum, both principal and interest, due and payable at once.
(2) The governing body may then proceed at once to collect all unpaid installments and to enforce collection thereof, with all unpaid late payment penalties and charges added thereto, in the same manner in which delinquent property taxes are collected under applicable law or, in the case of a city, in the same manner as street and sewer assessments are collected pursuant to the terms of the city charter.
SECTION 14. ORS 223.275 is amended to read:
223.275. The recorder of a [governmental unit] local government shall, when installments and interest on any final assessment in the bond lien docket are due, make the proper extensions of the installments and interest on the bond lien docket and turn the same over to the treasurer of the [governmental unit] local government. The treasurer then shall notify the property owner that the installments are due and payable, but a failure of any owner to receive the notice shall not prevent collection of the installment as provided in ORS 223.270. The treasurer shall issue a receipt to the person paying the installments and interest, and shall file duplicates of the receipts with the recorder. When the treasurer returns the bond lien docket, the recorder shall make the proper entries on the bond lien docket showing the amount of each payment and the date of the payment.
SECTION 15. ORS 223.280 is amended to read:
223.280. At any time after issuance of bonds under ORS 223.235, any owner of a lot against which the final assessment is made and lien docketed may pay into the treasury of the issuing [governmental unit] local government the whole amount of the final assessment for which the lien is docketed, together with the full amount of interest and late payment penalties and charges accrued thereon to the date of payment. Upon producing to the recorder of the [governmental unit] local government the receipt of the treasurer, the recorder shall enter in the lien docket opposite the entry of the lien the fact and date of the payment and that the lien is discharged.
SECTION 16. ORS 223.285 is amended to read:
223.285. Any treasurer receiving any payments of final assessments or interest on unpaid installments by virtue of the Bancroft Bonding Act, shall account for the payments separately from other funds of the [governmental unit] local government. The amount of the moneys paid on account of installments, interest on unpaid installments and late payment penalties or charges, shall be placed to the credit of a fund to be known and designated as “Bancroft Bond Redemption Fund” or in any designated account of the redemption fund [which] that may be established by the [governmental unit] local government under this section. All interest and principal due on bonds issued under ORS 223.235 shall be paid from the redemption fund or from a designated account of the redemption fund. The amount placed to the credit of the redemption fund or any account of the fund shall from time to time, under the direction of the governing body of the issuing [governmental unit] local government, be invested as provided in ORS 294.035 or 294.805 to 294.895.
SECTION 17. ORS 223.297 is amended to read:
223.297. The purpose of ORS 223.297 to 223.314 is to provide a uniform framework for the imposition of system development charges by [governmental units] local governments for specified purposes and to establish that the charges may be used only for capital improvements.
SECTION 18. ORS 223.299 is amended to read:
223.299. As used in ORS 223.297 to 223.314:
(1)(a) “Capital improvement” means facilities or assets used for the following:
(A) Water supply, treatment and distribution;
(B) Waste water collection, transmission, treatment and disposal;
(C) Drainage and flood control;
(D) Transportation; or
(E) Parks and recreation.
(b) “Capital improvement” does not include costs of the operation or routine maintenance of capital improvements.
(2) “Improvement fee” means a fee for costs associated with capital improvements to be constructed.
(3) “Reimbursement fee” means a fee for costs associated with capital improvements already constructed or under construction.
(4)(a) “System development charge” means a reimbursement fee, an improvement fee or a combination thereof assessed or collected at the time of increased usage of a capital improvement or issuance of a development permit, building permit or connection to the capital improvement. “System development charge” includes that portion of a sewer or water system connection charge that is greater than the amount necessary to reimburse the [governmental unit] local government for its average cost of inspecting and installing connections with water and sewer facilities.
(b) “System development charge” does not include any fees assessed or collected as part of a local improvement district or a charge in lieu of a local improvement district assessment, or the cost of complying with requirements or conditions imposed upon a land use decision, expedited land division or limited land use decision.
SECTION 19. ORS 223.301 is amended to read:
223.301. (1) As used in this section, “employer” means any person who contracts to pay remuneration for, and secures the right to direct and control the services of, any person.
(2) A [governmental unit] local government may not establish or impose a system development charge that requires an employer to pay a reimbursement fee or an improvement fee based on:
(a) The number of individuals hired by the employer after a specified date; or
(b) A methodology that assumes that costs are necessarily incurred for capital improvements when an employer hires an additional employee.
(3) A methodology set forth in an ordinance or resolution that establishes an improvement fee or a reimbursement fee shall not include or incorporate any method or system under which the payment of the fee or the amount of the fee is determined by the number of employees of an employer without regard to new construction, new development or new use of an existing structure by the employer.
SECTION 20. ORS 223.302 is amended to read:
223.302. (1) [Governmental units] Local governments are authorized to establish system development charges, but the revenues produced therefrom shall be expended only in accordance with ORS 223.297 to 223.314. If a [governmental unit] local government expends any such revenues in violation of the limitations described in ORS 223.307, the [governmental unit] local government shall replace the misspent amount with moneys derived from other sources. Replacement moneys shall be deposited in a fund designated for the system development charge revenues not later than one year following a determination that the funds were misspent.
(2) [Governmental units] Local governments shall adopt administrative review procedures by which any citizen or other interested person may challenge an expenditure of system development charge revenues. Such procedures shall provide that such a challenge must be filed within two years of the expenditure of the system development charge revenues. The decision of the [governmental unit] local government shall be judicially reviewed only as provided in ORS 34.010 to 34.100.
(3)(a) A [governmental unit] local government must advise a person who makes a written objection to the calculation of a system development charge of the right to petition for review pursuant to ORS 34.010 to 34.100.
(b) If a [governmental unit] local government has adopted an administrative review procedure for objections to the calculation of a system development charge, the [governmental unit] local government must provide adequate notice regarding the procedure for review to a person who makes a written objection to the calculation of a system development charge.
SECTION 21. ORS 223.304 is amended to read:
223.304. (1)(a) Reimbursement fees shall be established or modified by ordinance or resolution setting forth a methodology that considers the cost of the existing facility or facilities, prior contributions by existing users, gifts or grants from federal or state government or private persons, the value of unused capacity available to future system users, rate-making principles employed to finance publicly owned capital improvements and other relevant factors identified by the local government imposing the fee.
(b) The methodology for establishing or modifying a reimbursement fee shall:
(A) Promote the objective of future system users contributing no more than an equitable share to the cost of existing facilities.
(B) Be available for public inspection.
(2)(a) Improvement fees shall:
(A) Be established or modified by ordinance or resolution setting forth a methodology that considers the cost of projected capital improvements needed to increase the capacity of the systems to which the fee is related.
(B) Be calculated to obtain the cost of capital improvements for the projected need for available system capacity for future users.
(b) The methodology for establishing or modifying improvement fees shall be available for public inspection.
(3) The ordinance or resolution that establishes or modifies an improvement fee shall also provide for a credit against such fee for the construction of a qualified public improvement. A “qualified public improvement” means a capital improvement that is required as a condition of development approval, identified in the plan adopted pursuant to ORS 223.309 and either:
(a) Not located on or contiguous to property that is the subject of development approval; or
(b) Located in whole or in part on or contiguous to property that is the subject of development approval and required to be built larger or with greater capacity than is necessary for the particular development project to which the improvement fee is related.
(4)(a) The credit provided for in subsection (3) of this section shall be only for the improvement fee charged for the type of improvement being constructed, and credit for qualified public improvements under subsection (3)(b) of this section may be granted only for the cost of that portion of such improvement that exceeds the [government units] local government’s minimum standard facility size or capacity needed to serve the particular development project or property. The applicant shall have the burden of demonstrating that a particular improvement qualifies for credit under subsection (3)(b) of this section.
(b) When the construction of a qualified public improvement gives rise to a credit amount greater than the improvement fee that would otherwise be levied against the project receiving development approval, the excess credit may be applied against improvement fees that accrue in subsequent phases of the original development project. This subsection shall not prohibit a [unit of government] local government from providing a greater credit, or from establishing a system providing for the transferability of credits, or from providing a credit for a capital improvement not identified in the plan adopted pursuant to ORS 223.309, or from providing a share of the cost of such improvement by other means, if a [unit of] local government so chooses.
(c) Credits shall be used in the time specified in the ordinance but not later than 10 years from the date the credit is given.
(5) Any [unit of] local government that proposes to establish or modify a system development charge shall maintain a list of persons who have made a written request for notification prior to adoption or amendment of a methodology for any system development charge.
(6) Written notice shall be mailed to persons on the list at least 90 days prior to the first hearing to establish or modify a system development charge, and the methodology supporting the system development charge shall be available at least 60 days prior to the first hearing. The failure of a person on the list to receive a notice that was mailed does not invalidate the action of the local government. The [unit of] local government may periodically delete names from the list, but at least 30 days prior to removing a name from the list must notify the person whose name is to be deleted that a new written request for notification is required if the person wishes to remain on the notification list. Legal action intended to contest the methodology used for calculating a system development charge may not be filed after 60 days following adoption or modification of the system development charge ordinance or resolution by the local government. A person shall request judicial review of the methodology used for calculating a system development charge only as provided in ORS 34.010 to 34.100.
(7) A change in the amount of a reimbursement fee or an improvement fee is not a modification of the system development charge if the change in amount is based on the periodic application of an adopted specific cost index or on a modification to any of the factors related to rate that are incorporated in the established methodology.
SECTION 22. ORS 223.307 is amended to read:
223.307. (1) Reimbursement fees shall be spent only on capital improvements associated with the systems for which the fees are assessed including expenditures relating to repayment of indebtedness.
(2) Improvement fees shall be spent only on capacity increasing capital improvements, including expenditures relating to repayment of debt for such improvements. An increase in system capacity may be established if a capital improvement increases the level of performance or service provided by existing facilities or provides new facilities. The portion of such improvements funded by improvement fees must be related to current or projected development.
(3) System development charges shall not be expended for costs associated with the construction of administrative office facilities that are more than an incidental part of other capital improvements.
(4) Any capital improvement being funded wholly or in part with system development charge revenues shall be included in the plan adopted by a [governmental unit] local government pursuant to ORS 223.309.
(5) Notwithstanding subsections (1) and (2) of this section, system development charge revenues may be expended on the direct costs of complying with the provisions of ORS 223.297 to 223.314, including the costs of developing system development charge methodologies and providing an annual accounting of system development charge expenditures.
SECTION 23. ORS 223.309 is amended to read:
223.309. (1) Prior to the establishment of a system development charge by ordinance or resolution, a [governmental unit] local government shall prepare a capital improvement plan, public facilities plan, master plan or comparable plan that includes a list of the capital improvements that may be funded with improvement fee revenues and the estimated cost and timing for each improvement.
(2) A [governmental unit] local government that has prepared a plan and the list described in subsection (1) of this section may modify such plan and list at any time.
SECTION 24. ORS 223.311 is amended to read:
223.311. (1) System development charge revenues shall be deposited in accounts designated for such moneys. The [governmental unit] local government shall provide an annual accounting, to be completed by January 1 of each year, for system development charges showing the total amount of system development charge revenues collected for each system and the projects that were funded in the previous fiscal year.
(2) The [governmental unit] local government shall include in the annual accounting a list of the amount spent on each project funded, in whole or in part, with system development charge revenues.
SECTION 25. ORS 223.313 is amended to read:
223.313. (1) ORS 223.297 to 223.314
shall apply only to system development charges in effect on or after
(2) The provisions of ORS 223.297 to 223.314 shall not be applicable if they are construed to impair bond obligations for which system development charges have been pledged or to impair the ability of [governmental units] local governments to issue new bonds or other financing as provided by law for improvements allowed under ORS 223.297 to 223.314.
SECTION 26. ORS 223.317 is amended to read:
223.317. (1) Notwithstanding any other law, a [governmental unit] local government may apportion a final assessment levied by it against a single tract or parcel of real property among all the parcels formed from a subsequent partition or other division of that tract or parcel, if the subsequent partition or division is in accordance with ORS 92.010 to 92.190 and is consistent with all applicable comprehensive plans as acknowledged by the Land Conservation and Development Commission under ORS 197.251. The proportionate distribution of a final assessment authorized under this subsection may be made whenever the final assessment remains wholly or partially unpaid, and full payment or an installment payment is not due.
(2) A [governmental unit] local government shall apportion a final assessment under this section when requested to do so by any owner, mortgagee or lienholder of a parcel of real property that was formed from the partition or other division of the larger tract of real property against which the final assessment was originally levied. When the deed, mortgage or other instrument evidencing the applicant’s ownership or other interest in the parcel has not been recorded by the county clerk of the county in which the parcel is situated, the [governmental unit] local government shall not apportion the final assessment unless the applicant files a true copy of that deed, mortgage or instrument with the [governmental unit] local government.
(3) Apportionment of a final assessment under this section shall be done in accordance with an order or resolution of the governing body of the [governmental unit] local government. The order or resolution shall describe each parcel of real property affected by the apportionment, the amount of the final assessment levied against each parcel, the owner of each parcel and such additional information as is required to keep a permanent and complete record of the final assessments and the payments thereon. A copy of the order or resolution shall be filed with the recorder required to maintain the lien docket for the [governmental unit] local government, who shall make any necessary changes or entries in the lien docket for the [governmental unit] local government.
SECTION 27. ORS 223.327 is amended to read:
223.327. A [governmental unit which] local government that imposes final assessments shall adopt an ordinance or other regulations establishing procedures for the equitable apportionment of final assessments under ORS 223.317 to 223.327. The ordinance or regulations shall authorize the [governmental unit] local government to establish fees reasonably calculated to reimburse it for its actual costs in apportioning final assessments under ORS 223.317 to 223.327. The provisions of ORS 223.317 to 223.327 relating to apportionment of final assessments shall apply to estimated assessments with respect to any tract or parcel divided into smaller parcels prior to the levy of the final assessment.
SECTION 28. ORS 223.389 is amended to read:
223.389. (1) The governing body of a [governmental unit] local government may prescribe by ordinance or resolution the procedure to be followed in making estimated assessments and final assessments for benefits from a local improvement upon the lots [which] that have been benefited by all or part of the local improvement, to the extent that the charter of the [governmental unit] local government does not prescribe the method of procedure. In addition, in any case where the charter of a [governmental unit] local government specifies a method of procedure that does not comply or is not consistent with the requirements of the Oregon Constitution, the governing body of the [governmental unit] local government may prescribe by ordinance or resolution the procedure [which] that shall comply and be consistent with the requirements of the Oregon Constitution, and the provisions of the ordinance or resolution shall apply in lieu of the charter provisions.
(2)(a) The ordinance or resolution prescribing the procedure shall provide for adoption or enactment of an ordinance or resolution designating the local improvement as to which an assessment is contemplated, describing the boundaries of the district to be assessed. Provision shall be made for at least 10 days’ notice to owners of property within the proposed district in which the local improvement is contemplated. The notice may be made by posting, by newspaper publication or by mail, or by any combination of such methods. The notice shall specify the time and place where the governing body will hear and consider objections or remonstrances to the proposed local improvement by any parties aggrieved thereby.
(b) If the governing body determines that the local improvement shall be made, when the estimated cost thereof is ascertained on the basis of the contract award or the departmental cost of the [governmental unit] local government, the governing body shall determine whether the property benefited shall bear all or a portion of the cost. The recorder or other person designated by the governing body shall prepare the estimated assessment to the respective lots within the assessment district and file it in the appropriate office of the [governmental unit] local government. Notice of the estimated assessment shall be mailed or personally delivered to the owner of each lot proposed to be assessed. The notice shall state the amounts of the estimated assessment proposed on that property and shall fix a date by which time objections shall be filed with the recorder. Any objection shall state the grounds for the objection. The governing body shall consider the objections and grounds and may adopt, correct, modify or revise the estimated assessments.
(c) The governing body shall determine the amount of estimated assessment to be charged against each lot within the district, according to the special and peculiar benefits accruing to the lot from the local improvement, and shall by ordinance or resolution spread the estimated assessments.
SECTION 29. ORS 223.391 is amended to read:
223.391. If a notice is required to be sent to the owner of a lot affected by a proposed assessment, the notice shall be addressed to the owner or the owner’s agent. If the address of the owner or of the owner’s agent is unknown to the recorder, the recorder shall mail the notice addressed to the owner or the owner’s agent at the address where the property is located. Any mistake, error, omission or failure with respect to the mailing shall not be jurisdictional or invalidate the assessment proceedings, but there shall be no foreclosure or legal action to collect until notice has been given by personal service upon the property owner, or, if personal service cannot be had, then by publication once a week for two successive weeks in a newspaper designated by the governing body and having general circulation [in the governmental unit] within the boundaries of the local government where the property is located.
SECTION 30. ORS 223.393 is amended to read:
223.393. Estimated and final assessments shall become a lien upon the property assessed from and after the passage of the ordinance or resolution spreading the same and entry in appropriate lien record of the [governmental unit] local government. The estimated assessment lien shall continue until the time the estimated assessment becomes a final assessment. The [governmental unit] local government may enforce collection of such assessments as provided by ORS 223.505 to 223.650.
SECTION 31. ORS 223.399 is amended to read:
223.399. The governing body of a [governmental unit] local government may impose additional procedural requirements. The procedural provisions of ORS 223.387 to 223.399 shall apply only where the charter or an ordinance of a [governmental unit] local government does not specify otherwise and the charter or ordinance provisions comply and are consistent with the requirements of the Oregon Constitution. The charter or ordinance provisions shall apply to local improvements permitted by law. [No governmental unit shall] A local government may not authorize a local improvement prohibited by percentage of remonstrance or otherwise under the charter of the [governmental unit] local government.
SECTION 32. ORS 223.430 is amended to read:
223.430. After the proposed reassessment is filed in the office of the recorder, the recorder shall give notice thereof by not less than four successive publications in a newspaper published in the city in which the principal offices of the [governmental unit] local government are located and, if there is no newspaper published in the city, in a newspaper to be designated by the governing body. The notice shall show that the proposed reassessment is on file in the office of the recorder, giving the date of the passage of the resolution authorizing it, the boundaries of the district or a statement of the property affected by the proposed reassessment, and specifying the time and place where the governing body will hear and consider objections to the proposed reassessment by any parties aggrieved thereby.
SECTION 33. ORS 223.450 is amended to read:
223.450. When the reassessment is duly made it shall be entered in the lien docket of the [governmental unit] local government. All provisions for bonding and paying by installments shall be applicable, and such liens of the [governmental unit] local government shall be enforced and collected in the manner provided for collection of liens for an original local improvement. All sums paid upon the former final assessment or any previous reassessment shall be credited to the property on account of which it was paid and as of the date of payment.
SECTION 34. ORS 223.455 is amended to read:
223.455. In cases where a sale was made under the original final assessment or any previous reassessment, with reference to such local improvement, and the property was not redeemed from the sale, the purchaser at the sale is subrogated to the rights of the [governmental unit] local government with reference to the property upon such reassessment if the purchaser waives all penalties and interest, except such interest as may be provided for on the reassessment, and delivers up for cancellation any certificate or other evidence of the sale. If a deed was issued at the sale, the grantee therein, or the heirs, executors, administrators, successors or assigns of the grantee, shall execute a deed of release and quitclaim of all right, title and interest in the property under such sale to the owner of the property and deliver the deed to the recorder, so that the owner’s title may be cleared of the sale. The recorder shall act as escrow holder of such certificate or other evidence of sale and of such deed pending completion of reassessment. If the reassessment is not completed, the recorder shall return the certificate or other evidence of sale and the deed to the person delivering it to the recorder. If the reassessment is completed, the certificate or other evidence of sale shall be canceled and placed on file in the office of the recorder and the deed shall be delivered to the owner of the property specified therein. If any such purchaser, or the heirs, executors, administrators, successors or assigns of such purchaser fails to comply with this section, that person is not entitled to subrogation. In any event, the amount of subrogation shall not exceed the amount [which] that has been paid to the [governmental unit] local government on such sale, together with interest at the rate of six percent per annum from the date of sale until the date of payment. This amount is to be paid by the [governmental unit] local government to the purchaser, or the heirs, executors, administrators, successors or assigns of the purchaser if and when the [governmental unit] local government collects the amount of the reassessment against the property.
SECTION 35. ORS 223.485 is amended to read:
223.485. (1) The authority granted in ORS 223.405 to 223.455 [shall] does not apply [in] to any [governmental unit where the] local government if the local government has provided a method of reassessment [is provided] by ordinance or charter.
(2) No proceedings for making a reassessment shall be instituted after 20 years from the date when the first assessment was entered on the lien docket.
SECTION 36. ORS 223.505 is amended to read:
223.505. As used in ORS 223.505 to 223.595, unless the context requires otherwise, “treasurer” means the officer designated by charter or ordinance of the [governmental unit] local government to collect unpaid liens or assessments, take all steps necessary to enforce delinquent liens or assessments and to maintain records pertaining to collection proceedings thereon.
SECTION 37. ORS 223.510 is amended to read:
223.510. In addition to the method provided by law, ordinance or the charter of any [governmental unit] local government for the sale of real property for delinquent liens or final assessments, every [governmental unit] local government may cause the real property to be sold as provided in ORS 223.510 to 223.590 for any final assessment, lien or installment thereof at any time after one year from the date such lien, final assessment or installment becomes due and payable, if bonded; otherwise, at any time after 60 days from the time it is entered in the lien docket of the [governmental unit] local government.
