CHAPTER 224

An Act to amend the Code of Virginia by adding in Title 15.1 thereof
chapters numbered 84 and 85 containing, respectively, sections num-
bered 15.1-1400 through 15.1-1452, 15.1-1500 through 15.1-1505, to
provide for the establishment of Planning District Commissions and
prescribe their powers and duties, including preparation and periodic
review of District comprehensive plans; to provide for State financial
aid to such Commissions; to provide for merger, under certain condt-
tions, of Regional Planning Commissions; to provide methods for the
creation of Service Districts, including referenda on the creation there-
of, and for election of certain members of Service District Commts-
sions, and the merger of Planning District Commissions with Service
District Commissions; to authorize Service Districts to make assess-
ments on governmental subdivisions, to charge and collect fees, rents
and charges for services, and to issue bonds for certain purposes;
to create an Urban Assistance Incentive Fund and for making of
grants therefrom to assist in local and area-wide approaches to com-
mon problems.

[H 646]

Approved March 13, 1968

Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia be amended by adding in Title 15.1 thereof

chapters numbered 34 and 35, containing, respectively, sections numbered
15.1-1400 through 15.1-1452 and 15.1-1500 through 15. 1-1605, as follows:

CHAP. 34
VIRGINIA AREA DEVELOPMENT ACT

ARTICLE 1 ~
General Provisions

§ 15.1-1400. This chapter shall be known and may be cited as the
“Virginia Area Development Act.”
§ 15.1-1401. This chapter is enacted:

(a) To improve public health, safety, convenience and welfare, and
to provide for the social, economic and physical development of communities
and metropolitan areas of the State on a sound and orderly basis, within
a governmental framework and economic environment which will foster
constructive growth and efficient administration.

(b) To provide a means of coherent articulation for community
needs, problems, and potential for service in relation to State government.

(c) To foster planning for such development by encouraging the
creation of effective regional planning agencies and providing the financial
and professional assistance of the State.

To make provision for the creation of a unit of government
capable of efficiently performing governmental functions and services on
a regional basis, the cost of which can be borne equitably by those receiving
the benefits thereof.

(e) To deter the fragmentation of governmental units and services.

§ 15.1-1402. For the purposes of this chapter:

(a) “Planning District” shall mean a contiguous area within the
boundaries established by the Division of State Planning and Community

airs.

(b) “Service District” shall mean a unit of government created as
provided in this chapter.

(c) “Governmental subdivision” shall mean the counties, cities and
towns of this State.

(d) “Political subdivisions” shall include the governmental sub-
divisions, sanitary, sanitation and transportation districts, authorities and
other such public bodies created under the laws of this State.

(e) “Governing body” shall include the board of supervisors of a
county, the council of a city or town, the board of commissioners or other
board ¢ or body in which the powers of a political subdivision are vested

y

(f) “Population”, unless a different census is clearly set forth, shall
mean the number of inhabitants according to the United States Census
latest preceding the time at which any provision dependent upon population
is being applied, or the time as of which it is being construed, unless there
is available an annual estimate of population prepared by the Bureau
of Population and Economic Research, University of Virginia, which has
been filed with the Division of State Planning and Community Affairs,
in which event the estimate shall govern.

ARTICLE 2
Planning Districts

§ 15.1-1403. (a) At any time after the establishment of the geo-
graphic boundaries of a Planning District, pursuant to § 2.1-63.5 of the
Code, the governmental subdivisions embracing the majority of the popula-
tion within the District acting by the governing body may organize a
Planning District Commission by written agreement among them. Any
governmental subdivision not a party to such charter agreement shall
continue as a part of the Planning District, but until such time as such
governmental subdivision elects to become a part of the Planning District
Commission as hereinafter provided, shall not be represented in the com-
position of the membership of the Planning District Commission.

( The charter agreement shall set forth:

(1) The name of the Planning District.

(2) The governmental subdivision in which its principal office shall

be situated.

(3) The effective date of the organization of the Planning District.
Commission.

(4) The composition of the membership of the Planning District
Commission, provided, however, that at least a majority, but
not substantially more than a majority, of its members shall be
elected officials of the governing bodies of the governmental
subdivisions within the District with each county, city and town
of more than 3,500 population having at least one representative,
and the other members being qualified voters and residents of the
District, who hold no office elected by the people.

(5) The term of office of the members, their method of selection or
removal, and the method for the selection and the term of office
of a Chairman.

(6) The voting rights of members, and such voting rights need not
be equal and may be weighed on the basis of the population of
the governmental subdivision represented by the member, the
aggregation of the voting rights of members representing one
governmental subdivision, or otherwise.

(7) The procedure for amendment, for addition of other governmental
subdivisions within the Planning District which are not parties
to the original charter agreement, and the withdrawal from the
charter agreement by governmental subdivisions within the
Planning District electing to do so.

§ 15.1-1404. (a) Upon organization of a Planning District Com-
mission, pursuant to charter agreement, it shall be a public body corporate
and politic, the purposes of which shall be to perform the planning and
other functions provided by this chapter, and it shall have the power to
perform such functions and all other powers incidental thereto.

(b) Without in any manner limiting or restricting the general
powers conferred by this chapter, the Planning District Commission shall
have power:

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

(2) To sue and be sued.

(8) To adopt bylaws and make rules and regulations for the conduct
of its business.

(4) To make and enter into all contracts or agreements, as it may
(5) To make application for and to accept loans and grants of money
or materials or property at any time from any private or chari-
table source or the United States of America or the Commonwealth
of Virginia, or any agency or instrumentality thereof.

(6) To exercise any power usually possessed by private corporations,
including the right to expend such funds as may be considered
by it to be advisable or necessary in the performance of its duties
and functions.

