Senate Bill No. 135
(By Senators Dittmar, Craigo, Plymale, Brackenrich,
Withers and Blatnik)
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[Introduced March 1, 1993; referred to the Committee
on Government Organization; and then to the
Committee on the Judiciary.]
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A BILL to amend and reenact sections one-b and two, article
thirteen-a, chapter sixteen of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, relating
to consolidation of public service districts; and providing
for exception to consolidation in counties which have five
or fewer public service districts.
Be it enacted by the Legislature of West Virginia:
That sections 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 to read as
follows:
ARTICLE 13A. PUBLIC SERVICE DISTRICTS FOR WATER, SEWERAGE AND
GAS SERVICES.
§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 present such plan to the public
service commission for approval, disapproval, or modification:
Provided, That within ninety days of the effective date of this
section each county commission in this state 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 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:
Provided, however, That in counties with
five or fewer public service districts the public service
commission may not require consolidation if the county commission
of the county and each public service district in the county
agree that consolidation is not in the best interest of the
customers of the public service district. 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. 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 and such order 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 any
public 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, 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 on
its 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 first
instance 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 service
district 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, where
facilities, 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 multicounty area to achieve efficiency of
operations:
Provided, That counties with five or fewer public
service districts are not required to consolidate if the county
commission of the county and each public service district in the
county agree that consolidation is not in the best interest of
the customers of the public service district: Provided, however,
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, notice of
hearing and approval by the public service commission shall apply
with like effect as if a district were being created. The
commission 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 further, 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 filed by the county commission
with the secretary of state and the public service commission by
the first day of July of each year.
NOTE: The purpose of this bill is to exempt counties with
five or fewer public service districts from the statutory
requirement that county commissions consolidate those public
service districts.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.
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