Chap. 335.-—An ACT in relation to sanitation districts heretofore or hereafter
-. created, for the relief of the tidal waters of the State from pollution and
the consequent improvement of conditions affecting the public health and
the natural oyster beds, rocks and shoals; providing for the creation of such
districts; providing for the creation and organization of sanitation com-
missions 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 regu-

- lating 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 commissions. : [fH B 85]

Approved March 31, 1938 _

1. Be it enacted by the General Assembly of Virginia, as follows:
Section 1. Short title. This act may be known, designated and
cited as the “‘sanitation districts law of nineteen hundred and thirty-
eight.” , , | a
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” means the sanitation commission
created and existing pursuant to section four of this act in and for.a
district ; : ;

(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 prop-
erty 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 bound-
aries of any other sanitation district ;

(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 public use;

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

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

(f) Rendering such water unfit for commercial use;

(g) 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, re-
place, improve and repair; -
_ (11) The term “person” includes an individual, partnership, as-
sociation, or car peraOn

(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 af 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 waters affected by the ebb and
flow of the tide and none of which is 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 dis-
trict 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 pro-
posed sanitation district. Said order shall direct notice of such hear-
ing to be given by publication once a week for at least three consecu-
tive weeks beginning at least twenty-eight days prior to the day of
such hearing in some newspaper or newspapers, 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 the
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, shall 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 waters affected by the ebb and flow of the tide
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 territory not included in the proposed or some
existing sanitation district, (4) that the creation of the proposed sani-
tation district in accordance with this act will provide a means for
abating or preventing the pollution of tidal 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 provid-
ing a practical means for abating or preventing the pollution of the
tidal waters of the proposed sanitation district, and (6) that the peti-
tion 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 pro-
posed 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 two hundred qualified voters of the proposed
sanitation district, including not less than fifty qualified voters of each
city and county and town in’ whole or in part embraced within the pro-
posed sanitation district.

(d) Any person interested may answer the petition and make
defense 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 sanita-
tion 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 sus-
tained 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 opening 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 sanita-
tion district. The question so submitted shall be “Do you favor the
creation Of the 2... ee ceecsceceececececeoeeeeeeseeeeeeee. (inserting 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 election 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
provided for in subsection (d) of this section, it shall appear that a
majority of the qualified voters 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.

(f) 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
pollution of the tidal waters of the proposed sanitation district, to ap-
prove, as above referred to, the creation of the proposed sanitation dis-
trict. The governing body of each city and county and town is hereby
authorized and empowered, in its discretion, to adopt resolutions, as
ibove 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
Xr pursuant to a special act of the General Assembly, a commission
s hereby created as a body corporate, invested with the rights, powers
ind authority and charged with the duties cet forth in thie nee OTL.
commission shall be known by the name of the district, except that tne
vord “commission” shall be substituted for the word “district”.
?xcept as a special act creating the district shall otherwise provide, the
commission shall consist of five members, residents of the district, ap-
yointed by the Governor. Except as a special act creating the district
‘hall otherwise provide, in making the original appointments, one of
he members shall be appointed for a term of one year, one for a term
yf 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
unexpired terms.

(b) 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 secre-
tary-treasurer, 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 ex-
ceeding 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 attend-
ance 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 com-
pensation 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
members 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 without 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.

(£) Each member of the commission shall, before entering upor
the discharge of his duties under this act, take and subscribe the oatk
of office required by section thirty-four of the Constitution of Vir.
ginia, and give bond payable to the Commonwealth of Virginia in forn
approved by the Attorney-General, in such penalty as shall be fixec
from time to time by the Governor, with some surety or guaranty com-
pany duly authorized 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 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 employee 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 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 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 non-
feasance, 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 otherwise 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 com-
mission ; :

(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
otherwise, and to hold and to use the same, and to dispose of property
so acquired no longer necessary for the purposes of the commission ;

(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 the purpose
of making surveys, borings, soundings and examinations for the pur-
poses 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 purposes
of every commission shall be the relief of the tidal waters of the district
from pollution and the consequent improvement of conditions affecting
the public health and the natural oyster beds, rocks and shoals.

