ORS 451.577: Dissolution of special district; service district to succeed.

(1) Subject to ORS 451.575, upon the effective date of the formation of a district, of an annexation of territory to a district or of an order that adds drainage works to the authority of a service district, a special district lying within the district shall be extinguished and dissolved and the district shall succeed to all the assets and become charged with all the liabilities, obligations and functions of the special district.

      (2) Subsection (1) of this section applies:

      (a) If the entire area of a special district is incorporated in or annexed to a district; and

      (b) If the district has the authority to provide the same service as the special district.