\G>85 HD1683.U507'l97r*''-"'"^ ■^[■aiJiage district laws of Oregon, 1919. 3 1924 013 740 406 DRAINAGE DISTRICT LAWS OF OREGON 1919 Published by State Water Board Percy A. :^p^^ state Engineer , Geoise T. Cochran, ^tate Water Sul^erni^ndctllit The original of tiiis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924013740406 DRAINAGE DISTRICT LAWS OF OREGON 1919 Published by State Water Board Percy A. Cupper, State Engineer George T. Cochran, State Water Superintendent Salem, Oeegon : State Printing Depaktmbnt 1919 DRAINAGE DISTRICT LAWS Formation of Drainage Districts. Section 1. Tlie persons shown by the records of the county to be the owners of fifty per cent 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 said lands or any other lands, situate 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 agricul- tural purposes, or when the same may be conducive to the public health, convenience and welfare or of public utility or benefit. For such purpose such owners may prepare and sign a petition in which shall be stated : 1. The name proposed for such 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 said lands or any other lands. 3. The total acreage included in the district, and if land in more than one county be included then the acreage in each county shall be stated. 4. The names of the owners of land in said district as shown by the records of the county or counties and the acreage owned by each of such owners. 5. An allegation that the proposed reclamation or protection is for sanitary or agricultural purposes, or both, and that such proposed recla- mation or protection will be conducive to the public health or welfare or of public utility or benefit. 0. All allegation that all of the lands included in said proposed district are properly included therein, and will be beneficially affected by the operations of the proposed district. 7. An allegation that the benefits of such proposed reclamation or pro- tection will exceed the damage to be done and that the best interest(s) of the land included and of the owners of such land as a whole, and of the liublic at large, will be promoted by the formation and proposed operations of such district. 8. An allegation that the formation of a drainage district under the provisions of this act is a proper and advantageous method of accomplish- ing the reclamaton and protection of the lands included therein. 9. A brief, general, informal statement of a proposed plan of reclama- tion or protection and such general facts as will enable the court to deter- mine that there is a reasonable probability that the objects sought liy the formation of the district may be accomplished. 10. An agreement that the signers will pay any and all expenses incurred and any tax or taxes that may- be levied against their lands, 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. DRAINAGE DISTRICT LAWS Such petition shall be verified by one or more of the petitioners to the effect that they have read the petition and believe the allegations thereof to be true. Such petition shall be filed in the office of the county clerk of the county in which the lands described are situated (or if the lands are situated in more than one county) then the petition 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, and the county court shall fix the time and place for the hearing of said petition. (Laws 1915, chapter 340, page 540, section 1 ; laws 1917, chapter 414, pages 864, 865, section 1. ) A contention that an appropriation of land for a drainage district was for a private purpose and a further contention that the guaranty to each state of a republican form of government, and a contention that the power of eminent . domain was exercised for private purposes contrary to the Unitei States Consti- lutlon by condemnation proceedings instituted by a drainage district organized conformably to the Nebraska drainage statute under procedure almost identical with the Oregon drainage statute, were each held untenable by the United States supreme court in O'Neill v. Learner, 239 U. S. 244, 36 Sup. Ct. Rep. 54, 60 L. Bd. 249, affirming 93 Nebr. 786, 142 N. W. 112. See as to law affecting drainage districts generally, notes in Ann. Cas. 1915, A. 9 ; 60 L. R. A. 161. Notice of Hearing. Section 2. Upon the presentation of ^such petition, the county court shall fix the time and place for the hearing of such petition, and thereupon the clerk in whose office said petition has been filed shall give notice thereof in the following manner ; He shall cause notice to be published once each week for four consecutive weeks in some newspaper published in each eounty in which are situate lands of the district, the last insertion to be made at least fifteen days prior to a meeting of the county court at which said petition is to be heard ; said notice shall be substantially in the following form and it shall be deemed sufficient for all purposes of this act : NOTICE OF HEARING OF PETITION TO FORM DRAINAGE DISTRICT In the county court of the state of Oregon, for the county of Notice is hereby given that hearing on the following petition will be held at the courthouse in the city , county of — ■ , state of O^gon, on the day of , 19 — , -for the purpose of determining whether the prayer of said petition shall be granted. All persons owning or claiming an interest in lands described in said petition are hereby notified to appear at said place on said date and show cause, if any there be, why the prayer in said petition should not be granted. ^^_ Clerk of the county court. Immediately, following said notice and as a part thereof, there shall be published the petition in full, including the signatures thereto. The county court of the county in which said petition has been filed shall thereafter maintain and have original and exclusive jurisdiction coextensive with the boundaries and limits of said district without regard to county lines, for all purposes of this act. (Laws 1915,-chapter 340, page 541, section 2.) The provisions of this section, relating only to the formation of a drainage district, do not involve the taking of private property, and hence the statute would be valid even though it made no provision at all for notice of the proposed DRAINAGE DISTRICT LAWS formation of a drainage district ; but though it be assumed that notice is neces- sary, the organization is valid where the notice is by publication. Drainage District No. 7 v. Bernards, 89 Or. 531, 545, 646 ; 174 Pac. 1167, and cases cited. Hearing and Decision of Court; Validity of Organization. Section 3. On or before the date set for the hearing, any person object- ing to the organization and incorporation of said district, may appear and file in writing his objection thereto, which objection shall set forth specifically and definitely his objections thereto. At the hearing, the court shall hear and consider any evidence that may be presented for or against the petition or any objection thereto. 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 such district, which finflings shall be entered on the journal of the court. If it should appear to the court that the prayers of the petition should be granted, the court shall, by its order duly entered of record, declare and decree said drainage district organized. If it should appear to the court that the prayers of the petition should not be granted, the proceedings shall be dismissed and the costs adjudged against the signers of said petition in proportion to the acreage repre- sented by each. In making such findings and decree, the court shall disregard any error, irregularity or omission which does not affect substantial rights, and no error, irrgularity or omission which does not affect substantial rights shall affect the validity of the organization or any proceedings taken thereon. Appeal may be taken from the decision of said court to the circuit court in the same manner as appeals are taken in equity cases as by law provided. In all cases wherein any land- owners in the state of Oregon have in good faith organized or attempted to organize a drainage district under the laws of the state of Oregon, and in the proceedings for such organiza- tion notice of such organization was published for the time required by statute, and at the time of filing of this act in the office of the secretary of state such drainage district is maintaining its organization and carry- ing on its business, then and in that case such drainage district is hereby declared to be legally created and the organization of such drainage dis- trict is hereby in all respects declared valid and made legal, and the territory • embraced within the boundaries of such drainage district as described in the petition for" such organization or, if such boundary has been modified by order of court, then as described after such modification, shall be and is hereby declared to compose a legally organized drainage district, notwithstanding any error, defect or omission in the petition for the organization of such district, the signatures thereto, or the signing thereof. (Laws 1915, chapter 340, page 542, section 3; laws 1917. chapter 414, page 865, section 2 ; laws 1919, chapter 184, page 266, section 1. ) The Oregon supreme court has held that where, after notice sufficient to call the attention of all property owners within the proposed port or district to the fact that it was proposed to organize such a corporation and to establish the boundaries of the same, is given, and where all persons having interests adverse to the organization were, by the publication of notice of election, as required by law, duly and legally apprised of the pendency of the proceedings, whereby they could have appeared before the court and pointed out the alleged defects in the petition, and in a simple and inexpensive proceeding have made themselves parties DRAINAGE DISTRICT LAWS to the proceeding there and settled by review or appeal to the circuit court questions, concerning the sufficiency of the petition, such property owners are estopped by the findings of the county court that the organization has been duly and legally made ; the entry of such findings in the journal being a final adjudi- cation of every fact necessary under the law to constitute a valid corporation, and was res adjudicata. State ex rel v. Port of Bay City, 64 Or. 139, 143 ; 129 Pac. 496 ; Southern Oregon Co. v. Pprt of Bandon, — Or. — , 178 Pac. 215, 217, 218; Rodgers v. Salem, 61 Or. 321, 338; 122 Pac. 308. Board of Supervisors; How Elected; Term of Office. Section 4. WitMn thirty days after any drainage district shall have been organized under the provisions of this act, the county clerli of the county in vyhich the petition has been filed shall call a meeting of the ovraei-s of land situate in said district for the purpose of electing a board of three supervisors. Notice of such meeting shall be given by publication in some newspaper published in each county in which lands of the district are situate, at least ten days before the date of such meeting. The super- visors shall be owners of land in said district. The land owners, assembled at the place and time required by the notice, shall organize by the election of a chairman and secretary of the meeting who shall conduct-the election ; each owner shall be entitled to one vote in person or by proxy for each acre of land owned by him in such district, and the three persons receiving the highest number of votes shall be declared elected as super- visors ; and said supervisors shall immediately by lot determine the terms of their office, which shall be, respectively, one, two and three years, and they shall serve until their successors shall have been elected and qualified. The majority of the acreage shall be necessary to constitute a quorum for the transaction of business at all landowners' meetings. (Laws 1915, chapter 340, page 54'2, section 4 ; laws 1917, chapter 414, page 866, section 3.) Annual Election — Who Entitled to Vote. Section 5. In the same month of each year after the election of the first board of supervisors, the board of supervisors shall call a meeting pf the owners of land in the district after giving notice in the same manner as is provided for in section 4, and such owners shall meet at the tiipe and place fixed by the board of supervisors and elect one supervisor in like manner as prescribed in the preceding section, who shall hold his office for three years or until his successor is elected and qualified; and in case of a vacancy in any office of supervisors the remaining supervisors may fill such vacancy until the next annual meeting, when a successor shall be elected for the unexpired term ; provided, that after the report of the commissioners has been confirmed by the court under the provisions of