Chapter 547 — Drainage Districts

 

2015 EDITION

 

 

DRAINAGE DISTRICTS

 

WATER LAWS

 

ORGANIZATION OF DRAINAGE DISTRICTS; SCOPE OF LAW

 

547.005     Authority to form drainage district

 

547.010     Petition to form district; contents

 

547.015     Verification and filing of petition

 

547.020     Fixing time and place of hearing; notice; jurisdiction over district

 

547.025     Filing of objections

 

547.030     Evidence at hearing; findings; appeal

 

547.040     Application of Act of 1915 and amendments to districts organized under earlier laws

 

547.045     Public lands within district; authority to sign petition or objections; liability of lands; assessments

 

547.050     Signing of petition by Governor

 

547.055     Attack on validity or boundaries of district; time for commencement of suit

 

547.057     Drainage district activity as urban service

 

547.060     Scope of Drainage District Act

 

DRAINAGE DISTRICTS MANAGING FEDERALLY AUTHORIZED FLOOD CONTROL PROJECTS

 

547.063     Definitions

 

547.065     Public hearing required

 

547.067     Powers of drainage district

 

547.069     Formation of drainage district by owners of certain lands permitted

 

547.071     Powers of drainage district officers and employees

 

547.073     Powers of board of supervisors

 

547.075     Contracts with federal government permitted

 

547.077     Powers of boards of supervisors west of the Cascade Mountains

 

547.079     Clogged or obstructed conditions; notice to owner or occupant

 

547.081     Repair of clogged or obstructed condition

 

547.083     Owner or occupant liable for repair expense; notice and recordation of lien

 

BOARD OF SUPERVISORS; ADMINISTRATION; SURETY BONDS; WARRANTS

 

547.105     Election of supervisors; qualifications and terms of office; quorum for transaction of business at owners’ meetings

 

547.110     Annual meeting; election of supervisors; owners entitled to vote

 

547.112     Change in number of supervisors

 

547.115     Supervisor’s oath of office

 

547.120     Board of supervisors; officers; secretary; seal; record of proceedings; report

 

547.125     Secretary as treasurer; duties; audit of books and report to landowners; compensation

 

547.130     Record of meetings, proceedings, certificates, bonds, acts

 

547.135     Removal of employees

 

547.140     Uniform charge to pay expenses of organizing district, surveys, assessing benefits and damages; collection; surplus funds; refunding in case of dissolution

 

547.150     Payment of claims; warrants; nonpayment; interest-bearing warrants; charge or levy of tax to pay

 

ENGINEER; PLAN FOR RECLAMATION; COMMISSIONERS; ASSESSMENT OF BENEFITS

 

547.205     Appointment of engineer; duties; surveys; report; maps

 

547.210     Engineer’s report; adoption by supervisors; report constitutes “Plan for Reclamation”; exclusion of lands not benefited; certain irrigated lands deemed to be benefited

 

547.215     Commissioners; appointment; qualifications; quorum; continuing existence

 

547.220     Notice of appointment of commissioners; meeting; secretary of board of supervisors to furnish certain information; oath; officers

 

547.225     Assessment of benefits and damages by commissioners; report; compensation

 

547.230     Notice of report of commissioners; publication; form

 

547.235     Exceptions to report or assessment; hearing by court; modifications; transmission of judgment and report to supervisors and county clerks; appeal from judgment

 

547.240     Dissolution of district if cost exceeds benefits; obligations and expenses; additional charges

 

547.245     Reassessment of benefits

 

547.250     Changes in plan for reclamation; petition for amendment of plan; notice

 

547.255     Objections to petition; findings; judgment; recording

 

547.260     Appointment of commissioners when plan amended; subsequent proceedings; court costs

 

547.265     Amendment of plan where works or charge insufficient; additional charge

 

WORKS AND IMPROVEMENTS OF DISTRICT

 

547.305     Entry on land; acquisition of property; water filings and appropriations; condemnation of property devoted to public use; right of way across state lands

 

547.310     Board authority regarding reclamation works; contracts; engineer’s duties

 

547.315     Connecting existing improvements; procedure; connection with improvements outside district

 

547.320     Powers of districts regarding irrigation works; bonds

 

547.325     Powers of districts under 1,000 acres regarding domestic water supply

 

CONTRACTS WITH UNITED STATES FOR RECLAMATION

 

547.355     Contracts with United States for reclamation by drainage or irrigation authorized

 

547.360     Payment of amounts due; assessments on lands; lien thereof; collection

 

DISTRICTS WEST OF CASCADES; CONSTRUCTION AND MAINTENANCE OF DITCHES

 

547.405     Districts west of Cascades; control of supervisors over improvements

 

547.410     Maintaining improvements; notice to owner or occupant of premises

 

547.415     Failure of owner or occupant to act; maintenance by supervisors

 

547.420     Liability for cost of work; notice of claim of lien; foreclosure; sale of land

 

547.425     Prohibited practices

 

547.430     Civil liability for expense of removal of filth or obstruction; recovery by action

 

ASSESSMENTS, CHARGES AND TAXES

 

547.455     Annual charge or assessment; computation; apportionment; liability of state lands; payment of assessments by bonds, coupons or warrants

 

547.460     County, city and town lands subject to taxation, assessment or charges

 

547.465     Assessment or charge of low lands used for growing crops

 

547.470     Extra assessment or charge for lake drainage

 

547.475     List of assessments and apportionments

 

547.480     Collection of tax; disposition

 

547.482     Filing boundary change with county assessor and Department of Revenue

 

547.485     Governing body of county to make assessment and levy upon failure of supervisors to do so

 

547.490     Waiver of penalty or interest by certain districts

 

547.492     Alternative charge or assessment method

 

547.495     Crops bound by lien; exceptions

 

547.500     Notice or claim of crop lien; filing; contents

 

547.505     Recording of crop lien claim by clerk; indexing

 

547.510     Form of crop lien claim; foreclosure

 

547.515     Removal of crops to another county; recording of notice in latter county; rights of purchasers and mortgagees

 

BONDS OF DISTRICT

 

547.555     Bonds; issuance; interest; place of payment; maturities

 

547.560     Sale of bonds; procedure

 

547.565     Payment of bonds from assessments

 

547.570     Bond proceeds; depository

 

547.575     Bond fund account; general fund

 

547.580     Retirement of bonds before maturity; call provisions

 

FUNDING AND REFUNDING OF DEBT UNDER 1909 ACT

 

547.605     Funding and refunding of debt; bonds; place of payment

 

547.610     Sale or exchange of bonds; application of proceeds; cancellation of retired obligations; record of transactions

 

547.615     Tax for payment of interest and principal; sinking fund

 

547.620     Retirement of outstanding bonds; notice to bondholders to submit propositions; premium; calling of bonds

 

ALTERNATIVE METHOD OF REFUNDING INDEBTEDNESS OR ISSUING BONDS

 

547.655     Authority to adopt alternative procedure

 

547.660     Exchange of refunding bonds for outstanding indebtedness

 

547.665     Numbering; maturities; negotiability; interest; place of payment; denominations; execution; registration; authority to retire bonds

 

547.670     Offer by holders of indebtedness to surrender evidences thereof or accept proportional payment; sale of bonds; notice; publication

 

547.675     Lien on land assessed for bond payment

 

547.680     Emergency fund; assessments for; use of

 

547.685     Retirement of bonds before maturity; notice of call; date of payment; cessation of interest

 

547.690     Judicial confirmation

 

547.695     Sale of lands for delinquent charges; district as purchaser; resale; payment of proceeds into emergency fund; district to bid at tax sale

 

547.697     Bond fund separate from district general fund; deposits to bond fund and district general fund; expenditures from bond fund and district general fund

 

WITHDRAWAL

 

547.755     Part of district annexed to city to be withdrawn from district only by consent of voters

 

PENALTIES

 

547.990     Penalties

 

ORGANIZATION OF DRAINAGE DISTRICTS; SCOPE OF LAW

 

      547.005 Authority to form drainage district. The persons shown by the records of the county to be the owners of 50 percent of the acreage in any contiguous body of swamp, wet or overflowed lands or irrigated lands, waters from which contribute to the swamp, wet or overflowed conditions of those or other lands, situated in one or more counties of the state, may form a drainage district for the purpose of having such lands reclaimed and protected by drainage or otherwise from the effects of water, for sanitary or agricultural purposes, or when the same may be conducive to the public health, convenience and welfare or of public utility or benefit.

 

      547.010 Petition to form district; contents. For the purpose mentioned in ORS 547.005, the owners may prepare and sign a petition in which shall be stated:

      (1) The name proposed for the district.

      (2) The boundary lines of the district, or a description of all the lands included therein, with an allegation that such lands constitute a contiguous body of swamp, wet or overflowed lands, or irrigated lands the waters from which contribute to the swamp, wet or overflowed condition of those or other lands.

      (3) The total acreage included in the district, and if land in more than one county is included, then the acreage in each county.

      (4) The names of the owners of land in the district as shown by the county records, and the acreage owned by each owner.

      (5) An allegation that the proposed reclamation or protection is for sanitary or agricultural purposes, or both, and that the proposed reclamation or protection will be conducive to the public health or welfare or of public utility or benefit.

      (6) An allegation that all the lands included in the proposed district are properly included, and will be beneficially affected by the operations of the proposed district.

      (7) An allegation that the benefits of the proposed reclamation or protection will exceed the damage to be done and that the best interests of the land included and of the owners of such land as a whole, and of the public at large, will be promoted by the formation and proposed operations of the district.

      (8) An allegation that the formation of a drainage district under the provisions of this chapter is a proper and advantageous method of accomplishing the reclamation and protection of the lands included therein.

      (9) A brief, general, informal statement of a proposed plan of reclamation or protection and such general facts as will enable the court to determine that there is a reasonable probability that the objects sought by the formation of the district may be accomplished.

      (10) An agreement that the signers will pay any expenses incurred and any charges imposed and billed to the signers, for the purpose of paying the expense of organizing or attempting to organize the proposed district.

      (11) A prayer asking that the lands described, or such of them as may be found by the court to be properly included in the proposed district, either permanently or until further investigation and surveys may permit elimination, shall be declared organized into a drainage district. [Amended by 1991 c.459 §425]

 

      547.015 Verification and filing of petition. The petition shall be verified by one or more of the petitioners to the effect that they have read the petition and believe the allegations to be true. It shall be filed in the office of the county clerk of the county in which the lands described are situated. If the lands are situated in more than one county it shall be filed in the office of the county clerk of the county in which more of the lands are situated than in any other county.

 

      547.020 Fixing time and place of hearing; notice; jurisdiction over district. (1) Upon presentation of the petition, the county court shall fix the time and place for hearing the petition. Thereupon the clerk in whose office the petition was filed shall give notice in the following manner:

      (a) The clerk shall cause notice to be published once each week for four consecutive weeks in some newspaper published in each county in which are situated lands of the district, the last insertion to be made at least 15 days prior to the meeting of the county court at which the petition is to be heard. The notice shall be substantially in the following form and shall be deemed sufficient for all purposes of the Drainage District Act:

______________________________________________________________________________

 

Notice of Hearing on Petition to Form Drainage District.

 

In the County Court of the State of Oregon, for the County of _____.

      Notice is given that hearing on the following petition will be held at the courthouse in the city of_____, County of_____, State of Oregon, on the ___ day of_____, 2___, for the purpose of determining whether the prayer of the petition shall be granted.

      All persons owning or claiming an interest in lands described in the petition are notified to appear at that place on that date and show cause, if any there be, why the prayer in the petition should not be granted.

