A.R.S. tit. 48 ch. 12 — Arizona Revised Statutes Title 48 Chapter 12 — Electrical Districts

48-1701. Powers and duties of district A. Districts created under this chapter shall be bodies corporate for the purposes specified in this chapter and such as reasonably may be implied. B. A district shall have perpetual succession and may: 1. Exercise the power of eminent domain under the constitution and general laws of the state relating to such proceedings. 2. Make contracts. 3. Sue and be sued in its corporate name. 4. Acquire and hold real and personal property which is needed or useful in the conduct of its business. 5. Adopt a seal. 6. Do all things reasonably useful and lawful in carrying out the purposes expressed or implied by this chapter. 48-1702. Petition for organization A. Petition for the formation of an electrical district for the purpose of providing power for use primarily for pumping water for irrigation shall be filed with the board of supervisors of the county in which the proposed district is located, or if parts of the proposed district are located in more than one county, the petition shall be filed with the board of supervisors of the county in which is located the larger part of the lands of the proposed district. B. The petition shall describe an area of land located in one or more counties, and shall accurately define the exterior boundaries of the parcel or parcels, or otherwise describe the lands to be included in the proposed district. The area of land to be organized need not be composed of contiguous tracts. The petition shall pray that the area of land described be organized into an electrical district under this chapter. The petition shall be signed by at least one third of the number of resident freeholders within the area proposed to be organized but no more than twenty-five subscribers to the petition shall be required in any event. C. No district shall be organized which includes any territory of a district already organized or in the process of organization. 48-1703. Security for costs upon filing petition The petitioners shall give such security or make such deposit as the board of supervisors requires conditioned upon payment of all costs if for any reason the district fails to complete its organization. 48-1704. Notice of hearing on petition; publication; continuance of hearing A. The board of supervisors with which the petition is filed, at the next regular or special meeting thereafter or at a special meeting called sooner for that purpose, shall fix a date for hearing the petition which shall be recorded in the minutes of the board. The place of hearing shall be at the office of the board of supervisors unless the board determines for convenience of the parties to hold the hearing elsewhere in the county. B. Notice of the hearing shall be ordered by the board of supervisors and signed by the chairman and shall be addressed to all owners of lands or interests in lands, and to all persons interested in or in any manner affected by organization of the proposed district. The notice shall state the time and place of hearing. It shall only be necessary to state generally, but clearly and fully, the objects of the hearing. C. The notice shall be published in at least one daily or weekly paper published in each county in which any part of the proposed district is located once a week for four consecutive weeks, and shall be posted in one public place in each township or part of township of each range or part of range, according to government survey, included in the proposed district. In addition, not less than three notices shall be posted in different public places in every county in which any part of the proposed district is located. The board of supervisors shall appoint a suitable person or persons to post the notices and cause newspaper publication of the notice as provided by this section. Proof of posting shall be by affidavit of the person or persons posting the notices and proof of publication shall be by affidavit of the publisher. Proof of posting and publication shall be filed with the board at or before the hearing. D. The hearing shall be held not less than ten days after publication is completed, and not less than thirty-one days after the date of posting notice. E. The board of supervisors before whom the hearing is held may for good and sufficient reason adjourn the hearing from time to time, but notice of adjournment need not be given, except that the day and hour to which adjournment is ordered shall be spread on the minutes or set forth in the resolution of the board. 48-1705. Determination whether district constitutes public use; call for organizational election A. At the hearing on the petition called by the board of supervisors, it shall first proceed to determine whether the operations as proposed will constitute a public use. The board shall for such purpose determine: 1. Whether the lands in the proposed district are arid lands. 2. Whether they are fertile and reclaimable. 3. Whether there is a supply of water which can be made efficiently available by the proposed power system. 4. Whether the development reasonably certain to result from the production of power is of such interest and benefit to the whole district as to impress it with a public use. B. It shall not be necessary to determine that an underground volume of water is unquestionably sufficient to irrigate all the lands in the proposed district. It is sufficient if the volume of water is enough to supply the area of the land within the proposed district as will make the results of the production of power a public use and benefit to the whole district, and reasonably certain to enable the system when in full operation to be self-supporting. C. In determining the question of the public use in the operations of the proposed district the board shall make its findings by considering all circumstances, facts and reasons bearing upon the question of the public character of the operations of the proposed district. If there are any questions arising from matters of common knowledge which are of such probative weight as to make a prima facie case, it shall not be necessary for the board to take evidence upon such question, and the board may take judicial knowledge thereof, but the board shall hear and consider all competent testimony or evidence offered with reference to the question. D. For the purpose of determining the public use of the operations of the proposed district, the board of supervisors is vested with discretionary power and its decision shall be binding upon all persons interested unless reversed on appeal as provided by this chapter. If the decision is modified or affirmed, it shall be binding as modified or affirmed. E. If the board of supervisors determines from the petition and proceedings held thereon that the operations of the proposed district will constitute a public use, the board shall call an organizational election for the purpose of submitting to the qualified electors of the district the question whether the lands described in the petition shall be organized into an electrical district. F. Nothing in this chapter shall be construed as declaring what is or what is not a public use, or as limiting the evidence or the scope of the investigation of the board of supervisors. 