H. B. 2851
(By Delegate Louisos)
[Introduced February 26, 2009; referred to the
Committee on Political Subdivisions then Finance.]
A BILL to amend and reenact §8-12-17 of the Code of West Virginia,
1931, as amended, relating to the sale of municipal public
utility.
Be it enacted by the Legislature of West Virginia:
That §8-12-17 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 12. GENERAL AND SPECIFIC POWERS, DUTIES AND ALLIED
RELATIONS OF MUNICIPALITIES, GOVERNING BODIES AND
MUNICIPAL OFFICERS AND EMPLOYEES; SUITS AGAINST
MUNICIPALITIES.
PART V. SALE OR LEASE OF MUNICIPAL PUBLIC UTILITY.
§8-12-17. Sale or lease of municipal public utility.
In any case where a municipality shall own a gas system, an
electric system, a waterworks or other public utility, and the
governing body thereof shall deem it for the best interest of
such
the municipality that
such the utility be sold or leased, the
governing body shall, by ordinance legally adopted, submit to the qualified voters of
such the municipality, at any regular municipal
election or at any special municipal election called for that
purpose, the question of making or effecting
such the sale or
lease. In such case the governing body shall, in the ordinance
submitting
such the question to a vote, set forth in full the terms
of
such the proposed sale or lease, the name of the proposed
purchaser or lessee and the date of
such
the election, and a notice
containing this information shall be published as a Class II-0
legal advertisement in compliance with the provisions of article
three, chapter fifty-nine of this code, and the publication area
for
such the publication shall be
such the municipality.
Such The
election shall be held in all respects in compliance with the
provisions of chapter three of this code, so far as the same are
applicable and not inconsistent herewith, and the provisions of
article five of this chapter. If a majority of the legal votes
cast at
such the election upon
such the question be in favor of the
proposed sale or lease of
such the utility, the governing body,
upon the ascertainment of the result of
such the election, shall
have full power and authority to proceed to execute or effect
such
the sale or lease in accordance with the terms and conditions
prescribed in the ordinance as aforesaid, and shall have power to
do any and all things necessary or incident thereto:
Provided,
That if at any time after
such the election and before the
execution of the authority under the ordinance, any person should
present to the governing body an offer to buy such public utility
at a price which exceeds by at least five percent the sale price which shall have been so voted upon and authorized or to lease the
same upon terms which the governing body, in its discretion, shall
consider more advantageous to the municipality than the terms of
the lease which shall have been authorized by vote as aforesaid,
the governing body shall have the power to accept
such the
subsequent offer, and to make
such the sale or
such the lease to
the person making the offer, without resubmitting the question to
a vote; but, if a sale shall have been authorized by vote as
aforesaid, and
such the subsequent proposition be for a lease, or,
if a lease shall have been so authorized, and the subsequent
proposition shall be for a sale, the governing body shall have no
power to accept the same without submitting the question thereof to
a vote of the people as first above provided. Before any such
second or subsequent proposition shall be submitted to a vote,
after a sale or lease shall have been authorized at an election
held hereunder, the person making
such the proposition shall
furnish bond, with security to be approved by the governing body,
in a penalty of not less than twenty-five percent of
such the
proposed bid, conditioned to carry
such the proposition into
execution, if the same shall be approved at the election to be
called thereon.
In the case of a sale of the public utility, the
municipality shall receive at least fifty percent of the
replacement costs for the utility in the sale. In any case where
any
such the public utility shall be sold or leased by the
governing body as hereinabove provided, no part of the moneys
derived from
such the sale or lease shall be applied to the payment of current expenses of the municipality, but the proceeds of
such
the sale or lease shall be applied in payment and discharge of any
bonded indebtedness created in respect to
such the public utility,
and in case there be no bonded indebtedness, the governing body, in
its discretion, shall have the power and authority to expend all
such the moneys when received for the purchase or construction of
fire-fighting equipment and buildings for housing
such the
equipment, a municipal building or city hall, and the necessary
land upon which to locate the same, or for the construction of
paved streets, avenues, roads, alleys, ways, sidewalks, sewers and
other like permanent improvements, and for no other purposes. In
case there be a surplus after the payment of
such any bonded
indebtedness, the surplus shall be used as aforesaid.
The requirements of this section shall not apply to the sale
or lease of any part of the properties of any
such public utility
determined by the governing body to be unnecessary for the
efficient rendering of the service of
such the utility.
NOTE: The purpose of this bill is to require that in the sale
of a public utility by a municipality, the municipality shall
receive at least fifty percent of the replacement costs for the
utility in the sale.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.