Chap. 71.—An ACT to amend and reenact Section 12-a, as amended, of Chapter
161 of the Acts of Assembly of 1926, approved March 17, 1926, the chapter
and section relating to sanitary districts. [S 118]

Approved March 3, 1948

3e it enacted by the General Assembly of Virginia:

1. That section twelve-a, as amended, of chapter one hundred
ixty-one of the Acts of Assembly of nineteen hundred twenty-six,
pproved March seventeen, nineteen hundred twenty-six, be
mended and re-enacted as follows:

Section 12-a. In any county in which a sanitary district has
een created, or is hereafter created under this act, the board of
upervisors of such county may, if they deem it necessary, form any
uckly populated area within such sanitary district into a smaller
istrict, hereinafter referred to as “small district”, and furnish to
1e same public utilities as provided in section three hereof, and
llocate to such “small district” such sum or sums of money from
he sanitary district bond issue, or issues, as are, in their judgment,
ecessary for the construction of public utilities within the “small
istrict” so formed.

All of the property subject to local taxation within the “small
istrict” shall be primarily obligated for the payment of the interest
nd principal on that part of the bonded indebtedness of the sanitary
istrict as is equal to that part of the proceeds therefrom which
have been allocated for use within the “small district”, and the
board of supervisors of the county shall, in the event that the
net revenue from the operation of the public utilities is not sufficient
to pay the interest and to create a sinking fund to liquidate the
amount so allocated, levy an annual tax on all of the property,
subject to local taxation in the “small district”, to pay such interest
and to make payments into the sinking fund. But nothing in this
act shall be construed to exempt the sanitary district, and the
property subject to local taxation therein, from its obligation under
and by reason of such sanitary district bond issue or issues. Provid-
ed that in any county having an area of more than forty-five and less
than sixty square miles, such small districts may be created within
a sanitary district in the same manner that sanitary districts are
created under the foregoing provisions of this section, and when
so created shall have all the powers and be subject to all the
obligations herein conferred and imposed upon sanitary districts.

In lieu of allocating such sum or sums from the sanitary district
bond issue or issues, as hereinbefore provided, the board of super-
visors, in order to raise the necessary funds to furnish public utili-
ties to such “small district”, shall have the power, subject to the
conditions and limitations of sections four to twelve, both inclusive,
of chapter one hundred sixty-one of the Acts of Assembly of
nineteen hundred twenty-six, as amended, to issue bonds of the
“small district” to an amount in the aggregate of not exceeding
eighteen per centum of the assessed value of all real estate in
the “small district” subject to local taxation and it is further
declared that whenever this paragraph is utilized the words “small
district” and “district” appearing in sections four to twelve, both
inclusive, of such chapter, as amended, shall be construed to
mean “small district” as referred to in this paragraph.

After the formation of such “small district” the board of super-
visors shall have the same power and duties in such “small district”’
as are set forth in section three of this act as amended subject to
the conditions and limitations therein prescribed.

2. An emergency exists and this act is in force from its passage.