Bill Summary – FastDemocracy

WEST VIRGINIA LEGISLATURE
REGULAR SESSION
                  Enrolled Committee Substitute for Senate Bill 631
          By Senators Barrett and Martin [Passed March 9, 2024; in effect 90 days from passage]
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  AN ACT to amend and reenact §16-13-16 of the Code of West Virginia, 1931, as amended; to
         amend said code by adding thereto a new section, designated §16-13-16a; to amend and
         reenact §16-13A-9 of said code; and to amend and reenact §24-3-10 of said code, all
         relating to prohibiting utilities from shutting off a user's water service for nonpayment of
         stormwater fees without notice and compliance with certain conditions; creating board to
         hear appeals for assessment of estimated usage units; authorizing municipal utilities to
         discontinue water service to user delinquent in stormwater services fees and charges only
         after complying with certain requirements but imposing lien on premises served; allowing
         public service districts to discontinue water service to user delinquent in stormwater
        service fees and charges only after complying with certain requirements but imposing lien
        on premises served; and authorizing privately or publicly owned utilities from discontinuing
        water service, or contracting with other utilities to discontinue water service, for
        delinquency in stormwater services fees and charges only after complying with certain
        requirements but imposing lien on premises served.
     Be it enacted by the Legislature of West Virginia:
                                CHAPTER 16. PUBLIC HEALTH.
     ARTICLE 13. SEWAGE WORKS AND STORMWATER WORKS.
     §16-13-16. Rates for service; deposit required for new customers; forfeiture of deposit;
            reconnecting deposit; tenant's deposit; change or readjustment; hearing; appeals board.
         (a) A governing body has the power and duty, by ordinance, to establish and maintain just
  and equitable rates, fees, or charges for the use of and the service rendered by:
          (1) Sewerage works, to be paid by the owner of each lot, parcel of real estate or building
  that is connected with and uses the works by or through any part of the sewerage system of the
  municipality or that in any way uses or is served by the works; and
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          (2) Stormwater works, to be paid by the owner of each lot, parcel of real estate or building
  that in any way uses or is served by the stormwater works or whose property is improved or
  protected by the stormwater works or any user of such stormwater works.
         (b) The governing body may change and readjust the rates, fees, or charges from time to
 time. However, no rates, fees, or charges for stormwater services may be assessed against
 highways, road and drainage easements or stormwater facilities constructed, owned, or operated
 by the West Virginia Division of Highways.
        (c) All new applicants for service shall indicate to the governing body whether they are an
 owner or tenant with respect to the service location. An entity providing stormwater service shall
 provide a new applicant for service a report of the stormwater fee charged for the entire property
 and, if the new applicant is a tenant, that portion of the fee to be assessed to the tenant. Any
 municipality that provides stormwater utilities shall form a municipal stormwater appeals board.
 The board shall consist of a member of the stormwater utility board, a municipal council member,
 and a rate payer. New applicants for service may appeal the estimated residential usage or
 equivalent dwelling usage to the board. Any such appeal must be brought within 60 days of
 receiving the report of the stormwater fee.
         (d) The governing body may collect from all new applicants for service a deposit of $50 or
 two twelfths of the average annual usage of the applicant's specific customer class, whichever is
 greater, to secure the payment of service rates, fees, and charges in the event he or she becomes
 delinquent as provided in this section. In any case where a deposit is forfeited to pay service rates,
 fees, and charges which were delinquent at the time of disconnection or termination of service,
 service may not be reconnected or reinstated by the governing body until another deposit equal to
 $50 or a sum equal to two twelfths of the average usage for the applicant's specific customer class,
 whichever is greater, is remitted to the governing body. After 12 months of prompt payment history,
 the governing body shall return the deposit to the customer or credit the customer’s account with
 interest at a rate as the Public Service Commission may prescribe: Provided, That where the
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 customer is a tenant, the governing body is not required to return the deposit until the time the
 tenant discontinues service with the governing body.
        (e) The rates, fees, or charges shall be sufficient in each year for the payment of the proper
 and reasonable expense of operation, repair, replacements and maintenance of the works and for
 the payment of the sums herein required to be paid into the sinking fund. Revenues collected
 pursuant to this section shall be considered the revenues of the works.
        (f) No such rates, fees, or charges may be established until after a public hearing, at which
 all the users of the works and owners of property served or to be served thereby and others
 interested shall have an opportunity to be heard concerning the proposed rates, fees, or charges.
