CHAPTER 561

An Act to amend and reenact §§ 2-b, 3, 4 and 10, as amended, of Chapter
161 of the Acts of Assembly of 1926, approved March 17, 1926, relat-
ing to sanitary districts in certain counties, and validating proceed-
ings had in the creation of such sanitary districts and in connection
with bond issues thereof, the sections relating to the enlargement and
merger of sanitary districts, certain powers of sanitary districts and
to certain bond issues.
Be it enacted by the General Assembly of Virginia:

1. That sections 2-b, 3, 4 and 10, as amended, of Chapter 161 of the
Acts of Assembly of 1926, approved March 17, 1926, be amended and
reenacted as follows:

§ 2-b. The circuit court, or the judge thereof in vacation, upon the
petition of not less than fifty qualified voters residing within the bound-
aries of each sanitary district affected, provided, however, that if any of
such districts contain less than one hundred qualified resident voters, such
petition, as to such districts, shall be sufficient wf signed by not less than
fifty per centum of the qualified voters residing within the boundaries
of each of such districts, may make an order merging into one sanitary
district any two or more sanitary districts of whatsoever kind heretofore
or hereafter created in the same county * pursuant to any of the provisions
of this act, as amended, or pursuant to any other general or special law,
which order shall prescribe the metes and bounds and the name or other
designation of the new district so created. ;

Upon the filing of said petition a hearing shall be had as provided in
§ 2 hereof, and the notice of such hearing may require all interested
persons to appear and show cause (1) why any special tax or taxes levied
or to be levied for sanitary district purposes in any one or more of the
districts affected may not be likewise levied and collected in the new dis-
trict when created ;

(2) Why a special tax or taxes may not be levied in such newly
created district which shall be in lieu of any special tax or taxes levied
for sanitary district purposes in any one or more of the districts affected,
and a sufficient part of the revenue so obtained applied to pay the interest
and to create a sinking fund to retire at maturity any outstanding bonds
theretofore issued by any such district or districts; and

(3) Why the net operating revenue derived in any one or more of the
said districts from the operation of any system or systems established
under the provisions of section three of this act may not be set apart to
pay the interest on and retire at maturity the principal of any bonds there-
tofore issued in connection with any such system or systems established in
any of the said sanitary districts. Such order shall expressly preserve
and protect the rights of holders of any such outstanding bonds, and noth-
ing herein shall be construed to limit or affect the rights and interest of
any such bondholders.

§ 3. After the entry of such order creating a sanitary district of
such county, the board of supervisors or other governing body herein-
after referred to as “board of supervisors” thereof shall have the following
powers and duties, subject to the conditions and limitations hereinafter
prescribed.

(a) To construct, reconstruct, maintain, alter, improve, add to and
operate motor vehicle parking lots, water supply, drainage, sewerage, gar-
bage disposal, heat, light, power, gas, sidewalk, curbs, gutters, streets
and street name signs and fire fighting systems, for the use and benefit
of the public in such sanitary district and as to such motor vehicle parking
lots systems to make such charges for the use of such facilities as may be
prescribed by said board or body.

(a-1) To acquire, maintain and operate, within such sanitary district,
such community buildings and other recreational facilities as the board
may deem expedient or advisable, and to make such charges for the use
of such facilities as may be prescribed by the board.

(b) To acquire by gift, condemnation, purchase, lease or otherwise,
and to maintain and operate any such motor vehicle parking lots, water
supply, drainage, sewerage, garbage disposal, heat, light and power and
gas, sidewalk, curbs, gutters, streets and street name signs and fire fight-
ing systems in such district.
(c) To contract with any person, firm, corporation, municipality,
county, authority or the Federal government or any agency thereof to
acquire, construct, reconstruct, maintain, alter, improve, add to and op-
erate any such motor vehicle parking lots, water supply, drainage, sewer-
age, garbage removal and disposal, heat, light, power, gas, sidewalk, curbs,
gutters, streets and street name signs and fire fighting systems in such
district, and to accept the funds of, or to reimburse from any available
source, such person, firm, corporation, municipality, county, authority or
the Federal government or any agency thereof for either the whole or
any part of the costs, expenses and charges incident to the acquisition,
construction, reconstruction, maintenance, alteration, improvement, addi-
tion to and operation of any such system or systems.

