COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 197
(By Senators Ball, Kessler, Schoonover, Deem, Snyder and Love)
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[Originating in the Committee on the Judiciary;
reported March 3, 1999.]
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A BILL to amend and reenact section twelve-a, article nineteen,
chapter eight of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; to amend and reenact section
ten, article twenty of said chapter; to further amend said
article by adding thereto a new section, designated section
ten-a; to amend and reenact section nine, article thirteen-a,
chapter sixteen of said code; and to further amend said
article by adding thereto three new sections, designated
sections nine-a, nine-b and nine-c, all relating to municipal,
county and public service district water and sewer services;
providing that owners of property are given notice of user
delinquencies and that they are not liable for the unpaid
charges for services by users for more than one hundred eighty
days unless the owner contracted directly with the provider for the services; providing for the filing of liens and
foreclosure actions under certain circumstances; cooperation
among utilities to discontinue services; and compelling
property owners to connect to sewer service.
Be it enacted by the Legislature of West Virginia:
That section twelve-a, article nineteen, chapter eight of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted; that section ten, article twenty
of said chapter be amended and reenacted; that said article be
further amended by adding thereto a new section, designated section
ten-a; that section nine, article thirteen-a, chapter sixteen of
said code be amended and reenacted; and that said article be
further amended by adding thereto three new sections, designated
sections nine-a, nine-b and nine-c, all to read as follows:
CHAPTER 8. MUNICIPAL CORPORATIONS.
ARTICLE 19. MUNICIPAL AND COUNTY WATERWORKS AND ELECTRIC POWER
SYSTEMS.
§8-19-12a. Delinquent service rates and charges; liens; civil
action; deferral of filing fees and court costs; foreclosure actions.
(a) When rates or charges for water services or facilities
remain unpaid for a period of thirty days after becoming due and
payable, the user of the services and facilities provided is
delinquent and shall be held liable at law until such time as all
the rates and charges are fully paid. The user shall be given
notice of each delinquency by certified mail, return receipt
requested, stating in large, bold type that the municipality or
county commission may shut off and discontinue the user's water
services or facilities for rates or charges that remain delinquent
for more than thirty days after becoming due and payable.
(b) The property owner is also liable at law and the property
served subject to a lien for all delinquent rates and charges by
the users of such services or facilities on the premises:
Provided, That such liability shall not exceed one hundred eighty
days of services rates and charges unless the owner contracts
directly with the municipality or county commission to purchase the
services or facilities for the property or the user. The property
owner shall be given notice of each delinquency by certified mail,
return receipt requested, stating in large, bold type that services
and facilities provided to the property have been delinquent for more than thirty days after becoming due and payable. Further, the
notice shall state that:
(1) The owner is liable and the property is subject to a lien
for one hundred eighty days of delinquent rates and charges; and
(2) To limit the owner's liability, the owner may request in
writing, by certified mail, return receipt requested, that the
municipality or county commission immediately shut off and
discontinue the user's services and facilities for such
delinquencies. The owner and the property are not liable for rates
and charges that accrue after the receipt by the municipality or
county commission of the written request.
(c) The municipality or county commission may shut off and
discontinue water services or facilities provided to the delinquent
users when rates or charges for services or facilities remain
unpaid for a period of thirty days after becoming due and payable.
Such services shall be shut off and discontinued no later than one
hundred eighty days after becoming delinquent or upon receiving
written request by the property owner.
(d) All delinquent rates and charges are liens on the real
property served of equal dignity, rank and priority with liens for
state, county, school and municipal taxes. The municipality or county commission have plenary power and authority to enforce liens
for delinquent rates and charges by filing a civil action in
circuit court in the county where the municipality or county
commission lie to recover the delinquent rates and charges plus
court fees, costs and reasonable attorney fees. All fees and costs
incidental to filing and maintaining such action shall be deferred
until the municipality or county commission collect the delinquent
account, fees and costs from the user or property owner.
(e) A municipality or county commission may foreclose upon the
served property for delinquent rates or charges for which a lien is
authorized by this section by filing and maintaining a civil action
in the circuit court of the county wherein the municipality or
county commission lie. The delinquency shall have existed or
continued for a period of two years from the date of the first
notice of delinquency to commence a foreclosure action in the
circuit court. In every action, the court is required to find that
the municipality or county commission exhausted all other remedies
for the collection of the delinquent account prior to filing the
action.
(f) The public service commission may promulgate rules to
effectuate the provisions of this section.
