Chap. 37.—An ACT to amend and re-enact Section 2958 of the Code of Virginia,
as heretofore amended, relating to the extension of corporate limits of cities
and towns, so as to provide for the designation by the Chief Justice of the
Supreme Court of Appeals, or by one or more justices of the said court, of
certain of the judges composing special courts to hear proceedings relating to
such matters, and to provide for filling vacancies in such special courts and
prescribe the effect thereof. {H B 98]

Approved February 14, 1940

1. Be it enacted by the General Assembly of Virginia, That
section twenty-nine hundred and fifty-eight of the Code of Virginia,
as heretofore amended, be amended and re-enacted so as to read as
follows:

Section 2958. How case heard and by whom and what order
shall contain.—The court, without a jury, shall be held and presided
over by three judges, as follows: the judge of the circuit court of the
county in which the territory sought to be annexed lies; the judge
of the circuit court of the city to which the territory is to be annexed,
if the territory is to be annexed to a city having a circuit court, and
a judge of some circuit court in this State remote from the, territory
to be annexed, to be designated by the Chief Justice of the Supreme
Court of Appeals, and when the circuit judge of the city and of the
county in which the territory lies is the same, or when the town or
city whether it is within the same judicial circuit of the circuit judge
of the county in which the territory lies or not, has no separate cir-
cuit court, the Chief Justice of the Supreme Court of Appeals shall
designate a third judge from an adjoining circuit. The powers and
duties herein conferred and imposed upon the Chief Justice of the
Supreme Court of Appeals to designate the foregoing judges may be
exercised and performed by any justice, or any committee of justices,
of the said court, designated by the Chief Justice for such purpose.

If a vacancy shall occur in the membership of the court by reason
of the illness, death, incapacity, resignation or disqualification of any
judge designated to sit as a member thereof, at any time prior to the
final disposition of the case and the final completion of all of the
duties to be performed by the court under this chapter or under any
other provision of law, the court shall not be dissolved and the pro-
ceeding shall not fail; but the vacancy shall be filled by designation
of another judge, possessing the qualifications hereinabove pre-
scribed, to sit for and in the place of the judge so deceased, ill,
incapacitated, resigned or disqualified, and such other judge, who
shall be designated as hereinbefore provided, shall be vested with all
of the power and authority conferred by law upon his predecessor
and the court shall proceed as so constituted to hear and determine
the case, and do all things necessary to accomplish its final disposition
and the final completion of all of the duties to be performed by the
court under this chapter or under any other provision of law, in-
cluding such matters as the certification of evidence and exceptions,
and in the performance of all of the duties of the court subsequent
to his designation, such other judge shall be fully empowered to
participate; provided, however, that no decision shall be rendered,
ruling made or action taken by the court with respect to any question
to be determined by it after such new designation except after a full
hearing in open court by the court as reconstituted of all the evidence
theretofore introduced before the court relating to such question, and
a rehearing of all arguments theretofore made with reference to any
question previously submitted to but not decided by the court.