(7) To employ engineers, attorneys, planners, such other professional
experts and consultants and such general and clerical employees
as may be deemed necessary, and to prescribe their powers and
duties and fix their compensation.

(8) To do and perform any acts and things authorized by this chapter
through or by means of its own officers, agents and employees, or
by contracts with any persons, firms or corporations.

(9) To execute any and all instruments and do and perform any and
all acts or things necessary, convenient or desirable for its pur-
poses or to carry out the powers expressly given in this chapter.

§ 15.1-1405. It shall be the purpose of the Planning District Com-
Inission to promote the orderly and efficient development of the physical,
social and economic elements of the District by planning, and encouraging
and assisting governmental subdivisions to plan for the future. It shall not
be the duty of the Commission to perform the functions necessary to imple-
ment the plans and policies established by it or to furnish governmental]
services to the District. No action of a Planning District Commission shall
affect the powers and duties provided to local planning commissions by law.

§ 15.1-1406. (a) Each Planning District Commission shall under-
take to prepare a comprehensive plan for the guidance of the development
of the District. Such plan shall concern those elements which are of im-
portance in more than one of the governmental subdivisions within the
District, as distinguished from matters of only local importance. The
comprehensive plan may concern such subjects and may be divided into
such parts or sections as the Planning District Commission may deem
desirable to promote the orderly and efficient development of the physical,
social and economic elements of the District. Individual parts or sections
of the plan may from time to time be adopted as they are ready.

(b) Before the comprehensive plan, or any part thereof, shall be
adopted, it shall be submitted to the Division of State Planning and Com-
munity Affairs and to the local planning commission (or, if there be none,
to the governing body) of each governmental subdivision within the
District for a period of not less than thirty days prior to a hearing to
be held by the Planning District Commission thereon, after notice as
provided in § 15.1-431. Each such local planning commission shall make
recommendations to the Planning District Commission with respect to the
effect of the plan, or part thereof, within its governmental subdivision on
or before the date of said hearing.

(c) Upon approval of the comprehensive plan, or part thereof, by a
Planning District Commission after such public hearing, it shall be sub-
mitted to the governing body of each governmental subdivision (excluding
towns of less than 3,500 population) within the District for adoption and,
upon adoption thereof by the governing bodies of a majority of such gov-
ernmental subdivisions, the comprehensive plan, or part thereof, shall
become effective with respect to all action of a Planning District Commis-
sion. The plan shall not become effective with respect to the action of the
governing body of any governmental subdivision within the District until
adopted by the governing body of such governmental subdivision.
§ 15.1-1407. When the comprehensive plan, or any completed part
thereof, shall become effective as the District plan, the Planning District
Commission shall not, except as provided in the plan, establish any policies
or take any action which, in its opinion, is not in conformity therewith.
When the comprehensive plan, or any completed part thereof, shall have
become effective in any governmental subdivision, such governmental sub-
division shall not proceed with the construction of any public improvement
or public institution or with the acquisition of any land for public purposes
or the disposition of any public lands, which construction, acquisition or
disposition is in conflict with the District plan.

§ 15.1-1408. The comprehensive plan, or any completed part thereof,
may be amended in the same manner as provided for the original approval
and adoption of the plan and parts thereof, provided, however, that if the
Planning District Commission determines that a proposed amendment has
less than District-wide significance, such amendment may be submitted only
to the local planning commissions and governing bodies of those govern-
mental subdivisions which the Planning District Commission shall deter-
mine to be affected.

§ 15.1-1409. At least once every five years, the comprehensive plan,
or completed parts of it, shall be reviewed by a Planning District Commis-
sion to determine whether it is advisable to amend the plan.

§ 15.1-1410. (a) In each Planning District in which a Planning
District Commission has been organized, the governing body of each gov-
ernmental subdivision shall submit to the Planning District Commission
for review any application to agencies of the State or federal government
for loans or grants in aid for special projects before such application is
made.

(b) The Planning District Commission shall advise the governmental
subdivision, within ten days from the date of the submission of the appli-
cation, as to whether or not the proposed project, for which funds are re-
quested, has District-wide significance. If it does not have District-wide
significance, the Planning District Commission shall certify that it is not
in conflict with the District plan or policies. If it does have District-wide
significance, the Planning District Commission shall determine, within
forty days from the date of the submission of the application, whether or
not it is in conflict with the District plan or policies. In making such deter-
mination, it may also consider whether the proposed project is properly
coordinated with other existing or proposed projects within the District.

§ 15.1-1411. A Planning District Commission may cooperate with
other Planning District Commissions, Councils of Governments, or the
legislative and administrative bodies and officials of other Districts or
governmental subdivisions within or without a District, so as to coor-
dinate the planning and development of a District with the plans of
other Districts and governmental subdivisions and the State. A Plan-
ning District Commission may appoint such committees and adopt such
rules as needed to effect such cooperation. A Planning District Com-
mission shall also cooperate with the Division of State Planning and
Community Affairs and use advice and information furnished by such
Division and by other State and federal officials, departments and
agencies. Such Division and such officials, departments and agencies having
information, maps and data pertinent to the planning and development
of a District may make the same, together with services and funds, available
for use of a Planning District Commission.