        (g) After introduction of the ordinance fixing the rates, fees, or charges, and before the
 same is finally enacted, notice of the hearing, setting forth the proposed schedule of rates, fees, or
 charges, shall be given by publication as a Class I legal advertisement in compliance with §59-3-1
 et seq. of this code and the publication area for the publication shall be the municipality. The first
 publication shall be made at least five days before the date fixed in the notice for the hearing.
        (h) After the hearing, which may be adjourned, from time to time, the ordinance
 establishing rates, fees, or charges, either as originally introduced or as modified and amended,
 shall be passed and put into effect. A copy of the schedule of the rates, fees, and charges shall be
 kept on file in the office of the board having charge of the operation of the works, and also in the
 office of the clerk of the municipality, and shall be open to inspection by all parties interested. The
 rates, fees, or charges established for any class of users or property served shall be extended to
 cover any additional premises thereafter served which fall within the same class, without the
 necessity of any hearing or notice.
        (i) Any change or readjustment of the rates, fees, or charges may be made in the same
 manner as the rates, fees, or charges were originally established as hereinbefore provided:
 Provided, That if a change or readjustment be made substantially pro rata, as to all classes of
 service, no hearing or notice shall be required.
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         .
     §16-13-16a. Discontinuance of services; lien and recovery.
         (a) Whenever any rates, fees, rentals, or charges for services or facilities furnished remain
 unpaid for a period of 20 days after they become due, the user of the services and facilities
 provided is delinquent. The user is liable until all rates, fees, and charges are fully paid. When any
 payment for rates, rentals, fees or charges becomes delinquent, the governing body may use the
 security deposit collected in accordance with §16-13-16 of this code to satisfy the delinquent
 payment.
         (b) The governing body may, under reasonable rules promulgated by the Public Service
 Commission, shut off and discontinue water services to a delinquent user of sewer facilities 10
 days after the sewer services become delinquent regardless of whether the governing body
 utilizes the security deposit to satisfy any delinquent payments: Provided, That nothing contained
 within the rules of the Public Service Commission may require agents or employees of the
 governing body to accept payment at the customer's premises in lieu of discontinuing service for a
 delinquent bill.
         (c) The board collecting the rates, fees, or charges shall be obligated under reasonable
 rules to shut off and discontinue both water and sewer services to all delinquent users of water or
 sewer facilities and shall not restore either water facilities or sewer facilities to any delinquent user
 of any such facilities until all delinquent rates, fees, or charges for water and sewer facilities,
 including reasonable interest and penalty charges, have been paid in full, as long as the actions
 are not contrary to any rules or orders of the Public Service Commission: Provided, That nothing
 contained within the rules of the Public Service Commission may be considered to require any
 agents or employees of the municipality or governing body to accept payment at the customer’s
 premises in lieu of discontinuing service for a delinquent bill.
         (d) The governing body or the board collecting the rates, fees, or charges may shut off and
 discontinue water services to users with delinquent stormwater fees, provided that:
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          (1) The water service and stormwater fee are in the name of the same user;
          (2) The rates, fees, or charges incurred by the user are at least 90 days past due;
          (3) The provider has given the user written notice of termination of water service for
  nonpayment. Such notice must be given to the user at least 10 days before the termination of
  service and must notify the user of their right to enter into a deferred payment plan;
          (4) The provider has attempted to make personal contact with the user at least two times in
  the 24 hours immediately before the termination of the service. If the provider makes personal
  contact with the user, the provider must inform the user of their right to enter into a deferred
  payment plan.
          (5) The water service for a user who has entered into a deferred payment plan under this
  subsection may not be shut off or discontinued as long as the user is in conformance with the
  agreed to payment plan. In the event the user falls out of compliance with the deferred payment
  plan, no sooner than five days after the missed payment, the provider may terminate service:
  Provided, That the provider must make one attempt to make personal contact with the user in the
  24 hours immediately before the termination of the service.
          (e) All rates, fees, or charges, if not paid when due, shall constitute a lien upon the
  premises served by the works. If any service rate, fee, or charge is not paid within 20 days after it is
 due, the amount thereof, together with a penalty of 10 percent and a reasonable attorney's fee,
 may be recovered by the board in a civil action in the name of the municipality. The lien may be
 foreclosed against the lot, parcel of land or building in accordance with the laws relating thereto.
 Where both water and sewer services are furnished by any municipality to any premises, the
 schedule of charges may be billed as a single amount or individually itemized and billed for the
 aggregate thereof.
      ARTICLE 13A. PUBLIC SERVICE DISTRICTS.
