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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>79341</law_id><section_number>32.1-174.3</section_number><catch_line>Appointment of receiver for certain private waterworks; grounds for such appointment; petition and hearing, etc</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><structure><unit label="title" level="1" order_by="1" identifier="32.1">Health</unit><unit label="chapter" level="2" order_by="1" identifier="6">Environmental Health Services</unit><unit label="article" level="3" order_by="1" identifier="2">Public Water Supplies</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> In addition to the remedies provided in &#xA7;&#xA0;<a class="law" title="Penalties, injunctions, civil penalties and charges for violations" href="/32.1-27/">32.1-27</a> and this chapter for civil and criminal penalties and injunctive or other relief, the <span class="dictionary">Commissioner</span> may <span class="dictionary">petition</span> the <span class="dictionary">circuit</span> <span class="dictionary">court</span> for the <span class="dictionary">jurisdiction</span> in which any private <span class="dictionary">waterworks</span> is located for the appointment of a receiver for such <span class="dictionary">waterworks</span> in accordance with the provisions of this section. Such <span class="dictionary">petition</span> may be filed at any time that the <span class="dictionary">Commissioner</span> finds that the <span class="dictionary">waterworks</span> is unable or unwilling to provide adequate and safe service for any of the following reasons: <a id="paragraph-284042" class="section-permalink" href="https://vacode.org/32.1-174.3/#A"><i class="fa fa-link"/></a></p></section>
						<section id="A1" class="indent-1"><p><span class="prefix-number">1.</span> The <span class="dictionary">waterworks</span> can no longer be depended upon to furnish <span class="dictionary">pure water</span>; <a id="paragraph-284043" class="section-permalink" href="https://vacode.org/32.1-174.3/#A1"><i class="fa fa-link"/></a></p></section>
						<section id="A2" class="indent-1"><p><span class="prefix-number">2.</span> The <span class="dictionary">waterworks</span> has inadequate capacity to furnish <span class="dictionary">pure water</span> to its customers; <a id="paragraph-284044" class="section-permalink" href="https://vacode.org/32.1-174.3/#A2"><i class="fa fa-link"/></a></p></section>
						<section id="A3" class="indent-1"><p><span class="prefix-number">3.</span> The <span class="dictionary">owner</span> has failed to comply with an <span class="dictionary">order</span> issued by the <span class="dictionary">Commissioner</span>; <a id="paragraph-284045" class="section-permalink" href="https://vacode.org/32.1-174.3/#A3"><i class="fa fa-link"/></a></p></section>
						<section id="A4" class="indent-1"><p><span class="prefix-number">4.</span> The <span class="dictionary">owner</span> has abandoned the <span class="dictionary">waterworks</span> and has discontinued supplying <span class="dictionary">pure water</span> to his customers; <a id="paragraph-284046" class="section-permalink" href="https://vacode.org/32.1-174.3/#A4"><i class="fa fa-link"/></a></p></section>
						<section id="A5" class="indent-1"><p><span class="prefix-number">5.</span> The <span class="dictionary">owner</span> is subject to a forfeiture <span class="dictionary">order</span> pursuant to &#xA7; <a class="law" title="Bonds of permit holders" href="/32.1-174.1/">32.1-174.1</a>; or <a id="paragraph-284047" class="section-permalink" href="https://vacode.org/32.1-174.3/#A5"><i class="fa fa-link"/></a></p></section>
						<section id="A6" class="indent-1"><p><span class="prefix-number">6.</span> The <span class="dictionary">Commissioner</span> has issued an emergency <span class="dictionary">order</span> because there is an imminent danger to the public health and welfare resulting from the operation of the <span class="dictionary">waterworks</span> or the source of the <span class="dictionary">water supply</span>. <a id="paragraph-284048" class="section-permalink" href="https://vacode.org/32.1-174.3/#A6"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> Upon the filing of a <span class="dictionary">petition</span> for appointment of a receiver for a private <span class="dictionary">waterworks</span>, the <span class="dictionary">court</span> shall hold a <span class="dictionary">hearing</span> within 10 days, at which time