r HD ^\3 Cornell University Library HD 1729.07A4 1919 Irrigation district laws of Oregon, 1919 3 1924 013 907 211 Irrigation District i Laws of Oregon II 1919 Published by State Water Board Percy A. Copper, State Engineer Georee T. Cochran, State Water Superintendent Cornell University Library 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/cu31 92401 390721 1 Irrigation District Laws of Oregon 1919 Published by State Water Board Percy A. Cupper, State Engineer George T. Cochran, State Water Superintendent Salem, Oregon : State Printing Department 1919 IRRIGATION DISTRICT LAWS Irrigation District May Be Organized. Section 1. Whenever fifty or a majority of the owners of land irrigated or susceptible of irrigation desire to provide for the construction of works for the irrigation of the same, or desire to provide for the reconstruction, betterment, extension, purchase, operation or maintenance of works already constructed, or for the assumption as principal or guarantor of indebtedness pn account of district lands to the United States under the federal reclamation laws, they may propose the organization of an irrigation district under the provisions of this chapter by signing a petition therefor and presenting the same to the county court of the county in which the land, or the greater portion thereof is situated ; said petition shall set forth and particularly describe the boundaries of the proposed irrigation district and shall state that it is the purpose of the petitioners to organize an irrigation district under the provisions of this act, and shall pray that the same be organized hereunder. The petitioners shall accompany the- petition with a good and sufficient bond, to be approved by the county ■ court, in double the amount of the probable cost of organizing sucll district, conditioned that the bondsman will pay all the said costs in case said organization be not effected. Such petition shall be presented at a regular meeting of the county court, or at any special meeting called to consider and act upon the same, and shall be published once each week for at least four successive weeks before the time at which the same is to be presented, in some newspaper printed and published in the county where said petition is presented, together with a notice stating the time of the meeting at which the petition will be presented, and if any portion of such -proposed district lies within another county or counties, then said petition and notice shall be published in a newspaper published in each of said counties in the same time and manner. (Laws 1917, Chap. 357, page 744.) Hearing of Petition by County Court. Section 2. When such petition is presented, the county court shall hear the same and may adjourn such hearing from time to time, not exceeding four weeks in all, and on the final hearing may make such changes in the proposed boundaries as the court may find proper, and shair establish and define such boundaries ; provided, that no incorporated city or town or platted subdivision or part thereof adjacent thereto chiefly valuable for residence purposes shall be included in an irrigation district ; but this proviso is expressly limited to residence property ; and all lands, whether wholly or partially within any incorporated city or town, used or suitable for agricultural or horticultural purposes and not platted in tracts of less than one acre, may be Included ; provided, that said court shall not modify said boundaries so as to except from the operation of the act any territory within the boundaries of the districts proposed by said petitioners which is susceptible of irrigation by the same system of works applicable to other lands in such proposed district; provided that any person whose lands are susceptible of irrigation from the same system of works may in the discretion of the court, upon written application of the owner of said land, have such lands included In said district. On the final IRRIGATION DISTRICT LAWS hearing the court shall make and enter an order determining whether the requisite numher of owners of the land within such proposed districts shall have petitioned for the formation thereof, and whether the petition, and notice of the time of presentation thereof, shall have heen duly published as hereinbefore provided, and said order as so made and entered shall be conclusive evidence ot the facts found by the court, subject to an appeal to the circuit court within ten days from the entry of such order. Said court in said order shall designate the name of said district, and shall if the petition so directs, divide said district into three divisions, of as nearly equal size as may be practicable, which divisions shall be numbered first, second and third, and shall establish a convenient number of election precincts in said proposed district, and define the boundaries thereof, which said precincts may thereafter be changed by the board of directors of such district. (Laws 1917, Chap. 357, page 744 ; Laws 1919, Chap. 267, page 442.) Notice of Election for Organization of District. Section 3. The county clerk shall forthwith give notice of an election to be held in such proposed district for the purpose of determining whether or not the same shall be organized under the provisions of this act. Such notice shall describe the boundaries so established, and shall designate the name of such proposed district, and shall be published once each week for at least four consecutive weeks prior to such election in a newspaper published within said county; and if any portion of said district lie[s] within another county or counties, then said notice shall be published in a newspaper published within each of said counties in the same time and manner. Such notice shall require the electors to cast ballots which shall contain the words "Irrigation District — ^Tes," and "Irrigation District — No," or words equivalent thereto. The county clerk shall at the same time send a copy of such notwe by registered mail to each landowner not joining in the petition for the organization of the district insofar as names and addresses of such owners can be reasonably ascertained. Provisions hereof as to mailing notices shall be taken as directory and not jurisdictional. (Laws 1917, Chap. 357, page 745.) Election; How Conducted; Proceeding After Affirmative Vote. Section 4. Such election shall be conducted, as nearly as practicable, in accordance with the general election laws of the state; provided, that no particular form of ballot shall be required, and that the provisions of the election laws as to the form of ballot shall not apply; and provided further, that the provisions of the election laws relating to the nomination of candidates shaU not apply, but nominations for the offices hereinafter provided for may be made by petition, signed by at least ten of the electors in the proposed district or division, qualified to vote for the officer or officers so nominated by them, or at an assembly of not less than twenty-five of said electors, whicli said nominations by petition or by assembly shall be filed with the county clerk at least ten days next preceding the date of said election, and the county clerk shall cause the names of all persons so nominated to be placed on the ballots as candidates for the respective offices for which said persons have been nominated; provided, such ballots shall have a blank line thereon under IRRIGATION DISTRICT LAWS the names printed, wherein may be written the name of any candidate voted for. The said county court shall meet on the Monday next suc- ceeding such election and proceed to canvass the votes cast thereat, and enter an order declaring the result of said election, and if upon such canvass it appears that at least three-fifths of the votes east are "Irrigation District — Yes," the said court shall, by an order entered on its minutes, declare such territory duly organized as an irrigation district, under the name and style theretofore designated, and shall declare the persons receiving, respectively, the highest number of votes for such several offices to be duly elected to such offices.- Said court shall cause a copy of such order, duly certified, to be Immediately filed for record in the office of recorder of conveyances of each county in which any portion of such lands are [is] situated, and must also immediately forward a copy thereof to the clerk of the county court of each of the counties in which any portion of the district may lie ; and no county court of any county including any portion of such district shall, after the date of the organization of such district, allow another district to be formed including any of the lands in such district without first securing consent thereof, and from and after the date of such filing the organization of such district shall be complete, and the officers thereof shall be entitled to enter immediately upon the duties of their respective offices upon duly Qualifying as provided by this law, and they shall hold their offices, respectively, until their successors are elected and qualified. (Laws 1917. Chap. 357, page 746.) Election of Officers in Each District; Oath and Bonds of. Section 5. At the election for the organization of an irrigation district one director, who shall be a resident of the state of Oregon and a bona fide owner of land situated in the division, shall be elected from each division into which the district shall have been divided by the county court, or said directors shall be elected from the district at large if no divisions shall have been made. Terms of the directors so elected shall expire in one. two and three years, respectively, from the first Tuesday in February next succeeding their election, and their respective term.s shall be decided by lot. An election shall be held in each district on the second Tuesday in January of each year, excepting the second Tuesday in January next succeeding the organization of the district, at which one director shall be elected. The person receiving the highest number of votes for any office to be fUled shall be elected thereto, and shall hold the office from the first Tuesday in February next after such election for three years and until his successor is elected and qualified; provided, that the directors of districts now organized shall serve until their terms shall expire, when one director shall be elected from each of the three divisions into