{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-264.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-264.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-264.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-264.2.html"}],"law_id":54297,"edition_id":1,"section_id":54297,"structure_id":13239,"section_number":"56-264.2","catch_line":"Governing board of multistate entities operating certain sewage treatment facilities; arbitration of issues; condemnation of facilities","history":"2006, cc. 576, 591.","full_text":"A\n\nAs used in this section, “multistate entity” means any corporation, company, political subdivision, association, or other legal entity, without regard to whether such entity is a public utility or public service company, that engages in the provision of sewerage service to persons residing in the Commonwealth and to persons residing in an adjacent state and that operates a sewage treatment facility with a capacity of not less than five million gallons per day that is located in the Commonwealth, the construction or expansion of which treatment facility was financed primarily through the Virginia Revolving Loan Fund or a successor loan fund program administered by the Virginia Resources Authority or Department of Environmental Quality.B\n\nNotwithstanding any contrary provision of law, all powers of a multistate entity shall be exercised by or under the authority of, and all business and affairs of the multistate entity shall be managed under the direction of, a governing board, which may be titled a board of directors, board of trustees, or similar appellation. The governing board shall be comprised of (i) two members residing in the Commonwealth for each locality of the Commonwealth wherein the multistate entity provides sewage treatment services and (ii) a number of members residing in the adjacent state that is equal to the number of members residing in the Commonwealth. The governing body of each locality of the Commonwealth wherein the multistate entity provides sewerage services shall appoint two individuals to the board, which individuals need not be residents of such locality. The terms of members of the board residing in the Commonwealth shall expire one year following their appointment; however, despite the expiration of such a member’s term, the member shall continue to serve until his successor is elected and qualifies. Unless the articles of incorporation, bylaws, charter, or other organic document of the multistate entity requires a greater number for the transaction of particular business, a quorum of the governing board shall consist of a majority of the number of members prescribed by this subsection. If a quorum is present when a vote of the governing board is taken, the affirmative vote of a majority of members present is the act of the governing board unless the articles of incorporation, bylaws, charter, or other organic document of the multistate entity requires the vote of a greater number of members. Except as provided in this section, the provisions of the articles of incorporation, bylaws, charter, or other organic document of a multistate entity in effect prior to July 1, 2006, shall continue to apply with respect to the method of appointing the board members residing in the adjacent state and the duration of their terms, and to other matters relating to the governing board of such multistate entity, except that no amendment to the articles of incorporation, bylaws, charter, or other organic document of the multistate entity that contravenes any provision of this section shall be effective.C\n\nUpon the filing of a petition by not fewer than one-half of the members of the governing board of a multistate entity requesting the Commission to arbitrate an issue pertaining to the management of the business and affairs of the multistate entity that requires the affirmative vote of the members, upon which issue the governing board is deadlocked, the Commission shall commence a proceeding to arbitrate the issue. The multistate entity and the nonpetitioning members of the governing board shall be parties to the proceeding. With the petition for arbitration, the petitioners shall provide all relevant documentation concerning the issue on which it is alleged that the board is deadlocked and the positions of the petitioners and the other members of the governing board with respect to the issue. The Commission shall conduct the arbitration proceeding in accordance with its Rules of Practice and Procedure (5VAC5-20-10 et seq.). The Commission’s consideration shall be limited to the issue in the petition. The Commission shall proceed promptly with the hearing and determination of the issue in controversy. The final order of the Commission shall be final and binding on the multistate entity and the governing board, unless notice of appeal to the Supreme Court is filed in the office of the Clerk of the Commission within 30 days after entry of the order appealed from, in the manner provided in the rules of the Supreme Court of Virginia. If the Commission incurs additional costs in conducting such an arbitration proceeding that cannot be recovered through the maximum levy authorized pursuant to § 58.1-2660, the unrecoverable portion of the costs of the arbitration proceedings shall be assessed against the multistate entity.D\n\nIf the articles of incorporation, bylaws, charter, or other organic document of a multistate entity in existence on July 1, 2006, does not comply with the requirements of subsection B by January 1, 2008, then the locality in the Commonwealth wherein the sewage treatment facility is located shall be authorized to acquire, by exercise of the power of eminent domain if the governing body of