 

_______________

 

Clerk of the County Court

 

______________________________________________________________________________

      (b) Immediately following the notice and as a part thereof, there shall be published the petition in full, including the signatures thereto.

      (2) The county court of the county in which the petition has been filed shall thereafter maintain and have original and exclusive jurisdiction coextensive with the boundaries and limits of the district without regard to county lines, for all purposes of the Drainage District Act.

 

      547.025 Filing of objections. On or before the date set for the hearing, any person objecting to the organization and incorporation of the district may appear and file a writing setting forth specifically and definitely any objections thereto.

 

      547.030 Evidence at hearing; findings; appeal. (1) At the hearing the court shall hear and consider any evidence that may be presented for or against the petition or any objection thereto.

      (2) Thereupon the court shall make its findings upon the facts alleged in the petition or objections and any other facts necessary and proper for the determination of the propriety of the organization of the district, which findings shall be entered on the journal of the court.

      (3) If it appears to the court that the prayer of the petition should be granted, the court shall, by its order entered of record, declare the drainage district organized.

      (4) If it appears to the court that the prayer of the petition should not be granted, the proceedings shall be dismissed and the costs adjudged against the signers of the petition in proportion to the acreage represented by each.

      (5) In making such findings and decision, the court shall disregard any error, irregularity or omission which does not affect substantial rights, and no such error, irregularity or omission shall affect the validity of the organization or any proceedings taken thereon.

      (6) Appeal may be taken de novo from the decision of the court to the circuit court. [Amended by 1979 c.284 §168]

 

      547.035 [Repealed by 1975 c.326 §5]

 

      547.040 Application of Act of 1915 and amendments to districts organized under earlier laws. All drainage districts organized before February 14, 1921, in pursuance of any law relating to drainage districts passed prior to the enactment of chapter 340, Oregon Laws 1915, shall have all the powers and be subject to all the provisions of the Drainage District Act, except in so far as the organization of the district is concerned.

 

      547.045 Public lands within district; authority to sign petition or objections; liability of lands; assessments. (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 or used for the Eastern Oregon State Training Center, the Director of Human Services, the Department of Corrections or the Director of the Oregon Health Authority 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 as defined in ORS 174.109, the presiding officer of such public body, a member of the governing body of such public body or a designee of the governing body, when designated in a resolution of the governing body, may sign such petition or objection 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) Lands belonging 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 Department of Human Services, the Department of Corrections or the Oregon Health Authority 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 departments or the authority on any assessments levied against such lands by the diking or drainage district. [Amended by 1959 c.380 §1; 1969 c.597 §61; 1989 c.171 §72; 1991 c.459 §425a; 2003 c.802 §134; 2009 c.595 §988; 2013 c.36 §69; 2013 c.46 §1]

 

      547.050 Signing of petition by Governor. The signing of the petition by the Governor for the organization of a diking or drainage district on behalf of the state shall be deemed to constitute compliance with the provisions of ORS 547.005 to 547.015, and any previous such action by the Governor is hereby ratified and confirmed. [Amended by 1969 c.597 §62]

 

      547.055 Attack on validity or boundaries of district; time for commencement of suit. No action, suit or proceeding, under ORS 30.570 or otherwise, shall be maintained for the purpose of avoiding, setting aside or otherwise questioning or affecting the validity of the organization of any district organized under the Drainage District Act, unless such action, suit or proceeding is commenced within nine months from the date of the proclamation in such matter made by the county judge; nor for the purpose of questioning the legality of the boundaries established for such corporation in such proclamation unless similarly commenced within nine months therefrom; nor for the purpose of questioning the legality of any altered boundaries of the district which may be subsequently established as provided for by ORS 547.250 to 547.260 unless commenced within nine months from the date of the judgment. [Amended by 2003 c.576 §505]

 

      547.057 Drainage district activity as urban service. (1) An activity of a drainage district is deemed to be an urban service, as defined in ORS 195.065, if the drainage district:

      (a) Is located in a county that has a population greater than 700,000; and

      (b) Operates a flood control project located within the urban growth boundary established by Metro or within the incorporated boundary of a city.

      (2) As used in this section, “flood control project” means a system or method, including, but not limited to, canals, ditches, dikes, levees, revetments and floodwalls, for:

      (a) The control, diversion, conservation or abatement of floodwater, or of an excessive or unusual accumulation of water, in a natural or artificial body of water; or

      (b) The protection of life and property against danger, menace, injury or damage resulting from floodwater, or an excessive or unusual accumulation of water. [2015 c.544 §14]

 

      Note: 547.057 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 547 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      547.060 Scope of Drainage District Act. As used in this chapter, “Drainage District Act” means ORS 547.005 to 547.030, 547.057, 547.105 to 547.150, 547.205 to 547.240, 547.250 to 547.265, 547.310, 547.315, 547.455 to 547.475, and 547.555 to 547.580. [Amended by 2015 c.544 §13]

 

DRAINAGE DISTRICTS MANAGING FEDERALLY AUTHORIZED FLOOD CONTROL PROJECTS

 

      547.063 Definitions. As used in ORS 547.063 to 547.083:

      (1) “Flood control project” means a system or method, including, but not limited to, canals, ditches, dikes, levees, revetments and floodwalls, for:

      (a) The control, diversion, conservation or abatement of floodwater, or of an excessive or unusual accumulation of water, in a natural or artificial body of water; or

      (b) The protection of life and property against danger, menace, injury or damage resulting from floodwater, or an excessive or unusual accumulation of water.

      (2) “Obstruction” means an encroachment, improvement or trespass that substantially and adversely affects the efficient operation or maintenance of a flood control project or a ditch, lateral, drain, canal, slough, waterway or conduit.

      (3) “Repair” includes replace, remove, relocate and upgrade when, in the discretion of the board of supervisors of a drainage district, replacement, removal, relocation or upgrade is necessary to comply with state or federal regulations or to protect and preserve the property of the district. [2015 c.544 §2]

 

      Note: Section 1, chapter 544, Oregon Laws 2015, provides:

      Sec. 1. The provisions of sections 2 to 12 of this 2015 Act [547.063 to 547.083] apply to drainage districts managing federally authorized flood control projects on the effective date of this 2015 Act [June 25, 2015]. [2015 c.544 §1]

 

      Note: 547.063 to 547.083 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 547 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      547.065 Public hearing required. (1) Before a drainage district elects to exercise the powers and duties set forth in ORS 547.067, the board of supervisors shall hold a public hearing.

      (2) At least 14 days before the date of the public hearing, the board shall give notice of the hearing in a newspaper of general circulation in the district and mail notice of the hearing to the owners of record, based on the most recent county tax assessment roll, of property within the district.

      (3) Notice of the public hearing must:

      (a) State the date, time and location of the hearing;

      (b) State that the board is considering whether to elect to exercise the powers and duties set forth in ORS 547.067; and

      (c) Invite all interested parties to attend the hearing and present testimony.

      (4) After the public hearing, the board may adopt a resolution in which the district elects to exercise the powers and duties set forth in ORS 547.067. Following adoption of the resolution, the board may exercise the powers and duties as provided in ORS 547.067. [2015 c.544 §3]

 

      Note: See notes under 547.063.

 

      547.067 Powers of drainage district. (1) A drainage district may acquire, construct, reconstruct, repair, improve or extend improvements to carry out the purposes of the Drainage District Act.

      (2) A drainage district in a county with a population greater than 700,000 persons may adopt ordinances consistent with sanitary, agricultural, public health or public safety purposes under ORS 198.510 to 198.600 to carry out its powers and duties under the Drainage District Act, including ordinances related to:

      (a) Flood protection, drainage control or management, including provisions for enforcement of the regulations;

      (b) Rates, fees, fines and charges for the operation of the district and construction, maintenance, repair and improvement of the works of the district;

      (c) A delegation of authority to the chief executive officer of the district to manage and administer the district; and

      (d) Other matters determined by the board of supervisors to be necessary or convenient to exercise the authority granted to the district or to comply with the requirements of state and federal law.

      (3) A drainage district shall provide written notice to any city in which all or a portion of the drainage district is located not more than 21 days and not less than 10 days prior to the first reading of a proposed ordinance described in subsection (2) of this section. The notice must include a brief description of the proposed ordinance and a copy of the proposed ordinance and must list the time, date and place of the public meeting at which the drainage district will consider the proposed ordinance. The date of notice shall be the date of mailing.

      (4)(a) Notwithstanding subsection (2)(b) of this section, a drainage district may not impose on a city a rate, fee or charge unless the rate, fee or charge is a provision of an intergovernmental or urban services agreement between the drainage district and the city.

      (b) A drainage district may levy a city an assessment, rate, fee, fine or charge as a property owner within the drainage district that is not a provision of an intergovernmental or urban services agreement, provided the drainage district levies the assessment, rate, fee, fine or charge against the city pursuant to the same terms and conditions as levied against other property owners within the drainage district.

      (5) The drainage district shall consult and coordinate with all governmental units with authority to exercise similar powers and duties within the boundaries of the drainage district if the exercise of those powers and duties has the potential to conflict. In the event that an exercise of powers or duties by the drainage district conflicts with the exercise of similar powers by a governmental unit, the drainage district and governmental unit shall execute an intergovernmental or urban services agreement to resolve the conflict. [2015 c.544 §4]

 

      Note: See notes under 547.063.

 

      547.069 Formation of drainage district by owners of certain lands permitted. In a contiguous body of swamp, wet or overflowed land or irrigated land from which waters contribute to the swamp or to the wet or overflowed condition of the same or different land, the owners of record of at least 50 percent of the acreage may form a drainage district for the purpose of reclaiming and protecting the land by drainage, flood control or otherwise from the effects of water:

      (1) For sanitary or agricultural purposes; or

      (2) When reclaiming and protecting the land protects life or property from the harmful effects of water or produces another public utility or benefit. [2015 c.544 §5]

 

      Note: See notes under 547.063.

 

      547.071 Powers of drainage district officers and employees. (1) The officers and employees of any drainage district may:

      (a) Enter upon any land in the manner provided by ORS 35.220.

      (b) Locate the necessary flood control project, drainage works or irrigation works, and the necessary branches for the same, on any lands that may be deemed best for such location.

      (c) Acquire, either by lease, purchase, condemnation or other legal means, all lands, rights of way, easements and other property necessary for the construction, operation or maintenance of a flood control project, drainage works or irrigation works, including the enlargement, improvement or extension of any natural or artificial waterway for such purposes.

      (d) Make all necessary water filings or appropriation of water under the general laws of Oregon for irrigation of lands within such district.

      (2) The property, the right to condemn which is hereby given, shall include property already devoted to public use that is less necessary than the use for which it is required by the district, whether used for drainage, irrigation or any other purpose. The right of way is hereby given, dedicated and set apart to locate, construct and maintain such drainage or irrigation works over and through any of the lands that are now or may be the property of this state.

      (3) In the acquisition of property or rights by condemnation, proceedings under the provisions of this section shall be brought in the name of the district under the provisions of ORS chapter 35. [2015 c.544 §6]

 

      Note: See notes under 547.063.

 

      547.073 Powers of board of supervisors. (1) The board of supervisors may:

      (a) Build, construct and complete any works and improvements needed to carry out the plan of reclamation.

      (b) In the name of the district, make all necessary water filings and appropriations of water for the subsequent irrigation of the lands within the district.

      (c) Construct, operate and maintain irrigation works for the irrigation of the lands within the district.

      (d) Hire personnel and purchase machinery, equipment and supplies.

      (e) Construct, operate, protect and maintain flood control projects for the protection of the lands within the district.