(b) Every commission is hereby authorized and directed to ac-
quire, 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, condemnation or otherwise, and, notwithstanding the provisions
of any charter, ordinance or resolution of any county, city or town to
the contrary, to construct, maintain, operate and use such trunk, inter-
cepting and outlet sewers, conduits, pipe lines, pumping and ventilating
stations, treatment plants or works at such places, and such other plauts,
structures, 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 judgment 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 commission
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 the
owner or lessee or tenant, or some or all of them, of 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
sewage or industrial wastes, or either, which directly or indirectly have
entered 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 commer-
cial use of water, or on the number and kind of water outlets on or in
connection 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 or on any
other factors determining the type, class and amount of use or ser-
vice 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
holders 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 com-
mission will at all times be adequate to pay all expenses of operation
and maintenance of the sewage disposal system of the commission, nec-
essary 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 and interest on any bonds or
other indebtedness of the commission and to maintain adequate re-
serves or sinking funds therefor. 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 one year.

(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 as 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 and tenant 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 wastes originating from or on such real estate by
discharge thereof directly or indirectly into the sewage disposal system,
and if such owner, lessee and 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 provisions of this sub-section, if 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 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 shut-
ting off such water supply will endanger the health of such person or
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 disposal system and have become due and payable and have
not been paid. Such register or registers shall set forth the name of
each such owner or lessee or tenant as it appears upon the records
of the commission, the amount so charged to such owner or lessee or
tenant, and the date when the same became due and payable, and shall
describe the parcel or parcels of real estate of which he is the owner
or lessee or tenant, and to which such use and services are applicable
but it shall be sufficient to describe such real estate as it is described
for the purposes of taxation, either by or for the county or the town
or the city in which such real estate is subject to taxation, in the land
book of the commissioner of the revenue or in any other public record.
Such register or registers shall be kept in such place or places as the
commission shall determine.

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 advisable to issue bonds for the purposes of the commission, such
resolution shall be certified to the circuit court of a county or corpora-
tion 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 exceeding the amount stated in such resolu-
tion. The question so submitted shall be “Do you favor the 1ssuance
of not exceeding $.............-.....----- ads @f (ite scene
sanitation commission (inserting amount of bonds stated in such
resolution and the name of the commission) ?” If upon the certifica-
tion 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 anticipa-
tion 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 denomi-
nations, 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 re-
ceived 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 sev-
eral 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 tunds of the commission to secure the payment of the
principal of or interest on such bonds or other bonds of the commission
or the payment of expenses of 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 obliga-
tion to perform such contractual provisions to secure payment 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 of 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 dis-
position of the sewage disposal system, 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
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
commission.

(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 thirty-three of the Code of
Virginia.

(f{) 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
accountability 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 redemp-
tion date or, if such bonds be not redeemable, the principal amount
thereof, together with, in either case, interest accrued to the date of
purchase.

Section 9, Special remedies of bondholders——-(a) The provisions
of this section shall be applicable to a series of bonds of a commission
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 con-
tract with the holders of any of such bonds, and such failure or refusal
shall continue for a period of thirty days after written notice of its ex-
istence 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 and proved or
acknowledged in the same manner as a deed to be recorded, may ap-
point 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 pay-
able, 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 pur-
suant 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 entitled
as of right to the appointment of a receiver, who may enter upon and
take possession of any facilities or property operated by the commission
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 manner
as the commission itself might do, and shall deposit all moneys collected
in a separate account and apply the same in accordance with the duties
and contracts of the commission in such manner as the court appoint-
ing 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 dis-
bursements, allowed by the court shall be a first charge upon any fees,
rents and other charges, and revenues of the commission pledged for
the payment or security of such bonds.

(f) Said trustee shall, in addition to the foregoing, have and pos-
sess all of the powers necessary or appropriate for the exercise of any
functions specifically set forth herein or incident to the general repre-
sentation of the holders of the bonds of such series in the enforcement
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 chairman
is hereby authorized and empowered, except as otherwise provided in
subsection (b) of section four of this act, to appoint all agents and em-
ployees of the commission, dismiss them, fix their salaries or remunera-
tion, 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
chairman conditioned upon the faithful discharge of their duties. Any
salary or remuneration payable to any agent or employee in excess of
one thousand two hundred dollars per annum shall first be approved by
the Governor.