ARTICLE 20. COMBINED WATERWORKS AND SEWERAGE SYSTEMS.
§8-20-10. Power and authority of municipality to enact ordinances;
make rules and regulations; fix or change rates or charges.
(a) The governing body of a municipality availing itself of
the provisions of this article shall make, enact and enforce all
rules for the repair, maintenance, operation, management, care,
protection and use of the combined waterworks and sewage systems of
a municipality that are conducive to the preservation of public
health, comfort and convenience and to rendering the water supply
pure and the sewage harmless. The municipality shall establish
rates and charges for the services and facilities it furnishes that
are sufficient at all times to pay the cost of maintenance,
operation and depreciation of the combined water and sewer systems,
the principal of and interest on any bonds issued, the reserves or
other payments provided for in the proceedings authorizing the
issuance of any bonds, and other obligations incurred as provided
for under the provisions of this article.
(b) Separate rates or charges may be established for water and
sewer services respectively, or such rates and charges may be
combined for combined water and sewer services.
(c) The rates and charges, whether separate or combined, shall be established, revised and maintained as provided for by the
provisions of this article
. Such rates and charges shall become
payable as the governing body may determine by ordinance.
§8-20-10a. Delinquent service rates and charges; liens; civil
action; deferral of filing fees and court costs; foreclosure
actions.
(a) When rates or charges for water and sewer services or
facilities remain unpaid for a period of thirty days after becoming
due and payable, the user of the services and facilities provided
is delinquent and shall be held liable at law until such time as
all the rates and charges are fully paid. The user shall be given
notice of each delinquency by certified mail, return receipt
requested, stating in large, bold type that the municipality may
shut off and discontinue the user's water and sewer services or
facilities for rates or charges that remain delinquent for more
than thirty days after becoming due and payable.
(b) The property owner is also liable at law and the property
served subject to a lien for all delinquent rates and charges by
the users of such services or facilities on the premises:
Provided, That such liability shall not exceed one hundred eighty
days of service rates and charges unless the owner contracts directly with the municipality to purchase the services or
facilities for the property or the user. The property owner shall
be given notice of each delinquency by certified mail, return
receipt requested, stating in large, bold type that services and
facilities provided to the property have been delinquent for more
than thirty days after becoming due and payable. Further, the
notice shall state that:
(1) The owner is liable and the property is subject to a lien
for up to one hundred eighty days of delinquent rates and charges;
and
(2) To limit the owner's liability, the owner may request in
writing, by certified mail, return receipt requested, that the
municipality immediately shut off and discontinue the user's
services and facilities for such delinquencies. The owner and the
property are not liable for rates and charges that accrue after the
receipt by the municipality of the written request.
(c) The municipality may shut off and discontinue water
services or facilities provided to the delinquent users when rates
or charges for services or facilities remain unpaid for a period of
thirty days after becoming due and payable. Such services shall be
shut off and discontinued no later than one hundred eighty days after becoming delinquent or upon receiving written request by the
property owner.
(d) All delinquent rates and charges are liens on the real
property served of equal dignity, rank and priority with liens for
state, county, school and municipal taxes. The municipality has
plenary power and authority to enforce liens for delinquent rates
and charges by filing a civil action in the circuit court in the
county where the municipality lies to recover the delinquent rates
and charges plus court fees, costs and reasonable attorney fees.
All fees and costs incidental to filing and maintaining such action
shall be deferred until the municipality collects the delinquent
account, fees and costs from the user or property owner.
(e) A municipality may foreclose upon the property served for
delinquent rates or charges for which a lien is authorized by this
section by filing and maintaining a civil action in the circuit
court of the county wherein the municipality lies. The delinquency
shall have existed or continued for a period of two years from the
date of the first notice of delinquency to commence a foreclosure
action in the circuit court. In every action, the court is
required to find that the municipality exhausted all other remedies
for the collection of the delinquent account prior to filing the action.
(f) The public service commission may promulgate rules to
effectuate the provisions of this section.
CHAPTER 16. PUBLIC HEALTH.
ARTICLE 13A. PUBLIC SERVICE DISTRICTS FOR WATER, SEWAGE AND GAS
SERVICES.
§16-13A-9. Service rates and charges.