      §16-13A-9. Rules; service rates and charges; discontinuance of service; required water and sewer connections; lien for delinquent fees.
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         (a)(1) The board may make, enact, and enforce all needful rules in connection with the
  acquisition, construction, improvement, extension, management, maintenance, operation, care,
  protection, and the use of any public service properties owned or controlled by the district. The
  board shall establish, in accordance with this article, rates, fees, and charges for the services and
  facilities it furnishes, which shall be sufficient at all times, notwithstanding the provisions of any
  other law or laws, to pay the cost of maintenance, operation, and depreciation of the public service
  properties and principal of and interest on all bonds issued, other obligations incurred under the
  provisions of this article, and all reserve or other payments provided for in the proceedings which
  authorized the issuance of any bonds under this article. The schedule of the rates, fees, and
 charges may be based upon:
        (A) The consumption of water or gas on premises connected with the facilities, taking into
 consideration domestic, commercial, industrial, and public use of water and gas;
        (B) The number and kind of fixtures connected with the facilities located on the various
 premises;
        (C) The number of persons served by the facilities;
        (D) Any combination of paragraphs (A), (B), and (C) of this subdivision; or
        (E) Any other basis or classification which the board may determine to be fair and
 reasonable, taking into consideration the location of the premises served and the nature and
 extent of the services and facilities furnished. However, no rates, fees, or charges for stormwater
 services may be assessed against highways, road, and drainage easements or stormwater
 facilities constructed, owned, or operated by the West Virginia Division of Highways.
        (2) The board of a public service district with at least 4,500 customers and annual
 combined gross revenue of $3 million providing water or sewer service separately or in
 combination may make, enact, and enforce all needful rules in connection with the enactment or
 amendment of rates, fees, and charges of the district. At a minimum, these rules shall provide for:
        (A) Adequate prior public notice of the contemplated rates, fees, and charges by causing a
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 notice of intent to effect such a change to be provided to the customers of the district for the month
 immediately preceding the month in which the contemplated change is to be considered at a
 hearing by the board. The notice shall include a statement that a change in rates, fees, and
 charges is being considered, the time, date, and location of the hearing of the board at which the
 change will be considered, and that the proposed rates, fees, and charges are on file at the office
 of the district for review during regular business hours. The notice shall be printed on, or mailed
 with, the monthly billing statement, or provided in a separate mailing.
        (B) Adequate prior public notice of the contemplated rates, fees, and charges by causing to
 be published, after the first reading and approval of a resolution of the board considering the
 revised rates, fees, and charges but not less than one week prior to the public hearing of the board
 on the resolution, as a Class I legal advertisement, of the proposed action, in compliance with the
 provisions of §59-3-1 et seq. of this code. The publication area for publication shall be all territory
 served by the district. If the district provides service in more than one county, publication shall be
 made in a newspaper of general circulation in each county that the district provides service.
        (C) The public notice of the proposed action shall summarize the current rates, fees, and
 charges and the proposed changes to said rates, fees, and charges; the date, time, and place of
 the public hearing on the resolution approving the revised rates, fees, and charges, and the place
 or places within the district where the proposed resolution approving the revised rates, fees, and
 charges may be inspected by the public. A reasonable number of copies of the proposed
 resolution shall be kept at the place or places and be made available for public inspection. The
 notice shall also advise that interested parties may appear at the public hearing before the board
 and be heard with respect to the proposed revised rates, fees, and charges.
        (D) The resolution proposing the revised rates, fees, and charges shall be read at two
 meetings of the board with at least two weeks intervening between each meeting. The public
 hearing may be conducted by the board prior to, or at, the meeting at which the resolution is
 considered for adoption on the second reading.
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        (E) Rates, fees, and charges approved by resolution of the board shall be forwarded in
 writing to the county commission with the authority to appoint the members of the board. The
 county commission shall publish notice of the proposed revised rates, fees, and charges by a
 Class I legal advertisement in compliance with the provisions of §59-3-1 et seq. of this code.
 Within 45 days of receipt of the proposed rates, fees, and charges, the county commission shall
 take action to approve, modify, or reject the proposed rates, fees, and charges, in its sole
 discretion. If, after 45 days, the county commission has not taken final action to approve, modify, or
 reject the proposed rates, fees, and charges, as presented to the county commission, the
 proposed rates, fees, and charges shall be effective with no further action by the board or county
 commission. In any event, this 45-day period shall be mandatory unless extended by the official
 action of both the board proposing the rates, fees, and charges, and the appointing county
 commission.
        (F) Enactment of the proposed or