      (2) The board may, after advertising for bids, let a contract for construction of the whole or any part of the flood control project, drainage works or irrigation works to the lowest responsible bidder, which contract shall be in writing. The complete plans and specifications for the flood control, drainage or irrigation of the lands shall be attached to and made a part of each contract. Good and sufficient bond, running in favor of the district, shall be required of each contractor, conditioned that the contractor will well and truly comply with all the provisions of the contract and perform all work in accordance with the terms thereof.

      (3) The chief engineer shall be superintendent of all the works and improvements and shall, whenever required, and at least once each year, make a full report to the board of all work done and improvements and make such suggestions and recommendations to the board as the chief engineer deems proper. [2015 c.544 §7]

 

      Note: See notes under 547.063.

 

      547.075 Contracts with federal government permitted. The board of supervisors of any drainage district, whenever it is determined by the board that it is for the best interests of the district:

      (1) May enter into a contract with the United States for the reclamation by drainage or irrigation of the lands within the boundaries of the district, under the provisions of the Act of Congress of June 17, 1902 (32 Stat. 388), and Acts amendatory thereof and supplementary thereto, and especially the Act of Congress approved August 13, 1914, entitled, “An act extending the period of payment under reclamation projects, and for other purposes,” commonly known as the “Twenty-Year Extension Act.”

      (2) May make contracts with a federal agency relating to flood control projects that contain terms, provisions and conditions the board of supervisors determines are necessary or appropriate to satisfy conditions on the construction of flood control projects that are imposed under federal law or that attach as a result of federal funding for the flood control project. [2015 c.544 §8]

 

      Note: See notes under 547.063.

 

      547.077 Powers of boards of supervisors west of the Cascade Mountains. (1) The board of supervisors of a drainage district lying west of the Cascade Mountains, whether or not organized under the Drainage District Act:

      (a) Shall supervise and control flood control projects within the boundaries of their districts.

      (b) May prescribe the width, grade and other specifications of flood control projects, drainage works or irrigation works described in this subsection.

      (2) The board may construct and maintain flood control projects within the boundaries of their districts. [2015 c.544 §9]

 

      Note: See notes under 547.063.

 

      547.079 Clogged or obstructed conditions; notice to owner or occupant. (1) Whenever the engineer or secretary of a drainage district notifies the supervisors that any flood control project is less efficient, by reason of the failure of the owner of the premises upon which it is situated to prevent obstructions, repair, clean or grade the same, the board of supervisors shall serve or cause to be served upon such owner, if the owner is known and residing within the county in which the district is situate, or if not a resident of the county, then upon the occupant of the premises, a notice in writing notifying the owner or occupant of the clogged or obstructed condition of the flood control project.

      (2) The notice shall be served by delivering to the owner, occupant or person in charge of the premises a copy thereof certified to be such by the person serving it, or if there is no occupant or the owner is not a resident of the county, then the notice shall be served by posting a copy of it in a conspicuous place upon the premises. Immediately after serving or posting the notice, the person serving it, by authority of the board of supervisors, shall file the original notice with the county clerk of the county in which service is made, together with a return on the notice stating the time and manner of making service. The notice and return, when so filed, shall be retained as a public record of the county. [2015 c.544 §10]

 

      Note: See notes under 547.063.

 

      547.081 Repair of clogged or obstructed condition. (1) If the owner or occupant of the premises upon which the clogged or obstructed flood control project is situated fails for 10 days after being notified of the existence of the clogged or obstructed condition, to submit to the drainage district a plan and schedule to repair, clean or grade the flood control project or remove the obstruction therefrom, the board of supervisors shall immediately repair, clean or grade the same and cause it to be promptly placed in a proper and efficient condition.

      (2) The drainage district shall review a plan and schedule submitted by an owner or occupant to determine whether the plan and schedule adequately address the clogged or obstructed condition in an effective and timely manner. If the drainage district approves the plan and schedule, the owner or occupant shall repair, clean or grade the flood control project or remove the obstruction therefrom pursuant to the plan and schedule. If the owner or occupant fails to do so pursuant to the plan and schedule, the board of supervisors shall immediately repair, clean or grade the same and cause it to be promptly placed in a proper and efficient condition.

      (3) Nothing in this section precludes the board of supervisors from immediately repairing, cleaning or grading the clogged or obstructed flood control project in cases of emergency. [2015 c.544 §11]

 

      Note: See notes under 547.063.

 

      547.083 Owner or occupant liable for repair expense; notice and recordation of lien. (1) Upon completion of the work the board of supervisors shall bill the owner or occupant of the premises for the expense necessarily incurred in the repair, grading or cleaning of the flood control project.

      (2) If any charge remains unpaid beyond the due date thereof, the secretary of the district may file a notice of claim of lien with the county clerk of the county in which the lands for which the charges were billed are situated. The notice of lien shall be in writing and must contain:

      (a) The name of the landowner or occupier who was billed.

      (b) A statement of the amount claimed past due.

      (c) A description of the land upon which the work was completed sufficient for identification.

      (3) The county clerk shall cause the notice of lien to be recorded in the County Clerk Lien Record maintained under ORS 205.125. The amount of the charges and expense, as of the date the notice of lien is filed, shall constitute a first lien upon the lands or premises, except as to taxes. If the charges and expenses are not paid and the lien discharged by the owner or occupant within 30 days from the date the notice is filed, suit or action may be brought in the name of the drainage district for the foreclosure of the lien. The suit or action shall be brought by the district attorney, or, at the option of the board, by an attorney employed by the board. The lands affected thereby shall be sold under execution for the payment and satisfaction of the lien and of the costs and disbursements incurred in connection with the prosecution of the suit or action. [2015 c.544 §12]

 

      Note: See notes under 547.063.

 

BOARD OF SUPERVISORS; ADMINISTRATION; SURETY BONDS; WARRANTS

 

      547.105 Election of supervisors; qualifications and terms of office; quorum for transaction of business at owners’ meetings. (1) Within 30 days after any drainage district has been organized under the provisions of the Drainage District Act, the county clerk of the county in which the petition was filed shall call a meeting of the owners of land situated in the district for the purpose of electing a board of supervisors with three or five supervisors as determined by the owners of land within the district.

      (2) The county clerk shall give notice of the meeting by publication in some newspaper published in each county in which lands of the district are situated, at least 10 days before the date of the meeting.

      (3) The supervisors must be owners of land in the district.

      (4)(a) The owners, assembled at the place and time required by the notice, shall organize by the election of a chairperson and secretary of the meeting who shall conduct the election. Each owner is entitled to one vote in person or by proxy for each acre of land owned by the owner in the district. If an owner is a not a natural person, the owner may appoint a designee, in a writing filed with the secretary, to exercise the authority of the owner, including the voting and serving as a supervisor of the district. The designee shall serve as a representative of the owner until the designee resigns, or the owner replaces the designee, in a writing filed with the secretary.

      (b) Notwithstanding paragraph (a) of this subsection, at or before the organizing meeting, an owner that is not a natural person may appoint a designee in a writing filed with the county clerk.

      (5) The three or five persons receiving the highest number of votes must be declared elected as supervisors. The supervisors shall determine the terms of their offices by lot. If three supervisors are elected, the supervisors shall serve, respectively, one, two and three years. If five supervisors are elected, one supervisor shall serve one year, two supervisors shall serve two years, and two supervisors shall serve three years. The supervisors first elected shall serve until their successors are elected and qualified.

      (6) At a meeting of owners, owners that represent at least a majority of the acreage in the district constitute a quorum for the transaction of district business. In a year in which a quorum of owners is not achieved at the annual meeting called under ORS 547.110, owners representing at least 35 percent of the acreage in the district constitute a quorum for the annual meeting in the succeeding year. [Amended by 1959 c.379 §1; 2003 c.223 §1; 2015 c.544 §18]

 

      547.110 Annual meeting; election of supervisors; owners entitled to vote. In the same month of each year after the election of the first board of supervisors, the board shall call a meeting of the owners of land in the district. The board shall give notice in the manner provided for in ORS 547.105. The owners shall meet at the time and place fixed by the board and elect one or two supervisors in the manner prescribed in ORS 547.105, who shall hold office for three years and until a successor is elected and qualified. However, after the report of the commissioners has been confirmed by the court under the provisions of ORS 547.235, only the owners, or the designees of the owners, of the land having benefits attributed to the land are entitled to vote at the annual meetings held under the provisions of this section. [Amended by 1969 c.669 §14; 1991 c.459 §425b; 2003 c.223 §2; 2015 c.544 §19]

 

      547.112 Change in number of supervisors. (1) At least six months prior to an annual meeting of a drainage district, the board of supervisors of the drainage district may change the number of supervisors elected to the board, effective at the next annual meeting, by a motion approved by the affirmative vote of a majority of the supervisors.

      (2) If the board of supervisors acts under subsection (1) of this section:

      (a) To change the number of supervisors on the board, the board shall notify the county clerk of the county in which the petition to form the district was filed and the Secretary of State at least six months prior to the annual meeting at which one or more supervisors will be added to or removed from the board or within 30 days of taking action under subsection (1) of this section, whichever is later.

      (b) To reduce the number of supervisors from five to three, the board shall phase in the change, beginning at the next annual meeting, in a manner that allows each supervisor to serve the full term to which the supervisor was elected. If the decision is made to reduce the number of supervisors from five to three at an annual meeting at which only one supervisor is scheduled to be elected, the election must be canceled and the supervisor whose term is ending shall continue in office until the following annual meeting. At the following annual meeting, the terms of two more supervisors will end, and only one supervisor will be elected. [2003 c.223 §4]

 

      547.115 Supervisor’s oath of office. Each supervisor before entering upon official duties shall take and subscribe to an oath before some officer authorized by law to administer oaths, that the supervisor will honestly, faithfully and impartially perform the duties devolving upon the supervisor in office as supervisor of the drainage district in which the supervisor was elected, and that the supervisor will not neglect any of the duties imposed upon the supervisor by the Drainage District Act.

 

      547.120 Board of supervisors; officers; secretary; seal; record of proceedings; report. The board of supervisors immediately after its election shall choose one of its number president of the board, and elect some suitable person secretary, who may or may not be a member of the board. The board shall adopt a seal with a suitable design, and shall keep a record of all its proceedings. The board shall report to the landowners at the annual meeting held under the provisions of ORS 547.110 what work has been done, either by the engineers or otherwise. Notwithstanding the provisions of ORS 198.190, if the secretary is a member of the board the secretary shall be entitled to compensation as provided for in ORS 547.125. [Amended by 1971 c.403 §10; 1973 c.794 §28]

 

      547.125 Secretary as treasurer; duties; audit of books and report to landowners; compensation. (1) The secretary of the board of supervisors in any drainage district shall hold the office of treasurer of the district, except as otherwise provided in this chapter.

      (2) The treasurer shall receipt for all moneys received by the treasurer and shall keep all funds received by the treasurer from any source deposited at all times in some insured institution or trust company, as those terms are defined in ORS 706.008, that is designated by the board of supervisors. All interest accruing on such funds shall, when paid, be credited to the district.

      (3) The board of supervisors shall audit or have audited the books of the treasurer each year and make report thereof to the landowners at the annual meeting and publish a statement within 30 days thereafter, showing the amount of money received, the amount paid out during the year, and the amount in the treasury at the beginning and end of the year.

      (4) The treasurer shall pay out funds of the district only on warrants signed by the president of the board and attested by the signature of the secretary and treasurer.