§ 15.1-1412. Upon the organization of a Planning District Commis-
sion, it shall be entitled to receive State financial support to assist it in
carrying out its purposes. Such State aid shall be in an amount not in
excess of $5,000.00 for each 25,000 persons residing in the governmental
subdivisions which are parties to the charter agreement, but, in any event,
not less than $10,000.00 for any such Planning District Commission. In
order to be allocated such State aid, each Planning District Commission
shall prepare and submit annually to the Governor, in such manner as he
shall direct, a budget showing its estimated receipts and expenditures dur-
ing the next fiscal year. After the review of such budget, the Governor
shall, subject to the availability of funds, allocate such amount as will, in
his judgment, be sufficient to enable the Planning District Commission
to carry out its functions. The fiscal year of the Planning District Com-
mission shall end June 80.

§ 15.1-1418. The governing bodies of the governmental subdivisions
within a Planning District are authorized to appropriate or lend funds to
the Planning District Commission.

§ 15.1-1414. (a) As promptly as practicable and no later than six
months after the organization of a Planning District Commission, any of
the governmental subdivisions of which participate in a Regional Planning
Commission organized pursuant to § 15.1-432, one of the following shall

ur:

(1) If the population of the governmental subdivisions within the
Planning District participating in the Regional] Planning Com-
mission exceeds two-thirds of the population of all of the govern-
mental subdivisions participating in the Regional Planning Com-
mission, those governmental subdivisions participating in the
Regional Planning Commission, but not within the Planning
District, shall withdraw and, thereupon, the Regional Planning
Commission shall merge into the Planning District Commission.

(2) If the population of the governmental subdivisions in the Planning
District participating in the Regional Planning Commission is
less than one-third of the population of all of the governmental
subdivisions participating in the Regional Planning Commission,
those governmental subdivisions participating in the Regional
Planning Commission and being within the Planning District
shall withdraw from the Regional Planning Commission.

(3) If the population of the governmental subdivisions in the Plan-
ning District participating in the Regional Planning Commission
is more than one-third but less than two-thirds of the population
of all of the governmental subdivisions participating in the
Regional Planning Commission, the Regional Planning Commis-
sion may merge into the Planning District Commission, with the
concurrence of a majority of both commissions. After such con-
currence but prior to such merger, the governmental subdivisions
not within the Planning District shall withdraw from the Regional
Planning Commission. If such merger is not consummated within
six months from the date of the organization of the Planning
District Commission, the governmental subdivisions within the
Planning District Commission shall withdraw from the Regional
Planning Commission.

(b) Upon the withdrawal of a governmental subdivision from a
Regional Planning Commission, pursuant to the provisions of this section,
all of its interest in the assets and responsibility for the liabilities of the
Regional Planning Commission shall cease and terminate as of the date
of such withdrawal.

(c) Upon the merger of a Regional Planning Commission into a
Planning District Commission, the Planning District Commission shall be
the surviving entity and be entitled to all of the assets and shall assume all
of the liabilities of the Regional Planning Commission, provided that the
agreement between the participating governmental subdivisions estab-
lishing the Regional Planning Commission shall not be effective after such
merger.
§ 15.1-1415. The Planning District Commission shall not be required
to pay any taxes or assessments upon any project or upon any property
acquired or used by it or upon the income therefrom. For purposes of
§ 58-441.6(p), a Planning District Commission shall be deemed a “political
subdivision of this State’ as the term is used in that section.

ARTICLE 3

Service Districts

§ 15.1-1420. At any time after the establishment of the geographic
boundaries of a Planning District and the promulgation of a plan for a
Service District prepared as hereinafter provided a Service District may
be created by the concurrence of a majority of those voting in the refer-
endum in each of the governmental subdivisions within the proposed
Service District.

§ 15.1-1421. Each Planning District Commission is authorized to
prepare and promulgate a plan for the creation of a Service District at any
time and, upon request of the governing bodies of two or more of the
governmental subdivisions which are parties to the Planning District
Commission, it shall promulgate such plan within one year from the date
of such request. No plan shall be promulgated that does not include two or
more governmental subdivisions embracing the majority of the population
within the Planning District and all the governmental subdivisions which
are parties to the Planning District Commission Charter.

§ 15.1-1422. (a) The Service District Plan shall set forth the
following:

(1) The charter of the Service District.

(2) The boundaries of the single member election districts.

(3) The services and functions to be initially performed by the

Service District and the manner of financing the cost thereof.

(4) The authority of the Service District to undertake additional
services and functions and the terms and conditions under which
such authority may be exercised.

(5) Terms of agreements to be entered into between the Service Dis-
trict and the political subdivisions, the rights, properties and
ate of which will be affected by the creation of the Service

istrict.

(6) Terms of agreements between the Service District and the gov-
ernmental subdivisions within the District with respect to com-
mitments of the Service District for the construction of facilities
and the performance of services subsequent to the creation of the
Service District.

(7) Such other compacts, conditions, reservations and restrictions
with respect to the Service District and the political subdivisions
within its boundaries as are pertinent to the creation of the
Service District.

(8) Terms of arrangements for the continuation of the performance
of the functions of any Planning District Commission.

(9) An informative summary of sub-sections (3) through (8) above,
sufficient to advise of the basic elements of the plan.

(10) The date of the plan and a schedule and procedure for the sub-
mission of the plan to the governing bodies of the governmental
subdivisions within the District for approval and to the qualified
voters of each such governmental subdivision for adoption.

(b) The plan shall assure that the services to be initially provided
by the Service District shall be of sufficient number and importance to pro-
duce a meaningful governmental unit and program and shall provide the
framework of government for the eventual performance by the Service
District of all of the functions and services which are appropriate for
performance on a District-wide basis.

§ 15.1-1423. The charter of the Service District shall set forth:

(1) The name of the Service District.

(2) The boundaries of the District.

(3) The governmental subdivision within the District in which its
seat of government shall be situated.

(4) The composition of the membership of the commission which
shall be the governing body of the Service District, pursuant to
§ 15.1-1427.

