Oregon Statutes 341.573 – Division of assets and liabilities
(1) When changes in district boundaries are made by the detachment of territory or an annexation of territory and another community college district is affected, the boards of the districts shall make an equitable division of the then existing assets and liabilities between the districts affected by such change and provide the manner of consummating the division.
Terms Used In Oregon Statutes 341.573
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Board: means the board of education of a community college district. See Oregon Statutes 341.005
- community college: means a public institution operated by a community college district for the purposes of providing courses of study limited to not more than two years' full-time attendance and designed to meet the needs of a geographical area by providing educational services, including but not limited to career and technical education programs or lower division collegiate programs. See Oregon Statutes 341.005
- Community college district: includes a community college service district. See Oregon Statutes 341.005
- district: means a district formed under this chapter to operate one or more community colleges or to secure educational services available at a community college. See Oregon Statutes 341.005
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Personal property: All property that is not real property.
- Principal county: means the county in which the chief administrative officer of the community college district maintains the administrative office. See Oregon Statutes 341.005
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(2) In case of failure to agree within 20 days from the time of such change, the matter shall be decided by a board of arbitrators. The board of arbitrators shall consist of one member appointed by each of the boards of the affected districts and an additional member appointed by the other appointees.
(3) In the event any such board fails to appoint an arbitrator within 30 days, the Higher Education Coordinating Commission shall appoint such arbitrator. In the event the arbitrators selected fail to appoint the additional arbitrator within 30 days after the appointment of the arbitrator last appointed, the commission shall notify the judge senior in service of the circuit court of the principal county. Within 10 days after receiving such notice, the judge shall appoint one additional arbitrator.
(4) Each member of the board of arbitrators shall be entitled to the sum of $100 per day for each day’s service, and necessary expenses, while serving in the official capacity of the member. Expenses thus incurred shall be equally apportioned among the districts concerned.
(5) A party to an arbitration under this section may seek confirmation, vacation, modification or correction of the arbitrator’s decision as provided in ORS § 36.700, 36.705 and 36.710. A court may vacate an award only if there is a basis to vacate the award described in ORS § 36.705 (1)(a) to (d). The court may modify or correct an award only for the grounds given in ORS § 36.710.
(6) Assets include all property and moneys belonging to the district at the time of division. Liabilities include all debts for which the respective districts in their corporate capacities are liable at the time of division. In determining the assets, property shall be estimated at its fair value. The assets and liabilities shall be divided between the districts in proportion to the last assessed value of the real and personal property. The district retaining the real property shall pay the other districts concerned such sums as are determined in accordance with the provisions of this section. All funds to be apportioned during the current fiscal year, after such division, shall be made in proportion to the number of persons in each district according to the latest federal census.
(7) This section does not apply to state aid distributed by the commission under ORS § 341.626.
(8) When changes in district boundaries arise by detaching a territory that will not be incorporated into an existing or new community college district:
(a) The existing district from which the territory is detached shall retain the rights to all assets belonging to the district at the time of the change in district boundaries; and
(b) Except as provided in ORS § 341.575, the existing district shall also retain responsibility for all liabilities of the district. [1971 c.513 § 85; 1979 c.772 § 22; 2003 c.598 § 40; 2013 c.747 § 67; 2021 c.53 § 3]