section 15, only the land having benefits assessed against it shall be entitled to vote at the annual meetings held under the provisions of this section (Laws 1915, chapter 340, page 543, section 5;) Supervisors to Take Oath. Section 6. Such supervisor before entering upon his official duties shall take and subscribe to an oath before some officer authorized by law to administer, oaths, that he will honestly, faithfully and Impartially perform the duties devolving upon him in office as supervisor of the drainage district in which he was elected, and that he will not neglect any of the duties imposed upon him by this act. (Laws 1915, chapter 340, page 543, section 6.) DRAINAGE DISTRICT LAWS Organization of Board — to Make Annual Report — Compensation. Section 7. The board of supervisors immediately after their election shalKchoose one of their number president of the board, and elect some suitable person secretary, who may or may not be a member of the board. Such board shall adopt a seal with a suitable design, and shall keep a record of all its proceedings, which shall be open to the inspection of all owners of real estate of the district, as well as to all other interested parties. The board shall report to the land owners at the annual meeting held under the provisions of section 5 of this act what work has been done, either by the engineers- or otherwise. The members of the board shall receive for attending to business for and in behalf of said district actual transportation expenses, which shall be audited by the board before pay- ment r said board shall receive no compensation for their services unless the land owners at the annual meeting shall determine to pay a compensa- tion which in no event shall exceed five dollars per day for time actually engaged in work for the district; provided, however, that if the secretary be a member of the board he shall be entitled to compensation as here- inafter provided for. (Laws 1915, chapter 340, page 543, section 7.) Board to Appoint Cliiet Engineer and Assistants — Tlieir Duties. Section 8. Within thirty days after organizing the board of supervisors shall appoint a competent civil engineer as chief engineer, who may be an individual, copartnership, or corporation, and who shall engage such assistants as the board of supervisors may approve. The chief engiheer shall have control of the engineering work m said district. The said engineer or engineers shall make all necessary surveys of the lands within the boundary lines of said 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, and said engineer or engineers shall make a report in writing to the board of supervisors with maps and profiles of said surveys, which report shall contain a plan for draining and reclaiming the lands described in the petition ot adjacent thereto from overflow of or damage by water ; said maps and profiles shall also 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. (Laws 1915, chapter 340, page 544, section 8.) Chief Engineer to Make Report; Board to Adopt Report. Section 9. The chief engineer shall make a report in writing to the board of supervisors whenever said board shall so require. Upon receipt of the final report of said engineer concerning surveys made of the lands contained in the district organized, and plans for reclaiming the same, the board of supervisors shall adopt such report or any modification thereof approved by the chief engineer and thereafter such adopted report shall be the plan for draining and reclaiming such lands from overflow or dam- age by water, and it shall after such adoption be known and designated as "the plan for reclamation" which plan shall be filed with the secretary of the board of supervisors and b;^ him copied into the records of the district. Any lands included in the district, which will not be reclaimed or benefited by the construction of the works as specified in the plan of DRAINAGE DISTRICT LAWS reclamation, may be excluded from the district by order of the county court, and any tax levied thereon shall be refunded to the person or persons paying the same ; provided, however, any irrigated lands contrib- uting to the wet, swamp, or overflowed condition of any lands of said district, the waste or seepage waters from which said lands will be carried by, and disposed of through the works specified in the plan of reclamation, shall be deemed benefited by the construction of the works as specified in the plan of reclamation. (Laws 1915, chapter 340, page 544, section 9; laws 1917, chapter 414, page 866, section 4.) Levy of Tax to Pay Cost of Organization, Etc. Section 10. The board of supervisors of any drainage district organized under the provisions of this act shall as soon as elected and qualified, levy a uniform tax of not more than one dollar per acre upon each acre of land within said district, to be used for the purpose of paying expenses incurred or to be incurred in organizing said district, making surveys of the same, and assessing benefits and damages and to pay other expenses necessary to be incurred before said board shall be empowered by subsequent pro- visions of this act to provide funds to pay the total cost of works and improvements of the district. In case the boundary lines of the district be extended under" the provisions of a subsequent section of this act, so as to include lands not described and contained in the petition, the same uniform tax shall be made on such lands as soon as same shall have been . annexed and included in the district. Such tax shall be due and payable as soon as assessed, and if not paid within sixty days thereafter the same shall become delinquent. It shall become a lien on the land against which it is assessed and shall be collected in the same manner as the annual Instalment of tax. In case the sum received from such assessment exceeds the total cost of items for which the same has been levied, the surplus shall be placed in the general fund of the district and used to pay the cost of construction ; provided, that if the district is dissolved, as provided for in a subsequent section of this act, the amount of surplus, if there be any, shall be pro rated and refunded to the land owners paying such uniform tax. ( Laws 1915, chapter 340, page 545, sectiori 10 ; laws 1917, chapter 414, page 867, section 5.) The levy of a maximum tax of 25c per acre to defray preliminary expenses under Missouri drainage statute upon all the lands within a drainage district duly organized by a court order under legislative authority, does not ta.ke without due process of law, contrary to the United States Constitution, the property of the owners of land within the district which may not be benefitted by the com- pleted drainage plans ; nor would the statute be unconstitutional because such a provision had been enacted after the district was organized, where the statute in force at the time of .the formation of the district contemplated liability to taxes to defray the preliminary expenses, as well as the ultimate cost of the improvement, if made ; nor does the charter of a drainage district as a public corporation constitute a contract with its members that the laws it was created to administer will not be changed. Houck v. Little River Drainage Dist., 239 U. S. 254, 36 Supi Ct. Rep. 58, 60 L. Ed. 266, affirming 248 Mo. 373, 154 S. W. 739. Secretary of Board to File Copy of Plan With County Clerli; Duty of Board; Appointment of Commissioners. Section 11. Thereupon the county judge shall, by an order, appoint three commissioners (who shall not he land owners in said district nor of kin within the fourth degree of consanguinity to any person owning land in said district), one of whom shall be a civil engineer; two of whom DRAINAGE DISTRICT LAWS shall be freeholders residing within the state of Oregon. -A majority of said commissioners shall constitute a quorum and shall control the action of the board on all questions. (Laws 1915, chapter 340, page 545, sec- tion 11.) Commissioners to Be Notified By County Clerk; Organiza.tion of Board of Commissioners. Section 12. Said county clerk upon the filing of said order of appoint- ment shall notify each of said commissioners of his appointment by written or printed notice, and in the same he shall state the time and place for the first meeting of said commissioners. The secretary of the board of supervisors shall attend such meeting, and shall furnish the said commissioners a complete list of all lands in the district, and the names of the owners of such property, as were contained in the petition, at the date of the decree of the court incorporating the district. Said secretary shall also furnish said commissioners a copy of "the plan for reclamation," with maps and profiles in his office. ■ The commissioners at said meeting, or within ten days thereafter, shall each take and subscribe to an oath that they will faithfully and impartially discharge their duties as such com- missioners and make a true report of the work done by them. The said commissioners shall also at said meeting elect one of their own number chairman, and the secretary of the board of supervisors shall be exofficio secretary of said board of commissioners during their continuance in office. (Laws 1915, chapter 340, page 545, section 12.) Commissioners to Inspect District and Assess Benefits and Damages; to File, Report. Section 13. Within thirty days after qualifying, as provided for in the previous section, the commissioners shall begin their duties ; and the chief engineer shall accompany said commissioners at all times, and render his opinion in writing when called for. Said 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 shall contribute to the swamp, wet or overflowed condition of said lands, or any lands, public highways, railroads and other rights of way, railroad roadways and other property, which will be affected by the proposed reclamation work. For the purpose of determining bene- fits, under the provisions of this section, all irrigated land or 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 said district, shall be deemed contributing to the wet, swamp or overflow condition of the lands of the said district, and said lands shall be deemed benefited by the con- struction of the works as specified in the plans of reclamation. The commissioners shall give due consideration and credit to any other drains, ditch or ditches, levee or levees, or other systems of reclamation which may already have been constructed and which afford partial or complete protection to any tract or parcel of land in the new district. The public high^vays, railroad and other rights of way, roadways, railroad and other 10 DRAINAGE DISTRICT LAWS property shall be assessed according to the increased physical efficiency and decreased maiiltenance cost of roadways by reason of the protection to be derived from the proposed works and Improvements. The commis- sioners shall have no power to change the "plan for reclamation" heretofore provided for. The board of 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 said district is organized. The secretary of the board of supervisors shall accompany said commissioners while engaged in their duties, and shall perform all clerical work of said board. Said board of commissioners shall report to the board of supervisors the number of days each has been employed and the actual expenses incurred. Each commissioner shall be paid five dollars per day for his services, and necessary expenses in addition thereto. (Laws 1915, chapter 340,' page 546, section 13; laws 1917, chapter 414, page 868, section 60 Property Owners to Be Notified of Commissioners' Report by Publication. Section^ 14. Upon the filing of the report of the commissioners, the county clerk shall give notice thereof by causing publication to be made once a week for three consecutive weeks in some newspaper published in each county in the district. It shall not be necessary for said clerk to name the parties interested, but it shall be sufficient to say : NO'riCE OF FILING OF COMMISSIONERS' REPORT FOR ■ DRAINAGE DISTRICT Notice is hereby 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 said 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 said district within or without the limits of said district, filed their report in this office on the day of , 19 — , and you and each of you are hereby notified that you may examine said report and file exceptions to all or^any part thereof, on ~or before the ■ day of , 19 — . County Clerk of County, Oregon. Provided, that where lands in different counties are contained in said report, the said notice shall be publislied in some newspapers in each county in which such lands so affected are situate. (Laws 1915, chapter 340, page 547, section 14.) Exceptions