48-1706. Application for inclusion of additional lands prior to organization of district; condition precedent to application A. All persons who have not been included in the proposed district may appear before the board of supervisors as parties interested in and affected by the organization of the district and may request that their lands be included. If the land thus sought to be included in the district is patented or fee lands and the owners so petition, the lands thus proposed shall be included by the board if it can be done without materially increasing the cost of service. The board shall take into account the shape of the proposed parcel or parcels, whether service can equitably be rendered to users in the territory and all other circumstances having a bearing on the right of including such lands. B. No application for inclusion shall be considered unless the lands are all patented or held in fee, and all the owners join in the application, but with reference to parcels when less than all owners join in the application, the applications shall be made under the provisions of this chapter relating to inclusion of lands after the organization has been completed as requested in the original petition. 48-1707. Objections to inclusion in proposed district A. If the board decides to call an election, it shall proceed to hear all objections which have been made by owners or others interested therein to the inclusion of lands in the proposed district. B. Owners of lands proposed to be included in the district or any person interested therein, if they desire to be excluded therefrom or to be relieved in whole or in part from bearing the burdens of the district, shall file with the board of supervisors written statements of their objections, stating in an informal manner but giving full particulars of their reasons for requesting to be excluded or to be relieved from the burdens of the district. The objectors shall not be excluded unless it is shown that they will not be benefited by the operations of the district. The burden of proof shall be on the objectors to prove their rights as claimed in their statements of objections. 48-1708. Order of board defining boundaries of district; name of district; appointment of election commissioners A. When notice of the election has been given and the hearing held and concluded, the board of supervisors shall make its decision and findings and enter them in the minutes of the meeting. B. The board shall define the boundaries of the district as established in their findings, shall state clearly any modifications of the liability of land owners for the burdens of the district and shall determine and enter in its minutes the name of the district which shall be "Electrical district number ____________ of the county of ______________, state of Arizona." C. The board shall thereupon appoint three freeholders who are residents of the proposed district as a board of election commissioners which shall proceed to call and conduct the organization election. 48-1709. Appeal from order of board A. Any person aggrieved by the decision of the board of supervisors may appeal from the decision or any part thereof to the superior court in the county in which the hearing was held. All persons interested in or in any way affected by the decision of the board of supervisors whether or not the party has appeared before the board at the hearing may appeal from the board decision. B. The appeal shall be taken and perfected by service of notice thereof as provided by section 48-1710 within fifteen days from the day of the decision and not thereafter. 48-1710. Service of notice of appeal; record on appeal A. If an appeal is taken as provided by section 48-1709 by petitioners or interested freeholders from a refusal of the board of supervisors to call an organization election, the notice shall be signed by three petitioners or interested freeholders and served on the chairman of the board of supervisors. If the appeal is taken from the exclusion of lands from the district, the notice shall be signed by one or more petitioners or one or more interested property taxpayers resident of the district or taxpayers of the district, and shall be served on the chairman of the board of supervisors and upon all the owners of land and those interested in lands the exclusion of which is contested by the appeal. If the appeal is taken from the inclusion of lands within the district, the appeal shall be signed by all the objectors and shall be served on the chairman of the board of supervisors and upon any five of the petitioners. B. The party appealing shall pay in advance the cost thereof and make a written request to the clerk of the board of supervisors hearing the matter to transmit to the clerk of the superior court all papers filed in the controversy with the board of supervisors and a transcript of all the records of the board pertaining thereto, including all minutes and resolutions of the board. Upon request and payment of fees therefor, the clerk of the board shall transmit and file such records with the clerk of the court within five days. If the request is not made or if made and the fees therefor are not paid within fifteen days, the appeal shall be waived. C. Oral notice of appeal may be given at the time of the decision appealed from, which shall be entered in the minutes of the meeting of the board of supervisors, but the request for certification of the record and payment of the fees in advance shall be made within fifteen days after the decision or the appeal is deemed waived. D. Service of notice of appeal shall be made as service of summons is made in civil actions. 48-1711. Trial of appeal; bond; effect upon organization proceedings A. The appeal shall be heard de novo by the superior court. An appeal may be taken to the supreme court from the judgment of the superior court as provided by law and rules of the supreme court. B. The appeal shall be tried within thirty days after the decision of the board of supervisors, by the superior court, but the court may for good cause continue the trial for not more than sixty days. No continuance shall be granted unless appellant gives a good and sufficient bond conditioned to pay the cost of appeal if the decision of the board of supervisors is not reversed. The bond shall be in an amount and form prescribed by the court. C. No appeal from inclusion of lands within the district shall prohibit or delay the district in calling the organization election or prohibit the district and its officers from proceeding to carry out all the objects of the organization of the district except when the appeal from inclusion of lands affects more than one third of the area or acreage of the proposed district. D. During pendency of an appeal, all owners of lands affected by the appeal may vote under the same conditions as if their lands were included in the district and without prejudice to their rights on appeal. 