(5) Such restrictions upon or additions to powers provided by law to
Service Districts as are appropriate to the functions to be per-
formed by the Service District.

(6) Such other provisions as may be appropriate to the adoption of
a form of government of the Service District and the procedures
thereof, provided that the principles of a Council-Manager form
of government shall be followed.

(7) The powers and duties of the Chairman of the Commission.

(8) The composition of the board of a planning division of the
Service District, provided that persons not holding an office
elected by the people shall constitute a substantial proportion
(but not necessarily a majority) of the membership of such board.

(9) The procedure for amendment; provided, no amendment shall pro-
vide the power to perform functions or services not provided in
the initial plan or charter without compliance with the require-
ments of § 15.1-1441.

(10) The term of such charter.

(11) The procedure for addition of other governmental subdivisions
within the Planning District and the withdrawal from the Service
District by governmental subdivisions.

§ 15.1-1424. (a) Promptly upon the promulgation of a Service Dis-
trict Plan, it shall be submitted to the Division of State Planning and Com-
munity Affairs. The Division shall conduct such studies and make such
reports and recommendations in regard thereto as are appropriate, after
which the governing body of each governmental subdivision in the Service
District shall either approve or disapprove the Plan.

§ 15.1-1425. (a) Upon approval of a Service District Plan, by each
governmental subdivision in the Service District, the governing body of
each governmental subdivision in the District shall cause a copy of the
charter and the informative summary of the plan to be published in a
newspaper or newspapers having general circulation in each govern-
mera subdivision in the District at least once a week for four successive
weeks.

(b) When such publication of the Service District Plan is completed,
of which a certificate to the judges of the circuit courts having jurisdiction
in the counties and towns and to a judge of a court of record having
appropriate jurisdiction in the cities, from the owner, editor or manager
of the newspaper publishing the same, shall be proof, the respective
judges of the circuit courts of the counties and a court of record having
appropriate jurisdiction shall, by order entered of record, require the
regular election officers of such counties, towns and cities, at the next
regular November election or on a date fixed in the order, which date
may be provided for in the Plan and shall be the same in each of the
governmental subdivisions within the District, to open the polls and
take the sense of the qualified voters of each governmental subdivision
on the question submitted as hereinafter provided.

(c) The regular election officers, on the date designated in the order
requiring the vote, shall open the polls at the various voting places in their
respective governmental subdivisions and conduct the election in such
manner as is provided by general law for other elections insofar as the
same is applicable. The ballots for each governmental subdivision shall be
prepared by the electoral boards thereof and distributed to the various
election precincts therein, as provided by law. The ballots used shall be
printed and shall contain the following:
“Shall the...............ccccccccssseecees Service District Plan dated

For
[] Against”
The squares to be printed on such ballots are to be not less than 14” nor
more than 14” in size and shall be marked as provided by general law for
other elections insofar as the same is applicable.

(d) The ballots shall be counted and the returns made and canvassed
as in other elections, the results certified by the Commissioners of Elections
to each of the judges of the circuit courts having jurisdiction in the
counties and towns and to each of the judges of the corporation courts
having jurisdiction in the cities within the District. The judge or judges
shall enter of record in such court in each county and city the number of
votes certified to be “for” and the number “against” the approval of the
Service District Plan and adoption of the charter. The clerk of each such
court shall file a certified copy thereof with the governing body of each
governmental subdivision in the Service District and the Division of State
Planning and Community Affairs.

(e) Upon receipt by the Director of the Division of State Planning
and Community Affairs of certification of the results of the election so held
from the clerks of all such courts within the proposed service district, the
Director shall canvass such certificates and shall promptly furnish to the
judges of such courts a certificate setting forth whether or not the majority
of the voters of each governmental subdivision within the district voted in
favor of the Service District Plan and adoption of the charter.

§ 15.1-1426. When amajority of the voters of each governmental sub-
division within the proposed Service District votes in favor of the Service
District Plan and adoption of the charter, of which fact the certificate of
the Director of the Division of State Planning and Community Affairs shal]
be proof, the respective judges of the circuit courts having jurisdiction in
the counties and towns, and the corporation courts having jurisdiction in
the cities shall, by order entered of record in such court in each county and
city, require that an election be held, as provided in § 15.1-1428, at which
election the elected members shall be elected.

§ 15.1-1427. (a) Atleast a majority of the members of the Service
District Commission shall be elected by the qualified voters from single
member election districts and shall be known as “elected members.”
Elected members shall be qualified voters of and reside within the single
member election district.

(b) The other members of the Service District Commission shall be
members of the governing bodies of the governmental subdivisions within
the District, who were elected by the qualified voters of the governmental
subdivisions and shall be known as “official members.” Each county, city
and town of more than 3,500 population shall have at least one official
member.

(c) Each member of the Service District Commission, whether an
elected member or an official member, shall be entitled to one vote.

(d) The governing body of each governmental subdivision within a
Service District entitled to an official member shall appoint its official
member or members of the Commission, to serve at the pleasure of such
governing body.
§ 15.1-1428. (a) Single member election districts shall be composed
of contiguous and compact territory lying wholly within either a city
or a county and containing, as nearly as practicable, an equal number
of inhabitants. If any part of a town is included with all or part of a
county in a single member election district, all of such town shall be
included. A town may be divided into two or more single member elec-
tion districts.

(b) The Service District shall reapportion its single member election
districts in the year 1982 and every ten years thereafter.

(c) The qualifications for elected members shall be the same as for
members of the Senate of Virginia. No person shall serve as an elected
member who holds any other office elected by the voters.

