Chapter 261 — Chapter 261

ORS 261.005 Short title. This chapter shall be known as the People’s Utility District Law

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ORS 261.007 Policy. The purpose of this chapter is to implement the intent and purpose of section 12, Article XI, of the Oregon Constitution including authorization for the establishment of people’s utility districts to develop the water and energy resources of this state for the benefit of the people of this state and to supply public utility service, including water, water power and electric energy for all uses and users. [1979 c.588 §2]

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ORS 261.010 Definitions. As used in this chapter, unless otherwise required by the context

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ORS 261.015 [Renumbered 261.121]

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ORS 261.020 [Repealed by 1973 c.796 §79]

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ORS 261.025 Statutory provisions cumulative. The provisions of this chapter are additional and cumulative to the provisions of any other law now or hereafter existing for the holding of elections in districts

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ORS 261.030 Limit of authority to control existing utilities of electric cooperatives or cities. Nothing contained in this chapter authorizes or empowers the board of directors of any people’s utility district to interfere with or exercise any control over any existing utility owned and operated by any electric cooperative or city in the district unless by consent of the governing body of the electric cooperative or of the city council or the governing body of the plant owned by a city, when the control of the plant is vested in a governing body other than the city council or governing body of the city. However a district may participate fully, on a mutually agreed basis, with electric cooperatives and utilities owned by cities in common facilities under ORS 261.235 to 261.255 and in the formation and operation of joint operating agencies under ORS chapter 262. [Amended by 1979 c.558 §5; 2003 c.802 §66; 2007 c.301 §31; 2007 c.895 §2]

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ORS 261.035 Effect of chapter on charter provisions of cities and acquisition of plants. Nothing in this chapter modifies in any manner any charter provisions of any city, or prohibits any city from acquiring and operating its own plant. [Amended by 2003 c.802 §67]

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ORS 261.040 [Amended by 1979 c.558 §6; renumbered 261.118]

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ORS 261.045 Procedure in absence of specific provision. Where the procedure for formation of a district, annexation of territory to a district, consolidation of two or more districts, issuance of bonds and levying and collection of taxes, holding of elections or any other matter in connection with organization or operation of utility districts is not specifically provided for, any suitable method and proceeding, or either, may be adopted which may appear most conformable to the spirit of this chapter and the provisions of section 12, Article XI, Oregon Constitution

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ORS 261.050 Taxation of district property. (1) All property, real and personal, owned, used, operated or controlled by any people’s utility district, in or for the production, transmission, distribution or furnishing of electricity or electric service for or to the public, shall be assessed and taxed in the same manner and for the same purposes, and the district and the directors and officers thereof shall be subject to the same requirements, as are provided by law in respect to assessment and taxation of similar property owned, used, operated or controlled by private corporations or individuals for the purpose of furnishing electricity or electric service to the public

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ORS 261.055 Special elections called by board. When any people’s utility district desires to hold an election for the purpose of submitting to the electors of the district any question that may lawfully be submitted to them, the board may, at any regular or special meeting called in accordance with its rules or the statutes governing the same, adopt a resolution calling a special election to be held on a date specified in ORS 255.345, and may in the same resolution designate and describe in general terms the question which is to be submitted at the special election. [Formerly 261.505]

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ORS 261.060 Election procedure. Except as otherwise specifically provided in this chapter, every district election shall be conducted in accordance with ORS 255.005 to 255.035, 255.055, 255.075, 255.085, 255.215 to 255.288 and 255.295 to 255.345. [1975 c.598 §3 and 1975 c.647 §16; 1989 c.503 §29; 1995 c.607 §70; 2007 c.154 §61]

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ORS 261.065 Application of initiative, referendum and recall laws. The laws of this state regarding initiative, referendum and recall shall apply to people’s utility districts. [1979 c.558 §3]

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ORS 261.105 Powers of district; formation; annexation; consolidation. (1) People’s utility districts may be created as provided in this chapter. A people’s utility district may exercise all powers conferred by this chapter

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ORS 261.110 Areas includable in district; description of district in petition for election. (1) People’s utility districts may consist of territory, contiguous or otherwise, within one or more counties, and may consist of one or more cities, or a portion of a city, with or without unincorporated territory