(a) The board shall make, enact and enforce all rules to
effectuate the acquisition, construction, improvement, extension,
management, maintenance, operation, care, protection and use of
public service properties owned or controlled by the district. The
board shall establish rates and charges for the services and
facilities it furnishes that are sufficient at all times,
notwithstanding any other provisions of law, to pay the cost of
maintenance, operation and depreciation of the public service
properties, the principal of and interest on any bonds issued, the
reserves or other payments provided for in the proceedings
authorizing the issuance of any bonds, and other obligations
incurred as provided for under the provisions of this article.
(b) The schedule of rates and charges as established by the
board shall be based upon:
(1) The consumption of water or gas on premises connected with
the facilities, taking into consideration domestic, commercial,
industrial and public use of water and gas; and
(2) Any other basis or classification that is fair and
reasonable, taking into consideration the location of the premises
served and the nature and extent of the services and facilities
furnished.
(c) Water, sewer and gas services furnished to any one
premises may be billed on a single bill specifying the charges for
each service.
(d) The board shall require all users of services and
facilities furnished by the district to designate on every
application for services whether the applicant is a tenant or an
owner of the premises to be served. When the applicant is a
tenant, he or she shall state the name and address of the owner of
the premises to be served by the district.
(e) All new applicants for services shall deposit a minimum of
fifty dollars with the district to secure the payment of services
in the event they are delinquent. In the case of a combined water
and sewer public service district, the deposit shall be a minimum
of one hundred dollars. When a deposit is forfeited to pay service rates and charges that are delinquent at the time of disconnection
or termination of service, no reconnection or reinstatement of
services shall be made by the district until another minimum
deposit of fifty dollars, or one hundred dollars in the case of a
combined water and sewer public service district, has been remitted
to the district.
§16-13A-9a. Delinquent service rates and charges; liens; civil
action; deferral of filing fees and court costs; foreclosure
actions.
(a) When rates or charges for services or facilities remain
unpaid for a period of thirty days after becoming due and payable,
the user of the services and facilities provided is delinquent and
shall be held liable at law until such time as all the rates and
charges are fully paid. The user shall be given notice of each
delinquency by certified mail, return receipt requested stating in
large, bold type that the board may shut off and discontinue the
user's water and gas services or facilities for rates or charges
that remain delinquent for more than thirty days after becoming due
and payable.
(b) The property owner is also liable at law and the property
served subject to a lien for all delinquent rates and charges by the users of such services or facilities on the premises:
Provided, That such liability shall not exceed one hundred eighty
days of service rates and charges unless the owner contracts
directly with the public service district to purchase the services
or facilities for the property or the user. The property owner
shall be given notice of each delinquency by certified mail, return
receipt requested, stating in large, bold type that services and
facilities provided to the property have been delinquent for more
than thirty days after becoming due and payable. Further, the
notice shall state that:
(1) The owner is liable and the property subject to a lien for
up to one hundred eighty days of delinquent rates and charges; and
(2) To limit the owner's liability, the owner may request in
writing, by certified mail, return receipt requested, that the
board immediately shut off and discontinue the user's services and
facilities for such delinquencies. The owner and the property are
not liable for rates and charges that accrue after receipt by the
district of such written request.
(c) The board may shut off and discontinue water or gas
services or facilities provided to the delinquent users when rates
or charges for services or facilities remain unpaid for a period of thirty days after becoming due and payable. Such services shall be
shut off and discontinued no later than one hundred eighty days
after becoming due and payable or upon receiving written request by
the owner.
(d) All delinquent rates and charges are liens on the real
property served of equal dignity, rank and priority with liens for
state, county, school and municipal taxes. The public service
district has plenary power and authority to enforce liens for
delinquent rates and charges by filing a civil action in circuit
court in the county wherein the public service district lie to
recover the delinquent rates and charges plus court fees, costs and
reasonable attorney fees. All fees and costs incidental to filing
and maintaining such action shall be deferred until the public
service district collects the delinquent account, fees and costs
from the user or property owner.
(e) A public service district may foreclose upon the property
served for delinquent rates or charges for which a lien is
authorized by this section by filing and maintaining a civil action
in the circuit court of the county wherein the public service
district lies. The delinquency shall have existed or continued for
a period of two years from the date of the first notice of delinquency to commence a foreclosure action in the circuit court.
In every such action, the court is required to find that the public
service district exhausted all other remedies for the collection of
the delinquent account prior to filing the action.
(f) The public service commission shall promulgate rules to
effectuate the provisions of this section.
§16-13A-9b. Cooperation among utilities to discontinue service for
delinquent accounts; and to share account information.