      (5) The secretary shall receive as compensation for performing the duties of secretary-treasurer such salary as may be fixed and directed to be paid by resolution of the board. [Amended by 1969 c.345 §14; 1997 c.631 §489]

 

      547.130 Record of meetings, proceedings, certificates, bonds, acts. The board of supervisors of any district organized under the Drainage District Act shall cause to be kept a well-bound book, entitled “Record of Proceedings of Board of Supervisors of _____ District,” in which shall be recorded minutes of all meetings, proceedings, certificates, bonds given by all employees, and any and all corporate acts, which record shall at all times be open to the inspection of anyone interested, whether taxpayer or bondholder.

 

      547.135 Removal of employees. The board of supervisors may at any time remove any officer, attorney or other employee appointed or employed by the board.

 

      547.140 Uniform charge to pay expenses of organizing district, surveys, assessing benefits and damages; collection; surplus funds; refunding in case of dissolution. (1) The board of supervisors of any district organized under the provisions of the Drainage District Act shall, as soon as elected and qualified, impose a uniform charge of not more than $1 per acre upon the owner of each acre of land within the district, to be used for the purpose of paying expenses incurred or to be incurred in organizing the district, making surveys of the same, and assessing benefits and damages, and to pay other expenses necessary to be incurred before the board shall be empowered by other provisions of the Drainage District Act, to provide funds to pay the total cost of works and improvements of the district. In case the boundary lines of the district are extended so as to include lands not described and contained in the petition, the same uniform charge shall be imposed upon the owners of the included lands as soon as the lands are annexed and included in the district.

      (2) The charge shall be due and payable as soon as imposed and billed, and if not paid within 60 days after the billing date, the charge shall become delinquent.

      (3) In case the sums received from the charges exceed the total cost of items for which the charges are imposed, the surplus shall be placed in the general fund of the district and used to pay cost of construction. Upon dissolution of the district, any amount of surplus remaining shall be prorated and refunded to the landowners who paid the charges. [Amended by 1991 c.459 §425c]

 

      547.145 [Repealed by 1969 c.345 §20]

 

      547.150 Payment of claims; warrants; nonpayment; interest-bearing warrants; charge or levy of tax to pay. All claims against the district shall be paid by warrants drawn on the district treasurer and signed by the president and secretary of the board. When any warrant is not paid when presented to the treasurer because of lack of funds in the treasury, such fact shall be indorsed on the back of the warrant, and such warrant shall draw interest thereafter at the rate of six percent per annum until there is money on hand to pay the amount of the warrant and the interest then accumulated. No interest shall be allowed on warrants after sufficient funds are in the treasury to pay the indorsed warrants and interest. The secretary shall give notice by publication whenever sufficient funds are available to pay outstanding warrants. The board shall charge or levy each year a sufficient amount of money to pay the outstanding warrants of the district to the extent permitted within the constitutional limitation. [Amended by 1991 c.459 §425d]

 

ENGINEER; PLAN FOR RECLAMATION; COMMISSIONERS; ASSESSMENT OF BENEFITS

 

      547.205 Appointment of engineer; duties; surveys; report; maps. Within 30 days after organizing, the board of supervisors shall appoint a competent civil engineer as chief engineer, who may be an individual, partnership or corporation, and who shall engage such assistants as the board of supervisors may approve. The chief engineer shall:

      (1) Have control of the engineering work in the district.

      (2) Make all necessary surveys of the lands within the boundary lines of the district, as described in the petition, and of all lands adjacent thereto that may or will be improved or reclaimed in part or in whole by any system of drainage or levees that may be outlined and adopted.

      (3) Make a report in writing to the board of supervisors with maps and profiles of the surveys, which report shall contain a plan for draining and reclaiming the lands described in the petition or adjacent thereto from overflow of or damage by water, and which maps and profiles shall indicate so far as necessary the physical characteristics of the lands, and location of any public roads, railroads and other rights of way, roadways and other property or improvements located on such lands.

 

      547.210 Engineer’s report; adoption by supervisors; report constitutes “Plan for Reclamation”; exclusion of lands not benefited; certain irrigated lands deemed to be benefited. (1) The chief engineer shall make a report in writing to the board of supervisors whenever the board requires. Upon receipt of the final report of the engineer concerning surveys made of the lands contained in the district, and plans for reclaiming the same, the board shall adopt the report or any modification thereof approved by the chief engineer. The adopted report shall be the plan for draining and reclaiming such lands from overflow or damage by water, and shall be known and designated as the “Plan for Reclamation.” The plan shall be filed with the secretary of the board of supervisors and by the secretary copied into the records of the district.

      (2) Any lands included in the district, which will not be reclaimed or benefited by the construction of the work as specified in the plan for reclamation, may be excluded from the district by order of the county court. Any charge billed to an owner of land so excluded shall be refunded to the person paying the same. However, any irrigated lands contributing to the wet, swamp or overflowed condition of any lands of the district, the waste or seepage waters from which lands will be carried by and disposed of through the works specified in the plan for reclamation, shall be deemed benefited by the construction of the works as specified in the plan. [Amended by 1991 c.459 §425e]

 

      547.215 Commissioners; appointment; qualifications; quorum; continuing existence. Upon adoption of the plan for reclamation, the county judge shall, by order, appoint three commissioners (who shall not be landowners in the district nor of kin within the fourth degree of consanguinity to any person owning land in the district), one of whom shall be a civil engineer and two of whom shall be freeholders residing within the state. A majority of the commissioners shall constitute a quorum and shall control the action of the board on all questions. Such commissioners shall constitute a body which shall continue in office and may be convened at any time by the county court for the purpose of correcting any errors, omissions or other mistakes that shall have been discovered in its original report as the same may have been amended and supplemented from time to time or for any other good cause shown. The court shall fill any vacancy occurring in such body of commissioners by appointment of a person who has the qualifications required by this section of the commissioner the person is to replace. Whenever said body of commissioners has been reconvened by the court, it shall thereafter make its report in response to the directions of the court and such report when completed shall be subject to ORS 547.245, with reference to a hearing thereon and a confirmation thereof by order or judgment of the court before such supplemental report shall go into effect. [Amended by 1953 c.434 §2; 2003 c.576 §506]

 

      547.220 Notice of appointment of commissioners; meeting; secretary of board of supervisors to furnish certain information; oath; officers. The county clerk upon the filing of the order of appointment shall notify each commissioner of appointment by written or printed notice, and in the notice the county clerk shall state the time and place for the first meeting of the commissioners. The secretary of the board of supervisors shall attend the meeting, and shall furnish the commissioners a complete list of all lands in the district, and the names of the owners thereof, as were contained in the petition, at the date of the judgment of the court incorporating the district. The secretary shall also furnish the commissioners a copy of the plan for reclamation, with maps and profiles in the office of the secretary. The commissioners at the meeting, or within 10 days thereafter, shall each take and subscribe to an oath that they will faithfully and impartially discharge their duties as commissioners and make a true report of the work done by them. They shall also at the meeting elect one of their own number chairperson. The secretary of the board of supervisors shall be ex officio secretary of the commissioners. [Amended by 2003 c.576 §507]

 

      547.225 Assessment of benefits and damages by commissioners; report; compensation. (1) Within 30 days after qualifying, the commissioners shall begin their duties. The chief engineer shall accompany them at all times, and render an opinion in writing when called for.

      (2) The commissioners shall proceed to view the premises and determine the value of all lands within or without the district to be acquired and used for rights of way, holding basins or other works set out in the plan for reclamation. They shall assess the amount of benefits and the amount of damages, if any, that will accrue to each parcel of land, including irrigated lands, irrigation ditches and canals which contribute to the swampy, wet or overflowed condition of those lands, or any lands, public highways, railroads and other rights of way, roadways and other property which will be affected by the proposed reclamation work.

      (3) For the purpose of determining benefits under the provisions of this section, all irrigated lands having an available water supply for irrigation that are adjacent to and on a higher level than other lands within the district and which fall naturally within the same watershed as the land within the district, shall be deemed contributing to the wet, swampy or overflowed condition of the lands of the district, and shall be deemed benefited by the construction of the works as specified in the plan for reclamation.

      (4) The commissioners shall give due consideration and credit to any other drains, ditches, levees or other systems of reclamation which already have been constructed and which afford partial or complete protection to any tract or parcel of land in the new district.

      (5) The public highways, railroads and other rights of way, roadways and other property shall be assessed according to the increased physical efficiency and decreased maintenance cost thereof by reason of the protection to be derived from the proposed works and improvements.

      (6) The commissioners shall have no power to change the plan for reclamation.

      (7) The commissioners shall prepare a report of their findings, which shall be signed by at least a majority of the commissioners and filed in the office of the county clerk of the county in which the district is organized. The secretary of the board of supervisors shall accompany the commissioners while engaged in their duties, and shall perform all clerical work of the board. The commissioners shall report to the board of supervisors the number of days each was employed and the actual expenses incurred. Each commissioner shall be paid $5 per day for services, and necessary expenses in addition thereto.

 

      547.230 Notice of report of commissioners; publication; form. (1) Upon the filing of the report of the commissioners, the county clerk shall give notice thereof by publication once a week for three consecutive weeks in some newspaper published in each county in the district. It shall not be necessary for the notice to name the parties interested. The notice shall be in small type, in substantially the following form:

______________________________________________________________________________

Notice of Filing of Commissioners’ Report for

_____Drainage District

      Notice is given to all persons interested in the land included within the _____ drainage district, _____County (or counties), Oregon, (here describe land or give boundaries of district) that the commissioners heretofore appointed to assess benefits and damages to the property and lands situate in the drainage district and to appraise the cash value of the land necessary to be taken for rights of way, holding basins and other works of the district within or without its limits, filed their report in this office on the ___ day of______, 2___, and you are notified that you may examine the report and file exceptions to all or any part thereof, on or before the ___ day of_____, 2___.

 

____________

 

County Clerk of _____ County, Oregon.

______________________________________________________________________________

      (2) Where lands in different counties are contained in the report, the notice shall be published in some newspaper in each county in which the lands so affected are situated.

 

      547.235 Exceptions to report or assessment; hearing by court; modifications; transmission of judgment and report to supervisors and county clerks; appeal from judgment. The drainage district or any owner of land in the district may file exceptions to the report or to any assessment of either benefits or damages, within 10 days after the last day of publication of the notice provided for in ORS 547.230. All exceptions shall be heard by the court and such amendments and modifications made to the report of the commissioners as may in the court’s judgment be equitable. When it appears to the satisfaction of the court, after having heard and determined all the exceptions, that the estimated cost of the improvement contemplated in the plan for reclamation is less than the benefits to be derived therefrom, the court shall approve and confirm the commissioners’ report, as so amended and modified. The county clerk shall transmit a certified copy of the judgment and copy of the commissioners’ report, as confirmed or amended by the court, to the secretary of the board of supervisors of the district and to the clerk of each county having lands in the district, or affected by the report, where the same shall become a permanent record. Each such county clerk shall receive a fee of $3.75 for receiving, filing and preserving the same. Any person may appeal from the judgment of the court. [Amended by 1971 c.621 §39; 1975 c.607 §42; 1979 c.833 §34; 1981 c.835 §16; 2003 c.576 §508]

 

      547.240 Dissolution of district if cost exceeds benefits; obligations and expenses; additional charges. If after determining the objections made to the commissioners’ report, the court finds that the estimated costs of works and improvements as reported by the commissioners, or as amended by the court, exceed the estimated benefits, the court shall then render a judgment, declaring the incorporation of the district to be dissolved as soon as all costs incurred, which shall include court costs and all obligations and expenses incurred in behalf of the district by the board of supervisors, are paid. If the uniform charge made under ORS 547.140 is found insufficient to pay all the costs, the board of supervisors shall make such additional uniform charges as will be necessary to pay the deficiency. [Amended by 1991 c.459 §425f; 2003 c.576 §509]

 