which the board of directors shaU divide the district, to serve one, two, and three years, respectively, their respective terms being decided by lot, or, if the board of directors so order, the directors may be elected' from the district at large. Any vacancy occurring in the office of director shall be filled by appointment by the remainder of the board until the next election, when his successor shall be elected to serve out the unexpired term. Within ten days after receiving the certificate oE election hereinafter provided for, said official shall take the official cuth 6 IRRIGATION DISTRICT LAWS and file the same in the office of the board of directors, and each member of the board of directors shall execute an official bond in the sum of five thousand dollars ($5,000.00), which said bond shall be approved by the county judge and shall be recorded in the office of the county clerk and fUed with the secretary of the board. All official bonds herein provided for shall be in the form prescribed by law for the official bonds of county officials ; provided, that in case any district organized under this act is appointed fiscal agent of the United States or by the United States is authorized to make collections of moneys for and on behalf of the United States in connection with any federal reclamation project, the treasurer and each director shall execute a further and additional official bond in such sum as the secretary of the interior may require, conditioned for the faithful discharge of the duties as fiscal or other agent of the United States under any such appointment of [or] authorization, and any such bond may be sued upon by the United States or any person injured by the failure of such treasurer, or a director, of the district, to fully, promptly, and completely perform their respective duties. (Laws 1917, Chap. 357, page 746.) Notice of Election; Judges of; Constitute Board of Election. Section 6. Fifteen days before any election held under the provisions of this act, subsequent to the organization of any district, the secretary of the board of directors shall cause notices to be posted in three public places in each election precinct of the time and place of holding the election, and shall also post a general notice of the same in the office of said board, which shall be established and kept at some fixed place to be determined by said board, specifying the polling places of each precinct. Prior to the time of posting the notices, the board must appoint for each precinct, from the electors thereof, three judges of election, who shall constitute a board of election for such precinct. If the board shall fail to appoint a board of election, or the members appointed do not attend at the opening of the polls on the morning of the election, the electors of the precinct at that hour may appoint the board, or supply the places of the absent members thereof. The board of directors must, in its order appointing the board of election, designate the house or place within the precinct where the election is to be held. Candidates may be nominated for any election held hereunder in the same manner as candidates may be nominated at the organization election, and all nominations shall be filed with the secretary of the board at least ten days before the date of the election. The said secretary shall cause the names of all persons so nominated to be printed on ballots as candidates for the respective offices" for which said persons have been nominated. (Laws 1917, Chap. 357, page 748.) Organization of Board of Election; Conduct of Election. Section 7. The said judges shall elect a chairman of the board who may administer all oaths required In the progress of an election, and appoiQt judges, if during the progress of an election any judge fails to act. Any member of the board of election may administer and certify oaths required to be administered during the progress of election. Before opening the polls each member of the board must take and subscribe an oath to faithfully perform the duties imposed upon IRRIGATION DISTRICT LAWS him by law. Any elector of the precinct may administer and certify such oath. The polls shall be opened at eight o'clock on the morning of the election and be kept open untU five o'clock in the afternoon, when the same must be closed. The provisions of the general election laws of the state of Oregon concerning the form of ballot shall not apply to the elections held under this act. (Laws 1917, Chap. 357, page 748.) Time of Election; Counting Ballots. Section 8. Voting may commence as soon as the polls are open and may continue during all the time the polls remain open, and shall be conducted as nearly as practicable in accordance with the general election laws for the state of Oregon, and acts amendatory and supplementary thereof. As soon as the polls are closed the judges shall open the ballot box and shall commence counting the votes ; and in no case shall the ballot box be removed from the room in which the election is held until all of the ballots have been counted. The counting of the ballots shall in aU cases be public. The ballots shall be taken out one by one, by the chair- man of the board of election, or one of the judges, who shall open them and read aloud the name of each person contained thereon, and the office for which every such person is voted for. The judges shall keep an accurate account of the votes by tallies in duplicate and the counting of such votes shall continue without adjournment till all the votes shall have been counted. (Laws 1917, Chap. 357, page 748.) Section 9. Certificate of Vote. As soon as all the votes are read off and counted, a certtfieate shall be drawn up on each of the papers con- taining the tallies, or attached thereto, stating the number of votes each one voted for has received, and designating the office to fiU which he was voted for, which number shall be written In words and figures at full length. Each certificate shaU be signed by all the members of the board of election. One of said certificates and the tally paper to which it is attached shall be retained by the chairman of the board of election and preserved by him for at least sis months. The ballots shall be strung on a cord or thread by said chairman, during the counting thereof, in the order in which they are entered upon the tally lists, and said ballots, together with the other of said certificates and tally papers to which it is attached and a poll list of the voters voting at said election, shall be sealed by said chairman in the presence of the other judges and indorsed "Election returns of (narning the precinct) precinct," and be directed to the secretary of the board of directors, and shall be immediately delivered by said chairman, or by other safe and responsible carrier desig- nated by him, to said secretary, and the ballots shall be kept unopened for at least six months ; and if any person be of the opinion that the vote of any precinct has not been correctly counted he may appear on the day appointed by the board of directors to open and canvass the returns and demand a recoimt of the precinct that is claimed to have been incorrectly counted. (Laws 1917, Chap. 357, page 749.) Canvass of Returns Must Be in Public. Section 10. Ko list, tally paper, or certificate returned from any election shall be set aside or rejected for want of form if it can be satis- factorily understood. The board of directors must meet at its usual place of meeting on the first Monday after each election to canvass the returns. 8 IRRIGATION DISTRICT LAWS If, at the time of meeting, the returns of each precinct in which polls have been opened have been received, the board of directors must then and there proceed to canvass the returns ; but if all the returns have not been received, the canvass must be postponed from day to day until all the returns have been received, or until six postponements have been had. The canvass must be made in public and by opening the returns and computing the vote of the district for each person voted for, and declaring the result thereof. (Laws 1917, Chap. 357, page 749.) Statement of Result; What Must Show< Section 11. The secretary of the board of directors must, as soon as the result is declared, enter on the records -of such board a statement of such result, which statement must show : First, the whole number of votes cast in the district (and in each division of the district) ; second, the names of the persons voted for ; third, the office to fill which each person was voted for ; fourth, the number of votes given in each precinct to each of such persons ; fifth, the number of votes given for the office of director. The board of directors must declare elected the persons having the highest number of votes given for each office. The secretary must immediately make out and deliver to such person a certificate of election, signed by him and authenticated with the seal of the board. No informalities in conducting any election shall invalidate the same if the election shall have been otherwise fairly conducted. (Laws 1917, Chap. 357, page 750.) Organization of Board; Duties; By-laws. Section 12. On the first Tuesday in February next following their election the board of directors shall meet and organize as a board, elect a president from their number, and appoint a secretary, who shall each hold office during the pleasure of the board. The county treasurer of the county In which the petition for the organization of the district was filed shall be ex officio treasurer of the district, and any moneys collected by other county treasurers on behalf of said district shall be forthwith transmitted to said district treasurer, together with a statement specifying the fund into which it is to be deposited. The board shall have the power and it shall be their duty to manage and conduct the business and affairs of the district, make and execute all necessary contracts, employ and appoint such agents, officers and employes as may be required, and to prescribe their duties ; establish equitable by-laws, rules and regulations for the distribution and use of water among the owners of said lands, and generally to perform all such acts as shall be necessary to fully carry out the purposes of this act; provided, that any water the right to use of which is acquired by the district under any contract with the United States, shall be distributed' and apportioned by