2013 -- H 6099

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LC02424

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

____________

A N A C T

RELATING TO WATERS AND NAVIGATION -- THE OCEAN STATE REGIONAL WATER

AUTHORITY

     Introduced By: Representatives Blazejewski, Ucci, E Coderre, Slater, and Johnston

     Date Introduced: May 09, 2013

     Referred To: House Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 46 of the General Laws entitled "WATERS AND NAVIGATION" is

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hereby amended by adding thereto the following chapter:

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     CHAPTER 32

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THE OCEAN STATE REGIONAL WATER AUTHORITY

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     46-32-1. Short title. -- This act shall be known and may be cited as the "Ocean State

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Regional Water Authority Act."

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     46-32-2. Legislative findings. -- (a) The purpose of this chapter is to create a regional

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water authority having existence separate and apart from the state, with the power and authority

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to acquire, lease, manage, sell, contract, develop, operate and maintain all properties, water and

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water supply systems which shall be necessary for the purposes set forth herein.

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     (b) It is hereby found and declared that there is a need in the state for a regional water

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system to efficiently maintain, preserve, and supply water for the benefit of the state, its

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economy, its municipalities, and the health and prosperity of its citizens.

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     (c) It is hereby found and declared that periodically there exists in the southern areas of

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the state a condition of water shortages which causes hardship to many individuals and families,

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impedes economic and physical development of the municipalities within the state, and adversely

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affects the welfare and prosperity of the people resident in said areas; that a regional water

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authority may facilitate the provision of alternative water supplies to such areas from the northern

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areas of the state.

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     (d) It is hereby found and declared that water is a statewide natural resource, and that

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while the Providence water supply board system has grown to serve approximately sixty percent

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(60%) of the people in the state, and has been recognized as providing some of the highest quality

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water in the country, it is in the best interest of the state that a regional water authority be

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established in the event that the city of Providence desires to sell, lease or otherwise convey all or

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any portion of the Providence water supply board system to such regional water authority.

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     (e) It is hereby found and declared that the creation of a regional water authority would

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also present an opportunity for other cities, municipalities and regional water supply systems to

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consider if it is in their best interests to lease, sell, or otherwise convey all or any portion of their

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water supply systems to a regional water authority.

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     46-32-3. Definitions. -- As used in this chapter, the following words and terms shall have

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the following meanings unless the context shall indicate another or different meaning or intent:

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     (1) "Authority" means the corporation created by section 46-32-4.

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     (2) "Board' means the board created pursuant to section 46-32-5.

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     (3) "Bonds and notes" means the bonds and notes or other obligations or evidences of

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indebtedness issued by the authority pursuant to this chapter.

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     (4) "District" means:

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     (i) On and after the date the authority first is granted an interest in real and personal

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property constituting a water supply system, the area served by the water supply system;

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     (ii) Any other portions of those municipalities as may by resolution request to be served

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by the authority and which are accepted by the authority as part of the district; and

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     (iii) Any other cities or towns or water districts in Rhode Island or portions thereof as

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may, from time to time, join the district pursuant to agreement with the authority, providing for

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the acquisition of the water supply system of such city, town, or district, or the merger and

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consolidation of such district into the authority, or the management and operation of the water

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supply system of such city, town or district by the authority.

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     (5) "Property" means any or all of the properties whether tangible or intangible of any

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water supply system or part thereof, including plants, works, and instrumentalities, and all

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properties used or useful in connection therewith, and all parts thereof and all appurtenances

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thereto, including lands, easements, rights in land and water rights whether legal or equitable,

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rights-of-way, contract rights, franchises, approaches, connections, dams, reservoirs, wells and

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well sites, water mains and pipelines, water storage tanks, pumping stations, equipment, fixtures,

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disposal facilities, laboratories, aeration systems and intake structures or any other property

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incidental to and included in the water supply system or part thereof situated within or without the

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authority.

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     (6) "State public body" means the state, or any city or town or any other subdivision or

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public body of the state or of any city or town.

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     (7) "Water supply system" means all property (as defined in subdivision (5) above) any

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and all real estate or interests in real estate held in connection with those, all equipment and

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improvements held in connection with those, and any and all other property or interests in them,

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real, personal or mixed, used or held to be used in connection with those and all appurtenances

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thereto.

