KRS 224.73-150: Conditions for appointment of receiver to manage and operate

privately owned small wastewater treatment plant -- Attachment and control

of plant's assets -- Hearings, permitted actions, and orders.

(1) The cabinet may seek to have a receiver appointed to assume the management and

operation of a privately owned small wastewater treatment plant if the plant:

(a) Presents a threat or likely threat to the public health or the environment;

(b) Is in substantial and recurring noncompliance with its discharge permit as

issued by the cabinet; or

(c) The owner is unable or unwilling to operate or to provide for the proper

operation of the plant.

(2) If the cabinet, after following the procedures and conducting a hearing in

accordance with KRS 224.10 -410 or 224.10-420 and the administrative regulations

promulgated thereunder, enters an order in which it finds that a plant meets any of

the conditions of subsection (1) of this section, and after notification to the Public

Service Commission if the plant is a utility as defined in KRS 278.010(3)(f), the

cabinet may bring an action in the Franklin Circuit Court for an order attaching the

assets of the plant and placing those assets under the sole control and responsibility

of a receiver.

(3) Within twenty (20) days after commencing an action in Franklin Circuit Court, the

cabinet shall file a certified copy of the record of the administrative proceeding in

which the secretary of the cabinet entered his or her findings.

(4) During the pendency of any receiversh ip, the receiver may bring or defend any

cause of action on behalf of the owner of the plant as the court may authorize,

including an action to raise rates or institute surcharges as necessary to properly

operate, maintain, restore, and rehabilitate the pl ant and to pay the costs, fees, and

expenses of the receiver.

(5) The receiver shall control and manage the assets and operations of the plant until

the Franklin Circuit Court, after reasonable notice and hearing, orders the receiver

to return control of t hose assets to the plant's owner or to liquidate and transfer

those assets as provided by law.

(6) (a) Notwithstanding subsection (2) of this section, the cabinet, after notification

to the Public Service Commission if the plant is a utility as defined in KRS

278.010(3)(f), may petition the Franklin Circuit Court to appoint a temporary

receiver to operate and manage the assets of the plant meeting the conditions

set out in subsection (1) of this section.

(b) After notice to the owner of the plant, and after notification to the Public

Service Commission if the plant is a utility as defined in KRS 278.010(3)(f),

the court may grant a petition for the appointment of a temporary receiver, on

terms and conditions as it deems appropriate, upon a showing by a

preponderance of the evidence:

1. That the plant is an immediate threat to the public health, safety, or the

environment;

2. There is an immediate threat to the continued availability of service to

the customers served by the plant; and

3. That the delay required for the cabinet to follow the procedures and

conduct a hearing in accordance with subsection (2) of this section

would place the public health or safety, the environment, or continued

wastewater treatment service at unnecessary risk.