WEST virginia legislature
2022 regular session
Committee Substitute
for
House Bill 3122
By Delegates Riley and Rowe
[Originating in the Committee on Government Organization; February 9, 2022]
A BILL to amend and reenact §16-13D-1, §16-13D-2, §16-13D-3, §16-13D-4, §16-13D-5, §16-13D-6, §16-13D-8, §16-13D-9, §16-13D-10, §16-13D-11, §16-13D-12, §16-13D-13, §16-13D-14, §16-13D-15, §16-13D-17, and §16-13D-21,of the Code of West Virginia, 1931, as amended; and to amend said code by adding thereto a new section, designated §16-13D-22, all relating to the establishment and operation of regional water, wastewater, and stormwater authorities.
Be it enacted by the Legislature of West Virginia:
ARTICLE 13D. REGIONAL WATER AND WASTEWATER AND STORMWATER AUTHORITY ACT.
§16-13D-1. Statement of purpose.
It is the purpose of this
article, to permit certain public agencies a public agency, or more
than one public agency to make the most efficient use of its or
their powers relating to public water supplies, and the transportation
and treatment of wastewater, and the management of stormwater by
enabling them a public agency, or more than one public agency to
cooperate with other public agencies on a basis of mutual advantage and thereby
to provide services and facilities to participating public agencies and to
provide for the establishment for such the purpose of a
quasi-governmental public corporation which shall be known as a regional water
authority, or where appropriate, a regional wastewater authority, or
regional water and wastewater authority a regional stormwater authority,
or any combination thereof. The function of the regional water authority
shall be to secure a source of water on a scale larger than is feasible for an
individual public agency or agencies acting alone, and to sell such
water to public service districts, municipalities, publicly and privately owned
water utilities, and others. The function of the regional wastewater authority
shall be to enable a public agency or agencies to join
together to provide the most economical method of transportation and
treatment of wastewater and to provide such transportation and treatment
services to public service districts, municipalities, publicly and privately
owned wastewater utilities, and others. The function of the regional
stormwater authority shall be to enable a public agency or agencies to provide
storm, flood and surface water drainage management services to public service
districts, municipalities, publicly and privately owned stormwater utilities,
and others. The function of the regional water and wastewater authority
a regional authority that provides any combination of water, wastewater, or
stormwater service shall be to enable a public agency or
agencies to join together to carry out the joint functions of both
a water, wastewater, or stormwater regional water authority. and a
regional wastewater authority
In addition to the purposes
for which it may have originally been created, any authority created pursuant
to this article shall have the power to may enter into agreements
with public agencies, privately owned utilities, and other authorities, for the
provision of related services including, but not limited to the following: A
administration, operation and maintenance, billing, and collection.
§16-13D-2. Definitions.
For the purposes of this article:
(a) The term “authority” shall
mean means any regional water authority, regional wastewater
authority, regional stormwater authority, or regional water and
wastewater authority any combination thereof organized pursuant to
the provisions of this article; and
(b) The term “public agency”
shall mean means any municipality, county, public service
district, or other political subdivision of this state; and
(c) The term “stormwater,” “stormwater system” or “stormwater works” means a stormwater system in its entirety or any integral part thereof used to collect and dispose of stormwater and an associated stormwater management program. It includes all facilities, structures and natural water courses used for collecting and conducting stormwater to, through and from drainage areas to the points of final outlet, including, but not limited to, any and all of the following: inlets, conduits, outlets, channels, ponds, drainage easements, water quality facilities, catch basins, ditches, streams, gulches, flumes, culverts, syphons, retention or detention basins, dams, floodwalls, levies, pipes, flood control systems and pumping stations, and associated stormwater management program. The term “stormwater system” and “stormwater works” shall not include highways, road and drainage easements, and/or stormwater facilities constructed, owned and/or operated by the West Virginia Division of Highways.
§16-13D-3. Individual or joint exercise of powers by certain public agencies; agreements among agencies, contents; submission to Public Service Commission; filing of agreement; prohibition against competition; retirement of bonds.