(d) The date and manner of nomination and election and the term
of elected members and the manner of filling vacancies shall be the same
as for members of the Senate of Virginia.

(e) If the effective date of the creation of a Service District does
not permit the nomination and election of the initial elected members to
coincide with the nomination and regular election of members of the
Senate, then the initia] elected members shall be elected in the November
general election of the year next preceding the effective date of the
creation of the Service District; and they shall serve until January 1
of the year next following the regular election of the members of the

enate.

§ 15.1-1429. The Chairman of the Commission shall be one of the
elected members and shall be elected by the other elected members. The
Chairman shall be entitled to the same voting rights as a member.

§ 15.1-1430. The effective date of the organization of a Service
District shall be the next January 1 which is more than six months from
the date of the referendum by which the creation of the Service District
Plan was approved and charter adopted. The fiscal year of the Service
District shall be the year ending June 30.

§ 15.1-1481. (a) Upon its creation, a Service District shall be a
public body politic and corporate and shall be deemed to be a public in-
strumentality, exercising public and essential governmental functions, and
shall have all of the powers conferred upon it by its charter and by
general law, provided that in any territory in which a public utility
holds a certificate of public convenience and necessity under Chapter
10.1 of Title 56 a Service District shall not be empowered to render the
public utility service authorized by said certificates without the consent
of the holder of the certificate, or the authorization of the State Cor-
poration Commission pursuant to said chapter.

(b) Without in any manner limiting or restricting the general
power conferred by its charter or by this chapter, a Service District
shall have power:

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

pleasure.

(2) to sue and be sued. Suits or actions against the Service Dis-
trict shall be brought only in the governmental subdivision in
which the seat of the government of such Service District is
situated.

(3) to contract and be contracted with.

(4) Within the limitations imposed upon cities by the Virginia Con-
stitution, to contract debts, borrow money and make and issue
bonds and other evidences of indebtedness.

(5) to expend the money of the District for all lawful purposes.

(6) to acquire by purchase, gift, devise, condemnation pursuant to
EE ee ee —— —_—— ee

(7) to make and enforce all ordinances, rules and regulations neces-
sary or expedient for the purpose of carrying into effect the
powers conferred upon the District, and to provide and impose
suitable penalties for the violation of such ordinances, rules and
regulations, or any of them, by fine, not exceeding $1,000.00, or
imprisonment in jail, not exceeding twelve months, either or
both. The District may maintain a suit to restrain by injunction
the violation of any ordinance, notwithstanding such ordinance
may provide punishment for its violation.

§ 15.1-1482. (a) Upon the creation of a Service District, any
Planning District Commission organized for the District shall be merged
into the Service District and the Planning District Commission shall
terminate.

(ob) The Service District shall have a planning division, which shall
assume functions relating to planning of a Planning District Commission
subject to the approval of the Service District Commission. A Service
District Plan shall make provision for the orderly transition from Plan-
ning District Commission in such manner as not to be interruptive of
the personnel, work in progress, or duties and responsibilities of the
planning functions. Any comprehensive plan or completed part thereof
effective in the Planning District shall continue to be effective in the
Service District.

(c) The Service District shall continue all of the functions of the
Planning District Commission provided in §§ 15.1-1406 through 15.1-
1411, and, for the purpose of this section, all references therein to a
Planning District Commission shall be taken to mean the Service District.
The Service District shall, by operation of law, own and be entitled to
possession of all of the assets of the superseded Planning District Com-
mission and shall assume all of the liabilities thereof and agree to perform
all of its obligations.

§ 15.1-1433. Upon the creation of a Service District, it shall be en-
titled to receive State financial support to assist it in carrying out its
planning functions to the same extent and in the same manner as the
Planning District Commission, pursuant to § 15.1-1412; provided such
State financial support shall be based upon the population in the govern-
mental subdivisions which are parties to the Service District charter.

§ 15.1-1434. Copies of the charter of the Service District and all
ordinances of such Service District shall be filed in the business office
of the Service District Commission in the governmental subdivision in
which the seat of government for such Service District is situated.

§ 15.1-1435. Ordinances shall be adopted by the Service District
Commission only in the manner prescribed herein.

The object of each such ordinance shall be expressed in its title.

No such ordinance shall be passed until after descriptive notice of
an intention to propose the same for passage shall have been published
once a week for two successive weeks prior to its passage in some news-
paper published in the Service District, and if there be none such, in
some newspaper published in an adjoining county or a nearby city and
having a general circulation in the Service District, and no such ordinance
shall become effective until after it shall have been published in full, or
by its title, and an informative summary of such ordinance, once a
week for two successive weeks in a like newspaper. If such publication
is by title and informative summary the publication shall include a state-
ment that a copy of the full text of the ordinance is on file in the Service
District business office.

Except as hereinafter provided, emergency ordinances under author-
ity of this section may be adopted without notice of intention, but no
emergency ordinance shall be enforced for more than sixty days unless
readopted in conformity with the provisions of this section.

§ 15.1-14386. (a) <A Service District is authorized and empowered
to make an annual assessment, in the manner, and not to exceed the
amount, provided for in the service district plan, upon each governmental
subdivision within the District, for the purpose of financing its functions.
The amount of the assessment for each fiscal year shall be prorated among
the governmental subdivisions within the District on the basis of the ratio
of the true value of taxable real estate within each governmental subdi-
vision, as of the preceding January 1, to the total value of all taxable
real estate within the District on such date. The amount of the assess-
ment for each fiscal year shall be determined and apportioned on or before
the preceding March 1.

b) In the event that the governing body of any governmental sub-
division within the District shall determine to obtain all or part of funds
for the payment of such assessment by making a separately stated levy
of a tax on real estate, such governmental subdivision shall have the power
to levy a higher tax in such areas thereof as obtain additional or more
complete services from the Service District than the governmental sub-
division as a whole obtains.

