Chap. 206.—An ACT in relation to sanitation districts heretofore or hereafter
created for the relief of certain waters of the State from pollution and the con-
sequent improvement of conditions affecting the public health; providing for
the creation of such districts; providing for the creation and organization of
sanitation commissions in sanitation districts heretofore or hereafter created
under this or any other act, and for the appointment, terms, compensation,
suspension and removal of the members of such commissions; prescribing the
rights, powers, and duties of such commissions; authorizing such commissions
to contract debt, borrow money and issue bonds and other obligations of such
commissions therefor, and prescribing the mode or procedure for and regulating
the issuance of such bonds and other obligations and providing for the payment
or redemption thereof; and enlarging and prescribing the rights, powers, and
duties of counties, cities, and towns in relation to such districts and commis-
sions. [S B 186]

Approved March 23, 1946

Re it enacted by the General Assembly of Virginia:

}. Section 1. Short title—This act may be known, designated
and cited as the “Sanitation Districts Law of Nineteen hundred and
forty-six”’.
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 or
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
relation to a commission, means the sewers, conduits, pipe lines, pump-
ing 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 ‘waters of the district” means all well defined
rivers, creeks or other water courses or streams within the district,
provided they are not “tidal waters of the district’ as that term is de-
fined in the sanitation districts law of nineteen hundred thirty-eight;

(6) The term “industrial wastes” means liquid or other wastes
resulting from any processes of industry, manufacture, trade or busi-
ness 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 private use;

(d) Rendering such water harmful for cattle, stock or other ani-
mals ;

(e) Rendering such water unfit for commercial use ;

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

(10) The term “person” includes an individual, partnership, as-
sociation, or corporation ;

(11) 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;

(12) The term “town” means an incorporated town:

(13) The term ‘‘county” means a county exclusive of that portion
thereof lying within the boundaries of an incorporated town.
Section 3. Creation of sanitation district—(a) Any integral body
of territory within which are situated rivers, creeks or other water
courses or streams, not affected by ebb and flow of the tide, and none of
which are embraced within any other sanitation district may, under
the conditions and upon the taking and completion of the proceedings
provided in this section, be created a sanitation district. Every part of
the boundary of such a sanitation district shall either (1) coincide with
the boundary of a county, city or town or (2) bisect a county, city or
town, or (3) be located within one mile of the boundary of a county,
city or town, or (4) consist of a straight line connecting two points
each of which lies upon a boundary of one of the three types hereinabove
described.

(b) Upon the presentation of a petition complying with the re-
quirements of this section, praying for the creation of a sanitation district,
fixing the boundaries thereof and naming the counties, cities and towns
which in whole or in part are to be embraced therein, the circuit court
of any such county, or of any county in which any such town is situated,
or the corporation court of any such city shall make an order filing said
petition and fixing a day for a hearing by said court on said petition and
the question of the creation of the proposed sanitation district. Said
order shall direct notice of such hearing to be given by publication once
a week for at least three consecutive weeks beginning at least twenty-
eight days prior to the day of such hearing in some newspaper or news-
papers, named in such order, having general circulation in the proposed
sanitation district. Said notice shall set forth the petition as filed, but
need not set forth the signatures or exhibits thereto, and shall state the
time and place of hearing and that at such hearing all persons desiring
to controvert and allegations of said petition or question the conformity
thereof to this section will be heard and all objections to the creation
of the proposed sanitation district considered.

(c) Every such petition shall pray for the creation of the proposed
sanitation district, and set forth the name of the proposed sanitation
district (which shall include the words “sanitation district”), shall fix
the boundaries thereof, shall name the cities and counties and towns
which are in whole or in part to be embraced therein and shall contain
an allegation (1) that the proposed sanitation district includes within
its territorial limits water courses or streams which are polluted, (2)
that no part of the proposed sanitation district is within the territorial
limits of an existing sanitation district, (3) that the proposed sanitation
district is an integral whole and does not completely surround any ter-
ritory not included in the proposed or some existing sanitation district,
(4) that the creation of the proposed sanitation district in accordance
with this act will provide a means for abating or preventing the pollu-
tion of waters of the proposed sanitation district and will benefit all the
property within the proposed sanitation district, (5) that the creation
of the proposed sanitation district has been approved by the State Health
Commissioner as providing a practical means for abating or preventing
the pollution of the waters of the proposed sanitation district, (6) that
the petition has been approved and the prayer thereof joined in by each
city, county and town which is in whole or in part embraced within the
proposed sanitation district, expressed by resolution adopted by the vote
of a majority of the governing body thereof. Every such petition shall
be signed by not less than one hundred qualified voters of the proposed
sanitation district, including not less than twenty-five qualified voters of
each city and county and town in whole or in part embraced within the
proposed sanitation district.