the district in accordance with the acts of congress, and rules and regulations of the secretary of the. interior, and the provisions of said contract in relation thereto. The directors shall each receive $3.00 per day and mileage at the rate of ten cents per mUe, in attending meetings, and actual and necessary expenses paid while engaged In official business under the order of the board. The board shall fix the compensation to be paid to the other officers and employes of the district. (Laws 1917, Chap. 357, page 750.) IRRIGATION DISTRICT LAWS Meetings; Quorum of Board. Section 13. The board of directors shall hold a regular monthly meeting, in their office, on the first Tuesday of every month, and such special meetings as may he required for the proper transaction of business ; provided, that all special m^tings must be ordered by a majority of the board, the order must be entered of record, and five days' notice thereof must be given by the secretary to each member not joining in the order. The order must specify the business to be transacted, and none other than that specified may be transacted at such special meetings unless all the members be present. All meetings of the board must be public, and a majority of the members shall constitute a quorum for transaction of business ; but on all questions requiring a vote there shall be concurrence of a majority of said board. All records of the board shall be open to public inspection during business hours. (Laws 1917, Chap. 357, page 751.) Board to Take Deeds, Sue, Etc.; Courts to T^e Judicial Notice of Organization^ Section 14. The said board is hereby authorized and empowered to take conveyances or other assurances for all property acquired by it under the uses and provisions of this act, in the name of such irrigation district, to and for the purposes herein expressed ; and to institute and maintain any and all actions and proceedings, suits at law or in equity necessary or proper in order to fully carry out the provisions of this act or to enforce, maintain, protect, or preserve any and aU rights, privi- leges, and immunities created by this act, or acquired in pursuance thereof; and in all courts, acts, suits, or proceedings the said board may sue, appear and defend in person or by attorneys, in the name of such irrigation district. The court shall in all actions or suits or other proceedings take judicial knowledge of the organization of, and boimdaries of all irrigation districts which have been heretofore or may be hereafter organized under the provisions of this act (Laws 1917, Chap. 357, page 751.) Surveys, Plans and Specifications of District; Approval of State Ehiginecr. Section 15. Before beginning the construction of any irrigation or other works the board of directors shall cause surveys, plans -and specifi- cations to be prepared, and for this purpose shall appoint a competent irrigation engineer, or said board may secure and adopt in whole or in part any surveys, plans and specifications which may have been made or prepared. The plans and specifications, when completed or adopted by the board, shall be submitted to the state engineer for his approval, together with a general rei)ort showing the feasibility of the project and an estimate of the cost of the works, and the state engineer shall within ninety days approve or disapprove the same. The state engineer shall have authority to make such field investigations as he may deem necessary on behalf of the state before his final approval or disapproval of such plans and specifications. (Laws 1917, Chap. 357, page 751.) Advertising Proposals for Work; Letting Contract. Section 16. After the approval of such plans and specifications and before beginning the construction of any works, the board of directors shall give notice, by publication and otherwise, as it may deem advisable. caUing for bids for the construction of such works, or any iwrtion thereof. 10 IRRIGATION DISTRICT LAWS Said notice shall set forth that plans and specifications can be seen at the office of the board, and the board wiU receive sealed proposals therefor, and that the contract will be let to the lowest responsible bidder, stating the time and place for opening said proposals, which, at the time and place appointed, shall be opened in public ; and as soon as convenient thereafter the board shall let said work, either in portions or as a whole, to the lowest bidder; or they may reject any or all bids and readvertise for proposals, or may proceed to construct the work under their own superintendence. Any person or persons to whom a contract may be awarded shall enter into a bond, with good and sufficient sureties, to be approved by the board, payable to said district for its use, for not less than twenty-five per cent of the amount of the contract price, con- ditioned for the faithful performance of said contract. The work shall be done under the direction of a competent Irrigation engineer, and such work when completed, shall be approved by the state engineer ; provided, that the provisions of this section shall not apply in the case of contract between the district and the United States. (Laws 1917, Chap. 357, page 752; Laws 1919, Chap. 147, page 205.) Directors and Officers Not to Be Interested in Contract ; Penalty. Section 17. No director or any other officer named in this act shall in any manner be interested, directly or indirectly, in any contract awarded or to be awarded by the board, or in the profits to be derived therefrom ; and for any violation of this provision such officer shall be deemed guilty of a misdemeanor, and such conviction shall work a forfeiture of his office, and he shall be pxinished by a fine not exceeding $500.00, or by imprisonment in the county jail not exceeding six months, or by both such fine and imprisonment. (Laws 1917, Chap. 357, page 752.) District May Contract With the United States. Section 18. For the purpose of acquiring control over government land within the district and of complying with the provisions of the act of congress, entitled "An act to promote reclamation of arid lands," approved August 11, 1916, the board shall have authority to make such mvestigatiohs, and based thereon, such representations and assurances to the secretary of the interior as may be requisite ; and said board may enter into any obligation or contract with the United States for the construction, operation and maintenance of the necessary works for the delivery and distribution of water therefrom under the provisions of the federal recla- mation act and all acts amendatory thereof or supplementary thereto and the rules and regulations established thereunder, and may contract for the refusal of water service to any lands which are in default in the payment of any assessment levied to carry out any contract between the district and the United States, or for the assumption, as principal or guarantor, of indebtedness to the United States on account of district lands; or t &£. board may contract with th e TTTiifPfl ptates for a wator supply or drainage w orks und er any act of congress pr o viding for or permitting .s"uch"''cMiI)Sct. and in casj^ contra nf,b asL-h een or ms^y horogftor 5S-S.?<^.l^iSL^.§..2S|?5 ^*^*^f as herein provi ded, bonds of tliejiigtrict_ ™Ay- be 'dep"osited" wiSr"~tlie Tfni^J"Stetes, at, ninetx per cent of their par value, to* the amount to be paid by the district 'toltbe Jn^tgJI'^t^ ' under any such cohfracl, the interest on said bonds^jf bearhig' interest," to be provided for by as^ssment and, levy. ag. in, the case of other bonds IRRIGATION DISTRICT LAWS 11 of the district, and regularly paid to the United States to be applied as provided in such contract, and if the bonds of the district are not so deposited it shaU be the duty of the board of directors to include as part of any levy or assessment provided for in this act, an amount sufficient to meet each year all payments accruing under the terms of any such contract ; and the board may accept, on behalf of the district, appointment of the district as fiscal agent of the United States, or authorization of the district by the United States to make coUections of money for or on behalf of the JJnited States in connection with any federal reclamation project, whereupon the district shall be authorized to so act and to assume the duties and liabilities incident to such action, and the said board shall have full power to do any and all things required by the federal statutes now or hereafter enacted in connection therewith, and all things required by the rules and regulations now or that may hereafter be established by any department of the federal government in regard thereto. Any property acquired by the district may be conveyed to the United States insofar as the same may be needed by the United States for the construction, operation, and maintenance of works for the benefit of the district under any contract that may be entered iato with the United States pursuant to this act. (Laws 1917, Chap. 357, page 753.) Election for Braids and Contract With United States. Section 19. Upon order of the directors duly entered an election shall be held to determine whether bonds in any amount the board may deem necessary shaU be issued for any purpose necessary or convenient in carrying out the provisions of this act, including the refunding of out- standing bonds, or whether the right to enter into an obligation or contract with the United States shall be authorized. Notice of such election must be given by posting notices in three public places in each election precinct in said district for at least fifteen days prior to the election, and also by publication of such notice in some newspaper published in the county where the office of the board of directors is kept, once a week for at least four successive weeks prior to the election. Such notices must specify the time of holding the election and the amount of bonds proposed to be issued ; or where contract is to be made with the United States and bonds are not to be deposited the maximum amount of money payable to the United States for construction purposes, or in the assumption of liability for district lands for such purposes, exclusive of penalties and interest. Said election must be held and the result thereof determined and declared in all respects as nearly as practicable in conformity with the provisions of this act governing the election of officers; provided, that