Chap. 380.—An ACT to amend and re-enact Sections 2, 4, 4-a and 8 of Chapter 335
of the Acts of the General Assembly of 1938, approved March 31, 1938, and
known, designated and cited as the “Sanitation Districts Law of nineteen hun-
dred and thirty-eight” in relation to the establishment of sanitation districts and
the creation thereof as bodies corporate and politic styled as sanitation district
commissions, to withdrawals therefrom, and with regard to the corporate powers
and duties of such sanitation district commissions. and the management and
control thereof, and the exemptions from taxation appertaining thereto.

[fH B 270]
Approved April 2, 1942

1. Be it enacted by the General Assembly of Virginia, That sec-
tions two, four, four-a and eight of chapter three hundred and thirty-
five of the Acts of the General Assembly of nineteen hundred and thirty-
eight, approved March thirty-first, nineteen hundred and thirty-eight and
known, designated and cited as the “Sanitation Districts Law of nineteen
hundred and thirty-eight”, be amended and re-enacted so as to read as
follows:

Section 2. Definitions.—Wherever used or referred to in this act,
unless a different meaning clearly appears from the context:

(1) The term “district”? means a sanitation district created and
existing pursuant to section three of this act or heretofore or hereafter
created by a special act of the General Assembly for the purpose of taking
advantage of the provisions of this act ;

(2) The term “commission”, except where the context requires
reference to the board or commission mentioned and provided for in
subsection (b) of section four of this act, means the body corporate and
politic comprising a district and its inhabitants created and existing
pursuant to subsection (a) of section four of this act ;

(3) The term “chairman” means the chairman of a commission;

(4) The term “sewage disposal system” or “facilities”, used in
cH. 380] ACTS OF ASSEMBLY — 599

relation to a commission, means the sewers, conduits, pipe lines, pumping
and ventilating stations, treatment plants and works, and other plants,
structures, boats, conveyances and other real and personal property
operated by the commission for the purposes of the commission ;

(5) The term “tidal waters of the district” means the waters
within the district affected by the ebb and flow of the tide and also, in the
event that the commission shall pursuant to section twenty-one of this
act, enter into any contract or agreement with any county, city or town
in whole or in part outside of the district, and for so long as such contract
or agreement shall remain in force, the waters within such county, city
or town, which are affected by the ebb and flow of the tide, and the
waters within one mile of such county, city or town which are affected by
the ebb and flow of the tide and are not included within the boundaries of
any other county, city or town, or within the boundaries of any other
sanitation district ;

(6) The term “industrial wastes” means liquid or other wastes
resulting from any processes of industry, manufacture, trade or business
or from the development of any natural resource ;

(7) The term “sewage” means the water carried wastes created
in and carried, or to be carried, away from residences, hotels, schools,
hospitals, industrial establishments, commercial establishments or any
other private or public building, together with such surface or ground
water and industrial wastes as may be present ;

(8) The term “pollution” means the condition of water resulting
from any of the following acts: |

(a) Unreasonably contaminating such water ;

(b) Rendering such water unclean or impure ;

(c) Rendering such water directly or indirectly injurious to public
health, or unfit for public use; :

(d) Rendering such water harmful for cattle, stock or other
animals ; |

(e) Rendering such water deleterious to, or unfit for, fish or shell-
fish, or fish or shellfish propagation, or acquatic animals, or plant life in
said water; ,

(f{) Rendering such water unfit for commercial use ;

Rendering such water unclean or impure to such an extent
that fish or shellfish taken therefrom are unfit for human consumption ;

(9) The term “Governor” means the Governor of the Common-
wealth of Virginia ;

(10) The term “construct” includes construct, reconstruct, replace,
improve and repair ;

(11) The term “person” includes an individual, partnership, asso-
ciation, or corporation ;

(12) The term “governing body” shall mean the board of super-
visors, board of county commissioners, council or other local legislative
body, board, commission, or other legislative authority having charge of
the finances of any county, city or town;

(13) The term “town” means an incorporated town ;