(d) Any person interested may answer the petition and make de-
fense thereto and at such hearing all persons interested or desiring to
controvert the allegations of the petition or question the conformity
thereof to this section or object to the creation of the proposed sani-
tation district shall be heard. If upon such hearing the court shall not
be satisfied that the allegations of the petition are sustained and that
the petition conforms to the provisions of this section, it shall make an
order denying and dismissing the petition. If upon such hearing the
court shall be satisfied that the allegations of the petition are sustained
and that the petition conforms to the provisions of this section and that
all of the property in the proposed sanitation district will be benefited
by the creation of the proposed sanitation district and that the public
interest will be served and the public health protected by such creation,
it shall make an order determining such matters and requiring the open-
ing of a poll and the taking of the sense of the qualified voters of the
proposed sanitation district in accordance with section twenty-five of
this act on the question of the creation of the proposed sanitation dis-
trict. The question so submitted shall be “Do you favor the creation of
the nnn. ee eeeceeceeeeteeceeneccessccecceensececeeseeeessnececeseceeeees (inserting the name of
the proposed sanitation district stated in the said petition)?” 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 proposed sanitation district voting at the said elec-
tion shall have voted “yes” and in favor of the creation of the proposed
sanitation district, the court shall make and enter of record an order
stating such result, and thereupon the territory defined in the petition,
less such parts thereof as shall be excluded pursuant to the provisions
of sub-section (e) of this section shall be and constitute a sanitation
district for all the purposes of this act, known and designated by the
name stated in the said petition.

(e) If upon the certification of the results of the said election pro-
vided for in sub-section (d) of this section, it shall appear that a ma-
jority of the qualified voters of the portion of any county, or of any city
or of any town voting on the question at the said election, shall have
voted “no” against the creation of the proposed sanitation district, then
the territory included within the limits of such county or of such city, or
of such town, shall be excluded from, and shall not constitute a part of
the said district.

({) The State Health Commissioner is hereby authorized and em-
powered, upon being satisfied that the creation of a proposed sanitation
district will provide a practical means for abating or preventing the pollu-
tion of the waters of the proposed sanitation district, to approve, as
above referred to, the creation of the proposed sanitation district. The
governing body of each city and county and town is hereby authorized
and empowered, in its discretion, to adopt resolutions, as above referred
to, approving and joining in the prayer of petitions for the creation of a
proposed sanitation district.

Section 4. Creation and organization of commission.—(a) In and
for each district heretofore or hereafter created pursuant to this act or
pursuant to a special act of the General Assembly, a commission is here-
by created as a body corporate, invested with the rights, powers and
authority and charged with the duties set forth in this act. The commis-
sion shall be known by the name of the district, except that the word
“commission” shall be substituted for the word “district”. Except as a
special act creating the district shall otherwise provide, the commission
shall consist of seven members, residents of the district, appointed by
the State Health Commissioner, in the manner hereinafter provided,
who shall notify each governing body immediately after such appoint-
ments. Representation on the commission shall be apportioned among
the political segments of the district on a population basis so far as it
may be practical to do so; but each political segment, however, shall
be entitled to at least one representative on the commission; and all ap-
pointments thereto shall be made by the State Health Commissioner
from a list of not less than one nor more than five names furnished to
him by the respective governing bodies of each political segment of the
district. 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, two for a term of two years, two
for a term of three years, and two for terms of four years each; subse-
quent appointments shall be made for a term of four years, except ap-
pointments to fill vacancies which shall be for the unexpired terms.
Members of the commission shall hold office until their successors have
been duly appointed and qualified.

(b) The commission, at its organization meeting and thereafter
at its first meeting 1n each calendar year, shall elect 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 secre-
tary-treasurer, his compensation shall be fixed by the commission.

(c) The members of the commission, including the chairman, 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 ap-
prove. Four members of the commission shall constitute a quorum, and
the vote of four members of the commission shall be necessary to take
any action.

(e) Members of the commission may be suspended or removed
by the State Health Commissioner 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 ap-
proved by the Attorney-General, in such penalty as shall be fixed from
time to time by the State Health Commissioner, with some surety or
guaranty company duly authorized to do business in Virginia and ap-
proved by the State Health Commissioner, 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 pre-
served by the Comptroller of the Commonwealth.

(g) No member, agent or employee of the commission shall con-
tract 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 employees of the commission from grant-
ing to the commission, for a nominal consideration, any right of way,
easement or lease.

(h) All contracts, except in cases of emergency, over five thous-
and 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 con-
tract 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 1s authorized 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 authorized, 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 commission 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
between the commission and any such county, city or town.