SECTION 38. ORS 223.515 is amended to read:
223.515. If any installment on any lien bonded, as provided by law, ordinances or charter of the [governmental unit] local government, is delinquent for a period of one year from the time it became due and payable, or at any time after 60 days from the time it became due and payable if not bonded, the recorder may thereafter prepare and transmit to the treasurer a list in tabular form, made up from the lien docket, describing each lien, assessment or installment due on any bonded lien [which] that is so delinquent. The list shall also contain the name of the person to whom assessed, a particular description of the property, the amount of the lien or final assessment or the amount of the installment due on any bonded lien, and any other facts necessary to be given.
SECTION 39. ORS 223.520 is amended to read:
223.520. Upon receipt of the list described in ORS 223.515, the treasurer shall proceed to collect the unpaid liens or final assessments named in the list by advertising and selling the lots or tracts in the manner now provided by law for the sale of real property on execution, except as otherwise provided in ORS 223.525 to 223.580 and except that sale may be made at such place within the [corporate limits of such governmental unit] boundaries of the local government as may be designated in the notice of sale.
SECTION 40. ORS 223.530 is amended to read:
223.530. A sale of real property under ORS 223.505 to 223.590 conveys to the purchaser, subject to redemption as provided in ORS 223.565 to 223.590, all estates, interests, liens or claims therein or thereto of any persons, together with all rights and appurtenances thereunto belonging, excepting only the lien of a [governmental unit] local government on such assessments or liens as are not included in the foreclosure proceedings.
SECTION 41. ORS 223.545 is amended to read:
223.545. If no bid is received for the sale of the property, the [governmental unit] local government may purchase the property by bidding therefor the amount of the lien or liens and the cost of advertising and sale. The property may be struck off and sold to the [governmental unit] local government without actual payment of money.
SECTION 42. ORS 223.565 is amended to read:
223.565. (1) The owner, or legal representatives of the owner, or the successor in interest of the owner, or any person having a lien by judgment, decree or mortgage, or owner of a tax lien, on any property sold by virtue of ORS 223.520 may redeem it upon conditions provided in this section. Redemption of any real property sold for a delinquent final assessment or lien under the provisions of ORS 223.505 to 223.590 may be made by paying to the treasurer, at any time within one year from the date of the certificate of sale, the purchase price and 10 percent thereof as penalty, and interest on the purchase price at the rate of 10 percent per annum, from the date of the certificate. Where redemption is made by the holder of a tax lien the holder may have such redemption noted upon the record of the lien in like manner and with like effect as prescribed in this section. Such redemption shall discharge the property so sold from the effect of the sale and, if made by a lien creditor, the amount paid for the redemption shall thereafter be deemed a part of the judgment, decree, mortgage or tax lien, as the case may be, and shall bear like interest, and may be enforced and collected as a part thereof.
(2) Anyone applying or seeking to
redeem property sold under the provisions of ORS 223.505 to 223.590 must pay or
offer to pay the sum necessary in lawful money of the
(3) When an individual purchases real property at a foreclosure sale under ORS 223.505 to 223.590, if, with the approval of the [governmental unit] local government, that purchaser incurs costs for maintaining or improving the property during the period allowed for redemption and if the property is subsequently redeemed, the treasurer may return all or part of the penalty paid by the person redeeming the property to the purchaser as provided by charter or ordinance of the [governmental unit] local government.
SECTION 43. ORS 223.575 is amended to read:
223.575. The effect of the deed shall be to convey to the grantee therein named the legal and equitable title in fee simple, to the real property described in the deed, excepting only the lien of a [governmental unit] local government on such assessments or liens as were not included in the foreclosure proceedings. The deed shall be prima facie evidence of title in the grantee, except as stated in this section, and that all proceedings and acts necessary to make such deed in all respects good and valid have been had and done. Such prima facie evidence shall not be disputed, overcome or rebutted, or the effect thereof avoided, except by satisfactory proof of either:
(1) Fraud in making the final assessment or in the final assessment, or in the procuring of the lien.
(2) Payment of the final assessment or lien before sale or redemption after sale.
(3) That payment or redemption was prevented by fraud of the purchaser.
(4) That the property was sold for a lien or final assessment for which neither the property nor its owner, at the time of sale, was liable, and that no part of the final assessment or lien was assessed or levied upon the property sold.
SECTION 44. ORS 223.593 is amended to read:
223.593. (1) Notwithstanding ORS 223.565 and 223.650, when a [governmental unit] local government sells real property under ORS 223.510 to 223.590 or pursuant to a decree of foreclosure entered in an action authorized by ORS 223.610 for neglect or refusal by the owner to pay installments under ORS 223.265, the property may be redeemed as provided in this section by the owner, a legal representative or a successor in interest or by any other person having a lien on the property.
(2) Redemption of such real property may be made by paying to the treasurer of the [governmental unit] local government, at any time within one year after the date of sale, the following amounts:
(a) The purchase price at the foreclosure sale and 10 percent thereof as penalty;
(b) The amount of any taxes, assessments or liens upon the property that are paid after the sale by the purchaser at the sale; and
(c) Interest on the amounts paid under paragraphs (a) and (b) of this subsection at a rate of 10 percent per annum from the respective times of the payments of the purchase price, taxes, assessments or liens to the date of redemption.
(3) A redemption of property under this section shall be made for cash.
SECTION 45. ORS 223.594 is amended to read:
223.594. (1) When water service is provided to a multifamily building with five or more units with a single water meter, the owner of the real property shall be considered the user of the water. If payment for such water is not made when due and the water service has not been shut off or will not be shut off, the municipal utility may place a lien on the premises to which water service was provided for the amount due for such service.
(2) When requested by the property owner and authorized by the municipal utility, a single water meter may serve several parcels of real property owned by the same owner. The owner of those parcels of real property shall be considered the user of the water. If payment for such water is not made when due and the water has not been shut off or will not be shut off, the municipal utility providing such service may place a lien on the real property to which water service was provided for the amount due for such service.
(3) At any time after 60 days from the time the lien is entered in the lien docket of the [governing unit] local government, in addition to any method provided by law, ordinance or the charter of any [governmental unit] local government, the lien may be foreclosed in the manner provided under ORS 223.510 to 223.595.
SECTION 46. ORS 223.610 is amended to read:
223.610. In addition to methods now provided by law, charters, ordinances or acts of incorporation for the foreclosure or collection of liens, any [governmental unit] local government may foreclose any lien lawfully levied or assessed by it, by suit in equity in the circuit court of the county in which the [governmental unit] local government is located.
SECTION 47. ORS 223.615 is amended to read:
223.615. In any action authorized by ORS 223.610, the court may award reasonable attorney fees to the [government unit] local government bringing the action if the [government unit] local government prevails in the action. The court may award reasonable attorney fees to a defendant who prevails in the action if the court determines that the [government unit] local government had no objectively reasonable basis for asserting the claim or no reasonable basis for appealing an adverse decision of the trial court.
SECTION 48. ORS 223.625 is amended to read:
223.625. In any suit authorized by ORS 223.610, the [governmental unit] local government may include any number of lots upon which it has delinquent liens though the liens may have been levied under the same or different ordinances or resolutions. Any number of different delinquent liens may be foreclosed upon the same lot in one suit. If there is more than one delinquent lien on any lot, the various amounts thereof, including accrued interest, penalties, costs and attorney fees, shall be added together and the total thereof shall be deemed the amount of the lien for which the lot is to be sold.
SECTION 49. ORS 223.640 is amended to read:
223.640. In any suit authorized by ORS 223.610, it shall be a sufficient allegation of jurisdictional facts authorizing the [governmental unit] local government to make and levy any lien if the complaint alleges in general terms that the local improvement was made in the manner and as provided by law, by the [governmental unit’s] local government’s charter, ordinances, resolutions, or any of them, relating to such local improvement. It is not necessary to specifically set forth in the complaint any such charter provisions, ordinances or resolutions.
SECTION 50. ORS 223.645 is amended to read:
223.645. The [governmental unit] local government may bid at the sale on execution of the property involved in the foreclosure suit any amount not exceeding the sum found by the decree of the court to be due upon the [governmental unit’s] local government’s lien, together with interest, costs, penalties and attorney fees, and it may credit the amount of its bid upon the execution.
SECTION 51. ORS 223.705 is amended to read:
223.705. Subject to the prior approval of the governing body of the [governmental unit] local government, the owner of any property assessed for local improvements under state law or under the charter of any [governmental unit] local government, and in cases where a final assessment for local improvement has been bonded and entered in the bond lien docket as authorized by ORS 223.205 and 223.210 to 223.295 or the charter and the bonded assessment has not been fully paid, may file with the auditor, clerk or other officer charged with the keeping of records of the [governmental unit] local government an application for rebonding the original assessment in the amount due and unpaid thereon. The auditor, clerk or other officer charged with keeping the records of the [governmental unit] local government may accept these applications. If there is more than one final assessment on the same piece of property, the owner may combine them in one application.
SECTION 52. ORS 223.710 is amended to read:
223.710. (1) The applications for rebonding shall be in the same form and preserved as original bonding applications. The officer charged with keeping the records of the [governmental unit] local government shall keep the bonding applications in convenient form for examination. The officer shall enter in a docket kept for that purpose a description of each lot or parcel of land against which the rebonding assessment is made, or which bears or is chargeable for the cost of the local improvement, with the name of the then owner and the total amount of unpaid final assessments rebonded.
(2) The total amount to be rebonded against any lot or parcel of land must be $25 or more. The owner shall tender and pay with the application all accrued interest due on the bonded assessment to the first of the month preceding the date of application.
(3) No application for rebonding shall be received unless the taxes for any quarter of the current year then due and payable, together with the entire amount of taxes of the year immediately preceding the year in which the application is filed, have been fully paid and evidence of such payment satisfactory to the officer receiving the application is produced at the time of making the application.
SECTION 53. ORS 223.715 is amended to read:
223.715. The amount of the assessment to be rebonded shall constitute a new principal and shall be paid in such number of equal periodic installments as the governing body of the [governmental unit] local government may determine, with interest thereon at the rate per annum determined by the governing body of the [governmental unit] local government under ORS 223.215.
SECTION 54. ORS 223.720 is amended to read:
223.720. The amount of the unpaid rebonded assessments entered in the rebonding assessment docket, with interest on unpaid rebonded assessments at the rate per annum determined by the governing body of the [governmental unit] local government under ORS 223.215, against each such lot or parcel of land, shall stand as a lien in favor of the [governmental unit] local government until the rebonded assessments and interest are paid. A rebonding assessment lien shall have the same priority as all other liens relating to assessments for local improvements.
SECTION 55. ORS 223.725 is amended to read:
223.725. Each [governmental unit] local government may, by ordinance or resolution of its governing body from time to time, issue and sell pursuant to rebonding applications, bonds of the tenor of those designated in ORS 223.235, in an amount not exceeding the total amount of such applications.
SECTION 56. ORS 223.735 is amended to read:
223.735. The bonds and the amount thereof authorized pursuant to ORS 223.705 shall not be counted in calculating the limited indebtedness of any [governmental unit] local government, fixed either by its charter, ORS 223.295, by any law, or by the Constitution of this state, but shall be in excess thereof and excluded from such debt limitations.
SECTION 57. ORS 223.745 is amended to read:
223.745. The power granted by ORS 223.705 to 223.750 is vested in each [governmental unit] local government and is self-operating therein without further necessity of enacting charter or ordinance provisions incorporating the terms of those sections.
SECTION 58. ORS 223.750 is amended to read:
223.750. (1) Each [governmental unit] local government, through its governing body, may provide, by such ordinances, rules and regulations as may be needed, for accepting rebonding applications, issuing bonds and otherwise carrying out the terms of ORS 223.705 to 223.750; and may, by such ordinance and in conformity with ORS 223.715, determine the interest rate to be charged property owners who apply to rebond liens as provided by those sections.
(2) No error or omission in rebonding liens shall invalidate or impair the original bonded lien.
SECTION 59. ORS 223.755 is amended to read:
223.755. (1) As used in this section, “bonded assessment” means any assessment for a local improvement levied by any [governmental unit] local government where application to pay such assessment in installments has been filed with the [governmental unit] local government levying it.
(2) After approval by the governing body of any [governmental unit] local government, the owner of any property, against which there is outstanding any delinquent bonded assessment, at any time before the property affected by the assessment has been sold for the collection thereof as provided by law, may pay any delinquent installment of the bonded assessment, together with the amount of interest due thereon as provided by the law governing the same, plus the cost of advertising the property for sale and a penalty of three percent on the amount of the delinquent installment so paid.
(3) The power granted by subsection (2) of this section is vested in each [governmental unit] local government and is self-operating therein without the necessity of amending the charter thereof incorporating the terms of this section.
(4) The governing body of each [governmental unit] local government may, in its discretion, by ordinance, make the provisions of this section applicable to delinquent bonded assessments levied by it and outstanding against property in the [governmental unit] local government.
SECTION 60. ORS 223.765 is amended to read:
223.765. Any [governmental unit] local government may, by ordinance duly passed by its governing body, authorize the acceptance by such [governmental unit] local government of the general obligation bonds or interest coupons attached, or both, of the [governmental unit] local government, in payment of all or any part of special assessment liens, interest or penalties of or payable to the [governmental unit] local government.
SECTION 61. ORS 223.770 is amended to read:
223.770. (1) Whenever all or any part of the cost of public improvements made by any [governmental unit] local government is to be assessed to the property benefited thereby, benefited property owned by the [governmental unit, city, county, school districts, state and any political subdivision thereof] local government or any other public body as defined in ORS 174.109 shall be assessed the same as private property and the amount of the assessment shall be paid by the [governmental unit, city, school districts, county or state, as the case may be] public body, provided that the costs of the improvements are, in any given case, of the type that may be bonded under ORS 223.205 and 223.210 to 223.215.
(2) In the case of property owned by the state, the amount of the assessment shall be certified by the treasurer and filed with the Oregon Department of Administrative Services as a claim for reference to the Legislative Assembly in the manner provided by ORS 293.316, unless funds for the payment of the assessment have been otherwise provided by law.
SECTION 62. ORS 223.775 is amended to read:
223.775. (1) As used in subsections (2) to (5) of this section:
(a) “Cemetery authority” means a nonprofit cemetery or crematory corporation.
(b) “
(2) Notwithstanding the provisions of ORS 65.855 to 65.875 or any other provision of law, whenever all or any part of the cost of a street, curb or sidewalk improvement made by a [governmental unit] local government is to be assessed to the property benefited thereby, benefited property owned and platted for cemetery or crematory purposes by a cemetery authority shall be assessed the same as private property. The amount of the assessment shall be paid by the cemetery authority as provided in this section.
(3)(a) Within 60 days after the date the ordinance levying the initial assessment is enacted by the [governmental unit] local government, the cemetery authority shall furnish the [governmental unit] local government with a list of platted burial lots within the benefited property unsold on the date such ordinance was enacted. Until such assessment is paid in full, whenever additional burial lots are platted within the benefited property, the cemetery authority shall furnish the [governmental unit] local government with a list of such additional lots at the time the plat thereof is recorded.
(b) Out of the first funds received for the sales price of any of such lots, the cemetery authority after setting aside perpetual care and maintenance funds as required by law or otherwise shall credit five percent of such sales price to a special account for the payment of the assessment until a sum equal to the assessment and any interest due thereon has been so credited.
(4) All funds accumulated in the special account for the payment of assessments shall be paid semiannually to the [governmental unit] local government levying such assessment, the first payment to be made six months after the date the final assessment was levied and succeeding payments each six months thereafter until such assessment and any interest due thereon, as provided in this subsection, is paid in full. Any funds in such account that are not paid to the [governmental unit] local government when due shall bear interest at the rate of seven percent per annum from the due date until paid to the [governmental unit] local government.
(5) Platted property of a cemetery authority subject to an assessment as provided in this section is exempt from execution for collection of any such assessment while such property is held by a cemetery authority for cemetery or crematory purposes. Any such assessment levied against a cemetery authority shall be payable only from the funds received for the sale of lots listed with the [governmental unit] local government as required by subsection (3) of this section. Except as provided in subsection (4) of this section, interest shall not be due on the unpaid balance of any such assessment.
SECTION 63. ORS 310.140 is amended to read:
310.140. The Legislative Assembly
finds that section 11b, Article XI of the Oregon Constitution, was drafted by
citizens and placed before the voters of the State of
(1) “Tax on property” means any tax, fee, charge or assessment imposed by any government unit upon property or upon a property owner as a direct consequence of ownership of that property, but does not include incurred charges or assessments for local improvements. As used in this subsection, “property” means real or tangible personal property, and intangible property that is part of a unit of real or tangible personal property to the extent that such intangible property is subject to a tax on property.
(2) “Direct consequence of ownership” means that the obligation of the owner of property to pay a tax arises solely because that person is the owner of the property, and the obligation to pay the tax arises as an immediate and necessary result of that ownership without respect to any other intervening transaction, condition or event.
(3)(a) “Incurred charge” means a charge imposed by a unit of government on property or upon a property owner that does not exceed the actual cost of providing goods or services and that can be controlled or avoided by the property owner because:
(A) The charge is based on the quantity of the goods or services used, and the owner has direct control over the quantity;
(B) The goods or services are provided only on the specific request of the property owner; or
(C) The goods or services are provided by the government unit only after the individual property owner has failed to meet routine obligations of ownership of the affected property, and such action is deemed necessary by an appropriate government unit to enforce regulations pertaining to health or safety.
(b) For purposes of this subsection, an owner of property may control or avoid an incurred charge if the owner is capable of taking action to affect the amount of a charge that is or will be imposed or to avoid imposition of a charge even if the owner must incur expense in so doing.
(c) For purposes of paragraph (a)(A) of this subsection, an owner of property has direct control over the quantity of goods or services if the owner of property has the ability, whether or not that ability is exercised, to determine the quantity of goods or services provided or to be provided.
(4) “Specific request” means:
(a) An affirmative act by a property owner to seek or obtain delivery of goods or services;
(b) An affirmative act by a property owner, the legal consequence of which is to cause the delivery of goods or services to the property owner; or
(c) Failure of an owner of property to change a request for goods or services made by a prior owner of the property.
(5) “Routine obligations of ownership” means a standard of operation, maintenance, use or care of property established by law, or if established by custom or common law, a standard that is reasonable for the type of property affected.
(6) “Assessment for local improvement” means any tax, fee, charge or assessment that does not exceed the actual cost incurred by a unit of government for design, construction and financing of a local improvement.
(7)(a) “Local improvement” means a capital construction project, or part thereof, undertaken by a [governmental unit] local government, pursuant to ORS 223.387 to 223.399, or pursuant to a local ordinance or resolution prescribing the procedure to be followed in making local assessments for benefits from a local improvement upon the lots that have been benefited by all or a part of the improvement:
(A) That provides a special benefit only to specific properties or rectifies a problem caused by specific properties;
(B) The costs of which are assessed against those properties in a single assessment upon the completion of the project; and
(C) For which the property owner may elect to make payment of the assessment plus appropriate interest over a period of at least 10 years.
(b) For purposes of paragraph (a) of this subsection, the status of a capital construction project as a local improvement is not affected by the accrual of a general benefit to property other than the property receiving the special benefit.
(8) “Single assessment” means the complete assessment process, including preassessment, assessment or reassessment, for any local improvement authorized by ORS 223.387 to 223.399, or a local ordinance or resolution that provides the procedure to be followed in making local assessments for benefits from a local improvement upon lots that have been benefited by all or part of the improvement.
(9) “Special benefit only to specific properties” shall have the same meaning as “special and peculiar benefit” as that term is used in ORS 223.389.
(10) “Actual cost” means all direct or indirect costs incurred by a government unit in order to deliver goods or services or to undertake a capital construction project. The “actual cost” of providing goods or services to a property or property owner includes the average cost or an allocated portion of the total amount of the actual cost of making a good or service available to the property or property owner, whether stated as a minimum, fixed or variable amount. “Actual cost” includes, but is not limited to, the costs of labor, materials, supplies, equipment rental, property acquisition, permits, engineering, financing, reasonable program delinquencies, return on investment, required fees, insurance, administration, accounting, depreciation, amortization, operation, maintenance, repair or replacement and debt service, including debt service payments or payments into reserve accounts for debt service and payment of amounts necessary to meet debt service coverage requirements.
(11) “Bonded indebtedness” means any formally executed written agreement representing a promise by a unit of government to pay to another a specified sum of money, at a specified date or dates at least one year in the future.
(12)(a) “Exempt bonded indebtedness” means:
(A) Bonded indebtedness authorized by a specific provision of the Oregon Constitution;
(B) Bonded indebtedness incurred or to
be incurred for capital construction or capital improvements that was issued as
a general obligation of the issuing governmental unit on or before
(C) Bonded indebtedness incurred or to be incurred for capital construction or capital improvements that was issued as a general obligation of the issuing governmental unit after November 6, 1990, with the approval of the electors of the issuing governmental unit; or
(D) Bonded indebtedness incurred or to be incurred for capital construction or capital improvements, if the issuance of the bonds is approved by voters on or after December 5, 1996, in an election that is in compliance with the voter participation requirements of section 11 (8), Article XI of the Oregon Constitution.
(b) “Exempt bonded indebtedness” includes bonded indebtedness issued to refund or refinance any bonded indebtedness described in paragraph (a) of this subsection.
(13) “Capital construction”:
(a) For bonded indebtedness issued prior to December 5, 1996, and for the proceeds of any bonded indebtedness approved by electors prior to December 5, 1996, that were spent or contractually obligated to be spent prior to June 20, 1997, means the construction, modification, replacement, repair, remodeling or renovation of a structure, or addition to a structure, that is expected to have a useful life of more than one year, and includes, but is not limited to:
(A) Acquisition of land, or a legal interest in land, in conjunction with the capital construction of a structure.