(a) Any powers, privileges, or authority of a public agency of this state relating to public water supplies, or the transportation or treatment of wastewater, or the operation of a stormwater system may be exercised individually or jointly with any other public agency of this state, or with any agency of the United States to the extent that the laws of the United States permit. Any agency of the state government when acting individually or jointly with any public or private agency may exercise all of the powers, privileges and authority conferred by this act upon a public agency.
(b) Any public agency may individually
organize a regional water authority, regional wastewater authority, regional
stormwater authority, or any combination thereof. Any public agency may
enter into agreements with one or more other public agencies for the purpose of
organizing a regional water authority, regional wastewater authority, regional
stormwater authority, or regional water and wastewater authority any
combination thereof. Appropriate action by ordinance, resolution, or
otherwise pursuant to law of the governing bodies of the participating public agency
or agencies required by the provisions of Chapter 8 and Chapter 16 of
this code shall be necessary before any such agreement may enter
into force.
(c) For an agency acting individually, the organizational document for the authority shall specify the following:
(1) The precise organization, composition and nature of the authority created thereby together with the powers delegated thereto;
(2) Its purpose or purposes;
(3) The manner of financing for the authority and of establishing and maintaining a budget therefor;
(4) The manner of acquiring, holding and disposing of real and personal property of the authority; and
(5) Any other necessary and proper matters.
(c) (d) Any such agreement between two
or more public agencies to organize an authority shall specify the
following:
(1) Its duration;
(2) The precise organization, composition and nature of the authority created thereby together with the powers delegated thereto;
(3) Its purpose or purposes;
(4) The manner of financing for the authority and of establishing and maintaining a budget therefor;
(5) The permissible methods
for partial or complete termination of the agreement and for disposing of
property upon such partial or complete termination;
(6) The manner of acquiring, holding, and disposing of real and personal property of the authority;
(7) Any other necessary and proper matters.
(d) (e) Any such agreement between two
or more public agencies to organize an authority may be amended to include
additional public agencies by consent of two thirds of the signatories to the
agreement, if no terms of agreement are changed, otherwise a new agreement with
the new public agency shall be drawn. Where fewer than three public agencies
come together to form an authority, both parties must shall
consent to the amendment of the agreement to include additional public
agencies.
(e) (f) Prior to taking effect Any
agency acting individually to organize an authority and every agreement
made hereunder shall be submitted to the Public Service Commission for its
approval. The Public Service Commission shall, within 30 days of the filing
date, notify the agency whether the agency has filed all required documentation
regarding the organization or agreement that is required by the Commission. If
the Commission determines that additional information is needed it will inform
the agency of the information needed. Failure by the Public Service
Commission to approve or disapprove an agency’s decision to
individually organize an authority or an agreement submitted hereunder
within 90 days of its submission the date that the Commission before
it all necessary information from the agency shall constitute approval
thereof: Provided, That the 90-day Commission review period may be
extended upon request of the agency.
(f) (g) Prior to taking effect, an the
organizational document of the agency acting individually or the agreement between
two or more agencies made hereunder shall be filed with the clerk of the
county commission of each county in which a the agency acting
individually, or in the case of an authority organized by agreement of two or
more agencies, in the county where each member of the authority is
located and such the agreement then also shall be filed with the
Secretary of State, accompanied by a certificate from the clerk of the county
commission of the county, or counties, where filed, stating that such the
agreement has been filed in such that county.
(g) (h) A public agency which enters into an
agreement made hereunder shall may not offer or provide water, or
wastewater, or stormwater services in competition with another public
agency entering into such the agreement.
(h) (i) A public agency which enters into an agreement made
hereunder shall may not withdraw from the agreement until such
time as the outstanding bonded indebtedness of the authority is retired or the
bond holders are otherwise protected.
§16-13D-4. Furnishing of
funds, personnel or services by certain public agencies, agreements for
purchase, sale, distribution, transmission, transportation, collection,
disposal and treatment of water, or wastewater, or
stormwater; terms and conditions.