(14) The term “county” means a county exclusive of that portion
thereof lying within the boundaries of an incorporated town.
Section 4. Incorporation of district and creation and organization
of commission—(a) Each district heretofore or hereafter created
pursuant to this act or pursuant to a special act of the General Assembly,
and the inhabitants of its territoy as the same has been or may be estab-
lished and from time to time altered pursuant to law, is hereby created as
a body corporate and politic under the name and style of, and to be known
by, the name of the district with the word “commission” appended. Each
such commission, constituting a corporation as aforesaid, is hereby
invested with the rights, powers and authority and charged with the
duties set forth in this act as amended, and shall constitute a political
subdivision of the Commonwealth of Virginia established as a govern-
mental instrumentality to provide for the public health and welfare, and
the bonds of such district or commission, and the property owned or
operated by such district or commission shall be exempt from all taxation,
and the interest on the said bonds shall take the same status under tax
laws as the interest on bonds of other political subdivisions of the State.

(b) In and for each such district, a board or commission is hereby
created to manage and control the functions, affairs and property of the
said corporation and to exercise all of the rights, powers and authority
and perform all of the duties conferred or imposed upon the corporation.
Except as a special act creating the district shall otherwise provide, such
board or commission shall consist of five members, residents of the dis-
trict, appointed by the Governor. Except as a special act creating the
district shall otherwise provide, in making the original appointments, one
of the members shall be appointed for a term of one year, one for a term
of two years, one for a term of three years, and two for terms of four
years each; subsequent appointments shall be made for a term of four
years, except appointments to fill vacancies which shall be for the unex-
pired terms. The Governor shall designate one of the members of the
commission, chairman thereof. The commission under such rules as it
may adopt, may elect one of its members vice-chairman, and may appoint
a secretary, or secretary-treasurer, who shall not be a member of the
commission ; in the event that the commission appoints a secretary-treas-
urer, his compensation shall be fixed by the commission but shall not
exceed three thousand six hundred dollars per annum.

(c) The chairman shall devote his full time to the performance of
his official duties under this act and shall receive a salary not exceeding
six thousand dollars per annum to be fixed by the Governor. The other
members of the commission shall receive no salary, but shall be paid their
necessary traveling and other expenses incurred in attendance upon
meetings of the commission or while otherwise engaged in the discharge
of their duties under this act, and the sum of ten dollars per diem for each
day or portion thereof in which they are engaged in the performance of
such duties, but the total of such per diem compensation so received by
any member during any one year shall not exceed three hundred dollars.

(d) Regular meetings of the commission shall be held at least
once every month at such time and place as the commission shall from
time to time prescribe. Special meetings of the commission shall be held
upon one day’s mailed notice, or actual notice otherwise given, to each
member of the commission upon call of the chairman or of any two mem-
bers of the commission, at such time and at such place within the district
as such notice may specify, or at such other time and place with or with-
out notice as all of the members of the commission may expressly approve.
Three members of the commission shall constitute a quorum, and the
vote of three members of. the commission shall be necessary to take any
action.

(e) Members of the commission may be suspended or removed by
the Governor at his pleasure. ,

(f{) Each member of the commission shall, before entering upon
the discharge of his duties under this act, take and subscribe the oath of
office required by section thirty-four of the Constitution of Virginia, and
give bond payable to the Commonwealth of Virginia in form approved
by the Attorney General, in such penalty as shall be fixed from time to
time by the Governor, with some surety or guaranty company duly au-
thorized to do business in Virginia and approved by the Governor, as
security, conditioned upon the faithful discharge of his duties. The
premium of such bonds shall be paid by the commission and the bonds
shall be filed with and preserved by the Comptroller.

- (g) No member, agent or employee of the said board or commis-
sion shall contract with the commission or be interested, either directly
or indirectly, in any contract with the commission, or in the sale of any
property, either real or personal, to the commission. This subsection shall
not prevent any member, agent, or employee of the commission from
granting to the commission, for a nominal considration, any right of
way, easement or lease.

