said board that the lands to be acquired are for a public use shall be conclusive of that fact.

§ 32. Alterations or additions to plan. The board of directors may at any time before the conclusion of the hearing thereon and the approval by the state engineer, when necessary to fulfill the objects for which the district was created, alter or add to the official plan as in section eleven provided, and when such alterations or additions are formally approved by the said board and by the state engineer and are filed with the secretary, they shall become parts of the official plan for all purposes of this act. Where such alterations or additions in the judgment of the said board neither materially modify the general character of the work, nor materially increase resulting damages for which the board is not able to make amicable settlement, nor increase the cost more than ten per cent, no reappraisement shall be necessary. In case the proposed alterations or additions in the opinion of the board materially modify the resulting damages or materially reduce the benefits, for which the board of directors is not able to make amicable settlement, or materially increase the benefits in such a manner as to require a new appraisal, or increase the cost more than ten per cent, the board of directors shall direct the board of appraisers (which may be the original board or a new board appointed by the board of directors) to appraise the property to be taken, benefited or damaged, by the proposed alterations or additions. Upon the completion of the report thereon by the board of appraisers notice shall be given and a hearing had on their report in the same manner as in the case of the original report of the board of appraisers; provided, that where only a few land owners are affected, the secretary of the district may, on order of the board of directors, if found by them to be more economical and convenient, give personal notice to such land owners of the hearing of the report of said appraisers, instead of notice by publication; and provided, that when the only question at issue is additional damages or reduction of benefits to property, due to modifications or additions to the plans, the board of directors may, if they find it practicable, make settlements with the owners of the property damaged or benefited, instead of having appraisals made by the board of appraisers. In case such settlements are made, notice and hearing need not be had. After bonds have been sold, in order that their security may not be impaired, no reduction shall be made in the aggregate amount of benefits appraised against property in the dis

trict.

No fault in any

§ 33. Validity of proceeding not affected by fault. notice or other proceedings shall affect the validity of any proceeding under this act except to the extent to which it can be shown that such fault resulted in a material denial of justice to the property owner complaining of such fault if any appraisal of benefits shall be declared ineffectual by any court.

The board of directors may render a finding as to the amount of benefits to said property, and appraise the proper benefits accordingly, and thereupon said land shall be assessed according to such benefits.

§ 34. District funds. The moneys of every conservancy district organized hereunder shall consist of four separate funds: (1) Preliminary fund, by which is meant the proceeds of the ad valorem tax authorized by this act and such advancements as may be made from the general

county funds as provided in this act; (2) bond fund, by which is meant a fund raised by the issuance and sale of bonds of the district; (3) improvement warrant fund, by which is meant the proceeds of levies made against the special assessments of benefits equalized and confirmed under the provisions of this act; and (4) maintenance fund, which is a special assessment to be levied annually for the purpose of upkeep, administration and current expenses as hereinafter provided. It is intended that the cost of preparing the official plan, the appraisal (except as paid out of the preliminary fund) and the entire cost of construction and superintendence, including all charges incidental thereto, and the cost of administration during the period of construction, shall be paid out of the bond fund.

No vouchers shall be drawn against the preliminary fund (except for advances from the general county funds) or against the maintenance fund until a tax-levying resolution shall have been properly recommended by the board of directors and passed by the board of supervisors and duly entered upon its records; no bonds shall be issued against the bond fund until a tax-levying resolution shall have been properly recommended by the board of directors and passed by the board of supervisors and duly entered upon its records; no moneys shall be transferred from the improvement warrant fund except by order of the board of supervisors, upon recommendation of the board of directors.

§ 35. Payment of preliminary expenses. If the district is not organized, then the costs of publication and other official costs of the proceedings shall be collected by the county from the petitioners or their bondsmen, paid into the county treasury and there held in a separate fund against which warrants may be audited and drawn on the order of the board of supervisors, as other warrants of the county are audited and drawn. Upon the organization of the district, the board of supervisors shall make an order indicating a preliminary division of the preliminary expenses between the counties included in the district in approximately the proportions of interest of various counties as may be estimated by said board of supervisors. And the board of supervisors of each respective county shall issue an order to the auditor of its respective county to issue his warrant for the pro rata amount to be paid that county, upon the treasurer of his County to reimburse the county having paid the total cost; provided, however, that the joint board of supervisors shall first determine at a previous meeting the pro rata amount to be borne by each county and shall determine the same upon a basis of the assessed value of property benefited in the district in each county.