(a) In the event that any publicly or privately owned utility,
city, incorporated town, other municipal corporation or other
public service district included within the district owns and
operates either water or sewer facilities, and the district owns
and operates the other water or sewer facilities, then the district
and the publicly or privately owned utility, city, incorporated
town, other municipal corporation or other public service district
shall covenant and contract to shut off and discontinue water or
sewer services for the nonpayment of water or sewer service fees
and charges. Any contracts entered into by a public service
district pursuant to this section shall be submitted to the public
service commission for approval.
(b) Any public service district providing water and sewer services to its customers has the right to terminate water services
for delinquency in payment of either water or sewer rates and
charges.
(c) Each public service district may exchange with other
public service districts a list of delinquent accounts.
(d) When one public service district is providing sewer
service and another public service district, or municipality
included within the boundaries of the sewer district, is providing
water service, and when the district providing sewer service
experiences a delinquency in payment, then the district or the
municipality providing water service shall terminate the water
service to the delinquent user or property owner upon the request
of the district providing sewer service. Any termination of water
service shall comply with the rules and orders of the public
service commission.
(e) The public service commission shall promulgate rules to
effectuate the provisions of this section.
§16-13A-9c. Compelling property owners to connect to sewer service
provided by a public service district.
(a) A district furnishing sewer facilities within the district
may require or compel, by petition to the circuit court of the county where the property is located, or may require the division
of health to compel all owners, users or occupants of all houses,
dwellings and buildings located near any such sewer facilities
where sewage will flow by gravity or be transported by such other
methods approved by the division of environmental protection or the
division of health including, but not limited to, vacuum and
pressure systems approved under the provisions of section nine,
article one, chapter sixteen of this code, to connect with and use
such facilities when:
(1) Such facilities can adequately serve the houses, dwellings
and buildings; and
(2) The court finds that the mandatory use of the sewer
facilities is necessary and essential for the health and welfare of
the inhabitants and residents of the district and of the state.
(b) The circuit court shall adjudicate the merits of the
petition to compel by summary hearing to be held within thirty days
of service of the petition to the owners, users or occupants.
(c) Once compelled by the court, the owner, user or occupant
shall cease to use any other means for the collection, treatment
and disposal of sewage and waste material including, but not
limited to, vacuum and pressure systems approved under the provisions of section nine, article one, chapter sixteen of this
code.
(d) When the public service district mandates that the
property owner connect to the sewer facilities, even when sewage
from the dwellings does not flow to the main line by gravity and
the property will require renovation to the existing dwellings'
exterior plumbing in order to connect to the main sewer line, the
board shall authorize the district to pay reasonable costs for the
renovations to the exterior plumbing, including, but not limited
to, installing, operating, maintaining and purchasing a pump or
other renovation approved by the division of health. Maintenance
and operation costs for the extra installation shall be reflected
in the district's rates and charges subject to the approval of the
public service commission.
(e) When a district makes a sewer facility available to an
owner, user or occupant of a house, dwelling or building located
near the sewer facility and the engineer for the district has
certified that the sewer facilities are available to and are
adequate to serve the owner, user or occupant and sewage will flow
by gravity or be transported by any other methods approved by the
division of environmental protection or the division of health from the house, dwelling or building into the sewer facilities, the
district may charge and the owner, user or occupant shall be liable
for the rates and charges for services as provided by this chapter
only after the owner has received a thirty-day notice of the
availability of the facilities.
(f) An establishment, as defined in section three, article
eleven, chapter twenty-two of this code, now or hereafter operating
its own sewage disposal system pursuant to a permit issued by the
division of environmental protection as prescribed by section
eleven, article eleven, chapter twenty-two of this code is exempt
from the provisions of this section, anything in this chapter to
the contrary notwithstanding.
(g) The public service commission shall promulgate rules to
effectuate the provisions of this section.
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(NOTE: The purpose of this bill is to limit property owners'
liability for users' delinquent utility accounts to one hundred
eighty days of service charges, to provide a mechanism whereby
property owners can request the services be disconnected and to
make the municipalities and public service districts more
accountable for disconnecting services to delinquent users. Other
changes in the bill are technical, making these sections more
readable.
Sections 8-19-12a, 8-20-10 and 16-13A-9 have been completely
rewritten, and sections 8-20-10a, 16-13A-9a, 16-13A-9b and 16-13A-9c are new; therefore, strike-throughs and underscoring have been
omitted.)