Any public agency acting
individually to organize an authority or entering into an agreement
pursuant to this article may appropriate funds and may sell, lease, give, or
otherwise supply to the authority created such the personnel or
services for the operation of such the authority as may be within
its legal power to furnish.
Subject to the prior
approval of the Public Service Commission pursuant to §24-2-12 of this code, A any public agency, whether or not a
party to an agreement pursuant to this article, and any publicly or privately
owned water distribution company may enter into contracts with any regional water
authority or regional water and wastewater authority created pursuant to
this article for the purchase of water from such the authority or
the sale of water to the authority, the treatment of water by either party,
and the distribution or transmission of water by either party and any such
authority may enter into such the contracts., subject
to the prior approval of the Public Service Commission pursuant to the
provisions of §24-2-12 of this code: The Public
Service Commission shall, within 30 days of the filing date, notify the parties
to the contract whether they have filed all required documentation regarding
the contract. If the Commission determines that additional information
is needed it will inform the agency of the information needed. The Public
Service Commission shall act on a filing submitted hereunder within 90 days of
the date that the Commission has before it all necessary information from the
parties to the contract. Failure of the Commission to act on the filing within
the 90-day period shall constitute approval thereof; Provided, That the 90-day Commission review period may be
extended upon request of the parties to the contract.
Any public agency, whether
or not a party to an agreement pursuant to this act, and any publicly or
privately owned wastewater transportation or treatment system may enter into
contracts with any regional wastewater authority or regional water and
wastewater authority created pursuant to this article for the
transportation and treatment of wastewater by either party and any such
authority may enter into such the contracts, subject to the prior
approval of the Public Service Commission pursuant to the provisions of
§24-2-12 of this code.: Provided, That if the Public Service
Commission has not acted on any such proposed contract within 90 days of its
filing, such approval shall be deemed to have been granted. The Public
Service Commission shall, within 30 days of the filing date, notify the parties
to the agreement whether they have filed all required documentation regarding
the contract. If the Commission determines that additional information
is needed it will inform the agency of the information needed. The Public
Service Commission shall act on a filing submitted hereunder within 90 days of
the date that the Commission has before it all necessary information from the
parties to the contract. Failure by the Commission to act within the 90-day
period shall constitute approval thereof: Provided, That the 90-day
Commission review period may be extended on upon request of the parties to the
contract.
Any public agency, whether or not a party to an agreement pursuant to this article, and any publicly or privately owned stormwater system may enter into contracts with any regional authority created pursuant to this article for the collection and disposition of stormwater by either party and any authority may enter into contracts.
Any such contract
may include an agreement for the purchase of water not actually received or the
treatment of wastewater not actually treated, or the collection and
disposition of stormwater not actually collected and disposed. No such
contract shall may be made for a period in excess of 40 years,
but renewal options may be included therein. The obligations of any public
agency under any such contract shall be payable solely from the revenues
produced from such the public agency’s water, or stormwater
and wastewater system, and the Public Service Commission, in the case of a
public agency whose rates are subject to its jurisdiction, shall permit the
public agency to recover through its rates revenues sufficient to meet its
obligations under such the agreement.
§16-13D-5. Declaration of authority organization, when quasi-governmental public corporation.
Upon the approval of the
Public Service Commission and filing with the Secretary of State, the Secretary
of State shall declare the authority organized and give it the corporate name
of regional water authority number ____ , regional wastewater authority number
____ , regional stormwater authority number ____, or any combination
thereof regional water and wastewater authority number ____,
whichever is appropriate. Thereupon the authority shall be a quasi-governmental
public corporation.
§16-13D-6. Governing body; appointments; terms of members, voting rights.
The governing body of the
authority shall consist of not less than three persons selected by the participating
public agencies governing body of the public agency. Each When
the authority is organized by more than one public agency, each
participating public agency shall appoint at least one and not more than two
members member.