Heard and Determined by County Court; Other Procedure. Section 15. The drainage district or any owner of land in said district may file exceptions to said report or to any assessment for either benefits or damages, within ten days after the last day of publication of the notice provided for In the preceding section. All exceptions shall be heard by the court and such amendments and modifications made to the report of the commissioners as may in the judgment of the court be equitable, and as it appears to the satisfaction of the court, after having heard and determined all of said exceptions, that the estimated cost of the improve- DRAINAGE DISTRICT LAWS 11 ment contemplated in "the plan for reclamation" Is less than the benefits to be derived therefrom; then the court shall approve and confirm said commissioners' report as so amended and modified. The county clerk shall transmit a certified copy of the court decree and copy of the commis- sioners' report, as confirmed or amended by the court, to the secretary of the board of supervisors of the district and to the recorder of each county having lands in the district, or affected by the said report, where the same shall become a permanent record and each such recorder shall receive a fee of one dollar ($1) for teceiving, filing and preserving the same. Any person may appeal from the judgment of the court. (Laws 1915, chapter 340, page 547, section 15.) Board of Supervisors to Construct AH Work; Let Contracts; Duties of Chief Engineer. Section 16. The board of supervisors of said district shall have full power and authority to build, construct and complete all or any works and improvements which may be needed to carry out "the plan of recla- mation" and, in the name of the district to make all necessary water filings and appropriations of water for the subsequent Irrigation of the lands within said district and to construct, operate and maintain irrigation works for the irrigation of the lands within said district and may hire men and teams, and purchase machinery, equipment and supplies. They may in their discretion, after advertising for bids, let a contract for the construction of the whole or any part of the drainage or irrigation works to the lowest responsible bidder ; such contract shall be in writing. The complete plans and specifications prepared by the chief engineer and approved by the state engineer for the drainage or irrigation of said 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 he will well and truly comply with all provisions of said contract and perform all work in accordance with the terms thereof. The chief engineer shall be the superintendent of all the works and improvements, and shall whenever required, and at least once each year, make a , full report to said board of all work done and improvements and make such suggestions and recommendations to the board as he may deem proper. (Laws 1915, chapter 340, page 548, section 16; laws 1919, chapter 29, page 43, section 3.) (Section 17 repealed. See chapter 184, laws of 1919.) Board of Supervisors to Levy Annual Instalment i>f Tax Section 18. The board of supervisors shall each year make a computa- tion of the whole amount of money to be raised by the district through assessments for the ensuing year for any and all purposes whatsoever in carrying out the provisions of this act, including estimated delinquencies on assessments ; and said amount of money, when so determined by said board, shall be and constitute an assessment upon all of the land included in said district and shall be apportioned by said board in accordance with the report of the commissioners as confirmed or amended by the court as provided for in section 15 of chapter 340 of the general laws of Oregon for 1915. The board of supervisors shall prepare a list or record of said assessments and apportionments, giving the description of the ownership or holdings of each person, firm or corporation therein 12 DRAINAGE DISTRICT LAWS assessed, which shall be certified by the said board not later than Decem- ber 1 of each year to the county assessor of -each county in which lands of said district are situate, and the county assessor shall enter the assessment so made upon the county assessor's roll against the property therein respectively described, in the same manner as other municipal taxes are entered by him on said assessment roll.. The collection of the tax shall be coincident with the collection of the state and county tax, and shall be governed by the laws relating thereto. 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 said district. In case of neglect or refusal of the board of supervisors to cause such assessment and levy to be made as in this act provided, then the assess- ment and levy herein provided for shall be made and equalized by the county court 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 said court levies county taxes, with like effect as the board of supervisors is required to make the same, and all ejcpenses incident thereto shall be borne by such district, and such levy and assessment shall be entered on the county tax roll by the county assessor in the manner in this section provided. (Laws 1915, chapter 340, page 549, section 18; laws 1919, chapter 184, page 268, section 2.) Secretary of Board to Be Exofficio Treasurer; Salary; Board to Audit Books Annually. Section 19. The secretary of the board of supervisors in any drainage district shall hold the office of treasurer of such district, except as other- wise provided herein, and he shall receive and receipt for all moneys received by him. Said treasurer shall give bond in such amount as shall be fixed by the board of supervisors, conditioned that he will well and truly account for and pay out, as provided by law, all moneys received by him, such bond to be approved and accepted by said board of super- visors, and said bond shall be in addition to the bond for proceeds of sales of bonds, which is required by a subsequent section of this act; said bond shall be placed and remain in the custody of the president of the board of supervisors and shall be kept separate from all papers in the custody of the secretary and treasurer. Said treasurer shall keep all funds received by him from any source whatever deposited at all times in some bank, banks, or trust company to be designated by the board of supervisors. All interest accruing on such funds shall, when paid, be credited to the district. It shall be the duty of the board of supervisors to audit or have audited the books of said treasurer of said district each year and make report thereof to the land owners at the annual meet- ing and publish a statement within thirty days thereafter, showing the amount of money received, the amount paid out during each year, and the amount in the treasury at the beginning and end of the year. The aforesaid treasurer of the district shall pay out funds of the district only on warrants issued by the district, said warrants to be signed by the president of the board of supervisors and attested by the signature of the secretary and treasurer. 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 of supervisors. DRAINAGE DISTRICT LAWS 13 (Laws 1915, chapter 340, page 549, section 19; laws 1917, chapter 414, page 869, section 7.) Board to Keep Record of Proceedings. Section 20. The board of supervisors of any district organized under this 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 employes and any and all corporate acts, which record or records shall at all times be open to the inspection of any one interested, whether taxpayer or bondholder. (Laws 1915, chapter 340, page 550, section 20.) Unpaid Warrants to Draw Interest. Section 21. Any warrant Issued under this act that is not paid when presented to the treasurer of the board of supervisors of the district, because of lack of funds in the tredsury, such fact shall be endorsed on the back of such warrant, and such warrant shall draw Interest there- after at the rate of six per cent per annum, until such time as tliere is any money in hand to pay the amount of such warrant and the interest then accumulated but no interest shall be allowed on warrants after such time when sufficient funds are in the treasury to pay said endorsed warrants and interest, and the secretary of the board shall give notice by publication whenever sufficient funds are available to pay outstanding warrants. (Laws 1915, chapter 340, page 550, section 21.) Bonds Payable to District. Section 22. All surety bonds required to be given by this act shall be made payable to the district by its corporate name, in which name all suits shall be instituted and prosecuted. All penalties herein named shall be payable to and recoverable by said district. All bonds required by this act shall cover defaults of deputies, clerks or assistants of the officers appointing them. (Laws 1915, chapter 340, page 550, section 22.) Court to Declare Corporation Dissolved, When. Section 23. If after determining the objections made to the commis- sioners' report, the court shall find that the estimated costs of works and improvements as reported by the board of commissioners, or as amended by the court, exceed the estimated benefits, the court shall then render its decree, 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, shall have been paid, and if the uniform tax levied under the provisions of section 10 of this act be found insufficient to pay all such costs the board of supervisors shall make such additional uniform tax levies as will be necessary to pay such deficiency. (Laws 1915, chapter 340, page 551, section 23.) Plan of Drainage May Be Changed, How. Section 24. The board of supervisors for and in behalf of any drainage district organized under the provisions of this act, or the owners of laud adjacent to such district, shall have the right to file a petition in the 14 DRAINAGE DISTRICT LAWS office of the clerk of the court organizing said district praying the court to amend its former decree incorporating the district, by correcting ttie names of land owners, 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 any such district, or in any other manner amend its decree; said petition may ask permission of the court to amend or change "the plan of reclamation," or to correct any errors, omissions or other mistakes that have been discovered in "the plans for reclamation;" or said petition may ask that the boundary lines of said district be extended so as to include lands not described by and included in the petition and decree of the court incorporating the district. If such petition asks the court permission to change "the plan for reclama- tion," or that the boundary lines of such district be in any manner changed, under the provisions of section 11 to appraise the land that shall be taken, it shall also ask the court to appoint three commissioners as provide'd for for rights of way, holding basins, or other works, or assess the benefits and damages to any or all lands, or other works, or assess the benefits and damages to any oi' all 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 of said district. As soon as said petition sjiall have been filed the clerk of the court shall give (notice) in the manner and for the time provided for in section 2 of this act, said 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: Tou and each of you are hereby 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 said 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 day of 19 — , the prayer of said petition may be granted. County Clerk of County. ' 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, shall have the right to file objections to the granting of the prayer of said petition on or before the first day of the term of the court at which the petition is to be heard. The court shall hear said petition and all objections that may have ^been filed against said petition in a summary manner and enter its decree according to its findings. The clerk of said court shall, within fifteen days after the granting of such decree, transmit a certified copy of said decree and a copy of the petition to the secretary of the board of supervisors, and to each of the recorders of deeds of the counties having land in the district. Each such recorder shall file and preserve the same in his' office, and for such filing and preserving he shall receive a fee of one dollar ($1) . If said decree 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 the provisions of Section 11 of this act, to appraise property to be taken, assess benefits and DRAINAGE DISTRICT LAWS 15 damages and estimate the cost of improvements the same as is required of commissioners acting under the provisions of Section 13 of this act. Said commissioners shall make