74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 3289
 
                        Senate Bill 1011
 
Sponsored by COMMITTEE ON JUDICIARY
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Authorizes counties and metropolitan service districts to
create process to designate rural reserves not included in urban
growth boundaries or rural communities. Modifies process for
designating urban reserves.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to land reserves; creating new provisions; amending ORS
  195.145, 197.298, 197.626 and 221.034; and declaring an
  emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + As used in sections 1 to 3 of this 2007 Act:
  (1) 'Rural community' means an unincorporated community that
consists primarily of permanent residential dwellings but also
has at least two other commercial, industrial or public land
uses, including but not limited to schools, churches, grange
halls or post offices, that benefit the community, the
surrounding rural area or persons traveling through the
community.
  (2) 'Rural reserve' means land reserved to provide long-term
protection for agriculture, forestry, wildlife habitat and
landscape features that limit urban development, including steep
slopes and floodplains, or that help define appropriate natural
boundaries of urbanization. + }
  SECTION 2.  { + The Legislative Assembly finds that:
  (1) Long-range planning for population and employment growth by
cities, counties and regional governments can offer greater
certainty for the agriculture and forestry industries, providers
of public services and others in the private sector by
determining the likely locations of future expansion of urban
growth boundaries and of other locations where urban development
is unlikely.
  (2) State planning laws should provide greater encouragement
for long-range planning to provide this greater certainty. + }
  SECTION 3.  { + (1) A metropolitan service district established
under ORS chapter 268 and a county that has a portion of its
territory in the district or within 10 miles of the district may:
  (a) Designate rural reserves pursuant to sections 1 to 3 of
this 2007 Act; and
 
 
  (b) Enter into intergovernmental agreements pursuant to ORS
190.003 to 190.130, 195.025 or 197.652 to 197.658 to protect the
rural reserves from urbanization.
  (2) Land designated as a rural reserve:
  (a) Must be outside an urban growth boundary.
  (b) May not be included within the boundaries of a rural
community.
  (c) May not be designated as an urban reserve during the 20
years after the 20-year period for which the metropolitan service
district has demonstrated a buildable land supply in the most
recent inventory, determination and analysis performed under ORS
197.296.
  (3) The Land Conservation and Development Commission shall
adopt by goal or by rule a process and criteria for designating
rural reserves pursuant to sections 1 to 3 of this 2007 Act. + }
  SECTION 4.  { + Sections 1 to 3 of this 2007 Act are added to
and made a part of ORS chapter 195. + }
  SECTION 5. ORS 195.145 is amended to read:
  195.145.  { + (1) As used in this section, 'urban reserve'
means lands outside an urban growth boundary that will provide
for:
  (a) Future expansion over a long-term period; and
  (b) The cost-effective provision of public facilities and
services within the area when the lands are included within the
urban growth boundary. + }
    { - (1) - }   { + (2) + } To ensure that the supply of land
available for urbanization is maintained,  { + subject to ORS
197.610 to 197.625:
  (a) + } Local governments may cooperatively designate lands
outside urban growth boundaries as urban   { - reserve areas,
subject to ORS 197.610 to 197.625 - }  { +  reserves.
  (b) A metropolitan service district established under ORS
chapter 268 and a county that has a portion of its territory in
the district or within 10 miles of the district may enter into
written agreements pursuant to ORS 190.003 to 190.130, 195.025 or
197.652 to 197.658 to designate urban reserves + }.
    { - (2)(a) - }   { + (3)(a) + } The Land Conservation and
Development Commission may require a local government to
designate an urban reserve   { - area - }  during its periodic
review in accordance with the conditions for periodic review
under ORS 197.628.
  (b) Notwithstanding paragraph (a) of this subsection, the
commission may require a local government to designate an urban
reserve   { - area - }  outside of its periodic review if:
  (A) The local government is located inside a Primary
Metropolitan Statistical Area or a Metropolitan Statistical Area
as designated by the Federal Census Bureau upon November 4, 1993;
and
  (B) The local government has been required to designate an
urban reserve   { - area - }  by rule prior to November 4, 1993.