48-1712. Nomination of candidates to board of directors; notice of election A. The board of election commissioners shall nominate nine persons, all of whom shall be resident freeholders of the district and qualified voters, as candidates for election as members of the board of directors of the district, if the district is approved at the organization election. B. The board of election commissioners shall then call an election and give not less than ten nor more than fifteen days notice thereof by posting a notice in one public place in each township or part of township of each range or part of range in the proposed district. In addition, not less than three notices shall be posted in different public places in each county in which any part of the district is located. C. The notice of election shall contain the names of candidates for directors, the day of the election, the hours during which the polls will be open, which shall be for not less than eight hours, and the place or places of voting. If more than one place of voting is provided, the election commissioners shall divide the proposed district into precincts and the notice of election shall define the precincts in a manner indicating to all electors their respective voting places. The notice shall contain a statement that, at the election, it will be decided by the electors whether a certain territory, giving the boundaries thereof or otherwise describing it, shall be organized as an electrical district under this chapter. D. Any five resident freeholders who are qualified electors may nominate two other candidates for election as board members by serving a written demand to that effect on the board of election commissioners at least five days before the election, and the names of such candidates shall appear on the ballot following those nominated by the commissioners. 48-1713. Qualifications of electors; acreage voting; definition A. Persons qualified to vote at an election held under this chapter, except as otherwise specially provided, shall be either: 1. The property taxpayers of the district who own real property in the district that is or may be beneficially served by the district and who possess the qualifications required of electors under the general election laws, except as to residency. 2. Representatives of property taxpayers of the district who own real property in the district that is or may be beneficially served by the district, who possess the qualifications prescribed by section 48-3043, subsections B, C and D. B. The bona fide owners of real property in the district that is or may be beneficially served by the district may petition the board of directors to adopt an acreage system of voting in the district. The petition must be dated and signed personally by the petitioners, representing the acreage in the district that each petitioner owns, and filed with the secretary of the board of directors. If the board determines that the petitioners own at least fifty-one per cent of the total acreage in the district that is or may be beneficially served by the district, the board may adopt a resolution changing the manner of voting in the district to an acreage system of voting. Thereafter, all district elections shall be held and conducted on the acreage system. Under an acreage system of voting: 1. Each bona fide owner of one or more acres of real property in the district that is or may be beneficially served by the district is an elector of the district and entitled to one vote for each acre of such land, but not more than one thousand two hundred eighty votes. 2. The board of directors may determine by resolution that each qualified elector of the district is entitled to the number of votes or fractional votes equal to the number of acres or fractional acres, rounded to the next one-tenth acre, owned by that owner, but not more than one thousand two hundred eighty votes. 3. If title to real property is held by more than one owner, each owner may vote the proportional fractional share according to the ownership interest in the property. 4. The district shall conduct elections substantially in the manner prescribed by chapter 19, article 5 of this title. C. For the purposes of this section, "ownership" includes: 1. Title to the property that is recorded at least ninety days before the election. 2. Bona fide contracts of purchase that are recorded at least ninety days before the date of the election and that give the purchaser possession of the property and responsibility for paying taxes and assessments on the property. 48-1714. Form of ballots A. The official ballot to be used at the organization election shall, as far as practicable, correspond to the official ballots as provided by the general election laws but shall in addition contain the matters set forth in subsection B of this section. B. The question of organization, stated in plain, understandable language, shall appear first on the ballot. Immediately following, or at one side, shall appear the word "yes" with a square at the immediate right thereof, and the word "no" with a square at the immediate right thereof, in which the elector may make the mark X indicating his vote on the question. Immediately below shall appear the admonition "vote for seven directors," following which shall appear all the nominated candidates in the manner provided by the general election laws. 48-1715. Returns; canvass by election commissioners A. The board of election commissioners shall appoint members of the election board and shall provide the board with official ballots and supplies, but the election shall be conducted substantially in compliance with the general election laws, and no departure from the proceedings required by this chapter shall affect the validity of the result unless it is shown that the intent of the electors was not fairly expressed. If an election is set aside, the board of election commissioners shall call and conduct another election. B. The election board shall count the votes and make returns to the board of election commissioners who shall on the fifth day after the election meet at the voting place most centrally located in the district, and at two o'clock in the afternoon shall canvass the returns and report the result within five days to the board of supervisors with whom the petition for organization of the district was filed. 48-1716. Examination of returns by board of supervisors; resolution of organization; recording At its first regular meeting or at a special meeting thereafter, the board of supervisors shall examine the returns of the board of election commissioners, and if the board of supervisors finds that a majority of the votes cast at the election was in favor of organizing the district, it shall make and spread such finding upon its minutes and by resolution declare the district duly organized. By a separate resolution the board of supervisors shall define the boundaries of the district, and the clerk of the board shall immediately file a certified copy of the resolution in the office of the county recorder. When such certificate is recorded, the district and its officers shall at once proceed with the business of the district, and carry out the purposes for which it was created. 48-1717. Terms of initially elected directors The board of directors of the district shall consist of seven members who shall be elected at the organizational election. The board of election commissioners shall by lot determine the terms each initially elected director shall serve in such manner that their terms are distributed over three years as equally as possible. 48-1718. Recording map of district Within six months after organization of the district, the board of directors shall prepare a map of the district and record it in the office of the county recorder of the county or counties in which the district is located. 