AN ACT relating to sanitation districts.

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AN ACT relating to sanitation districts. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 220.510 is amended to read as follows: 3
(1) The board of directors shall, by resolution, determine the rates and compensation or 4
rentals to be charged for the use of the sanitary works. The board of directors may 5
provide for a sewer service charge to be imposed and collected, beginning at the 6
time the plan for the improvement has been approved by the Energy and 7
Environment Cabinet and work is begun on plans and specifications for the 8
improvement. The rates shall at all times be reaso nable, taking into account the cost 9
of the works, the cost of operation and maintenance, and the amount necessary for 10
the amortization of the bonds issued to finance the works. The same schedule of 11
rates and charges shall apply to all users of the same cla ss. The rates shall be 12
binding upon all users of the system. The board may alter and revise the rates in its 13
discretion. In case of failure of any user to pay for services rendered, the board may 14
compel payment and may enjoin further use until the payment is made, or it may 15
institute an action in any court having jurisdiction for the recovery of charges for 16
services rendered, or the board may, by a notice in writing, signed by its chairman 17
or any member of said board, notify the municipality, or person, fir m, or 18
corporation, which furnishes water to the user's premises, to shut off the water 19
service to said user's premises, until such time as all delinquent charges, plus a 20
reasonable charge for turning off and on the water service, against said user, are 21
paid in full. Upon receipt of such notice in writing, the municipality, or the person, 22
firm, or corporation, which furnishes water to the said user's premises shall 23
immediately shut off and discontinue the water service to the said user's premises. 24
Upon full payment of such account, plus a reasonable charge for turning off and on 25
the water service, the chairman, or any member of said board, shall notify the said 26
municipality, person, firm, or corporation, which furnishes water to said user, that 27
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the account is paid in full, including such reasonable charge for turning off and on 1
the water service, and that the said water service can again be provided to said 2
user's premises. The board of directors shall promptly pay to such municipality, 3
person, firm, or corpor ation, such fee or charge collected for turning off and on 4
such water service. The board may enter into contracts with public corporations or 5
other large users of sewer services. The board may provide by resolution any 6
provisions and stipulations it deems necessary for the administration of the revenue 7
of the district, and for the security of the bondholders. 8
(2) No moneys received on account of the existence or operation of construction 9
subdistricts shall be used for the payment of district obligations, an d no other 10
moneys received by the district shall be used for the payment of construction 11
subdistrict bonds or obligations. Except as provided in the preceding sentence the 12
use of all moneys of the district received from any and all sources is hereby limite d 13
exclusively and shall be devoted solely to the payment of all obligations of the 14
district and board created by KRS 220.010 to 220.540, and no funds from any 15
sources authorized by KRS 220.010 to 220.540 shall be diverted to any other 16
purposes than those i n KRS 220.010 to 220.540 set forth, except that the district 17
shall pay from district area revenues an equitably allocable share of the cost of 18
constructing and operating any nondistrict area facilities to which sewage from the 19
district area is diverted in order to relieve district facilities from excessive sewage 20
and costs described in KRS 220.561 but otherwise paid for. 21
(3) Notwithstanding any other provision of this chapter, a sanitation district shall not 22
charge any fee, tax, or other charge to a propert y owner or other person for the 23
provision of a service unless: 24
(a) The property that is the basis of the charge is connected to a sanitary sewer 25
owned or maintained by the sanitation district; 26
(b) There is an approved plan by the district to connect the property that is the 27
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basis of the charge to a sanitary sewer within five (5) years; 1
(c) The property that is the basis of the charge discharges stormwater to a 2
storm sewer or other stormwater improve ment owned or maintained by the 3
sanitation district and the boundary of the property is within one thousand 4
(1,000) feet of the storm sewer or other stormwater improvement and within 5
the boundaries of a city under a co -permittee agreement with the sanitati on 6
district. As used in this paragraph, "discharge" includes stormwater flow 7
that passes onto private or public property prior to entering an improvement 8
owned or maintained by the sanitation district; 9
(d) A storm sewer or other stormwater improvement owne d or maintained by 10
the sanitation district controls stormwater that flows to the property that is 11
the basis of the charge; or 12
(e) The property owner or other person has contracted with the sanitation 13
district to provide the service. 14
(4) Any property owner or other person who is charged a fee, tax, or other charge for 15
the provision of a service pursuant to subsection (3)(b) of this section shall have a 16
cause of action against the sanitation district for a refund of those charges, with 17
interest, if the servic e is not provided to that property owner or other person 18
within five (5) years of the approval date of the plan. 19
Section 2. This Act may be cited as the Ensuring Fair Sewer Charges Act. 20