Advance of funds by counties. Expenses incurred thereafter prior to the receipt of money by the district from taxes or assessments, bond sales, or otherwise shall be paid from the general funds of the respective counties proportionately upon the order of the board of supervisors, and shall be paid upon certification of the clerk of the board of supervisors of such order, specifying the amount and purpose of the claims to the auditor of each county, who shall thereupon at once issue his warrant to the treasurer of his county. Upon receipt of funds by the district from the sale of bonds or by taxation or assessment the funds so advanced by the counties shall be repaid. Tax levy for incidental expenses. As soon as any district shall have been organized under this act, and a board of directors shall

have been elected and qualified, such board of directors shall recommend to the board of supervisors and the board of supervisors shall have the power and authority to levy upon the property within the district an assessment not to exceed three mills on each one hundred cents of the assessed valuation thereof as a level rate to be used for the purpose of paying expenses of organization, for surveys and plans, and for other incidental expenses which may be necessary up to the time money is received from the sale of bonds or otherwise. This assessment shall be certified to the auditors of the various counties having property within the district and by them to the respective treasurers of their counties. If such items of expense have already been paid in whole or in part from other sources, they may be repaid from the receipts of such levy, and such levy may be made although the work proposed may have been found impracticable or for other reasons is abandoned. The tax collector shall at once proceed to collect said assessment and the collection of such assessment levy shall conform in all matters to the collection of taxes and assessments for the district outlined in this act, and the same provisions concerning the nonpayment of taxes shall apply. In case a district is disbanded for any cause whatever before the work is contracted, the data, plans and estimates which have been secured shall be filed with the clerk of the board of supervisors with which the petition thereupon was filed, and shall be matters of public record available to any person interested. [Amendment approved March 19, 1923. Stats. 1923, p. 14.].

The act of 1923 amending the above section also contained the following provisions:

§ 2. Urgency measure. This act is hereby declared to be an urgency measure within the meaning of section one of article four of the constitution of the state of California, and shall take effect immediately.

The facts constituting such urgency are as follows:

That the provisions of said section thirty-five of the conservancy act of the state of California as the same now reads, do not provide for the raising of sufficient funds to enable districts organized under said act to pay the expenses of organization, for surveys and plans and for other incidental expenses which may be necessary up to the time money is received from the sale of bonds or otherwise, and that delay in providing suitable means for raising sufficient funds for said purposes will result in great damage to the lands located within said districts and to the owners of said lands for the reason that none of the conservancy works provided for in said conservancy act can be done this year unless sufficient funds are immediately available to pay the said preliminary expenses.

§ 36. Interest on unpaid warrants. If any warrant issued by the board of directors is presented for payment and is not paid for want of funds in the treasury, that fact with the date of refusal shall be indorsed on the back of such warrant, and said warrant shall thereafter draw interest at the rate of six per cent, until such time as there is money in the treasury of said district sufficient to pay the amount of said warrant with interest.

§ 37. Bond issue to complete works. Rate of interest. Form and sale of bonds.

Additional issues. Elections.
Payment, pledge and validity

of bonds. Registry of. As investments. At any time after the adoption of the original official plan the board of directors may by majority vote of said board adopt and enter on their minutes a resolution estimating the amount of money needed to complete the works according to said official plan and authorizing and directing a petition to be filed with the board of supervisors of the county in which the original petition for the organization of the district was filed, requesting that a special election be called to submit to the electors of the district qualified under this act the question of incurring an indebtedness in the amount specified in said resolution. Said petition shall set forth the amount of bonds to be issued, the rate of interest to be paid, which shall not exceed six per cent per annum and in general terms the objects and purposes for which the indebtedness is to be incurred. After the filing of said petition the board of supervisors shall without delay call a special election and submit to the electors of said district, qualified under the provisions of this act, the proposition of incurring a bonded debt in the amount estimated by the board for the construction of the works in accordance with said official plan.