The governing body of the authority shall consist of at least one member of the following categories: (1) A professional engineer licensed by the State of West Virginia, (2) a certified public accountant licensed by the State of West Virginia, or (3) an attorney licensed and in good standing with the West Virginia State Bar. Each member of the board must be a rate-paying residential customer of the authority.
For purposes of this section, “rate-paying residential customer” means a person who: (1) In the case of water or wastewater service, is physically connected to and actively receiving residential utility services from the authority; or (2) in the case of stormwater service, has stormwater conveyed away from the residential property by facilities owned by the authority. Each member’s full term shall be not less than one year nor more than four years and initial terms shall be staggered in accordance with procedures set forth in the organization document or agreement provided for in §16-13D-3 of this code, and amendments thereto. In the case of an authority which is made up by the agreement of two public agencies, each public agency shall appoint at least two representatives to the governing body.
When the authority is
organized by more than one public agency
The the manner of selection of such the governing
body and terms of office shall be set forth in the agreement provided for in
§16-13D-3 of this code, and amendments thereto. The governing body of the
authority shall elect one of its members as president, one as treasurer and one
as secretary.
Each member shall have one
vote in any matter that comes before the authority for decision. However, when
the authority is organized by more than one public agency, the member
agencies shall, in the original agreement establishing the authority, set forth
any special weighing of such the votes based upon population
served, volumes of water purchased, volumes of wastewater treated, volumes
of stormwater collected and disposed numbers of customers, or some other
criterion, so as to maintain fairness in the decisions and operations of the
authority.
§16-13D-8. Powers of governing body.
For the purpose of providing
a water supply, transportation facilities, or treatment system to the
participating public agencies, and others, the governing body of the authority
shall have the following operating as an authority as provided in this
article, powers, authorities, and privileges of the authority shall
include, but are not limited to, the following:
(1) To accept by gift or
grant from any person, firm, corporation, trust, or foundation, or from this
state or any other state or any political subdivision or municipality thereof,
or from the United States, any funds or property or any interest therein for
the uses and purposes of the authority and to hold title thereto in trust or
otherwise and to bind the authority to apply the same according to the terms of
such the gift or grant;
(2) To sue and be sued;
(3) To enter into
franchises, contracts and agreements with this or any other state or the United
States or any municipality, political subdivision or authority thereof, or any
of their agencies or instrumentalities, or any public or private person,
partnership, association, or corporation of this state or of any other state or
the United States, and this state and any such municipality, political
subdivision, authority, or any of their agencies or instrumentalities, and any such
public or private person, partnership, association, or corporation is hereby
authorized to may enter into contracts and agreements with such
the authority for any term not exceeding 40 years for the planning,
development, construction, acquisition, maintenance, or operation of any
facility or for any service rendered to, for, or by said the
authority;
(4) To borrow money and evidence the same by warrants, notes, or bonds as hereinafter provided in this article, and to refund the same by the issuance of refunding obligations;
(5) To acquire land and
interests in land by gift, purchase, exchange, or eminent domain, such
the power of eminent domain to be exercised within or without the
boundaries of the authority in accordance with provisions of §54-2-1
et seq. of this code;
(6) To acquire by purchase
or lease, construct, install, and operate reservoirs, pipelines, wells, check
dams, pumping stations, water purification plants, and other facilities for the
production, distribution, and utilization of water, and
transportation facilities, pump stations, lift stations, treatment facilities,
and other facilities for the transportation and treatment of wastewater, and
inlets, conduits, outlets, channels, ponds, drainage easements, water quality
facilities, catch basins, ditches, streams, gulches, flumes, culverts, syphons,
retention or detention basins, dams, floodwalls, levies, pipes, flood control
systems, pumping stations, and treatment facilities and to own and hold such
the real and personal property as may be necessary to carry out the
purposes of its organization subject to the advance approval of the Public
Service Commission pursuant to Chapter 24 of this code for any proposed
acquisition, construction, installation or operation. The Public Service Commission shall, within 30 days of
a request for approval submitted hereunder, notify the authority whether its
filing is complete. If the Commission determines that additional information
is needed it will inform the agency of the information needed. Notwithstanding
the timeframes for Commission approval of public utility projects set forth in
Chapter 24, the Commission shall act on authority proposals within the
following timeframes.: Provided,
That the
The Public Service Commission shall act on all proposals
submitted hereunder under this paragraph by an authority that
provides only water service or only wastewater service, or by an authority that
does not seek a rate increase within 120 days of filing with the
commission the date that the authority files with the Commission a
complete application.: Provided, however, That if Failure
of the Public Service Commission has not to act acted
within such the 120-day period of time, shall be deemed
an approval of such proposal shall be deemed granted: Provided,
however, That the Commission’s 120-day review period may be extended upon
request of the authority.
