COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 256
(By Senators Anderson, Ross, Love, Snyder, Buckalew, Bailey,
Dittmar, Bowman, Walker and Schoonover)
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[Originating in the Committee on the Judiciary;
reported March 19, 1997.]
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A BILL to amend and reenact section eighteen-a, article thirteen-a,
chapter sixteen of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to the sale,
lease or rental of water, sewer or gas systems by public
service districts; and requiring the approval of a majority of
not less than sixty percent of the members of a public service
board as a condition to the sale, lease or rental of any
water, sewer or gas systems owned by the public service
district.
Be it enacted by the Legislature of West Virginia:
That section eighteen-a, article thirteen-a, chapter sixteen
of the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted to read as follows:
ARTICLE 13A. PUBLIC SERVICE DISTRICTS FOR WATER, SEWERAGE AND GAS
SERVICES.
§16-13A-18a. Sale, lease or rental of water, sewer or gas system
by district; distribution of proceeds.
In any case where a public service district owns a water,
sewer or gas system, and all a majority of not less than sixty
percent of the members of the public service board thereof deem it
for the best interests of the district to sell, lease or rent such
water, sewer or gas system to any municipality or privately-owned
water, sewer or gas system, or to any water, sewer or gas system
owned by an adjacent public service district, the board may so
sell, lease or rent such water, sewer or gas system upon such terms
and conditions as said board, in its discretion, considers in the
best interests of the district: Provided, That such sale, leasing
or rental may be made only upon approval by the county commission
in which the public service district was established and by the
public service commission of West Virginia.
In the event of any such sale, the proceeds thereof, if any,
remaining after payment of all outstanding bonds and other
obligations of the district, shall be ratably distributed to any
persons who have made contributions in aid of construction of such
water, sewer or gas system, such distribution not to exceed the
actual amount of any such contribution, without interest, and any
balance of funds thereafter remaining shall be paid to the county
commission of the county in which the major portion of such water,
sewer or gas system is located to be placed in the general funds of
such county commission.
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(NOTE: The purpose of this bill is to change the percent of
votes of Public Service District members from the current 100% to
not less than 60% in order for a Public Service District to sell,
rent or lease a water, sewer or gas system. The bill also adds a requirement that the county commission of the county in which the
Public Service District was organized also approve the action.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.)