Additional issues. If the amount of money provided in the original bond issue is not sufficient to complete the work according to the official plan nothing herein contained shall prohibit the board of directors from filing petitions for additional issues of bonds in the same form and manner herein above set forth for the original issue of bonds. The plan and procedure for the original issue of bonds shall be followed for all subsequent issues of bonds.

Rate of interest.

Elections. Objects and purposes of indebtedness. Said board of supervisors shall call such special election by ordinance, and shall recite therein the objects and purposes for which the indebtedness is proposed to be incurred; provided, that it shall be sufficient to give a brief general description of such objects and purposes, and refer to the official plan on file for particulars; and said ordinance shall also state the estimated cost of the proposed work and improvements, the amount of the principal of the indebtedness to be incurred therefor, and what part of such indebtedness shall be paid each and every year, and which shall be not less than one-fortieth of the whole amount of such indebtedness, and the rate of interest to be paid on said indebtedness, and shall fix the date on which such special election shall be held, the manner of holding the same and the manner of voting for or against incurring such indebtedness. The rate of interest to be paid on such indebtedness shall not exceed six per centum per

annum.

Election precincts. For the purposes of said election, said board of supervisors shall in said ordinance establish election precincts within the boundaries of the said district, and may form election precincts by consolidating the precincts established for general election purposes in said district to a number not exceeding six for each such bond election precinct, and shall designate a polling place and appoint two inspectors, two judges and two clerks for each of such precincts. Calling and conduct of election. In all particulars not recited in such ordinance, such election shall be held as nearly as practicable in conformity with the general election laws of the state.

Said board of supervisors shall cause so much of said official plan as covers a general description of the work to be done, and the map showing the location of the proposed work and improvements, to be printed at

least thirty days before the date fixed for such election, and a copy thereof furnished to every elector of said district qualified under the provisions of this act who shall apply for the same.

Said ordinance calling such election shall, prior to the date set for such election, be published ten times in a daily, or four times in a weekly newspaper of general circulation, printed and published in said district, and designated by said board of supervisors for said purpose. No other notice of such election need be given.

Any defect or irregularity in the proceedings prior to the calling of such election shall not affect the validity of the bonds.

If at such election a majority of the votes cast are in favor of incurring such bonded indebtedness, then bonds of said district for the amount stated in such proceedings shall be issued and sold as in this act provided.

All bonds issued under this act shall mature serially in equal annual amounts of not less than one-fortieth part of the aggregate principal in each year, and their principal and interest shall be made payable at the county treasurer's office of the main county; in United States gold coin.

Form of bonds and coupons. Signing of. The board of supervisors by an order entered upon its minutes shall prescribe the form of said bonds, and of the interest coupons attached thereto; the denominations of the bonds, which shall be not less than one hundred dollars nor more than one thousand dollars; the dates of payment of principal and interest, and the serial numbering of the bonds and coupons. Said bonds shall be signed on behalf of the district by the chairman of the board of supervisors of the main county and by the auditor of said county, and the coupons shall be signed by the engraved or lithographed facsimile signature of such auditor; and when so signed said bonds and coupons shall be delivered for safe-keeping to the county treasurer of said main county, who shall deliver them to the purchaser or purchasers thereof on receipt of the purchase price. If any officer signing shall cease to be such officer before the delivery of the bonds to the purchaser, such signature shall nevertheless be valid and effectual.

Sale of bonds. Said bonds shall be sold in the manner prescribed by the board of supervisors, but for not less than par, and the proceeds of sale thereof, including any premium received at such sale, shall be deposited in the county treasury to the credit of the construction fund of the district.

Payments from said fund shall be made by the county treasurer upon demands signed by the president and secretary of the district and approved by resolution of the board of directors, each of which demands shall recite that it is drawn in payment of work to be done under said official plan, or for expense incidental thereto.

Bonds issued under this act shall constitute a continuing lien upon all property within the district.

The board of supervisors shall levy a tax each year upon the taxable property in such district, sufficient (when added to the district bond fund in the county treasury available therefor) to pay the annual interest on said bonds, and also such part of the principal thereof necessary to be collected as will become due before the collection of