48-1719. Consolidation of districts; election; adjustment of finances A. When two or more districts desire to consolidate, the boards of directors of the districts shall call elections, or at a general election, submit the question of consolidation to their respective districts. If the vote is favorable to consolidation in each district proposed to be consolidated, the consolidation shall be perfected as soon thereafter as practicable. In such case the boards of directors of the districts consolidated shall function as one board until the next annual election when there shall be elected a single board of directors with a number of members equal to the board consolidated which had the largest number of members. B. If there is any reasonable adjustment of finances or equities involved in the consolidation the adjustment shall be agreed upon by the respective boards of directors and the substance of the agreement shall be stated in the notice of consolidation election. 48-1720. Division of district; assignment of directors A. At any time the board of directors may divide a district into divisions not more in number than the number of members of the board, and thereafter members of the board shall be elected from the different divisions according to the jurisdiction of the retiring members. B. When a district is divided into separate divisions, the board shall assign by lot, or in some other equitable manner, the members then in office to different divisions, conforming as nearly as possible to the residence of the present members, and thereafter members shall be elected according to the division from which a member's term has expired. C. The division of the district into divisions shall be as equal as practical with respect to territory and population but in the division the board shall have exclusive discretion. A member to be qualified to hold the office of member of the board of directors shall thereafter be a qualified elector and freeholder of the division which he represents. 48-1721. Inclusion of additional lands after organization A. When a petition is presented to the board of directors of a district for the inclusion within such district of lands located outside the district, the proceedings and hearing shall be in all respects the same as in the organization of districts, except that the hearing shall be before the board of directors of the district to which application is made rather than before the board of supervisors of the county. Lands to be included need not be contiguous to the district but shall not be so far removed as to materially increase the cost of service rendered in the district. B. The petition for inclusion of lands in a district duly organized shall be signed by at least one-third of the resident freeholders within the territory sought to be included and the proposed inclusion shall be in a reasonably compact body and regular form. Such area shall be included in the district, if it can be done equitably, but if an unreasonably large portion of the land is unassessable for any reason or is in such condition that rendering service in the area will be an unjust burden on the district as organized, the petition may be denied. The board of directors hearing the petition may require of the area admitted equitable terms and conditions of admission. C. Appeal shall be allowed from the board decision in the same manner as in the organization of districts. 48-1722. Exclusion of lands or subdivision from district by petition; payment of expenses of publication of notice and of hearing A. The owners of lands may file with the board of directors of a district a petition for the purpose of excluding from the district their lands which cannot be beneficially served by the district. B. The petition shall describe the lands affected, shall state the action desired thereon and the reasons therefor, and shall be sworn to by the petitioners. C. A petition may be filed with the board of directors of a district for the purpose of excluding a subdivision from the district. The petition shall state the name and legal description of the subdivision, request exclusion of the subdivision from the district, be signed by at least fifty per cent of the homeowners or lot owners other than the subdivider or developer of such subdivision and state: 1. The area to be excluded from the district has been subdivided into building lots. 2. At least three hundred individuals reside in the subdivision. 3. The lands within the subdivision have not been beneficially served by the district at any time within five years immediately preceding the date of the petition. D. At the time of filing the petition there shall be paid to the treasurer of the district an amount sufficient to cover the estimated expenses of publishing notice and of the hearing. 48-1723. Notice of hearing on petition for exclusion of lands; hearing A. Upon the filing of the petition and payment of estimated expenses as provided by section 48-1722, the secretary of the board shall cause notice to be given and published once each week for three successive weeks in a newspaper published in the county in which the office of the district is located, giving notice of the filing of the petition, the names of the petitioners, a description of the lands, the request of the petitioners and the time and place of hearing the petition, and requiring any person objecting to allowance of the petition to file such objections in writing in the district office on or before the time fixed for hearing in the notice and appear at such time in support of the objections. B. At the time and place designated in the notice, or at such time or times to which the hearing is adjourned, the board of directors shall proceed to hear the petitions and all objections filed thereto in writing by interested persons. 48-1724. Entry and filing of order excluding lands or subdivision upon petition A. Upon the hearings, if the board of directors deems that the lands sought to be excluded cannot be beneficially served by the district, or finds that the lands within a subdivision sought to be excluded have not been beneficially served by the district within five years immediately preceding the date of the petition, it shall enter an order upon the records of the district recording the action taken. B. If an order is made for the exclusion of lands or of a subdivision a certified copy of the order shall be recorded in the office of the county recorder and filed with the board of supervisors of each of the counties in which portions of the district are located. The recording and filing of the order shall give full legal force and effect to the order, and proof of the facts stated in the order shall be made in the same manner and with like effect as proof is made of the original order establishing the district. 48-1725. Guardians, conservators, personal representatives or administrators as petitioners A guardian, conservator, personal representative or administrator of an estate who has qualified under the laws of this state and as such is entitled to possession of the lands belonging to the estate which he represents, and a person designated in writing by the board of directors of a corporation, may sign the petition provided by section 48-1721 or 48-1722. 