§ 15.1-1437. (a) A Service District is authorized to charge and
collect fees, rents or other charges for services provided by it. Such fees,
rents and charges may be charged to and collected from any person con-
tracting for the service, or from the owner or tenant, or some or all of
them, who uses or occupies any real estate which directly or indirectly
is or has been provided such services, and the owner or tenant of any such
real estate shall pay such fees, rents and charges to the Service District
at the time when and the place where such fees, rents and charges are
due and payable.

b) Such fees, rents and charges shall, as nearly as the Service
District shall deem practicable and equitable, be uniform throughout the
District for the same type, class and amount of service.

(c) The Service District shall prescribe and, from time to time
when necessary, revise the schedule of fees, rents and charges which shall
comply with the terms of any contract of the District with holders of
bonds of the District issued pursuant to this chapter. A copy of the
schedules of all fees, rents and charges in effect shall at all times be kept
on file at the seat of government of the District, and such schedules shall
at all reasonable times be open to public inspection.

(d) The charter of the Service District shall make provision for
the enforcement of the collection of rents, fees and charges for services
and may provide that such unpaid fees, rents and charges for such serv-
ices aS sewer disposal systems and water supply systems may be liens
upon the real estate served by such facilities.

(e) The Service District is authorized and empowered 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.

§ 15.1-1438. (a) (1) The Service District is hereby authorized
to issue bonds from time to time in its discretion for the purpose of pay-
ing all or any part of the cost of acquiring, purchasing, constructing,
reconstructing, improving or extending any project and acquiring neces-
sary land and equipment therefor. The Service District may issue such
types of bonds as it may determine, including (without limiting the
generality of the foregoing) bonds payable as to principal and interest:
(a) from its revenues generally; (b) exclusively from the income and
revenues of a particular project; or (c) exclusively from the income and
revenues of certain designated projects, whether or not they are financed
in whole or in part from the proceeds of such bonds.

(2) Any such bonds may be additionally secured by a pledge of any
assessment made against governmental subdivisions within the Service
District or any grant or contribution from the Commonwealth or any
governmental subdivision, agency or instrumentality thereof, any federal
agency or any unit, private corporation, copartnership, association, or
individual, or a pledge of any income or revenue of the Service District,
or a mortgage of any project or other property of the Service District.

(3) Neither the members of the Service District Commission nor
any person executing the bonds shall be liable personally on the bonds
by reason of the issuance thereof. The bonds and other obligations of
the Service District (and such bonds and obligations shall so state on
their face) shall not be a debt of the Commonwealth or any political sub-
division thereof and neither the Commonwealth nor any political sub-
division thereof other than the Service District shall be liable thereon,
nor shall such bonds or obligations be payable out of any funds or prop-
erties other than those of the Service District. Bonds of the Service District
are declared to be issued for an essential public and governmental purpose.

(b) (1) Bonds of the Service District shall be authorized by reso-
lution and may be issued in one or more series, shall be dated, shall
mature at such time or times not exceeding forty years from
their date or dates and shall bear interest at such rate or rates not exceed-
ing six per centum (6%) per annum, as may be determined by the Service
District, and may be made redeemable before maturity, at the option of
the Service District at such price or prices and under such terms and
conditions as may be fixed by the Service District prior to the issuance of
the bonds. The Service District shall determine the form of the bonds,
including any interest coupons to be attached thereto, and the manner of
execution of the bonds, and shall fix the denomination or denominations
of the bonds and the place or places of payment of principal and interest,
which may be at any bank or trust company within or without the Com-
monwealth. 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 delivery of such bond, such signature or such facsimile shall
nevertheless be valid and sufficient for all purposes the same as if he had
remained in office until such delivery. Notwithstanding any of the other
provisions of this act or any recitals in any bonds issued under the pro-
visions of this act, all such bonds shall be deemed to be negotiable instru-
ments under the laws of the Commonwealth. The bonds may be issued
in coupon or registered form or both, as the Service District may deter-
mine, and provision may be made for the registration of any coupon bonds
as to principal alone and also as to both principal and interest, and for
the reconversion into coupon bonds of any bonds registered as to both
principal and interest. The Service District may sell such bonds in such
manner, either at public or private sale, and for such price, as it may
determine to be for the best interests of the Service 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 more than six per centum (6%), computed
with relation to the absolute maturity or maturities of the bonds in ac-
cordance with standard tables of bond values, excluding, however, from
such computation the amount of any premium to be paid on redemption of
any bonds prior to maturity.

(2) Prior to the preparation of definitive bonds the Service District
may, under like restrictions, issue interim receipts or temporary bonds,
with or without coupons, exchangeable for definitive bonds when such
bonds shall have been executed and are available for delivery. The Service
District may also provide for the replacement of any bonds which shall
become mutilated or shall be destroyed or lost.

(3) Bonds may be issued under the provisions of this act without
obtaining the consent of any commission, board, bureau or agency of the
Commonwealth or of any governmental subdivision, and without any
other proceedings or the happening of other conditions or things than
those proceedings, conditions or things which are specifically required by
this act. Nothing contained in this act shall be construed to authorize
a service district to issue bonds in excess of an amount which may be
stated in the Service District Plan.