no informali- ties in conducting such election shall invalidate the same, if the election shall have been otherwise fairly conducted. At such election the ballots shall contain the words "Bonds — ^Tes" and "Bonds — ^No," or "Contract with the United States — Yes" and "Contract with the United States — No," or other words equivalent thereto. If a majority of the votes cast are "Bonds — ^Tes," the board of directors shall cause bonds in said amount to be issued, or such portion thereof as may be necessary from time to time. If a majority of the votes case are "Contract with the United States — Yes," the board, acting in pursuance of said election, may negotiate and execute a contract with the United States. If the majority of the votes east at any bond election are "Bonds — ^No," or "Contract with the 12 IRRIGATION DISTRICT LAWS United States — No," as the case may be, ttie result of such election shall be so declared and entered of record ; and whenever thereafter said board in its judgment deems it for the best interests of the district that the question of the issuance of bonds, or the question of contract with the United States, in said amount or any amount, shall be submitted to said electors, it shall so declare of record in its minutes, and may thereupon submit such questions to said electors in the same manner with like effect as at such previous election. (Laws 1917, Chap. 357. page 754.) Issuance of Bonds. Section 20. The bonds issued shall be numbered consecutively, com- mencing with number one and following in numerical order. They shall mature serially in annual amounts so as to be approximately equal, prin:^ cipal and interest; in not less than five years nor more than forty years after the date of Issue, as the board of directors may determine, or in case the board of directors deem it advisable to submit the question of maturities at the bond election, then as the electors may determine. They shall be negotiable in form and payable in gold coin of the United States of the present standard of weight and fineness or in its equivalent; provided, however, that bonds may be issued when so authorized by the electors so as to include a sum sufficient to pay the first four years' interest or less, to accrue on said bonds. The bonds shall bear interest at a rate of not to exceed six per centum (6%) per annum, payable semiannually on the first day of January and July of each year, and the principal and interest shall be payable at the places designated respectively In the bonds and coupons. Said bonds shall be each of the denomination of not less than one hundred dollars nor more than one thousand dollars, shall be signed by the president and secretary, the seal of the board of directors shall be affixed thereto and each bond shall bear on the back thereof the registration certificate of the county treasurer, who shall sign as county treasurer and as ex officio treasurer of the district. Coupons for interest shall be attached to each bond, and shall be signed: with the engraved facsimile signature of the secretary. The county treasurer, who is ex officio treasurer of the district, and the secretary of the district shall register the said bonds in books kept in their respective offices for that purpose, and therein must be stated the number, date, amount of bond, time and place of payment, rate of interest, number of coupons attached, and any other description proper for future identification of each bond ; provided, however, that this section shall not be construed to provide that any bond of the district shall bear a registration certificate by the secretary. The contract provisions for the payment of construction charges to the United States, and the bonds securing the payment of the same, if any be issued and deposited, may be of such denominations and may call for the payment of such interest not exceeding six i)er cent per annum, may provide for such instalments and for repayment of the principal at such times as may be required by the federal laws and as may be agreed upon between the board and the secretary of the interior. (Laws 1917, Chap 357, page 755.) Board May Sell Bonds; Procedure, and Notice. Section 21. The board may sell from time to time the bonds which have been authorized by the electors and in such quantities as may be IRRIGATIOX DISTRICT LAWS 13 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 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 directors is situated, if there be a newspaper published in said covmty, and in any other newspaper, at their discretion; the notice shall state that sealed proposals will be received by the board at their office for the purchase of the bonds till the day and hour named in the resolution. At the time appointed, the board shall open the proposals and may reject any or all bids; and after offering said bonds for sale, as above provided, if no satisfactory bid is received 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 value thereof.; and nothing in this act shall inhibit said district from providing for the irrigation or drainage, or either alone in units or portions from time to time; provided further, that the board may by resolution duly entered on its records cancel any bonds which may have been voted or issued which have not been sold or deposited as security for funds advanced or to be advanced and against which the state, United States, or any other person, firm or corporation shall have no claim to or equity in, and after the cancelation of said bonds the same shall not be sold or otherwise disposed of and shall be invalid and of no effect, and the board shall have no authority to replace such canceled bonds without authorization of the electors. (Laws 1917, Chap. 357. page 756.) Bonds; How Paid; Character of the Obligatimi. Section 22. Said bonds and the interest thereon and aU payments due or to become due to the United States under any contract between the district and the United States, accompanying which bonds of the district have not been deposited with the United States as provided in this act, and all obligations for the payment of money authorized and incurred under this act, shall be paid by the revenue derived from the annual assessments upon the land in the district, and aU the lands in the district shall be and remain liable to be assessed for such payments as herein provided, and under and subject to the provisions of this act. In case the amount assessed against any tract of land shall not be paid the next assessment against the land in the district shall be so increased as to take care of such default In addition to the provision for the payment of said bonds and interest by taxation and other provisions of this act, all the property of the district, including irrigation and other works, shall be liable for the indebtedness of the district, and the holder of the bonds or the United States, in case contract has been executed by the United States, may, in case of default in the payment of interest or principal on the bonds, or the amount due on the contract, upon the order of the circuit court, take possession of the irrigation and other works of the district and operate the same until the amount in default shall have been fuUy paid. Any assessment upon land shall be a lien against the property assessed, and such lien for all payments due or to become due under any contract 14 IRRIGATION DISTRICT LAWS with the United States or for the payment of principal or interest of bonds deposited with the United States shall be a preferred lien to any assess- ments for bonds Issued subsequent to the date of such contract or the Issuance of said bonds deposited with the United States, and no district assessment lien shall be removed until the assessments are paid with interest and penalties or the property sold for the payment thereof. The district shall appear as a bidder at the sale of any lands for delinquent district or other taxes and may purchase and take title to said lands and dispose of the same like any other purchaser. To protect its assessments, the district, at a tax sale where there is no other bid for the full amount of the delinquencies, including interest and penalties, shall bid and buy in the land ; provided, the district shall never bid or pay a greater sum than the total of all taxes against the land with interest and penalties ; and provided further, when purchasing any land at a tax sale, the district shall pay cash for all taxes, Interest and penalties including the district taxes, like other purchasers and such expenditures shall be deemed operating ei^penses of the district and may be assessed as maintenance charges (Laws 1917, Chap. 357, page 756.) Payment of Coupons; Redemption of Bonds. Section 23. The treasurer shall keep a "Bond Fund" account or a "United States contract fund" account, or a "Bond and United States contract fund" account, as the case may be, into which shall be covered all moneys arising from the sale of refunding bonds and assessment and levy until there is sufficient money in such fund to meet the next instalment of principal and interest upon bonds of the district and to meet all payments for construction and all other purposes to the United States. From said fund he shall pay moneys due as principal and interest on bonds as they shall mature and the bonds and coupons be presented and as payments to the United States shall fall due. M,oneys received from the sale of bonds and otherwise for construction or acquisi- tion of works by the district shall be covered into a "Construction- Fvmd." All other moneys received by the district shall be covered into a fund to be known as the "General Fund," from which shall be defrayed all obli- gations of the district other than those tn this section above described. The bond and the United States contract funds shall be devoted to the obligations of the district payable from said fund in the order of the priority of the creation of the obligations. Whenever, after ten years from the issuance of bonds, said fund shall amount to the sum of $10,000.00, the board of directors may direct the treasurer to pay such an amount of said bonds not due as the money in said 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 direc- tors 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 counties 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 IRRIGATION DISTRICT LAWS 15 so to be retired, with the price to be paid therefor, and the date and place where 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 a"fter funds are available as hereinbefore provided. (Laws 1917, Chap. 357, page 757.) Assessments^ Section 24. The board of directors shall, on or before the first Tuesday in September of each year, make a computation of the whole amount of money necessary to be raised by said district for the ensuing year, for any and all purposes whatsoever in carrying out the provisions of this act including estimated delinquencies' on assessments. 