The Public Service Commission shall act on all proposals submitted hereunder for which the authority seeks a rate increase and the authority provides water and wastewater services, water and stormwater services, wastewater and stormwater services, or water and wastewater and stormwater services, within 180 days of the date the authority files with the Commission the necessary information showing the basis of any project related rates, fees, and charges or other information as the Commission considers necessary: Provided, That the information shall include an explanation of the amount and basis for assigning and allocating total costs between the water operations, the wastewater operations, and if applicable the stormwater operations. Failure by the Commission to act within the 180-day period shall constitute approval thereof. Provided, however, That the 180-day Commission review period may be extended upon request of the authority.
(7) To have the general management, control, and supervision of all the business, affairs, property, and facilities of the authority, and of the construction, installation, operation, and maintenance of authority improvements, and to establish regulations relating thereto;
(8) To hire and retain
agents, employees, engineers, and attorneys and to determine their
compensation. The governing body shall select and appoint a general manager of
the authority who shall serve at the pleasure of said governing body. The
general manager shall have training and experience in the supervision and
administration of the system or systems operated by the authority and shall
manage and control the system under the general supervision of said the
governing body. All employees, servants and agents of the authority shall be
under the immediate control and management of said general manager. The general
manager shall perform all such other duties as may be prescribed by said
the governing body and shall give the governing body a good and
sufficient surety company bond in a sum to be set and approved by the governing
body conditioned upon the satisfactory performance of the general manager’s
duties. The governing body may also require that any other employees be bonded
in such amount as it shall determine. The cost of said the bonds
shall be paid out of the funds of the authority;
(9) To adopt and amend rules and regulations not in conflict with the Constitution and laws of this state, necessary for the carrying on of the business, objects, and affairs of the governing body and of the authority;
(10) To have and exercise
all rights and powers necessary or incidental to or implied from the specific
powers granted herein. Such The specific powers shall may
not be considered as a limitation upon any power necessary or appropriate to
carry out the purposes of this article.
§16-13D-9. Revenue bonds.
For constructing or
acquiring any water supply, wastewater transportation, or treatment system,
or stormwater system for the authorized purposes of the authority, or
necessary or incidental thereto, and for constructing improvements and
extensions thereto, and also for reimbursing or paying the costs and expenses
of creating the authority, the governing body of any such authority is
hereby authorized to may borrow money from time to time and in
evidence thereof issue the revenue bonds of such the authority. Such
The revenue bonds are hereby made a lien on the revenues produced from
the operation of the authority’s system, but shall may not be
general obligations of the public agency individually organizing the
authority or public agencies participating in the agreement. All revenue
bonds issued under this article shall be signed by the president of the
governing body of the authority and attested by the secretary of the governing
body of the authority and shall contain recitals stating the authority under
which such the bonds are issued and that they are to be paid by
the authority from the net revenue derived from the operation of the authority’s
system and not from any other fund or source and that said the
bonds are negotiable and payable solely from the revenues derived from the
operation of the system under control of the authority: Provided, That
in the case of a regional water and wastewater authority providing
combined service, the statutory lien created hereby shall only be a lien on
the revenues of that service funded by the proceeds of the sale of the bonds,
it being understood that such the combined authority shall
maintain separate books and records for its water and wastewater
operations. Such The bonds may be issued in one or more series,
may bear such the date or dates, may mature at such the
time or times not exceeding 40 years from their respective dates, may bear
interest at a rate not exceeding two percent above the interest rate on
treasury notes, bills or bonds of the same term as the term of the bond or
bonds the week of closing on the bond or bonds as reported by the Treasury of
the United States, may be payable at such the times, may be in such