(B) Acquisition, installation of machinery or equipment, furnishings or materials that will become an integral part of a structure.
(C) Activities related to the capital construction, such as planning, design, acquisition of interim or permanent financing, research, land use and environmental impact studies, acquisition of permits or licenses or other services connected with the construction.
(D) Acquisition of existing structures, or legal interests in structures, in conjunction with the capital construction.
(b) For bonded indebtedness issued on or after December 5, 1996, except for the proceeds of any bonded indebtedness approved by electors prior to December 5, 1996, that were spent or contractually obligated to be spent before June 20, 1997, has the meaning given that term in paragraph (a) of this subsection, except that “capital construction”:
(A) Includes public safety and law enforcement vehicles with a projected useful life of five years or more; and
(B) Does not include:
(i) Maintenance and repairs, the need for which could be reasonably anticipated;
(ii) Supplies and equipment that are not intrinsic to the structure; or
(iii) Furnishings, unless the furnishings are acquired in connection with the acquisition, construction, remodeling or renovation of a structure, or the repair of a structure that is required because of damage or destruction of the structure.
(14) “Structure” means any temporary or permanent building or improvement to real property of any kind that is constructed on or attached to real property, whether above, on or beneath the surface.
(15) “Capital improvements”:
(a) For bonded indebtedness issued prior to December 5, 1996, and for the proceeds of any bonded indebtedness approved by electors before December 5, 1996, that were spent or contractually obligated to be spent before June 20, 1997, means land, structures, facilities, as that term is defined in ORS 288.805, machinery, equipment or furnishings having a useful life longer than one year.
(b) For bonded indebtedness issued on or after December 5, 1996, except for the proceeds of any bonded indebtedness approved by electors prior to December 5, 1996, that were spent or contractually obligated to be spent before June 20, 1997, has the meaning given that term in paragraph (a) of this subsection, except that “capital improvements”:
(A) Includes public safety and law enforcement vehicles with a projected useful life of five years or more; and
(B) Does not include:
(i) Maintenance and repairs, the need for which could be reasonably anticipated;
(ii) Supplies and equipment that are not intrinsic to the structure; or
(iii) Furnishings, unless the furnishings are acquired in connection with the acquisition, construction, remodeling or renovation of a structure, or the repair of a structure that is required because of damage or destruction of the structure.
(16) “Maintenance and repairs, the need for which could be reasonably anticipated”:
(a) Means activities, the type of which may be deducted as an expense under the provisions of the federal Internal Revenue Code, as amended and in effect on December 31, 2000, and that keep the property in ordinarily efficient operating condition, and that do not add materially to the value of the property nor appreciably prolong the life of the property;
(b) Does not include maintenance and repair of property that is required by damage, destruction or defect in design, or that was otherwise not reasonably expected at the time the property was constructed or acquired, or the addition of material that is in the nature of the replacement of property and that arrests the deterioration or appreciably prolongs the useful life of the property; and
(c) Does not include street and highway construction, overlay and reconstruction.
(17) “Supplies and equipment intrinsic to a structure” means the supplies and equipment that are necessary to permit a structure to perform the functions for which the structure was constructed, or that will, upon installation, constitute fixtures considered to be part of the real property that is comprised, in whole or part, of the structure and land supporting the structure.
(18) “Projected useful life” means the useful life, as reasonably estimated by the unit of government undertaking the capital construction or capital improvement project, beginning with the date the property was acquired, constructed or reconstructed and based on the property’s condition at the time the property was acquired, constructed or reconstructed.
SECTION 64. ORS 371.655 is amended to read:
371.655. (1) Except as provided in subsection (2) of this section, 30 days after the assessment is certified, the entire amount against each parcel of land shall be due and payable at the office designated by the governing body of the county and, if not so paid, shall be delinquent from that date and shall bear interest at a rate established by the governing body of the county.
(2) The owner of property assessed under ORS 371.605 to 371.660 shall have the right to apply for installment payment of the assessment as provided in ORS 223.210.
(3) The provisions of ORS 223.205 and 223.210 to 223.314 (Bancroft Bonding Act) and 223.770 relating to the assessment of property benefited by public improvements and to the issuance of bonds and other obligations for the cost of the improvements shall apply in so far as practicable and applicable in relation to the assessment by counties of the cost or any portion of the cost of improvements against the property benefited in accordance with ORS 371.605 to 371.660 and to the issuance of bonds and other obligations by the county. However, notwithstanding the provisions of ORS 223.295, in issuing bonds and other obligations under the provisions of this section, a county may incur indebtedness to an amount not exceeding .0375 of the latest real market valuation of the county.
(4) Where, in ORS 223.205 to 223.314 and 223.770, officials of [governmental units] local governments are referred to, the corresponding officials of counties where applicable and unless otherwise designated by charter shall perform the required functions.
PEOPLE’S UTILITY DISTRICTS
SECTION 65. ORS 261.010 is amended to read:
261.010. As used in this chapter, unless otherwise required by the context:
(1) “People’s utility district” or “district” means an incorporated people’s utility district, created under the provisions of this chapter.
[(2) “Municipality” means an incorporated city or town with a council or legislative body.]
[(3)] (2) “Board of directors,” “directors” or “board” means the governing body of a people’s utility district, elected and functioning under the provisions of this chapter.
[(4)] (3) “Parcel of territory” means a portion of unincorporated territory, or an area in a [municipality] city comprised of less than the entire [municipality] city.
[(5)] (4) “Separate parcel of territory” means unincorporated territory that is not contiguous to other territory that is a part of a district or that is described in a petition filed with the county clerk in pursuance of the provisions of this chapter, but when a proposed district includes territory in more than one county, the contiguous territory in each such county shall be considered as a separate parcel of territory. When a proposed district includes any area in a [municipality] city comprised of less than the entire [municipality] city, that area shall be considered as a separate parcel of territory.
[(6)] (5) “Utility” means a plant, works or other property used for development, generation, storage, distribution or transmission of electric energy produced from resources including, but not limited to, hydroelectric, pump storage, wave, tidal, wind, solid waste, wood, straw or other fiber, coal or other thermal generation, geothermal or solar resources, or development or transmission of water for domestic or municipal purposes, waterpower or electric energy, but transmission of water shall not include water for irrigation or reclamation purposes, except as secondary to and when used in conjunction with a hydroelectric plant.
[(7)] (6) “Initial utility system” means a complete operating utility system, including energy efficiency measures and installations within the district or proposed district, capable of supplying the consumers required to be served by the district at the time of acquisition or construction with all of their existing water or electrical energy needs.
[(8)] (7) “Electric cooperative” means a cooperative corporation owning and operating an electric distribution system.
[(9)] (8) “Affected territory” means that territory proposed to be formed into, annexed to or consolidated with a district.
[(10)] (9) “Electors’ petition” means a petition addressed to the county governing body and filed with the county clerk, containing the signatures of electors registered in the affected territory, equal to not less than three percent of the total number of votes cast for all candidates for Governor within the affected territory at the most recent election at which a candidate for Governor was elected to a full term, setting forth and particularly describing the boundaries of the parcel of territory, separate parcels of territory, [municipality] city and district, or any of them, referred to therein, and requesting the county governing body to call an election to be held within the boundaries of the parcel of territory, separate parcels of territory, [municipality] city and district, or any of them, for the formation of a district, the annexation of a parcel of territory or a [municipality] city to a district, or the consolidation of two or more districts.
[(11)] (10) “County governing body” means either the county court or board of county commissioners and, if the affected territory is composed of portions of two or more counties, the governing body of that county having the greatest portion of the assessed value of all taxable property within the affected territory, as shown by the most recent assessment roll of the counties.
[(12)] (11) “Replacement value of unreimbursed investment” means original cost new less depreciation of capitalized energy efficiency measures and installations in the premises of customers of an investor owned utility.
SECTION 66. ORS 261.030 is amended to read:
261.030. Nothing contained in this chapter authorizes or empowers the board of directors of any people’s utility district to interfere with or exercise any control over any existing utility owned and operated by any electric cooperative or [municipality] city in the district unless by consent of the governing body of the electric cooperative or of the city council or the governing body of the [municipally owned] plant owned by a city, when the control of the [municipally owned] plant is vested in a governing body other than the city council or governing body of the [municipality] city. However a district may participate fully with electric cooperatives and [municipally owned] utilities owned by cities in the formation and operation of joint operating agencies for electric power under ORS chapter 262.
SECTION 67. ORS 261.035 is amended to read:
261.035. Nothing in this chapter modifies in any manner any charter provisions of any [incorporated] city [or town], or prohibits any [municipality] city from acquiring and operating its own plant.
SECTION 68. ORS 261.105 is amended to read:
261.105. (1) People’s utility districts may be created as provided in this chapter. [When so created, they] A people’s utility district may exercise all powers conferred by this chapter.
(2) When a majority of all votes cast, at an election within the boundaries of any proposed district to determine whether or not the district is to be formed, [favor] favors formation, the district shall be created.
(3) In any election to annex a [municipality] city or separate parcel of territory to an existing district, or to consolidate two or more existing districts, an affirmative vote of a majority of the votes cast from each [municipality] city or separate parcel of territory or district voting to annex or consolidate, shall be required to authorize the annexation or consolidation.
(4) Annexation to an existing district shall be subject to the provisions of ORS 198.720 (2).
SECTION 69. ORS 261.110 is amended to read:
261.110. (1) People’s utility districts may consist of territory, contiguous or otherwise, within one or more counties, and may consist of [a municipality or municipalities] one or more cities, or a portion of a [municipality] city, with or without unincorporated territory.
(2) Petitions asking that an election be held to determine whether or not a district shall be created shall set forth and particularly describe the boundaries of the proposed people’s utility district, and shall state that in the event the people within any one or more [municipalities] cities or separate parcels of territory within the proposed district vote against its formation, then that portion of the district which voted in favor of organization of a people’s utility district may be organized into the district.
(3) The name of [any municipality shall be] a city is a sufficient description of its boundaries.
(4) When any [municipality] city or separate parcel of territory voting at a formation election casts a majority vote against formation of the district, the [municipality] city or separate parcel of territory shall not be included in any district formed as a result of the election.
(5) [No municipality that owns and operates or] A city that owns or operates a publicly owned utility for development or distribution[, or both,] of electric energy or the territory [it serves] served by the city within or without the boundaries of [such municipality] the city at the time of a proposed formation of a people’s utility district [shall] may not be included in any election for [such] the formation of the district unless the inclusion is agreed to at an election by the electors of [such municipality] the city.
(6) No entire township, except when needed for location of plant or impounding purposes, or both, shall be included in formation of any district, unless the township contains not less than 10 electors. No portion of any township in excess of six sections shall be included, unless the portion contains a proportionate number of electors.
(7) No territory [which] that is part of another people’s utility district shall be included in the formation of any district, except under the conditions provided in ORS 198.720 (2), nor shall the proposed district include any territory which at the time of the proposed district’s formation is being served by an electric cooperative.
SECTION 70. ORS 261.141 is amended to read:
261.141. (1) In addition to the initiation of a people’s utility district formation, annexation or consolidation by electors’ petition:
(a) Formation of a district may be initiated by resolution of the governing body of each county in which territory of the proposed district is situated or, [where] if a [municipality] city proposes to create a district, by resolution of the city governing body;
(b) Annexation to an existing district may be initiated by resolution of the board of directors of that district; and
(c) Consolidation of two or more districts may be initiated by resolution of the board of each of the districts proposed to be consolidated.
(2) Resolutions authorized under this section shall describe the boundaries of the affected territory and, if for formation or consolidation of a district or districts, the name by which the proposed district is to be known.
SECTION 71. ORS 261.171 is amended to read:
261.171. (1) Upon its own resolution, the county governing body may, and upon receipt of an electors’ petition or resolution of the governing body of a people’s utility district or [municipality which] city that the county governing body finds to be in compliance with this chapter shall, at the earliest practical date submit the question of district formation, annexation or consolidation and, if for formation, the question of a special levy, to the electors within the affected territory at a special election. The special election may be held on the same date as a biennial primary election or general election.
(2) The notice of the election shall state the purpose of the election, describe in general terms the boundaries of the affected territory and in all other respects comply with the general laws of this state governing the time and manner of holding elections.
(3) The county governing body shall call no more than one election for formation of a district comprising substantially the same area within the same calendar year.
SECTION 72. ORS 261.180 is amended to read:
261.180. (1) [Where] If a parcel of territory or [municipality] a city is annexed to an existing people’s utility district, or two or more districts are consolidated, such annexation or consolidation shall not affect or impair the title to any property owned or held by [any such] the district or districts, or [of a municipality] any property owned or held by the annexed city, or in trust therefor, or any debts, demands, liabilities or obligations existing in favor of or against either the district or [municipality] city so annexed.
(2) The acceptance of any indebtedness at the election to determine the question of annexation shall not include any indebtedness except such as has been incurred or assumed on account of development or purchase of a utility, including the replacement value of the unreimbursed investment of an investor owned utility in energy efficiency measures and installations within the annexed area.
SECTION 73. ORS 261.200 is amended to read:
261.200. (1) If a majority of votes cast at the election [favor] favors formation of the people’s utility district and authorization of the district to impose a special levy for the purposes stated in the petition for formation, or annexation of a parcel of territory or a [municipality] city to an existing district, or consolidation of two or more districts, as the case may be, and in conformity with provisions of ORS 261.105 and 261.110, the county governing body shall issue a proclamation accordingly and file a certified copy with the county clerk of each county where the district or any portion thereof is located. The proclamation for formation of a district shall be in substantially the following form:
______________________________________________________________________________
Whereas at an election duly and regularly held on the ___ day of _____, A.D. 2___, within _____ County (or _____ Counties), State of Oregon, and within the boundaries of a proposed district as herein described, there was submitted to the electors thereof the question whether or not a people’s utility district should be incorporated as the (here insert name of district) and to give authority to impose a special levy of $____ under and pursuant to the provisions of ORS chapter 261; and
Whereas at the election so held ___ votes were cast in favor of incorporation, and ___ votes were cast against incorporation; and
Whereas the incorporation of the (here insert name of district) received the affirmative vote of the majority of the votes cast at the election;
Now, therefore, the undersigned hereby does proclaim and declare that all of that part of the State of Oregon, described as (here insert description) has been duly and legally incorporated as the _____ People’s Utility District under and pursuant to the Constitution and laws of the State of Oregon, and the district has the authority to collect the sum of $____ by special levy against the taxable property within the district.
Chairperson of the County Governing Body.
By _________
______________________________________________________________________________
(2) The proclamation for annexing a parcel of territory or a [municipality] city to an existing district or the consolidation of two or more existing districts, or both, shall be adaptations of the above proclamation.
(3) The proclamation of formation, with the notice of boundary change under ORS 308.225, shall be filed by the district with the county assessor of each county in which any portion of the district is situated, who shall thereupon enter the special levy.
(4) Expenditure of the moneys received from the special levy for the purposes stated in the petition for district formation may be made by the district without prior adoption of a budget under ORS 294.305 to 294.520.
(5) Following proclamation of
formation of a district, any person whose property has been improperly included
within a district, contrary to the provisions of ORS 261.110 (5) or (7), may
petition a county governing body to revise the district boundaries to exclude
the property. After notice to the district, and a hearing on the petition, the
county governing body shall revise the district boundaries to exclude such
property as it finds should not have been included within the district under
the standards set forth in ORS 261.110 (5) or (7). Upon such findings and
boundary revisions a district shall be permitted to refund related taxes paid [which] that are based upon assessments made after
SECTION 74. ORS 261.215 is amended to read:
261.215. From the date of the proclamation relative to formation of a people’s utility district the territory shall be a separate district to be known as the district named and specified in the proclamation. The inhabitants thereof shall be a corporation by the name and style of the utility district specified in the proclamation, and as such shall have perpetual succession, and by such name shall exercise and carry out the corporate powers and objects conferred and declared by this chapter.
SECTION 75. ORS 261.253 is amended to read:
261.253. (1) No public contract entered into by a noninvestor-owned electric utility shall contain a clause or condition that imposes an unconditional and unlimited financial obligation on the electric utility that is party to the contract unless the terms and conditions of the contract are subject to approval and are approved by the electors of the people’s utility district or [municipality] city that owns the electric utility.
(2) Nothing in subsection (1) of this section is intended to affect provisions of law requiring approval of electors for any particular type of public contract that are in effect on October 15, 1983, or that are later enacted.
(3) Nothing in subsection (1) of this section is intended to conflict with ORS 279.324 to 279.332.
(4) As used in this section:
(a) “Public contract” includes a contract, note, general obligation bond or revenue bond by which the people’s utility district or [municipality] city or any subdivision of any of them is obligated to pay for or finance the acquisition of goods, services, materials, real property or any interest therein, improvement, betterments or additions from any funds, including receipts from rates or charges assessed to or collected from its customers.
(b) “Unconditional and unlimited financial obligation” means a public contract containing a provision that the people’s utility district or [municipality] city that is party to the contract is obligated to make payments required by the contract whether or not the project to be undertaken thereunder is undertaken, completed, operable or operating notwithstanding the suspension, interruption, interference, reduction or curtailment of the output or product of the project.
SECTION 76. ORS 261.305 is amended to read:
261.305. People’s utility districts shall have power:
(1) To have perpetual succession.
(2) To adopt a seal and alter it at pleasure.
(3) To sue and be sued, to plead and be impleaded.
(4) To acquire and hold, including by lease-purchase agreement, real and other property necessary or incident to the business of the districts, within or without, or partly within or partly without, the district, and to sell or dispose of that property; to acquire, develop and otherwise provide for a supply of water for domestic and municipal purposes, waterpower and electric energy, or electric energy generated from any utility, and to distribute, sell and otherwise dispose of water, waterpower and electric energy, within or without the territory of such districts.
(5) To exercise the power of eminent domain for the purpose of acquiring any property, within or without the district, necessary for the carrying out of the provisions of this chapter.
(6) To borrow money and incur indebtedness; to issue, sell and assume evidences of indebtedness; to refund and retire any indebtedness that may exist against or be assumed by the district or that may exist against the revenues of the district and to pledge any part of its revenues. Except as provided in ORS 261.355 and 261.380, no revenue or general obligation bonds shall be issued or sold without the approval of the electors. The board of directors may borrow from banks or other financial institutions, on notes payable within 12 months, such sums as the board of directors deems necessary or advisable; however, the amounts so borrowed, together with the principal amounts of other like borrowings then outstanding and unpaid, shall not exceed the amount [which] that the board of directors estimates as the district’s net income (determined in accordance with the system of accounts maintained by the board pursuant to ORS 261.470) for the 12 full calendar months following the date of the proposed borrowing, adjusted by adding to the net income an amount equal to the estimated charges to depreciation for the 12-month period. No indebtedness shall be incurred or assumed except on account of the development, purchase and operation of a utility.
(7) To enter into rental or lease-purchase agreements to rent, lease or acquire real or personal property, or both, required for district purposes. Except when approved by a majority of the electors of the district voting on the question, a people’s utility district shall not enter into rental or leasing agreements when the annual aggregate amount of payment for any and all property directly related to a single transaction exceeds 10 percent of the revenues of the district in the preceding fiscal year.
(8) To levy and collect, or cause to be levied and collected, subject to constitutional limitations, taxes for the purpose of carrying on the operations and paying the obligations of the district as provided in this chapter.
(9) To make contracts, to employ labor and professional staff, to set wages in conformance with ORS 261.345, to set salaries and provide compensation for services rendered by employees and by directors, to provide for life insurance, hospitalization, disability, health and welfare and retirement plans for employees, and to do all things necessary and convenient for full exercise of the powers herein granted. The provision for life insurance, hospitalization, disability, health and welfare and retirement plans for employees shall be in addition to any other authority of people’s utility districts to participate in those plans and shall not repeal or modify any statutes except those that may be in conflict with the provision for life insurance, hospitalization, disability, health and welfare and retirement plans.
(10) To enter into contracts with the United States Government, with the State of Oregon, or with any other state, municipality or utility district, and with any department of any of these, for carrying out any provisions of this chapter.
(11) To enter into agreements with the State of Oregon or with any local governmental unit, utility, special district or private or public corporation for the purpose of promoting economic growth and the expansion or addition of business and industry within the territory of the people’s utility district. Before spending district funds under such an agreement, the board of directors shall enter on the written records of the district a brief statement that clearly indicates the purpose and amount of any proposed expenditure under the agreement.
(12) To fix, maintain and collect rates and charges for any water, waterpower, electric energy or other commodity or service furnished, developed or sold by the district.
(13) To construct works across or along any street or public highway, or over any lands which are property of this state, or any subdivision thereof, and to have the same rights and privileges appertaining thereto as have been or may be granted to [municipalities] cities within the state, and to construct its works across and along any stream of water or watercourse. Any works across or along any state highway shall be constructed only with the permission of the Department of Transportation. Any works across or along any county highway shall be constructed only with the permission of the appropriate county court. Any works across or along any city street shall be constructed only with the permission of the city governing body and upon compliance with applicable city regulations and payment of any fees called for under applicable franchise agreements, intergovernmental agreements under ORS chapter 190 or contracts providing for payment of such fees. The district shall restore any such street or highway to its former state as near as may be, and shall not use the same in a manner unnecessarily to impair its usefulness.
(14) To elect a board of five directors to manage its affairs.