48-1726. Appeal from final action of board on exclusion of lands; entry of final order of board A. Any person aggrieved by the final action of the board on a resolution of exclusion may file a written motion for reconsideration within ten days after adoption of the final resolution. Such person may appeal to the superior court of the county in which the lands are located within twenty days after consideration by the district board of the motion for reconsideration. The appeal shall consist of notice and a recital of the proceedings taken, the facts and matters involved, and the reasons why the appellant is aggrieved by the action of the board. B. The appeal shall be tried before the superior court of the county. The superior court shall have jurisdiction to hear, decide, adjudicate and make any and all necessary orders and judgments in the premises as in civil actions. There shall be no further appeal from the final judgment of the superior court. C. If a motion for reconsideration or an appeal is not taken within the time allowed, the final resolution shall be filed for record in the office of the county recorder and in the office of the board of supervisors and the county treasurer of each county in which the excluded lands are located. 48-1727. Effect of exclusion of lands on district property and organization; powers of board A. Upon exclusion of any lands, the board of directors may make such rearrangement or reapportionment of divisions within the district as the board deems advisable. B. No exclusion of lands shall impair or affect the district organization or its property or rights therein, or any other rights or privileges, nor shall it affect, impair or discharge any contract obligation, lien or charge for or upon which it was or might become liable or chargeable had the exclusion of land not been made. Lands excluded by an order of the board shall not be liable for district contracts, debts or obligations thereafter created; however, such excluded lands shall remain liable for all indebtedness incurred by the district while such excluded lands were included in the district. C. No omission or informality in the proceedings for exclusion of lands shall invalidate such proceedings if the substantial rights of the parties affected were recognized and the proceedings were fairly conducted. D. The board of directors may make any rules, regulations, resolutions and bylaws necessary in the proceedings. 48-1728. Limitation on subsequent formation of new district A. The board of supervisors of a county in which any portion of a proposed district is located shall not permit the organization of said district if it includes any portion of the lands of another district organized under this chapter, or of a territory served by a public service corporation, electric cooperative, agricultural improvement district or municipal corporation or allocated to a public service corporation, electric cooperative, agricultural improvement district or municipal corporation, either by a certificate of convenience and necessity or a territorial agreement which has been approved by the Arizona corporation commission, if said other district, public service corporation, electric cooperative, agricultural improvement district or municipal corporation is providing, or capable of providing, power to said lands or territory for use primarily for pumping water for irrigation. B. A district may nevertheless be organized if the other district, public service corporation, electric cooperative, agricultural improvement district or municipal corporation consents thereto by action duly taken by its governing body, or if said other district, public service corporation, electric cooperative, agricultural improvement district or municipal corporation is not capable of adequately providing power to said lands or territory for use primarily for pumping water for irrigation. 48-1741. Terms of directors; vacancies Directors elected to succeed the directors initially elected at the organizational election shall be elected for a term of three years. Directors shall hold office until their successors are elected and qualified. The board of directors may fill vacancies on the board, but appointees shall hold office only until their successors are elected and qualified. 48-1742. Annual election of directors; notice; qualifications of directors; voting place; expenses A. The annual election of directors shall be held on the second Saturday in January of each year. B. Ten days' notice of the election shall be given by posting notices in the manner provided by section 48-1704, and not less than three notices shall be posted in different public places in each county in which any part of the district is located. C. Persons qualified to hold the office of director or vote at an election shall possess all the qualifications required of electors under section 48-1713. D. The board of directors shall determine the place or places of voting, and if more than one place of voting is designated, the board shall divide the district into election precincts, which may be changed from time to time. When such precincts are changed within ninety days before any election, the notice of the next election shall contain an accurate description of the precincts as changed. E. The election expenses shall be paid by the district. 48-1743. Increase or reduction in number of members on board; election A. The board of directors may on its own initiative, or shall, if so requested by a petition signed by a number of qualified electors of the district equal to one third of the number of votes cast at the last preceding annual election, submit to the electors at any annual election the question of reducing or increasing the number of members of the board. If the number of directors on the board is reduced, the reduction shall be to five or three members, and if increased, the number shall remain an odd number, but in no case less than three or more than fifteen. B. When a change in the number of members of the board of directors is submitted, at the same election at which the question is submitted there shall be elected the maximum members necessary to comply with the proposed change in number, but those qualifying shall depend upon the result of the vote upon the proposition to change the number, and in such contingencies shall be decided by lot in some method devised by the holdover members of the board. 48-1744. Organization of board; officers; district office A. The board of directors of the district shall organize each year by electing from among its membership a chairman, a vice-chairman and a treasurer. The board shall elect a secretary who may or may not be a member of the board, but his duties shall be clerical only if not a member of the board and he shall not sign or attest checks, orders or legal papers of any kind. All instruments or papers requiring signatures shall be signed by the chairman of the board, or in case of his absence or inability to act, by the vice-chairman and attested by the secretary if a member, and if not then by any member of the board, but the board may authorize instruments or papers to be signed by any of the members in special cases. B. The board may establish an office for the transaction of business at any place in the district, or in any city or town in the county in which the organization proceedings were held. 48-1745. Bonds and oath of directors A. Each member of the board of directors shall execute to the district a bond conditioned upon the faithful performance of his duties, and that he account and deliver to the proper officers any money which comes into his possession. B. The bond shall be in the amount of one thousand dollars, shall be approved by the board of supervisors of the county in which the district was organized and shall be filed with the clerk of the board of directors. C. Upon subscribing to an oath of office prepared on the bond a member shall be fully qualified to act as a director in transacting the business of the district. 