Section 5. General powers of commission.—Every commission
shall have the following powers:

(1) To adopt and have a common seal and to alter the same at
pleasure ;

(2) To sue and to be sued;

(3) In the name of the commission and on its behalf, to acquire,
hold and dispose of its fees, rents and charges and other revenues:

(4) In the name of the commission but for the cities, counties
and towns in whole or in part embraced within the district, to acquire,
hold, and dispose of other personal property for the purposes of the
commission ;

(5) In the name of the commission but for the cities, counties
and towns in whole or in part embraced within the district, to acquire
by purchase, gift, condemnation or otherwise, real property or rights
or easements therein, necessary or convenient for the purposes of the
commission, subject to mortgages, deeds of trust, or other liens or other-
wise, and to hold and to use the same, and to dispose of property so ac-
quired no longer necessary for the purposes of the commission ; provided
that the right of condemnation granted herein shal! be subject to the same
provisions as are provided in section thirty-eight hundred thirty-two
of the Code of Virginia concerning the condemnation of any property
belonging to a corporation possessing the power of eminent domain by
another public service corporation.

(6) To borrow money for the purposes of the commission and
to issue therefor its bonds, and to provide for and secure the payment
of its bonds and the rights of the holders thereof, and to fund or refund
its bonds by the issuance of bonds hereunder :

(7) To accept gifts or grants or real or personal property, money,
material, labor or supplies for the purposes of the commission and to
make and perform such agreements and contracts as may be necessary
or convenient in connection with the procuring or acceptance of such
gifts or grants;

(8) To enter on any lands, waters and premises for purpose of
making surveys, borings, soundings and examinations for the purpose
of the commission ;

(9) To make and enforce rules and regulations for the manage-
ment and regulation of its business and affairs and for the use, main-
tenance and operation of its facilities and properties, and to amend the
same ;

(10) To do and perform any acts and things authorized by this
act under, through or by means of its own officers, agents and employees,
or by contracts with any persons; and

(11) To execute any and all instruments and do and perform any
and all acts or things necessary, convenient or desirable for the purposes
of the commission or to carry out the powers expressly given in this act.

Section 6. Purposes and duties of commission.—(a) The pur-
poses of every commission shall be the relief of the waters of the district
from pollution and the consequent improvement of conditions affecting
the public health.

(b) Every commission is hereby authorized and directed to acquire,
in the name of the commission but for the cities, counties and towns
in whole or in part embraced within the district, by purchase, gift, con-
demnation or otherwise, and, notwithstanding the provisions of any
charter, ordinance or resolution of any county, city or town to the con-
trary, to construct, maintain, operate and use such trunk, intercepting
and outlet sewers, conduits, pipe lines, pumping and ventilating stations,
treatment plants or works at such places, and such other plants, struc-
tures, boats and conveyances, as in the judgment of the commission will
provide an effective and satisfactory method for promoting the purposes
of the commission.

(c) The commission is hereby authorized and directed when in
the judgement of the commission its sewage disposal system, or part
thereof, will permit, to collect from any and all public sewage systems
within the district all sewage and treat and dispose of the same in such
manner as to promote the purposes of the commission.

Section 7. Fees, rents and other charges—(a) Every commis-
sion is hereby authorized and empowered to charge and collect fees,
rents, or other charges for the use and services of the sewage disposal
system. Such fees, rents and charges may be charged to and collected
from any person contracting for the same or from the owner or lessee
or tenant, or some or all of them, who uses or occupies any real estate
which directly or indirectly is or has been connected with the sewage
disposal system, or from or on which originates or has originated sew-
age or industrial wastes, or either, which directly or indirectly have en-
tered or will enter the sewage disposal system, and the owner or lessee
or tenant of any such real estate shall pay such fees, rents and charges
to the commission at the time when, and place where, such fees, rents
and charges are due and payable.

(b) Such fees, rents and charges being in the nature of use or
service charges, shall as nearly as the commission shall deem practicable
and equitable, be uniform throughout the district for the same type,
class and amount of use or service of the sewage disposal system, and
may be based or computed either on the consumption of water on or
in connection with the real estate, making due allowance for commercial
use of water, or on the number and kind of water outlets on or in con-
nection with the real estate or on the number and kind of plumbing or
sewage fixtures or facilities on or in connection with the real estate,
or on the number or average number of persons residing or working
on or otherwise connected or identified with the real estate to or on any
other factors determining the type, class and amount of use or service
of the sewage disposal system, or on any combination of such factors.

(c) The commission shall prescribe and from time to time when
necessary revise a schedule of such fees, rents and charges which shall
comply with the terms of any contract of the commission with the hold-
ers of bonds of the commission made pursuant to section eight of this
act and in any event shall be such that the revenues of the commission
will at all times be adequate to pay all expenses of operation and main-
tenance of the sewage disposal system of the commission, necessary to
preserve said system and to assure its operation as a going concern,
including reserves, insurance, extensions, and replacements, and to pay
punctually the principal of the interest on any bonds or other indebted-
ness of the commission and to maintain adequate reserves or sinking
funds therefor. Said schedule shall be so prescribed and from time to
time revised by the commission after public hearing which shall be held
by the commission upon such public notice as the commission may deter-
mine to be reasonable. The commission shall likewise fix and determine
the time or times when and the place or places where such fees, rents and
charges shall be due and payable and may require that such fees, rents
and charges shall be paid in advance for periods of not more than six
months.

