COMMITTEE SUBSTITUTE

FOR


Senate Bill No. 412

(By Senators Love, Sharpe, Sprouse and Minear)

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[Originating in the Committee on the Judiciary;

reported February 28, 2003.]

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A BILL to amend and reenact section nine, article thirteen-a, chapter sixteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to public service districts; public utility services; providing that unpaid charges for services do not become a lien against the owner of real property nor is the owner liable for the charges unless the owner contracted directly with the provider for the services; modifying deposit; and providing refund of deposit with interest.

Be it enacted by the Legislature of West Virginia:
That section nine, 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, STORMWATER AND GAS SERVICES.

§16-13A-9. Rules; service rates and charges; discontinuance of service; required water and sewer connections; lien for delinquent fees.

(a) (1) The board may make, enact and enforce all needful rules in connection with the acquisition, construction, improvement, extension, management, maintenance, operation, care, protection and the use of any public service properties owned or controlled by the district. and The board shall establish rates, fees and charges for the services and facilities it furnishes, which shall be sufficient at all times, notwithstanding the provisions of any other law or laws, to pay the cost of maintenance, operation and depreciation of such the public service properties and principal of and interest on all bonds issued, other obligations incurred under the provisions of this article and all reserve or other payments provided for in the proceedings which authorized the issuance of any bonds hereunder under this article. The schedule of such the rates, fees and charges may be based upon: either
(a) (A) The consumption of water or gas on premises connected with such the facilities, taking into consideration domestic, commercial, industrial and public use of water and gas; or
 (b) (B) The number and kind of fixtures connected with such the facilities located on the various premises; or
 (c) (C) The number of persons served by such the facilities; or
(d) (D) Any combination thereof of paragraphs (A), (B) and (C) of this subdivision; or
(e) (E) May be determined on any other basis or classification which the board may determine to be fair and reasonable, taking into consideration the location of the premises served and the nature and extent of the services and facilities furnished. However, no rates, fees or charges for stormwater services may be assessed against highways, road and drainage easements or stormwater facilities constructed, owned or operated by the West Virginia division of highways.
 (2) Where water, sewer, and stormwater or gas services, or any combination thereof, are all furnished to any premises, the schedule of charges may be billed as a single amount for the aggregate thereof of the charges. The board shall require all users of services and facilities furnished by the district to designate on every application for service whether the applicant is a tenant or an owner of the premises to be served. If the applicant is a tenant, he or she shall state the name and address of the owner or owners of the premises to be served by the district. All Notwithstanding the provisions of section eight, article three, chapter twenty-four of this code to the contrary, all new applicants for service shall deposit a minimum of fifty dollars the greater of a sum equal to two twelfths of the average annual usage of the applicant's specific customer class or fifty dollars, with the district to secure the payment of service rates, fees and charges in the event they become delinquent as provided in this section. If a district provides both water and sewer service, all new applicants for service shall deposit the greater of a sum equal to two twelfths of the average annual usage for water service or fifty dollars and the greater of a sum equal to two twelfths of the average annual usage for wastewater service of the applicant's specific customer class or fifty dollars. In any case where a deposit is forfeited to pay service rates, fees and charges which were delinquent at the time of disconnection or termination of service, no reconnection or reinstatement of service may be made by the district until another minimum deposit of fifty dollars equal to the greater of a sum equal to two twelfths of the average usage for the applicant's specific customer class or fifty dollars has been remitted to the district. After twelve months of prompt payment history, the district shall return the deposit to the customer or credit the customer's account at a rate as the public service commission may prescribe: Provided, That where the customer is a tenant, the district is not required to return the deposit until the time the tenant discontinues service with the district. Whenever any rates, fees, rentals or charges for services or facilities furnished remain unpaid for a period of thirty twenty days after the same become due and payable, the property and the owner thereof, as well as the user of the services and facilities provided are is delinquent and the owner, user and property are is liable at law until such time as all such rates, fees and charges are fully paid. Provided, That the property owner shall be given notice of any said delinquency by certified mail, return receipt requested The board may, under reasonable rules promulgated by the public service commission, shut off and discontinue water or gas services to all delinquent users of either water or gas facilities, or both, ten days after the water or gas services become delinquent. Provided, however, That upon written request of the owner or owners of the premises, the board shall shut off and discontinue water and gas services where any rates, fees, rentals, or charges for services or facilities remain unpaid by the user of the premises for a period of sixty days after the same became due and payable