their report in writing and file the same with the county clerk, after which the case shall be proceeded with in the same manner as is now provided for in the previous sections of this act for the organization of drainage districts; provided, that if the petition be dismissed the district shall pay the cost, but if the petition be sustained in whole or in part the objectors shall pay the court costs. (Laws 1915,/ chap- ter 340, page 551, section 24.) Board of Supervisors May Issue Bonds. Section 25. The board of supervisors may, if in their judgment it seem best, issue bonds of the district for any purpose necessary or con- venient to carry out the provisions of this act, in denominations of not less than one hundred dollars, bearing interest from date at a rate not to exceed six per cent per annum, payable semiannually, to mature at annual intervals within twenty years, commencing after a period of years not later than five years, to be determined by the board of super- visors, both principal and interest payable at some convenient bank or trust company to be named in said bonds, which said bonds shall be signed by the president of the board of supervisors, attested with the seal of said district and by the signature of the secretary of the said board. Said bonds may be issued so as to mature serially in annual amounts so as to be approximately etjual, principal and interest, and may be issued so as to include a sum sufficient to pa;^ the first four years' interest, or less, to accrue on said bonds. The board of supervisors may sell, from time to time, the bonds which may have been authorized and in such quan- tities 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 and hour and place of such sale, and shall cause such resolution to be entered on the minutes and notice of sale to be given by publication thereof for at least thirty days in three newspapers published in the state of Oregon, one of which shall be a newspaper published in the county in which the office of the board of supervisors is situated, if there be a newspaper published in said county, and in any other newspaper at their discretion ; the notice shall state that sealed proposals will be received by the board of super- visors at their 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 said bonds for sale as above provided, if no satisfactory bid is received, the board may use said bonds for any purpose for which the proceeds from the sale of bonds may be used, but such board shall in no event sell or dispose of any of said bonds for less than ninety per cent of the face vajue thereof, and nothing in this act shall inhibit the district from providing for the drainage of lands within the district, in units or por- tions, from time to_ time. Such bonds and the interest thereon and all obligations for the pay- ment of money authorized and Incurred by such district shall be paid by the revenue derived from the annual assessments upon the land and other real property within the district, and all the lands and other real property within the district shall be and remain liable to be assessed for such 16 DRAINAGE DISTRICT LAWS payments as herein provided and under and subject to the provisions of this act. The treasurer shall, at the time of the receipt by him of any bonds or moneys arising therefrom, execute and deliver to the president of the board of supervisors of the said district, a bond with good and sufficient sureties, to be approved by the said board of supervisors, conditioned that he shall account for and pay over as required by law and as ordered to do by said board of supervisors any and all money received by him on the sale of such bonds, or any of them. The suc- cessor in office of any such treasurer shall not be entitled to said bonds or the proceeds thereof until he shall have complied with all the foregoing provisions applicable to his predecessor in office; provided, should it be deemed more expedient to the board of supervisors, as -to money derived from the sale of bonds issued, said board may by resolution select some suitable bank or banks or other depository, as temporary treasurer or treasurers, to hold and disburse said moneys on the orders of the board as the work progresses, until such fund is exhausted or transferred to treasurer by order of the said board of supervisors. 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 instalment of principal and interest upon the bonds of the district. From said fund he shall pay all moneys due as principal and interest on bonds as they mature and the bonds and interest coupons when presented. Moneys, received from the sale of bonds, other than refunding bonds, and other- wise 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. After five years from the issuance of bonds the board of supervisors may direct the treasurer to pay such an amount of said bonds not due as the surplus funds in the "general fund" will redeem at the lowest value at which they may be offered for liquidation or call bonds at a premium of three per cent as hereinafter provided. Notwithstanding anything herein contained, the board of supervisors shall have authority to call for payment and to retire before maturity any bonds issued in accordance with this act, on paying therefor principal and accrued interest and a premium of three per cent upon the principal thereof. Notice of intention so to do shall be given by publication in a newspaper published and regularly circulated in the county or coun- ties in which the district lands lie, at least once a week for four successive weeks, beginning not less than ninety days prior to an interest-paying period, and such notice shall state the number and amount of the bonds so to be retired, with the price to be paid therefor, and the date and place vrhere the same are to be paid. Bonds shall be retired in numerical order, and not otherwise. No bonds shall be retired under this provision except on a day when interest is payable by the terms of such bonds and on and after the date named in such published notice. Interest on bonds described therein shall cease after funds are available as hereinbefore provided. (Laws 1915, chapter 340, page 553, section 25; laws 1919, chapter 184, page 269, section 3.) Board of Supervisors May Levy Maintenance Tax. Section 26. To maintain and preserve the ditches, drains, levees, tide gates or other improvements contained in any drainage district in the DRAINAGE DISTRICT LAWS 17 istate and to strengthen, repair and restore the same, when needed, and tor the purpose of defraying the current expenses of the district, the l^oard of supervisors may, on or before the first day of September in djach year, levy a tax upon each tract or pUrcel of land and upon corporate jJroperty within the district, to be known as a "maintenance tax." Said niaintenance tax shall be apportioned upon the basis of the net assessments of benefits accruing for original construction of the drainage system within the district, shall not exceed 15 per cent thereof in any one year ahd shall be certified to the county assessor of each county in which lands of said districts are situated in the same manner as the annual instalment is certified. The said maintenance tax shall be collected at the same time and in the same manner as is provided herein for the collection of the annual instalment tax. (Laws 1915, chapter 340, page 554, section 26 ; laws 1919, chapter 142, page 196, section 1.) Board May Make Additional Levy of Tax; When and for What Purpose. By an act of the legislative assembly of the state of Oregon filed in the office of secretary of state, February 25, 1919, section 27 of chapter 340, general laws of Oregon for 1915, was amended to read as follows: Section 27. 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 shall have the right to formulate new or amended plans containing new ditches, levees or other works, and additional assessments may be made in conformity with the provisions of section 13, the same to be made in proportion to the increased benefits accruing to the lands because of the additional works. (Laws 1915, chapter 340, page 555, section 27; laws 1919, chapter 142, page 196, section 2.) By an act of the legislative assembly of the state of Oregon filed in the office of secretary o-f state, February 27, 1919, section 27 of chapter 340, general laws of Oregon for 1915, was amended to read as follows; Section 27. Where the words (works) set out in "the plan for recla- mation" 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 shall have the right to formulate new or amended plans containing new ditches, levees or other works, and additional asssessments may be made in conformity with the provisions of section 13, 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 amount of total tax levied under the provisions of section 18 is Insufficient to pay cost of works set out in "the plan for reclamation" or additional work done under the provisions of this section the board of supervisors may make an additional levy to provide funds to complete the work, provided the total of all levies of such tax does not exceed the total amount of benefits assessed. (Laws 1915, chapter 340, page 555, section 27; laws 1919, chapter 184, page 271, section 4.) Board May Remove Any Officer or Employe. Section 28. The board of supervisors may at any time remove any officer, attorney or other employe appointed or employed by said board. (Laws 1915, chapter 340, page 555, section 28.) 18 DRAINAGE DISTRICT LAWS Existing Drains May Be Connected, How. Section 29. At the time of the construction in any district incorporated under this act of "the plan for reclamation" hereinbefore referred to, all ditches or systems of drainage already constructed .in said district and all water courses shall, if necessary to the drainage of any of the lands in said district, be connected with and made a part of the works and improvements of the plan of drainage of said district. But no ditches, drains of systems of drainage constructed in said ditch, shall be connected therewith, unless the consent of the board of supervisors shall be first had and obtained, which 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. Said connections, if made, shall be in strict accord with the method, terms and conditions laid down in said consent. If the land owner or owners wishing to make such connection are refused by the board of supervisors or decline to accept the consent granted, the said land owner or owners may file a petition for such connection in the circuit court having jurisdiction in said district, and the matter in dispute shall in a summary manner be decided by said court which decision shall be final and binding on the district and land owner or owners. No connection with the works of improvements of said plan of drainage of said district or with any ditch, drain or artificial drainage wholly within said district shall be made, caused or effected by any land owner or owners, company or corporation, munici- pal or private, by means of which any ditch, dra.in, cut, fill, roadbed, levee, embankment or artificial drainage, wholly without the limits of said district, unless such connection is coiisented to by the board of super- visors, or in the manner hereinbefore provided. (Laws 1915, chapter 340, page 555, section 29.) Statute Applicable to Irrigation. Section 30. Any drainage district heretofore organized or hereafter to be organized under the laws of the state of Oregon may, whenever it appears necessary, proper or beneficial to irrigate any of the lands within said district, whether the drainage works have been actually acquired or constructed, or not, cause irrigation reservoirs, canals, ditches and other works to be constructed, operated and maintained, and to this end such district shall in all respects have the same power and authority as is now conferred or may hereafter be conferred respecting drainage, and all powers in this act conferred upon drainage districts with respect to drainage shall be construed to include irrigation ; provided, however, any bonds issued solely for irrigation purposes shall be known as "irrigation bonds of drainage district." (Laws 1919, chapter 29, page 44, section 4.) District May Enter Into Contract with United States for Reclamation of Lands; Payment of Obligations Under Contract. Section 1. The board of supervisors or board of directors of any drainage district now organized or that may hereafter be organized under the provisions of the laws of the state of Oregon, may, in their discretion, whenever it is determined by such board it is for the best interests of such district, enter into a contract with the United States for the recla- DRAINAGE DISTRICT LAWS 19 mation -by drainage ^or irrigation of the lands within the