the <span class="dictionary">Commissioner</span> and the <span class="dictionary">owner</span> of the <span class="dictionary">waterworks</span> may present <span class="dictionary">evidence</span>. The <span class="dictionary">court</span> may grant the <span class="dictionary">petition</span> if it finds any one or more of the conditions identified in subsection A and the <span class="dictionary">court</span> further finds that the conditions will not be remedied and that the health and welfare of the <span class="dictionary">owner</span>&#x2019;s customers will not be protected unless the <span class="dictionary">petition</span> is granted. <a id="paragraph-284049" class="section-permalink" href="https://vacode.org/32.1-174.3/#B"><i class="fa fa-link"/></a></p></section>
						<section id="C"><p><span class="prefix-number">C.</span> Upon appointment the receiver shall take <span class="dictionary">possession</span> of the <span class="dictionary">assets</span> of the <span class="dictionary">waterworks</span> and shall operate the <span class="dictionary">waterworks</span> in the best interests of the customers. The receiver shall have such powers and duties to operate and manage the <span class="dictionary">waterworks</span> as the <span class="dictionary">court</span> may grant and direct, including the filing of such reports as the <span class="dictionary">court</span> may direct and the power to receive, conserve, protect, and disburse funds; further, the provisions of Article 1 (&#xA7; <a class="law" title="Appointment of general receivers; their duties; audit of funds" href="/8.01-582/">8.01-582</a> et seq.) of Chapter 22 of Title 8.01 shall apply, <span class="dictionary">mutatis mutandis</span>.
			The <span class="dictionary">court</span> may grant injunctive relief as it deems appropriate to the <span class="dictionary">Commissioner</span> or the receiver either in conjunction with or subsequent to the granting of a <span class="dictionary">petition</span> for appointment of a receiver under this section. <a id="paragraph-284050" class="section-permalink" href="https://vacode.org/32.1-174.3/#C"><i class="fa fa-link"/></a></p></section>
						<section id="D"><p><span class="prefix-number">D.</span> Control of and responsibility for the <span class="dictionary">waterworks</span> shall remain in the receivership until the <span class="dictionary">waterworks</span> can, in the best interest of the customers, be returned to the <span class="dictionary">owner</span>, transferred to a new <span class="dictionary">owner</span>, or otherwise configured as the <span class="dictionary">court</span> may determine to be in the best interests of the public and the customers. <a id="paragraph-284051" class="section-permalink" href="https://vacode.org/32.1-174.3/#D"><i class="fa fa-link"/></a></p></section>
						<section id="E"><p><span class="prefix-number">E.</span> The <span class="dictionary">court</span> may terminate the receivership on the <span class="dictionary">motion</span> of the <span class="dictionary">Commissioner</span>, the receiver, or the <span class="dictionary">owner</span>, upon <span class="dictionary">finding</span>, after a <span class="dictionary">hearing</span>, that the conditions initiating the <span class="dictionary">petition</span> 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 <span class="dictionary">court</span>, including an accounting for all property of which he took <span class="dictionary">possession</span> and all funds collected.
			A receiver appointed pursuant to this section shall be an officer of the <span class="dictionary">court</span>, shall not be liable for the conditions of the <span class="dictionary">waterworks</span> that existed prior to his receivership, and shall not be personally liable, except for his own gross <span class="dictionary">negligence</span> or intentional acts, to injuries or damage to property relating to the <span class="dictionary">waterworks</span> during his receivership.
			This subsection shall not, however, be construed to relieve any <span class="dictionary">owner</span> of any duty imposed by <span class="dictionary">law</span> or of any civil or criminal liability incurred by reasons of any act or omission of such <span class="dictionary">owner</span>. <a id="paragraph-284052" class="section-permalink" href="https://vacode.org/32.1-174.3/#E"><i class="fa fa-link"/></a></p></section></text><history>2003, c. 458.</history><metadata></metadata></law>
