Committee Substitute
House Bill 2291 History
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COMMITTEE SUBSTITUTE
FOR
H. B. 2291
(By Delegates Staton, Browning and Facemyer)
(Originating in the House Committee on the Judiciary)
[April 1, 1993]
A BILL to amend and reenact sections one, one-a, one-b and two,
article thirteen-a, chapter sixteen of the code of West
Virginia, one thousand nine hundred thirty-one, as amended,
all relating to removing the public service commission's
powers as to final approval of the consolidation, merger,
creation, expansion and dissolution of local public service
districts.
Be it enacted by the Legislature of West Virginia:
That sections one, one-a, one-b and two, article thirteen-a,
chapter sixteen of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, be amended and reenacted, all to
read as follows:
ARTICLE 13A. PUBLIC SERVICE DISTRICTS FOR WATER, SEWERAGE AND
GAS SERVICES.
§16-13A-1. Legislative findings.
The Legislature of the state of West Virginia hereby
determines and finds that the present system of public service
districts within the state has provided a valuable service at areasonable cost to persons who would otherwise have been unable
to obtain public utility services. To further this effort, and
to insure that all areas of the state are benefiting from the
availability of public service district utility services and to
further correct areas with health hazards, the Legislature
concludes that it is in the best interest of the public to
implement better management of public service district resources
by expanding the ability and the authority of the public service
commission to assist public service districts by offering advice
and assistance in operational, financial and regulatory affairs.
In addition to the expanded powers which shall be given to
the public service commission, the Legislature also concludes
that it is in the best interest of the public for each county
commission to review current technology available and consider
consolidating existing public service districts where it is
feasible and will not result in the interference with existing
bond instruments. Further, if such consolidation is not feasible,
the Legislature finds that it is in the best interest of the
public for each county commission to review current technology
available and consider consolidating or centralizing the
management of public service districts within its county or
multi-county area to achieve efficiency of operations. The
Legislature also finds that additional guidelines should be
imposed on the creation of new public service districts and that
county commissions shall dissolve inactive public service
districts as hereinafter provided. The Legislature also finds
that the public service commission shall promulgate rules and
regulations to effectuate the expanded powers given to thecommission relating to public service districts.
§16-13A-1a. Jurisdiction of the public service commission.
The jurisdiction of the public service commission relating
to public service districts shall be expanded to include the
following powers and such powers shall be in addition to all
other powers of the public service commission set forth in this
code:
(a) To study, modify, approve, deny or amend the plans
created under section one-b of this article for consolidation or
merger of public service districts and their facilities,
personnel or administration;
(b) To petition the appropriate circuit court for the
removal of a public service district board member or members; and
(c) To create by general order a separate division within
the public service commission to provide assistance to public
service districts in technological, operational, financial and
regulatory matters.
§16-13A-1b. County commissions to develop plan to create,
consolidate, merge, expand or dissolve public
service districts.
Each county commission shall conduct a study of all public
service districts which have their principal offices within its
county and shall develop a plan relating to the creation,
consolidation, merger, expansion or dissolution of such districts
or the consolidation or merger of management and administrative
services and personnel and shall may present such plan to the
public service commission for approval, disapproval, or
modification.
Provided,
That within ninety days of the effectivedate of the reenactment of this section each county commission in
this state which has not yet conducted such a study shall elect
either to perform its own study or request that the public
service commission perform such study. Each county commission
electing to perform its own study shall have one year from the
date of election to present such plan to the public service
commission. For each county wherein the county commission If any
such county commission elects not to perform its own study, the
public service commission shall conduct a study of such county.
The public service commission shall establish a schedule for such
studies upon a priority basis, with those counties perceived to
have the greatest need of creation or consolidation of public
service districts receiving the highest priority. In
establishing the priority schedule, and in the performance of
each study, the department of health and the department of
natural resources shall offer their assistance and cooperation to
the public service commission. Upon completion by the public
service commission of each study, it shall be submitted to the
appropriate county commission for review, and comment, and/or
approval. Each county commission shall have six months in which
to review the study conducted by the public service commission,
suggest changes or modifications thereof, and present such plan
to the public service commission. All county plans, whether
conducted by the county commission itself or submitted as a
result of a public service commission study, shall, by order, be
approved, disapproved or modified by the public service
commission in accordance with rules and regulations promulgated
by the public service commission each county commission and suchorder shall be implemented by the county commission.
§16-13A-2. Creation of districts by county commission;
enlarging, reducing or dissolving district;
consolidation; agreements, etc.; infringing upon
powers of county commission; filing list of members
and districts with the secretary of state.
The county commission of any county may, on its own motion
by order duly adopted or upon the recommendation of the public
service commission, propose the creation of such public service
district within such county, setting forth in such order a
description, including metes and bounds, sufficient to identify
the territory to be embraced therein and the name of such
proposed district, or twenty-five percent of the registered
voters who reside within the limits of such proposed public
service district within one or more counties may petition for the
creation thereof, which petition shall contain a description,
including metes and bounds, sufficient to identify the territory
to be embraced therein and the name of such proposed district:
Provided,
That after the effective date of this section, no new
public service district shall be created under this section
without the written consent and approval of the public service
commission, which approval and consent shall be in accordance
with rules and regulations promulgated by the public service
commission and may only be requested after consent is given by
the appropriate county commission or commissions pursuant to this
section. Any territory may be included regardless of whether or
not such territory includes one or more cities, incorporated
towns or other municipal corporations which own and operate anypublic service properties and regardless of whether or not it
includes one or more cities, incorporated towns or other
municipal corporations being served by privately owned public
service properties:
Provided however,
That the same territory
shall not be included within the boundaries of more than one
public service district except where such territory or part
thereof is included within the boundaries of a separate public
service district organized to supply water, sewerage services or
gas facilities not being furnished within such territory or part
thereof:
Provided further, however,
That no city, incorporated
town or other municipal corporation shall be included within the
boundaries of such proposed district except upon the adoption of
a resolution of the governing body of such city, incorporated
town or other municipal corporation consenting.