boundaries of Such 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 pro- jects, and for other purposes," which act is commonly known as the twenty-year extension act. Section 2. The board of supervisors or board of directors of any such drainage district shall provide by a resolution, duly adopted at a regular meeting or special meeting of such board called for the purpose, for the payment of the amounts to become due under such contract with the United States, according to the provisions of such contract, by assess- ment upon the lands which are to be benefited by such drainage, or irriga- tion and such 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 shall be collected by the tax collector of the county within which such lands are situated the same as other taxes are collected. (Laws 1917, chapter 186, page 246, sections 1 and 2 ; laws 1919, chapter 29, page 42, section 1.) Eminent Domain., Section 8. The officers and employes of any drainage district shall have the right to enter upon any land to make surveys, and may locate the necessary drainage or irrigation works and the necessary branches for the same, on any lands which may be deemed best for such location. Said district shall also have the right to 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, improve- ment or extension of any natural or artificial waterway for such purposes, and shall have the right to make all necessai-y water filings or appropriation of water under the general laws of the state of Oregon for the irrigation of the lands within such district. The property, the right to condemn which is hereby given, shall include property already devoted to public use which 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 which are now or may be the property of this state. In the acquisi- tion of property or rights by condemnation, proceedings under the provi- sions of this act shall be brought in the name of the district under the provisions of the laws of the state of Oregon. (Laws 1917, chapter 414, page 869, section 8; laws 1919, chapter 29, page 43, section 2.) Districts May Dispose of Real Property. Section 1. Whenever any drainage or irrigation district heretofore or hereafter created shall have acquired any lands, by gift, purchase, or by the right of eminent domain or otherwise, for the uses and purposes of the said district and shall thereafter by reason of a change of its plans or for any other reason shall determine that all or any part thereof is- no longer necessary for the uses or purposes for which it has been acquired. 20 DRAINAGE DISTRICT LAWS said district is hereby given the right to sell or dispose of said lands or any part thereof, either at private or public sale, and the officers of said district otherwise authorized to execute conveyances shall have the authority to make such'conveyance. (Laws 1919, chapter 138, page 193, section 1.) ^Lien for Clearing, Diking or Improving Land. Any person or persons who' shall hereafter clear any- land or improve the same by ditching, diking, tiling, leveling, checking, bordering or other- wise preparing said land for irrigation or cultivation, or who shall furnish any materials, powder or explosive for use in clearing or improving the same, at the request of the owner, or with his knowledge or consent, shall have a Hen on said land so improved, cleared or prepared for his wages and charges for the said service and for all materials or explosives so furnished, which lien shall be preferred to every other lien, mortgage or encumbrance of a subsequent date, unless such owner or person having or claiming an interest therein shall within three days after he shall have obtained knowledge of said clearing, ditching, diking, tiling, leveling, checking, bordering or preparation give notice that he will not be responsible for the same, by posting a notice in writing to that effect in some conspicuous place on said land. (Laws 1891^ page 100, section 1 ; B. & O., section 5663 ; laws 1917, chapter 159, page 205, section 1 ; laws 1919, chapter 152, page 210, section 1.) Duty of Lien Claimant in Enforcing Lien. Section 7440. It shall be the duty of every person claiming the benefits of this act to file with the county clerk of the county where the land Is situated, within sixty days after the completion of the clearing, improve- ment or preparation of any lands provided for in section 7439, or after the completion of any contract to clear, improve of prepare any land as in this act provided, a statement of said claimant verified by his oath, containing a bill for the wages due such person for such service or for such materials, powder or explosives so furnished, the substance of the contract and the name of the contractor, together with a sufficient description of the land by metes and bounds or legal subdivisions ; also a statement showing the total amount of the demand of such claimant after deducting all setoffs and counter claims, and that the amount claimed is a true and actual bona fide and existing debt. (Laws 1891, page 101, section 2; B. & C.-, section 5664; laws 1919, chapter 152, page 210, section 2.) Procedure for Confirmation of Proceedings of District. Section 1. The board of directors of an irrigation district organized under the provisions of chapter 357 of the general laws of Oregon for 1917, or acts amendatory thereof or supplemental thereto, or the board of supervisors of a drainage district organized under the provisions of chapter 340, laws of Oregon for 1915, and acts amendatory tliereof and supplemental thereto, may by petition commence special proceedings m the circuit court of the county in which the office of such district Is located for the purpose of having a judicial examination and judgment of the court as to the regularity and legality of the proceedings in con- DRAINAGE DISTRICT LAWS 21 nection with the organization of the district, and the proceedings of said board and of said district, providing for and authorizing the issue and sale of the bonds of said district, whether said bonds or any of them have or have not been sold or disposed of; and for the purpose of having a judicial examination and judgment as to the regularity and legality of any action or proceeding of the county court declaring the organization of any irrigation district or drainage district, or declaring the result of any election therein, or after the board of directors of an irrigation district or board of supervisors of a drainage district has made an order including or excluding any lands in or from said district, or declaring the result of any election, general or special or after any order of such board levying any assessment, general or special, or ordering the issue of any bonds for any purpose, or after the order determining any bond issue, or providing for the same, or for a judicial examination and judgment as to the regularity and legality of the authorization of contract with the United States, and as to the validity of said contract, whether or not the same shall have been executed, and whether or not bonds are to be deposited with the United States. All the proceedings of an irrigation district or drainage district may be judicially examined and determined by the court in one special proceeding, or any part thereof may be separately examined and determined upon by the court, and no bond issue or any part thereof shall hereafter be sold or offered for sale unless the same shall have been confirmed under the provisions of this section. (Laws 1919, chapter 390, page 693.) Section 2. Said proceedings shall be in the nature of a proceeding in rem, and the practice and procedure therein shall follow the practice and procedure of suits in equity, so far as the same shall be consistent with the determination sought to be obtained, except as herein provided. The jurisdiction of the said irrigation district, or drainage district of each and all of the freeholders, assessment payers, and legal voters therein shall be obtained by the publication of notice directed to said district, and to "all freeholders, legal voters and assessment payers, within said district," without naming such freeholders, legal voters and assess- ment payers individually. Such notice shall be served on all parties in interest by publication thereof for at least once a week for three successive weeks in some newspaper of general circulation published in the county where said proceeding is pending, and jurisdiction shall be complete within ten (10) days after the full publication of said notice as herein provided. Any person interested may at any time before the expiration of said ten days appear and contest the validity of such proceeding, or of any of the acts or things therein enumerated; such 'proceedings shall be speedily tried and judgment rendered declaring the matter so contested to be either valid or invalid; and any order or judgment in the course of such proceeding, or any final decree therein may be made and rendered bjf the judge of such court in vacation, and for the purpose of any such order, judgment or decree the said court shall be deemed at all times to be in session, and the act of the judge in making such order, judgment or decree shall be the act of the court. Either party may have the right to appeal to the supreme court at any time within thirty (30) days after the rendition of the final judgment or decree, which appeal must be heard and determined within three (3) months from the time of taking such appeal. The court in inquiring 22 DRAINAGE DISTRICT LAWS into the regularity, legality or correctness of any of said proceedings, must disregard any error, irregularity or omission which does not affect the substantial rights of the parties to said proceedings, and may approve the proceedings in part and disapprove and declare illegal or invalid other or subsequent proceedings in part, and the court may approve the proceedings in part and disapprove the remainder thereof. The costs of the special proceedings may be allowed and apportioned between the parties. in the discretion of the court. (Laws 1919, chapter 390, jage 694.) Section 3. Any freeholder, legal voter or assessment payer within an irrigation district or drainage district may, within thirty (30) days after the entry of any order, or the performance of any of the acts mentioned in section 1 hereof, and for which a contest is by said section provided, [may] bring a like proceeding in the circuit court of the county where the lands embraced within such district, or the majority thereof, are situated, to determine' the validity of any of the acts, orders or things enumerated in this act, and concerning which the right of contest is by said act given. In such proceedings the board of directors shall be made parties defendant, and service of summons shall be made on the members of the board personally if within the county where said district, or any part thereof is situated, but as to any directors not within such county, service may be had by publication of summons for a like time, and in like manner, as is provided by this act, and service shall be deemed complete within ten (10) days from the date of personal service thereof within such county, or within ten (10) days from the date of the completion of the publication thereof, as the case may be ; such proceedings , shall be tried and determined in the same manner as proceedings brought by the irrigation district or drainage district itself. No contest of any proceeding, matter or thing by this act provided to be had or done by the board of directors or supervisors or by said district, or by the county court, or by any freeholder, legal voter, or assessment payer within the district, shall be had or maintained at any time or in any manner except as herein provided. (Laws 1919, chapter 390, page 694.) Procedure for Certification of District Bonds. Section 1. Whenever the board of directors of any Irrigation district or the board of supervisors of a drainage district organized and existing under and pursuant to the laws of the state of Oregon shall, by resolu- tion declare that it deems it desirable that any contemplated or out- standing bonds of said district including- any of its bonds authorized but not sold, shall be made available for the purposes provided for in section 7 of this act, the board of directors shall thereupon file a certi- fied copy of such resolution with the commission hereinafter provided for.