(1) Proceedings may be initiated by the county board or any other public agency in accordance with ORS § 431.705 to 431.760:

(a) To annex the affected territory to a district, as defined by ORS § 431.705; or

(b) To form a metropolitan service district as authorized by ORS Chapter 268, or a county service district as authorized by ORS Chapter 451, to include the affected territory.

(2) The findings of the Director of the Oregon Health Authority when filed with the county board in accordance with ORS § 431.735 or 431.750 shall be considered a petition for the purposes of ORS § 198.705 to 198.955. The county board of the principal county shall conduct proceedings in accordance with the findings and order of the director and with ORS § 198.705 to 198.955.

(3) In proceedings described by subsection (1) of this section, the county board shall determine whether the affected territory shall be included in a new district or annexed to an existing district. The county board shall not inquire into the need for the proposed service facilities or adjust the boundaries of the affected territory. ORS § 198.805 (2), and the provisions of ORS § 198.810 and 198.815 providing for an election on the formation of or annexation to a district, do not apply to proceedings under this section. [1973 c.361 § 14; 2009 c.595 § 175]