the locality deems it appropriate, the sewage treatment facility operated by the multistate entity, without regard to whether such entity is the owner of the sewage treatment facility, and any related pipelines, easements, and other property related to the provision of sewerage services that is located within the locality, for the purpose of providing sewerage services to persons residing within the Commonwealth and the Bluestone Watershed.","order_by":null,"text":{"0":{"id":199334,"text":"As used in this section, “multistate entity” means any corporation, company, political subdivision, association, or other legal entity, without regard to whether such entity is a public utility or public service company, that engages in the provision of sewerage service to persons residing in the Commonwealth and to persons residing in an adjacent state and that operates a sewage treatment facility with a capacity of not less than five million gallons per day that is located in the Commonwealth, the construction or expansion of which treatment facility was financed primarily through the Virginia Revolving Loan Fund or a successor loan fund program administered by the Virginia Resources Authority or Department of Environmental Quality.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":199335,"text":"Notwithstanding any contrary provision of law, all powers of a multistate entity shall be exercised by or under the authority of, and all business and affairs of the multistate entity shall be managed under the direction of, a governing board, which may be titled a board of directors, board of trustees, or similar appellation. The governing board shall be comprised of (i) two members residing in the Commonwealth for each locality of the Commonwealth wherein the multistate entity provides sewage treatment services and (ii) a number of members residing in the adjacent state that is equal to the number of members residing in the Commonwealth. The governing body of each locality of the Commonwealth wherein the multistate entity provides sewerage services shall appoint two individuals to the board, which individuals need not be residents of such locality. The terms of members of the board residing in the Commonwealth shall expire one year following their appointment; however, despite the expiration of such a member’s term, the member shall continue to serve until his successor is elected and qualifies. Unless the articles of incorporation, bylaws, charter, or other organic document of the multistate entity requires a greater number for the transaction of particular business, a quorum of the governing board shall consist of a majority of the number of members prescribed by this subsection. If a quorum is present when a vote of the governing board is taken, the affirmative vote of a majority of members present is the act of the governing board unless the articles of incorporation, bylaws, charter, or other organic document of the multistate entity requires the vote of a greater number of members. Except as provided in this section, the provisions of the articles of incorporation, bylaws, charter, or other organic document of a multistate entity in effect prior to July 1, 2006, shall continue to apply with respect to the method of appointing the board members residing in the adjacent state and the duration of their terms, and to other matters relating to the governing board of such multistate entity, except that no amendment to the articles of incorporation, bylaws, charter, or other organic document of the multistate entity that contravenes any provision of this section shall be effective.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":199336,"text":"Upon the filing of a petition by not fewer than one-half of the members of the governing board of a multistate entity requesting the Commission to arbitrate an issue pertaining to the management of the business and affairs of the multistate entity that requires the affirmative vote of the members, upon which issue the governing board is deadlocked, the Commission shall commence a proceeding to arbitrate the issue. The multistate entity and the nonpetitioning members of the governing board shall be parties to the proceeding. With the petition for arbitration, the petitioners shall provide all relevant documentation concerning the issue on which it is alleged that the board is deadlocked and the positions of the petitioners and the other members of the governing board with respect to the issue. The Commission shall conduct the arbitration proceeding in accordance with its Rules of Practice and Procedure (5VAC5-20-10 et seq.). The Commission’s consideration shall be limited to the issue in the petition. The Commission shall proceed promptly with the hearing and determination of the issue in controversy. The final order of the Commission shall be final and binding on the multistate entity and the governing board, unless notice of appeal to the Supreme Court is filed in the office of the Clerk of the Commission within 30 days after entry of the order appealed from, in the manner provided in the rules of the Supreme Court of Virginia. If the Commission incurs additional costs in conducting such an arbitration proceeding that cannot be recovered through the maximum levy authorized pursuant to § 58.1-2660, the unrecoverable portion of the costs of the arbitration proceedings shall be assessed against the multistate entity.