- Section 2. Such commission on receipt of a certified copy of such resolution shall, witlwut delay, make or cause to be made an investigation of the affairs^ of the district and report in writing upon such matters as it may deem essential and particularly upon the following points, in case the application is filed by an irrigation district. (a) The supply of water available for the project and the right of the district to so much of the water as may be needed. (b) The nature of the soil as to its fertility and susceptibility to irrigation, the probable amount of water needed for its irrigation and the prol)able need of drainage. DRAINAGE DISTRIOT LAWS 23 (c) The feasibility of the district's irrigation system and of the specific )roject for which the bonds under consideration are desired or haye been ised, whether such system and project be constructed, projected or partially ;ompleted. (d) The reasonable market value of the water, water rights, canals, ■eservoirs, reservoir sites or other irrigation works owned by such dis- :rict or to be acquired or constructed by it with the proceeds of any such )onds. (e) The reasonable market value of the land included within the )oundaries of the district. (f) Whether or not the aggregate amount of the bonds under con- sideration, and any other outstanding bonds of said district, Including jonds authorized but not sold, exceeds fifty per centum of the aggregate narket value of the lands within said district and of the water, water ■ights, canals, reservoirs, reservoir sites and other irrigation works owned )r to be .acquired or constructed with the proceeds of any of said bonds, )y said district, as determined by paragraphs (d) and (e) of this section. (g) The numbers, date or dates of issue and denomination of the )onds, if any, which the commission shall find are available for the pur- poses provided for in section 7- of this act and, if the investigation has ;overed contemplated bonds, the total amount which the district can ssue without exceeding the limitation expressed in paragraph (f) of ;his section ; and the following in case the application is filed by a Irainage district : (h) The nature of the soil as to its fertility and productivity after Irainage. (i) The feasibility of the plan of reclamation. (i) The reasonable market value of the works owned by such dis- ;rict or to be acquired or constructed by the proceeds of any such bonds. ,(k) The reasonable market value of the land included within the )oundaries of the district. (1) Whether or not the aggregate amount o^^ the bonds under con- lideration and any other outstanding bonds of said district, including )onds authorized but not sold, exceeds . fifty per centum of the aggregate narket value of th^ lands within said district and the reasonable market ^alue of the works owned by such district or to be acquired or constructed )y the proceeds of any such bonds as determined by paragraphs (j) and ■fc) of this section. (m) The numbers, date or dates of issue and denomination of the )onds, if any, which the commission shall find are available for the )urposes provided for in section 7 of this act and, if the investigation las covered contemplated bonds, the total amount of bonds which the listrict can issue without exceeding the limitation expressed in paragraph 1) of this section. Section 3. The written report of the investigation herein provided or shall be filed in the office of the secretary of state and a copy of aid report shall be forwarded by the commission to the secretary of the listrict for which the investigation shall have been made, and if said ommission shall have found, as set out in said report, that the irrigation ir drainage system of the district and the specific project for which the londs under consideration are desired or have been issued, whether uch project be constructed, projected or partially completed, are feasible 24 DRAINAGE DISTRICT LAWS and that the aggregate amount of the bonds under consideration and any other outstanding bonds of said district, including bonds authorized but not sold, does not exceed fifty per centum of the aggregate market value of the lands within said district and of the water, water rights, canals, reservoirs, reservoir sites and other irrigation or drainage works as the case may be, owned or to be acquired or constructed with the pro- ceeds of any such bonds by said district; the bonds of such irrigation or drainage district, as described and enumerated in said report filed with the secretary of state, shall be certified by the secretary of state, as hereinafter provided for. If the commission shall be notified by the board of directors of any district, whose irrigation or drainage system has been found in such report to be feasible, that the district has issued bonds and the commission shall find that said bonds are for any project or projects approved in such report and that the amount of said bonds does not exceed the limitation stated in said report the commission shall prepare and file with the secretary of state a supplementary report giv- ing the numbers, date or dates of issue and denominations of said bonds, which shall then be entitled to certification by the secretary of state as hereinafter provided for. Subsequent issues of bonds may be made available for the purposes specified in this act upon like proceedings by said district, but after any of the bonds of an irrigation or drainage district have been enumerated and described as entitled to certification by the secretary of state as herein provided for, it shall be unlawful for that district to issue bonds that will not be entitled to such certification. It is hereby made the duty of the secretary of state to provide for filing and preserving the reports mentioned in this section and to make, keep and preserve a record of the bonds certified by him in accordance with the provisions of section 4 of this act, including the date of certification, the legal title of the district, the number of each bond, its par value, the date of its issue and that of its maturity. Section 4. Whenever any bond of Tan irrigation or drainage district organized and existing as aforesaid, including any bond authorized in any such district but not sold, which shall be eligible to certification by the secretary of state under section 3 of this act, shall be presented to the secretary of state, he shall cause to be attached thereto a certificate in substantially the following form : I, , secretary of the state of Oregon, hereby certify that the within bond No. of the District, issue (insert date), is in accordance with an act of the legislature of Oregon approved , a legal investment for all trust funds and for the funds of all Insurance companies, banks, both commercial and savings, trust com- panies, and bonding companies and any funds which may be invested in county, niunicipal or school district bonds, and it may be deposited as security for the performance of any act whenever the bonds of any county, city, school district or other municipality may be so deposited, it being entitled to such privilege by virtue of an examination by the state engineer, the attorney general and the superintendent of banks of the State of Oregon, in pursuance of said act. The within bond may also be used as security for the deposit of public money in the banks of said state. Secretary of State of the State of Oregon. DRAINAGE DISTRICT LAWS 25 In case of a change in the constitution or of any of the laws of this state relating to the bonds of irrigation or drainage districts, the secretary of state shall, if necessary, modify the above certificate so it shall conform to the facts. A facsimile of the signature of the secretary of state, printed or otherwise impressed upon said certificate shall be a sufficient signing thereof; provided, that the imprint of the secretary of state's seal shall appear upon both the certificate and the bond over and through the printed signature. A fee of twenty-five (25) cents shall be paid to the secretary of state for each bond so certified by him under the provisions of this act. Section 5. The attorney general, the state engineer and the super- intendent of banks of the state of Oregon are hereby constituted a commission herein provided for, and said commission shall select one of its members chairman and may employ such clerks and assistants as may be necessary for the performance of the duties herein imposed, and may fix the compensation to be paid to such clerks and assistants. Section 6. All necessary expenses incurred in making the investi- gation and report in this act provided for shall be paid as the commission may require by the irrigation or drainage district whose property has been investigated and reported on by said commission ; provided, that the benefit of any services that may have been performed and any data that may have been obtained by any member of said commission or of any other public official in pursuance of the requirements of any law other than this act shall be available for the use of the commission herein provided for without charge to the district whose affairs are under investigation. Section 7. All bonds certified in accordance with the terms of this act shall be legal investments for all trust funds and for the funds of all insurance companies, banks, both commercial and savings, trust com- panies and bonding companies and whenever any money or funds may by law now or hereafter enacted, be invested in bonds of cities, counties, school districts or other municipalities in the state of Oregon, such money or funds may be invested in the said bonds of irrigation or drainage districts and whenever bonds of cities, counties, school districts or munici- palities may by any law now or hereafter enacted be used as security for the performance of any act, bonds of irrigation or drainage districts under the limitations in this act provided may be so used, and may also be used as security for the deposit of public money in the banks of said state. Wherever bonds have heretofore been certified under and in pur- suance of the provisions of chapter 357 of the general laws of Oregon for 1917, the said certification shall be and the same is hereby declared to have the same force and effect as if made in pursuance of the provisions of this act. (Laws 1919, chapter 305, page 554.) Time Limit for Testing Validity of Organization of District. Section 1. That no action, suit or proceeding, under section 36-1 of Lord's Oregon Laws, or otherwise, shall be maintained for the purpose of avoiding, setting aside or otherwise questioning or affecting the validity of the organization of any municipal corporation designated as a drainage district and organized under chapter 340, general laws of Oregon 1915, 26 DRAINAGE DISTRICT LAWS and subsequent amendments, unless such action, suit or proceeding be 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 qf the boundaries established for such corporation in such procla- mation unless similarly commenced within nine months therefrom; nor for the purpose of questioning the legality of any altered boundaries of said corporation which may be subsequently established as provided for by section 24 of said act as amended unless commenced within nine months from the date of such decree; provided, that where such districts have been heretofore organized and where such nine months' period has expired or will expire within nine months from the taking effect of this act, such action or proceeding may be brougW within nine months from the taking of effect of this act. (Laws 1919, chapter 355, page 625.) State Land Board May Contract for Drainage. Section 1. The state land board for and in behalf of the state of Oregon is hereby authorized and empowered to enter Into contract with persons or incorporations for the drainage and irrigation of any lakes, marshes or swamps lying in the state of Oregon, or for' the drainage and Irrigation of that part which is in the state of Oregon, of any lake, marsh, or swamp lying partly in Oregon and partly in another state, and for the reclamation of the lands forming the beds of, or submerged by any of such lakes, marshes or swamps, and for the sale or disposal of such drained and reclaimed lands as hereinafter provided for. (Laws 1913, chapter 11, page 29, section 1; laws 1919, chapter 320, page 578, section 1.) Application, Plan of Reclamation. Section 2. Any person, company of persons, association or incorporated company desiring to enter into contract to drain any lake, marsh or swamp lying wholly or partly within the state of Oregon and reclaim the land forming the bed of, or submerged by such lake, marsh or swamp, shall file with the state land board an application for a contract to drain such lake, marsh or swamp and reclaim such land. Such applicant is hereby required at his own expense and without any cost or charge to the state to make the necessary surveys, prepare a map of said lands proposed to be reclaimed which shall exhibit a plan showing the submerged area and the mode of the contemplated drainage and reclamation, and shall be accompanied by a list