the form, may carry such the registration privileges, may
be executed in such the manner, may be payable at such the
place or places, may be subject to such the terms of redemption
with or without premium, may be declared or become due before maturity date
thereof, may be authenticated in any manner, and upon compliance with such
the conditions, and may contain such the terms and
covenants as may be provided by resolution or resolutions of the governing body
of such the authority. Notwithstanding the form or tenor thereof,
and in the absence of any express recital on the face thereof, that the bond is
nonnegotiable, all such the bonds shall be, and shall be treated
as, negotiable instruments for all purposes. Bonds bearing the signatures of
officers in office on the date of the signing thereof shall be valid and
binding for all purposes notwithstanding that before the delivery thereof any
or all of the persons whose signatures appear thereon shall have ceased to be such
officers. Notwithstanding the requirements or provisions of any other law, any
such bonds may be negotiated or sold in such the manner and at such
the time or times as is found by the governing body to be most
advantageous, and all such bonds may be sold at such the price
that the interest cost of the proceeds therefrom does not exceed three percent
above the interest rate on treasury notes, bills or bonds of the same term as
the term of the bond or bonds the week of closing on the bond or bonds as
reported by the Treasury of the United States, based on the average maturity of
such the bonds and computed according to standard tables of bond
values. Any resolution or resolutions providing for the issuance of such
the bonds may contain such covenants and restrictions upon the
issuance of additional bonds thereafter as may be deemed considered
necessary or advisable for the assurance of the payment of the bonds thereby
authorized.
§16-13D-10. Items included in cost of properties.
The cost of any water
supply, wastewater transportation, or treatment system, or
stormwater system acquired or constructed under the provisions of
this article shall be deemed considered to include the cost of
the acquisition or construction thereof, the cost of all property rights,
easements and franchises deemed considered necessary or
convenient therefor and for the improvements and extensions thereto; interest
upon bonds prior to and during construction or acquisition and for six months
after completion of construction or of acquisition of the improvements and
extensions; engineering, fiscal agents and legal expenses; expenses for
estimates of cost and of revenues, expenses for plans, specifications and
surveys; other expenses necessary or incident to determining the feasibility or
practicability of the enterprise, administrative expense, and such other
expenses as may be necessary or incident to the financing herein authorized,
and the construction or acquisition of the properties and the placing of same
in operation, and the performance of the things herein required or permitted,
in connection with any thereof.
§16-13D-11. Bonds may be secured by trust indenture.
In the discretion and at
the option of the governing body of the authority, such the bonds
may be secured by a trust indenture by and between the authority and a
corporate trustee, which may be a trust company or bank having powers of a
trust company within or without the State of West Virginia, but no such
trust indenture shall may convey, mortgage, or create any
lien upon the water supply, wastewater transportation, or
treatment system, or stormwater system, or any part thereof of the
authority or its member public agencies. The resolution authorizing the bonds
and fixing the details thereof may provide that such the trust
indenture may contain such provisions for protecting and enforcing the
rights and remedies of bondholders as may be reasonable and proper, not in
violation of law, including covenants setting forth the duties of the authority
and the members of its governing body and officers in relation to the
construction or acquisition of the water supply, wastewater transportation,
or treatment system, or stormwater system, and the improvement,
extension, operation, repair, maintenance and insurance thereof, and the
custody, safeguarding and application of all moneys, and may provide that all
or any part of the construction work shall be contracted for, constructed and
paid for, under the supervision and approval of consulting engineers employed
or designated by the governing body and satisfactory to the original bond
purchasers, their successors, assignees or nominees, who may be given the right
to require the security given by contractors and by any depository of the
proceeds of bonds or revenues of the water supply, the wastewater
transportation, or treatment system, or stormwater system,
or other money pertaining thereto be satisfactory to such the
purchasers, their successors, assignees or nominees. Such The
indenture may set forth the rights and remedies of the bondholders and such
the trustee.