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, and, if deemed necessary by the commission, close
off and seal outlets and outfalls therefrom. The commission shall not,
however, take possession of any 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 effec-
tuate the purposes of the commission, every commission is hereby au-
thorized 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 usefulness and condition with-
in a reasonable time; to this end the commission shall cooperate with the
State Highway Commission and the appropriate officers of the respective
counties, cities and towns having an interest 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 tidal waters of the
district, and any substantial change in the said method, shall, before
being finally adopted or used by the commission, be approved by the
State Health Commissioner as effective and satisfactory for the pur-
pose 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 sys-
tem 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 com-
mission. The sewage disposal system of a commission shall be exempt
from any and all liability which may be incurred by, or imposed upon,
the commission, or any county, city or town, which, in whole or in part,
constitutes 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 charged by the com-
mission or from any contract of the commission or from any other
source shall be collected, received, held, secured and disbursed in ac-
cordance 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 author-
ized 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 Governor, at such times
as he 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 Governor 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, in-
stitution or agency thereof, on such terms and conditions as the com-
mission may approve, providing for or relating to the treatment and
disposal of sewage or industrial wastes of or originating in or on any
reservation, property, institution, building, or structure within the dis-
trict owned or under the control of the United States of America, or
any department, institution or agency thereof, by means of the sewage
disposal 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 ap-
prove, providing for or relating to the treatment and disposal of any
such industrial wastes. OO .

(c) Every commission 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 com-
mission may approve, providing for or relating to the treatment and
disposal of any sewage or industrial wastes collected in such sewer sys-
tem or by such person.

Section 19. Lien for charges——(a) There shall be a lien upon real
estate for the amount of any fees, rents or other charges charged by a
commission to the owner or lessee or tenant of such real estate for the
use and services of the sewage disposal system by or in connection with
such real estate from and after the time when such fees, rents or charges
are due and payable, and for the interest which may accrue thereon.
Such lien shall be superior to the interest of any owner, lessee or tenant
of such real estate. :

(b) Such lien shall not bind or affect a subsequent bona fide pur-
chaser of such real estate for valuable consideration without actual
notice of such lien, until and except from the time that the amount of
such fees, rents and charges and other information as required for the
commission’s register or registers by subsection (e) of section seven
of this act are entered in a register or registers furnished for such pur-
pose by and at the expense of the commission and kept in the office where
deeds may be recorded in the county or city wherein the real estate or a
part thereof is located. It shall be the duty of the clerk in whose office
deeds may be recorded to keep and preserve and hold available for public
inspection any such register which may be delivered to him by the com-
mission and to cause entries to be made and indexed therein from time to
time upon certification by the commission for which he shall be entitled
to a fee of five cents per entry to be paid by the commission and added
to the amount of the lien.

(c) Such lien on any real estate may be discharged by the pay-
ment to the commission of the total amount of such lien, and the inter-
est which may accrue to the date of such payment, and it shall be the
duty of the commission to deliver a certificate thereof to the person
paying the same, and upon presentation thereof, the clerk having the
record of such lien shall mark the entry of such lien satisfied without
further fee. ,

(d) At any time after one year after record of any such lien. or
real estate is made in accordance with subsection (b) of this section,
such lien may be, and at the request of the commission shall be, en-
forced by some person designated by the commission in the same man-
ner and with the same effect as if the owner and each lessee or tenant
of such real estate, as the grantor or grantors, had duly executed and
delivered to such designated person a deed of trust in the form or to
the effect set forth in section five thousand one hundred sixty-six of the
Code of Virginia, granting such real estate to such designated person,
as the trustee, in trust to secure a debt to the commission as the bene-
ficiary in the amount of such lien, and the interest which may accrue,
and default had occurred in the payment of the debt secured at maturity
and in the payment of interest when due.