(15) To enter into franchise agreements with cities and pay fees under negotiated franchise agreements, intergovernmental agreements under ORS chapter 190 and contracts providing for the payment of such fees.
(16) To take any other actions necessary or convenient for the proper exercise of the powers granted to a district by this chapter and by section 12, Article XI[,] of the Oregon Constitution.
SECTION 77. ORS 261.310 is amended to read:
261.310. (1) Any existing irrigation, drainage or other [municipal] district in good standing and duly organized under the laws of this state shall be eligible to qualify and do any and all things necessary or incident to the purchase, generation and distribution of electric power under the terms of this chapter without the necessity of reorganizing and complying with the organization procedure prescribed in this chapter, if the qualification is approved by a majority of the persons qualified to vote at a district election who vote on that question.
(2) Drainage districts qualifying under the provisions of this chapter may elect additional directors to make a board of five directors.
SECTION 78. ORS 261.315 is amended to read:
261.315. (1) Except as to distribution facilities located in unincorporated territory at or near the boundaries of the people’s utility district and forming an interconnected part of the distribution system within the district, as determined by the county governing body after a public hearing, no facilities then being used for the distribution of electric energy outside the boundaries of the district shall be acquired by it until the acquisition thereof is approved by a majority of the electors registered in the territory in which the facilities are located, voting on that question at an election duly called for that purpose as provided in this section. If a part of the facilities is located within a [municipality] city, the election shall be conducted so that the electors of the [municipality] city may vote separately and have their votes counted separately, and the part within any [municipality] city may not be acquired unless a majority of the electors of the [municipality] city voting on the question approves.
(2) When a district desires to acquire facilities outside its boundaries for distribution of electric energy, the board of directors shall pass a resolution declaring that purpose, specifying the facilities [which] that it desires to acquire and describing the boundaries of the territory served by the facilities so as to include all those receiving service or can be reasonably served through the facilities.
(3) A certified copy of the resolution shall be filed with the county governing body. Within 90 days thereafter, the county governing body shall designate the boundaries of the territory served by the facilities, and certify the boundaries to the counties in which they are located. The county governing body shall at the same time notify each of the counties of the call of an election for the purpose of authorizing acquisition of the facilities. This certification and notification shall be given to the county clerks of the respective counties. The notice shall state the time of the election and contain a ballot title stated in clear and concise language.
(4) The provisions of ORS 261.200 shall be complied with insofar as applicable. Ballots cast by electors of [municipalities] cities shall be separately kept and counted [as to] for each [municipality] city.
SECTION 79. ORS 261.330 is amended to read:
261.330. Any filing made by any people’s utility district upon the unappropriated waters of this state for use in the future development of a hydroelectric plant by the district shall be reserved to the district and shall not be subject to appropriation by any other person, [municipality] city or corporation, unless it is judicially determined that such filing exceeds the reasonable present and future requirements of the district, in which event the surplus or excess may be by decree of a court of competent jurisdiction released and discharged from such filing. Proceedings in court for the determination of whether or not the filing by any utility district exceeds its reasonable present and future requirements may be instituted by the State of Oregon, by the Water Resources Commission in the name of and for the State of Oregon, or by any other applicant for the right to the use of the waters involved.
SECTION 80. ORS 543.660 is amended to read:
543.660. (1) A district, alone or jointly with other districts, electric cooperatives, as defined in ORS 261.010 [(8)] (7), people’s utility districts, a cooperative as defined in ORS 62.015, municipal corporations authorized to engage in generating and distributing electricity or public utilities, as defined in ORS 757.005, engaged in the business of generating and distributing electricity, may enlarge or modify its water system for the purpose of generating electricity and may operate and maintain such facilities, notwithstanding any provision of paragraph (a) of this subsection. If a district already has hydroelectric generating capability, the district may enlarge or modify the district’s facilities used for generation of hydroelectric power. Two or more districts may, as a joint venture, generate electricity under ORS 543.650 to 543.685 so long as the structure or facility that is enlarged or modified to produce the electricity is part of the water system of at least one of the districts participating in the joint venture. However, a district may not:
(a) Construct, acquire, operate or maintain any facility or structure that is not an enlargement or modification of the district’s water system solely or primarily for the purpose of generating electricity; or
(b) Be created solely or primarily for the purpose of constructing, acquiring, operating or maintaining hydroelectric facilities.
(2) A district shall sell the excess electric energy generated at such hydroelectric facilities to the Bonneville Power Administration, a public utility as defined in ORS 757.005, an electric cooperative as defined in ORS 261.010 [(8)] (7), a people’s utility district, a cooperative as defined in ORS 62.015, a municipal corporation or a municipally owned utility. Any sale of excess electric energy shall be made in accordance with terms and conditions of the Federal Power Act, as amended by the Public Utility Regulatory Policies Act of 1978. As used in this subsection, “excess electric energy” means electric energy not used by the district to meet its own electric pumping requirements.
(3) The board of directors of the district shall establish regulations governing electric energy generation and sale under this section.
(4) Electricity shall be sold under this section only at wholesale.
DOMESTIC WATER SUPPLY DISTRICTS
SECTION 81. ORS 264.110 is amended to read:
264.110. [Communities may be incorporated] A domestic water supply district may be formed for the purpose of supplying [their] inhabitants of the district with water for domestic purposes as provided by this chapter; and, in connection therewith, may supply, furnish and sell for any use any surplus water over and above the domestic needs of its inhabitants to [any] persons[, corporations or associations, either within or without] living outside the district, or to other [communities,] water districts [or municipal corporations], school districts or other local governments as defined in ORS 174.116. All railroad rights of way or improvements thereon or rolling stock moving thereover shall be excluded from districts organized after June 9, 1943, and for purposes of ORS 264.210 to 264.320, 264.410, 264.420, 264.430, 264.470 and this section shall not be considered as property within the boundaries of such districts, unless the owner of the railroad property expressly consents to its inclusion.
SECTION 82. ORS 264.240 is amended to read:
264.240. A [municipal corporation] domestic water supply district created under this chapter [shall have and exercise within and without its boundaries the same rights and powers of eminent domain and of purchasing, selling, condemning and appropriating] may exercise the power of eminent domain both inside and outside of its boundaries, and may purchase, sell, condemn and appropriate real property, water, water rights and riparian rights[, which cities or other corporations have, to be exercised in any manner now or hereafter authorized]. A district also has the right to purchase or obtain from other [cities or like corporations] local governments as defined in ORS 174.116, water or water rights, or an interest in water or water rights, or an interest in a water pipeline owned or operated by any such [city or like corporation] local government, or to obtain jointly with any such [city or like corporation] local government, any right, or to lay and own individually or jointly with any [city or like corporation] local government, any water pipeline for the purposes specified in ORS 264.110.
SECTION 83. ORS 264.250 is amended to read:
264.250. (1) For the purpose of carrying into effect all or any powers granted by this chapter, the district, when authorized at any properly called election held for that purpose, may borrow money and sell and dispose of general obligation bonds. Except as otherwise provided by this section, the bonds shall never exceed in the aggregate two and one-half percent of the real market value of all taxable property within the [limits] boundaries of the district, computed in accordance with ORS 308.207.
(2) The bonds shall be issued from time to time by the board of commissioners in behalf of the district as authorized by the electors, and may be issued in an amount not to exceed one-half of one percent of the real market value referred to in subsection (1) of this section without the approval of the electors. The bonds shall mature serially within not to exceed 30 years from issue date, and shall bear such rate of interest, payable semiannually, as the board shall determine. The bonds shall be so conditioned that the district agrees to pay to the bearer, at a place named, the principal sum of the bonds with interest at the rate named, payable semiannually in accordance with the tenor and terms of the interest coupons attached.
(3) If the district has within its [corporate limits] boundaries a population of 300 or over, it may issue bonds in an amount which shall not exceed in the aggregate 10 percent of the real market value referred to in subsection (1) of this section.
(4) For the purpose of additionally securing the payment of the principal and interest on general obligation bonds issued under this section, the district may, by resolution of its board which shall constitute part of the contract with the holders of the bonds, pledge all or any part of the net revenue of its water system. The board may adopt such a resolution without submitting the question of the pledge to the electors of the district.
SECTION 84. ORS 264.260 is amended to read:
264.260. In addition to the authority to issue general obligation bonds, the district, when authorized at any properly called election, shall have the power to sell and dispose of revenue bonds, and to pledge as security therefor all or any part of the unobligated net revenue of the district or system, to purchase, acquire, lay out, construct, reconstruct, extend, enlarge or improve a water system, or to install hydrants for fire protection along its mains, or to perform any of those acts in combination, for the purpose of obtaining water for the domestic use of consumers, or for fire protection, or both, within or without the boundaries of the district. The revenue bonds shall be issued in the same manner and form as are general obligation bonds of the district, but they shall be payable, both as to principal and interest, from revenues only, as specified by this section. The revenue bonds shall not be subject to the percentage limitation applicable to general obligation bonds and shall not be a lien upon any of the taxable property within the [corporate limits] boundaries of such district, but shall be payable solely from such part of the revenues of the district as remain after payment of obligations having a priority and of all expenses of operation and maintenance of the district, including any taxes levied against it. All revenue bonds shall contain a clause reciting that both the principal and interest are payable solely from operating revenues of the district remaining after paying such obligations and expenses.
SECTION 85. ORS 264.310 is amended to read:
264.310. A district shall charge consumers for the water furnished and fix and collect the rates therefor. Rates charged may be fixed and classified according to the type of use and according to the amount of water used. Any contract entered into by a district with [individuals, corporations or associations] persons other than domestic users shall provide for immediate cancellation whenever no surplus supply of water exists over and above any and all demands of domestic users. A district also may contract with [other communities, water districts, individuals or corporations, private or municipal,] any person, or enter into intergovernmental agreements under ORS chapter 190, to supply, furnish and sell [them] surplus water on such terms and conditions and at such rates as the board of commissioners considers advisable.
SECTION 86. ORS 264.340 is amended to read:
264.340. (1) Any district, when authorized by the electors as provided by this subsection, may purchase fire apparatus and equipment and maintain, service and operate the same, and may [contract with any city, rural fire protection district or other municipal corporation] enter into intergovernmental agreements under ORS chapter 190 for fire protection for its inhabitants, or [to] do either or any combination of the foregoing. Such power shall only be given the board of commissioners by a majority of the votes cast by electors of the district at a special election called for such purpose by the board.
(2)(a) When the power is so granted, the board of commissioners may levy a tax not exceeding three-twentieths of one percent (.0015) of the real market value of all taxable property within the [limits] boundaries of the district, computed in accordance with ORS 308.207 for defraying the expense of providing, maintaining, operating and servicing such fire apparatus and equipment, and of [contracting with any city or rural fire protection district] intergovernmental agreements for the protection of its inhabitants from fire.
(b) Upon approval of the majority of the votes cast by electors of the district at a special election called for that purpose by the board of commissioners, the district may levy a special tax for defraying such expenses not to exceed four-tenths of one percent (.0040) of the real market value of the taxable property in the district referred to in paragraph (a) of this subsection.
(3) This section shall not apply to
any district which on
SECTION 87. ORS 264.348 is amended to read:
264.348. Copies of the fire prevention code referred to in ORS 264.342 shall be filed with the State Fire Marshal’s office and a copy shall be posted at each fire station within the [corporation] domestic water supply district.
CEMETERY MAINTENANCE DISTRICTS
SECTION 88. Section 89 of this 2003 Act is added to and made a part of ORS chapter 265.
SECTION 89. As used in this chapter, “district” means a cemetery maintenance district organized under this chapter.
SECTION 90. ORS 265.010 is amended to read:
265.010. (1) [Territory may be formed into] A cemetery maintenance district [in accordance with ORS 265.010 to 265.050] may be formed in the manner provided by this chapter.
(2) 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.
SECTION 91. ORS 265.140 is amended to read:
265.140. The board of directors shall transact all business pertinent to the affairs of [the] a cemetery maintenance district. The district [shall constitute a body politic with] has the power:
(1) To sue and be sued.
(2) To purchase, take by gift or devise, own, hold, manage and operate land for cemetery purposes.
(3) To acquire in any manner permitted by law existing cemeteries and to manage, operate, enlarge, maintain and beautify them.
(4) To plat and lay out in suitable cemetery lots and blocks for burial purposes any land it may own or control.
(5) To make such contracts and to purchase and own such personal property as may be necessary or convenient for carrying out the purposes of this chapter.
(6) To sell or perpetually lease cemetery lots or tracts for burial purposes.
(7) To set aside, at the discretion of the board of directors, not to exceed one-half of the moneys derived from the sale or lease of cemetery lots and tracts as an irreducible maintenance fund. Any money gift or bequest, if so designated in the instrument creating the same, shall be placed and held in the irreducible maintenance fund, and the interest of such fund shall be used in the perpetual upkeep and beautification of the cemetery and lots therein. Such fund shall be invested only in such securities as state funds may be invested in by the State Treasurer under the laws of this state.
(8) To do any and all things necessary or convenient for proper ownership, operation, maintenance and management of the district property.
(9) To levy a tax on all taxable property within the district, computed in accordance with ORS 308.207, for the purpose of defraying the expenses of operation of the district and purchase of necessary property therefor.
MASS TRANSIT DISTRICTS
SECTION 92. ORS 267.200 is amended to read:
267.200. A mass transit district shall constitute a municipal corporation of this state, and a public body, corporate and politic, exercising public power. It shall be considered a unit of local government for the purposes of ORS 190.003 to 190.130, a public employer for the purposes of ORS 236.610 to 236.640, and a political subdivision for the purposes of ORS 305.620. A district and its contractors engaged in operating motor vehicles to provide mass transportation on behalf of the district shall be entitled to tax refunds as allowed under ORS 319.831 to incorporated cities. It shall have full power to carry out the objects of its formation and to that end may:
(1) Have and use a seal, have perpetual succession, and sue and be sued in its own name.
(2) Acquire by condemnation, purchase, lease, devise, gift or voluntary grant real and personal property or any interest therein, located inside the boundaries of the district and take, hold, possess and dispose of real and personal property purchased or leased from, or donated by, the United States, or any state, territory, county, city or other public body, nonprofit corporation or person for the purpose of providing or operating a mass transit system in the district and aiding in the objects of the district.
(3) Contract with the
(4) Build, construct, purchase, lease, improve, operate and maintain, subject to other applicable provisions of law, all improvements, facilities or equipment necessary or desirable for the mass transit system of the district.
(5) Enter into contracts and employ agents, engineers, attorneys and other persons and fix their compensation.
(6) Fix and collect charges for the use of the transit system and other district facilities.
(7) Construct, acquire, maintain and operate and lease, rent and dispose of passenger terminal facilities, motor vehicle parking facilities and other facilities for the purpose of encouraging use of the mass transit system within the district.
(8) Enter into contracts or intergovernmental agreements under ORS [190.003 to 190.620] chapter 190 with units of local government of the State of Oregon, whether within or without the district, or with the State of Washington or with public agencies of the State of Washington, to act jointly or in cooperation with them or to provide mass transit services to areas under their jurisdictions, provided that the party contracting to receive the services shall pay to the mass transit district not less than the proportionate share of the cost of the services that the benefits to the contracting party bear to the total benefits from the service.
(9) Conduct programs and events and take other actions for the purpose of improving or maintaining employee relations.
(10) Improve, construct and maintain bridges over navigable streams subject only to ORS 382.125.
(11) Do such other acts or things as may be necessary or convenient for the proper exercise of the powers granted to a district by ORS 267.010 to 267.390.
SECTION 93. ORS 267.225 is amended to read:
267.225. (1) A mass transit district may cooperate with or enter into agreements with any city, county, port or state agency having jurisdiction or control over any right of way that is available for public travel for the joint use of such right of way. A city, county, port or state agency may cooperate with or enter agreements with a district for the joint use of any right of way open to public travel located within the district.
(2) For the purpose of providing a mass transit system, a district may commence a condemnation proceeding to acquire land or an interest in land for right of way for the system over any public right of way already located, condemned or occupied or that may be located, condemned or occupied by some other public agency for the purpose of travel by the public. The proceeding shall be conducted as provided by the laws of this state for the condemnation of land or an interest in land for right of way for highway purposes. At the time of rendering judgment for compensation or damages, the court shall enter a judgment or decree authorizing the district to occupy and use the right of way, if necessary, in common with the public agency already occupying or owning the right of way, and defining the terms and conditions upon which the right of way shall be so occupied and used in common.
NOTE: Section 94 was deleted by amendment. Subsequent sections were not renumbered.
TRANSPORTATION DISTRICTS
SECTION 95. ORS 267.550 is amended to read:
267.550. (1) A transportation district [shall constitute a municipal corporation of this state, and a public body, corporate and politic, exercising public power. It shall have] has full power to carry out the objectives of its formation and to that end may have and use a seal, have perpetual succession, sue and be sued in its own name, and enter into contracts.
(2) Except as ORS 267.510 to 267.650 provides to the contrary, the powers of the district shall be vested in the governing body of the district.
(3) A transportation district formed under ORS 267.510 to 267.650 shall be considered a district for all purposes in ORS chapter 198.
SECTION 96. ORS 267.560 is amended to read:
267.560. A transportation district may provide public transportation and terminal facilities for public transportation including local aspects thereof transferred to the district by one or more other [public corporations, cities or counties] public bodies as defined in ORS 174.109, through agreements in accordance with ORS 267.510 to 267.650.
METROPOLITAN SERVICE DISTRICTS
SECTION 97. ORS 268.020 is amended to read:
268.020. As used in this chapter:
(1) “District” means a metropolitan service district established under this chapter.
(2) “District charter” means a home rule charter enacted by the electors of a district under section 14, Article XI, Oregon Constitution.
(3) “Metropolitan area” means that
area which on
(4) “Improvement” means the facilities and other property constructed, erected or acquired by and to be used in the performance of services authorized to be performed by a district.
(5) “Metropolitan significance” means having major or significant district-wide impact.
(6) “Person” means [the state or a public or private corporation, local government unit, public agency,] a public body as defined in ORS 174.109, individual, corporation, partnership, association, firm, trust, estate or any other legal entity.
(7) “Regional framework plan” means the Metro regional framework plan defined in ORS 197.015 and any district ordinances that implement the plan.
SECTION 98. ORS 268.300 is amended to read:
268.300. (1) A metropolitan service district [shall constitute a municipal corporation of this state, and a public body, corporate and politic, exercising public power. It shall have] has full power to carry out the objectives of its formation and the functions authorized pursuant to its charter and to that end may have and use a seal, have perpetual succession, sue and be sued in its own name, and enter into contracts.
(2) For purposes of its authorized
functions, a district may [contract with
the
SECTION 99. ORS 268.393 is amended to read:
268.393. (1) At least 50 days prior to the effective date of a new or amended land use planning ordinance of a metropolitan service district, the district shall cause written notice of the new or amended ordinance to be mailed to every [government] city and county located within the district that exercises land use planning authority under ORS 197.175.
(2) The notice described in this section shall contain substantially the following language in the body of the notice:
______________________________________________________________________________
On (date of ordinance adoption), the Metropolitan Service District adopted ordinance (number). The district has determined that this ordinance will affect the permissible uses of property in your jurisdiction and may reduce the value of subject property.
Ordinance (number) is available for inspection at the Metropolitan Service District offices located at (address). A copy of the ordinance (number) also is available for purchase at a cost of ____.
For additional information, contact the Metropolitan Service District at (telephone number).
______________________________________________________________________________
(3) A [local government] city or county that receives notice under this section shall cause a copy of the notice to be mailed to every owner of real property that will be rezoned as a result of the adoption of the ordinance. Notice to a landowner under this subsection shall be mailed at least 30 days prior to the effective date of the subject ordinance.
(4) The district shall reimburse [the local government] a city or county for all usual and reasonable costs of providing notice required under subsection (3) of this section.
LIBRARY DISTRICTS
SECTION 100. ORS 357.261 is amended to read:
357.261. A library district [shall constitute a municipal corporation of this state, and a public body, corporate and politic, exercising public power. Every district shall have] has the power:
(1) To have and use a common seal.
(2) To sue and be sued in its name.
(3) To make and accept any and all contracts, deeds, leases, releases and documents of any kind which, in the judgment of the board, are necessary or proper to the exercise of any power of the district, and to direct the payment of all lawful claims or demands.
(4) To assess, levy and collect taxes to pay the cost of acquiring sites for and constructing, reconstructing, altering, operating and maintaining a library or any lawful claims against the district, and the operating expenses of the district.
(5) To employ all necessary agents and assistants.
(6) To call elections after the formation of the district.
(7) To enlarge the boundaries of the district as provided by ORS 198.705 to 198.955.
(8) Generally to do and perform any and all acts necessary and proper to the complete exercise and effect of any of its powers or the purposes for which it was formed.
(9) Whenever authorized by the electors, to issue general obligation bonds of the district. However, the aggregate amount of general obligation bonds issued and outstanding at any one time shall not exceed two and one-half percent of the real market value of all taxable property of the district, computed in accordance with ORS 308.207.
(10) To exercise those powers granted to local government units for public libraries under ORS 357.410.
COUNTY ROAD DISTRICTS
SECTION 101. ORS 371.060 is amended to read:
371.060. Every drainage district consisting of 5,000 acres or more, and every [incorporated] city, shall constitute a separate road district. The county court shall not divide such territory to include any of it in any other road district unless the people of the drainage district or [incorporated] city [shall], by majority vote at [a municipal] an election held pursuant to law, vote that [their municipal] the territory be included by the county court in a road district established by the county court. The county court may include in the road district of any drainage district contiguous property adjoining or adjacent to such drainage district, but in no event shall the total area added by the county court be more than 50 percent of the area of the drainage district.