(c) (1) In the discretion of the Service District any bonds issued
under the provisions of this act may be secured by a trust indenture by
way of conveyance, deed of trust or mortgage of any project or any other
property of the Service District, whether or not financed in whole or in
part from the proceeds of such bonds, or by a trust agreement by and
between the Service District and a corporate trustee, which may be any
trust company or bank having the powers of a trust company within or
without the Commonwealth or by both such conveyance, deed of trust or
mortgage and indenture or trust agreement. Such trust indenture or
agreement, or the resolution providing for the issuance of such bonds may
pledge or assign fees, rents and other charges to be received. Such trust
indenture or agreements, or resolution providing for the issuance of such
bonds, may contain such provisions for protecting and enforcing the
rights and remedies of the bondholders as may be reasonable and proper
and not in violation of law, including covenants setting forth the duties
of the Service District in relation to the acquisition of property and the
construction, improvement, maintenance, repair, operation and issuance
of any project or other property of the Service District, and the rates of
fees, rents and other charges to be charged, and the custody, saferuard-
ing and application of all moneys of the Service District, and conditions
or limitations with respect to the issuance of additional bonds. It shall
be lawful for any bank or trust company incorporated under the laws
of the Commonwealth which may act as depository of the proceeds of
such bonds or of other revenues of the Service District to furnish in-
demnifying bonds or to pledge such securities as may be required by the
Service District. Such trust indenture may set forth the rights and
remedies of the bondholders and of the trustee, and may restrict the in-
dividual right of action by bondholders.

(2) In addition to the foregoing, such trust indenture or agreement
or resolution may contain such other provisions as the Service District
may deem reasonable and proper for the security for the bondholders.
All expenses incurred in carrying out the provisions of such trust inden-
ture or agreement or resolution may be treated as a part of the cost of a
project.

(d) The Service District is hereby authorized to fix, revise, charge
and collect fees, rents and other charges for the use of any project and
the facilities thereof. Such fees, rents and other charges shall be so fixed
and adjusted as to provide a fund sufficient with other revenues to pay:
first, the cost of maintaining, repairing and operating the project, and
second, the principal of and interest on such bonds as the same shall be-
come due and payable, and third, to create reserves for such purposes
and for other purposes of the Service District. Such fees, rents and
charges shall not be subject to supervision or regulation by any commis-
sion, board, bureau or agency of the Commonwealth or any such govern-
mental subdivision. The fees, rents and other charges received by the
Service District, except such part thereof as may be necessary to pay the
cost of maintenance, repair and operation and to provide such reserves
therefor as may be provided for in the resolution authorizing the issuance
of such bonds or in the trust indenture or agreement securing the same,
shall be set aside at such regular intervals as may be provided in such
resolution or trust indenture or agreement in a sinking fund which is
hereby pledged to, and charged with, the payment of and the interest on
such bonds as the same shall become due, and the redemption price or
the purchase price of such bonds retired by call or purchase as therein
provided. Such pledge shall be valid and binding from the time when the
pledge is made. The fees, rents and charges so pledged and thereafter
received by the Service District shall immediately be subject to the lien
of such pledge without any physical delivery thereof or further act, and
the lien of any such pledge shall be valid and binding as against all par-
ties having claims of any kind in tort, contract or otherwise against the
Service District, irrespective of whether such parties have notice thereof.
Neither the resolution nor any trust indenture by which a pledge is created
need be filed or recorded except in the records of the Service District.
The use and disposition of moneys to the credit of such sinking fund shall
be subject to the provisions of the resolution authorizing the issuance of
such bonds or of such trust indenture or agreement. Except as may other-
wise be provided in such resolution or trust indenture or agreement,
such sinking fund shall be a fund for all such bonds without distinction
or priority of one over another.

(e) Any holder of bonds, notes, certificates or other evidence of
borrowing issued under the provisions of this act or of any of the coupons
appertaining thereto, and the trustee under any trust indenture or agree-
ment, except to the extent of the rights herein given may be restricted
by such trust indenture or agreement, may, either at law or in equity, by
suit, action, injunction, mandamus or other proceedings, protect and en-
force any and all rights under the laws of the Commonwealth or granted
by this act or under such trust indenture or agreement or the resolution
authorizing the issuance of such bonds, notes or certificates, and may
enforce and compel the performance of all duties required by this act
or by such trust indenture or agreement or resolution to be performed by
the Service District or by any officer or agent thereof, including the fix-
ing, charging and collection of fees, rents and other charges.

(f) The exercise of the powers granted by this act shall be in all
respects for the benefit of the inhabitants of the Commonwealth, for the
promotion of their safety, health, welfare, convenience and prosperity,
and as the operation and maintenance of any project which the Service
District is authorized to undertake will constitute the performance of an
essential governmental function, no Service District shall be required to
pay any taxes or assessments upon any project acquired and constructed
by it under the provisions of this chapter; and the bonds, notes, certificates
or other evidences of debt issued under the provisions of this act, their
transfer and the income therefrom including any profit made on the sale
thereof, shall at all times be free and exempt from taxation by the
Commonwealth and by any governmental subdivision thereof.

(zg) Bonds issued by the Service District under the provisions of
this act are hereby made securities in which all public officers and public
bodies of the Commonwealth and its governmental subdivisions, al] insur-
ance companies, trust companies, banking associations, investment com-
panies, executors, administrators, trustees and other fiduciaries may
properly and legally invest funds, including capital in their control or
belonging to them. Such bonds are hereby made securities which may
properly and legally be deposited with and received by any State or
municipal officer or any agency or governmental subdivision of the Com-
monwealth for any purpose for which the deposit of bonds or obligations
is now or may hereafter be authorized by law.