      547.245 Reassessment of benefits. At any time after the expiration of five years from the confirmation of the report of the commissioners, as provided by ORS 547.235, and upon the filing of a petition with the county clerk signed by at least one-tenth of the owners of the lands within the drainage district or the owners of at least one-tenth of the lands within such district, setting forth that the original assessments or benefits are inequitable and unjust, the county court shall appoint three commissioners, as provided by ORS 547.215, to reassess the benefits in the district. The commissioners shall report the reassessment to the court. Upon the filing of the report of the commissioners, the county clerk shall give notice of hearing thereon by publication once a week for three consecutive weeks in some newspaper published in each county in the district, the last insertion to be made at least 15 days prior to the hearing. At least 10 days before the day set for hearing, exceptions may be filed by any interested person, and upon hearing the same the court shall approve the report or direct how it shall be modified and, when so modified or approved, shall confirm it. The assessment as confirmed shall take the place of all prior assessments; provided, that in no case shall the total amount of assessments be less than the outstanding obligations. The county clerk shall transmit a certified copy of the court’s judgment and copy of the commissioners’ report, as confirmed or amended by the court, to the secretary of the board of supervisors of the district and to the county clerk of each county having lands in the district. [Amended by 2003 c.576 §510]

 

      547.250 Changes in plan for reclamation; petition for amendment of plan; notice. The board of supervisors shall have power to make any change in the plan for reclamation by action of the board until such time as the commissioners have filed their report. After that all changes shall be made as follows:

      (1) The board of supervisors, for and in behalf of the district, or the owners of land adjacent to the district, may file a petition in the office of the clerk of the court which organized the district, praying the court to amend its former judgment incorporating the district, by correcting the names of landowners, by striking out any such names, by adding, striking out or correcting the descriptions of any lands within or alleged to be within the boundary lines of the district, or in any other manner.

      (2) The petition may ask permission of the court to amend or change the plan for reclamation or to correct any errors, omissions or other mistakes that have been discovered in the plan or may ask that the boundary lines of the district be extended so as to include lands not described by and included in the petition and judgment of the court incorporating the district. However, in no case shall any lands be included in the district other than the lands described in the original petition for the creation of the district and in the judgment of the court incorporating it, unless the persons shown by the records of the county to be the owners of not less than 60 percent of the acreage sought to be brought within the boundary lines of the district and not described in and included in the original petition and judgment of the court incorporating such district, shall first sign and file with the court a petition therefor.

      (3) If the petition asks that the lines of the district be in any manner changed, it shall also ask the court to appoint three commissioners, as provided for under ORS 547.215, to appraise the land that shall be taken for rights of way, holding basins, or other works, or assess the benefits and damages to any lands, public highways, railroad and other property already in the district, or that may be annexed to the district by the proposed amendments and changes to the plan for reclamation or the proposed change in the boundary lines. As soon as the petition is filed the clerk of the court shall give notice in the manner and for the time provided for in ORS 547.020, the notice to be substantially in the following form:

______________________________________________________________________________

Notice of Drainage Hearing.

      To the owners and all persons interested in the lands corporate and other property in and adjacent to _____ Drainage District:

      You are notified that (here state by whom petition was filed) has filed in the office of the county clerk of _____ County, _____, a petition praying the county court for permission to (here insert the prayer of the petition), and unless you show cause to the contrary on or before the first day of the next term of the _____ County Court to be held on the ___ day of _____, 2___, the prayer of the petition may be granted.

 

____________

 

County Clerk of _____ County.

______________________________________________________________________________ [Amended by 2003 c.576 §511]

 

      547.255 Objections to petition; findings; judgment; recording. Any owner of land located in the district, or any owner of land located outside of the district that will be affected by the proposed changes, amendments, and corrections enumerated in the petition, may file objections to the granting of the prayer of the petition, on or before the first day of the term of court at which the petition is to be heard. The court shall hear the petition and all objections filed against it in a summary manner and enter a judgment according to its findings. The clerk of the court shall, within 15 days after the granting of the judgment, transmit a certified copy of the judgment and of the petition to the secretary of the board of supervisors, and to the recorder of deeds of each county having land in the district. Each such recorder shall file and preserve the same in the recorder’s office, for which the recorder shall receive a fee of $3.75. [Amended by 1971 c.621 §40; 1975 c.607 §43; 1979 c.833 §35; 1981 c.835 §17; 2003 c.576 §512]

 

      547.260 Appointment of commissioners when plan amended; subsequent proceedings; court costs. (1) If the judgment of the court provides that the plan for reclamation may be amended, changed or corrected or the boundary lines of the district extended, the court shall appoint three commissioners, possessing the same qualifications as the commissioners appointed under ORS 547.215, to appraise property to be taken, assess benefits and damages, and estimate the cost of improvements the same as is required of commissioners acting under ORS 547.225. The commissioners shall make their report in writing and file it with the county clerk, after which the case shall be proceeded with in the same manner as is provided for the organization of drainage districts.

      (2) If the petition is dismissed the district shall pay the cost; but if the petition is sustained in whole or in part the objectors shall pay the court costs. [Amended by 2003 c.576 §513]

 

      547.265 Amendment of plan where works or charge insufficient; additional charge. Where the works set out in the plan for reclamation of any drainage district are found insufficient to reclaim in whole or in part any or all of the land of the district, the board of supervisors may formulate new or amended plans containing new ditches, levees or other works, and additional assessments may be made in conformity with the provisions of ORS 547.225, the same to be made in proportion to the increased benefits accruing to the lands because of the additional works. If it should be found at any time that the total of the charges made under ORS 547.455 to 547.485 is insufficient to pay the cost of works set out in the plan for reclamation or additional work done under this section, the board of supervisors may impose an additional charge to provide funds to complete the work, provided the total of all charges does not exceed the total amount of benefits assessed. [Amended by 1991 c.459 §425g]

 

WORKS AND IMPROVEMENTS

OF DISTRICT

 

      547.305 Entry on land; acquisition of property; water filings and appropriations; condemnation of property devoted to public use; right of way across state lands. (1) The officers and employees of any drainage district shall have the right to:

      (a) Enter upon any land in the manner provided by ORS 35.220.

      (b) Locate the necessary drainage or irrigation works and the necessary branches for the same, on any lands that may be deemed best for such location.

      (c) Acquire, either by lease, purchase, condemnation or other legal means, all lands, rights of way, easements and other property necessary for the construction, operation or maintenance of any drainage or irrigation works, including the enlargement, improvement or extension of any natural or artificial waterway for such purposes.

      (d) Make all necessary water filings or appropriation of water under the general laws of Oregon for irrigation of lands within such district.

      (2) The property, the right to condemn which is hereby given, shall include property already devoted to public use that is less necessary than the use for which it is required by the district, whether used for drainage, irrigation or any other purpose. The right of way is hereby given, dedicated and set apart to locate, construct and maintain such drainage or irrigation works over and through any of the lands that are now or may be the property of this state.

      (3) In the acquisition of property or rights by condemnation, proceedings under the provisions of this section shall be brought in the name of the district under the provisions of ORS chapter 35. [Amended by 2003 c.477 §8]

 

      547.310 Board authority regarding reclamation works; contracts; engineer’s duties. (1) The board of supervisors shall have full power and authority to:

      (a) Build, construct and complete any works and improvements needed to carry out the plan of reclamation.

      (b) In the name of the district, make all necessary water filings and appropriations of water for the subsequent irrigation of the lands within the district.

      (c) Construct, operate and maintain irrigation works for the irrigation of the lands within the district.

      (d) Hire personnel and purchase machinery, equipment and supplies.

      (2) The board may after advertising for bids, let a contract for construction of the whole or any part of the drainage or irrigation works to the lowest responsible bidder, which contract shall be in writing. The complete plans and specifications for the drainage or irrigation of the lands shall be attached to and made a part of each contract. Good and sufficient bond, running in favor of the district, shall be required of each contractor, conditioned that the contractor will well and truly comply with all the provisions of the contract and perform all work in accordance with the terms thereof.

      (3) The chief engineer shall be superintendent of all the works and improvements and shall, whenever required, and at least once each year, make a full report to the board of all work done and improvements and make such suggestions and recommendations to the board as the chief engineer deems proper. [Amended by 1989 c.182 §31]

 

      547.315 Connecting existing improvements; procedure; connection with improvements outside district. (1) At the time of the construction in any district of the plan for reclamation, all ditches or systems of drainage already constructed in the district and all watercourses shall, if necessary to the drainage of any lands in the district, be connected with and made a part of the works and improvements of the plan of drainage of the district. But no ditches, drains or systems of drainage constructed in the district shall be connected therewith, unless the consent of the board of supervisors is first obtained. This consent shall be in writing and shall particularly describe the method, terms and conditions of such connection, and shall be approved by the chief engineer. The connections, if made, shall be in strict accord with the method, terms and conditions laid down in the consent.

      (2) If the landowners wishing to make such connection are refused by the board of supervisors or decline to accept the consent granted, such owners may file a petition for such connection in the circuit court having jurisdiction in the district, and the matter in dispute shall in a summary manner be decided by the court, whose decision shall be final and binding on the district and landowners.

      (3) No connection with the works or improvements of the plan of drainage of the district or with any ditch, drain or artificial drainage wholly within the district shall be made, caused or effected by any landowner, company or corporation, municipal or private, by means of or with any ditch, drain, cut, fill, roadbed, levee, embankment or artificial drainage wholly without the limits of the district, unless such connection is consented to by the board of supervisors, or in the manner hereinbefore provided.

 

      547.320 Powers of districts regarding irrigation works; bonds. Whenever it appears necessary, proper or beneficial to irrigate any of the lands within any drainage district, whether or not the drainage works have been actually acquired or constructed, the district may cause irrigation reservoirs, canals, ditches, and other works to be constructed, operated and maintained. To this end the district shall in all respects have the same power and authority as is conferred respecting drainage, and all powers conferred upon drainage districts by ORS 547.305, 547.310, 547.355 and 547.360 with respect to drainage shall be construed to include irrigation. However, any bonds issued solely for irrigation purposes shall be known as “Irrigation bonds of _____ drainage district.”

 

      547.325 Powers of districts under 1,000 acres regarding domestic water supply. (1) Any drainage district embracing less than 1,000 acres may:

      (a) Within and adjacent to the district, own, construct, install, contract to use and to receive service from, and buy and sell, wells, reservoirs, pumps, pipelines and other equipment used to supply water from wells for domestic purposes and for watering lawns and gardens.

      (b) Buy and sell, deliver, supply and dispose of water for domestic purposes and for watering lawns and gardens, for profit, to any person within the limits of such drainage district or adjacent thereto.

      (c) Fix and collect the rates and charges therefor.

      (2) The board of supervisors may act for such district in exercising the power and authority herein provided.

 

CONTRACTS WITH UNITED STATES FOR RECLAMATION

 

      547.355 Contracts with United States for reclamation by drainage or irrigation authorized. The board of supervisors of any drainage district, whenever it is determined by the board that it is for the best interests of the district, may enter into a contract with the United States for the reclamation by drainage or irrigation of the lands within the boundaries of the district, under the provisions of the Act of Congress of June 17, 1902 (32 Stat. 388), and Acts amendatory thereof and supplementary thereto, and especially the Act of Congress approved August 13, 1914, entitled, “An act extending the period of payment under reclamation projects, and for other purposes,” commonly known as the “Twenty-Year Extension Act.”