in duplicate of the lands proposed to be drained, with sufficient description to identify said land, either by legal subdivisions or monuments, all in accordance with the rules and regulations to be promulgated by the state land board. Said application for a contract shall contain an estimate of the cost of the construction of the proposed system of drainage. (Laws 1913, chapter 11, page 30, section 2.) Board to Investigate Bond. Section 3. Upon receipt of the application, map, plan of drainage and reclamation, as provided in section 2 of this act, the state land board may require the state engineer to make an investigation and report at the expense of the applicant and if the project appears feasible and desirable and such applicant responsible, enter into a contract with the said person. DRAINAGE DISTRICT LAWS 27 company of persons, association or incorporated company applying therefor for the construction- of the drainage and reclamation works. The person, company of persons, association or incorporated company enter- ing into the same shall undertake and agree to drain said lake, tnarsh or swamp substantially in accordance with the plans set forth in the contract to reclaim said land, and to make such proofs of reclamation as shall be required by the state land board, and to pay all costs incident to said contract and making of said proof, and any other expense connected therewith. Said person, company of persons, association or incorporated company shall further agree and undertake that work will be commenced upon the ditches or other works necessary for the drainage and reclamation of said lands at such time as shall be fixed by the state land board and agreed upon in laid contract; that by the end of the first year after the time fixed in said contract for beginning said work, ten per cent of the necessary expenditure will be made and that this work will be prosecuted with due diligence until complete and the proof of reclamation is made as shall be required by the state land board. The state land board shall require a bond subject to its aproval in any sum it may deem necessary to insure the faithful performance of the contract. (Laws 1913, chapter 11, page 30, section 3 ; laws 1919, chapter 320, page 578, section 2.) Sale of Lands, Deed. Section 4. Immediately upon the execution of the contract the person, company of persons, association or incorporated company undertaking the drainage and reclamation shall be entitled to enter upon the lands for the purpose of reclaiming the same. The state land board shall fix the amount to which said person, company of persons, association or incor- porated company is entitled for reclaiming said lands by drainage or drainage and irrigation, and shall also fix the amount to be paid to the state for said lands. Whenever the board shall deem it proper it shall permit the said person, company of persons, association or incorporated company to sell or dispose of the land at such price and upon such terms as it may fix in tracts of not to exceed three hundred and twenty acres to any one person under such rules and regulations as the board may pro- mulgate governing the disposal of the same. And upon satisfactory proof being exhibited to the board that at least fifty per cent of any such tract is producing agricultural crops, and upon proof that the amount fixed by the board as due for reclamation and the amount due thef state of Oregon has been fully paid, the board shall issue quitclaim deed to the purchaser of such land, provided the board shall not deed -more than three hundred and twenty acres to any one person. (Laws 1913, chapter 11, page 31, section 4 ; laws 1919, chapter 320, page 579, section 3.) Forfeiture of Contract; New Contract. Section 5. Upon the failure of any parties having contracts with the state for the construction of drainage and reclamation works to begin the same within the time specified by the contract, or to complete the same within the time or in accordance with the specifications of the contract with the state, it shall be the duty of the state land board to give such parties written notice of such failure, and if after a period of sixty 28 DRAINAGE DISTRICT LAWS days from the sending of such notice they shall have failed to proceed with the work or to conform to the specifications of their contract with the state, the contracts of such parties, and all work constructed there- under, shall be at once and thereby forfeited to the state; and it shall be the duty~ of the state land board to immediately give notice once every week for a period" of four weeks in some newspaper of general circulation in the county in which the work is situated, and in one newspaper at the state capital in like manner for a like period, declaring the forfeiture of said contract, and that upon a day fixed proposals will be received at the office of the state land board at Salem for the purchase of Incomplete works and for the completion of said contract, the time for receiving such bids to be at least sixty days subsequent to the Issuing of the last notice of the forfeiture. The sales shall be for cash to the highest responsible bidder, and the money received fi'om the sale of the partially completed works under this section shall first be applied to the expenses incurred by the state in their forfeiture and disposal, and the surplus, if any exists, shall be paid into the common school fund in the state of Oregon ; provided, the contractors shall have the right of appeal from the decision of the state land board, which appeal shall be heard in chambers by the judge of the circuit court of the district wherein the head works of the said drainage' system is situated. (Laws 1913, chapter 11, page 32, section 5.) Title to Beds of Lakes. Section 6. The title of owners of land riparian to lakes and ponds which shall be drained under the provisions of this act is hereby declared to extend to only so much of the bottom or bed of such lake or pond which may be reclaimed by such drainage as is required to fill up the fractional subdivision or^ subdivisions of a section which he owns and which are rendered fractional by such lake or pond, and the title of said owner shall be so limited when the waters of said lake or pond receding, because of such drainage, uncover the bed thereof; provided, this section shall not affect the right of riparian owners to land acquired by natural accretion or reliction because of the gradual and natural recession of the waters of the lake or pond to which the lands of such owners are riparian. (Laws 1913, chapter 11, page 32, section 6.) Disposition of Proceeds. Section 7. All money received by the state land board under the provisions of this act shall be paid immediately to the state treasurer and placed by him in the common school fund of Oregon. (Laws 1913, chapter 11, page 32, section 7.) Application to Dig Draining Ditch On Land of Another. Section 5791. When any person, firm or corporation owning land which requires draining, or anj incorporated town or city, in which there is any ditch, standing water or surplus water requiring draining, has no means of draining such ditch, standing water or surplus water, and objection is made by the owners of adjacent land to the construction thereon or thereover of necessary means of drainage, such person, firm, corporation or municipal corporation, may make application in writing to the county court in which such land, town or city is situated, for the right of way DRAINAGE DISTRICT LAWS 29 or privilege to cut or dig or construct sufficient means of drainage over said adjacent land; likevcise any person, firm, corporation or municipal corporation whose land is so situated that it is injured or liable to be injured by flood vi^aters from any natural stream flowing through or near to said land, may make application to the county court for the right to enlarge or straighten the bed of such natural stream, or strengthen or build up the banks thereof, so as to protect such lands from overflow or injury thereto. (Laws 1868, page 21, section 1 ; laws 1905, chapter 149, page 260, section 1; laws 1913, chapter 52, page 83.) Commissioners to Locate Ditch and Assess Damages. Section 5792. Thereupon the court shall appoint three disinterested householders of his county as a commission and cause an order to issue directing them to meet on a day named in such order, and after subscribing to an oath or affirmation to faithfully and impartially discharge the duties of their appointment, and after at least three days' notice given to all persons through whose lands such ditch is to be located or upon whose lands such natural stream is to be straightened, enlarged, or the banks of which are to be straightened or built up. ( Laws 1868, page 21, section 2 ; H. section 3424 ; B. & C, section 4361 ; laws 1905, chapter 149, page 261, section 2.) Ditch Lpcated So As to Do Least Damage. Section 5793. Said commissioners shall proceed to locate and mark out the route so as to do the least damage to the lands such ditch passes through and to designate the location, character, and extent of the work tcj be done in straightening the bed or building up the banks of any such natural stream, and also at the same time assess the damages sustained by the person or persons owning such land. (Laws 1868, page 21, section 3; H., section 3425 ; B. & C, section 4262 ; laws 1905, chapter 149, page 261, section 3.) Benefits Considered in Assessing Damages. Section 5794. In assessing damages, said commissioners shall take into consideration all benefits which will accrue from the work contemplated to the foresaid lands. (Laws 1868, section 4 ; H., section 3426 ; B. & C, section 4363; laws 1905, chapter 149, page 261, section 4.) Keport of Commissioners — Ditch May Be Built on Payment of Damages. Section 5795. The commissioners so appointed, or a majority of them, shall make a report to the county court at the next regular session thereof, stating the location of the ditchi or ditches, or other work contemplated, the name of the person or persons entitled to damage, and the amount thereof, if any is assessed; and if the county court is satisfied and the report is just, and after payment by the applicant for right of way of all costs of locating such ditch, or other work, and the damages, if any are assessed, the court shall cause the same to be recorded, and the applicant may proceed to make such ditch, or do such work of straightening said streams, or building up or straightening the banks thereof, doing as littie damage to the land its passes through as possible. (Laws 1868, page 21, section 5 ; H., section 3427 ; B. & C, section 4364 ; laws 1905, chapter 149, page 261, section 5.) 30 DRAINAGE DISTRICT LAWS Appeal May Be Had. Section 5796. Any person aggrieved by the assessment of damages may appeal within twenty days to the circuit court. (Laws 1868, page 22, section 6; H., section 3428; B. & C, section 4365.) Commissioners May Administer Oaths. Section 5797. In the absence of the justice of the peace, the said com- missioners may administer the aforesaid oath to each other. (Laws 1868, page 22, section 7; H., section 3429; B. & C, section 4366.) Ditch Can Not Be Tapped Without Compensation.. Section 5798. No person shall be allowed to tap oT bring water into a ditch already dug without paying a reasonable compensation therefor. (Laws 1868, page 22, section 8; H., section 3430; B. & C, section 4367.) Act Not Construed So As to Affect What Rights. Section 5799. This chapter shall not be construed so as to interfere with the rights of companies or individuals for mining, manufacturing, or watering towns or cities. (Laws 1868, page 22, section 9 ; H., section 34^1 ; B. & C, section 4368.) Since the rights of those who had appropriated water from the public domain for manufacturing purposes, prior to a conveyance thereof were protected by the act of congress of July 26, 1866 (14 Stat. U. S. 253, chapter 262, section 9), and the rights of such persons were also protected against persons desiring to construct drainage ditches by the legislative act authorizing the digging of such ditches, under this section, a subsequent patent issued without reserving vested, or accrued water rights does not affect them. (Parkersville Drainaae Dist v. Wattier, 48 Or. 332, 86 Pao. 775.) GUARANTEE OF FIVE YEARS' INTEREST ON IRRIGATION AND DRAINAGE DISTRICT BONDS House Joint Resolution No. 32 Be It Resolved by the House of Representatives of the State of Oregon, the Senate Jointly Concurring : That the constitution of the state of Oregon be, and the same is hereby, amended by the addition of article Xl-b to read as follows : ARTICLE Xl-b Section 1. Notwithstandiyig the limitations contained in section 7 of article XI of the constitution, the credit of