(1) In addition to other methods for formation of a district authorized under ORS chapter 198 and ORS 357.216 (Definitions for ORS 357.216 to 357.286) to 357.286 (Retirement system for employees), the governing body in each of two or more counties may initiate the formation of a multicounty district, to be located entirely within those counties, by an order setting forth:
(a) The intention of the county governing body to initiate the formation of a district and citing the principal Act.
(b) The name and boundaries of the proposed district.
(c) The date, time and place of a public hearing on the proposal.
(2) The orders issued under subsection (1) of this section must be substantially similar, set forth the same name and boundaries for the proposed district and be issued within a 90-day period.
(3) Each county governing body issuing an order under this section shall hold a public hearing on the proposal.
(4) After the public hearings held by each county governing body, further hearings and the election on the proposal, and election of board members, shall be conducted as provided by ORS 198.800 (Formation petition) to 198.825 (Election of first members of board when no formation election required) except that:
(a) Hearings shall be conducted by the governing body of the principal county involved in the proposed formation; and
(b) Notwithstanding ORS 198.810 (Order for formation) (3), the governing body of the principal county shall provide by order for the holding of an election to submit to the electors registered within the proposed district the question of forming the district.
(5) As used in this section, principal county has the meaning given that term in ORS 198.705 (Definitions for ORS 198.705 to 198.955). [1987 c.578 §2; 2005 c.747 §6]