SECTION 102. ORS 371.067 is amended to read:
371.067. Any construction, maintenance and repairs on roads within the boundaries of [an incorporated] a city that constitutes an entire and separate road district under ORS 371.060 shall be only on such public roads, as defined in ORS 368.001, within the district as are designated by order of the governing body of the city. The governing body of the city may cooperate with the county court in construction, maintenance and repairs on roads within the boundaries of the city.
SECTION 103. ORS 371.105 is amended to read:
371.105. (1) All tax moneys levied and collected by the road district shall be credited and kept as a special fund by the county treasurer to the account of the road district. No part of such fund shall be transferred or loaned.
(2) Except as provided in subsection (3) of this section, the whole amount of the tax moneys levied and collected by the road district shall be expended under the supervision of the county court upon roads within the road district boundary of the district voting the tax as the boundaries existed at the time the tax was voted, and not elsewhere.
(3) The fund collected from taxes levied and assessed by a road district comprising and constituted from [an incorporated] a city, and from property situated within [such municipal corporation] the city, shall be expended under the supervision of the governing body of the [incorporated] city and not under the supervision of the county court. This fund shall be paid over to the [incorporated] city by the county treasurer when collected.
SPECIAL ROAD DISTRICTS
SECTION 104. ORS 371.305 is amended to read:
371.305. Contiguous territory lying within any county and not incorporated within the limits of [any incorporated] a city may be formed into, or included in, a special road district in the manner provided by ORS 371.305 to 371.360.
SECTION 105. ORS 371.336 is amended to read:
371.336. [From the date of formation, the] A special road district [is a municipal corporation] may be formed for the purpose of improving roads within the district. A special road district [shall have] has the power:
(1) To make contracts.
(2) To acquire, hold, receive and dispose of real and personal property.
(3) To sue and be sued.
(4) To exercise the power of eminent domain.
(5) To assess, levy and collect taxes on all taxable real property within the district.
(6) To do any other act necessary to carry out the purposes of ORS 371.305 to 371.360.
ROAD ASSESSMENT DISTRICTS
SECTION 106. ORS 371.405 is amended to read:
371.405. As used in ORS 371.405 to 371.535[,]:
(1) “County court” includes the board of county commissioners sitting for the transaction of general county business.
(2)
“District” means a road assessment district organized under ORS 371.405 to
371.535.
SECTION 107. ORS 371.480 is amended to read:
371.480. The board of directors may contract with any [incorporated] city within or adjacent to the district for the repair, improvement and reconstruction of streets or public ways within the [incorporated] city, where the improvement of the streets is a part of the general road system of the district. The contract shall be upon terms mutually agreeable to the board of directors of the district and the governing body of the city.
SECTION 108. ORS 371.485 is amended to read:
371.485. [The] A road assessment district has authority over all roads and highways within the district, except state primary and secondary highways, and streets, alleys or public ways within [an incorporated] a city within the district other than as provided by ORS 371.480.
SECTION 109. ORS 371.520 is amended to read:
371.520. (1) Upon the organization of [the] a road assessment district the entire area thereof shall be excluded by such organization from any existing road district theretofore existing and shall not be included within any other road district thereafter created during the life of the road assessment district.
(2) Upon the organization of the road assessment district there shall be credited to it the portion of all special road district levies unexpended in the county treasurer’s office, or levied upon and uncollected, derived from the area within the road assessment district, except the amounts levied upon and remaining uncollected, or remaining unexpended in the county treasurer’s office, derived from assessments upon property within [an incorporated] a city included within the road assessment district, which shall be paid to the city as provided by law prior to June 16, 1945, for use by the city upon its local streets.
(3) The inclusion of [an incorporated] a city within the road assessment district shall not prevent the [incorporated] city from levying general or special taxes or assessments upon the property within the city for the purpose of improvement, maintenance, repair or reconstruction of the city streets as authorized or permitted by law or the charter of the city.
HIGHWAY LIGHTING DISTRICTS
SECTION 110. ORS 372.140 is amended to read:
372.140. [The] A highway lighting district may:
(1) Make contracts.
(2) Hold, receive and dispose of real and personal property within and without its described boundaries.
(3) Do all other acts and things requisite, necessary or convenient in carrying out the objects of the district or exercising the powers expressly conferred upon it by this chapter.
(4) Sue and be sued, plead and be impleaded in all actions and suits or other proceedings brought by or against it.
(5) Have and exercise within and without its boundaries the same rights and powers as other local governments as defined in ORS 174.116, in [of] purchasing and selling real property and rights of way, [which cities or other corporations have,] to be exercised in the manner authorized.
(6) Purchase in the open market or obtain from other public utility corporations, electric energy for lighting purposes and poles, wires, conduits, lighting fixtures and all types of property necessary to enable the district to carry out its purposes.
(7) Enter into contracts with any person:
(a) For the construction, maintenance and operation, or any of these, of the lighting facilities or any one or more of such services.
(b) For the renewal, upkeep and maintenance of the lighting facilities or any part thereof.
(c) For the use of any lighting facilities if and when owned by such person.
(8) Contract with the state, by and through the Department of Transportation, and its successors in interest, with respect to any phases of the lighting of any highway within the district which is owned by the state or under its control.
SECTION 111. ORS 401.842 is amended to read:
401.842. A
(1) To have and use a common seal.
(2) To sue and be sued in its name.
(3) To make and accept any and all contracts, deeds, leases, releases and documents of any kind which, in the judgment of the board, are necessary or proper to the exercise of any power of the district, and to direct the payment of all lawful claims or demands.
(4) To assess, levy and collect taxes to pay the cost of acquiring sites for and constructing, reconstructing, altering, operating and maintaining a 9-1-1 emergency reporting system or any lawful claims against the district, and the operating expenses of the district.
(5) To employ all necessary agents and assistants.
(6) To call elections after the formation of the district.
(7) To enlarge the boundaries of the district as provided by ORS 198.705 to 198.955.
(8) Generally to do and perform any and all acts necessary and proper to the complete exercise and effect of any of its powers or the purposes for which it was formed.
HEALTH DISTRICTS
SECTION 112. ORS 440.320 is amended to read:
440.320. (1)(a) Health districts may be [incorporated as municipal corporations] formed for the purposes of:
(A) Providing clinically related diagnostic, treatment and rehabilitative services on an inpatient or outpatient basis;
(B) Providing outreach programs in health care education, health care research and patient care;
(C) Serving as a resource for health care providers in the district; and
(D) Promoting the physical and mental health and well-being of district residents.
(b) [Such municipal corporations] Health districts may consist of territory in one or more counties, or of a city with or without unincorporated territory. A city shall not be divided in the formation of a health district.
(c) A health district may provide services to persons residing outside its boundaries. A health district [organized under ORS 440.315 to 440.410] may provide services within the boundaries of another health district [organized under ORS 440.315 to 440.410] only with the written permission of that health district.
(2) A health district [organized under ORS 440.315 to 440.410] may include within its boundaries all or any part of the territory of a port district organized under ORS chapter 777 if the port district does not then operate a hospital.
SECTION 113. ORS 440.360 is amended to read:
440.360. [Any corporation formed under this chapter shall have] A health district has all [the] powers necessary to carry out the purposes of ORS 440.315 to 440.410, including, but not limited to, the [following] power:
(1) To provide directly or indirectly any physical or mental health related service.
(2) To make any contract or agreement, to purchase and lease real and personal property, to enter into business arrangements or relationships with public or private entities and to create and participate fully in the operation of any business structure, including the development of business structures and arrangements for health care delivery systems and managed care plans.
(3) To participate in community sponsored health screening, prevention, wellness, improvement or other activities that address the physical or mental health needs of district residents. Such participation may include clinical, financial, administrative, volunteer or other support considered appropriate by the board.
(4) To perform any other acts that in the judgment of the board are necessary or appropriate to accomplish the purposes of ORS 440.315 to 440.410.
SECTION 114. ORS 440.370 is amended to read:
440.370. A health district may exercise within its boundaries the [same rights and powers] power of eminent domain and [of purchasing, selling, condemning and appropriating] may purchase, sell, condemn and appropriate real property, water, water rights and riparian rights[, which cities and towns or other corporations have, to be exercised in any manner authorized by law].
SECTION 115. ORS 440.505 is amended to read:
440.505. (1) [Municipal corporations designated as ports] A port may construct, maintain and operate hospitals within [their respective] its boundaries, subject to the provisions and limitations upon
indebtedness of [such municipal
corporations] the port imposed
by law. However, after
(2) Should any port district under authority of subsection (1) of this section after August 20, 1957, construct, maintain and operate a hospital or hospital facilities and levy a tax for any indebtedness or other expense incurred therefor, all taxable property in the port district and also within a health district then operating hospital facilities shall be exempt from all taxes levied by a port district for such hospital purposes.
SANITARY DISTRICTS
SECTION 116. ORS 450.075 is amended to read:
450.075. [Every] A sanitary district may:
(1) Have and use a common seal.
(2) Sue and be sued in its name.
(3) Acquire, construct, reconstruct, alter, enlarge, renew, replace, operate and maintain such sewage collection and disposal systems as in the judgment of the board are necessary and proper for the area of the district. In the performance of these functions, either in or out of the district, it may join with any [county, city or other district or governmental agency] other public body as defined in ORS 174.109, a federal agency or another state in the joint establishment, maintenance and operation of such works, and may contract therefor within the limits of authority conferred by ORS 450.005 to 450.245.
(4) Permit the use, by lease or otherwise, of any property of the district by any other [district, city or other governmental agency] public body as defined in ORS 174.109, a federal agency or another state.
(5) Acquire by purchase, gift, devise, condemnation proceedings or otherwise, such real and personal property and rights of way, either within or without the limits of the district, as in the judgment of the board are necessary or proper to the exercise of its powers, and to pay for and hold the same.
(6) Make and accept contracts, deeds, releases and documents that, in the judgment of the board, are necessary or proper in the exercise of any of the powers of the district.
(7) Issue bonds as provided in ORS 450.095 to 450.125.
(8) Determine the rate of levy of taxes in the district, and fix sewer rentals, charges and assessments as provided in ORS 450.130 to 450.175.
(9) Employ and pay necessary agents, employees and assistants.
(10) Lay its sewers and drains in any public street or road in the county, and for this purpose enter upon it and make all necessary and proper excavations, restoring it to its proper condition. However, the consent of the proper city, county or state authorities, as the case may be, shall first be obtained and the conditions of such consent complied with.
(11) Maintain and operate disposal sites and solid waste collection and disposal systems in compliance with ORS 459.005 to 459.437, 459.992 (1) and (2) and 466.995 (1).
(12) Call all necessary elections.
(13) Compel all residents and property owners in the district to connect their houses and structures requiring sewage or drainage disposal with adjacent street sewers, drains or other sewage disposal system of the district.
(14) Do any act necessary or proper to the complete exercise and effect of any of its powers or for the purposes for which it was formed.
(15) Make and enforce all necessary and proper regulations for:
(a) The cleanliness of roads and streets of the district.
(b) All other sanitary purposes not in conflict with the laws of this state.
(16) Make and enforce necessary and proper regulations governing the storage, collection, transportation and disposal of solid wastes where such regulations are supplemental to the requirements of the Environmental Quality Commission adopted pursuant to ORS 459.045 and are necessary to meet special local conditions.
SECTION 117. ORS 450.160 is amended to read:
450.160. (1) In case the whole or any portion of the cost of sewers, drains or sewage treatment plants is assessed against the property directly benefited and the owner of the property fails to pay the amount of the lien, or any portion thereof, or the interest thereon, when they become due, the board may proceed to foreclose the lien in any manner provided by law for the collection of liens by [municipalities] local governments as defined in ORS 174.116 and may provide by ordinance a general procedure for the collection of liens in any manner not inconsistent with law.
(2) The provisions of ORS 223.405 to 223.485 relating to reassessment shall be available to sanitary districts where applicable.
WATER AUTHORITIES
SECTION 118. ORS 450.693 is amended to read:
450.693. A water authority may provide any of the services that it is authorized to provide under ORS 450.600 to 450.989 to other [municipalities] local governments as defined in ORS 174.116 situated within the boundaries of the authority at wholesale, retail or a combination of wholesale and retail.
SECTION 119. ORS 450.695 is amended to read:
450.695. (1) A water authority may acquire water rights from any [municipality or any district, as defined in ORS 543.655] local government as defined in ORS 174.116. Upon request by the authority if the water right acquired was for municipal use, the Water Resources Commission shall issue a new water right certificate to the water authority preserving the previously established priority of water rights.
(2) In accordance with ORS 540.520 and 540.530, a water authority may change the points of diversion of water or move the water intake sources as specified in the water right permits or certificates of those [districts or municipalities] local governments as defined in ORS 174.116 that were merged into the authority.
SANITARY AUTHORITIES
SECTION 120. ORS 450.817 is amended to read:
450.817. A sanitary authority may provide any of the services that it is authorized to provide under ORS 450.600 to 450.989 to other [municipalities] local governments as defined in ORS 174.116 situated within the boundaries of the authority at wholesale, retail or a combination of wholesale and retail.
SECTION 121. ORS 450.835 is amended to read:
450.835. [The] A sanitary authority may, in performing the powers conferred by ORS 450.830:
(1) Contract with [any city or county, any district organized for a public purpose, any other governmental agency or] any person, [partnership, association or corporation] or enter into intergovernmental agreements under ORS chapter 190, for the use or joint operation of all or any portion of any sewage disposal or drainage system [owned or controlled by such city, county, district, agency, person, partnership, association or corporation]; or
(2) Purchase all or any portion of any sewage disposal or drainage system [from such city, county, district, agency, person, partnership, association or corporation] on such terms as are fair and reasonable. Where the area served by such system, or part thereof, is situated within the authority, the authority may agree, on such terms as are fair and reasonable, to furnish sewage disposal or drainage functions for the area then served by such sewage disposal or drainage system. Under this subsection, as a part of the purchase agreement and on such terms as are fair and reasonable, the authority may assume liability for any outstanding bonded or other indebtedness incurred prior to the time of purchase in connection with the facilities to be purchased.
SECTION 122. ORS 450.875 is amended to read:
450.875. (1) In case the whole or any portion of the cost of sewage treatment plants, trunk or lateral sewers or drains is assessed against property directly benefited and the owner of the property fails to pay the amount of the lien, or any portion thereof, or the interest thereon, when due, the board may proceed to foreclose the lien in any manner provided by law for the collection of liens by [municipalities] local governments as defined in ORS 174.116 and may provide by ordinance a general procedure for the collection of liens in any manner not inconsistent with law.
(2) The provisions of ORS 223.405 to 223.485 relating to reassessment shall be available to sanitary authorities where applicable.
COUNTY SERVICE DISTRICTS
SECTION 123. ORS 451.410 is amended to read:
451.410. As used in ORS 451.410 to 451.610, unless the context indicates otherwise:
(1) “County court” includes the board of county commissioners.
(2) “District” means a [municipal corporation] county service district established under ORS 451.410 to 451.610 to provide service facilities in a county or counties.
(3) “Service facilities” means public service installations, works or services provided within a county or counties for any or all of the purposes specified in ORS 451.010.
(4) “Owner” shall be deemed to be the record owner of real property or holder of a duly recorded contract for purchase of real property within the district.
(5) “Formation” has the meaning given that term by ORS 198.705 (9).
(6) “Change of organization” has the meaning given that term by ORS 198.705 (5).
(7) “County” has the meaning given that term by ORS 198.705 (16).
SECTION 124. ORS 451.485 is amended to read:
451.485. The county court shall be the governing body of [any] a county service district established under ORS 451.410 to 451.610. [Such] A district shall be [a municipal corporation] known by the name or number specified in the order declaring its formation and by that name shall exercise and carry out the [corporate] powers and [objects] duties conferred and declared in this chapter. Before proceeding to construct or provide any service facilities authorized by this chapter, the governing body of the district shall make an order:
(1) Determining the service facilities to be constructed, maintained and operated and the part of the work to be undertaken immediately.
(2) Determining the manner of financing the construction, maintenance and operation of the service facilities.
(3) Determining the method by which the district shall bear the share of the cost of construction of the service facilities [which] that is to be apportioned to the district.
(4) Where it appears that any service facilities to be constructed will provide service to areas outside the district at some future date, determining the equitable and fair share of the cost of construction of such facilities [which] that should be borne by such areas, which share shall be borne by the revolving fund established under ORS 451.540, by funds obtained by the county under ORS 280.055 or by any other method of financing described by ORS 451.490 until such areas are served by the facilities.
(5) Where the service facilities of the district are to be integrated into other service facilities constructed or being constructed by another district or by other public [agencies] bodies as defined in ORS 174.109, determining the fair and equitable amount the district should assume as its share of the construction of such other service facilities, which amount shall be paid to the other district or public [agencies] body upon terms and conditions to which the governing body of the district has agreed.
(6) In the case of sewage works, where trunk or interceptor sewers, treatment plants and similar facilities are to be charged to all property within the district while lateral sewers, street mains and similar facilities are to be charged only to property to be served immediately by the system, determining the fair and equitable share of the total cost to be charged to areas within the district.
(7) If any of the cost of the work is to be assessed against benefited property, describing portions of the district, if any, within which service facilities will not be financed by assessment.
SECTION 125. ORS 451.520 is amended to read:
451.520. (1) When assessments are made under ORS 451.410 to 451.610 they shall be entered in a permanent lien docket which shall be kept in the office of the county clerk of the county. The docket shall show the amount of each lien, property against which it has been assessed, the owner thereof and such additional information as is required to keep a permanent and complete record of the assessment and the payments thereon.
(2) If the owner of the property against which an assessment has been made fails to pay the assessment, or any portion thereof, or the interest thereon, when due, the district may proceed to foreclose the lien in any manner provided by law for the collection of liens by [municipalities] local governments as defined in ORS 174.116 or may provide by ordinance a general procedure for the collection of such liens in any manner not inconsistent with law.
(3) The provisions of ORS 223.405 to 223.485 relating to reassessment shall be available to the district, where applicable, in connection with assessments made under ORS 451.410 to 451.610.
(4) In addition to the procedure provided by subsections (1), (2) and (3) of this section, the provisions of ORS 372.170 and 372.180 shall be available to the district, where applicable, in connection with assessments made under ORS 451.410 to 451.610.
RURAL FIRE PROTECTION DISTRICTS
SECTION 126. ORS 478.300 is amended to read:
478.300. (1) In addition to the authority to enter into intergovernmental agreements under ORS [190.003 to 190.620] chapter 190, a rural fire protection district[, city, municipal corporation or other governmental agency,] or other public body as defined in ORS 174.109 may contract with any person for the purpose of affording fire fighting, protection or prevention facilities or road-lighting facilities and services, or both, to such person.
(2) When any agreement or contract is entered into pursuant to ORS [190.003 to 190.620] chapter 190 or subsection (1) of this section to provide fire protection service, the rural fire protection district[, city, municipal corporation or governmental agency] or other public body providing such service shall have authority over open burning and the issuance of fire permits in the area served, and may in accordance with this chapter make reasonable rules and regulations relating thereto.
SECTION 127. ORS 478.990 is amended to read:
478.990. (1) Violation of any provision of ORS 478.930 is a Class D violation. Each day’s refusal to remove fire hazards after notice by the inspecting officer to the owner of the premises where the hazard exists is a separate offense.
(2) Burning without a permit required under ORS 478.960 (1) or in violation of a condition thereof is a misdemeanor.
(3) Violation of ORS 478.960 (4) is a misdemeanor.
(4) Subject to ORS 153.022 and 153.025, violation of any rule or regulation made by a rural fire protection district[, city, municipal corporation or governmental agency] or other public body, as defined in ORS 174.109, pursuant to ORS 478.300 (2) is a misdemeanor. [Violations may be prosecuted in state or municipal courts when violations occur in the municipality making such rules or regulations. Justice courts have concurrent jurisdiction with circuit courts of violations.]
GEOTHERMAL HEATING DISTRICTS
SECTION 128. ORS 523.030 is amended to read:
523.030. [Communities may be incorporated] A geothermal heating district may be formed for the purpose of supplying [their] inhabitants of the district with geothermal heat as provided by this chapter[;]. [and,] In connection [therewith] with supplying geothermal heat, a district may supply, furnish and sell for any use any surplus geothermal heat over and above the heating needs of its inhabitants to [any] persons[, corporations or associations, either within or without] outside the district, or to school districts or other [communities or municipal corporations] local governments as defined in ORS 174.116. All railroad rights of way or improvements thereon or rolling stock moving thereover shall be excluded from districts organized under ORS 198.010, 198.180, 198.520, 198.710, 199.420, 255.012, 366.321, 451.573 and this chapter and for purposes of this chapter shall not be considered as property within the boundaries of such districts, unless the owner of the railroad property expressly consents to its inclusion.
SECTION 129. ORS 523.050 is amended to read:
523.050. A geothermal heating district may purchase, sell and hold interests in water and real property in carrying out the objects of the district. A district also has the right to purchase or obtain from [other] cities or [like corporations] other geothermal heating districts, geothermal heat, or an interest in geothermal heat, or an interest in a geothermal heat pipeline owned or operated by [any such] a city or [like corporation] other geothermal heating district, or to obtain jointly with [any such] a city or [like corporation] other geothermal heating district, any right, or to lay and own individually or jointly with any city or [like corporation] other geothermal heating district, any geothermal heat pipeline for the purposes specified in ORS 523.030.