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 to the lands owned or held by each person, firm, or corporation, so that each acre of irrigable land in the district shall be assessed and required to pay the same amount as every other acre of irigable land therein except as hereinafter otherwise provided. The board of directors shall determine the number of irrigable acres owned by each landowner in the district and the proportionate assessments as herein provided for as nearly as may be from available information, and should it be found that a substantial error has been made in such determination, proper adjustment may be made at the next equalization of the annual assessment by increasing or decreasing the amount any land- owner shall pay. Until such time as the water rights appurtenant to any tract of land within an irrigation district shall be acquired by the district the assessments against such land, except for operation, maintenance and drainage, shall be in the same proportion to a full assessment as the addi- tional water right to be supplied to such tract bears to a full water right, and for operation, maintenance and drainage, each irrigable acre in the district shall be assessed the same as every other irrigable acre, except as hereinafter provided ; provided, that in fixing the proportionate part of the cost of the reclamation that each owner of land shall pay, the amount to be paid to any of such owners for easements, rights of way, water rights, or other property or rights required by the district, may be deducted from the amount that the owners of such property or rights would otherwise be required to pay, and assessments for the payment of the i-ost of suc-h reclamation and interest thereon may be made accordingly. Property and rights so acquired shall not be vested in the district until bonds have been disposed of or means otherwise provided for the reclamation of the land in the district ; provided further, that the board may before the completion of the project so adjust the assessment that the land to which the district delivered water or could on demand have delivered water, during the preceding irrigation season, shall in addition to their pro rata share of the remainder of the assessment, pay for the operation and maintenance of the constructed or partially constructed works through which such lands receive water; provided, however, that where contract has been made with the United States in addition to the amount hereinbefore determined and apportioned, the board of directors' shall also fix the amount payable by each tract within such district and the amount so fixed shall be in 16 IRRIGATION DISTRICT LAWS accordance with the federal reclamation laws and the public notices, orders and regulations issued thereunder, and shall be in compliance with any contract made by the United States with the owners of said lands and in compliance further with the contracts between the district and the United States, and in case of such contract lands having appurte- nant thereto a partial water right or partial rights in a system of irriga- tion, or irrigation and drainage, the amounts payable shall be according to the benefits, making due allowances for existing rights and the amounts so determined, fixed and apportioned shall constitute an assessment upon the lands of the district. ■ The board shall prepare a list or record of said assessments and apportionments in duplicate, giving the description of the ownership or holdings of each person, firm or corporation therein assessed or apportioned, one of which shall be a permanent record in the office of said board. Any irregularity or error in the description shall not be deemed jurisdictional or render the assessment void, if the land assessed can be identified and the assessment and apportionment made by the board of directors as in this act provided, is prima facie evidence that all of the requirements of the law, in relation thereto have been complied with and that the same are liens against the property to the same extent as other taxes lawfully levied. (Laws 1917, Chap. 357, page 758.) Assessment by Units. Section 3. The plan of reclamation of any irrigation district may pro- vide for the reclamation of the lands therein in units and the assessments against the lands in such district may be apportioned by the board of directors to the lands owned or held by each person, firm, or corporation, so that the lands in each unit shall pay the cost of reclaiming the same, and within such units assessments shall be apportioned pursuant to the provisions of Section 24 of Chapter 357 of the General Laws of Oregon for 1917, and land noncontiguous to an irrigation district may be included in such district as a unit thereof at the time of the organization of the district or subsequent thereto. Prior to the qpmpletion of the works for the reclamation of any units the lands therein may be assessed as appears equitable to the board of directors subject to the rights of landowners in the district to have said assessments adjusted by the board of equalization and to appeal therefrom ; provided, that all lands, whether irrigated or not, shall be subject to assessment for the payment of any obligation of the district ; and provided further, that no plan of reclamation or assessments by units shall be adopted by any irrigation district until after such plan has been approved by the state engineer. (Laws 1919, Chap. 146, page 204. ( Notice of Meeting of Board of Equalization. Section 25. On or before the first Tuesday in September of each year the secretary of the board shall give notice of the time the board of directors, acting as a board of equalization, will meet for the purpose of reviewing and correcting its assessment and apportionment of taxes, as in this act provided, by publishing the same in a newspaper published in each of the counties in which the district is situated. The time when the board shall meet for said purpose shall be the first Tuesday of October following, and in the meantime the assessment list and record shall remain in the office of the secretary of the board, for the inspection of all persons interested, and all persons shall be presumed to have notice of the time of IRRIGATION DISTRICT LAWS IT such meeting, whether he receive actual notice or not. (Laws 1917. Chap. 357, page 760.) Equalization Board; Hearing of Objection. Section 26. On the first Tuesday of October of each year the board of directors, which is hereby constituted a board of equalization for that purpose, shall meet and continue in session from day to day, as long as may be necessary, to hear and determine any objections by any interested persons to the assessments and apportionment thereof and any other mat- ters connected therewith that may come before them, and the board shall change its assessment and the apportionment thereof and the list and the record of the same as to irrigable acreage, description, etc., in any respect and in such manner as may be necessary to make the same just and in accordance with the facts. The secretary of the board shall be present during these sessions, and shall note all changes made in such assessment, apportionments, lists, and record, and in the names of the persons whose property is listed. (Laws 1917, Chap. 357, page 760.) Levy of Assessment, and Collection. Section 27. After the board of directors shall have completed its equali- zation of said assessment, it shall certify one of the copies or duplicates thereof, made by it during that year, to the county assessor of each county in which district lands lie. The county assessor shall enter the apportion- ment so made, upon the county assessment roll, against the property therein respectively described, in the same manner that other municipal assess- ments are entered by him on said assessment roll, except that the total sum apportioned to and charged against each description of land therein contained shall be entered by the assessor as the irrigation district tax against the same. Such tax shall be collected and accounted for in the same manner as other municipal taxes and the collection thereof enforced in the same manner as the other taxes of the county. Any land, the title to which may now or hereafter be vested in the state, including lands segregated under the Carey Act or state lands sold under contract, in any irrigation district, shall be subject to taxation by the district, and the fuU amount of assessments due against said lands shall be paid to the district before the same is sold, resold, or contract for sale fexecuted. And the public lands of the United States within said district, whether entered or unentered, shall be subject to taxation under the aforesaid act of congress of August 11, 1916. In case of neglect or refusal of the board of directors 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 directors 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 directors is required to make the same, and all expenses incident thereto shall be borne by such district, and such levy and assessment shall be entered on the county tax roU by the county assessor in the manner in this section provided. (Laws 1917, Chap. 357, page 761.) Oaims; Whm and How Paid; Treasurer to R^M>rt. Section 28. Claims against the district shaU be submitted to the board upon vouchers and upon order of the board such vouchers shall be approved 1S_ IRRIGATION DISTRICT LAWS by the president and secretary of the board and shall then be filed with the county clerk, who shall draw warrants in payment thereof. The county treasurer shall pay such warrants if there be funds available for that purpose, and if no funds are available for such purpose, the county treas- urer shall so indorse the warrants and from the date of such indorsement such warrants shall bear interest at the rate of not to exceed seven per cent per annum until paid or