(d) To require owners or tenants of any property in the district to
connect with any such system or systems, and to contract with the owners
or tenants for such connections. In order to require owners or tenants of
any property in the district to connect with any such system or systems,
the board of supervisors shall have power and authority to adopt ordi-
nances so requiring owners or tenants to connect with such systems, and
to use the same, and the board of supervisors shall have power to provide
for a punishment in the ordinance of not exceeding a fifty dollar fine for
each failure and refusal to so connect with such systems, or to use the
same. Before adopting any such ordinance the board of supervisors shall
give public notice of the intention to propose the same for passage by
posting hand bill notices of such proposal in three or more public places in
the sanitary district at least ten days prior to the time the ordinance shall
be proposed for passage. The ordinance shall not become effective after
its passage until ten days like notice has been given by posting copies of
such ordinance in three or more public places in the district. Violations
of such ordinances shall be tried before the county court of the county as
is provided for trial of misdemeanors, and with like right of appeal.

(e) To fix and prescribe the rates, * rents, fees and other charges of
whatsoever nature to provide funds for the acquisition, construction, oper-
ation, maintenance, improvement, betterment and extension of any system
or systems or any project or facility described in paragraphs (a) and
(a-1) of this section and for the payment of the principal of and interest
on any bonds which may be issued to provide funds for the acquisition, con-
struction, improvement, betterment and extension of any such system,
project or facility and to provide for the collection of such rates, rents,
fees and other charges. To enable the board of supervisors to enforce the
collection of such rates, rents. fees and other charges for the use of any
such system, project or facility against the person or persons, firm or
corporation using the same. the rates, rents, fees and other charges when
made for the use * thereof shall be collectible by distress, levy, garnish-
ment, attachment or otherwise without recourse to court procedure, except
so far as the selected procedure may require the same. And the board of
supervisors shall have power to designate as its agent for the purpose
of collection such officer or officers, person or persons as it may deter-
mine, and the officer or officers, person or persons shall be vested with
the same power and authority as a sheriff or constable may have in like
procedure.

Any unpaid charge shall become a lien superior to the interest of any
owner, lessee or tenant, and next in succession to county taxes, on the
real property on which the use of any such system was made and for
which the charge was imposed; provided, however, such lien shall not bind
or affect a subsequent bona fide purchaser of such real estate for valuable
consideration without actual notice of such lien, except and until from the
time that the amount of such charge is entered in the Judgment Lien
Docket kept in the office where deeds may be recorded in the political
subdivision 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 such J udgment Lien
Docket and to cause entries to be made and indexed therein from time to
time upon certification by the board for which he shall be entitled to a
fee of fifty cents per entry to be paid by the board and added to the
amount of the lien.

Such lien on any real estate may be discharged by the payment to the
board of the total amount of such lien, and interest at the rate of six per
centum per annum from the date such charge was due and payable which
may accrue to the date of such payment, and the entry fee of fifty cents,
and it shall be the duty of the board to deliver a certificate thereof to the
person paying the same, and upon presentation thereof and the payment
of the further fee of twenty-five cents by such person, the clerk having
the record of such lien shall mark the entry of such lien satisfied.

Jurisdiction 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. oo

Nothing contained herein shall be construed to prejudice the right of
the board to recover the amount of such lien, or of the charge, and the
interest which may accrue, by action at law or otherwise.