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     46-32-4. Authority created. -- There is hereby created a regional authority to be known

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as the Ocean State Regional Water Authority. The ocean state regional water authority shall be a

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body corporate and politic and a political subdivision of the state having a distinct legal existence

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from the state and not constituting a department of the state government. The authority is hereby

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constituted an independent public instrumentality and the exercise by the authority of the powers

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conferred by this chapter shall be deemed and held to be the performance of an essential public

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function.

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     46-32-5. Board created. -- A board to be known as the ocean state regional water

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authority board is hereby created. The powers of the authority shall be vested in and exercised by

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a majority of the members of the board then in office.

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     46-32-6. Composition of board. -- (a) The board shall consist of nine (9) members. The

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governor shall appoint three (3) members as follows: the speaker of the house of representatives

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shall within thirty (30) days of passage of this act submit to the governor a list of names of three

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(3) individuals to which the governor shall give due consideration in appointing one person from

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the list for an initial term of two (2) years; the president of the senate shall within thirty (30) days

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of passage of this act submit to the governor a list of names of three (3) individuals to which the

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governor shall give due consideration in appointing one person from the list for an initial term of

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two (2) years; the governor shall also appoint one individual without regard to the lists submitted

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by the speaker of the house or the president of the senate, for an initial term of three (3) years.

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The governor shall make his or her appointments within sixty (60) days of passage of this act.

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The mayor of the city of Providence shall appoint three (3) members, each of whom shall be a

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resident of Providence, one for an initial term of three (3) years, one for an initial term of two (2)

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years and one for an initial term of one year; the mayor of the city of Cranston and the mayor of

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the town of North Providence shall each appoint one member for an initial term of one year, each

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of whom shall be a resident of Cranston or North Providence, as applicable. All appointments by

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the mayors of Providence, Cranston and North Providence shall be made within sixty (60) days of

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the passage of this act. Once wholesale customers of the authority are established, the board shall

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appoint one member for a three (3) year term who shall be a representative of such wholesale

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customers. In the event that the city of Pawtucket and/or the city of Woonsocket enter into a

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transaction with the authority pursuant to which all or substantially all of the assets of the water

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system, but not a transaction pursuant to a water supply service agreement limited to the

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wholesale purchase or sale of water, of the city of Woonsocket or Pawtucket, as applicable, are

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sold, leased, conveyed or assigned to the authority, the number of board members shall be

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increased to ten (10) members or eleven (11) members, as applicable, and such additional

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member or members shall be appointed to the board for a three (3) year term by the mayor of

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Woonsocket or Pawtucket, as applicable, and each such additional member shall be a resident of

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Woonsocket or Pawtucket, as applicable. In such event, notwithstanding subsection (c) below, six

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(6) members of the board shall constitute a quorum.

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     (b) After the initial term, appointments to the board shall be for three (3) years, and board

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members may serve a maximum of two (2) consecutive three (3) year terms, except that no

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member may exceed a total of eight (8) consecutive years service on the board. Any vacancy on

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the board shall be filled by the governor, the applicable mayor or by the board with respect to the

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wholesale customer representative in the same manner prescribed for the original appointments

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including those seats by recommendation of the speaker of the house or president of the senate

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being selected from a similar prepared list from those parties. A member appointed to fill a

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vacancy in the board shall be appointed for the unexpired portion of the term of office of the

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member whose vacancy is to be filled. A member shall hold office until his or her successor has

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been duly appointed and qualified; provided, however, that a majority of the board may remove a

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member for willful misconduct or failure to attend a majority of the full board meetings each

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year. Each member of the board shall take an oath to administer the duties of his or her office

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faithfully and impartially, and the oath shall be filed in the office of the secretary of state.

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     (c) Subject to subsection (a) above, five (5) members of the board shall constitute a

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quorum. No vacancy in the membership of the board shall impair the right of a quorum to

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exercise all the rights and perform all the duties of the board.

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     (d) In the month of January of each year, the board shall make an annual report to the city

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and town councils of all communities served at retail by the authority of its activities for the

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preceding fiscal year. Each report shall set forth a complete operating and financial statement

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covering its operations during the fiscal year. The board shall cause an annual audit of the books,

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records, and accounts of the authority to be made.