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":199337,"text":"If the articles of incorporation, bylaws, charter, or other organic document of a multistate entity in existence on July 1, 2006, does not comply with the requirements of subsection B by January 1, 2008, then the locality in the Commonwealth wherein the sewage treatment facility is located shall be authorized to acquire, by exercise of the power of eminent domain if the governing body of the locality deems it appropriate, the sewage treatment facility operated by the multistate entity, without regard to whether such entity is the owner of the sewage treatment facility, and any related pipelines, easements, and other property related to the provision of sewerage services that is located within the locality, for the purpose of providing sewerage services to persons residing within the Commonwealth and the Bluestone Watershed.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":13239,"edition_id":1,"name":"Water and Sewerage Companies","identifier":"6","label":"article","depth":3,"order_by":1,"parent_id":13238,"metadata":{},"date_created":"2026-06-26 03:44:30","date_modified":"2026-06-26 03:44:30","permalink":{"id":249085,"object_type":"structure","relational_id":13239,"identifier":"6","token":"56\/10\/6","url":"\/56\/10\/6\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13238,"edition_id":1,"name":"Heat, Light, Power, Water and Other Utility Companies Generally","identifier":"10","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 03:44:30","date_modified":"2026-06-26 03:44:30","permalink":{"id":248721,"object_type":"structure","relational_id":13238,"identifier":"10","token":"56\/10","url":"\/56\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12881,"edition_id":1,"name":"Public Service Companies","identifier":"56","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:58","date_modified":"2026-06-26 03:43:58","permalink":{"id":248473,"object_type":"structure","relational_id":12881,"identifier":"56","token":"56","url":"\/56\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":67034,"structure_id":13239,"section_number":"56-261","catch_line":"Duties of companies furnishing water or sewerage facilities","url":"\/56-261\/","token":"56\/10\/6\/56-261","metadata":false},{"id":82251,"structure_id":13239,"section_number":"56-261.1","catch_line":"Duties of water and sewerage companies in certain counties","url":"\/56-261.1\/","token":"56\/10\/6\/56-261.1","metadata":false},{"id":58928,"structure_id":13239,"section_number":"56-261.2","catch_line":"Hydrant connections and water supply for fire protection in certain counties","url":"\/56-261.2\/","token":"56\/10\/6\/56-261.2","metadata":false},{"id":71914,"structure_id":13239,"section_number":"56-262","catch_line":"Proceeding upon failure of public service corporation to perform duties","url":"\/56-262\/","token":"56\/10\/6\/56-262","metadata":false},{"id":54242,"structure_id":13239,"section_number":"56-263","catch_line":"Commission may order increase in service","url":"\/56-263\/","token":"56\/10\/6\/56-263","metadata":false},{"id":61830,"structure_id":13239,"section_number":"56-264","catch_line":"Quo warranto in case of failure to comply with order of Commission","url":"\/56-264\/","token":"56\/10\/6\/56-264","metadata":false},{"id":54615,"structure_id":13239,"section_number":"56-264.1","catch_line":"Collection of rates, fees and charges","url":"\/56-264.1\/","token":"56\/10\/6\/56-264.1","metadata":false},{"id":54297,"structure_id":13239,"section_number":"56-264.2","catch_line":"Governing board of multistate entities operating certain sewage treatment facilities; arbitration of issues; condemnation of facilities","url":"\/56-264.2\/","token":"56\/10\/6\/56-264.2","metadata":false},{"id":81743,"structure_id":13239,"section_number":"56-264.3","catch_line":"Cost allocation and rate design","url":"\/56-264.3\/","token":"56\/10\/6\/56-264.3","metadata":false},{"id":61263,"structure_id":13239,"section_number":"56-265","catch_line":"Certain sections not to limit Commission's powers","url":"\/56-265\/","token":"56\/10\/6\/56-265","metadata":false}],"previous_section":{"id":54615,"structure_id":13239,"section_number":"56-264.1","catch_line":"Collection of rates, fees and charges","url":"\/56-264.1\/","token":"56\/10\/6\/56-264.1","metadata":false},"next_section":{"id":81743,"structure_id":13239,"section_number":"56-264.3","catch_line":"Cost allocation and rate design","url":"\/56-264.3\/","token":"56\/10\/6\/56-264.3","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-264.2\/","history_text":"

This law was first created in 2006. The record of its establishment is cataloged in chapters 576<\/a> and 591<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":[{"id":79433,"section_number":"58.1-2660","catch_line":"Special revenue tax; levy","order_by":null,"url":"\/58.1-2660\/"}],"permalink":{"id":249115,"object_type":"law","relational_id":54297,"identifier":"56-264.2","token":"56\/10\/6\/56-264.2","url":"\/56-264.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-264.2\/","token":"56\/10\/6\/56-264.2","dublin_core":{"Title":"Governing board of multistate entities operating certain sewage treatment facilities; arbitration of issues; condemnation of facilities","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-264.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section, “multistate entity<\/span>” means any corporation<\/span>, company, political subdivision, association, or other legal entity, without regard to whether such entity is a public utility or public service company<\/span>, that engages in the provision of sewerage service to persons<\/span> residing in the Commonwealth and to persons<\/span> residing in an adjacent state and that operates a sewage treatment facility with a capacity of not less than five million gallons per day that is located in the Commonwealth, the construction or expansion of which treatment facility was financed primarily through the Virginia Revolving Loan Fund or a successor loan fund program administered by the Virginia Resources Authority or Department of Environmental Quality. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Notwithstanding any contrary provision of law<\/span>, all powers of a multistate entity<\/span> shall be exercised by or under the authority of, and all business and affairs of the multistate entity<\/span> shall be managed under the direction of, a governing board, which may be titled a board of directors, board of trustees, or similar appellation. The governing board shall be comprised of (i) two members residing in the Commonwealth for each locality of the Commonwealth wherein the multistate entity<\/span> provides sewage treatment services and (ii) a number of members residing in the adjacent state that is equal to the number of members residing in the Commonwealth. The governing body of each locality of the Commonwealth wherein the multistate entity<\/span> provides sewerage services shall appoint two individuals to the board, which individuals need not be residents of such locality. The terms of members of the board residing in the Commonwealth shall expire one year following their appointment; however, despite the expiration of such a member’s term, the member shall continue to serve until his successor is elected and qualifies. Unless the articles of incorporation, bylaws, charter, or other organic document of the multistate entity<\/span> requires a greater number for the transaction of particular business, a quorum of the governing board shall consist of a majority of the number of members prescribed by this subsection. If a quorum is present when a vote of the governing board is taken, the affirmative vote of a majority of members present is the act of the governing board unless the articles of incorporation, bylaws, charter, or other organic document of the multistate entity<\/span> requires the vote of a greater number of members. Except as provided in this section, the provisions of the articles of incorporation, bylaws, charter, or other organic document of a multistate entity<\/span> in effect prior to July 1, 2006, shall continue to apply with respect to the method of appointing the board members residing in the adjacent state and the duration of their terms, and to other matters relating to the governing board of such multistate entity<\/span>, except that no amendment to the articles of incorporation, bylaws, charter, or other organic document of the multistate entity<\/span> that contravenes any provision of this section shall be effective. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Upon the filing of a petition<\/span> by not fewer than one-half of the members of the governing board of a multistate entity<\/span> requesting the Commission<\/span> to arbitrate an issue<\/span> pertaining to the management of the business and affairs of the multistate entity<\/span> that requires the affirmative vote of the members, upon which issue<\/span> the governing board is deadlocked, the Commission<\/span> shall commence a proceeding to arbitrate the issue<\/span>. The multistate entity<\/span> and the nonpetitioning members of the governing board shall be parties to the proceeding. With the petition<\/span> for arbitration, the petitioners shall provide all relevant documentation concerning the issue<\/span> on which it is alleged that the board is deadlocked and the positions of the petitioners and the other members of the governing board with respect to the issue<\/span>. The Commission<\/span> shall conduct the arbitration proceeding in accordance with its Rules of Practice and Procedure (5VAC5-20-10 et seq.). The Commission<\/span>’s consideration shall be limited to the issue<\/span> in the petition<\/span>. The Commission<\/span> shall proceed promptly with the hearing<\/span> and determination of the issue<\/span> in controversy. The final order<\/span> of the Commission<\/span> shall be final and binding on the multistate entity<\/span> and the governing board, unless notice of appeal<\/span> to the Supreme Court<\/span> is filed in the office of the Clerk of the Commission<\/span> within 30 days after entry of the order appealed from, in the manner provided in the rules of the Supreme Court<\/span> of Virginia. If the Commission<\/span> incurs additional costs in conducting such an arbitration proceeding that cannot be recovered through the maximum levy<\/span> authorized pursuant to § 58.1-2660<\/a>, the unrecoverable portion of the costs of the arbitration proceedings shall be assessed against the multistate entity<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> If the articles of incorporation, bylaws, charter, or other organic document of a multistate entity<\/span> in existence on July 1, 2006, does not comply with the requirements of subsection B by January 1, 2008, then the locality in the Commonwealth wherein the sewage treatment facility is located shall be authorized to acquire, by exercise of the power of eminent domain if the governing body of the locality deems it appropriate, the sewage treatment facility operated by the multistate entity<\/span>, without regard to whether such entity is the owner of the sewage treatment facility, and any related pipelines, easements, and other property related to the provision of sewerage services that is located within the locality, for the purpose of providing sewerage services to persons<\/span> residing within the Commonwealth and the Bluestone Watershed. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nGOVERNING BOARD OF MULTISTATE ENTITIES OPERATING CERTAIN SEWAGE TREATMENT\nFACILITIES; ARBITRATION OF ISSUES; CONDEMNATION OF FACILITIES (\u00a7 56-264.2)\n\nA. As used in this section, “multistate entity” means any\ncorporation, company, political subdivision, association, or other legal entity,\nwithout regard to whether such entity is a public utility or public service\ncompany, that engages in the provision of sewerage service to persons residing\nin the Commonwealth and to persons residing in an adjacent state and that\noperates a sewage treatment facility with a capacity of not less than five\nmillion gallons per day that is located in the Commonwealth, the construction or\nexpansion of which treatment facility was financed primarily through the\nVirginia Revolving Loan Fund or a successor loan fund program administered by\nthe Virginia Resources Authority or Department of Environmental Quality.\n\nB. Notwithstanding any contrary provision of law, all powers of a multistate\nentity shall be exercised by or under the authority of, and all business and\naffairs of the multistate entity shall be managed under the direction of, a\ngoverning board, which may be titled a board of directors, board of trustees, or\nsimilar appellation. The governing board shall be comprised of (i) two members\nresiding in the Commonwealth for each locality of the Commonwealth wherein the\nmultistate entity provides sewage treatment services and (ii) a number of\nmembers residing in the adjacent state that is equal to the number of members\nresiding in the Commonwealth. The governing body of each locality of the\nCommonwealth wherein the multistate entity provides sewerage services shall\nappoint two individuals to the board, which individuals need not be residents of\nsuch locality. The terms of members of the board residing in the Commonwealth\nshall expire one year following their appointment; however, despite the\nexpiration of such a member’s term, the member shall continue to serve\nuntil his successor is elected and qualifies. Unless the articles of\nincorporation, bylaws, charter, or other organic document of the multistate\nentity requires a greater number for the transaction of particular business, a\nquorum of the governing board shall consist of a majority of the number of\nmembers prescribed by this subsection. If a quorum is present when a vote of the\ngoverning board is taken, the affirmative vote of a majority of members present\nis the act of the governing board unless the articles of incorporation, bylaws,\ncharter, or other organic document of the multistate entity requires the vote of\na greater number of members. Except as provided in this section, the provisions\nof the articles of incorporation, bylaws, charter, or other organic document of\na multistate entity in effect prior to July 1, 2006, shall continue to apply\nwith respect to the method of appointing the board members residing in the\nadjacent state and the duration of their terms, and to other matters relating to\nthe governing board of such multistate entity, except that no amendment to the\narticles of incorporation, bylaws, charter, or other organic document of the\nmultistate entity that contravenes any provision of this section shall be\neffective.\n\nC. Upon the filing of a petition by not fewer than one-half of the members of\nthe governing board of a multistate entity requesting the Commission to\narbitrate an issue pertaining to the management of the business and affairs of\nthe multistate entity that requires the affirmative vote of the members, upon\nwhich issue the governing board is deadlocked, the Commission shall commence a\nproceeding to arbitrate the issue. The multistate entity and the nonpetitioning\nmembers of the governing board shall be parties to the proceeding. With the\npetition for arbitration, the petitioners shall provide all relevant\ndocumentation concerning the issue on which it is alleged that the board is\ndeadlocked and the positions of the petitioners and the other members of the\ngoverning board with respect to the issue. The Commission shall conduct the\narbitration proceeding in accordance with its Rules of Practice and Procedure\n(5VAC5-20-10 et seq.). The Commission’s consideration shall be limited to\nthe issue in the petition. The Commission shall proceed promptly with the\nhearing and determination of the issue in controversy. The final order of the\nCommission shall be final and binding on the multistate entity and the governing\nboard, unless notice of appeal to the Supreme Court is filed in the office of\nthe Clerk of the Commission within 30 days after entry of the order appealed\nfrom, in the manner provided in the rules of the Supreme Court of Virginia. If\nthe Commission incurs additional costs in conducting such an arbitration\nproceeding that cannot be recovered through the maximum levy authorized pursuant\nto § 58.1-2660, the unrecoverable portion of the costs of the arbitration\nproceedings shall be assessed against the multistate entity.\n\nD. If the articles of incorporation, bylaws, charter, or other organic document\nof a multistate entity in existence on July 1, 2006, does not comply with the\nrequirements of subsection B by January 1, 2008, then the locality in the\nCommonwealth wherein the sewage treatment facility is located shall be\nauthorized to acquire, by exercise of the power of eminent domain if the\ngoverning body of the locality deems it appropriate, the sewage treatment\nfacility operated by the multistate entity, without regard to whether such\nentity is the owner of the sewage treatment facility, and any related pipelines,\neasements, and other property related to the provision of sewerage services that\nis located within the locality, for the purpose of providing sewerage services\nto persons residing within the Commonwealth and the Bluestone Watershed.\n\nHISTORY: 2006, cc. 576, 591.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}