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ORS 261.113 Petition or resolution for formation to propose special levy for certain purposes. Electors’ petitions and resolutions for formation of a district shall include a proposal for the authorization of the district to impose a special levy of a certain amount to finance an engineer’s report on revenue bonds for the acquisition or construction of the initial utility system, including the replacement value of the unreimbursed investment of an investor owned utility in energy efficiency measures and installations within the proposed district, the election under ORS 261.355 (10) and costs associated with them. [1979 c.558 §12; 1991 c.358 §2; 1991 c.572 §4]

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ORS 261.115 Contents of electors’ petition; certification. (1) All electors’ petitions shall contain a statement as to whether or not the petitioners are desirous of forming a utility district, or to annex territory to an existing utility district, or to consolidate two or more existing utility districts, the description of the territory sought to be included therein and the name by which the utility district is to be known. The statement shall be printed on a separate page or pages

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ORS 261.118 Withdrawal from petition. After a petition has been filed with the county clerk, no person may withdraw that person’s name from it. [Formerly 261.040]

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ORS 261.120 [Amended by 1975 c.647 §17; repealed by 1979 c.558 §30]

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ORS 261.121 Basis of computing percentage of petition signatures. When the boundaries described in any petition include a part of a precinct, the vote of the entire precinct shall be used as a basis in computing the percentage of signatures required on electors’ petitions. [Formerly 261.015]

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ORS 261.125 [Repealed by 1979 c.558 §30]

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ORS 261.130 [Repealed by 1979 c.558 §30]

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ORS 261.131 Period for county clerk to certify petition. Within 10 days after receipt of an electors’ petition the county clerk shall certify the sufficiency of signatures to the county governing body. [1979 c.558 §10]

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ORS 261.135 [Repealed by 1979 c.558 §30]

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ORS 261.140 [Repealed by 1979 c.558 §30]

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ORS 261.141 Formation, annexation or consolidation by resolution; contents of resolution. (1) In addition to the initiation of a people’s utility district formation, annexation or consolidation by electors’ petition

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ORS 261.145 [Repealed by 1979 c.558 §30]

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ORS 261.147 Resolution to remove territory not served by district; hearing; notice; election on question of removal; effect of removal. (1) When any parcels of territory within an existing district are not being served by the district, the board of directors of the district may fix a place and time for a public hearing to consider the removal of such parcels from the district

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ORS 261.150 [Repealed by 1979 c.558 §30]

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ORS 261.151 Hearing by Director of State Department of Energy on district formation; notice; report by director. Upon certification of a petition for formation or adoption of a resolution by the county governing body for district formation, the county clerk shall submit a copy of the resolution or petition, without signatures attached, to the Director of the State Department of Energy. Not less than 30 days after receipt of the petition or resolution copy, the director shall hold a hearing within the proposed district for the purpose of receiving public testimony on the proposed district formation. Notice of the hearing, stating the time and place of the hearing, together with the electors’ petition, when applicable, without the signatures attached, shall be published at least two times prior to the date of the meeting. The first publication shall not be more than 25 days nor less than 15 days preceding the hearing and the last publication shall not be more than 14 days nor less than eight days preceding the hearing. Within 60 days after receipt of the petition or resolution copy, the director, with the advice and assistance of the Public Utility Commission of Oregon, shall prepare and publish a concise report showing the availability and cost of power resources, potential tax consequences and any other information considered by the director to be relevant to the proposed formation of the district. A copy of the report shall be mailed, upon publication, by the director to the county governing body. [1979 c.558 §12a; 2003 c.186 §10]

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ORS 261.155 [Repealed by 1979 c.558 §30]

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ORS 261.160 [Repealed by 1979 c.558 §30]

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ORS 261.161 Hearing by county governing body; notice; determination of boundaries. (1) After certification of a petition, or passage of the resolution when the formation, annexation or consolidation proposal is by resolution of the county governing body, the county governing body shall, within 10 days, fix a date for a hearing on the boundaries described in the electors’ petition or resolution of the county governing body for inclusion in the proposed or established district. The hearing shall be held by the county governing body not less than 60 days nor more than 90 days after certification of the petition or passage of the resolution. Notice of the hearing, stating the time and place of the meeting, together with the electors’ petition, when applicable, without the signatures attached, shall be published at least two times prior to the date of the meeting. The first publication shall not be more than 25 days nor less than 15 days preceding the hearing and the last publication shall not be more than 14 days nor less than eight days preceding the hearing. Notice of the hearing, and all other publications required by this chapter, shall be published in at least one newspaper of general circulation in the proposed or established district. The hearing may be adjourned from time to time, but shall not exceed four weeks in total length. Public testimony shall be taken at the hearing