A copy of the schedules of all fees, rents and charges in effect shall
at all times be kept on file at the principal office of the commission, and
such schedules shall at all reasonable times be open to public inspection.

(d) In the event that the fees, rents or charges charged by the
commission for the use and services of the sewage disposal system by
or in connection with any real estate shall not be paid and when due,
then and at that time interest shall begin to accrue thereon at the rate
of one per centum per month and the owner, lessee or tenant, as the
case may be of such real estate shall, until such fees, rents and charges
shall be paid with such interest to the date of payment, cease to dispose
of sewage or industrial waste originating from or on such real estate
by discharge thereof directly or indirectly into the sewage disposal sys-
tem, and if such owner, lessee or tenant shall not cease such disposal
within two months thereafter it shall be the duty of each county, city,
town and other public corporation, board or body supplying water to or
selling water for use on, such real estate, within five days after receipt
of notice of such facts from the commission, to cease supplying water
to, and selling water for use on, such real estate. If such county, city,
town or other public corporation, board or body shall not within such
time cease supplying water to, and selling water for use on, such real
estate, the commission may shut off the supply of water to such real
estate and for such purpose, may enter on any lands, waters and prem-
ises of such county, city, town or other public corporation, board or body,
or of any person. The water supply to or for any person, or for use on
real estate of any person, shall not be shut off or stopped under the pro-
visions of this subsection, if the State Health Commissioner, upon ap-
plication of the local board of health or health officer of the county, city
or town wherein such water is supplied or such real estate is located,
shall have found and shall certify to the authorities charged with the
responsibility of ceasing to supply or sell such water, or to shut off the
supply of such water, that ceasing to supply or shutting off such water
supply will endanger the health of such person and the health of others
in such county, city or town.

(e) The commission shall keep and preserve a complete register,
or registers, open to public inspection, of all fees, rents and other charges
which have been charged by the commission to the owners or lessees
or tenants of any real estate for the use and services of the sewage dis-
posal system and have become due and payable and have not been paid.
Such register or registers shall be kept in such place or places as the
commission shall determine.

(f{) From any action of the Sanitation Commission in prescribing
fees, rents and charges, or either of them, pursuant to the provisions
of this act, an appeal may be taken upon the petition of any county, city
or town constituting a part of the district, or upon petition of any fifty
persons, resident or doing business in the district, to the State Corpora-
tion Commission. At least sixty days prior to filing such petition with
the State Corporation Commission, such county, city or town or interest-
ed parties shall notify the Sanitation Commission of such intended peti-
tion and of the fees, rents and charges complained of, in order that the
Sanitation Commission may be afforded an opportunity to make such
changes in such fees, rents and charges as it shall deem proper. After
such petition shall have been filed with the State Corporation Commis-
sion and after such county, city or town or other petitioners shall have,
if required by the State Corporation Commission, executed and filed
with the State Corporation Commission a bond payable to the Common-
wealth and sufficient in amount, but not 1n excess of five hundred dol-
lars, and security to insure the prompt payment of all costs which may
be assessed against such county, city or town or other petitioners and
after such county, city or town or other petitioners shall have caused
to be published in at least one newspaper, designated by the State Cor-
poration Commission and of general circulation within the district, such
notice of such appeal as shall be prescribed by the State Corporation
Commission, the State Corporation Commission is authorized to make
such examinations and studies, to hold such hearings as may be re-
quired, to issue subpoenas requiring the attendance of witnesses and
the production of records, memoranda, papers and other documents
before the State Corporation Commission or any officer or agent there-
of, to administer oaths and to take testimony thereunder, and to fix in
accordance with the provisions of this act applicable to the Sanitation
Commission, subject to the right of further appeal by the Sanitation
Commission or the said interested parties to the Supreme Court of Ap-
peals, such fees, rents and charges. In each such proceeding the State
Corporation Commission shall ascertain the costs incurred by it, includ-
ing in such costs actual expenses incurred and a fair apportionment of
overhead expenses, and shall assess the same against either the petitioner
or petitioners, or the Sanitation Commission, or shall apportion the
costs between the petitioner or petitioners and the Sanitation Commis-
sion, according to principles applicable in courts of equity.

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 tak-
ing 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 exceeding the amount stated in such resolution. The question so
submitted shall be “Do you favor the issuance of not exceeding $............
saceececeeeecees bonds of the.................---.----scseeeeeeeeeeeee-ee--- Sanitation district com-
mission (inserting the amount of bonds stated in such resolution and the
name of the commission) ?” 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 vot-
ing at the said election shall have voted “yes” and in favor of the issu-
ance 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 article 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, borrowing of money and
issuing of other bonds and obligations shall be determined 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 de-
nominations, carry such registration privileges, be executed in such
manner, be payable in such medium of payment, at such place or places,
be subject to acceleration of maturity on such contingencies and terms,
and be subject to such terms of redemption with or without premium,
as such resolution or resolutions shall provide. Such bonds may be sold
at public or private sale for such price or prices as the commission shall
determine, provided the interest cost to maturity of the money received
from any such bonds simultaneously 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 prin-
cipal of or interest on such bonds or other bonds of the commission or
the payment of expenses of construction, operation or maintenance of
the sewage disposal system, including provisions giving priority, not-
withstanding any provision or rule of law otherwise to the contrary,
to the obligation to perform such contractual provisions to secure pay-
ment of such principal or interest over any or all other obligations and
liabilities of the commission ;

(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 facilities and other property of the
commission ; .