§ 15.1-1439. No city or town within a Service District shall have
the power to annex any portion of any county within a Service District
without the concurrence of each governmental subdivision, the boundaries
of which would be affected thereby, by resolution or ordinance of its govern-
ing body and by the Service District Commission or commissions; pro-
vided, however, nothing herein shall be construed to limit or restrict
annexation upon petition by voters pursuant to the provisions of § 15.1-1034
of the Code

§ 15.1-1440. The exercise of the powers granted by this chapter shall
be in all respects for the benefit of the inhabitants of the Commonwealth,
for the promotion of their safety, health, welfare, convenience and pros-
perity, and as the operation and maintenance of any project which the
service District is authorized to undertake, will constitute the performance
of an essential governmental function, no Service District shall be required
to pay any taxes or assessments upon any project or property acquired,
constructed or used by it or upon the income therefrom under the pro-
vision of this chapter. For purposes of § 58-441.6(p), a Service District
shall be deemed a “political subdivision of this State” as the term is used
in that section.

§ 15.1-1441. (a) Upon the concurrence of a majority of the quali-
fied voters of each of the governmental subdivisions within the Service
District, a Service District Plan may be amended so as to authorize the
performance of functions and provision of services by the Service District
in addition to those provided for in its plan.

(b) The proposed amendment shall be prepared and promulgated by
the Service District.

(c) The amendment shall set forth the same information as required
by § 15.1-1422 (a) (4) through (7) and (9) and (10).

(d) Upon promulgation of an amendment to a Service District Plan,
it shall be submitted to the governing body of each governmental subdivi-
sion within the District for consideration and approval or disapproval
within the time limits provided by the plan, in accordance with the provi-
sions of § 15.1-1425. Each reference in the last-mentioned section to the
“plan” shall refer to the ‘‘amendment”. The ballot provided for in sub-
section (c) of the last mentioned section shall contain the following:

“Shall the amendment dated..............cccccssssssscesssssees to the
sessecceececcseccsececsecceseessess Service District Plan be approved?
(] For

[] Against”
Upon the certification by the Division of State Planning and Community
Affairs that a majority of the voters of each governmental subdivision
within the District voted in favor of the amendment, it shall thereupon be
in full force and effect.

ARTICLE 5
Miscellaneous Provisions

§ 15.1-1450. This chapter, being necessary for the welfare of the
Commonwealth and its inhabitants, shall be liberally construed to effect
the purposes thereof.

§ 15.1-1451. The provisions of this chapter are severable and, if
any of its provisions shall be held to be unconstitutional by any court
of competent jurisdiction, the decisions of such court shall not affect or
impair any of the remaining provisions of this chapter. It is hereby
declared to be the legislative intent that this chapter would have been
adopted had such unconstitutional provisions not been included therein.
§ 15.1-1452. All other general or special laws inconsistent with any
provisions of this chapter are hereby declared to be inapplicable to the
provisions of this chapter.

CHAP. 35
Urban Assistance Incentive Fund Act

§ 15.1-1500. This chapter shall be known and may be cited as the
“Urban Assistance Incentive Fund Act.”

§ 15.1-1501. This chapter is enacted to provide a system for the
allocation of funds to governmental subdivisions in urban and urbanizing
areas of the Commonwealth to assist local and area-wide approaches to
common social problems with the concentrated and coordinated use of
local, State, federal and private resources.

§ 15.1-1502. (a) The governing bodies of governmental subdivi-
sions may individually or jointly apply to the Division of State Planning
and Community Affairs for a grant of funds made available for the purpose
of this chapter.

(b) Upon receipt of an application for funds, the Division shall
conduct studies, determine compliance with the conditions for eligibility
hereinafter set forth, and make recommendations to the Governor.

(c) Upon receipt of recommendations from the Division, the Gover-
nor may allocate among the applicants funds made available to him for the
purpose of this chapter.

§ 15.1-1508. (a) The Division shall establish rules and regulations
for the administration of the funds, including forms of applications, eligi-
bility requirements, and terms and duration of grants.

Any program for which a grant is sought shall:

(1) Contain substantially innovative methods, approaches and con-
cepts for social, cultural, economic and educational problems,
including, but not limited to, provision of social services, neigh-
borhood redevelopment, increased housing, employment and rec-
reational opportunities, and alleviation of unhealthy and danger-
ous social conditions.

(2) Utilize private initiative and enterprise insofar as feasible.

(8) Emphasize coordination of available governmental and private
financial and technical resources.

(4) Contain a plan for its execution.

(c) Among those programs which satisfy the specific eligibility
criteria, the highest priority shall be accorded programs which maximize
inter-governmental cooperation and coordination for the solutions of
common problems.

(d) The Division shall from time to time require reports from
recipient governmental subdivisions concerning progress of programs
and the use of funds, in such way as it may by rule determine.

§ 15.1-1504. (a) The Governor shall appoint the members of an
advisory committee to perform the functions hereinafter set forth.

The committee shall consist of fifteen members and the regular
term of office of each member shall be three years, provided that the terms
shall be staggered so that the regular term of five of the members begins
on the first of February of each year.

(c) The members shall be qualified by training and experience or
individual involvement in urban affairs.

(d) The members shall elect from their number a Chairman in
such manner and for such term as they may determine.

(e) Members shall serve without compensation, but may be reim-
bursed for reasonable expenses incurred in the performance of their duties.

(f) The advisory committee shall assist the Division in the following
manner:
(1) Develop standards for the allocation of funds to achieve the
objectives of this chapter, and
(2) Review annually the criteria for allocation and selection and
recommend changes to the Division.
§ 15.1-1505. The following rules shall govern the allocation and
use of funds:
(a) <A grant may equal up to one hundred per centum of the cost
of a program.
(b) A grant may be used to pay all or part of the local share of any
matching State or federal grants.
(c) <A grant shall not replace existing available financial resources.