(h) All contracts, except in cases of emergency, over five thousand
dollars that the commission may let for construction or materials shall be
let after public advertising. The commission shall advertise for bids for
the work or materials at least ten days prior to the letting of any contracts
therefor. The advertisement shall state the place where bidders may
examine the plans and specifications and the time and place where bids
for said work or materials will be opened. Each bidder shall accompany
his bid with a certified check, payable to the commission, for a reasonable
sum to be fixed by the commission, as a guarantee that if the contract is
awarded to him, he will enter into a contract with the commission for
doing said work or furnishing said materials. The contract shall be let to
the lowest responsible bidder, and the successful bidder shall give bond
or other security for the faithful performance of the contract, in such
form and amount as the chairman may require. The commission is au-
thorized to reject any and all bids. In the event that all bids are rejected,
the commission shall advertise for new bids as in the first instance. All
such bids and contracts shall be public records. The commission is author-
ized, in its discretion, to do any and all such work by force account.

(1) The powers of condemnation or eminent domain conferred on
the commission by this act shall be exercised by the said board or com-
mission under the same conditions and provisions and in accordance with
the same procedure as in the case of the exercise of similar powers by the
boards of supervisors of counties or the councils of cities or towns so far
as they can be applied to the same.
(j) No pecuniary liability of any kind shall be imposed upon any
county, city or town constituting any part of any district because of any
act, agreement, contract, tort, malfeasance, misfeasance, or nonfeasance,
by or on the part of the commission of such district, or any member of
such commission, or its agents, servants and employees, except as other-
wise provided in this act with reference to contracts and agreements be-
tween the commission and any such county, city or town. ,

Section 4-a. Withdrawals from district—(a) Any county or city
in whole or in part embraced within a district either heretofore or here-
after created by or pursuant to any: special act of the General Assembly
may, by resolution adopted by its governing body and filed with the com-
mission within six months after the creation of the district, give notice of
its intention to consider withdrawing from the district. If such notice be
given in the manner aforesaid then no election on the question of the
issuance of bonds of the commission shall be held until at least one year
after the creation of the district. If after the giving of such notice and
within one year after the creation of the district such county or city shall
have taken all proceedings and performed all acts necessary for the au-
thorization of the construction, financing and operation by or for it of a
separate sewage disposal system, sufficient in the opinion of the State
Health Commissioner to prevent the pollution of any of the tidal waters
of the district from industrial wastes and sewage arising in or discharged
from: the said county or city, then such county or city shall be entitled to
withdraw from the district and shall thereafter cease to be‘a part of the
said district for all purposes of this act. The governing body of any county
or city proposing to avail itself of the provisions of this section shall;
within one year after the creation of the district, furnish to the commission
satisfactory proof showing that it has theretofore taken all proceedings
necessary and performed all acts necessary to enable it to construct,
finance and operate such proposed separate sewage disposal system; in
the event that the commission shall not agree with the governing body of
such county or city upon the sufficiency of such proceedings and acts and
proof thereof, such governing body may within thirty days petition any
circuit or corporation court having jurisdiction in such county or city
which shall thereupon be authorized to hear and determine whether or
not such county or city has complied with the applicable provisions of this
section and entitled itself to withdraw from the district.

(b) Any county or city which elects to construct and operate there-
for a separate sewage disposal system in accordance with the provisions
of this section and the governing body thereof, for the purpose of con-
structing, financing and operating such sewage disposal system, shall be
vested with all the rights and powers and charged with all the duties other-
wise vested in and imposed upon the commission with reference to such
county or city, including the power to issue its bonds, construct and op-
erate the sewage disposal system, and fix, charge and collect fees, rents
and charges for the use of such sewage disposal system; but this transfer
and vesting of rights, powers and duties shall be no longer operative if
such county or city shall not entitle itself to withdraw from the district
within one year after the creation of the district. The foregoing provisions
cH. 380] ACTS OF ASSEMBLY 6095

of this subsection shall be deemed to confer additional rights and powers
upon any such county or city affected, and shall in no wise deprive any
such county or city of any rights and powers otherwise vested in and
conferred upon such county or city by general law or charter provisions.

(c) No election upon the question of the issuance of bonds of the
commission shall be held within the first six months after the creation of
the district. In the event no notice of intention to consider withdrawing
from the district, in accordance with the foregoing provisions of this sec-
tion, is filed with the commission within six months after the creation of
the district, then no county or city therein may thereafter avail itself of
the provisions of this section to withdraw from such district.