Such court shall hear the case upon the evidence introduced in
the manner in which evidence is introduced in common law cases,
and shall ascertain and determine the necessity for and expediency
of annexation, and whether the terms and conditions set forth in said
ordinance are reasonable and fair, and whether fair and just pro-
visions are made for the future management and improvement of
such territory; and if the majority of the court shall be satisfied of
the necessity for and expediency of such annexation, that such con-
ditions and provisions are reasonable and fair, and that, after the
special election held as provided for in section twenty-nine hundred
and fifty-seven, an order shall be entered providing for the annexation
of such territory. But if a majority of the court shall be of the opinion
that no annexation is necessary or expedient, the motion to annex
shall be dismissed. In every case of annexation, such city or town
shall assume and provide for the reimbursement of the county or
counties for such just proportion of any existing debt of such county
or counties or districts therein, and for the then value of such per-
manent public improvements as may have been made in the territory
annexed, either by way of macadamizing public roads or streets, or
by way of the construction of concrete roads or streets, or otherwise
permanently improving roads or streets, or by constructing concrete
sidewalks on public roads or streets, or by constructing or laying
water mains or sewers, garbage disposal system, fire protection facili-
ties, bridges or any other permanent public improvement, constructed
and maintained by such county or counties at the time of annexation,
as may be determined by the court in the proceeding in the deter-
mination of which value the court shall take into consideration the
value of such public improvements to the city or town seeking annex-
ation as well as the county or counties affected thereby; provided,
the cost of such public improvements is not embraced in the propor-
tion of the debt of such county or counties, or district therein, which
is assumed and provided for by such city or town in said proceeding;
and provided, further, that such city or town shall receive credit,
upon a just basis, to be determined by the court, for such sums, if
any, as it may have contributed to such public improvements; and
provided, further, that the authorities of the county or counties
portions of which are proposed to be annexed or the authorities of
any town or township in the territory proposed to be annexed, shall
not, between the entry of the decree of annexation and the date
when the same is to become effective, make or contract to make any
permanent public improvements, to be paid for by the city or town
seeking annexation, without the consent of the corporate authorities
of such city or town and the supervision of the official of such city
or town charged with the duty of making similar public improvements
within the city or town. And such city or town shall also provide
for the compensation to such county or counties for the then value
of any schoolhouse or other public building of such county located
within the annexed territory, which shall not be reserved to the
county in the proceeding; and for any injury to the value or the im-
pairment of the use to the county of any schoolhouse therein by
reason of the annexation made. If, however, the court shall be of
opinion that the annexation of only a part of such territory is neces-
sary or expedient, or that said ordinance does not contain fair and
reasonable terms, or if it shall be of the opinion that more territory
should be annexed than was described in the metes and bounds
originally set forth, it shall enter a proper order, embodying what it
deems reasonable and fair terms upon which the annexation is to be
had, and how much of said territory shall be annexed, and shall
direct the annexation of such territory in conformity with the terms
and conditions so prescribed. The court shall so draw the lines of
annexation as to have a reasonably compact body of land, and shall
also see that no land shall be taken into said city which is not adapted
to city improvements unless necessarily embraced in said compact
body of land, or which the city shall not need in the reasonably near
future for development. In making its decision as to the character
and extent of annexation the court shall take into consideration as
well, not only the development of the city, but also the loss of revenue
to the county.

But the tax rate upon the land annexed shall not be increased for
a period of five years after such annexation, except upon the petition
of a majority of the voters of such territory to the city or town council,
and all revenues derived by such city or town from taxation in said
territory during such period, either on property or from other sources,
including licenses, shall be wholly expended by such city or town
upon street, sewer, light, water, or other public improvement in said
territory; provided, however, that at any time within the said five
years the council of the city or town may by ordinance set apart a
sum equal to twelve per centum of the assessed value at the time of.
annexation, of the lands annexed, which sum so set apart shall be
wholly expended in and for the benefit of the annexed territory in
public improvements; and when said sum shall have been so set
apart and said public improvements shall have been substantially
completed, the land annexed shall be subject to the city tax rate,
and the proceeds thereof shall be paid into the city treasury along
with all other taxes and licenses in such territory for general purposes,
although said five years shall not have elapsed. Said sum to be so
set apart and expenses shall be reduced by the sum already expended
on said improvements under any other plan of annexation, and said
sum shall also be reduced by the amount of any debt of any town
that may be annexed to a city or to another town. Out of the pro-
ceeds of the sale of the next issue of bonds by a city or town after any
such annexation the said sum equal to the twelve per centum of the
assessed value, at the time of annexation, of the land annexed, re-
duced by the sums hereinbefore mentioned, shall be set apart and
expended in said territory as hereinbefore directed, unless said sum
has been already so expended. When two or more cities or towns
desire the same territory and petitions of their respective councils
are pending at the same time, the said court shall consolidate said
cases and hear them together, and enter such order as to it shall
seem proper, declaring to which city or town said territory shall be
annexed and the terms and conditions of annexation as in other cases.

2. This act, as amended, shall apply to all existing and pending
cases, but shall not require the redesignation of any judge or judges
in any pending suit or in any way invalidate any proceedings therein
or affect the substantive rights of parties thereto.

3. An emergency existing, this act shall be in force from its
passage.