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     46-32-7. Officers and employees of board. -- The chairperson of the board shall be

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selected by the majority vote of the members of the board. The chairperson of the board shall

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appoint one member of the board to serve as vice chairperson, who shall serve at the pleasure of

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the chairperson. The board shall appoint by majority vote the treasurer who shall be a member of

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the board. The board shall also appoint by majority vote a secretary who may or may not be a

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member of the board, and may from time to time hire, transfer or otherwise appoint or employ

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other officers, legal counsel, financial advisors and such other experts, engineers, agents,

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accountants, clerks, and other consultants and employees as it deems necessary and determine

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their duties and shall fix their compensation. In the event of a vacancy occurring in the office of

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chairperson, treasurer or secretary by reason of the death, resignation, or removal for willful

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misconduct of the chairperson, treasurer or secretary, the board shall appoint a new chairperson,

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treasurer or secretary, as applicable. The chairperson of the authority shall appoint the executive

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director or general manager of the authority with the approval of the board, provided that the

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position of the executive director or general manager must be advertised and the appointment

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must be approved at a public meeting of the board. Notwithstanding the preceding sentence, in

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the event that the initial transaction entered into by the authority is consummated with the city of

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Providence and the Providence water supply board, the initial executive director or general

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manager of the authority shall be the then general manager of the Providence water supply board

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to ensure continuity of management and for such period of time as the board may determine in its

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discretion. The board may provide, subject to section 46-32-32, in the fixing of compensation, for

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a retirement program, commonly known as a pension plan, funded by individual or group

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insurance or annuity contracts or otherwise, for health and accident insurance, for life insurance,

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for hospital services, and for physicians services for any one or more or all of its employees; and

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the board is hereby authorized to expend the moneys of the authority for such purposes and

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programs as it may deem advisable. These programs and purposes may be financed in full or in

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part by the moneys of the authority.

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     46-32-8. Compensation of members and agents. -- The members of the board shall

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receive no compensation for the performance of their duties, but shall be entitled to

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reimbursement for actual and necessary expenses incurred in the performance of official duties.

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The salaries, compensation, and expenses of all members, officers, employees, and agents shall

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be paid solely out of the funds of the authority. No part of the earnings of the authority shall inure

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to the benefit of any private person.

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     46-32-9. Business prohibited to members. -- No member of the board shall directly or

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indirectly engage in any contract or agreement for labor or for the supply of materials for

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construction or reconstruction of the physical assets of the authority or replacements or additions

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thereto.

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     46-32-10. Powers of authority. -- The authority shall have all the rights and powers

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necessary or convenient to carry out and effectuate this chapter, including, but without limiting

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the generality of the foregoing, the rights and powers:

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     (1) To acquire, within or outside of the state, by voluntary purchase, lease, lease-

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purchase, sale and leaseback, gift or devise, any existing water system, any water or water rights

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and any other property, real, personal, or mixed, tangible or intangible, or interest therein, from

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the owner or owners thereof; and if the authority deems it advisable, to acquire any of the

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properties through the purchase of stock and obligations of a corporation owning the property and

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the dissolution of the corporation. The owner or owners of any property which the authority is

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herein authorized to acquire are hereby authorized to sell, lease, or otherwise transfer the same to

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the authority, and in the case of a sale, lease, or other transfer of property pursuant to this

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provision, it shall be lawful to dissolve the corporation, any other provision of law to the contrary

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notwithstanding.

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     (2) To own and operate, construct, maintain, repair, improve, enlarge, and extend, in

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accordance with the provisions of this chapter, any property acquired hereunder, all of which,

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together with the acquisition of the property, are hereby declared to be public purposes.

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     (3) To produce, distribute, and sell water.

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     (4) To sue and be sued and to prosecute and defend actions relating to its properties and

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affairs; provided that only property of the authority other than revenues pledged to the payment of

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bonds and notes shall be subject to attachment or levied upon execution or otherwise.

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     (5) To adopt and alter a corporate seal.

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     (6) To maintain an office at such place or places as it may determine.

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     (7) To hold, use, lease, sell, transfer and dispose of any property, real, personal, or mixed,

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tangible or intangible, or interest therein for its corporate purposes, and to mortgage, pledge, or

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lease any such property; provided, however, that in the case of any sale or proposed sale of any

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real property hereunder, which is not otherwise governed by contracts, including, but not limited

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to, any lease or purchase and sale agreement, the authority shall first grant to the city or town in

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which the real property, or any part thereof, is situated the right to purchase the real property, or

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portion thereof situated within its boundaries, upon the same terms and conditions as the authority

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offers or proposes to offer or has conditionally agreed to sell to any other prospective purchaser.