(e) Without limiting the effect of subsection (d) of this section
and concurrent with and cumulative to the provision there made, juris-
diction to enforce any such lien shall be in equity, and the court may
decree the real estate subject to the lien, or any part thereof, to be sold
and the proceeds applied to the payment of such lien and the interest
which may accrue to the date of such payment.

({) Nothing contained in this section shall be construed to preju-
dice the right of the commission to recover the amount of such lien,
or of the fees, rents and charges, and the interest which may accrue,
by action at law or otherwise.

Section 20, Alternative to collection of service charges.—Any com-
mission, 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 pay-
ment over to the commission of the fees, rents or other charges charged
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 les-
sees or tenants or 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 conferred 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 obligation. 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 commission to the owners or lessees or tenants of real estate within
such county, city or town, but nothing in this section or any such con-
tract 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 district
shall, at the request of the commission, make available to the commis-
sion or the agents or employees thereof, any or all maps, plans, speci-
fications, records, books, accounts or other data or things deemed nec-
essary 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 thereot
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 contract or contracts on such terms and conditions as such contract
or contracts may contain, providing for or relating to the treatment and
disposal of sewage or industrial wastes originating in such county, city
or town, by means of the 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 neces-
sary 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 sub-section, provision shall be made therein
whereby the cost of rendering the services herein refetred 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 and supplemental to the powers conferred by any other
law, and may be exercised by resolution of the governing bodies thereot
without regard to the terms, conditions, requirements, restrictions or
other provisions contained in any other law, general or special, or in
any charter, except 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 dis-
charged, directly or indirectly into any tidal waters of the district any
sewage, industrial wastes or other refuse which may or will cause or
contribute to pollution of any tidal waters of the district, provided,
that this provision shall be applicable only to such part or parts of
the tidal waters of a district as shall be bounded and described in a
notice, published in a newspaper or newspapers having, in the aggre-
gate, general circulation in all of the counties and cities within which
or bordering upon which such part or parts of the tidal 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 con-
tribute to pollution of the bounded and described part or parts of such
tidal 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 disposed 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) Any county, city, town or other public body, or person may
be restrained, enjoined or otherwise prevented from violating or con-
tinuing the violation of any provision of this section by injunction,
mandamus or any other appropriate remedy at law or in equity, by any
court of competent jurisdiction, upon action, bill, suit or other pro-
ceeding instituted by the commission or by any attorney for the Com-
monwealth.

(d) Jurisdiction to enforce the provisions of this section and to
grant any remedy or relief authorized by this section shall be in the
circuit 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 tidal waters of the district. The remedies, relief and
jurisdiction authorized by this section shall be concurrent and cumula-
tive.

(e) No violation of any provision of this section shall be deemed
to occur by reason of the discharge of sewage from any boat or vessel
while afloat or on a marine railway or in dry dock.

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 commission 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 embraced 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
district on a question shall designate the question and a date for hold-
ing 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 substantially the following form:

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

[] YES

[] 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 XX) in the
space opposite 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
proposed 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 elec-
tion to the court which made the order authorizing and requiring such
election.

Section 26. Court proceedings——Wherever in this act the cir-
cuit court of any county, or the corporation court of any city, is au-
thorized 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 convenient 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 OF plUcerdeiits vs
st on behalf of such holders are fully met and discharged.

Section 28. Punishment of violations——Any person violating any
srovision of this act shall be guilty of a misdemeanor and upon con-
riction shall be punished accordingly.

Section 29. Separability of provisions——If any question, subsec-
jon, clause or provision of this act shall be adjudged unconstitutional
sr be ineffective in whole or in part, to the extent that it is not adjudged
inconstitutional or is not ineffective, it shall be valid and effective and
10 other section, subsection, clause or provision of this act shall on
account thereof be deemed invalid or ineffective, and the inapplica-
bility or invalidity of any section, subsection, clause or provision of
this act in any one or more instances or under any one or more cir-
~umstances shall not be taken to affect or prejudice in any way its
applicability or validity im any other instance or under any other
circumstance.

Section 30. Repeals.—All acts and parts of acts, general, special,
private and local, including charter provisions and ordinances of cities
and towns, inconsistent with any of the provisions of this act are
hereby repealed to the extent of such inconsistency.

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