until notice shall have been given that funds are available for the payment of outstanding warrants or any such war- rants. Such warrants shall be drawn in payment of any debt, liability or obligation incurred in carrying out the provisions of this act, except such payments as may be made by irrigation district bonds. The total amount of outstanding warrants for the payment of which there are no funds available shall not exceed one dollar per acre for each and every acre in the district. The county treasurer shall report to the board, in writing, on the first Tuesday in each month, the amount of money in the several funds of the district, the amount of receipts for the months preceding, and the amount of items of expenditures, and said report shall be verified and filed with the secretary of the board. (Laws 1917, Chap. 357, page 761.) Qualification of Voters. Section 29. The term "owner of land," or "elector," as used in this act, shall Include every person, male or female, over the age of twenty-one years, whether a resident of the district or state or not, who is a bona fide owner of one acre or more of land situate within the district and whose name appears on the last assessment roll, or who is the holder of an uncompleted title or contract to purchase state or Carey Act lands. Entrymen upon public lands of the United States shall be considered as landowners for the purpose of this act, and shall be qualified petitioners for the organization of an irrigation district, and shall share all the privileges and obligations of landowners within the district, including the right to vote or hold office, subject to the terms of the act of congress entitled "An act to promote reclamation of arid lands," approved August 11, 1916. Any corporation shall be entitled to vote as a single landowner through any officer or agent duly authorized in writing under the seal of the corporation. Any guardian, administrator or executor authorized to act as such of a person or estate owning land within the district shall be considered a landowner for the purposes of this act, where the owner in fee Is not otherwise entitled to vote. (Laws 1917, Chap. 357, page 762.) Contest of Election. Section 30. Any election, held under the provisions of this act, may be contested by any person owning property within the proposed district liable to assessment. The directors of the district, or in case the election for the organization of the district shall have failed, the county court, shall- be made parties defendant Such contest shall be brought in the circuit court of the county where the petition for organization is filed; provided, that if more than one contest be pending they shall be con- solidated and tried together. The court having jurisdiction shall speedily try such contest, and determine, upon the hearing, whether the election IRRIGATION DISTRICT LAWS 19 was fairly conducted and In substantial compliance with the requirements of this act, and enter its judgment accordingly. Such contest must be brought within sixty days after the canvass of the vote and declaration of the result. The right of appeal is hereby given to either party to the record within thirty days after the entry of judgment This appeal must speedily be heard and determined by the supreme court, and after the expiration of said period of sixty days, no action or suit shall be com- menced or maintained or defense made affecting the validity of any election held under the provisions of this act. (Laws 1917, Chap. 357, page 762.) Eminent Domain. Section 31. This board and its agents and employes shall have the right to enter upon any land to make surveys, and may locate the necessary irrigation or drainage works and the line for any canal or canals, and the necessary branches for the same, on any lands which may be deemed best for such location. Said board shall also have the right to acquire, either by lease, purchase, condemnation, or other legal means, aU lands and waters and water rights, rights of way, easements, and other property, including canals and works and the whole of irrigation systems or projects constructed or being constructed by private owners, necessary for the construction, use, supply, maintenance, repair and im- provement of any canal or canals and works proposed to be constructed by said board, and shall also have the right to so acquire lands, and all necessary appurtenances for reservoirs and the right to store water in constructed reservoirs, for the storage of needful waters, or for any other purposes reasonably necessary for the purposes of said 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 irrigation or any other purpose. The right of way is hereby given, dedicated and set apart, to locate, construct, and maintain said works over and through any of the lands which are now or may be the property of this state. In the acquisition of property or rights by condemnation, the board shall proceed in the name of the district under the provisions of the laws of the state of Oregon. The use of all water required for the irrigation of the lands ot any district formed under the provisions of this act, together with aU -water rights and rights to appropriate water, rights of way for canals and ditches, sites for reservoirs, and all other property required in fully carrying out the provisions of this act. is hereby declared to be a public use more necessary and more beneficial than any other use, either public or private, to which said water, water rights, rights to appropriate water, lands or other property have been or may be appropriated within said district. The legal title to all property acquired under the provisions of this act shall immediately and by operation of law vest in such Irrigation district, and shall be held by such district in trust for and is hereby dedicated and set apart to the uses and purposes set forth in this act; and said board is hereby authorized and empowered to hold, use, acquire, manage, occupy, possess, and dispose of said property as herein provided. (Laws 1917, Chap. 357, page 763; Laws 1919, Chap. 267, page 443.) 20 IRRIGATION DISTRICT LAWS District May Dispose of Lands. Section 1. Whenever any drainage or irrigation district lieretofore or liereafter created sliall liave 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, 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, Chap. 138, page 193.) Two or Mor« Districts May Join. Section 32. Two or more irrigation districts organized under the laws of this state or of any adjoining states may unite in the purchase, acquisition or construction of an irrigation system of works for the irrigation of the land within said respective irrigation districts; and in such case, said irrigation districts are hereby jontly granted the same power of condemnation as Is now possessed by one district alone; and in such case the cost of purchase, acquisition or construction of such irrigation system shall be apportioned to each district in proportion to the acreage in each district for which water shall be provided and that such joint works shall be owned jointly in proportion to such respective acreage. (Laws 1917, Chap. 857, page 764.) Sale of Water and Power Outside District; and Disposal of Water. Section 33. An irrigation district may provide for and furnish water for lands not included within such irrigation district and also lands within said district but not subject to assessment thereby, upon receiving propej- compensation therefor, and said district may dispose of and furnish electric power in or out of said district upon receiving proper compensation therefor ; provided, that any district furnishing electric power outside of said district shall be deemed a public utility within the meaning of chapter 279 of the general laws of Oregon for the year 1911, as to electric power so furnished outside of said district. An irrigation district may acquire, assume or exercise any rights, property, powers or obligations of a contractor with the State under the Carey Act and may be organized in lieu of a water-users' association required either by statute or contract. (Laws 1917, Chap. 357, page 764.) District May Contract With Federal Government for Development of Lands. Section 1. Any irrigation district organized pursuant to the laws of the state of Oregon may turn over to the federal government, or any agency thereof, any lands owned or controlled by said district for the purpose of having the same developed and colonized by said federal government, or any agency thereof, and may levy assessments for the repayment to the federal government, or any agency thereof, the sum expended in the development of such lands, with the interest thereon not to exceed six per cent per annum, and may pay such moneys over to the federal government, or any agency thereof, as the same is collected. Said districts may also assess such lands to cover repayment to the district of the cost, with interest thereon not to exceed six per cent per IRRIGATION DISTRICT LAWS 21 annum, and shall deposit the same in the "bond fund" account, or the "United States contract fund" account, or the "Bond and United States contract fund" account, as the case may be, and said assessments shall be in addition to the assessments which may be levied to meet the reclamation charges, interest thereon and maintenance. Irrigation dis- tricts may enter into such contracts and assume such obligations with the federal government, or any agency thereof, as may be necessary, expedient or desirable to bring about the development of the lands in said irrigation district by the federal government or any agency thereof. (Laws 1919, Chap. 146, page 203.) District May Accept Title to Lands in District. Section 2. In order to make the lands available for development by the federal government, or any agency thereof, as provided in the preceding section, any irrigation district may accept from any land owner within said district, title to any part of the land of such land owner and allow him credit to the extent of the reasonable value thereof on the reclamation charge against the remainder of his land, provided that no credit shall be allowed so as to entirely extinguish the reclamation charge against any land in the district nor shall any land be accepted by the district or credit allowed until a contract shall have been executed by the district and the federal government, or some agency thereof, for the