(7) Restrictions on the power of the commission to limit and
regulate the use of the sewage disposal system, facilities and other prop-
erty 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 in-
debtedness of the conmnission ;

(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 article ; or

(13) Any other matter which the commission shall determine to
be necessary in order to carry out and effectuate the purposes of the
commission.

(e) Any provisions of law to the contrary notwithstanding, any
bonds or temporary bonds issued pursuant to the authority of this arti-
cle shall be deemed to be fully negotiahle 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
available therefor, to purchase any bonds of the commission.

Section 9. Special remedies of bondholders.—(a) The provisions
of this section shall be applicable to a series of bonds of a comnussion only
if the resolution or resolutions authorizing such series of bonds shall
provide in substance that the holders of the bonds of such series shall be
entitled to all the benefits, and be subject to the provisions of this section.

(b) In the event that the commission shall default in the payment
of the principal of or interest on any bonds of such series after the same
shall become due, whether at maturity or upon call for redemption, and
such default shall continue for a period of thirty days, or in the event that
the commission shall fail or refuse to comply with the provisions of this
act relating to or affecting the payment or security of such bonds or the
collection of fees, rents or charges, or other revenues therefor, or shall
fail or refuse to carry out and perform the terms of any contract with
the holders of any such bonds, and such failure or refusal shall continue
for a period of thirty days after written notice of its existence and nature
to the commission the holders of twenty-five per centum in aggregate
principal amount of such bonds then outstanding, by instrument or
instruments filed with the Governor of the Commonwealth of Virginia
and proved or acknowledged in the same manner as a deed to be record-
ed, may appoint a trustee to represent the holders of all bonds of such
series for the purposes herein provided.

(c) Such trustee may, and upon written request of the holders
of twenty-five per centum in principal amount of the bonds of such series
then outstanding shall, in his or its name:

(1) By mandamus or other suit, action or proceeding at law or in
equity, enforce all rights of the holders of such bonds, including the
right to require the commission to collect fees, rents and other charges
adequate to carry out any agreement as to, or pledge of, such fees, rents
or. other charges, or the revenues therefrom, and to require the com-
mission to carry out and perform the terms of any contract with the
holders of such bonds or its duties under this act;

(2) Bring suit upon all or any part of such bonds;

(3) By action or suit in equity, require the commission to account
as if it were the trustee of an express trust for the holders of such bonds:

(4+) By action or suit in equity, enjoin any act or thing which
may be unlawful or in violation of the rights of the holders of such
bonds:

(5) Declare all such bonds due and payable, whether or not in
advance of maturity, and, if all defaults shall be made good, then with
the consent of the holders of twenty-five per centum of the principal
amount of such bonds then outstanding, annul such declaration and
its consequences, provided that before declaring such bonds due and
payable, the trustee shall first give thirty days’ notice in writing to the
commission.

(d) If the resolution or resolutions authorizing such series of
bonds shall contain the provision authorized by subsection (a) of this
section and shall further provide in substance that any trustee appointed
pursuant to this section shall have the powers provided by subsection
(d) of this section, then such trustee, whether or not all of the bonds
of such series shall have been declared due and payable, shall be en-
titled as of right to the appointment of a receiver, who may enter upon
and take possession of any facilities or property operated by the com-
mission any of the revenues from the operation of which are pledged
for the security of such bonds, and operate and maintain the same and
fix, charge, collect and receive all fees, rents and other charges and
other revenues thereafter arising from such operation in the same man-
ner as the commission itself might do, and shall deposit all moneys col-
lected in a separate account and apply the same in accordance with the
duties and contracts of the commission in such manner as the court ap-
pointing such receiver shall direct.

(e) In any suit, action or proceeding by such trustee, the fees,
counsel fees and expenses of such trustee and of the receiver, if any, shall
constitute taxable costs and disbursements, and all costs and disburse-
ments, allowed by the court shall be a first charge upon any fees, rents
and other charges, and revenues of the commission pledged for the pay-
ment or security of such bonds.

(f) Said trustee shall, in addition to the foregoing, have and
possess all of the powers necessary or appropriate for the exercise of any
functions specifically set forth herein or incident to the general rep-
resentation of the holders of the bonds of such series in the enforce-
ment and protection of their rights.

