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2003 SESSION

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SB 966 Certain private waterworks; appointment of receiver.

Introduced by: John C. Watkins | all patrons    ...    notes | add to my profiles

SUMMARY AS PASSED: (all summaries)

Certain private waterworks; appointment of receiver. Grants the Commissioner of Health the authority, in addition to the other civil and criminal penalties and injunctive or other relief, to petition the circuit court for the jurisdiction in which any private waterworks is located for the appointment of a receiver. The Commissioner must find that the waterworks is unable or unwilling to provide adequate and safe service for any of the following reasons: (i) the waterworks can no longer be depended upon to furnish pure water; (ii) the waterworks has inadequate capacity to furnish pure water to its customers; (iii) the owner has failed to comply with an order issued by the Commissioner; (iv) the owner has abandoned the waterworks and has discontinued supplying pure water to his customers; (v) the owner is subject to a forfeiture order on his bond; or (vi) the Commissioner has issued an emergency order because there is an imminent danger to the public health and welfare resulting from the operation of the waterworks or the source of the water supply. Upon the filing of a petition for appointment of a receiver for a private waterworks, the court must hold a hearing within 10 days, at which time the Commissioner and the owner of the waterworks may present evidence. The court may grant the petition if it finds any one or more of the named conditions and the court further finds that the conditions will not be remedied and that the health and welfare of the owner's customers will not be protected unless the petition is granted. Upon appointment, the receiver will take possession of the assets of the waterworks and operate the waterworks in the best interests of the customers. The receiver will have such powers and duties to operate and manage the waterworks as the court may grant and direct, including the filing of such reports as the court may direct and the power to receive, conserve, protect, and disburse funds. The court may grant injunctive relief as it deems appropriate to the Commissioner or the receiver either in conjunction with or subsequent to the granting of a petition for appointment of a receiver under this section. Control of and responsibility for the waterworks will remain in the receiver until the waterworks can, in the best interest of the customers, be returned to the owner, transferred to a new owner, or otherwise configured as the court may determine to be in the best interests of the public and the customers. The court may terminate the receivership on the motion of the Commissioner, the receiver, or the owner, upon finding, after a hearing, that the conditions initiating the petition for the appointment of a receiver have been eliminated or resolved. Within 30 days after such termination, the receiver shall file a complete report of his activities with the court, including an accounting for all property of which he took possession and all funds collected. A receiver appointed pursuant to this provision will be an officer of the court, will not be liable for the conditions of the waterworks that existed prior to his receivership, and will not be personally liable, except for his own gross negligence or intentional acts, to injuries or damage to property relating to the waterworks, during his receivership. This immunity provision cannot, however, be construed to relieve any owner of any duty imposed by law or of any civil or criminal liability incurred by reasons of any act or omission of such owner.


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