 

      547.360 Payment of amounts due; assessments on lands; lien thereof; collection. The board of supervisors of any drainage district shall provide by a resolution, adopted at a regular meeting or at a special meeting called for that purpose, for the payment of the amounts to become due under such contract with the United States, according to the provisions of the contract, by assessment upon the lands which are to be benefited by the drainage or irrigation. The assessments shall be a lien upon the lands of the district to the same extent as other assessments under the drainage laws of this state, and, except as provided in ORS 547.492, shall be collected by the tax collector of the county within which the lands are situated the same as other taxes are collected. [Amended by 1991 c.459 §425h]

 

DISTRICTS WEST OF CASCADES; CONSTRUCTION AND MAINTENANCE OF DITCHES

 

      547.405 Districts west of Cascades; control of supervisors over improvements. The boards of supervisors of all drainage districts lying west of the Cascade Mountains, whether or not organized under the Drainage District Act, shall have supervision and control of all drainage ditches, laterals, drains, canals, sloughs, waterways or conduits within the boundaries of their districts and may prescribe the width and grade thereof. They may construct and maintain ditches, laterals, drains, canals, sloughs, waterways or conduits within the boundaries of their districts.

 

      547.410 Maintaining improvements; notice to owner or occupant of premises. (1) Whenever the engineer or secretary of such a drainage district notifies the supervisors that any ditch, lateral, drain, canal, slough, waterway or conduit is less efficient, by reason of the failure of the owner of the premises upon which it is situated to repair, clean or grade the same, the board of supervisors shall serve or cause to be served upon such owner, if the owner is known and residing within the county in which the district is situate, or if not a resident of the county, then upon the occupant of the premises, a notice in writing notifying the owner or occupant of the clogged or obstructed condition of the ditch, lateral, drain, canal, slough, waterway or conduit.

      (2) The notice shall be served by delivering to the owner, occupant or person in charge of the premises a copy thereof certified to be such by the person serving it, or if there is no occupant or the owner is not a resident of the county, then the notice shall be served by posting a copy of it in a conspicuous place upon the premises. Immediately after serving or posting the notice, the person serving it, by authority of the board of supervisors, shall file the original notice with the county clerk of the county in which service is made, together with a return on the notice stating the time and manner of making service. The notice and return, when so filed, shall be retained as a public record of the county.

 

      547.415 Failure of owner or occupant to act; maintenance by supervisors. If the owner or occupant of the premises upon which the clogged or obstructed ditch, lateral, drain, canal, slough, waterway or conduit is situated fails for 10 days after being notified of the existence of such clogged or obstructed condition, to repair, clean or grade the ditch, lateral, drain, canal, slough, waterway or conduit or remove the obstruction therefrom, the board of supervisors shall immediately repair, clean or grade the same and cause it to be promptly placed in a proper and efficient condition.

 

      547.420 Liability for cost of work; notice of claim of lien; foreclosure; sale of land. (1) Upon completion of the work the board of supervisors shall bill the owner or occupant of the premises for the expense necessarily incurred in the repair, grading or cleaning of the canal, ditch, lateral, drain, slough, waterway or conduit.

      (2) If any charge remains unpaid beyond the due date thereof, the secretary of the district may file a notice of claim of lien with the county clerk of the county in which the lands for which the charges were billed are situated. The notice of lien shall be in writing and must contain:

      (a) The name of the landowner or occupier who was billed.

      (b) A statement of the amount claimed past due.

      (c) A description of the land upon which the work was completed sufficient for identification.

      (3) The county clerk shall cause the notice of lien to be recorded in the County Clerk Lien Record maintained under ORS 205.125. The amount of the charges and expense, as of the date the notice of lien is filed, shall constitute a first lien upon the lands or premises, except as to taxes. If the charges and expenses are not paid and the lien discharged by the owner or occupant within 30 days from the date the notice is filed, suit or action may be brought in the name of the drainage district for the foreclosure of the lien. The suit or action shall be brought by the district attorney, or, at the option of the board, by an attorney employed by the board. The lands affected thereby shall be sold under execution for the payment and satisfaction of the lien and of the costs and disbursements incurred in connection with the prosecution of the suit or action. [Amended by 1991 c.459 §425i]

 

      547.425 Prohibited practices. No person shall:

      (1) Throw, dump or place or allow to be thrown, dumped or placed, any rubbish, refuse or any article or thing in any ditch, lateral, canal, slough, waterway or conduit used as a part of or in connection with any drainage works or drainage plant or drainage system or any waterway under the control of any drainage district lying west of the Cascade Mountains; or

      (2) Befoul or pollute or allow to be befouled or polluted any such ditch, lateral, canal, slough, waterway or conduit; or

      (3) In any manner obstruct or permit to be obstructed by stock any such waterway, canal, ditch, lateral, slough or conduit.

 

      547.430 Civil liability for expense of removal of filth or obstruction; recovery by action. Any person who throws, dumps or places or allows to be thrown, dumped or placed, any rubbish, refuse, or any article or thing in any such ditch, lateral, canal, slough, waterway or conduit shall, in addition to the penalty provided in ORS 547.990, also be liable to the owner of the ditch, lateral, canal, slough, waterway or conduit, or other person or district having control, charge or supervision of the same, for all expense legitimately occasioned or incurred by such person or district in the removal of any such rubbish, refuse or other article or thing or the prevention of such befoulment or pollution, and for all damage that may be done or occasioned to the ditch, lateral, canal, slough, waterway or conduit by reason of such dumping, throwing or placing of the rubbish, refuse or article or thing, or the befoulment or pollution. The sum may be recovered in a civil action brought in the name of the person or district having control of or using the ditch, lateral, canal, slough, waterway or conduit that was injured, damaged, befouled, polluted or obstructed.

 

ASSESSMENTS, CHARGES AND TAXES

 

      547.455 Annual charge or assessment; computation; apportionment; liability of state lands; payment of assessments by bonds, coupons or warrants. (1) The board of supervisors shall each year make a computation of the whole amount of money to be raised by the district through charges or assessments for the ensuing year for any purposes whatsoever in carrying out the provisions of the Drainage District Act, including maintenance and operation and estimated delinquencies on charges or assessments. This amount when determined by the board shall constitute an assessment upon all the land included in the district and shall be apportioned by the board in accordance with the report of the commissioners as confirmed or amended by the court as provided for in ORS 547.235.

      (2) Any land owned by any person totaling less than one acre shall be charged or assessed as one acre.

      (3) Any land, the title to which is vested in the state, or state lands sold under contract in any drainage district, shall be subject to charge or taxation by the district, and the full amount of the charge or assessment due against such lands shall be paid to the district at the same times and in the same manner as other drainage district charges and assessments are paid.

      (4) The tax collector shall receive any past due bond of the drainage district or any past due interest coupon from any bond of the district in payment of any charge or assessment made for the purpose of paying bonds or bond interest of the district, and shall receive in payment of charges or assessments levied for operation and maintenance purposes any warrants drawn upon the operation and maintenance fund, such warrants received in payment of charges and assessments to be in order of issuance. [Amended by 1953 c.446 §3; 1991 c.459 §425j]

 

      547.460 County, city and town lands subject to taxation, assessment or charges. Any land situated within a drainage district, the title to which is vested in any county, city or town, shall be subject to taxation, assessment or charge by the district. The full amount of taxes or assessments due against the land or the full amount of charges imposed upon the county, city or town shall be paid to the district at the same times and in the same manner as other drainage district taxes, assessments or charges. [Amended by 1991 c.459 §425k]

 

      547.465 Assessment or charge of low lands used for growing crops. Whenever lands located in a drainage district which, because of their low elevation, were not assessed benefits in accordance with ORS 547.225, are used for growing crops, the board of supervisors may levy an annual assessment against the lands or may impose a charge upon the owners of the lands for maintenance and operation. The assessment or charge shall not exceed 100 percent of the rate levied against assessed lands in the district, or imposed upon owners of land in the district, having the lowest elevation. The charges or assessments shall be collected in the same manner as other charges or assessments for maintenance and operation in drainage districts are collected. [Amended by 1991 c.459 §425L]

 

      547.470 Extra assessment or charge for lake drainage. When, in the judgment of the board of supervisors of any drainage district, it is deemed necessary or expedient to drain any lake, which entails extra or additional work in excess of that required in the drainage of lands of higher elevation and where the cost of maintenance and pumping to maintain drainage of such lake will be in excess of that necessary for the reclamation and maintenance of lands within the district other than such lake, an extra assessment or charge for such additional work or a higher rate for such pumping and maintenance may be charged and made against the lands, or owners or occupants of the lands, covered by such lake, to the extent of the respective additional benefits to such lands over lands of a higher elevation in the district and benefited thereby. [Amended by 1991 c.459 §425m]

 

      547.475 List of assessments and apportionments. The board of supervisors shall prepare a list or record of assessments and apportionments, giving the description of the ownership or holdings of each person therein assessed, which shall be certified by the board in the manner provided in ORS 310.060 not later than June 15 of each year to the county assessor of each county in which lands of the district are situated. The county assessor shall enter the assessment upon the county assessor’s roll against the property therein described, in the same manner as other municipal taxes are entered by the county assessor. [Amended by 1963 c.168 §1; 1991 c.459 §425n]

 

      547.480 Collection of tax; disposition. The collection of the tax shall be coincident with collection of the state and county tax, and shall be governed by the laws relating thereto, except that the tax collector shall collect and account for the tax for operation and maintenance separate from the taxes levied by the district for other purposes. When paid to the county treasurer all taxes or assessments levied and collected for operation and maintenance shall be carried in a fund to be known as the operation and maintenance fund. All warrants issued in payment for operation and maintenance, as provided in ORS 547.150, shall be drawn against and paid out of this fund. The county treasurer shall make returns to the secretary of the board of supervisors, and shall pay over and account for all moneys collected thereon quarterly to the treasurer of the district. [Amended by 1973 c.305 §19]

 

      547.482 Filing boundary change with county assessor and Department of Revenue. 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. [2001 c.138 §42]

 

      Note: 547.482 was added to and made a part of ORS chapter 547 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

 

      547.485 Governing body of county to make assessment and levy upon failure of supervisors to do so. In case of neglect or refusal of the board of supervisors to cause such assessment and levy to be made, the assessment and levy shall be made by the governing body of the county in which the office of the board of supervisors is situated, sitting for the transaction of county business, in the same manner that the court or board levies county taxes. The levy and assessment shall contain the apportionments and description of ownership holdings of each person assessed in the same manner as provided in ORS 547.475 and shall be certified to the assessor not later than July 15 in the manner provided in ORS 310.060. All expenses incident thereto shall be borne by the district. The levy and assessment shall be entered on the county tax roll by the county assessor in the manner provided in ORS 547.475. [Amended by 1963 c.168 §2; 1991 c.459 §425o]

 

      547.490 Waiver of penalty or interest by certain districts. All drainage districts containing not more than 2,000 acres, organized under the provisions of the Drainage District Act, may waive payment of penalty or interest, or both, on district assessments. County tax collecting officers are authorized to collect and receipt for assessments levied by any such drainage district, waiving payment of penalty or interest, or both, when presented with a certified copy of resolution or other action of the drainage district waiving such payment.

 

      547.492 Alternative charge or assessment method. (1) The board of supervisors of a drainage district may provide by resolution for the imposition, billing and collection of charges or assessments of the district in the manner provided under ORS 545.482, 545.484, and 545.494 to 545.508 for irrigation districts. The method of collecting district charges or assessments authorized by this section shall be in lieu of the method provided for under ORS 547.455 to 547.490.

      (2) A resolution adopted under this section may apply to charges or assessments for operation and maintenance, repairs, bond or interest payments, payments due or to become due to the United States under any contract of the district with the United States or other expenses of the district.