SECTION 130. ORS 523.130 is amended to read:
523.130. A geothermal heating district shall charge consumers for the geothermal heat furnished and fix and collect the rates therefor. Rates charged may be fixed and classified according to the type of use and according to the amount of geothermal heat used. Any contract entered into by a district with [individuals, corporations or associations] persons other than domestic users shall provide for immediate cancellation whenever no surplus supply of geothermal heat exists over and above any and all demands of domestic users. A district also may contract with [other communities, geothermal heat districts, individuals or corporations, private or municipal,] any person or may enter into an intergovernmental agreement under ORS chapter 190 to supply, furnish and sell [them] surplus geothermal heat on such terms and conditions and at such rates as the board of commissioners considers advisable.
SECTION 131. ORS 523.240 is amended to read:
523.240. The [district] board of a geothermal heating district may provide in the improvement resolution that the construction work will be done in whole, or in part, by the district, by a contract or by any other [governmental agency] public body as defined in ORS 174.109, or by any combination thereof.
IRRIGATION DISTRICTS
SECTION 132. ORS 545.057 is amended to read:
545.057. The holders of title, or evidence of title, representing a majority of the acreage of any body of land adjacent to the boundaries of any irrigation district may file with the board of directors of the district a written petition requesting that the body of land be included in the district. For purposes of this section, the body of land may include or consist of one or more parcels of less than one acre, without regard to whether or not the parcels are city lots or tracts of a platted subdivision or are chiefly available for residence purposes. When the body of land is located within the boundary of [an incorporated] a city, the petition shall be approved by the governing body of the city before presentation to the board of directors. The petition shall describe the tracts or body of land owned by the petitioners. Reference to the assessor’s map and tax lot number is sufficient for the description of lands required under this section. The petition shall give assent of the petitioners to the inclusion into the district of the lands described in the petition. The petition must be acknowledged in the same manner that conveyances of land are required to be acknowledged.
SECTION 133. ORS 545.257 is amended to read:
545.257. When an irrigation district is authorized by the electors of the district as provided in ORS 545.305 and when it appears necessary, proper or beneficial to its inhabitants, the irrigation district may:
(1) Acquire by gift, lease, purchase, condemnation or other legal means, domestic and municipal water works or water systems, and property incident to the works or systems, including reservoirs, pumps, mains, stations, water, water rights and all appurtenances. As a part of a transaction of acquisition, the district may assume any outstanding obligations on the water works or water systems. However, a right of condemnation shall not be granted against property of [an incorporated] a city.
(2) Construct, reconstruct, equip, own, maintain, operate, sell, lease and dispose of, domestic and municipal water works or systems and property, and all appurtenances incident to the works, systems or property.
(3) Furnish water for domestic and municipal uses to premises and inhabitants within its district. In connection with furnishing water for domestic and municipal use, the district may supply, furnish and sell, for the uses mentioned in this section, any surplus water over and above the domestic and municipal needs of its inhabitants, to persons[, incorporated communities, water districts, or other municipal or quasi-municipal districts] or other public bodies as defined in ORS 174.109, either within or outside the district. However, the power to furnish water for domestic and municipal uses granted by this section shall not be exercised in such a manner as to impair the service of the district in furnishing water for irrigation purposes.
DRAINAGE DISTRICTS
SECTION 134. ORS 547.045 is amended to read:
547.045. (1) Whenever any diking or drainage district is sought to be created and organized or is created and organized in the manner provided by law, within the boundaries of which are located any lands belonging to the state that have been acquired or used by or for any state institution described in ORS 179.321, the [assistant director, as defined in ORS 179.010, of the division having jurisdiction over the institution] Director of Human Services may sign any petition or objections thereto for the organization of such district and exercise on behalf of the state with respect to the district and the land therein belonging to the state, all the rights and privileges of a landowner within the district.
(2) Whenever any such district or proposed district includes any lands belonging to any public body [created under the laws of this state] as defined in ORS 174.109, the presiding officer of such public body, or other member of the governing body of such public body, when thereto authorized by a resolution of the governing body thereof, may sign such petition or objection thereto on behalf of the public body, and exercise with respect to the district and the land therein belonging to the public body, all the rights and privileges of a landowner in the district, including the right to be a supervisor of the district.
(3) [Such] Lands belonging to [the state or to] a public body as defined in ORS 174.109 shall be subject to the same burdens and liabilities and entitled to the same benefits as lands in the district belonging to private individuals. The [division having jurisdiction over the institution] Department of Human Services may pay from any appropriations made for the operation and maintenance of any institution, the lands of which have been included in any diking or drainage district, any charges billed to the [division] department or any assessments levied against such lands by the diking or drainage district.
WATER IMPROVEMENT DISTRICTS
SECTION 135. ORS 552.113 is amended to read:
552.113. (1) This chapter shall not be construed to affect, amend or repeal any other law of Oregon or to affect or impair the vested rights of any person[, municipal corporation, irrigation district, drainage district, the state, or any county] or public body as defined in ORS 174.109 to the use of water or rights in the use of water.
(2) A water improvement district formed under this chapter shall include not less than 1,000 acres of land. Lands located within the boundaries of a city, domestic water supply corporation, irrigation district, drainage district or other similar special district providing water for use or water control may be included within the boundaries of a water improvement district without the consent of the city or other district.
(3)(a) If any part of a city or other special district is included within the boundaries described in a petition for creation of a district or for annexation of territory to a district, within three days after the petition is filed, the petitioners shall notify the city or other district of the filing of the petition.
(b) The city or other district may withdraw the territory within its boundaries from the proposed water improvement district or annexation by describing the area within the city or other district in a resolution and filing the resolution with the county board within 90 days after the filing of the petition. If a withdrawal is so filed, the area within the city or other district shall not be included within the proposal.
SECTION 136. ORS 552.305 is amended to read:
552.305. A water improvement district [shall constitute a governmental subdivision of this state, and a public body, corporate and politic, exercising public power. It shall have] has full power to carry out the objects of its creation and to that end may:
(1) Have and use a seal.
(2) Have perpetual succession.
(3) Sue and be sued in its own name.
(4) Acquire by condemnation, purchase, devise, gift or voluntary grant real and personal property or any interest therein, located inside or outside of the boundaries of the district, and take, hold, possess and dispose of real and personal property purchased from, or donated by, the United States, or any state, territory, [county, city or other municipal corporation] public body as defined in ORS 174.109 or person for the purpose of aiding in the objects of the district.
(5) [Contract with the
(6) Build, construct, purchase, improve, operate and maintain, subject to other applicable provisions of law, all works necessary or desirable under any engineering plan adopted by the district.
(7) Enter into contracts and employ agents, engineers and attorneys.
(8) Appropriate and acquire water and water rights and sell, lease and deliver water for irrigation and other purposes both inside and outside the district.
(9) Do such other acts or things as may be necessary for the proper exercise of the powers granted to make the greatest beneficial use of the waters of the district.
SECTION 137. ORS 552.320 is amended to read:
552.320. A water improvement district may:
(1) Acquire, construct, reconstruct, equip, own, maintain, operate, sell, lease and dispose of domestic, industrial and municipal water works or systems and property and all appurtenances incident thereto.
(2) Furnish water for domestic, industrial and municipal uses to premises and inhabitants within the district, and in connection therewith, may supply, furnish and sell any surplus water storage or carrying capacity over and above the domestic, industrial and municipal needs of its inhabitants to persons[, corporations, cities, water districts or other municipal or quasi-municipal districts] or public bodies as defined in ORS 174.109, either within or without the district. However:
(a) A district shall not sell, offer to sell, lease or deliver water within a city that is receiving water for any purpose from a public utility as defined by ORS 757.005; and
(b) The power to furnish water for domestic, industrial and municipal uses under this section shall not be exercised in such a manner as to impair the service of the district in furnishing water for its inhabitants.
WATER CONTROL DISTRICTS
SECTION 138. ORS 553.010 is amended to read:
553.010. As used in this chapter, except where the context clearly indicates a different meaning:
(1) “Board” means the board of directors of a water control district created under the provisions of this chapter.
(2) “District” means a water control district created under this chapter.
(3) “Court” means the county court having jurisdiction over a water control district and includes the board of county commissioners.
(4) “Land” or “tract of land” means real property, together with improvements thereon, whether publicly or privately owned, within a district.
(5) “Landowner,” “owner,” “owner of land” and “owner in fee” are synonymous and mean a person, [firm, private corporation, association, municipal corporation, public corporation, county, the State of Oregon] public body as defined in ORS 174.109, or the federal government or any agency thereof, owning a tract of land situated within a district, or within the boundaries of a proposed district. The vendee named in a bona fide contract of sale of a tract of land situated within a district shall be considered as a landowner to the exclusion of the vendor. Whenever two or more persons own a tract of land as tenants in common or by entirety, each such person shall be regarded as a landowner. The guardian, administrator or executor authorized to act as such of a person or estate owning land within a district shall be considered a landowner.
(6) “Works” means dams, storage reservoirs, canals, ditches, dikes, levees, revetments, and all other structures, facilities, improvements and property necessary or convenient for draining land, controlling flood or surface waters, or supplying lands with water for irrigation, domestic or other purposes.
(7) “Notice by publication” means the
giving of notice by publication in a newspaper defined as a legal publication
under the laws of
(8) “Engineering plan” means the plans and specifications for the works to be constructed or purchased within any subdistrict, including such maps, profiles, plans and other data as may be necessary to set forth the location, character of the work, the property benefited, taken or damaged, showing any and all rights of way or other property which may be required for the construction of any works, together with the estimates of the cost of the works and an estimate of the benefits and damages which will accrue to each tract of land within a subdistrict upon the construction or purchase of the works. A project work plan prepared for a subdistrict in cooperation with a soil and water conservation district may be adopted as the engineering plan, even though such project work plan is not the final construction plan, and does not give an estimate of the benefits and damages which will accrue to each tract.
(9) “Apportion” means to determine the proportionate share of any assessment which is to be borne by a tract of land subject to assessment or to determine the proportionate share of any charge which is to be borne by the owner or occupant of a tract of land. The determination shall be made by calculating the percentage ratio of the appraised benefits of a tract of land to the total appraised benefits accruing to all tracts of land, or owners and occupants thereof, subject to the assessment or charge and allocating to the tracts of land, or owners and occupants, the same percentage of the total sum of money to be raised by the assessment or charge.
(10) “New assessed valuation” means the assessed valuation of a tract of land as assessed by the county assessor for the county in which the land is located for the year in which an adjustment of benefits is made by a district.
(11) “Original appraised benefits” means the benefits determined to accrue to a tract of land by an appraisal.
(12) “Original assessed valuation” means the assessed valuation of a tract of land as assessed by the county assessor for the county in which the land is located for the year in which the original benefits were determined.
(13) “Record” means to file a document for recording with the county clerk of each county in which the lands within a district or subdistrict are located.
SECTION 139. ORS 553.090 is amended to read:
553.090. A water control district formed under the provisions of this chapter [shall constitute a governmental subdivision of this state, and a public body, corporate and politic, exercising public power. It shall have] has full power to carry out the objects of its creation and to that end may:
(1) Have and use a seal.
(2) Have perpetual succession.
(3) Sue and be sued in its own name.
(4) Acquire by condemnation, purchase, devise, gift or voluntary grant real and personal property or any interest therein, located inside or outside of the boundaries of the district.
(5) [Contract with the
(6) Build, construct, purchase, improve, operate and maintain, subject to other applicable provisions of law, all works and improvements necessary or desirable under any engineering plan adopted by the district.
(7) Enter into contracts and employ agents, engineers and attorneys.
(8) Appropriate and acquire water and water rights and sell, lease and deliver water for irrigation and other purposes both inside and outside the district.
(9) Create special assessment districts, hereinafter referred to as subdistricts, for the purpose of levying assessments against lands benefited by works constructed by the district or ad valorem taxes on all taxable property within the subdistrict.
(10) Levy assessments against lands benefited by works constructed by the district or, in lieu of all assessments provided for by ORS 553.510 (2), (3) and (4), levy ad valorem taxes on all taxable property within the subdistrict in order to provide funds for the construction, purchase, improvement, operation or maintenance of such works.
(11) Borrow money and issue notes, bonds, and other indebtedness secured by mortgage liens, pledge of special assessments as provided in ORS 553.510, or pledge of other income or revenue of the district, or any combination thereof.
(12) In addition to or in lieu of the levy of assessments against the lands of the district, impose and collect service charges upon the owners or occupants of the property served by the works of the district and impose and collect user charges, fees and tolls for use of the works, facilities and services of the district.
(13) Do such other acts or things as may be necessary for the proper exercise of the powers herein granted.
SECTION 140. ORS 553.110 is amended to read:
553.110. (1) This chapter shall not be construed to affect, amend or repeal any other law of Oregon or to affect or impair the vested rights of any person[, municipal corporation, irrigation district, drainage district, the state, or any county] or public body as defined in ORS 174.109, to the use of water or rights in the use of water.
(2) No lands located within the boundaries of any [municipal corporation] city, irrigation district or drainage district shall be included within the boundaries of a water control district without the consent of [such municipal corporation, irrigation district or drainage district] the city or district.
(3) No lands publicly owned and no lands of any railroad, public utility or telecommunications utility shall be assessed without the consent of the owner thereof.
SECTION 141. ORS 553.250 is amended to read:
553.250. (1) Notwithstanding any other provisions of this chapter, any water control district, whenever it appears necessary, proper or beneficial to its inhabitants, may acquire, construct, reconstruct, equip, own, maintain, operate, sell, lease and dispose of domestic, industrial and municipal water works or systems and property and all appurtenances incident thereto.
(2) Any such water control district may furnish water for domestic, industrial and municipal uses to premises and inhabitants within its district, and in connection therewith, may supply, furnish and sell any surplus water storage or carrying capacity over and above the domestic, industrial and municipal needs of its inhabitants to persons[, corporations, incorporated communities, water districts or other municipal or quasi-municipal districts] and other public bodies as defined in ORS 174.109, either within or without the district; provided, however, that the power to furnish water for domestic, industrial and municipal uses herein conferred will not be exercised in such a manner as to impair the service of the district in furnishing water for its inhabitants.
SECTION 142. ORS 553.710 is amended to read:
553.710. After the creation of a subdistrict, and with the approval of the electors of the subdistrict, a water control district may enter into [a contract with the Government of the United States or with the State of Oregon or with any agency or subdivision thereof or with any municipal corporation] intergovernmental agreements under ORS chapter 190 for the construction of works within the subdistrict or outside of the subdistrict for the benefit of lands within the subdistrict. If by reason of [any such contract] an intergovernmental agreement a district becomes obligated to contribute all or any part of the cost of constructing such works or to furnish rights of way or to pay for the cost of improvements to be made in conjunction with the construction of such works or to maintain and operate the works after the construction thereof, the district may levy an ad valorem tax against the lands within the subdistrict for the purpose of raising funds with which to discharge its [contract] obligations under the agreement and to pay the costs and expenses incurred by the district in connection therewith. The levy of an ad valorem tax for such purposes shall be in lieu of and not in addition to any other method of levying assessments by a water control district.
FAIR DISTRICTS
SECTION 143. ORS 565.275 is amended to read:
565.275. (1) [A fair district shall constitute a municipal corporation of this state, and a public body, corporate and politic, exercising public power.] A fair district may:
(a) Have and use a common seal.
(b) Sue and be sued in its name.
(c) Make and accept any and all contracts, deeds, leases, releases and documents of any kind that, in the judgment of the district board, are necessary or proper to the exercise of any power of the district, and to direct the payment of all lawful claims or demands.
(d) Assess, levy and collect taxes to pay the cost of acquiring sites for the county fair and constructing, reconstructing, altering, operating and maintaining the ground and all other property devoted to the use of the county fair, the expenses incurred in the business management and financial and other affairs of the county fair and any lawful claims against the district.
(e) Employ all necessary agents and assistants.
(f) Call elections after the formation of the district.
(g) Generally do any acts necessary and proper to the complete exercise and effect of any of its powers or the purposes for which it was formed.
(2) The officers of the district shall be a board of five members elected by the electors of the district. The district board shall be the governing body of the district and shall exercise all powers of the district.
(3) Five district board members shall be elected at the election for district formation. If the effective date of the formation of the district occurs in an odd-numbered year, two district board members shall be elected for four-year terms and the other three district board members shall be elected for two-year terms. If the effective date of the formation occurs in an even-numbered year, two district board members shall be elected for three-year terms and the other three district board members shall be elected for one-year terms. The district board members shall be elected at large by position number. Each district board member shall hold office until election and qualification of a successor.
(4) ORS chapter 255 governs the nomination and election of district board members and the conduct of district elections.
(5) The district board in each year shall determine and fix the amount of money to be levied and raised by taxation for the purposes of the district.
(6) A county may convey or otherwise transfer public property to a fair district as provided by law.
SOIL AND WATER CONSERVATION
DISTRICTS
SECTION 144. ORS 568.210 is amended to read:
568.210. As used in ORS 568.210 to 568.808 and 568.900 to 568.933, unless the context requires otherwise:
(1) “Agency of this state” [includes the government of this state and any subdivision, agency or instrumentality, corporate or otherwise, of the government of this state] means any public body as defined in ORS 174.109.
(2) “Department” means the State Department of Agriculture.
(3) “Director” means one of the members of the local governing body of a district elected or appointed in accordance with the provisions of ORS 568.210 to 568.808 and 568.900 to 568.933.
(4) “District” [or] means a “soil and water conservation district.” [means a governmental subdivision of this state, and a public body corporate and politic, but without power to issue bonds or make assessments except as provided in ORS 568.805, organized in accordance with the provisions of ORS 568.210 to 568.808 and 568.900 to 568.933 for the purposes, with the powers, and subject to the restrictions set forth in ORS 568.210 to 568.808 and 568.900 to 568.933.]
(5) “Due notice” means notice published at least twice, with an interval of at least seven days between the two publication dates, in a newspaper or other publication of general circulation within the appropriate area, or if no such publication of general circulation is available, by posting at a reasonable number of conspicuous places within the appropriate area, such posting to include, where possible, posting at public places where it may be customary to post notices concerning county or municipal affairs generally. At any hearing held pursuant to such notice, at the time and place designated in such notice, adjournment may be made from time to time without the necessity of renewing such notice for such adjourned dates.
(6) “Elector” means an individual qualified to vote under section 2, Article II, Oregon Constitution.
(7) “Government” or “governmental” [includes the government of this state,] means the government of the United States, and any subdivision, agency or instrumentality, corporate or otherwise, of [either of them] the government of the United States, and any public body as defined in ORS 174.109.
(8) “Land” or “acres of land” includes land owned by any of the parties enumerated in subsection (10) of this section.
(9) “Land occupier” or “occupiers of land” includes any person[, firm or corporation] who is in possession of any land lying within a district, whether as lessee, renter or tenant.
(10) “Landowner” includes any person[, firm, corporation, the state, any county within the state, or municipality,] or public body as defined in ORS 174.109 shown by records of the county to be the owner of land or having such land under contract to purchase, lying within a district.
(11) “Long-range program” means a long-range plan for the conservation and development of the renewable natural resources of a district.
(12) “Nominating petition” means a petition filed under ORS 568.520 to nominate candidates for director.
(13) “Petition” means a petition filed under ORS 568.300 (1) for the creation of a district.
(14) “State” means the State of
(15) “
SECTION 145. ORS 568.225 is amended to read:
568.225. (1) In recognition of the ever-increasing demands on the renewable natural resources of the state and of the need to conserve, protect and develop such resources, it is hereby declared to be the policy of the Legislative Assembly to provide for the conservation of the renewable natural resources of the state and thereby to conserve and develop natural resources, control and prevent soil erosion, control floods, conserve and develop water resources and water quality, prevent impairment of dams and reservoirs, assist in maintaining the navigability of rivers and harbors, preserve wildlife, conserve natural beauty, promote recreational development, protect the tax base, protect public lands and protect and promote the health, safety and general welfare of the people of this state.
(2) It is further the policy of the Legislative Assembly to authorize soil and water conservation districts established under ORS 568.210 to 568.808 and 568.900 to 568.933 to participate in effectuating the policy set forth in subsection (1) of this section and for such purposes to cooperate with landowners, land occupiers, other natural resource users, other local [governmental units] governments as defined in ORS 174.116, and with agencies of the government of this state and of the United States, in projects, programs and activities calculated to accelerate such policies. In effectuating the policy set forth in subsection (1) of this section, the soil and water conservation districts also shall strive to achieve the goal set forth in ORS 468B.155.
SECTION 146. ORS 568.410 is amended to read:
568.410. [The district shall be a governmental subdivision of this state and a public body corporate and politic, upon the taking of the following proceedings:] A soil and water conservation district may be formed in the following manner:
(1) The three candidates referred to in ORS 568.540 shall present to the Secretary of State an application signed and sworn to by them, which shall set forth the procedure followed in the formation of the district.
(2) The application shall be accompanied by a map of uniform scale showing the location and boundaries of the district and by a statement by the State Department of Agriculture. The statement shall certify that a petition was filed, notice issued and hearing held as provided by ORS 568.300 to 568.320; that the department did determine that there is need, in the interest of the general welfare, for a soil and water conservation district to function in the proposed territory and did define the boundaries thereof; that notice was given and a referendum held on the question of the creation of the district, and that the result of the referendum showed the required majority of the electors residing in the district to favor creation of the district.
