(1) This section establishes the procedure for determining the following questions:

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(a) Whether a district having a three-member board shall increase the number of members to five.

(b) Whether a district having a five-member board shall decrease the number of members to three.

(2) The question of increasing or decreasing the membership of the district board shall be determined at a regular district election. The district board shall order that the question be submitted to the electors when a petition is filed with the secretary of the board requesting that the electors of the district be permitted to vote on the question. The requirements for preparing, circulating and filing the petition shall be as provided for an initiative petition in ORS § 255.135 to 255.205. The board shall be increased to five members or decreased to three members if a majority of the votes cast on the question favors the increase or decrease. At an election to increase the membership, electors shall vote for candidates to fill the additional positions.

(3) Not later than the 40th day before the regular district election at which a question under this section will be submitted, the district elections authority shall notify the Secretary of State. If the electors favor the increase or decrease in board membership, not later than the 30th day after the election, the Secretary of State by rule shall allocate and stagger the terms of the board members under ORS § 266.335. [1957 c.57 § 7; 1983 c.350 § 115; 1985 c.808 § 75]