Senate committee approves bill to let county commissions complete sales of dissolved PSD assets

The Senate Committee on Government Organization on Monday agreed to a committee substitute for Senate Bill 625 that would allow a county commission that has ordered the dissolution and sale or merger of a public service district to complete the transfer of that PSD's utility assets without the board of the PSD conducting the usual notice, hearing and approval process.

Counsel for the committee said the substitute "amends a single section of code regarding the transfer of interest in a utility system owned by a public service district or PSD," and makes clear that where a county commission has ordered dissolution and sale or merger, "the notice, hearing and approval by the board of the PSD that is being dissolved or sold that would otherwise be needed is not required." The counsel said the change arose from a request by the Public Service Commission after "a PSD is apparently refusing to cooperate with the county commission in the transfer of the PSD's assets."

Charlotte Lane, chair of the West Virginia Public Service Commission, told the committee the bill grew out of a Lincoln County situation where the county commission dissolved a PSD after repeated failures to provide adequate water service and sought to sell the system to West Virginia American Water. "The Lincoln County PSD has had difficult difficulties providing adequate water service to their citizens," Lane said, and "the board is refusing to sign the appropriate documents." She told senators the county commission stepped in to try to solve service failures and that the substitute is intended to provide clarity about when county commissions may finalize sales following dissolution.

Sen. [Senior senator from the eighth] pressed counsel on whether the bill requires the PSD to be in distress. Counsel said the substitute is conditional: it applies when the county commission has already ordered dissolution and sale or merger. When asked whether the measure "force[s] the PSD to accept another PSD," counsel replied, "In one sense, yes," explaining that a dissolution order ends the PSD's independent authority and allows the county commission to complete disposition of assets.

With no amendments offered, the committee agreed to the committee substitute by voice vote and the vice chair moved that the substitute be reported to the full Senate with the recommendation that it pass. The chair declared the motion adopted and the substitute will be reported to the Senate.

The committee record shows no roll-call tallies for the voice votes taken on the substitute; all actions were recorded by the chair as adopted. The committee hearing included testimony from the Public Service Commission and references a local sale in Lincoln County as the impetus for the change.