    { - (3) - }   { + (4) + } In carrying out subsections
 { - (1) and - }  (2)  { + and (3) + } of this section:
  (a) Within an urban reserve   { - area - } , neither the
commission nor any local government shall prohibit the siting on
a legal parcel of a single family dwelling that would otherwise
have been allowed under law existing prior to designation as an
urban reserve   { - area - } .
  (b) The commission shall provide to local governments a list of
options, rather than prescribing a single planning technique, to
ensure the efficient transition from rural to urban use in urban
 { - reserve areas - }  { +  reserves + }.
    { - (4) For purposes of this section, 'urban reserve area '
means lands outside an urban growth boundary that will provide
for: - }
    { - (a) Future expansion over a long-term period; and - }
 
    { - (b) The cost-effective provision of public facilities and
service within the area when the lands are included within the
urban growth boundary. - }
   { +  (5) Urban reserves designated by a metropolitan service
district and a county pursuant to this section must be planned to
accommodate population and employment growth for at least 20
years after the 20-year period for which the district has
demonstrated a buildable land supply in the most recent
inventory, determination and analysis performed under ORS
197.296.
  (6) Designation of urban reserves must be based on a
determination that the urban reserve can, alone or in conjunction
with land inside the urban growth boundary, provide the
characteristics of a sustainable and complete community, as
determined by goal or rule, and other factors the commission
deems appropriate.
  (7) The commission shall adopt by goal or by rule a process and
criteria for designating urban reserves pursuant to this section
that may include priorities consistent with this section. + }
  SECTION 6. ORS 197.298 is amended to read:
  197.298. (1) In addition to any requirements established by
rule addressing urbanization, land may not be included within an
urban growth boundary except under the following priorities:
  (a) First priority is land that is designated  { + an + } urban
reserve   { - land - }  under ORS 195.145, rule or metropolitan
service district action plan.
  (b) If land under paragraph (a) of this subsection is
inadequate to accommodate the amount of land needed, second
priority is land adjacent to an urban growth boundary that is
identified in an acknowledged comprehensive plan as an exception
area or nonresource land. Second priority may include resource
land that is completely surrounded by exception areas unless such
resource land is high-value farmland as described in ORS 215.710.
  (c) If land under paragraphs (a) and (b) of this subsection is
inadequate to accommodate the amount of land needed, third
priority is land designated as marginal land pursuant to ORS
197.247 (1991 Edition).
  (d) If land under paragraphs (a) to (c) of this subsection is
inadequate to accommodate the amount of land needed, fourth
priority is land designated in an acknowledged comprehensive plan
for agriculture or forestry, or both.
   { +  (e) If land under paragraphs (a) to (d) of this
subsection is inadequate to accommodate the amount of land
needed, fifth priority is land designated as a rural reserve, as
defined in section 1 of this 2007 Act. + }
  (2) Higher priority shall be given to land of lower capability
as measured by the capability classification system or by cubic
foot site class, whichever is appropriate for the current use.
  (3) Land of lower priority under subsection (1) of this section
may be included in an urban growth boundary if land of higher
priority is found to be inadequate to accommodate the amount of
land estimated in subsection (1) of this section for one or more
of the following reasons:
  (a) Specific types of identified land needs cannot be
reasonably accommodated on higher priority lands;
  (b) Future urban services could not reasonably be provided to
the higher priority lands due to topographical or other physical
constraints; or
  (c) Maximum efficiency of land uses within a proposed urban
growth boundary requires inclusion of lower priority lands in
order to include or to provide services to higher priority lands.
  SECTION 7.  { + (1) The Land Conservation and Development
Commission shall adopt the goals or rules required by sections 3
and 5 of this 2007 Act not later than January 31, 2008.
  (2) On or after the effective date of this 2007 Act, a
metropolitan service district established under ORS chapter 268
and a county may not designate urban reserves under ORS 195.145
until the district and the county have designated rural reserves
in the county pursuant to sections 1 to 3 of this 2007 Act. + }
  SECTION 8. ORS 197.626 is amended to read:
  197.626. A metropolitan service district that amends its urban
growth boundary to include more than 100 acres, or a city with a
population of 2,500 or more within its urban growth boundary that
amends the urban growth boundary to include more than 50 acres or
that designates urban   { - reserve areas - }  { +  reserves + }
under ORS 195.145, shall submit the amendment or designation to
the Land Conservation and Development Commission in the manner
provided for periodic review under ORS 197.628 to 197.650.