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     (8) Mortgage, exchange, transfer or otherwise dispose of, or to grant options for any such

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purposes with respect to, any water, water rights, and any other property, real or personal,

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tangible or intangible, or any interest therein.

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     (9) To make bylaws for the management and regulation of its affairs, to promulgate rules,

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regulations and procedures in connection with the performance of its functions and duties and to

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fix, enforce and collect penalties for the violation thereof, and such bylaws may contain

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provisions indemnifying any person who is or was a board member, officer, employee or agent of

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the authority in the manner and to the extent provided in the Rhode Island Business Corporation

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Act, Title 7, Chapter 1.1.

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     (10) To borrow money for any of its corporate purposes, including the creation and

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maintenance of working capital, and to issue negotiable bonds, notes, or other obligations and to

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fund or refund the same.

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     (11) To pledge or assign any money, fees, charges, or other revenues of the authority and

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any proceeds derived by the authority from the sale of property, insurance or condemnation

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awards.

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      (12) To lend money for its purposes, invest and reinvest its funds and at its option to take

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and hold real and personal property as security for the funds so loaned or invested.

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     (13) To establish rates and collect charges for the use of the facilities of or services

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rendered by or any commodities furnished by the authority, such as to provide revenues sufficient

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at all times to pay, as the same shall become due, the principal and interest on the bonds of the

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authority, together with the maintenance of proper reserves therefor, in addition to paying, as the

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same shall become due, all expenses of operating and maintaining the properties of the authority,

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together with proper reserves for depreciation, maintenance, and contingencies and all other

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obligations and indebtedness of the authority. The authority shall charge any city, county, or town

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for the use of any facility of or service rendered by or any commodities furnished to it by the

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authority at rates applicable to other users taking similar service.

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     (14) To contract in its own name for any lawful purpose which would effectuate the

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provisions of this chapter for such term of years as is necessary to carry out the purpose of the

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contract and which term shall not be limited to the term of board members set forth in section 46-

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32-6; to execute all instruments necessary to carry out the purposes of this chapter; and to do all

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things necessary or convenient to carry out the powers expressly granted by this chapter;

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provided, however, that the full faith, credit, and taxing power of the state or of any city, county,

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town, or other political subdivision shall never be pledged, nor shall any bond, note, or other

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evidence of indebtedness of the authority constitute the obligation of the state or of any city,

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county, town, or other political subdivision, but shall be solely the obligation of the authority. It is

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the intention of the legislature that any property acquired by the authority pursuant to the

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provisions of this chapter shall be financed as a self-liquidating enterprise, and that any

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indebtedness incurred by the authority shall be payable solely from the earnings or revenues

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derived from all or part of the property acquired by the authority.

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     (15) To enter into cooperative agreements or water supply service agreements with cities,

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counties, towns, or water companies within or without the state for the interconnection of

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facilities, to provide for the joint operation of water supply activities, to provide for the wholesale

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purchase or sale of water or for any other lawful corporate purposes necessary or desirable to

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effect the purposes of this chapter.

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     (16) To apply for, receive, accept, administer, expend and comply with the conditions,

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obligations and requirements respecting any grant, gift, loan, including, without limitation any

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grant, gift or loan from agencies of local, state and federal governments, donation or

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appropriation of any property or money in aid of the purposes of the authority and to accept

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contributions of money, property, labor or other things of value.

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     (17) To enter onto any land to make surveys, borings, soundings and examinations

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thereon, provided that said authority shall make reimbursements for any injury or actual damage

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resulting to such lands and premises caused by any act of its authorized agents or employees and

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shall so far as possible restore the land to the same condition as prior to making of such surveys,

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borings, soundings and examinations; and to acquire by eminent domain any interest in real

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property in the name of the authority in accordance with the provisions of this chapter with the

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consent of the city or town council of the municipality wherein the property lies. The authority is

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not authorized to acquire any existing water system without the agreement of such water system.

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     (18) Without limiting the generality of the preceding, the authority is expressly

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empowered to lease or sell any property to a state public body. Any lease by the authority to the

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state public body may be for a period, upon terms and conditions, with or without an option to

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purchase, that the authority may determine.