Section 10. Interim certificates—Pending the preparation, execu-
tion and delivery of definitive bonds of the commission to the purchaser
or purchasers of such bonds, interim certificates or other obligations
may be issued by the commission to said purchaser or purchasers. Such
interim certificates or obligations shall be in such form and contain such
terms, conditions and provisions as the commission issuing the same
may determine.

Section 11. Agents and employees of commission.—The commis-
sion is hereby authorized and empowered to appoint a general manager
for the district, prescribe his duties and fix his salary, such general
manager to be responsible to the commission and to serve at its pleasure.
The general manager shall appoint all other agents and emplovees of the
commission, except as otherwise provided in section four (b) hereof,
dismiss them, fix their salaries or remuneration within the limits auth-
orized by the commission, assign their positions and titles, define their
respective powers and duties, and require them, or any of them, to give
bond payable to the Commonwealth of Virginia in such penalty as shall
be fixed by the commission, conditioned upon the faithful discharge of
their duties.
Section 12. Use of public sewer and disposal facilities—In order
to carry out and effectuate the purposes of the commission, every com-
mission is hereby authorized to enter upon and use and connect with
any existing public drains, sewers, conduits, pipe lines, pumping and
ventilating stations and treatment plants or works or any other public
property of a similar nature within the district, deemed proper by the
commission in the exercise of the powers and performance of the duties
set forth in this act, if deemed necessary by the commission, close off
and seal outlets and outfalls therefrom. The commission shall not, how-
ever, take possession of such treatment plant unless it acquires the same
by purchase, condemnation or otherwise.

Section 13. Use of public places.—In order to carry out and ef-
fectuate the purposes of the commission, every commission is hereby
authorized to construct and operate its trunk, intercepting and outlet
sewers, conduits and pipe lines, along, over, under and in any streets,
alleys, highways and other public places within the district; in so con-
structing its facilities, it shall see that the public use of such streets,
alleys, highways and other public places is not unnecessarily interrupted
or interfered with and that such streets, alleys, highways and other public
places are restored to their former unsefulness and condition within
a reasonable time; to this end the commission shall cooperate with the
State Highway Commission and the appropriate officers of the respec-
tive counties, cities and towns having an interst in such matters.

Section 14. Approval of disposal methods.—The method proposed
to be used by a commission for treating and disposing of sewage and
industrial wastes so as to prevent the pollution of the waters of the dis-
trict, and any substantial change in the said method, shall, before being
finally adopted or used by the commission, be approved by the State
Health Commission as effective and satisfactory for the purpose intended.

Section 15. Prohibition of pledge or mortgage of system.— Neither
the commission nor any of the counties, cities or towns in whole or in
part embraced within the district shall have power to mortgage, pledge,
encumber or otherwise dispose of any part of the sewage disposal system
of a commission, except such part or parts thereof as may be no longer
necessary for the purposes of the commission, whether the same shall
originally have been acquired by such commission or by one of said
counties, cities or towns. The provisions of this section shall be deemed
to constitute a contract with the holders of bonds of the commission.
The sewage disposal system of a commission shall be exempt from any
and all lability, which may be incurred by, or imposed upon, the com-
Niussion, Or any county, city or town, which, in whole or in part, con-
stitutes any part of any district.

Section 16. Funds of commission.—(a) All moneys of a commis-
sion, whether derived from the sale of bonds or other obligations or from
the collection of fees, rents and other charges by the commission or from
anv contract of the commission or from any other source shall be col-
lected, received, held, secured and disbursed in accordance with any
contract of the commission relating thereto. The following provisions
of this section shall be applicable to any such moneys only if and to the
extent that they are consistent with such contract or contracts of the
commission.

(b) Such moneys shall not be required to be paid into the State
treasury or into the treasury or to any officer of any county, city or town.

(c) All such moneys shall be deposited by the commission in a
separate bank account or accounts, appropriately designated, in such
banks or trust companies as may be designated by the commission.

(d) All deposits of such moneys shall be secured by bonds or
other direct unlimited obligations of the United States of America or
of the State of Virginia or of any county, city or town of the State of
Virginia or of the commission of a market value at least equal at all
times to the amount of such deposits, and all banks and trust companies
are authorized to give such security for such deposits.

Section 17. Accounts and records.—Every commission shall keep
and preserve complete and accurate accounts and records of all moneys
received and disbursed by it and of all of its business and operations and
of all property and funds owned or managed by it or under its control,
and shall prepare and transmit to the State Health Commissioner and to
the governing body of each city, county and town which is in whole
or in part embraced within the district, annually and at such other times
as the State Health Commissioner shall require, complete and accurate
reports as to the state and content of such accounts and records, together
with such information with respect thereto as the State Health Commis-
sioner may require.

Section 18. Special provisions for disposal of sewage and other
wastes.—(a) Every commission is hereby authorized to enter into con-
tracts with the United States of America, or with any department, insti-
tution or agency thereof, on such terms and conditions as the commis-
sion may approve, providing for or relating to the treatment and dis-
posal of sewage or industrial wastes of or originating in or on any reser-
vation, property, institution, building, or structure within the district
owned or under the control of the United Stafes of America, or any
department, institution or agency thereof, by means of the sewage dis-
posal system or such other facilities as the commission may determine
to provide for such purpose, or in such other manner as said contract
may provide.