(b) 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 separately either water facilities or sewer facilities, and the district owns and operates the other kind of facilities either water or sewer, as the case may be, then the district and such the publicly or privately owned utility, city, incorporated town or other municipal corporation or other public service district shall covenant and contract with each other to shut off and discontinue the supplying of water service for the nonpayment of sewer service fees and charges: Provided, That any contracts entered into by a public service district pursuant to this section shall be submitted to the public service commission for approval. Any public service district providing water and sewer service to its customers has the right to terminate water service for delinquency in payment of either water or sewer bills. Where one public service district is providing sewer service and another public service district or a municipality included within the boundaries of the sewer district is providing water service, and the district providing sewer service experiences a delinquency in payment, the district or the municipality included within the boundaries of the sewer district that is providing water service, upon the request of the district providing sewer service to the delinquent account, shall terminate its water service to the customer having the delinquent sewer account: Provided, however, That any termination of water service must comply with all rules and orders of the public service commission.
(c) Any district furnishing sewer facilities within the district may require, or may by petition to the circuit court of the county in which the property is located, compel or may require the bureau of public division of health to compel all owners, tenants or occupants of any 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 bureau of public 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, from such the houses, dwellings or buildings into such the sewer facilities, to connect with and use such the sewer facilities and to cease the use of all other means for the collection, treatment and disposal of sewage and waste matters from such the houses, dwellings and buildings where there is such gravity flow or transportation by such any other methods approved by the bureau of public 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 and such the houses, dwellings and buildings can be adequately served by the sewer facilities of the district and it is hereby found, determined and declared that the mandatory use of such the sewer facilities provided for in this paragraph is necessary and essential for the health and welfare of the inhabitants and residents of such the districts and of the state. Provided, That If the public service district determines that requires the property owner must to connect with the sewer facilities even when sewage from such dwellings may not flow to the main line by gravity and the property owner must incur incurs costs for any changes in the existing dwellings' exterior plumbing in order to connect to the main sewer line, the public service district board shall authorize the district to pay all reasonable costs for such the changes in the exterior plumbing, including, but not limited to, installation, operation, maintenance and purchase of a pump or any other method approved by the bureau of public division of health. Maintenance and operation costs for such the extra installation should be reflected in the users charge for approval of the public service commission. The circuit court shall adjudicate the merits of such the petition by summary hearing to be held not later than thirty days after service of petition to the appropriate owners, tenants or occupants.
(d) Whenever any district has made available sewer facilities to any owner, tenant or occupant of any house, dwelling or building located near such the sewer facility and the engineer for the district has certified that such the sewer facilities are available to and are adequate to serve such the owner, tenant or occupant and sewage will flow by gravity or be transported by such other methods approved by the bureau of public division of health from such the house, dwelling or building into such the sewer facilities, the district may charge, and such the owner, tenant or occupant shall pay the rates and charges for services established under this article only after thirty-day notice of the availability of the facilities has been received by the owner, tenant or occupant. Rates and charges for sewage services shall be based upon actual water consumption or the average monthly water consumption based upon the owner, tenants or occupants specific customer class.
(e) Whenever any district has made available a stormwater system to any owner, tenant or occupant of any real property located near such the stormwater system and where stormwater from such real property affects or drains into such the stormwater system, it is hereby found, determined and declared that such the owner, tenant or occupant is being served by such the stormwater system and it is further hereby found, determined and declared that the mandatory use of such the stormwater system is necessary and essential for the health and welfare of the inhabitants and residents of such the district and of the state. The district may charge, and such the owner, tenant or occupant shall pay the rates, fees and charges for stormwater services established under this article only after thirty-day notice of the availability of the stormwater system has been received by the owner.
(f) All delinquent fees, rates and charges of the district for either water facilities, sewer facilities, or gas facilities or stormwater systems or stormwater management programs are liens on the premises served of equal dignity, rank and priority with the lien on such the premises of state, county, school and municipal taxes. In addition to the other remedies provided in this section, public service districts are hereby granted a deferral of filing fees or other fees and costs incidental to the bringing and maintenance of an action in magistrate court for the collection of delinquent water, sewer, stormwater or gas bills. If the district collects the delinquent account, plus reasonable costs, from its customer or other responsible party, the district shall pay to the magistrate the normal filing fee and reasonable costs which were previously deferred. In addition, each public service district may exchange with other public service districts a list of delinquent accounts: Provided, That an owner of real property may not be held liable for the delinquent rates or charges for services or facilities of a tenant, nor may any lien attach to real property for the reason of delinquent rates or charges for services or facilities of a tenant of the real property, unless the owner has contracted directly with the public service district to purchase the services or facilities.
(g) Anything in this section to the contrary notwithstanding, any establishment, as defined in section three, article eleven, chapter twenty-two, 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.

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(NOTE: The purpose of this bill is to eliminate landlord liability for tenant's delinquent utility accounts and update the language concerning security deposits.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added. )