§16-13D-12. Sinking fund for revenue bonds.
At or before the time of
the issuance of any bonds under this article the governing body of the
authority shall by resolution or in the trust indenture provide for the
creation of a sinking fund and for monthly payments into such the
fund from the revenues of the water supply, wastewater transportation or
treatment system, or stormwater system operated by the authority such
sums in excess of the cost of maintenance and operation of such the
properties as will be sufficient to pay the accruing interest and retire the
bonds at or before the time each will respectively become due and to establish
and maintain reserves therefor. All sums which are or should be, in accordance
with such the provisions, paid into such the
sinking fund shall be used solely for payment of interest and for the
retirement of such bonds at or prior to maturity as may be provided or
required by such resolutions.
§16-13D-13. Collection, etc., of revenues and enforcement of covenants; default; suit, etc., by bondholder or trustee to compel performance of duties; appointment and powers of receiver.
The governing body of any
such authority shall have power to may insert enforceable
provisions in any resolution authorizing the issuance of bonds relating to the
collection, custody, and application of revenues of the authority from the
operation of the water supply, wastewater transportation or treatment system,
or stormwater system under its control and to the enforcement of the
covenants and undertakings of the authority. In the event there shall be
If there is a default in the sinking fund provisions aforesaid or
in the payment of the principal or interest on any of such the
bonds or, in the event if the authority or its governing body or
any of its officers, agents, or employees, shall fail or refuse to
comply with the provisions of this article, or shall default in any
covenant or agreement made with respect to the issuance of such the
bonds or offered as security therefor, then any holder or holders of such
the bonds and any such trustee under the trust indenture, if there be
is one, shall have the right may by suit, action, mandamus,
or other proceeding instituted in the circuit court for the county or any of
the counties wherein the authority extends, or in any other court of competent
jurisdiction, to enforce and compel performance of all duties required
by this article or undertaken by the authority in connection with the issuance
of such the bonds, and upon application of any such holder or
holders, or such the trustee, such the court shall,
upon proof of such the defaults, appoint a receiver for the
affairs of the authority and its properties, which receiver so appointed shall
forthwith directly, or by his or her agents and attorneys, enter into
and upon and take possession of the affairs of the authority and each and every
part thereof, and hold, use, operate, manage, and control the same
authority, and in the name of the authority exercise all of the rights
and powers of such the authority as shall be is deemed
considered expedient, and such the receiver shall have
power and authority to may collect and receive all revenues and
apply same them in such the manner as the court
shall direct. Whenever the default causing the appointment of such the
receiver shall have has been cleared and fully discharged and all
other defaults shall have been cured, the court may in its discretion
and after such the notice and hearing as it deems considers
reasonable and proper direct the receiver to surrender possession of the
affairs of the authority to its governing body. Such The receiver
so appointed shall have no power to may not sell, assign,
mortgage, or otherwise dispose of any assets of the authority except as
hereinbefore provided.
§16-13D-14. Statutory mortgage lien created; foreclosure thereof.
There shall be and
is hereby created a statutory mortgage lien upon such the water
supply, wastewater transportation or treatment system, or stormwater system
of the authority, which shall exist in favor of the holders of bonds hereby
authorized to be issued, and each of them, and such the system
shall remain subject to such the statutory mortgage lien until
payment in full of all principal of and interest on such the
bonds.
§16-13D-15. Rates and charges.