(b) Every commission is hereby authorized to provide, construct,
operate and maintain facilities for the treatment and disposal of indus-
trial wastes originating in the district, and to enter into contracts with
any person, on such terms and conditions as the commission may approve,
providing for or relating to the treatment and disposal of any such in-
dustrial wastes.

(c) Every commisison is hereby authorized to enter into contracts
with any person owning or operating any sewer system within the dis-
trict or engaged in treatment or disposing of sewage or industrial wastes
originating in the district, on such terms and conditions as the commis-
sion may approve, providing for or relating to the treatment and dis-
posal of any sewage or industrial wastes collected in such sewer system:
or by such person.
Section 19. Collection of service charges.——The commission shall
have the right to recover the amount of any fees, rents or other charges
charged by the commission to the owner or lessee or tenant or con-
tracting party, as set forth in section seven of this act, for the use and
services of the sewage disposal system by or in connection with such
real estate and of the interest which may accrue thereon, by any action,
suit or proceeding permitted by law or in equity.

Section 20. Alternative to collection of service charges—Any
commission, and any county, city or town in whole or in part embraced
within the district, are hereby authorized to enter into a contract or con-
tracts on such terms and conditions as such contract or contracts may
contain, providing for the collection by such county, city or town and
payment over to the commission of the fees, rents or other charges charg-
ed or to be charged by the commission to the owners or lessees or tenants
of real estate within such county, city or town, or providing for the pay-
ment to the commission by such county, city or town of a sum or sums
of money in lieu of all or part of the fees, rents and other charges which
would otherwise be charged by the commission to the owners or lessees
or tenants of real estate within such county, city or town. Such county,
city or town is hereby vested with powers to do everything necessary
or proper to carry out and perform every such contract, including the
same powers with respect to fees, rents and other charges as are con-
ferred by this act upon a commission, and to provide for the payment
or discharge of any obligation thereunder by the same means and in the
same manner as any other of its obligations, except that no tax shall be
levied on real estate for such obligations. The commission is hereby
authorized to reduce ratably in accordance with such contract the fees,
rents and other charges which would otherwise be charged by the com-
mission to the owners or lessees or tenants of real estate within such
county, city or town, but nothing in this section or any such contract
shall be construed to prevent the commission from charging to and
collecting from such owners or lessees or tenants of such real estate, in
the same manner as provided for such fees, rents and other charges,
any deficiency in any payment agreed to be made by such county, city
or town.

Section 21. Powers and duties of counties, cities and towns.—(a)
Each county, city or town in whole or in part embraced within a dis-
trict shall, at the request of the commission, make available to the com-
mission or the agents or employees thereof, any or all maps, plans, speci-
fications, records, books, accounts or other data or things deemed neces-
sary by the commission in the exercise of its powers and duties under
this act.

(b) Each county, city, town or other public body shall promptly
pay to any commission all fees, rents and charges which the commission
may charge to it as owner or lessee or tenant of real estate in accordance
with section seven of this act, and shall provide for the payment thereof
in the same manner as other obligations of such county, city, town or
public body. °

(c) Any commission, and any county, city or town in whole or
in part outside of the district, are hereby authorized to enter into a con-
tract or contracts on such terms and conditions as such contract or con-
tracts may contain, providing for or relating to the treatment and dis-
posal of sewage or industrial wastes originating in such county, city or
town, by means of sewage disposal system or such other facilities as the
commission may determine to provide for such purpose, and such county,
city or town is hereby authorized to do everything necessary or proper
to carry out and perform every such contract and to provide for the
payment or discharge of any obligation thereunder by the same means
and in the same manner as any other of its obligations.

In the event any such contract is entered into in accordance with the
provisions of this subsection, provision shall be made therein whereby
the cost of rendering the services herein referred to, to such county,
city or town, will be borne by such county, city or town.

(d) The powers conferred by this act on counties, cities and towns
are in addition to and supplemental to the powers conferred by any other
law, and may be exercised by resolution of the governing bodies thereof
without regard to the terms, conditions, requirements, restrictions or
other provisions contained in any other law, general or special, except
the State Water Control Law passed at the nineteen hundred
forty-six regular session of the General Assembly, or in any charter, ex-
cept that where fees, rents and charges are fixed by a city or town, that
power shall be exercised by ordinance.