48-1746. Compensation of directors The compensation of members of the board of directors shall be determined by the board, but shall not exceed thirty dollars for each day or part of day devoted to the business of the district, and such mileage and expenses as the board, by resolution, authorizes. 48-1747. Administrative powers of board A. The board of directors shall manage and control the entire business of the district as expressed or implied by this chapter in the same manner and with the same powers as conferred by laws pertaining to similar districts. B. The board may employ necessary engineers, attorneys, agents and employees, prescribe their duties and compensation, promulgate rules to govern employees and promote the lawful ends and business of the district. C. The board shall adopt by-laws it deems expedient for governing its proceedings and for the conduct of the business of the district. D. This section shall be liberally construed for the purpose of accomplishing the objects of the district. 48-1748. Acquisition of tangible and intangible property; users in district dealing directly with suppliers A. The board of directors may acquire for the benefit of the district personal and real property, rights of way, within or without the district, franchises, patents, licenses, easements, privileges, exemptions, donations, contracts, leases of power or property, contracts or other useful property, right or thing whatever necessary or useful in the conduct of the business of the district. B. The district may, by original construction, lease or other method, hold, own or operate hydraulic, electric, gas or other generating agencies or plants, together with all other equipment, construction or necessary instrumentality, right or things deemed necessary or useful for the purpose of purchasing, leasing, generating or in any manner rendering the power service contemplated in organizing the district as provided or implied by this chapter, including the leasing or purchasing of power within or without the district and making it available for use in the district. C. The district may accomplish such purposes by purchase or lease for distribution to users or it may make any reasonable arrangement by which the users may procure power directly from the lessors or generators thereof. If such users deal directly with the persons supplying power, the board may levy and collect a reasonable surcharge for the district to cover operating expenses or other general expenses of the district, as defined in this chapter. 48-1749. Right to use public ways; nature of use A. Any district organized under this chapter shall have the use of and the right is expressly granted to it to use public highways, roads, streets and alleys, within or without the district, required to bring power into the district, and such use shall include building transmission lines and laying conduits, pipes or other construction necessary in conducting the business of the district. The use shall be under reasonable restrictions set forth by the board of supervisors of the county or governing body of the city or town in which the public ways are located. B. Should a controversy over the use arise, the dispute shall be submitted to and decided by the corporation commission, but the right granted in this section shall be preserved to the district with necessary limitations only. 48-1750. Providing power for domestic use Nothing in this chapter shall be construed as prohibiting a district organized under this chapter from furnishing power for farm or domestic purposes within the district. The rendering of such services shall not impair the use thereof for irrigation purposes. 48-1751. Restrictions on extension of power outside district; contracts with public bodies A. Power for pumping for irrigation service shall not be extended outside the district unless there is a surplus of power over and above the needs for irrigation in the district, but districts may make reasonable contracts with the state, cities and towns, municipal and other corporations or persons for cooperation in carrying out the construction and other plans for the organization of the district as provided by this chapter. B. Districts may make such contracts as are reasonable taking into account the common needs of the district and users within the district. 48-1752. Federal reclamation act adopted; adoption by districts optional A. Districts organized under this chapter shall have all the rights and privileges granted to them by the act of Congress entitled "An act to promote the reclamation of arid lands, approved August 11, 1916," and amendments thereto, the provisions of which are made a part of this chapter. B. Nothing in this chapter shall affect government lands or the federal government except as expressly authorized by federal act. The board of directors may institute proceedings for the purpose of securing the consent and official action of the secretary of the interior to make the federal act operative in the district. C. Nothing in this section shall hinder or delay the district from going forward in its organization or in proceeding to carry out the plans contemplated by this chapter for its organization, whether or not the benefits of the federal act are obtained. If the district decides not to take steps to secure the benefits of the federal act, or, making such effort, fails in complying with federal requirements, it shall be optional with the district whether to proceed with its activities with or without invoking the provisions of the federal act. D. The board may at an annual election submit a report to the electors of the advantages and disadvantages of securing the benefits of the federal act, and if a majority of the electors vote in favor of endeavoring to secure such benefits, the board shall prosecute with reasonable diligence proceedings to secure approval of the secretary of the interior and do all other things necessary to invoke operation of the federal act in the district. The board shall submit such question at the next general election when so requested by ten per cent of the qualified electors of the district. 48-1753. Exemption from antitrust statutes The provisions of title 44, chapter 10, article 1, shall not apply to any conduct or activity of an electrical district organized pursuant to this chapter, which conduct or activity is approved by a statute of this state or of the United States or by the corporation commission or an administrative agency of this state or of the United States having jurisdiction of the subject matter. 48-1754. Supervisory powers of the director of water resources over district projects A. All engineering determinations and supervision provided for and directed by any law relating to electrical districts shall be made under the direction of the director of water resources, and when so made shall be binding upon the state land department and the state certification board. B. Upon the certification of an electrical district project, the plans, specifications and contracts therefor, and any modification thereof, shall be filed with the director of water resources. The works approved and authorized thereby shall be performed strictly in accordance with the plans, specifications and contracts and any modifications thereof. The director of water resources in enforcing the provisions of this section shall have the same powers and duties as conferred upon him by title 45. 