The governing body shall by
appropriate resolution make provisions for the payment of said bonds by fixing
rates, fees and charges, for the use of all services rendered by such the
authority, which rates, fees and charges shall be sufficient to pay the costs
of operation, improvement and maintenance of the authority’s water supply,
or wastewater transportation and/or treatment system, or stormwater
system, to provide an adequate depreciation fund, provide an adequate
sinking fund to retire said the bonds and pay interest thereon
when due, and to create reasonable reserves for such those
purposes. Said The fees, rates or charges shall be sufficient to
allow for miscellaneous and emergency or unforeseen expenses. The authority
shall maintain a working capital reserve in an amount of no less than
one-eighth of all expenses incurred by the authority on an annual basis: Provided,
That this working capital reserve shall be separate and distinct from, and in
addition to: (1) any repair and replacement fund that may be required by bond
covenants, and (2) any other funds held by the authority. The resolution of
the governing body authorizing the issuance of revenue bonds may include
agreements, covenants or restrictions deemed considered necessary
or advisable by the governing body to effect the efficient operation of the
system and to safeguard the interests of the holders of the revenue bonds and
to secure the payment of the bonds and the interest thereon. The rates, fees
and charges for water, wastewater, or both, established by the authority shall
be subject to review and approval by the Public Service Commission pursuant to Chapter
24 of this code.
The Public Service Commission shall, within 30 days of a rate filing, notify the authority whether its rate filing is complete. If the Commission determines that additional information is needed it will inform the authority of the information needed. Notwithstanding the timeframes for Commission review of rate applications set forth in Chapter 24, the Commission shall act on authority rate applications within the following timeframes:
(1) The Public Service Commission shall act on a rate filing by an authority that provides only water service or only wastewater service within 120 days of the date that the authority files with the Commission the necessary information showing the basis of the rates, fees, and charges or other information as the commission considers necessary. Failure of the Commission to act within the 120-day time period shall constitute approval thereof: Provided, That the 120-day period may be extended upon request of the authority.
(2) The Public Service Commission shall act on a rate filing by an authority that provides water and wastewater services, water and stormwater services, wastewater and stormwater services, or water and wastewater and stormwater services, within 180 days of the date that the authority files with the Commission the necessary information showing the basis of the rates, fees, and charges or other information as the Commission considers necessary: Provided, That the information shall include an explanation of the amount and basis for assigning and allocating total costs between the water operations, the wastewater operations, and if applicable the stormwater operations. Failure by the Commission to act within the 180-day period shall constitute approval thereof: Provided, That the 180-day Commission review period may be extended upon request of the authority.
Notwithstanding the provisions of any other law or charter to the contrary, any regional stormwater authority may provide storm, flood and surface water drainage management services to areas located outside its jurisdiction from which stormwater affects or drains into the area served by the regional stormwater authority, and any regional stormwater authority may assess fees for providing storm, flood and surface water draining management services to be paid by the owner of each and every lot, parcel of real estate or building that in any way uses or is served by the stormwater system. The Public Service Commissioner has no jurisdiction to regulate the rates charged for storm, flood, and surface water drainage management services.
§16-13D-17. Exemption of bonds from taxation.
Said The bonds and the interest thereon, together
with all properties and facilities of the authority owned or used in connection
with the water, or wastewater system, or stormwater system,
and all the moneys, revenues, and other income of such the
authority derived from such the water, or
wastewater system, or stormwater system shall be exempt from all
taxation by the state of West Virginia or any county, municipality, political
subdivision, or agency thereof.
§16-13D-21. Citation of article.
This article may be known and cited as the “Regional Water and Wastewater, and Stormwater Authority Act”.
§16-13D-22. Acquisition by condemnation.
For the purpose of acquiring any lands, rights or easements considered necessary or incidental for the purposes of the authority, each authority has the right of eminent domain within or without the boundaries of the authority to the same extent and to be exercised in the same manner as now or hereafter provided by law for the right of eminent domain by cities, incorporated towns and other municipal corporations: Provided, That the power of eminent domain provided in this section does not extend to highways, road and drainage easements, or stormwater facilities constructed, owned or operated by the West Virginia Division of Highways without the express agreement of the Commissioner of Highways.
NOTE: The purpose of this bill is to establish the operation of regional water, wastewater, and stormwater authorities.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.