development of said lands. (Laws 1919, Chap. 146, page 204.) Statute Applicable to Drainage. Section 34. Any irrigation district heretofore organized or hereafter to be organized may, whenever it appears necessary, proper or beneficial to drain any of the lands within said district, whether for the benefit of the lands actually requiring drainage, or for the protection of other lands within said district, whether the irrigation works have been actually acquired or constructed, or not, cause drainage canals and works to be constructed, 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 irrigation, and all powers in this act conferred upon irrigation districts with respect to irrigation shall be construed to include drainage; provided, however, any bonds issued solely for drainage purposes shall be known as "Drainage Bonds of Irrigation District." (Laws 1917, Chap. 357, page 765.) Change of Boundarj' Not to Affect Organization. Section 35. The boundaries of any irrigation district organized under the provisions of this act may be changed in the manner herein prescribed ; but such change of the boundaries of the district shall not impair nor affect its organization, or its right in or to property, or any of the rights or privileges of whatever kind or nature, nor shall it affect, impair or discharge any contract, obligation, lien or charge for or upon which it was liable or chargeable had such change of its boundaries not been made; provided, that in case contract has been made between the district and the United States as herein provided, no change shall be made in the boundaries of the district, and the board of directors shall make no order changing the boundaries of the district unless the secretary of the interior shall assent thereto In writing and such assent shall be 22 IRRIGATION DISTRICT LiAWS filed with the board of directors. Upon such assent any lands excluded from the district shall be discharged from all liens in favor of the United States under contract with the United States or under bonds deposited with its agents. (Laws 1917, Chap. 357, page 765.) Inclusion of Lands; Petition For. Section 36. The holder or holders of title, or evidence of title, representing a majority of the acreage. of any body of land adjacent to the boundaries of any irrigation district, may file with the board of directors of said district a petition in writing, praying that such lands be included in such district. The petition shall describe the ti;acts, or body of land owned by the petitioner in manner and form as prescribed in this act for original petitions for the formation of an irrigation district. Such petition shall be deemed to give assent of the petitioners to the inclusion in said district of the lands described in the petition, and such petition must be acknowledged in the same manner that conveyances of land are required to be acknowledged. (a) The secretary of the board of directors shall cause notice of the filing of such petition to be given and published once each week for three successive weeks, in a newspaper published in the county where the office of said board is situated, which notice shall state the filing of such petition and the names of the petitioners, a description of the lands mentioned in said petition and the prayer of said petitioners ; giving notice to all persons interested to appear at the office of said board at a time named in said notice, and show cause, if any they have, why the petition should not be granted. The time specified in the notice at which it shall be required to show cause shall be the regular meeting of the board next after the expiration of the time for the publication of the notice. The petitioner or petitioners shall advance to the secretary sufficient money to pay the estimated cost of all proceedings under such petition before the secretary shall be required to give notice. (b) The board of directors, at the time and place mentioned in said notice, or at ^such time or times to which the hearing of said petition may adjourn, shall proceed to hear the petition and all objections thereto presented in writing by any person, showing cause, as aforesaid, why said petition should not be granted. The failure of any person interested to show cause, as aforesaid, shall be deemed and taken as an assent on his part to the inclusion of such land in said district as prayed for in said petition. (c) The board of directors, to whom such petition is presented, may require as a condition precedent to the granting of the same, that the petitioners shall severally pay, contract to pay or become liable for, under bond issue or other form of indebtedness incurred or that may be incurred by the district, to such district such respective sums, as nearly as the same can be estimated by the board, as said petitioners or their grantors would have been required to pay to such district as assessments for the payment of its pro rata share of all bonds and the interest thereon which may have previously thereto been issued by said district had such lands been included in said district at the time the same was originally formed or when said bonds were so issued. (d) The board or directors, if they deem it not for the best Interests of the district to include therein the lands mentioned in the petition. IRRIGATION DISTRICT LAWS shall by order reject the said petition, but if they deem it for the best interest of the district that said lands or any part thereof be included, the board may order that the district be so changed as to include therein the lands or any part thereof mentioned in the said jtetition. But said board of directors in making any such change in the boundaries of any such district shall not include therein the lands of any owner or owners objecting thereto without calling an election in the district proposed to be included, in which shall be submitted the questions of "Inclusion — Yes," and "Inclusion — No," which shall be conducted in the same manner as the election for the organization of an irrigation district is now conducted, the irrigation district having the same powers as now conferred upon the county court in respect thereto, and which election shall be decided by three-fifths of the vote cast The order shall describe the entire boundaries of the district with the lands so included, if the district boundaries be changed thereby, and for the purpose the board may cause a survey to be made of such portion of such boundaries as may be deemed necessary. (e) Upon the allowance of such petition and in case no protest has been filed with the board within thirty days after the entry of said order as aforesaid, a certified copy of the order of the board of directors making such change shall be filed for record in the office of the county recorder. of each county in which are situated any of the lands of the district, and the district by the change of the boundaries as aforesaid, had been included therein at the organization of the district; and said district as so changed and all lands therein shall be liable for all existing obligations and indebtedness of the organized district. From action on said protest an appeal may be taken in the same manner as is provided in case of proceedings affecting the organization of a district, and in the event said protest be not made within thirty days an [and] appeal taken to the circuit court from action on said protest within thirty days after final hearing, said orders of inclusion shall be deemed lawful and conclusive against aU persons whomsoever and thereafter shall not be in any manner questioned in any proceeding. (f) Upon the filing of the copies of the order as in the last preceding section mentioned, the secretary shaU record in the minutes of the board the petition aforesaid; and the said minutes, or a certified copy Oiereof, shall be admissable in evidence with the same effect as the petition. (g) In case of the inclusion of any land within any district by proceedings under this act the board of directors shall, at least thirty days prior to the next succeeding general election, make an order re- dividing such district into three divisions, as nearly equal in size as may be practicable, and one director shaU thereafter be elected from each division, or said directors may be elected from the district at large, as hereinbefore provided. (Laws 1917, Chap. 357, page 765.) Exclusion of Lands. Section 37. The boundaries of any irrigation district now organized or hereafter organized under the provisions of this act may be changed, and tracts of land which were included within the boundaries of such districts at or after its organization under the provisions of said act, may be excluded therefrom, in the manner herein prescribed, but neither such change of the boundaries of the district nor such exclusion of lands 24 IRRIGATION DISTRICT LAWS from the district shall impair or affect its organization, or its right in or to property, or any of its rights or privileges of whatever kind or nature; no/ shall it affect, impair, or discharge any contract, obligation, lien, or charge for or upon vehich said district was and may become liable or chargeable, had such change of its boundaries not been inade, or had not such land been excluded from the district. (a) The owner or owners in fee of one or more tracts of land or the holders of an uncompleted title to government or state lands which constitute a portion of an irrigation district may jointly or severally file with the board of directors of the district a petition, praying that such tract or tracts, and any other tracts contiguous thereto, may be excluded and taken from said district. The petition shall state the grounds and reason upon which it is claimed that such lands be excluded and shall describe the boundaries thereof, and also the lands of such petitioner or petitioners which are included within such boundaries, but the description of such lands need not be more particular or certain than is required when the lands are entered in the assessment book by the county assessor. (b) The secretary of the board of directors shall cause a notice of the filing of such petition to be published once a week for at least two weeks in some newspaper published in the county where the office of the board of directors is situated, and if any portion of such territory to be excluded lie[s] within another county or counties, then said n Section 2. Said proceedings shaU 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 aU 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 newspai)er 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 by 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 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, Chap. 390, page 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 jserformance 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 30 IRRIGATION DISTRICT LAWS 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, Chap. 