48-1771. Expenses of organizing district; issuance of time warrants A. All preliminary expenses incurred in the organization of the district, including necessary engineering and legal services, and all necessary and reasonable services rendered before the district is authorized to contract for such services, materials or valuable things, are lawful obligations of the district, and after the board of directors has qualified shall be paid in such amounts as the board allows. B. As soon as the board of directors has qualified, it may issue warrants to pay district obligations and deliver them to persons having claims against the district. The board may issue time warrants and sell them for the purpose of obtaining funds to conduct the business of the district. The amount of time warrants issued to provide for administration expenses shall be made payable at such time as it appears reasonably probable they can be redeemed by funds derived from the levy of taxes against the property of the district. C. The amount of warrants issued to provide for the general indebtedness of the district, and for expenses incurred in the organization of the district, shall be made due and payable at such time as it is reasonably probable that funds to redeem them will be realized from proceeds of the first sale of bonds. 48-1772. Administration and general expenses defined; separate assessment and levy of taxes for each division of expense A. For purposes of this article, "administration expenses" includes: 1. The per diem allowance and expenses of the board of directors. 2. The salary and expenses of the secretary and assistant secretary of the district, if any. 3. The salary and expenses of the treasurer of the district. 4. Compensation paid to similar officers or employees performing similar services or services ordered by the board, including periodical examinations of the finances and affairs of the district. 5. Legal services rendered in conducting the business of the district. B. Administration expenses may be assessed to and levied upon all taxable real and personal property in the district in the same manner and with the same effect as other property taxes are levied, and shall be assessed and levied upon the assessed value of all the taxable property of the district as assessed for taxation for other purposes. C. For purposes of this article, "general expenses" includes all expenses of the district other than administration expenses. D. General expenses of the district shall be assessed against the real estate taxable in the district to be levied and collected on a per acre basis. In making assessments and levy of taxes to pay the general expenses of the district, the board of supervisors of each county in which all or a part of the district is located shall make assessments and levy taxes to meet such expenses. The county assessor shall spread the assessments and levy on the tax rolls of the county in which any of the lands are located in the same manner as if every acre of land in the district was of the same assessed value, whether improved or not, thus charging every acre of land in the district with the same proportion of the general expenses of the district. E. Improvements shall bear no part of the general expenses of the district. 48-1773. Annual estimate of expenses of district; certificate of expense A. On or before June 1 each year, the board of directors shall determine the amount of money necessary to conduct the business of the district on a cash basis until funds are available from the next tax levy. The board shall embody their findings in a certificate which may set out the items of administration expenses itemized substantially as follows: 1. The compensation and expenses of the board of directors. 2. The salary and expenses of the secretary, the assistant secretary, if any, and the treasurer, and the compensation and expenses of any other employees performing similar services. 3. The salary and expenses of the attorney for the district which shall include compensation paid for legal services as counsel to the board in the ordinary conduct of the business of the district, but not compensation paid in connection with litigation in proceedings for issuance of bonds, or other litigation, which shall be chargeable to general expenses of the district. B. If the board determines to provide administrative funds from the next tax levy, the items listed in subsection A shall be certified to the board of supervisors as administration expenses to be paid by a tax levied upon the assessed value of all property in the district, real and personal, as assessed and taxed in the district for general county purposes. C. The board of directors shall separately determine in the certificate the amount of money chargeable as general expenses of the district and necessary to conduct the business of the district on a cash basis until funds from the next tax levy are available. Such amount shall include all requirements of the district other than those enumerated as administration expenses and shall be plainly itemized. D. The certificate shall contain an estimate of the amount necessary to provide a sinking fund for redemption of bonds and outstanding time warrants and to pay the current interest on bonds and time warrants, new construction, repairs on old property and construction, payments on contracts, leases, litigation expense and expenses other than those chargeable to administration expense. E. The certificate shall be filed with the board of supervisors of each county in which any part of the district is located not later than June 1 each year. F. The certificate shall show the aggregate and total amount of all items to be paid from the tax levy and the amount to be paid by the lands in each county. 48-1774. Service charges; amount; limitation A. Beginning with the third year after issuance of any bonds, the board of directors shall begin to levy a service charge over and above the cost of the power, if purchased or leased by the district or by the users directly, or the actual cost price if generated by the district, and income received from such source shall be deposited in the general expense account of the district. B. The service charge shall not be so high that it will materially impair the public service or constitute an unreasonable burden on the agricultural interests of the district, but it may be increased or reduced from time to time in the public interests of the district. C. The service charge shall at no time be more than enough to make the district self-sustaining, taking into account reasonable needs for depreciation, new construction and like requirements. D. The service charges to users within the district shall be uniform and shall not be subject to the control or regulation of the corporation commission, but service charges to users outside the district shall be subject to such control. 