In providing for the collection of charges the board may direct that
such charges be included on the annual tax bill for the real property to
which service is rendered, and when so included such charges shall be
subject to the same provisions for collection as apply in the case of the
collection of real property taxes. The board, in its discretion, shall establish
the procedures and methods of assessment of such charges, determine the
amount of such charges and the period or periods for which such charges
shall be applicable, and shall otherwise arrange for the inclusion of such
charges on the annual tax bill.

(f) To employ and fix the compensation of any technical, clerical,
or other force and help which from time to time, in their judgment, may be
deemed necessary for the construction, operation or maintenance of any
such system or systems.

(zg) To negotiate and contract with any person, firm, corporation,
county, authority or municipality with regard to the connection of any
system or systems with any other system or systems now in operation or
hereafter to be established, and with regard to any other matter necessary
and proper for the construction or operation and maintenance of any such
system within the sanitary district.

(h) To contract for the extension of any such system into territory
outside of the district, and for the use thereof, upon such terms and
conditions as the board may from time to time determine upon.

(i) With respect to the maintenance and operation of said motor
vehicle parking lots system, the board is authorized to purchase, install,
maintain and operate, and to fix and charge parking meter fees for the
use of, such parking lot or lots.

§ 4. * The board of supervisors in any such county in which a
sanitary district of whatsoever kind has been or may hereafter be created
pursuant to any of the provisions of this act, as amended, or pursuant to
any other general or special law, shall have power to issue the bonds of
any such sanitary district, in the manner hereinafter prescribed, to pro-
vide funds for the purpose of acquiring, constructing, improving, better-
ing or extending any system or systems, project or projects, or facility or
facilities authorized by this act to an amount in the aggregate of not
exceeding eighteen per centum of the assessed value of all real estate in
such sanitary district, subject to local taxation, provided, however, that
such limitation of eighteen per centum shall not apply if the petition
required by § 5 of this act states the maximum amount of bonds to be
issued and that such bonds are to be issued for a specified undertaking
from which the sanitary district may derive revenue, but from and after
a period to be determined by the board of supervisors, not exceeding five
years from the date of the election authorized in § 6 of this act, whenever
and for so long as such undertaking fails to produce sufficient revenue to
pay for cost of operation and administration (including interest on bonds
issued therefor) and the cost of insurance against loss by injury to per-
sons or property, and an annual amount to be covered into a sinking fund
sufficient to pay, at or before maturity, all bonds issued on account of
such undertaking, all such bonds outstanding shall be included in deter-
mining such limitation.