Such petition shall be filed in the office of the clerk of
the county commission of the county in which the territory to
constitute the proposed district is situated, and if such
territory is situated in more than one county, then such petition
shall be filed in the office of the clerk of the county
commission of the county in which the major portion of such
territory extends, and a copy thereof (omitting signatures) shall
be filed with each of the clerks of the county commission of the
other county or counties into which the territory extends. The
clerk of the county commission receiving such petition shall
present it to the county commission of such county at the first
regular meeting after such filing or at a special meeting called
for the consideration thereof.
When the county commission of any county enters an order onits own motion proposing the creation of a public service
district, as aforesaid, or when a petition for such creation is
presented, as aforesaid, the county commission shall at the same
session fix a date of hearing in such county on the creation of
the proposed public service district, which date so fixed shall
be not more than forty days nor less than twenty days from the
date of such action. If the territory proposed to be included is
situated in more than one county, the county commission, when
fixing a date of hearing, shall provide for notifying the county
commission and clerk thereof of each of the other counties into
which the territory extends of the date so fixed. The clerk of
the county commission of each county in which any territory in
the proposed public service district is located shall cause
notice of such hearing and the time and place thereof, and
setting forth a description of all of the territory proposed to
be included therein to be given by publication as a Class I legal
advertisement in compliance with the provisions of article three,
chapter fifty-nine of this code, and the publication area for
such publication shall be by publication in each city,
incorporated town or municipal corporation if available in each
county in which any territory in the proposed public service
district is located. The publication shall be at least ten days
prior to such hearing. In all cases where proceedings for the
creation of such public service districts are initiated by
petition as aforesaid, the person filing the petition shall
advance or satisfactorily indemnify the payment of the cost and
expenses of publishing the hearing notice, and otherwise the
costs and expenses of such notice shall be paid in the firstinstance by the county commission out of contingent funds or any
other funds available or made available for that purpose. In
addition to the notice required herein to be published, there
shall also be posted in at least five conspicuous places in the
proposed public service district, a notice containing the same
information as is contained in the published notice. The posted
notices shall be posted not less than ten days before the
hearing.
All persons residing in or owning or having any interest in
property in such proposed public service district shall have an
opportunity to be heard for and against its creation. At such
hearing the county commission before which the hearing is
conducted shall consider and determine the feasibility of the
creation of the proposed district. If the county commission
determines that the construction or acquisition by purchase or
otherwise and maintenance, operation, improvement and extension
of public service properties by such public service district will
be conducive to the preservation of public health, comfort and
convenience of such area, the county commission shall by order
create such public service district. If the county commission,
after due consideration, determines that the proposed district
will not be conducive to the preservation of public health,
comfort or convenience of such area or that the creation of the
proposed district as set forth and described in the petition or
order is not feasible, it may refuse to enter an order creating
the district or it may enter an order amending the description of
the proposed district and create the district as amended. If the
county commission determines that any other public servicedistrict or districts can adequately serve the area of the
proposed public service district, whether by expansion, merger or
other means, it shall refuse to enter an order creating the
proposed district and shall enter an order expanding, merging or
consolidating the area with an existing public service district,
in accordance with rules and regulations adopted by the public
service commission for such purpose:
Provided,
That no expansion
of a public service district may occur if the present or proposed
physical facilities of the public service district are determined
by the appropriate county commission or the public service
commission to be inadequate to provide such expanded service.
The clerk of the county commission of each county into which any
part of such district extends shall retain in his office an
authentic copy of the order creating, expanding, merging or
consolidating the district:
Provided, however,
That within ten
days after the entry of an order creating, expanding or merging
or consolidating a district, such order must be filed for review
and approval by the public service commission. The public
service commission shall provide a hearing in the affected county
on the matter and may approve, reject or modify the order of the
county commission if it finds it is in the best interests of the
public to do so. The public service commission shall adopt rules
and regulations relating to such filings and the approval,
disapproval or modification of county commission orders for
creating, expanding, merging or consolidating districts.
The county commission may, if in its discretion it deems it
necessary, feasible and proper, enlarge the district to include
additional areas, reduce the area of the district, wherefacilities, equipment, service or materials have not been
extended, or dissolve the district if inactive or establish or
consolidate two or more such districts. If consolidation of
districts is not feasible, the county commission may consolidate
and centralize management and administration of districts within
its county or multi-county area to achieve efficiency of
operations:
Provided,
That where the county commission determines
on its own motion by order entered of record, or there is a
petition to enlarge the district, merge and consolidate
districts, or the management and administration thereof, reduce
the area of the district or dissolve the district if inactive,
all of the applicable provisions of this article providing for
hearing, and notice of hearing and approval by the public service
commission shall apply with like effect as if a district were
being created. The commission County commissions shall at all
times attempt to bring about the expansion or merger of existing
public service districts in order to provide increased services
and to eliminate the need for creation of new public service
districts in those areas which are not currently serviced by a
public service district:
Provided, however,
That where two or
more public service districts are consolidated pursuant to this
section, any rate differentials may continue for the period of
bonded indebtedness incurred prior to consolidation. The
districts may not enter into any agreement, contract or covenant
that infringes upon, impairs, abridges or usurps the duties,
rights or powers of the county commission, as set forth in this
article, or conflicts with any provision of this article. A list
of all districts and their current board members shall be filedby the county commission with the secretary of state and the
public service commission by the first day of July of each year.