48-1775. Taxes levied under federal law; apportionment; effect on inchoate titles A. When and if the act of Congress of August 11, 1916 becomes operative in a district, the board of directors in making the certificate to the boards of supervisors as provided by section 48-1773 shall certify the amount of taxes levied or assessed under the federal act and apportion the amounts to be collected by the several counties equitably therewith. B. Nothing in this chapter shall reduce the amount of assessments on other lands assessable by reason of the failure to collect assessments on government or other lands to which title is not perfected. The board of directors shall make due allowance in the certificate for probable delay or failure to collect assessments. C. When at any time the act of Congress approved August 11, 1916 becomes operative in the district, the board of directors shall make all necessary regulations reasonably calculated to secure the collection of assessments levied upon federal lands held by entrymen, and federal lands which may be assessed under federal law. The board of supervisors shall comply with the provisions of federal law in certifying the assessments to federal officials. D. The board of directors may provide for notice of the levy to entrymen or others who have inchoate titles to state or government lands, if deemed advisable, and make and keep records thereof, which shall be open to inspection of all taxpayers. In the absence of provisions for collection of levies of assessments, such assessments upon such lands shall be liens on the lands or such interest therein as the law permits. Such liens shall be foreclosed in similar manner and by proceedings in the superior court in the county in which the lands are located in the manner provided for foreclosing mortgages. The penalties for delinquent assessments shall be in substantially the same amounts and terms and shall attach substantially at the same time as those of other taxes. 48-1776. Collection of taxes; delinquent taxes A. A district shall have the same right as an individual to become a purchaser at any tax sale, foreclosure or other sale of lands for nonpayment of assessments or taxes due the district, and may as such purchaser pay a price which includes other taxes involved in the same sale when it is deemed necessary for protection of the interest of the district. The district may convey title thus acquired to the same extent as individual purchasers, and may transfer the rights of filing and entry provided by the act of Congress of August 11, 1916. B. All taxes and assessments levied as provided by this chapter shall become due and delinquent in the same manner as property taxes levied for general county purposes. C. All taxes and assessments unless otherwise provided by this chapter shall be collected by such proceedings, at the same times and with the same penalties as general county property taxes insofar as such provisions and proceedings can be substantially adopted for that purpose. This subsection shall be liberally construed to promote the purposes of the organization of electrical districts. 48-1777. Limitation on district indebtedness Nothing in this chapter shall be construed as making districts organized under this chapter municipal corporations within the meaning of article 13 of the constitution, but they shall in all respects be subject to the debt limitations of municipal corporations. 48-1778. Authority of directors to invest monies; approved investments The board of directors, in the best interests of the district, may invest and reinvest monies of the district in any of the following: 1. Bonds or other evidences of indebtedness of the United States or any of its agencies or instrumentalities if the obligations are guaranteed as to principal and interest by the United States or by any agency or instrumentality of the United States. 2. Bonds or other evidences of indebtedness of this state or of any county, incorporated city or town or duly organized school district of this state. 3. Bonds, notes or evidences of indebtedness of any county, municipality or municipal district utility within this state, which are payable from revenues or earnings specifically pledged for the payment of the principal and interest on the obligations and for the payment of which a lawful sinking fund or reserve fund has been established and is being maintained, but only if no default in payment of principal or interest on the obligations to be purchased has occurred within five years of the date of investment or, if the obligations were issued less than five years prior to the date of investment, no default in payment of principal or interest has occurred on the obligations to be purchased nor on any other obligations of the issuer within five years of the investment. 4. Bonds, notes or evidences of indebtedness issued by any municipal improvement district in this state to finance local improvements authorized by law if the principal and interest of the obligations are payable from assessments on real property within the local improvement district. The board of directors shall not make the investment if the face value of all the obligations, and similar obligations outstanding, exceeds fifty percent of the market value of the real property and improvements on which the bonds or the assessments for the payment of principal and interest on the bonds are liens inferior only to the liens for general ad valorem property taxes. The board of directors may make the investment only if no default in payment of principal or interest on the obligations to be purchased has occurred within five years of the date of investment or, if the obligations were issued less than five years prior to the date of investment, no default in payment of principal or interest has occurred on the obligations to be purchased nor on any other obligation of the issuer within five years of the investment. 5. Interest-bearing savings accounts or certificates of deposit insured in banks or savings and loan associations doing business in this state by the federal deposit insurance corporation or the federal savings and loan insurance corporation but only if they are secured by the depository to the same extent and in the same manner as required by the general depository law of this state. Security is not required for that portion of any deposit that is insured under any law of the United States. 6. Bonds, debentures or other obligations issued by the federal land banks, the federal intermediate credit banks, the banks for cooperatives or the national rural utility cooperative finance corporations. 7. Deposits placed in accordance with the procedures prescribed in section 35-323.01. 48-1779. Reimbursement for county services Services provided by a county to an electrical district are subject to reimbursement pursuant to section 11-251.06. 48-1791. Initial general plan of works for district A. Immediately upon qualifying, the first board of directors shall investigate the different ways by which power can be brought into or generated within or without the district in such a manner as to be efficiently distributed to the users for irrigation purposes. The board shall determine what kind of power is most efficient and economical and in what manner and by what means it can be secured. B. For the purpose of bringing hydroelectric or other kind of power into the district, if it can be more efficiently generated or procured at some point outside the district, the board of directors may construct lines, conduits and necessary equipment or other means of bringing such power into the district, and such other construction, plants and equipment as in the judgment of the board is necessary or useful for the purpose of generating or otherwise producing or procuring the power