      (3) Where, in ORS 545.482, 545.484 and 545.494 to 545.508, the board or an officer of an irrigation district is referred to, the corresponding board or officer of a drainage district shall perform the required actions. [1985 c.803 §2; 1991 c.459 §425p]

 

      547.495 Crops bound by lien; exceptions. All drainage districts organized pursuant to the provisions of the Drainage District Act shall have a lien on all crops grown on lands within such districts for that portion of the annual charges or assessments, levied against the lands on which the crops are grown, or imposed upon the owners or occupants of the land, that are for maintenance and operation of such districts. This lien shall be prior to every other lien, mortgage or encumbrance on the crop, except labor liens now granted by the laws of Oregon and crop mortgages given by landowners in the district to federal or state loaning agencies set up by the federal government or the state to secure loans, the proceeds of which are used in the production of crops of such landowners, provided such loaning agencies certify to the districts that such loans cannot otherwise be made to the landowners. The lien shall be in addition to any other lien securing the payment of maintenance and operation charges or assessments, and shall be a continuing one and shall bind the crops after, as well as before, they have been gathered; provided, that the share of any tenant who has leased such lands on a share rent basis shall be exempt from the lien to the extent of three-fourths of the entire crop. [Amended by 1991 c.459 §425q]

 

      547.500 Notice or claim of crop lien; filing; contents. The board of supervisors of every drainage district which may elect to claim the benefits of ORS 547.495 to 547.515 shall file with the county clerk of the county in which the land is located, any time before the removal of the crop upon which a lien is desired, a statement verified by the oath of the secretary of the board or some person having knowledge of the facts, setting forth the amount of that portion of the annual charges or assessments for maintenance and operation levied against the land, or imposed upon the owners or occupants of the land, on which the crop is grown and for which a lien is desired, with a description of the land sufficient for identification, the name of the owner of the crop, or reputed owner if known, and the name of the owner of the land on which the crop is grown. [Amended by 1991 c.459 §425r]

 

      547.505 Recording of crop lien claim by clerk; indexing. The county clerk shall record the claim in a book kept for that purpose. The record shall be indexed as the record of chattel mortgages is kept and indexed.

 

      547.510 Form of crop lien claim; foreclosure. (1) A claim for lien substantially in the following form shall be sufficient:

______________________________________________________________________________

NOTICE OF LIEN UPON CROPS

      Notice is given that_____, a drainage district organized under and pursuant to the provisions of ORS chapter 547, claims a lien upon that certain crop of _____ growing on the following described lands located in the drainage district in _____ County, Oregon:_____, for that portion of the annual charges or assessments levied by the above-named drainage district against lands, or owners or occupants of the lands, on which the crop is growing, for maintenance and operation of the district, in the sum of $___; that the name of the owner or reputed owner of the crop is_____; that the owner of the land on which the crop is growing is_____; that no part of the charge or assessment for which a lien herein is claimed has been paid, except $___; and that there now is due and remaining unpaid thereon, after deducting all just credits and offsets, the sum of $___.

 

____________, Claimant.

 

 

State of Oregon,         )

                                    )           ss.

County            of ______      )

 

      I, ____________, being first duly sworn, on oath say that I am _____ of the drainage district named in the foregoing claim, that I have personal knowledge of the facts therein set out; that I know the contents thereof, and believe the same to be true.

 

____________

      Subscribed and sworn to before me this ___ day of_____, 2___.

 

____________

      Notary Public for Oregon

(Seal) My commission expires________.

______________________________________________________________________________

 

      (2) The lien so created may be foreclosed in the manner provided in ORS 79.0601 to 79.0628. [Amended by 1961 c.726 §418; 1991 c.459 §425s; 2001 c.445 §176]

 

      547.515 Removal of crops to another county; recording of notice in latter county; rights of purchasers and mortgagees. When such crops are removed from the county in which the notice of lien is recorded, the lien shall be suspended as to subsequent purchasers and mortgagees thereof in good faith and for a valuable consideration, from and after 30 days from the time of such removal, unless within 30 days from the time of such removal the notice of lien is recorded in the county to which the property is removed. The lien shall remain suspended until the notice of lien is recorded in the county to which the crop is removed; but shall be a lien upon the crop while it is in any county in which the notice of the lien is recorded.

 

      547.520 [Repealed by 1989 c.182 §49]

 

BONDS OF DISTRICT

 

      547.555 Bonds; issuance; interest; place of payment; maturities. (1) The board of supervisors may, if in its judgment it seems best, and subject to the approval of the electors of the district, issue bonds of the district for any purpose necessary or convenient to carry out the provisions of the Drainage District Act, including refunding of outstanding bonds, in denominations of not less than $100, bearing interest from date at a rate determined by the board, payable semiannually, to mature at annual intervals within 40 years, commencing after a period of years not later than five years, to be determined by the board of supervisors, both principal and interest being payable at some convenient insured institution or trust company, as those terms are defined in ORS 706.008, that is named in the bonds. Principal and interest, including principal, interest and premium payments made to redeem bonds under ORS 547.580, may be payable at the office of the treasurer of the district.

      (2) The bonds shall be signed by the president of the board, attested with the seal of the district and by the signature of the secretary of the board. They may be issued so as to mature serially in annual amounts so as to be approximately equal, principal and interest, and may be issued so as to include a sum sufficient to pay the first four years’ interest, or less, to accrue on the bonds. [Amended by 1969 c.694 §36; 1977 c.188 §8; 1983 c.740 §215; 1991 c.459 §425t; 1997 c.631 §490; 2001 c.215 §20]

 

      547.560 Sale of bonds; procedure. The board of supervisors may sell, from time to time, the bonds which have been authorized, in such quantities as may be necessary and most advantageous. Before making any sale, the board shall, at a meeting, by resolution, declare its intention to sell a specified amount of bonds and the day, hour and place of such sale, and shall cause notice thereof to be given by publication for at least 30 days in three newspapers published in Oregon, one of which shall be a newspaper published in the county in which the office of the board is situated, if there is a newspaper published in that county, and in any other newspaper at its discretion. The notice shall state that sealed proposals will be received by the board of supervisors at its office for the purchase of bonds until the day and hour named in the resolution. At the time appointed, the board shall open the proposals and may reject any and all bids. After offering the bonds for sale, if no satisfactory bid is received the board may use them for any purpose for which the proceeds from the sale of bonds may be used, but the board shall in no event sell or dispose of any of said bonds for less than 90 percent of the face value thereof. Nothing in this section shall inhibit the district from providing for the drainage of lands within the district, in units or portions, from time to time.

 

      547.565 Payment of bonds from assessments. The bonds and the interest thereon and all obligations for the payment of money authorized and incurred by such district shall be general obligations of the district and shall be paid by the revenue derived from the annual assessments upon the real property within the district. All the real property within the district shall be liable to be assessed for such payments under and subject to the provisions of ORS 547.455 to 547.485. [Amended by 1993 c.97 §18]

 

      547.570 Bond proceeds; depository. (1) The treasurer shall account for and pay over as required by law and as ordered by the board, any money received by the treasurer on the sale of the bonds.

      (2) If the board deems it more expedient, the board may, by resolution, select some suitable bank or other depository as temporary treasurer to receive the money derived from the sale of bonds, and to hold and disburse the moneys on the orders of the board as the work progresses, until the fund is exhausted or transferred to the treasurer by order of the board of supervisors. [Amended by 1969 c.345 §15]

 

      547.575 Bond fund account; general fund. The treasurer shall keep a bond fund account into which shall be covered all moneys arising from the sale of refunding bonds and sufficient money arising from assessment and levy to meet the next installment of principal and interest upon the bonds of the district. From the fund the treasurer shall pay the principal and interest on bonds as they mature and the bonds and interest coupons are presented. Moneys received from the sale of bonds other than refunding bonds, and otherwise for the construction and acquisition of works and all other moneys whatsoever shall be covered into a general fund from which shall be defrayed all obligations of the district other than those in this section above described.

 

      547.580 Retirement of bonds before maturity; call provisions. (1) After five years from the issuance of bonds, the board may direct the district treasurer to redeem so much of the bonds not yet due as surplus funds permit at the lowest value at which they may be offered for liquidation, or call bonds at a premium of three percent. Notwithstanding anything contained in ORS 547.555 to 547.580, the board may call for payment and retire before maturity any bonds issued in accordance with ORS 547.555 to 547.580.

      (2) Notice of intention to call bonds for payment before maturity shall be given by the district board by publication in a newspaper published and regularly circulated in the counties in which the district lands lie, at least once a week for four successive weeks, beginning not less than 90 days prior to an interest-paying period. The notice shall state the number and amount of the bonds to be retired, the price to be paid, and the date and place where the same are to be paid.

      (3) Bonds shall be retired in numerical order, and not otherwise. No bonds shall be retired under this section except on a day when interest is payable by the terms of the bonds and on and after the date named in the published notice. Interest on bonds described therein shall cease after the date named in the published notice. [Amended by 1969 c.694 §39; 2001 c.215 §21]

 

FUNDING AND REFUNDING OF DEBT UNDER 1909 ACT

 

      547.605 Funding and refunding of debt; bonds; place of payment. The board of trustees of any drainage or levee district having an outstanding indebtedness of not less than $3 per acre for each acre of land included in the district, evidenced by bonds or warrants of the district, may, if the board considers it for the best interests of the district, fund or refund the same or any part thereof and issue bonds of the district therefor in sums of not less than $100 nor more than $1,000, each having not more than 20 years to run, and bearing a rate of interest determined by the board of trustees, payable semiannually. Both principal and interest may be made payable at a place named by the board. The bonds shall be negotiable in a form to be selected by the board of trustees, numbered consecutively, signed by the president of the board and countersigned by the clerk of the county in which payable, who shall thereto affix the official seal. Interest coupons shall be attached to each bond. The bonds shall then be delivered to the treasurer of the district, who shall stand charged upon the official bond for all bonds delivered to the treasurer and the proceeds thereof. [Amended by 1969 c.694 §40; 1977 c.188 §9; 1981 c.94 §46; 2001 c.215 §22]

 

      547.610 Sale or exchange of bonds; application of proceeds; cancellation of retired obligations; record of transactions. (1) The board of trustees shall sell or exchange the bonds so issued, on the best available terms, for any legal indebtedness of the district. If the sale is made for money, the proceeds shall be applied to the payment of liabilities existing against the district at that time. When the bonds are exchanged for bonds or warrants or other legal evidence of district indebtedness, the district treasurer shall at once cancel the evidence of indebtedness by indorsing thereon the amount for which they were received, the word “canceled” and the date of cancellation.

      (2) The district treasurer shall keep a record of all bonds issued, sold or exchanged under subsection (1) of this section by number, date of issuance, date of sale, amount, date of maturity, rate of interest, the name and post-office address of the purchaser, and if exchanged, what evidence of indebtedness was received therefor. This record shall be open at all times for public inspection. [Amended by 1969 c.694 §41; 2001 c.215 §23]

 

      547.615 Tax for payment of interest and principal; sinking fund. The board of trustees shall cause to be assessed and levied each year upon the assessable property of the district, in addition to the levy authorized for other purposes, a sufficient sum to pay the interest on outstanding bonds issued in conformity with the provisions of ORS 547.605 to 547.620, accruing before the next annual levy, and such proportion of the principal as in their judgment will be for the best interests of the district, to create and raise a sinking fund to retire the bonds and to be used for no other purpose whatever. [Amended by 1969 c.694 §42; 2001 c.215 §24]

 

      547.620 Retirement of outstanding bonds; notice to bondholders to submit propositions; premium; calling of bonds. (1) Whenever there is in the sinking fund a surplus of $500 or more, over and above the interest maturing before the next levy, the district treasurer shall give notice for two weeks in one or more newspapers of general circulation printed and published in the county in which the district was first organized. The notice shall state the amount of such surplus and that on the day and hour named in the notice, sealed propositions will be received at the office of the district treasurer for surrender of bonds of the district.