the state may be loaned and indebtedness incurred to an amount not exceeding two (2) per cent of the assessed valuation of all the property in the state, for the purpose of providing funds for the payment by the state of interest for a period not exceeding five (5) years on bonds heretofore, or herefater issued by irrigation and drainage districts, organized, or to be organized, under the laws of the state of Oregon. Section 2. The attorney general, superintendent of banks and state engineer shall constitute a commission for the purposes hereinafter specified. Section 3. Whenever the board of directors -or board of supervisors as the case may be, of districts heretofore or hereafter organized under DRAINAGE DISTRICT LAWS 31 the laws of the state of Oregon fot the reclamation of lands by irrigation, or drainage, or both, deem it to the best interest of such district to enter into agreement with the state of Oregon for the payment by the state of Oregon of interest to accrue in any or all of the first five years of any bonds which said district may have heretofore or may hereafter issue, said board shall forthwith give notice of an election to be held in such district for the purpose of determining whether or not such district shall enter into an agreement with the state of Oregon for payment by the state of interest on said bonds for said years ; such notice and the election held thereunder shall conform to the notice and method of election prescribed for the general purposes of irrigation and drainage districts, respectively. Section 4. If, upon the canvass of votes cast at such election a majority of the votes cast are in favor of such agreement, the saidi board of directors or board of supervisors shall, by resolution, declare that it deems it desirable that an agreement shall be entered into with the state of Oregon for the payment by the state of Oregon of interest for any one or more of the first five years of any contemplated or outsanding bonds of said district, and a certified copy of such resolution shall be forthwith filed with the said commission. Section 5. Such commission on receipt of certified copy of such resolu- tion shall, without delay, make or cause to be made an investigation of the affairs of the district and a report in writing upon such matters as it may deem essential, and particularly upon the following points, respectively : (1) For irrigation districts: (a) The supply of water available for the project and the right of the district to so much of the water as may be needed. (b) The nature of the soil as to Its fertility and susceptibility to irrigation, and probable amount of water needed for its irrigation and the probable need of drainage. * (c) The reasonable market value < of the water, water rights, canals, reservoirs, reservoir sites or other Irrigation works owned by such district or to be acquired or constructed by it with the proceeds of any such bonds, (d) The number of irrigable acres standing in the name of each individual or corporation, the number of acres in each owner's name that have been farmed, the number of acres in each owner's name that have been cleared and irrigated, the number of acres in each owner's name that have been cleared and dry farmed, tte number of acres in each owner's name that remain in their natural, uncleared, unreclaimed and untilled condition. (2) For drainage districts: (a) The nature of the soil as to its fertility and productibility after drainage. (b) The reasonable market value of the works owned by such district or to be acquired or constructed by the proceeds of any such bonds. (c) The number of acres standing in the name of each individual or corporation, the number of acres In each owner's name that remain In their natural unreclaimed and untilled condition. (3) For irrigation and drainage districts: (a) The feasibility and permanence of construction of the district's reclamation system and the feasibility of the specific project for which the bonds under consideration are desired or have been used, whether such system and project be constructed, partially completed, or contemplated. 32 DRAINAGE DISTRICT LAWS (b) The reasonable market value of the land included within the boundaries of the districts. (c) The number of acres belonging to each owner that will be for sale if the reclamation works are built, and which are covered by the sp.ecific agreement of the owner with the district to sell at a price fixed by such agreement, and that such agreement has been recorded in the office of the county clerk or recorder of the county in which the land is situated; (d) That the agreement referred to in subdivision (c) hereof provides that honorably discharged soldiers, sailors, marines, members of army or navy corps and Red Cross nurses shall have a preferred right to the purchase of such lands at said price and for such period of time as the commission shall designate, and the number of acres which the owner will reclaim and put in crop each of the five years from the date of issue of bonds if the district is given the benefit of the provisions hereof. (e) The numbers, date of issue and denominations of the bonds which the commission shall find are available to receive the benefits of this act. (f ) That it will be for the best interest of the district applying for the benefit of the provisions hereof, and the state of Oregon, that the state of Oregon shall pay interest on such bonds for the period of time covered by the application. The written report of the investigation herein provided for shall be filed in the. office of the secretary of state and a copy of said report forwarded to the secretary of the district for which the investigation shall have been made. It is hereby made the duty of the secretary of state to provide for filing and pi-esserving the records mentioned in this sectio;a and to make, keep and preserve a record of the bonds indorsed by him in accordance with the provisions hereof, including the date of such indorse- ment, the legal title of the district, the number of each bond, its par value, the date of its issue and maturity, and the dates of maturity of all instal- ments, including specifically the instalments of interest which are to be paid by the state. Section 6. In making such investigation, the commission shall have authority to employ expert hyraulic engineers, agriculture experts and appraisers, and any and all expenses connected with such investigation, whether it shall result in an agreement by the board and the state of Oregon, to pay such interest or not, shall be paid by the district applying to the state for- the benefits of this act, and the commission may exact from the district a good and sufficient bond to pay the cost of such investi- gation before undertaking the same, and reasonable sums therefor in advance. Section 7. Whenever the commission, after complete investigation of the affairs of the district, shall find that it is for the best interest of the district and of the state of Oregon to enter into an agreement for the pay- ment of interest by the state, and that said district is entitled to the benefits hereof, said commission may enter into an agreement with said district providing for the payment of any or all of the interest falling due on the bonds of the district for a period not greater than the first five years, which agreement shall provide that any and all moneys used in the payment of such interest, together, with interest thereon at five per cent per annum, shall be evidenced by "interest certificates of indebted- edness" of the district properly executed by its duly authorized officers. DRAINAGE DISTRICT LAWS 33 Section 8. Bach "interest certificate of indebtedness" so executed shall be issued and dated ninety days prior to the day and year of the date of each interest payment for which said "certificate of indebtedness" is issued by the district, and shall fall due and be paid in full with interest as aforesaid by the district six months subsequent to the due date of the last maturing serial bond of the district on which the state has agreed to pay interest ; or after the district shall have Issued "interest certificates of indebtedness," each certificate shall fall due and be paid in full with interest as aforesaid six months subsequent to the due date of the last preceding "interest certificate of indebtedness" which shall have been issued by such district. Section 9. Whenever an agreement shall be entered into by and between the state and a district for the payment of such interest by the state, except- ing when the directors of any such district shall have notified the state treasurer on or before ninety days prior to any interest due date that it will not avail itself of said moneys for the payment of any single Instalment of interest under its agreement with the state, the district shall, ninety days before the due date of said interest payment, forward an "interest certifi- cate of indebtedness" for the amount of interest to fall due on said due date to the treasurer of the state of Oregon, .and said treasurer of the state of Oregon shall sixty days prior to such interest due date call for bids for bonds of the state of Oregon which shall be general obligations of the state and shall be known as "district interest bonds," series . Section 10. Said bonds shall be in a form embodying an absolute promise of the state of Oregon to pay the amount thereof in gold coin of the United States of America of the value in weight and fineness of the date of such bond and shall be in such denominations as the commission shall determine. They shall be signed by the governor, secretary of state and state treasurer. The commission shall provide such method as it_may deem necessary for the advertisement of each issue of said bonds before the same are sold and shall require such deposit with bids as may be proper, and generally the treasurer shall conduct the sale and the issuance of the said bonds under such rules and regulations not iaconsistent here- with as shall be adopted by said commission. Such bonds shall be in series to be dated as of the date of its issue and, to mature on the same date as the date of maturity of the "interest certificate of indebtedness" executed by the district for each interest payment. Section 11. The money arising from the sale of each issue of bonds shall be deposited in the state treasury, to the credit of a special fund to be designated as district interest fund, and ten days prior to the interest due date of each of said districts shall be dellveted by the state treasurer to the treasurer of such districts and be used by the treasurer of said district in the payment of interest In accordance with the stipulation of oustandln^ bonds of said district, interest on which is to be paid by the state under the provisions hereof. Section 12. Whenever any bonds of a district hereafter or heretofore issued shall have been covered by an agreement between the district and the state of Oregon for the payment by the state of Oregon of Interest thereon, the secretary of state shall, upon presentation of such bond, cause to be attached thereto a certificate certifying that the state of Oregon has agreed to pay interest thereon for the period of years agreed upon from the date of the issue of such bond. 34 DRAINAGE DISTRICT LAWS A facsimile of the signature of the secretary of state printed or other- wise impressed upon said indorsement shall be a sufficient signing thereof, provided that the imprint of the secretary of state's seal shall appear upon the indorsement and bond over and through the printed signature. The secretary of state shall receive a fee of 25 cents for every bond so certified, and all expenses incui'red in connection with the provisions hereof shall be borne by the district. Section 13. The provisions of the constitution and laws of Oregon in conflict with this amendment are hereby repealed insofar only as they conflict herewith, and the provisions of this amendment shall be self executing and Immediately operative. Note. — The foregoing amendment was submitted to the people' by the thirtieth legislative assembly through house joint resolution No. 32, and approved by a majority of votes cast thereon at a special election held June 3, 1919, as provided by chapter 429, laws of Oregon for 1919. There were 43,010 votes cast for said amendment and 35,948 against, and under the provisions of the resolution the amendment became effective immediately. The foUoiwing cases are among those that have been decided affecting chapter 340, laws of 1915, and chapter 414, laws of 1917 : State ex rel. v. Mahaffey, 82 Or. page 685. State V. Nyssa-Arcadia Drainage Dist., 80 Or. page 524. Drainage Dist. No. 7 v. Bernards, 89 Or. 531, 545, 546 ; 174 Pac. 1167. ^