(d) Any county or city which elects to construct and operate
therein a separate sewage disposal system in accordance with the fore-
going provisions of this section shall, within the period hereinafter limited
for the construction of such sewage disposal system, construct and provide
and have in operation in such county or city a sewage disposal system
sufficient in the opinion of the State Health Commissioner to prevent the
pollution of any and all tidal waters of the district, and any and all tidal
waters within the county or city, from industrial wastes and sewage aris-
ing in or discharged from the said county or city; and the commission is
authorized and empowered to proceed by appropriate court action to
require the said county or city and the governing body thereof to provide
therein such required sewage disposal system. From and after the expira-
tion of said period, no such county or city nor any public body or person
therein shall discharge or suffer to be discharged directly or indirectly
into any tidal waters of the district, or tidal waters in such county or city,
any sewage, industrial wastes or other refuse which may or will cause or
contribute to pollution of any of such tidal waters ; this provision shall be
enforceable in the manner provided for by section twenty-two of this act.
The period for the construction of such sewage disposal system, as herein-
above referred to, shall be three years from the creation of the district and
such further period of time, not exceeding an additional two years, as the
commission. upon application of the governing body of the county or city
and after public hearing which shall be held by the commission upon such
public notice as the commission may determine to be reasonable, may find
to be necessary for completion of such construction by reason of causes
which shall not be or have been within the control of such county or city
or the governing body thereof. !

(e) If any city shall withdraw from the district pursuant to the
foregoing provisions of this section, such city if requested by the commis-
sion or the governing body of any county or town adjacent to such city
shall provide by its sewage disposal system for the treatment and disposal
‘of sewage and industrial wastes arising in or discharged from such county
or town upon such sewage and industrial wastes being delivered to such
city, and shalt agree with the commission or such county or town to treat
and dispose of such sewage and wastes so delivered at the cost of such
treatment and disposal, provided the commission or the county or town
affected shall pay to the city the cost of installing any additional sewet
main or mains necessitated thereby within such city; if the parties do not
604 ACTS OF ASSEMBLY [va., 1942

agree upon such costs, such costs shall be determined upon petition to the
State Corporation Commission which is hereby authorized and directed
to make such determination.

(f) In the event that the members of the commission shall not be
appointed within two months after the creation of the district then the
date of the first appointment of such members shall be deemed to be the
date of the creation of such district for all the purposes of this section.

(g) If any member of a commission shall, through removal from
the district or through any withdrawal or exclusion of any part or parts
of any district, cease to reside within the district he shall thereupon be
disqualified for holding office as a member of the commission, and the
vacancy thus created shall be filled as otherwise provided.

Section 8. Issuance of bonds.—(a) Bonds of a commission shall
at no time be outstanding in a principal amount in excess of ten million
dollars.

(b) No bonds shall be issued by a commission, except to fund or
refund bonds theretofore issued and thus to redeem a previous liability,
unless the qualified voters of the district shall approve by a majority vote
of the qualified voters voting in an election the issuance of the bonds.
Whenever the commission shall determine by resolution that it is advis-
able to issue bonds for the purposes of the commission, such resolution
shall be certified to the circuit court of a county or corporation court of a
city in whole or in part embraced within the district and said court shall
thereupon make an order requiring the opening of a poll and the taking of
the sense of the qualified voters of the district in accordance with section
twenty-five of this act on the question of issuing the bonds in not exceed-
ing the amount stated in such resolution. The question so submitted shall
be “Do you favor the issuance of not exceeding $.........0.000...... bonds of the
i MIRAE etn teas cas BE sanitation district commission (inserting the
amount of bonds stated in such resolution and the name of the commis-
sion) ?” If upon the certification of the result of the said election made by
the Secretary of the Commonwealth to said court, it shall appear that a
majority of the qualified voters of the district voting at the said election
shall have voted “yes” and in favor of the issuance of the bonds, the court
shall make and enter of record an order stating such result and thereupon
the commission shall have power in accordance with this act to issue bonds
in not exceeding the amount stated in such resolution and, in anticipation
of the issuance of such bonds, to borrow money on temporary loan and
issue temporary bonds therefor. All other matters relating to the issuing
of such bonds, and all matters relating to the contracting of debt, borrow-
ing of money and issuing of other bonds and obligations shall be deter-
mined by resolution or resolutions of the commission.

