Whenever it is desired to construct improvements wholly within or partly within and partly without any district organized under this act, which improvements will affect only a part of said district, for the purpose of accomplishing such work, subdistricts may be organized upon petition of the owners of real property, within or partly within and partly without the district, which petition shall fulfill the same requirements concerning the subdistricts as the petition outlined in Section 4 of this act is required to fulfill concerning the organization of the main district, and shall be filed with the clerk of the same district court, and shall be accompanied by a bond as provided for in Section 5 of this act. All proceedings relating to such subdistricts shall conform in all things to the provisions of this act relating to the organization of districts. Whenever the court shall, by its order duly entered of record, declare and decree such subdistricts to be organized, the clerk of said court shall thereupon give notice of such order to the directors of the district, who shall thereupon act also as directors of the subdistricts. Thereafter, the proceedings in reference to the subdistricts shall in all matters conform to the provisions of this act; except that in appraisal of benefits and damages for the purposes of such subdistricts, in the issuance of bonds, in the levying of assessments or taxes, and in all other matters affecting only the subdistricts, the provisions of this act shall apply to this subdistrict as though it were an independent district, and it shall not, in these things be amalgamated with the main district.

The board of directors, board of appraisers, chief engineer, attorney, secretary and other agents and employees of the district shall, so far as it may be necessary, serve in the same capacities for such subdistrict, and contracts and agreements between the main district and the subdistrict may be made in the same manner as contracts and agreements between two districts. The distribution of administrative expense between the main district and subdistrict shall be in proportion to the interests involved and the amount of service rendered, such division to be made by the board of directors with an appeal to the court establishing the district. This section shall not be held to prevent the organization of independent districts for local improvements under other laws, within the limits of a district organized under this act, as provided in Sections 59 and 60 of this act.

Laws 1923-24, c. 139, p. 196, § 62.