(3) The Secretary of State shall examine the application and statement. If the Secretary of State finds that the name proposed for the district is not identical with that of any other district of this state or so nearly similar as to lead to confusion or uncertainty, the Secretary of State shall receive and file them and shall record them in an appropriate book of record in the office of the secretary.
(4) If the Secretary of State finds that the name proposed for the district is identical with that of any other soil and water conservation district of this state or so nearly similar as to lead to confusion and uncertainty, the Secretary of State shall certify such fact to the department, which shall thereupon submit to the Secretary of State a name for the district which is not subject to such defects.
(5) Upon receipt of the new name free of such defects, the Secretary of State shall record the application and statement, with the name so modified.
(6) The formation of the district is final when the application and statement have been made, filed and recorded as provided in this section[, the district shall constitute a governmental subdivision of this state and a public body corporate and politic].
SECTION 147. ORS 568.805 is amended to read:
568.805. (1) A district may finance the exercise of any district power or function authorized under this chapter by levying special assessments against property directly benefited thereby and by issuing special assessment improvement bonds. As security for the bonds, the district may pledge all or any part of the revenue from special assessments levied against property directly benefited. The rights and duties accorded a city and the owners of property in a city under ORS 223.389 and 223.391 for levying special assessments and issuing special assessment improvement bonds shall apply in the same manner to a district and the owners of property in the district for purposes of levying assessments and issuing special assessment improvement bonds under this section.
(2) In addition to other requirements
of ORS 223.389 and 223.391, the directors of a district shall fix a date by
which written objections to the amount of proposed assessments levied under
this section may be filed with the district. The date so fixed shall be not
less than 50 days after notice of the proposed assessment is mailed or
delivered to the owner of each lot or parcel of property to be assessed. If
written objections to the proposed assessments are filed by that date by at
least 50 percent of the owners of property to be assessed who are also liable
for at least 60 percent of the total amount of assessments, the directors of
the district shall terminate the proposed project and assessments.
(3) Except as provided in this section, a district may not issue bonds or make assessments.
PORTS
SECTION 148. ORS 777.005 is amended to read:
777.005. As used in ORS 777.005 to 777.725 and 777.915 to 777.953, unless the context requires otherwise:
(1) “Board” means the board of commissioners of a port.
(2) “County” means the county in which the port, or the greater portion of the area of the port, is located.
(3) “County board” means the county court or the board of county commissioners of the county.
(4) “County clerk” means the county clerk of the county.
(5) “Port” means a [municipal corporation incorporated, or proposed to be incorporated,] port formed pursuant to ORS 777.010 and 777.050.
(6) “Owner” or “landowner” means the record owner of real property or the vendee of a recorded contract of purchase of real property, if any, to the exclusion of the vendor.
SECTION 149. ORS 777.010 is amended to read:
777.010. (1) [Municipal corporations designated as] Ports may be [incorporated,] formed in the manner provided in this section and ORS 777.050.
(2) A proposed port may include all the territory in one county. However, where a petition is filed for [incorporation] formation of a port, the territorial limits of which do not include the county as a whole, the limits proposed by the petition shall not extend beyond the natural watershed of any drainage basin whose waters flow into another bay, estuary or river navigable from the sea situate within the county.
SECTION 150. ORS 777.112 is amended to read:
777.112. (1) A port may enter into [a contract with the United States, or with a county, city, port or other municipal corporation of the State of Oregon or of the State of Washington or with either of those states] intergovernmental agreements under ORS chapter 190:
(a) To provide facilities or services that any of the [contracting] parties to the agreement might provide or perform separately for the improvement or maintenance of the bays, harbors and channels of the Columbia River and other Oregon rivers and streams; or
(b) To exercise the powers [which] that any of the [contracting] parties to the agreement has to control the use of the waters, shores and banks thereof.
(2) Any port may enter into [any] a contract with any person or into an intergovernmental agreement under ORS chapter 190 [with established diking districts, drainage districts, soil and water conservation districts, water control districts or corporations] for the use and control of water for promoting erosion control, pollution control or otherwise protecting, maintaining and enhancing waters within the boundaries of the port district.
(3) Expenses incurred or revenues received in the performance of a contract or agreement entered into under subsections (1) and (2) of this section shall be allocated among the [contracting] parties as the contract or agreement shall provide.
SECTION 151. ORS 777.113 is amended to read:
777.113. Consistent with the purposes, functions and powers granted to it by law, a port may provide research or technical assistance for the planning, promotion or implementation of commercial, industrial or economic development projects upon request by any [city, county or municipal corporation] public body as defined in ORS 174.109 within the boundaries of the port.
SECTION 152. ORS 778.010 is amended to read:
778.010. The
(1) Prior to June 30, 1963, shall not be chargeable to or a lien upon all of that property which lies east of the east boundary line of range two east of the Willamette Meridian in Multnomah County; or
(2) Prior to
SECTION 153. ORS 285A.603 is amended to read:
285A.603. As used in ORS 285A.603 to 285A.633, unless the context requires otherwise:
(1) “Port” means the
(2) “Ports Division” or “division” means the Ports Division of the Economic and Community Development Department.
SECTION 154. ORS 285A.654 is amended to read:
285A.654. (1) There is created within the State Treasury, separate and distinct from the General Fund, the Port Planning and Marketing Fund. All moneys in the Port Planning and Marketing Fund are appropriated continuously to the Ports Division and shall be used by the division for:
(a) Administrative expenses of the division in processing grant applications and investigating proposed planning or marketing projects related to ports.
(b) Payment of grants under ORS 285A.654 to 285A.660 to ports [incorporated] formed under ORS 777.010 and 777.050.
(c) Direct purchase by the division of goods or services to assist ports in implementing planning or marketing projects approved for grant financing under ORS 285A.654 to 285A.660.
(2) The Port Planning and Marketing Fund shall consist of:
(a) Moneys appropriated to the fund by the Legislative Assembly.
(b) Moneys obtained from gifts or grants received under ORS 285A.200.
(c) Moneys obtained from interest earned on the investment of such moneys.
(3) Moneys in the Port Planning and Marketing Fund, with the approval of the State Treasurer, may be invested as provided by ORS 293.701 to 293.820, and the earnings from such investments shall be credited to the Port Planning and Marketing Fund.
SECTION 155. ORS 285A.657 is amended to read:
285A.657. (1) The Ports Division may make grants, as funds are available, to any port [incorporated] formed under ORS chapter 777 or 778 for:
(a) A planning project conducted under ORS 285A.627 or any other planning project necessary for improving the port’s capability to carry out its authorized functions and activities relating to trade and commerce; or
(b) A marketing project necessary for improving the port’s capability to carry out its authorized functions and activities relating to trade and commerce.
(2) Any port may file with the Ports Division an application for a grant from the Port Planning and Marketing Fund to finance a specific planning project or marketing project.
(3) An application under this section shall be filed in such a manner and contain or be accompanied by such information as the Ports Division may prescribe.
(4) Upon receipt of an application, the Ports Division shall determine whether the planning project or marketing project is eligible for funding under ORS 285A.654 to 285A.660. If the Ports Division determines that the project is not eligible, it shall within 60 days:
(a) Reject the application; or
(b) Require the applicant to submit additional information as may be necessary.
(5) The Ports Division may approve a grant for a planning project or a marketing project described in an application filed under this section if, after investigation, the Ports Division finds that:
(a) The project meets the standards and criteria established by the Ports Division for grant financing from the Port Planning and Marketing Fund; and
(b) Moneys in the Port Planning and Marketing Fund are or will be available for the project.
(6) Grants to ports under ORS 285A.654 to 285A.660 shall not exceed $25,000 and shall not exceed 75 percent of the total cost of the project.
(7) The Ports Division shall not fund any program that subsidizes regular port operating expenses.
(8) In lieu of all or part of the grant financing approved under ORS 285A.654 to 285A.660 for a planning or marketing project, the Ports Division may purchase goods or services to assist a port in implementing a project.
SECTION 156. ORS 285A.666 is amended to read:
285A.666. As used in ORS 285A.666 to 285A.732, unless the context requires otherwise:
(1) “Business development project” means the engineering, improvement, rehabilitation, construction, operation or maintenance, in whole or in part, including the preproject planning costs of any business development project authorized by ORS 777.250 (1). The term does not include a flexible manufacturing space project.
(2) “Division” means the Ports Division of the Economic and Community Development Department.
(3) “Flexible manufacturing space project” means a project for the acquisition, construction, improvement or rehabilitation, in whole or in part, of any building suitable for the conduct of manufacturing processes and, by design, able to be readily modified when necessary to accommodate the operations of the tenants of the building. The term includes any preproject planning activities for a flexible manufacturing space project.
(4) “Fund” means the Oregon Port Revolving Fund.
(5) “Port development project” means the engineering, improvement, rehabilitation, construction, operation or maintenance, in whole or in part, including the preproject planning costs of any project authorized by ORS 777.105 to 777.258, except projects authorized primarily by ORS 777.250 (1).
(6) “Port district” means any [municipal corporation incorporated, or proposed to be incorporated,] port formed pursuant to ORS 777.005 to 777.725 and 777.915 to 777.953 or ORS chapter 778.
(7) “Project” means a port development project, a business development project or a flexible manufacturing space project.
SECTION 157. Section 19, chapter 607, Oregon Laws 1987, as amended by section 2, chapter 539, Oregon Laws 1991, is amended to read:
Sec. 19. (1) Notwithstanding ORS 285A.708 (1) and 285A.711, available moneys in the Oregon Port Revolving Fund that were accrued as earned income of the fund may be transferred to the Port Planning and Marketing Fund created under ORS 285A.654.
(2) Notwithstanding ORS 285A.654 (1)(b), moneys transferred to the Port Planning and Marketing Fund under this section may be used for payments of grants under ORS 285A.654 to 285A.660 to ports [incorporated] formed under ORS 285A.603 to 285A.732 or ORS chapter 777 or 778.
(3) In addition to and notwithstanding any other law, an amount not to exceed 1.5 percent of the assets of the Oregon Port Revolving Fund as calculated on July 1 of each year shall be transferred to the Port Planning and Marketing Fund under this section.
AIRPORT DISTRICTS
SECTION 158. ORS 838.035 is amended to read:
838.035. (1) [A district shall constitute a municipal corporation of this state, and a public body, corporate and politic, exercising public power. It shall have] An airport district has full power to carry out the objectives of its formation and to that end may have and use a seal, have perpetual succession, sue and be sued in its own name, and enter into contracts.
(2) Except as this chapter provides to the contrary, the powers of the district shall be vested in the district board of the district.
(3) An airport district formed under this chapter shall be considered a district for all purposes in ORS chapter 198.
SECTION 159. The amendments to statutes by sections 2 to 87 and 90 to 158 of this 2003 Act do not affect the power, authority or status of any local service district, as defined by ORS 174.116, nor shall those amendments be construed to affect the power, authority or status of any local service district, as defined by ORS 174.116, under statutes that are not amended by sections 2 to 87 and 90 to 158 of this 2003 Act.
UNFUNDED PERS LIABILITIES
SECTION 160. ORS 238.225, as amended by section 1, chapter 9, Oregon Laws 2002, and section 1, chapter 5, Oregon Laws 2002 (third special session), is amended to read:
238.225. (1) A participating public employer shall, at intervals designated by the Public Employees Retirement Board, transmit to the board those amounts the board determines to be actuarially necessary to adequately fund the benefits to be provided by the contributions of the employer under this chapter. From time to time, the board shall determine the liabilities of the system and shall set the amount of contributions to be made by participating public employers, and by other public employers who are required to make contributions on behalf of members, to ensure that those liabilities will be funded no more than 40 years after the date on which the determination is made.
(2) For the purpose of the actuarial computation required under subsection (1) of this section:
(a) The school districts of the state shall be grouped together and regarded as a single employer; and
(b) All community college districts and the state shall be grouped together and regarded as a single employer.
(3) For the purpose of the actuarial computation required under subsection (1) of this section, any participating public employer may elect to be grouped with the state and all community college districts and treated as a single employer for actuarial purposes only. An election under this subsection may be made only by participating public employers other than school districts and community college districts. Any public employer that makes an election under this subsection may not revoke the election.
(4) The computation of the contributions of a participating public employer that makes an election under the provisions of subsection (3) of this section shall be based only on the liabilities of the employer that are incurred after the effective date of the employer’s election. The board shall separately compute the contribution of the employer for the liabilities incurred by the employer before the effective date of the employer’s election.
(5) A participating public employer may make an election under subsection (3) of this section only by the adoption of a resolution or ordinance by the governing body of the public employer.
(6) Except as provided in subsection (2) of this section, the board may not require that any participating public employer be grouped with any other participating public employer for the purpose of the actuarial computation required under subsection (1) of this section. If two participating public employers merge or otherwise consolidate, and one of the public employers has made an election under subsection (3) of this section:
(a) The board may not require that the public employer that is the product of the consolidation be grouped with the state and all community college districts unless the public employer makes an election under subsection (3) of this section; and
(b) The board may require that the public employer that is the product of the consolidation make contributions based on the group rate only for those members for whom contributions based on the group rate were made before the consolidation.
(7) Except as provided in this section, the board may not group participating public employers for the purpose of the actuarial computation required by subsection (1) of this section.
(8) If a public employer is grouped with any other public employer for the purpose of the actuarial computation required under subsection (1) of this section, and the individual public employer makes a lump sum payment that is in addition to the normal contribution of the public employer and that is designated for application only against accrued unfunded liabilities attributable to the employees of the individual public employer, the board shall adjust the amount of contributions to be made by the individual public employer to ensure that the benefit of the lump sum payment accrues only to the individual public employer making the payment. An individual public employer that makes a lump sum payment under the provisions of this subsection shall remain grouped with other public employers as provided in this section for the purpose of all liabilities of the employer that are not paid under this subsection. The board by rule may establish a minimum lump sum payment that must be made by an individual public employer before adjusting contributions under this subsection. Notwithstanding any minimum lump sum payment established by the board, the board must allow an individual public employer to make a lump sum payment under the provisions of this subsection if the payment is equal to the full amount of the individual public employer’s accrued unfunded liabilities.
(9) The board shall establish a separate account within the fund for each lump sum payment made under subsection (8) of this section or made by any other participating public employer that is not grouped with other public employers under this section. The board shall credit to each account all interest and other income received from investment of the account funds during the calendar year, less any amounts withheld from earnings for administrative expenses under ORS 238.610 or paid into the reserve account established under ORS 238.670 (1). The account shall be used to offset contributions that the public employer would otherwise be required to make for the liabilities against which the lump sum payment is applied.
(10) If a participating public employer has any liabilities that are attributable to creditable service by employees of the employer before the participating public employer was grouped with other public employers, whether under the provisions of this section or pursuant to board rule, any lump sum payment made under subsection (8) of this section must be applied first against those liabilities, with the oldest such liability being paid first. Any amounts remaining after application under this subsection must be deposited in a separate account established under subsection (9) of this section.
(11) If a participating public employer transfers employees who are members of the Public Employees Retirement System to another public employer, the two public employers must enter into a written agreement that addresses the manner in which any unfunded liability or surplus of the transferring public employer will be paid or credited. If two or more public employers merge or consolidate, and any of the public employers participate in the system, the public employers that merged or consolidated must enter into a written agreement that addresses the manner in which any unfunded liability or surplus of the merged or consolidated public employers will be paid or credited. If a participating public employer splits into two or more public employers, the public employers that result from the split must enter into a written agreement that addresses the manner in which any unfunded liability or surplus of the original participating public employer will be paid or credited. A written agreement entered into under this subsection must be delivered to the board not later than 60 days after the transfer, merger, consolidation or split becomes effective. If public employers affected by a transfer, merger, consolidation or split, including public employers created by a merger, consolidation or split, fail to deliver a written agreement that addresses the unfunded liabilities or surpluses to the board, or fail to deliver a written agreement that addresses the unfunded liabilities or surpluses in a manner satisfactory to the board, the board shall decide the manner in which unfunded liabilities or surpluses will be allocated among the public employers.
SECTION 161. Section 162 of this 2003 Act is added to and made a part of ORS chapter 198.
SECTION 162. 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 238.225 (11).
SECTION 163. Section 164 of this 2003 Act is added to and made a part of ORS chapter 222.
SECTION 164. If a city splits into two or more cities, or two or more cities consolidate or merge, the cities affected by the split, consolidation or merger, including cities 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 238.225 (11).
SECTION 165. ORS 236.610 is amended to read:
236.610. (1) No public employee shall be deprived of employment solely because the duties of employment have been assumed or acquired by another public employer, whether or not an agreement, annexation or consolidation with the present employer is involved. Notwithstanding any statute, charter, ordinance or resolution, but subject to ORS 236.605 to 236.640, the public employee shall be transferred to the employment of the public employer that assumed or acquired the duties of the public employee, without further civil service examination.
(2) The transferred public employee shall not have the employee’s salary reduced as a result of a transfer under this section during the first 12 months of employment with the receiving employer. After the first 12 months of employment with the receiving employer, the transferred public employee shall be placed at the closest salary for the position as designated under the receiving employer’s salary schedule.
(3) It is the responsibility of the transferring employer to liquidate accrued compensatory time at the time of transfer, consistent with any applicable statute or collective bargaining agreement.
(4)(a) At the time of transfer, the transferred public employee may elect to:
(A) Retain any accrued sick leave;
(B) Retain up to 80 hours of vacation leave; and
(C) Retain additional vacation leave if agreed to by the transferring employer, the receiving employer and the transferred public employee.
(b) At the time of transfer, the transferring employer shall pay to the receiving employer a sum equal to the number of hours of accrued leave retained times the employee’s hourly rate of pay.
(c) After the transfer, the receiving employer shall grant any leaves according to its rules or any bargaining agreement governing use of leaves.
(5) In the event that any transferred employee is subject to a waiting period for coverage of preexisting conditions under the health insurance plan of the receiving employer, the receiving employer shall arrange for a waiver of such waiting period with its health insurer. The transferring employer shall reimburse the receiving employer for the additional premium costs, if any, resulting from such waiver, for a period of not to exceed 12 months.
(6) In transferring a public employee under subsection (1) of this section, the employer shall furnish the employment records of that employee to the receiving employer at the time of transfer. The time of transfer shall be by written agreement between the public employers involved.
(7) If the public employer that is transferring a public employee participates in the Public Employees Retirement System, the transferring employer and the receiving employer must enter into a written agreement that addresses the manner in which any unfunded Public Employees Retirement System liability or surplus of the transferring public employer will be paid or credited, as required by ORS 238.225 (11).
SECTION 166. Section 167 of this 2003 Act is added to and made a part of ORS chapter 238.
SECTION 167. (1)
Subject to the allocation made by subsection (3) of this section, the Public
Employees Retirement Board shall allocate 21.8743 percent of the actuarial
liability or surplus described in subsection (4) of this section to the City of
(2)
Subject to the allocation made by subsection (3) of this section, the board
shall allocate 78.1257 percent of the actuarial liability or surplus described
in subsection (4) of this section to all public employers participating in the
Public Employees Retirement System.
(3)
The amount of $50,000 shall be allocated by the board to Multnomah Rural Fire
Protection District #10 as the district’s share of the actuarial liability
described in subsection (4) of this section that exists on the effective date
of this 2003 Act. The board shall establish a payment schedule for the amount
allocated under this subsection. The payment schedule shall require payment
with interest in such amount as may be established by the board within a time
period not longer than the time period established by the board for payment of
liabilities of employers under ORS 238.225.
(4)
Subsections (1), (2) and (3) of this section apply to the actuarial liability
or surplus attributable to service by employees that was performed before
(5)
Whenever the board establishes the liabilities of employers for the purposes of
employer contributions under ORS 238.225, the board shall separately determine
the percentage of employer contribution rates that is attributable to any
unfunded actuarial liability under subsection (2) of this section. The board
shall require the public employers specified in subsection (6) of this section
to contribute twice the percentage amount so determined as long as any unfunded
actuarial liability under subsection (2) of this section exists.
(6)
Subsection (5) of this section applies to:
(a)
The City of
(b)
The City of
(c)
The City of
(d)
The City of
MISCELLANEOUS
DEPARTMENT OF CONSUMER
AND BUSINESS SERVICES CHANGES
SECTION 168. ORS 731.288 is amended to read:
731.288. [Each written and signed complaint received by the Department of Consumer and Business Services shall be recorded by the department] The Department of Consumer and Business Services shall record each complaint the department receives, including the subsequent disposition [thereof, and] of the complaint. The record of a complaint shall be maintained for a period of not less than seven years. The records of [such] complaints shall be indexed whenever applicable both by the name of the insurer and by the name of the agent involved. The Director of the Department of Consumer and Business Services shall consider such complaints before issuing or continuing any certificate of authority or license of an insurer or agent named in such complaints.
SECTION 169. ORS 732.528 is amended to read:
732.528. (1) [Except as provided in this subsection,] The Director of the Department of Consumer and Business Services shall approve the proposed activity described in ORS 732.521 (1) [within 30 days after filing of the completed statement or, if a hearing is called and held, within 30 days after the record for the hearing is closed, unless the director finds that any of the grounds specified in this subsection apply to the proposed activity. If a proposed activity described in ORS 732.521 (1) involves a financial holding company or is otherwise subject to the federal Gramm-Leach-Bliley Act (P.L. 106-102), the director shall approve the activity] not later than the 60th day before the effective date of the activity unless the director finds that any of the grounds specified in this subsection apply to the proposed activity. The grounds upon which the director may refuse to approve a proposed activity are as follows:
(a) The activity is contrary to law or would result in a prohibited combination of risks or classes of insurance.