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ORS 261.165 [Repealed by 1979 c.558 §30]

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ORS 261.170 [Repealed by 1979 c.558 §30]

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ORS 261.171 County governing body to call election; notice; dates. (1) Upon its own resolution, the county governing body may, and upon receipt of an electors’ petition or resolution of the governing body of a people’s utility district or city that the county governing body finds to be in compliance with this chapter shall, at the earliest practical date submit the question of district formation, annexation or consolidation and, if for formation, the question of a special levy, to the electors within the affected territory at a special election. The special election may be held on the same date as a primary election or general election

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ORS 261.175 [Repealed by 1979 c.558 §30]

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ORS 261.180 Effect of annexation or consolidation on title to property and indebtedness. (1) If a parcel of territory or a city is annexed to an existing people’s utility district, or two or more districts are consolidated, such annexation or consolidation shall not affect or impair the title to any property owned or held by the district or districts, or any property owned or held by the annexed city, or in trust therefor, or any debts, demands, liabilities or obligations existing in favor of or against either the district or city so annexed

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ORS 261.185 [Amended by 1973 c.796 §10; repealed by 1975 c.647 §53]

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ORS 261.190 Election of first board of directors; qualifications; tenure. (1) At all elections where the creation of a district is authorized, five directors shall be elected to manage and transact the business of the district

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ORS 261.195 [Amended by 1973 c.796 §12; repealed by 1975 c.647 §53]

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ORS 261.200 Proclamation of district formation or boundary change; special levy; property owner petition. (1) If a majority of votes cast at the election favors formation of the people’s utility district and authorization of the district to impose a special levy for the purposes stated in the petition for formation, or annexation of a parcel of territory or a city to an existing district, or consolidation of two or more districts, as the case may be, and in conformity with provisions of ORS 261.105 and 261.110, the county governing body shall issue a proclamation accordingly and file a certified copy with the county clerk of each county where the district or any portion thereof is located. The proclamation for formation of a district shall be in substantially the following form

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ORS 261.205 [Repealed by 1975 c.647 §53]

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ORS 261.210 Payment of election expenses; security deposit. (1) Except as provided in subsection (2) of this section, all expenses in any county of any election held under this chapter for formation of a district and election of a board of directors shall be paid from the general fund of the county in the same manner that other claims against the county are paid

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ORS 261.215 When district formed; designation; district as corporation. From the date of the proclamation relative to formation of a people’s utility district the territory shall be a separate district to be known as the district named and specified in the proclamation. The inhabitants thereof shall be a corporation by the name and style of the utility district specified in the proclamation, and as such shall have perpetual succession, and by such name shall exercise and carry out the corporate powers and objects conferred and declared by this chapter. [Amended by 2003 c.802 §74]

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ORS 261.220 Mandamus to compel performance of its duties by county governing body. If the county governing body refuses to call an election, or hold a hearing, as provided in this chapter, or refuses to declare the results of any election or issue the required proclamation, any elector may apply within 10 days after the refusal to the circuit court for the county in which the proposed district, or its greater portion, is located for a writ of mandamus to compel the county governing body to perform its duty. [Amended by 1975 c.647 §19; 1979 c.558 §18]

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ORS 261.225 State agencies and private utilities to provide new district certain information. (1) The State Department of Energy, the Public Utility Commission of Oregon and any privately owned utility serving the affected territory shall cooperate in providing information and data as requested by a people’s utility district for construction or acquisition of the initial utility system

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ORS 261.235 Definitions for ORS 261.235 to 261.255. As used in ORS 261.235 to 261.255, unless the context requires otherwise

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ORS 261.240 Policy; construction. (1) The Legislative Assembly finds and declares it to be in the public interest and for a public purpose that districts, cities, electric cooperatives, and electric utility companies participate as authorized in ORS 261.235 to 261.255 jointly and with other persons to

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