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, without 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 iirigation, the probable amount of water needed for its irrigation and the probable need of drainage. (c) The feasibility of the district's irrigation system and of the specific project for which the bonds under consideration are desired or have been used, whether such system and project be constructed, projected or partially completed. (d) The reasonable market value of the water, water rights, canals, reservoirs, reservoir sites or other irrigation works owned by such dis- trict or to be acquired or constructed by it with the proceeds of any such bonds. (e) The reasonable market value of the land included within the boundaries 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 bonds authorized but not sold, exceeds 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 works owned IRRIGATION DISTRICT LAWS 31 or to be acquired or constructed with the proceeds of any of said bonds, by said district, as determined by paragraphs (d) and (e) of this section. (g) The numbers, date or dates of issue and denomination of the bonds. 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 covered contemplated bonds, the total amount which the district can issue without exceeding the limitation expressed in paragraph (f) of this section ; and the following in case the application is filed by a drainage district: (h) The nature of the sou as to its fertility and productiUty after drainage. (i) The feasibility of the plan of reclamation. (j) The reasonable market value of the works owned by such dis- trict or to be acquired or constructed by the proceeds of any such bonds. (k) The reasonable market value of the land included within the boundaries of the district. (1) Whether or not the aggregate amount of the bonds under con- sideration and any other outstanding bonds of said district, including bonds authorized but not sold, exceeds fifty per centum of the aggregate market value of the lands within said district and the reasonable market value of the works owned by such district or to be acquired or constructed by the proceeds of any such bonds as determined by paragraph (j) and (k) of this section. (m) The numbers, date or dates of issue and denomination of the bonds, if any, which the commission shall find are available for the purposes provided for in section 7 of this act and, if the investigation has covered contemplated bonds, the total amount of bonds which the district can issue without exceeding the limitation expressed in paragraph (1) of this section. Section 3. 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 shall be forwarded by the commission to the secretary of the district for which the investigation shaU have been made, and if said commission shall have found, as set out in said report, that the irrigation or drainage system of the district and the specific project for which the bonds under consideration are desired or have been issued, whether such project be constructed, projected or partially completed, are feasible 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 shaU 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 Umitatton stated in said report the commission shall 32 IRRIGATION DISTRICT LAWS 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 an irrigation or drainage district organized and existtog 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, municipal _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 attroney 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. 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 sec- retary 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 IRRIGATION DISTRICT LAWS 33 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 inviesti- 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 imder investigation. Section 7. All bonds certified in accordance with the terms of this act shall be legal investments for aU 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 munic- ipalities may by any law now or hereafter enacted be used as security for the x)erformance of any act, bonds of irrigation or drainage districts under the limitations in this act provided may be so iised, 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, Chap. 305. page 554.) Validity of Districts Previoiisly Organized. Section 49. Xothing in this act shall be so construed as to affect the validity of any district heretofore organized under the laws of this state, or its rights in or to property, or any of its rights or privileges of whatsoever kind or nature; but said districts are hereby made subject to the provisions of this act so far as applicable ; nor shaU it affect, impair or discharge any contract, obligation, lien, or charge for, or upon which it was or might become liable or chargeable had not this act been passed ; nor shall it affect the validity of any bonds which have been issued but not sold : nor shall it affect any action which may now be pending, but aU irrigation districts hereafter organized shall be organized imder the provisions of this act and not otherwisa And where districts have heretofore been organized, or bonds author- ized, issued or sold or any proceedings have been undertaken on the theory that under the laws as they then existed, assessments might be assessed, levied or collected as hereinabove provided, said organization, authoriza- tion, issuance or sale of bonds and any and all such proceedings are hereby validated, cured and confirmed, and said districts shall hereafter proceed and be governed as hereinabove provided and all bonds shall hereafter be issued in accordance with the provisions of this act. (Laws 1917, Chap. 357, page 780.) 34 IRRIGATION DISTRICT LAWS Completion of Tumalo Project; Desert Land Board May Contract With District. Section 1. "The desert land board" of the state of Oregon is hereby authorized and empowered to contract for the completion of the reclamation of lands in the Tumalo project or any part thereof, and to otherwise carry out the provisions of this act, with any irrigation district organized, pursuant to the laws of the state of Oregon, including the lands in said project or any part thereof, or with any other irrigation district or districts, or with the federal government, or with any person, firm or corporation. Section 2. The desert land board may with due regard to the interests of the state transfer all the right, title and interest of the state in and to the Columbia Southern project, now known as the Tumalo project, and all rights or franchises thereunto appertaining to any irrigation district or districts or to the federal government whenever it appears to the board that such transfer will be in the best interests of the project. Section 3. That in the sale of water and water rights and the entry upon the lands now remaining unsold in said project, honorably discharged soldiers and sailors, marines, Red Cross nurses in civil, Mexican, Spanish or Indian wars and the war with Germany, shall have a preferred right to the purchase and acquiring of the same for such period of time as may be designated by the desert land board. Section 4. The board is hereby authorized and empowered to increase the reclamation lien against the land not now sold in the Tumalo project as fixed in chapter 424 of the general laws of Oregon for 1917, if such increase is necessary or expedient in the completion of such project ; and it is authorized and empowered to reduce the amount due the state of Oregon on account of the construction of the Tumalo project by the amount expended by any such district or the federal government in completing the reclamation of the lands embraced within said project or any amount which may be expended in discharging the obligation of the state of Oregon incurred under and pursuant to chapter 275 of the laws of Oregon for 1915, or otherwise. (Laws 1919, Chap. 398, page 703.) The following are among the cases affecting the irrigation district law reported by the Oregon supreme court: Links V. Anderson, 86 Ore. 508 ; 168 Pac. 605, 1182. Herrett v. Warmsprlngs Irr. Disct., 86 Ore. 343 ; 168 Pac. 609. In re Grants Pass Irr. Disct, 87 Ore. 643. Little Walla Walla Irr. Disct. v. Preston, 46 Ore. 5 ; Pac. 982. Board of Directors Payette-Oregon Slope Irr. Disct. v. Peter- son, 64 Ore. 46 ; 128 Pac. 827 ; 129 Pac. 123. Gibbons v. Hood River Irr. Disct, 66 Ore. 208; 133 Pac. 772. Rathfon v. Payette-Oregon Slope Irr. Disct., 76 Ore. 606; 149 Pac. 1044. Board of Directors Payette-Oregon Slope Irr. Disct. v. Peter- son, 76 Ore. 630 ; 149 Pac. 1051. Cannon v. Hood River Irr. Disct., 154 Pac. 397 ; 79 Ore. 71. 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. Notwithstanding 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 the laws of the state of Oregon for 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 said 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, the 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. (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 specific 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 subdhfision (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 presserving the records mentioned in this section 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 advauce. 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. Section 8. Each "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 pi-eceding "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 inconsistent 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 delivered 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 oustanding 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. 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 incurred 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 ot 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 following 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.