(b) The activity is inequitable or unfair to the policyholders or shareholders of any insurer involved or to any other person affected by the proposed activity. However, in connection with an acquisition of the voting securities of an insurer from the shareholders of the insurer, the director shall evaluate the fairness of the proposed acquisition to the shareholders of the insurer to be acquired only with respect to any shareholders remaining after consummation of the acquisition who are unaffiliated with the acquiring party or parties.
(c) The activity would substantially reduce the security of and service to be rendered to policyholders of any domestic insurer involved, or would otherwise prejudice the interests of such policyholders in this state or elsewhere.
(d) The activity provides for a foreign or alien insurer to be an acquiring party, and the director further finds that the insurer cannot satisfy the requirements of this state for transacting an insurance business involving the classes of insurance affected by the activity.
(e) The activity or its consummation would substantially lessen competition in insurance in this state or tend to create a monopoly.
(f) After the change of control or ownership, the domestic insurer to which the activity described in ORS 732.521 (1) applies would not be able to satisfy the requirements for the issuance of a certificate of authority to transact the line or lines of insurance for which it is currently authorized.
(g) The financial condition of any acquiring party might jeopardize the financial stability of the insurer.
(h) The plans or proposals that the acquiring party has to liquidate the insurer, sell its assets or consolidate or merge it with any person, or to make any other material change in its business or corporate structure or management, are unfair and unreasonable to policyholders of the insurer and not in the public interest.
(i) The competence, experience and integrity of those persons who would control the operation of the insurer are such that it would not be in the interest of policyholders of the insurer and of the public to permit the activity or its consummation.
(j) The activity or its consummation is likely to be hazardous or prejudicial to the insurance-buying public.
(k) The activity is subject to other material and reasonable objections.
(2) If the director does not approve the proposed activity, the director shall promptly notify each insurer and each acquiring party to the proposed activity in writing, specifying the bases, factors and reasons for the disapproval and giving each insurer and each acquiring party who filed the statement relating to the proposed activity an opportunity to amend the statement, if possible, to obviate the director’s objections.
(3) Any amendment to the statement filed under ORS 732.523 pursuant to the director’s objection shall be filed by the acquiring party or parties filing the statement and, if a hearing was held on the proposed activity, shall be resubmitted at a hearing held pursuant to this section unless the director finds that such a hearing is not necessary for the protection of the policyholders, shareholders or any other person affected by the proposed activity.
(4) The director may retain at the acquiring person’s expense any actuaries, accountants and other experts not otherwise a part of the director’s staff as may be reasonably necessary to assist the director in reviewing the proposed activity.
(5) The director may establish the effective date of an activity to which ORS 732.521 (1) applies in the order approving the activity.
(6) Any insurer or other party to a proposed activity, including the insurer proposed to be acquired, within 60 days after receipt of a notice of approval or disapproval, may appeal the final order of the director as provided in ORS 183.310 to 183.550. For purposes of the judicial review the specifications required to be set forth in the written notice from the director shall be deemed the findings of fact and conclusions of law of the department.
(7) On petition to the court, the court’s power shall extend to affirming the order of the director, modifying all or any part of the director’s objections, adding additional objections, approving the proposed activity as submitted or subject to such modifications or changes as the court may find proper, and requiring resubmission to the boards of directors or other governing bodies or for hearing as provided in ORS 732.526.
SECTION 170. ORS 744.531 is amended to read:
744.531. When the Director of the Department of Consumer and Business Services issues a license authorizing a person to act as an adjuster, the director shall indorse on the license the class or classes of insurance described in this section with respect to which the person is authorized to adjust losses. The classes of insurance are as follows:
(1) [General lines] Property and casualty insurance. Under this class, in addition to property and casualty insurance, an adjuster may also adjust losses with respect to [casualty, property,] marine and transportation and surety insurance.
(2) Health insurance, whether provided by an insurer or a health care service contractor as defined in ORS 750.005.
(3) Any class of insurance designated by the director by rule.
SECTION 171. ORS 744.626 is amended to read:
744.626. When the Director of the Department of Consumer and Business Services issues a license authorizing a person to act as an insurance consultant, the director shall indorse on the license the class or classes of insurance described in this section with respect to which the person is authorized to act as an insurance consultant. The classes of insurance are as follows:
(1) Life insurance.
(2) Health insurance.
(3) [General lines] Property and casualty insurance. Under this class, in addition to property and casualty insurance, an insurance consultant may also act as insurance consultant with respect to [casualty, property,] marine and transportation and surety insurance.
(4) Any class of insurance designated by the director by rule.
SECTION 172. ORS 750.055 is amended to read:
750.055. (1) The following provisions of the Insurance Code shall apply to health care service contractors to the extent so applicable and not inconsistent with the express provisions of ORS 750.005 to 750.095:
(a) ORS 705.137, 705.139, 731.004 to 731.150, 731.162, 731.216 to 731.362, 731.382, 731.385, 731.386, 731.390, 731.398 to 731.430, 731.428, 731.450, 731.454, 731.488, 731.504, 731.508, 731.509, 731.510, 731.511, 731.512, 731.574 to 731.620, 731.592, 731.594, 731.640 to 731.652, 731.730, 731.731, 731.735, 731.737, 731.750, 731.752, 731.804 and 731.844 to 731.992.
(b) ORS 732.215, 732.220, 732.230, 732.245, 732.250, 732.320, 732.325 and 732.517 to 732.592, not including ORS [732.549 and 732.574 to 732.592] 732.582.
(c)(A) ORS 733.010 to 733.050, 733.080, 733.140 to 733.170, 733.210, 733.510 to 733.620, 733.635 to 733.680 and 733.695 to 733.780 apply to not-for-profit health care service contractors.
(B) ORS chapter 733, not including ORS 733.630, applies to for-profit health care service contractors.
(d) ORS chapter 734.
(e) ORS 742.001 to 742.009, 742.013, 742.061, 742.065, 742.150 to 742.162, 742.400, 742.520 to 742.540, 743.010, 743.013, 743.018 to 743.030, 743.050, 743.100 to 743.109, 743.402, 743.412, 743.472, 743.492, 743.495, 743.498, 743.522, 743.523, 743.524, 743.526, 743.527, 743.528, 743.529, 743.549 to 743.555, 743.556, 743.560, 743.600 to 743.610, 743.650 to 743.656, 743.693, 743.694, 743.697, 743.699, 743.701, 743.706 to 743.712, 743.721, 743.722, 743.726, 743.727, 743.728, 743.729, 743.804, 743.807, 743.808, 743.809, 743.814 to 743.839, 743.842, 743.845, 743.847, 743.854, 743.856, 743.857, 743.858, 743.859, 743.861, 743.862, 743.863, 743.864, 743.866 and 743.868.
(f) The provisions of ORS chapter 744 relating to the regulation of agents.
(g) ORS 746.005 to 746.140, 746.160, 746.180, 746.220 to 746.370 and 746.600 to 746.690.
(h) ORS 743.714, except in the case of group practice health maintenance organizations that are federally qualified pursuant to Title XIII of the Public Health Service Act unless the patient is referred by a physician associated with a group practice health maintenance organization.
(i) ORS 735.600 to 735.650.
(j) ORS 743.680 to 743.689.
(k) ORS 744.700 to 744.740.
(L) ORS 743.730 to 743.773.
(m) ORS 731.485, except in the case of a group practice health maintenance organization that is federally qualified pursuant to Title XIII of the Public Health Service Act and that wholly owns and operates an in-house drug outlet.
(2) For the purposes of this section only, health care service contractors shall be deemed insurers.
(3) Any for-profit health care service contractor organized under the laws of any other state which is not governed by the insurance laws of such state, will be subject to all requirements of ORS chapter 732.
(4) The Director of the Department of Consumer and Business Services may, after notice and hearing, adopt reasonable rules not inconsistent with this section and ORS 750.003, 750.005, 750.025 and 750.045 that are deemed necessary for the proper administration of these provisions.
SECTION 173. ORS 731.032 is repealed.
SECTION 174. ORS 731.042 is amended to read:
731.042. (1) [No person exempted by ORS 731.032 may transact insurance until a
certificate of exemption has been received by such person from the Director of
the Department of Consumer and Business Services.] An exempt insurer who holds a certificate of exemption issued by the
Director of the Department of Consumer and Business Services before
[(2) No certificate of exemption shall be issued to any such person by the director except upon receipt of an application to act as an exempt insurer. Such application shall set forth the details of the insurance to be provided, the names and addresses of the responsible parties, officers and agents, and proof of solvency of the insurer.]
[(3)] (2) [Upon receipt of a satisfactory application and payment of] In order to continue a certificate of exemption, a person to whom subsection (1) of this section applies must file its annual statement and pay the fees established by the director[, the director shall issue a certificate of exemption authorizing the applicant to act as an exempt insurer until the succeeding April 1] by March 1 of each year.
[(4)] (3) An exempt insurer shall be subject to ORS 731.296 to 731.316, 731.414, 731.418, 731.574, 731.988, 731.992, 733.010 to 733.115, 733.140 to 733.210, 743.703, 746.075 and 746.110.
SECTION 175. ORS 744.056 is amended to read:
744.056. (1) ORS 744.052 to 744.089 do not require an insurer to obtain a license as an agent as required by ORS 744.053. For purposes of this section, the term “insurer” does not include an insurer’s officers, directors, employees, subsidiaries or affiliates.
(2) A license as an agent shall not be required of any of the following:
(a) An officer, director or employee of an insurer, an agent or an insurance producer, if the officer, director or employee does not receive any commission on or fee for policies written or sold to insure risks residing, located or to be performed in this state and:
(A) The officer’s, director’s or employee’s activities are executive, administrative, managerial, clerical or a combination of these, and are only indirectly related to the sale, solicitation or negotiation of insurance;
(B) The officer’s, director’s or employee’s function relates to underwriting, loss control, inspection or the processing, adjusting, investigating or settling of a claim on a contract of insurance; or
(C) The officer, director or employee is acting in the capacity of an agency supervisor assisting licensed agents or insurance producers when the person’s activities are limited to providing technical advice and assistance to licensed agents or insurance producers and do not include the sale, solicitation or negotiation of insurance.
(b) A person who does either of the following, when the person does not receive any commission or fee for the service:
(A) Secures and furnishes information for the purpose of group life insurance, group property and casualty insurance, group annuities or group or blanket health insurance or for the purpose of enrolling individuals under plans, issuing certificates under plans or otherwise assisting in administrative plans; or
(B) Performs administrative services related to mass-marketed property and casualty insurance.
(c) An employer or an association of employers or its officers, directors or employees, or the trustees of an employee trust plan:
(A) To the extent that the employers, associations, directors, officers, employees or trustees are engaged in the administration or operation of a program of employee benefits for the employer’s or association’s own employees or the employees of its subsidiaries or affiliates;
(B) To the extent that the program of employee benefits involves the use of insurance issued by an insurer; and
(C) As long as the employers, associations, officers, directors, employees or trustees are not in any manner compensated, directly or indirectly, by the insurer issuing the insurance.
(d) An employee of an insurer or an organization employed by insurers who is engaging in the inspection, rating or classification of risks, or in the supervision of the training of agents or insurance producers and who is not individually engaged in the sale, solicitation or negotiation of insurance.
(e) A person whose activities in this state are limited to advertising without the intent to solicit insurance in this state through communications in printed publications or electronic mass media, the distribution of which is not limited to residents of this state, but only if the person does not sell, solicit or negotiate insurance that would insure risks residing, located or to be performed in this state.
(f) A person who is not a resident of this state who sells, solicits or negotiates a policy of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under that policy, but only if the person is otherwise licensed as an insurance producer to sell, solicit or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state.
(g) A salaried full-time employee who counsels or advises the employer of the employee relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer, but only if the employee does not sell or solicit insurance or receive any commission.
(h) An attorney in fact of an authorized reciprocal insurer, or the salaried representative of the insurer or attorney who does not receive any commission.
(i) A person engaging in the lawful transaction of reinsurance.
(j) Salaried employees of title insurance agents or insurers, except for the individual or individuals designated as exercising the powers conferred by a title insurance agent’s license.
(k) Any agent or representative of persons exempt from the Insurance Code under ORS [731.032 or] 731.036 or holding a certificate of exemption under ORS 731.042, with respect to the exempted transactions.
(L) Any agent or representative of a fraternal benefit society who devotes, or intends to devote, less than 50 percent of the agent’s or representative’s time to the solicitation and procurement of insurance policies for that society. Any person who in the preceding calendar year has solicited and procured life insurance policies on behalf of any fraternal benefit society for an amount of insurance in excess of $50,000 or, in the case of any other class or classes of insurance that the society might write, on the persons of more than 25 individuals, and who has received or will receive a commission or other compensation therefor, shall be presumed to be devoting, or intending to devote, 50 percent or more of the person’s time to the solicitation and procurement of insurance policies for that society.
(m) A person engaging in the lawful transaction of home protection insurance if the person is a real estate licensee as defined in ORS 696.010, and if the transaction of such insurance by the person is subject to a written contract, to which the insurer is a party, governing the person’s activities in the transaction.
(n) Salaried employees of a financial institution or trust company, as those terms are defined in ORS 706.008, who, in the regular course of business with the customers of the financial institution or trust company, present the customers with written information about savings account annuities issued by an authorized insurer. Any person who purchases such an annuity may rescind the transaction within 10 days after the issuance of the contract. For purposes of this paragraph, “savings account annuities” means annuities purchased with the proceeds of a savings account, certificate or share in a financial institution or trust company.
(3) A person who provides general insurance advice in connection with providing other professional services such as legal services, trust services, tax and accounting services, financial planning or investment advisory services is not considered to be soliciting the sale of insurance for the purpose of the definition of “agent” in ORS 731.062.
(4) Except as provided in ORS 735.450, 744.063 and 744.064, the provisions of this chapter relating to agents do not apply to a surplus lines agent authorized pursuant to ORS 735.450.
SECTION 176. ORS 748.601 is amended to read:
748.601. (1) Except as provided in subsection (2) of this section, nothing contained in this chapter shall be so construed as to affect or apply to:
(a) Grand or subordinate lodges of orders, societies or associations doing business in this state that provide benefits exclusively through local or subordinate lodges;
(b) Orders, societies or associations that admit to membership only persons engaged in one or more crafts or hazardous occupations, in the same or similar lines of business, insuring only their own members and their families, and the ladies’ societies or ladies’ auxiliaries to such orders, societies or associations;
(c) Domestic societies that limit their membership to employees of a particular city or town, designated firm, business house or corporation that provide for a death benefit of not more than $400 or disability benefits of not more than $350 to any person in any one year, or both; or
(d) Domestic societies or associations of a purely religious, charitable or benevolent description, that provide for a death benefit of not more than $400 or for disability benefits of not more than $350 to any one person in any one year, or both.
(2) No society or association described in subsection (1)(c) or (d) of this section that provides for death or disability benefits for which benefit certificates are issued, and no society or association included in subsection (1)(d) of this section that has more than 1,000 members, shall be exempted from the provisions of this chapter. Any society or association described in this subsection shall comply with all requirements of this chapter.
(3) No order, society or association that, by the provisions of this section, is exempt from the requirements of this chapter, except an order, society or association described in subsection (1)(b) of this section, shall give or allow, or promise to give or allow to any person any compensation for procuring new members.
(4) Every society that provides for benefits in case of death or disability resulting solely from accident, and that does not obligate itself to pay natural death or sick benefits, shall have all of the privileges and be subject to all the applicable provisions and regulations of this chapter except that the provisions relating to medical examination, valuations of benefit certificates and incontestability, shall not apply to the society.
(5) The Director of the Department of Consumer and Business Services may require from any society or association, by examination or otherwise, any information enabling the commissioner to determine whether the society or association is exempt from the provisions of this chapter.
(6) Societies exempted under the provisions of this section [shall] are also be exempt from all other provisions of the insurance laws of this state except as provided in ORS [731.032] 731.042.
SECTION 177. ORS 748.603 is amended to read:
748.603. (1) Societies [shall be] are governed by this chapter and [shall be] are exempt from all other provisions of the insurance laws of this state unless expressly designated therein, or unless specifically made applicable by this chapter.
(2) ORS 705.137, 705.139, 731.004 to 731.026, [731.032] 731.036 to 731.136, 731.146 to 731.156, 731.162, 731.166, 731.170, 731.216 to 731.268, 731.296, 731.324, 731.328, 731.354, 731.356, 731.358, 731.378, 731.380, 731.381, 731.382, 731.385, 731.386, 731.390, 731.394, 731.396, 731.398, 731.402, 731.406, 731.410, 731.422 to 731.434, 731.446 to 731.454, 731.488, 731.504, 731.508, 731.509, 731.510, 731.511, 731.512, 731.592, 731.594, 731.730, 731.731, 731.735, 731.737, 731.750, 731.804, 731.844 to 731.992, 732.245, 732.250, 732.320, 732.325, 733.010 to 733.050, 733.080, 733.140 to 733.210, 733.220, 733.510, 733.652 to 733.658, 733.730 to 733.750, 735.600 to 735.650, 742.001, 742.003, 742.005, 742.007, 742.009, 742.013 to 742.021, 742.028, 742.038, 742.041, 742.046, 742.051, 742.150 to 742.162 and 744.700 to 744.740 and ORS chapters 734 and 743 shall apply to fraternal benefit societies to the extent so applicable and not inconsistent with the express provisions of this chapter.
(3) For the purposes of this subsection and subsection (2) of this section, fraternal benefit societies shall be deemed insurers, and benefit certificates issued by fraternal benefit societies shall be deemed policies.
(4) Every society authorized to do business in this state shall be subject to the provisions of ORS chapter 746 relating to unfair trade practices. However, nothing in ORS chapter 746 shall be construed as applying to or affecting the right of any society to determine its eligibility requirements for membership, or be construed as applying to or affecting the offering of benefits exclusively to members or persons eligible for membership in the society by a subsidiary corporation or affiliated organization of the society.
SECTION 178. ORS 750.705 is amended to read:
750.705. (1) The following provisions of the Insurance Code [shall] apply to legal expense organizations to the extent so applicable and not inconsistent with the express provisions of ORS 750.505 to 750.715:
(a) ORS 731.004 to 731.026, [731.032] 731.036 to 731.150, 731.158, 731.216 to 731.362, 731.385, 731.386, 731.398 to 731.430, 731.450, 731.454, 731.504, 731.508, 731.509, 731.510, 731.511, 731.512, 731.640 to 731.652, 731.730, 731.731, 731.735, 731.737, 731.804 and 731.844 to 731.992.
(b) ORS 732.230, 732.245, 732.250, 732.320, 732.325 and 732.517 to 732.546.
(c) ORS 733.010 to 733.050, 733.140 to 733.170, 733.210, 733.510 to 733.680 and 733.710 to 733.780.
(d) ORS 737.205, 737.215, 737.225, 737.235 to 737.340 and 737.505.
(e) ORS 742.001 to 742.009, 742.013 to 742.056 and 742.061.
(f) ORS 746.005 to 746.045, 746.065, 746.075, 746.100 to 746.130, 746.160 and 746.230 to 746.370.
(2) For the purposes of this section only, legal expense organizations shall be considered insurers.
SECTION 179. ORS 705.105 is amended to read:
705.105. (1) The Department of Consumer and Business Services is created.
(2) The department shall be under the supervision and control of a director who shall be responsible for the functions of the department.
(3) Subject to confirmation by the Senate in the manner provided in ORS 171.562 and 171.565, the Governor shall appoint the director, who shall hold office at the pleasure of the Governor. The person appointed as director shall be well qualified by training and experience to perform the functions of the office.
(4) The director shall receive such salary as is provided by law or, if not so provided, as is fixed by the Governor.
(5) With respect to the duties, functions and powers imposed upon the director under the insurance [and workers’ compensation] laws, the director may be designated by the title of Insurance Commissioner or may appoint a person under ORS 705.115 to serve under the supervision and control of the director as Insurance Commissioner.
(6) Before entering upon the functions of office, the director shall give to the state a fidelity bond with one or more corporate sureties authorized to do business in this state, or an irrevocable letter of credit issued by an insured institution, as defined in ORS 706.008, in either case in the penal sum fixed by the Governor.
(7) The department shall have an official seal. Any certificate or other document or paper executed by the department pursuant to its authority and sealed with its seal, and all copies of papers certified by it and authenticated by the seal, shall in all cases be evidence equally and in like manner as the original and shall have the same force and effect as would the original in any suit or proceeding in any court in this state.
SECTION 180. ORS 705.135 is amended to read:
705.135. (1) The Director of the Department of Consumer and Business Services may delegate any duties, powers and functions [within] of the director or of the Department of Consumer and Business Services, under such conditions as the director deems appropriate.
(2) In accordance with ORS 183.310 to 183.550, and in addition to other rulemaking authority prescribed by law, the director may adopt rules for the purpose of carrying out the functions of the department.
(3) The director shall adopt rules governing circumstances under which employees or any category of employees of the department may or may not be or become indebted to or hold any interest in any entity subject to regulation by the department. The rules shall provide for reporting any such indebtedness or interest and for preventing or resolving possible conflicts of interest arising therefrom.
UNIT CAPTIONS
SECTION 181. The unit captions used in this 2003 Act are provided only for the convenience of the reader and do not become part of the statutory law of this state or express any legislative intent in the enactment of this 2003 Act.
Approved
by the Governor
Filed
in the office of Secretary of State
Effective
date
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