(c) Bonds shall be authorized by resolution of the commission, and
shall be issued from time to time in one or more series, be in such form,
bear such date or dates, mature at such time or times not more than forty
years from the date of issuance thereof, bear interest at such rate or rates
not exceeding six per centum per annum, be in such denominations, carry
such registration privileges, be executed in such manner, be payable in
such medium of payment, at such place or places. be subject ta accelera.
tion of maturity on such contingencies and terms, and be subject to such
terms of redemption with or without premium, as such resolution or reso-
lutions shall provide. Such bonds may be sold at public or private sale for
such price or prices as the commission shall determine, provided the in-
terest cost to maturity of the money received from any such bonds simul-
taneously sold shall not exceed an average of six per centum per annum.

(d) Any resolutions of the commission authorizing any bonds may
contain provisions, which shall be a part of the contract with the several
holders of such bonds and accordingly subject to amendment by mutual
agreement of the commission and the holders of all of such bonds, as to:

(1) Pledging, setting aside, depositing or trusteeing any or all
revenues or funds of the commission to secure the payment of the principal
of or interest on such bonds or other bonds of the commission or the pay-
ment of expenses of construction, operation or maintenance of the sewage
disposal system, including provisions giving priority, notwithstanding any
provision or rule of law otherwise to the contrary, to the obligation to
perform such contractual provisions to secure payment of such principal
or interest over any or all other obligations and liabilities of the commis-
sion ;

(2) Payment of the principal of or interest on such bonds or other
bonds of the commission, and the sources and methods thereof ;

(3) The fees, rents and other charges to be established and col-
lected by the commission, the collection and enforcement of the same, and
the use, disposition and application of the amounts collected ;

(4) The setting aside of reserves and sinking funds and the source,
regulation, application and disposition thereof ;

(5) The determination or definition of the revenues and income of
the commission and of the expenses of operation and maintenance of the
sewage disposal system ;

(6) The use, regulation, operation, maintenance, insurance and
disposition of the sewage disposal system, facilities and other property of
the commission; |

(7) Restrictions on the power of the commission to limit and regu-
late the use of the sewage disposal system, facilities and other property
of the commission ;

(8) Limitations on the purposes to which the proceeds of such
bonds or other bonds of the commission may be applied ;

(9) The construction and completion of all or any part of the
sewage disposal system or any facilities of the commission ;

(10) Limitations on the issuance of additional bonds or on the
indebtedness of the commission ;

(11) The procedure, if any, by which the terms of any contract
with the holders of such bonds may be amended or abrogated, the amount
of bonds the holders of which must consent thereto, and the manner in
which such consent may be given or evidenced ; }

(12) Payment of costs or expenses incident to the enforcement
of such bonds or of the provisions of such resolution or of any contract
with the holders of such bonds, in accordance with this act; or |
(13) Any other matter which the commission shall determine to be
necessary in order to carry out and effectuate the purposes of the com-
mission.

(e) <Any provisions of law to the contrary notwithstanding, any
bonds or temporary bonds issued pursuant to the authority of this act
shall be deemed to be fully negotiable within the meaning and for all the
purposes of chapter two hundred and thirty-three of the Code of Virginia.

({) Neither the members of the commission, nor any person exe-
cuting any bonds or temporary bonds shall be liable personally on the
bonds or temporary bonds or be subject to any personal liability or ac-
countability by reason of the issuance thereof.

(g) The commission is hereby authorized, out of any funds avail-
able therefor, to purchase any bonds of the commission at a price not
more than the redemption price thereof on the next succeeding redemption
date or, if such bonds be not redeemable, the principal amount thereof,
together with, in either case, interest accrued to the date of purchase.

2. Anemergency existing this act shall be in force from its passage.