Section 550.360 - Dissolution of drainage or water control district or corporation; transfer of assets and liabilities to district; debt distribution plan; zone committee for continuity(1)(a) Notwithstanding any other provision of law, the urban flood safety and water quality district may, by resolution of the board of directors, dissolve any drainage district formed and operating under ORS chapter 547, any drainage district organized and operating under ORS 548.005 to 548.120 or any corporation incorporated for any of the purposes listed in ORS 554.020, that is operating entirely within the boundaries of the urban flood safety and water quality district.(b) The date of dissolution set forth in the resolution may not be later than 180 days following the date on which the board of directors adopts the dissolution resolution.(c) The dissolved district or corporation shall be considered annexed by and merged into the urban flood safety and water quality district.(2)(a) Upon the dissolution, the dissolved district or corporation shall transfer, and the urban flood safety and water quality district shall assume, the duties, contracts, assets and liabilities of the dissolved district or corporation and continue to furnish the services formerly provided by the district or corporation to the residents of, and owners of property in, the dissolved district or corporation.(b) Such assets include, without limitation, all interests in real property and tangible and intangible personal property, including water rights, uncollected taxes, assessments or other charges levied by the dissolved district or corporation.(c) Such liabilities include, without limitation, the obligation to defend, save harmless and indemnify the officers, agents and employees of the dissolved district or corporation against any tort claim or demand, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of duty as provided in ORS 30.260 to 30.300. (3) A dissolution under this section may be initiated only by resolution of the board of directors. The board of directors may not consider a dissolution resolution unless and until the urban flood safety and water quality district has provided for sufficient funding from one or more of the means set forth in ORS 550.300 to enable the urban flood safety and water quality district to assume and manage the duties, assets and liabilities of the dissolved district or corporation as of the date of dissolution. (4)(a) As soon as practicable after the date on which the board of directors adopts a dissolution resolution under this section, the board of directors and the governing bodies of the districts or corporations to be dissolved, or the designated representatives of the governing bodies, shall meet to negotiate a debt distribution plan. A debt distribution plan may provide for any distribution of indebtedness between the urban flood safety and water quality district and the district or corporation to be dissolved.(b) If the board of directors and the governing bodies do not agree on a debt distribution plan on or before the date of dissolution set forth in the resolution adopted under subsection (1) of this section, or if the territory of the district or corporation to be dissolved remains liable under the plan for any portion of the indebtedness outstanding at the time of the dissolution and transfer, the board of directors shall serve as the ex officio board of the dissolved district or corporation for the purpose of imposing and collecting charges or taxes in the territory until all indebtedness of the dissolved district or corporation, including interest, is paid in full.(c) The board of directors serving as the ex officio board of the dissolved district or corporation may not impose charges or fees on the territory in the dissolved district or corporation to the extent that the board of directors has received moneys from the dissolved district or corporation that may be used to pay all or part of the indebtedness.(d) Before a debt distribution plan may be finalized under this section, the urban flood safety and water quality district shall seek to obtain consent from all known holders of valid indebtedness owed by the district or corporation to be dissolved . If consent cannot be reached on or before the date of dissolution, the debt distribution plan shall provide for the payment of nonconsenting holders.(e) The territory within the boundaries of the district or corporation to be dissolved may not by reason of the dissolution and transfer be relieved of outstanding liabilities and indebtedness for which the district or corporation to be dissolved has previously entered into an agreement.(5) After paying and discharging all debts and obligations or obtaining consent from holders of valid indebtedness or releases from nonconsenting holders, in accordance with the debt distribution plan, the governing body of the district or corporation to be dissolved shall transfer to the urban flood safety and water quality district all assets of the district or corporation to be dissolved.(6) If requested by the district or corporation to be dissolved, or at the discretion of the board of directors, the board of directors may create a zone committee with members appointed by the chair of the district or corporation to be dissolved to provide for continuity and recommendations with respect to fees, rates and charges, and levels of support and operation, within the territory of the dissolved district or corporation.Amended by 2024 Ch. 49,§ 7, eff. 6/6/2024.Amended by 2022 Ch. 16, § 16, eff. 6/3/2022.