      (2) The district treasurer shall, at the time and place named, open the propositions and accept the lowest bid. However, no bid shall be accepted for an amount exceeding the par value of the bonds with accrued interest thereon and seven percent premium. If bids are not offered at that figure, or less, sufficient to exhaust the amount of surplus on hand, the board of trustees may then call in any bonds of the district, giving the numbers thereof in the exact order of their issuance beginning with the lowest or first number, and redeem the same at par value and five percent premium with accrued interest to date of such recall. Thereafter interest thereon ceases and the amount due shall be set aside for payment of the bonds whenever presented. [Amended by 1969 c.694 §43; 2001 c.215 §25]

 

ALTERNATIVE METHOD OF REFUNDING INDEBTEDNESS OR ISSUING BONDS

 

      547.655 Authority to adopt alternative procedure. Any drainage district desiring to refund its outstanding indebtedness or issue bonds for any purposes may, in lieu of the procedure otherwise provided by law, elect to adopt the procedure provided by ORS 547.660 to 547.695.

 

      547.660 Exchange of refunding bonds for outstanding indebtedness. The board of supervisors of any drainage district desiring to issue refunding bonds to replace or in satisfaction or discharge of any outstanding indebtedness may exchange such refunding bonds for the outstanding indebtedness in full compromise, satisfaction and discharge thereof, and shall issue the bonds in such denominations and in such amounts to the several holders of the indebtedness as may be found expedient and necessary in funding or refunding the indebtedness. The bonds may be serial, on the level payment plan or each of the bonds may be amortized, as the board of supervisors may by resolution determine. When the bonds so issued do not exceed in principal and rate of interest the indebtedness to be satisfied and for which the bonds are to be exchanged, it shall not be necessary for the board of supervisors to advertise their sale or to offer them at public sale.

 

      547.665 Numbering; maturities; negotiability; interest; place of payment; denominations; execution; registration; authority to retire bonds. (1) The bonds shall be numbered consecutively, beginning with number 1 and following in numerical order. They shall mature in the manner provided by ORS 547.660, in annual amounts of principal and interest approximately equal, in not less than five nor more than 40 years from the date of issue, as the board of supervisors may determine. They shall be negotiable in form. The bonds shall bear interest at a rate determined by the board, payable annually or semiannually on dates determined by the board. Payment of principal and interest shall be at the place designated in the bonds and coupons. The bonds, except as otherwise provided in ORS 547.655 to 547.695, shall be each of the denomination of not less than $100 nor more than $1,000, shall be signed by the president and secretary, and the seal of the board of supervisors shall be affixed thereto.

      (2) Each bond shall bear on its back the registration certificate of the treasurer of the district. Coupons for interest or for interest and principal, as the case may be, shall be attached to each bond and shall bear the facsimile signature of the secretary of the district. The district treasurer shall register the bonds in a book kept in the office of the treasurer for that purpose, in which shall be stated the number, date of issue and of sale, amount of the bond, time and place of payment, rate of interest, number of coupons attached, and any other description proper for future identification of each bond. However, the board of supervisors may call for payment and retire before maturity any bonds issued in accordance with ORS 547.655 to 547.695, on payment of the principal remaining unpaid at the date of call, together with earned interest to and including the date of the call for payment.

      (3) The board of supervisors may stipulate that during the first period of the bond term, not exceeding five years, there shall be no payment of principal or interest. [Amended by 1969 c.694 §44; 1981 c.94 §47; 2001 c.215 §26]

 

      547.670 Offer by holders of indebtedness to surrender evidences thereof or accept proportional payment; sale of bonds; notice; publication. (1) Before authorizing the issuance of such bonds, the board of supervisors shall require that the known holders, or their representatives, of all evidences of indebtedness to be refunded, shall submit to the board for its acceptance an offer to deliver and surrender all such evidences of indebtedness in exchange for bonds not exceeding the amount of the claim or debt owned by such creditor, or in lieu thereof, to accept in full payment of all such outstanding indebtedness so held by any such creditor a sum of money representing the proportion which the proposed refunding bond issue shall bear to the total outstanding indebtedness proposed to be refunded, compromised, satisfied and discharged, based on the par value of such proposed refunding bonds; the creditors and owners of the indebtedness to agree to absorb the loss between the amount of the outstanding indebtedness to be refunded and the amount of the refunding bonds at par and to receive such refunding bonds in full payment, satisfaction and discharge of the outstanding indebtedness.

      (2) The offer shall be in writing and shall, upon being submitted to the board, be irrevocable until such time as the board, under ORS 547.655 to 547.695, has a reasonable opportunity to issue, sell and deliver such refunding bonds to replace and discharge the outstanding indebtedness on acceptance of the offer; provided, that the offer shall not be revoked while any suit, action or proceeding involving the issuance, sale or delivery of such refunding bonds is in process of determination nor until a reasonable time after the final determination of such suit, action or proceeding.

      (3) When authorized by a majority vote of the electors of the district, the exchange may be made on a basis of less than par for the refunding bonds, in which event the board of supervisors shall, in its resolution declaring its intention to sell the refunding bonds, also require the secretary of the board to give notice of the proposed sale by publication thereof for four consecutive weeks in three newspapers within the state, one of which shall be in the county in which the district is situated.

 

      547.675 Lien on land assessed for bond payment. (1) Upon delivery of the bonds, the secretary of the district shall furnish to the county clerk of each county in which lands of the district are situated:

      (a) A certified copy of the resolution of the board authorizing the bonds, of the resolution of the board fixing the annual per acre payments to be made in payment of the principal and interest of the bonds, and of the district treasurer’s registration record;

      (b) A certified statement of the lands within the district liable under the bonds, described in subdivisions of 40 acres except where the individual ownership thereof requires a description in lesser subdivisions or by metes and bounds or by calls; and

      (c) A certified statement of the total amount of refunding bonds charged against each parcel of land, the amount of the annual payment thereof, the date of payment and the rate of interest.

      (2) The county clerk shall record such information in a book to be provided by the county clerk for that purpose, which shall then be a bond lien docket of the drainage district for the lands of the district within the county and shall constitute the total of such charges or assessments and the maximum of the lien against the lands by reason of the bonds. This sum shall not be increased or enlarged by any subsequent assessment because of any delinquencies in payment of the bond lien and interest charge against any other tract or parcel of land in the district. Unpaid annual assessments or charges docketed therein shall bear interest at the rate of six percent per annum. All unpaid annual payments, principal and interest, shall remain a lien on the tract or parcel of land in favor of the district and shall have priority over all other liens and encumbrances except the lien of state, county and municipal taxes.

      (3) Any time after issuance of the bonds, the owner of any tract or parcel of land may relieve the tract or parcel of the lien by paying to the county clerk, for the benefit of the district, the amount of the principal and interest remaining unpaid thereon. The clerk shall thereupon pay the money over to the district treasurer to be credited to the district’s bond fund. The clerk shall note on the bond lien record the fact of such payment and of the satisfaction and discharge of the lien. Upon such payment of the lien on any tract or parcel of land, the tract or parcel shall forever thereafter be relieved from taxation or assessment for the payment of the bonds or of any bonds issued to refund the bonds, except for such assessment or charge as may be levied by the board of supervisors to create an emergency fund, as provided in ORS 547.680.

      (4) The collector of the district’s assessment and taxes shall receive any past due bond of the district or any past due coupon on any bond of the district in payment of any of the charges and payments referred to in this section.

      (5) The lien of the annual payments or charges shall be foreclosed as other drainage district liens are foreclosed. [Amended by 1969 c.694 §45; 2001 c.215 §27]

 

      547.680 Emergency fund; assessments for; use of. (1) In addition to the annual payments for retirement of the bonds, the board of supervisors shall, during the first five years after the issuance of the refunding bonds, levy an annual assessment of 20 cents per acre upon each acre within the district. Thereafter, whenever there is any default in payment of any assessment levied by the district or in any of the annual payments referred to in ORS 547.675, the board shall levy an assessment of not to exceed 20 cents per acre, which shall be the same upon each acre within the district and shall be levied and collected at the time and in the manner provided by ORS 547.455 to 547.485.

      (2) All moneys received from such assessments shall be placed by the treasurer of the district in a special fund designated “Emergency Fund.” The emergency fund shall be used only to the extent of not to exceed 10 cents per acre per annum, for supplementing the bond fund in case of deficiency due to accident, delinquency or other contingencies. The emergency fund shall be disbursed by the treasurer upon order of the board of supervisors. [Amended by 1997 c.170 §53]

 

      547.685 Retirement of bonds before maturity; notice of call; date of payment; cessation of interest. Notice of the call of bonds before maturity shall be given in the manner provided for retirement of irrigation district bonds before maturity. No bond issued under ORS 547.655 to 547.695 shall be called for payment before maturity except upon the day for payment of interest, or interest and principal, on the bond and on or after the day specified in the notice of call. All interest on bonds described in the notice shall cease after the day of the call, provided that on that date there are sufficient funds in the bond fund of the district to pay the call bonds.

 

      547.690 Judicial confirmation. Bonds authorized and issued under ORS 547.655 to 547.685 may be confirmed by a court of competent jurisdiction in the manner provided by ORS 548.105 to 548.115.

 

      547.695 Sale of lands for delinquent charges; district as purchaser; resale; payment of proceeds into emergency fund; district to bid at tax sale. The district shall appear as a bidder at the sale of any lands for delinquent annual charges or assessments made under ORS 547.655 to 547.690 or any other statute, and may purchase and take title to the lands and thereafter dispose of the same. On any sale by the district of lands so purchased, the proceeds, after payment of the expenses thereof, shall be paid into the emergency fund. At any tax sale where there is no other bidder, the district shall bid the full acreage of the tract or parcel of land for the amount of the delinquency, penalty and interest; provided, the district shall never bid less than the full acreage of the tract or parcel of land against the amount of the delinquency penalty.

 

      547.697 Bond fund separate from district general fund; deposits to bond fund and district general fund; expenditures from bond fund and district general fund. (1) The district treasurer shall deposit all money arising from the sale of refunding bonds, and sufficient money arising from assessment and levy to meet the next installment of principal and interest on the bonds of the district, in a bond fund separate from its general fund. From the bond fund the treasurer shall pay the principal on bonds as they mature and the interest when the coupons are presented.

      (2) Except as otherwise provided by subsection (1) of this section, all money received by the district, including money from the sale of bonds other than refunding bonds and for the construction and acquisition of works, shall be credited to a general fund. The district treasurer shall use the general fund to pay all obligations of the district other than those described by subsection (1) of this section. [1969 c.694 §38; 2001 c.215 §28]

 

WITHDRAWAL

 

      547.755 Part of district annexed to city to be withdrawn from district only by consent of voters. No part of a drainage district annexed to a city shall be withdrawn from the district, except upon the consent of the voters of that part of the district. The votes shall be counted in the same manner as in elections for officers of the district. If three-fourths of those voting in that part of the district favor withdrawal from the district the withdrawal is effective, subject to ORS 222.520 (2), ORS 222.528 and 222.560 relating to division of assets and liabilities upon withdrawal from sanitary districts. [Amended by 1963 c.419 §1]

 

      547.760 [Amended by 1955 c.359 §1; repealed by 1973 c.415 §14]

 

PENALTIES

 

      547.990 Penalties. Violation of ORS 547.425 is a Class C misdemeanor. [Amended by 2011 c.597 §229]

 

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