Section 22. Prohibitions and penalties. — (a) No county, city,
town or other public body, or person shall discharge, or suffer to be
discharged, directly or indirectly into any waters of the district any
sewage, industrial wastes or other refuse which may or will cause or con-
tribute to pollution of any waters of the district, provided, that this
provision shall be applicable only to such part or parts of the waters of
a district as shall be bounded and described in a notice, published in a
newspaper or newspapers having, in the aggregate, general circulation
in all of the counties and cities within which or bordering upon which
such part or parts of the waters of the district are located, to the effect
that the commission has provided facilities reasonably sufficient in its
opinion for the disposal of sewage, which by discharge from public sewer
systems might cause or contribute to pollution of the bounded and de-
scribed part or parts of such waters, and that pollution of the same is
forbidden by law. Such a notice shall constitute prima facie evidence
of the existence of facilities sufficient for the disposal of such sewage.
The provisions of this section shall not prohibit the disposal of sewage
and industrial wastes in the manner in which the same is now being dis-
posed of, or in any other reasonable manner, by any county, city or town,
no part of which constitutes a part of any district, or by any person in
any such county, city or town, no part of which constitutes a part of any
district.

(b) No county, city, town or other public body, or person shall
discharge, or suffer to be discharged, directly or indirectly, into the
sewage disposal system or any other facilities of or provided by a com-
mission, any matter or thing which is or may be injurious or deleterious
to such sewage disposal system or other facilities.

(c) Jurisdiction to enforce the provisions of this section and to
grant any remedy or relief authorized by this section shall be in the cir-
cuit court of any county and in the corporation court of any city in
whole or in part embraced within the district, or within which are located
any waters of the district. The remedies, relief and jurisdiction author-
ized by this section shall be concurrent and cumulative.

Section 23. Liability on bonds of commission.—The bonds, notes
and other obligations, and any indebtedness, of a commission shall not
be in any way a debt or liability of the State, or of any county, city
or town in whole or in part embraced within the district and shall not
create or constitute any indebtedness, liability or obligation of the State
or of any such county, city or town, either legal, moral or otherwise and
nothing in this act contained shall be construed to authorize a commis-
sion or district to incur any indebtedness on behalf of or in any way to
obligate the State or any county, city or town, in whole or in part em-
braced within the district.

Section 24. Investment in bonds.—Any bonds issued pursuant to
the authority of this act are hereby made securities in which all public
officers and bodies of this State and all political subdivisions thereof,
all insurance companies and associations, all savings banks and savings
institutions, including savings and loan associations, in the State, may
properly and legally invest funds in their control.

Section 25. Ordering and conduct of elections.—Every order made
pursuant to this act requiring the opening of a poll and the taking of
the sense of the qualified voters of a district or proposed sanitation dis-
trict on a question shall designate the question and a date for holding
such election not less than thirty days from the date of such order, and
may be directed as writs of election are directed for an election district,
or to fill a vacancy in the General Assembly or in Congress. It shall be
the duty of the regular election officers of the counties and cities in
whole or in part embraced within the district or proposed sanitation
district to cause to be printed and distributed in the manner prescribed
by law for printing and distributing other ballots the proper number of
ballots which shall be separate from any other ballots. Said ballots shall
set forth the question designated in such order and shall be in substan-
tially the following form:

“(Here shall appear the question designated in the order)”

YES
O NO

To vote “Yes” on the question, place a checkmark (\/) or cross
(+ or X) in the space opposite the word “Yes”; to vote “No” on the
question, place a checkmark (\/) or cross (-++ or X) in the space op-
posite the word “No”.

Said regular election officers, at the time designated in such order,
shall open the polls at the various voting places in the district or pro-
posed sanitation district and at any other voting places at which any
qualified voter of the district or proposed sanitation district is entitled to
vote, and shall conduct such election and close the polls in such manner
as is provided by law in other elections. The ballots shall be counted
and returns made and canvassed and the results ascertained and made
known as in other elections, and the results certified by the commissioners
of election to the Secretary of the Commonwealth, all in such manner
as to show the respective numbers of affirmative and negative votes
cast at said election. The Secretary of the Commonwealth shall record
and tabulate the reports of the commissioners of election and shall certify
the result of the said election to the court which made the order auth-
orizing and requiring such election.

Section 26. Court proceedings.—Wherever in this act the circuit
court of any county, or the corporation court of any city, is authorized
to accept any petitions or papers, make any order, hold any hearing,
hear, consider and determine any question or do any other act or thing,
such court, or a judge thereof in vacation, may do and perform the
same.
Section 27. Inviolability of rights and remedies.—The State does
pledge to and agree with the holders of any bonds or other obligations
issued by any commission pursuant to this act that the State will not
limit or alter the rights hereby vested in such commission to charge and
collect such fees, rents and charges and other revenues as may be con-
venient or necessary in order to comply with the terms and provisions
of any contract or contracts made by such commission with such holders,
or in any way impair the rights and remedies of such holders, until the
bonds and other obligations, together with interest thereon, with interest
on any unpaid installments of interest, and all costs and expenses in
connection with any action or proceeding by or on behalf of such holders
are fully met and discharged.

Section 28. Punishment of violations.—Any person violating any
provision of this act shall be guilty of a misdemeanor and upon convic-
tion shall be punished accordingly.