§ 10. The board of supervisors shall determine what amount of
bonds so authorized shall be issued * from time to time, but the maximum
amount of bonds issued shall in no case exceed the maximum amount pre-
scribed in § 4 of this act as amended, and in the event * the board of
supervisors for any reason fails or refuses to issue the bonds so authorized,
* the circuit court of the county may, upon the complaint of ten qualified
voters of * the district and after ten days’ notice to the chairman of the
board of supervisors, for cause shown, issue an order directing * such
board to issue the said bonds or any unissued residue thereof, or such por-
tion thereof as the court may, from time to time, deem proper to be issued
in order to carry out the wishes of the voters expressed in said election. *
The bonds of each issue shall be dated, shall bear interest at such rate or
rates not exceeding six per centum per annum, shall mature at such time or
times not exceeding thirty-four years from their date or dates, as may be
determined by the board of supervisors, and may be made redeemable be-
fore maturity at the option of the board of supervisors at such price or
prices and under such terms and conditions as may be fixed by the board of
supervisors and stipulated upon the face of the bonds when issued. The
board of supervisors shall determine the form and manner of execution
of the bonds, including any interest coupons to be attached thereto, and
shall fix the denomination or denominations of the bonds and the place
or places of payment of principal and interest within or without the State
of Virginia. Any such bonds shall be signed by the chairman and counter-
signed by the clerk of the board of supervisors under its seal, provided,
however, that the board of supervisors in the resolution authorizing such
bonds may provide that any coupons appurtenant to such bonds may be
authenticated by the facsimile signatures of either one or both of such
officers and may also provide that the bonds be executed with the facsimile
signature of either one of such officers and the manual signature of the
other one of such officers, and may also provide that a facsimile of such
seal be rmprinted on the bonds. In case any officer whose signature or a
facsimile of whose signature shall appear on any bonds or coupons shall
cease to be such officer before the delivery of such bonds, such signature
or such facsimile shall nevertheless be valid and sufficient for all pur-
poses, the same as if he had remained in office until such delivery, and
any bond may bear the facsimile signature of, or may be signed by, such
persons as at the actual time of the execution of such bond shall be the
proper officers to sign such bond, although at the date of such bond such
persons may not have been such officers. Such bonds may be issued in
coupon or in registered form or both, as the board of supervisors may
determine, and provision may be made for the registration of any coupon
bonds as to principal alone and also as to both principal and interest, for
the reconversion into coupon bonds of any bonds registered as to both
principal and interest and for the interchange of coupon and registered
bonds. The board of supervisors may sell any such bonds in such a manner,
either at public or private sale, and for such price as it may determine to
be for the best interests of the district, but no such sale shall be made at
a price so low as to require the payment of interest on the money received
therefor at more than siz per centum per annum, computed with relation
to the absolute maturity of the bonds in accordance with standard tables
of bond values, excluding, however, from such computation the amount of
any premium to be paid on the redemption of any bonds prior to maturity.
The board of supervisors shall deliver the bonds to the treasurer of the
county, who shall deliver them to the purchaser thereof, upon payment
of the purchase price therefor. All proceeds received from the sale of the
bonds shall be promptly deposited by the treasurer to the credit of the
district, and the treasurer shall account for all such proceeds through a
fund, separate from all other funds, in the system of accounting of the
county. Any funds not necessary for the purpose or purposes for which
the bonds were issued shall be paid into the sinking fund to redeem the
principal thereof at maturity. The treasurer and his sureties shall be
liable for the amount received for said bonds as though it were a county
levy and shall receive the reasonable cost to him of giving surety on such
additional bond or bonds as may be required of him, if any, on account
of his receipt of the proceeds of any of such bonds. The proceeds of the
bonds shall be deposited, paid out and dispensed as provided in Article 2 of
Chapter 20 of Title 58 of the Code of Virginia. All interest that shall
accrue from such funds shall be accounted for by the treasurer and be
expended for the purpose or purposes for which the bonds were issued, and
an so far as not necessary therefor, shall be used for the payment of the
interest on the bonds, or shall be paid into the sinking fund to redeem
the principal thereof at maturity.

2. All proceedings heretofore taken in the creation of sanitary districts
of whatsoever kind pursuant to any of the provisions of Chapter 161 of
the Acts of Assembly of 1926 as amended are hereby validated, ratified,
approved and confirmed, and all such districts so created or attempted to
be created are hereby declared to have been vahdly created and estab-
lished, notwithstanding any defects or irregularities in the creation
thereof. All proceedings heretofore taken and all elections heretofore held
in all such sanitary districts of whatsoever kind pursuant to said Chapter
161 to provide for, and with respect to the contracting of bonded indebted-
ness and the authorization, issuance, sale, execution and delivery of bonds
by or on behalf of all such sanitary districts, are hereby validated, rati-
fied, approved and confirmed, notwithstanding any lack of power of the
board of supervisors of the county in which any such district is located
to authorize and issue such bonds, or to authorize the execution, sale or
delivery thereof, and notwithstanding any defects or irregularities in any
such proceedings or elections, or in such execution, sale or delivery; all
such bonds so issued or to be issued are and shall be binding, legal, valid
and enforceable obligations of any such sanitary districts.

3. It is the intention of the General Assembly that this act shall be
liberally construed to effectuate the purposes set out herein, and if any
clause, sentence, paragraph or section of this act shall ever be declared
unconstitutional, it shall be deemed severable, and the remainder of this
act shall continue in full force and effect.

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