  SECTION 9. ORS 221.034 is amended to read:
  221.034. (1) As used in this section:
  (a) 'Neighboring city' means a city that has any part of its
territory situated within three miles of the area proposed to be
incorporated.
  (b) 'Rural unincorporated community' means a settlement with a
boundary identified in an acknowledged comprehensive plan of a
county and that:
  (A) Is made up primarily of lands subject to an exception to
statewide planning goals related to agricultural lands or
forestlands;
  (B) Either was identified in the acknowledged comprehensive
plan of a county as a 'rural community,' 'service center, ' '
rural center,' 'resort community' or similar term before October
28, 1994, or is listed in the Department of Land Conservation and
Development's 'Survey of Oregon Unincorporated Communities'
(January 30, 1997);
  (C) Lies outside the urban growth boundary of a city or a
metropolitan service district; and
  (D) Is not incorporated as a city.
  (c) 'Urban   { - reserve area - }  { +  reserve + } '  { +
 + }has the meaning given that term in ORS 195.145.
  (d) 'Urban services' has the meaning given that term in ORS
195.065.
  (2) When any of the area proposed to be incorporated as a city
lies within an urbanized area, but outside the urban growth
boundary of a city or a metropolitan service district:
  (a) The area proposed to be incorporated must also be located
entirely within a designated rural unincorporated community and
contiguous lands subject to an exception to statewide planning
goals related to agricultural lands or forestlands.
  (b) The petition required by ORS 221.031 must be accompanied by
an affidavit, signed by a chief petitioner, stating that:
  (A) Ten percent of the electors registered within the area
proposed for incorporation favor the incorporation; and
  (B) The chief petitioners have engaged the neighboring cities
in discussions concerning the effects of the proposed
incorporation, including discussions specifically relating to how
those cities and the proposed city will allow for expansion of
urban growth boundaries and, where applicable, for creation or
expansion of urban   { - reserve areas - }  { +  reserves + }.
  (c) The economic feasibility statement required by ORS 221.035
must:
  (A) Indicate that the proposed city must plan for and provide
urban services in a cost-effective manner at the minimum level
adequate to meet current needs and projected growth;
  (B) Contain a proposed permanent rate limit for operating taxes
to provide revenues for urban services; and
  (C) Indicate that the proposed city must plan for residential
development at or above the same urban density planned for an
existing city, within the county, that has a similar geographic
area within the existing city's urban growth boundary or, for a
proposed city within three miles of Metro's boundary, a minimum
urban residential density in accordance with a statewide planning
goal and rules pertaining to needed housing for cities within
Metro's urban growth boundary.
  (d) If the proposed city will be required to complete a public
facility plan and a transportation systems plan, the proposed
city must demonstrate the ability to provide urban services to
meet current needs and projected growth. The proposed city may
meet this requirement, in whole or in part, by establishing an
agreement in principle with a city or a district, as defined in
ORS 195.060, to provide the urban services.
  (3) If the governing body of a neighboring city determines that
the proposed incorporation adversely affects that city, the
governing body may ask the county court with which the petition
for incorporation was filed to reject the petition and terminate
the incorporation proceedings. The objections by the city to the
incorporation shall be heard and considered by the county court
at a public hearing held under ORS 221.040.
  (4) If, at the hearing held under ORS 221.040, the county court
finds that any of the requirements of subsection (2) of this
section are not met or that the proposed incorporation will
adversely affect a neighboring city, the county court shall
provide by order for the termination of the incorporation
proceedings. The order shall contain the findings of the county
court relating to the proposed incorporation and the reasons for
terminating the incorporation proceedings.
  (5) In the manner provided in ORS 197.830 to 197.845, the Land
Use Board of Appeals shall review, upon the petition of a party
to the incorporation proceedings, the order of the county court
under subsection (4) of this section.
  SECTION 10.  { + This 2007 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2007 Act takes effect on
its passage. + }
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