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     (19) The provisions of any charter, other laws or ordinances, general, special, or local, or

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of any rule or regulation of and state public body, restricting or regulating in any manner the

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power of any state public body to lease (as lessee or lessor) or sell property, real, personal, or

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mixed, shall not apply to leases and sales made with the authority pursuant to this chapter.

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     (20) Any municipality, notwithstanding any contrary provision of any charter, other laws

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or ordinances, general, special or local (including, but not limited to, Chapter 30 of Title 46), or

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of any rule or regulations of the state or any municipality, is authorized and empowered to lease,

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lend, pledge, grant, or convey to the authority, at its request, upon terms and conditions that the

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chief executive officer of the municipality has negotiated with the authority, with the approval of

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the city or town council of the municipality and, if applicable, the approval of any municipal

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water authority, board or commission, or where no chief executive officer exists, upon the terms

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and conditions that the city or town council has negotiated with the authority, with the approval

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of the city or town council of the municipality and, if applicable, the approval of any municipal

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water authority, board or commission, may deem reasonable and fair and without the necessity

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for any advertisement, order of court, or other action or formality, any real property or personal

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property which may be necessary or convenient to the effectuation of the authorized purpose of

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the authority, including public roads and other real property already devoted to public use; and,

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subject to what has been stated, the municipality consents to the use of all lands owned by the

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municipality which are deemed by the authority to be necessary for the construction or operation

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of any project.

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     (21) The authority is authorized and empowered to contract for the acquisition of any of

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its projects or portions of them by the federal government; and to contract with any state, federal,

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or municipal agencies for the performance of any services essential or convenient to its purposes

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under this chapter.

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     46-32-11. Rate determinations. -- (a) Until otherwise established by the board pursuant

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to any purchase and sale agreement or lease agreement entered into by the authority, any existing

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rates and charges which are in effect at the time when the authority acquires properties of any

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existing water system pursuant to the provisions of section 46-32-10, shall continue in full force

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and effect.

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     (b) Subject to sections 46-32-21 and 46-32-30, the fees, rates, rents, assessments and

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other charges established by the authority pursuant to any purchase and sale agreement or lease

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agreement in accordance with subsection (a) shall be so fixed and adjusted in respect to the

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aggregate thereof so as to provide revenues, which, are at least sufficient:

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     (1) To pay the expenses of the authority as described in subsection 46-32-30(a);

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     (2) To pay the principal of, premium, if any, and interest on bonds, notes, or other

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evidences of indebtedness issued by the authority to finance the purchase price or lease payments

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required pursuant to any purchase and sale agreement or lease agreement as the same become due

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and payable;

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     (3) To create and maintain such reasonable reserves as may be reasonably required by

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any trust agreement or resolution securing such bonds and notes;

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     (4) To provide funds for paying the cost of all necessary repairs, replacements and

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renewals of the water supply system to the extent specified in such purchase and sale agreement

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or lease agreement; and

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     (5) To pay or provide for any amounts which the authority may be obligated to pay or

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provide for by law or contract including any resolution or contract with or for the benefit of the

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holders of its bonds and notes. No purchase and sale agreement or lease agreement shall

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materially alter the allocation on a percentage basis of the obligation to pay rates and charges

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which are in effect when the authority acquires properties of any existing water supply system

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between different classes of rate payers.

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     (c) After the establishment of rates and charges and issuance of any indebtedness or

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assumption of any indebtedness or lease payment obligation by the authority pursuant to

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subsections (a) and (b) above, subject to sections 46-32-21 and 46-32-30, the authority shall be

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considered a "public utility" as defined in section 39-1-2 and, shall be subject to the provisions of

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title 39 dealing with public utilities and carriers including, but not limited to, the establishment of

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any additional rates and charges and approvals for evidence of additional indebtedness.

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     (d) In order to provide for the collection and enforcement of its fees, rates, rents,

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assessments and other charges, the authority is hereby granted all the powers and privileges with

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respect to such collection and enforcement held by a city or town of liens for unpaid taxes;

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provided, however, that the authority may charge interest on delinquent payments at a rate of not

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more than eighteen percent (18%) per annum. In addition to the other enforcement powers and

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remedies provided in this chapter, if any fees, rates, rents, assessments or other charges billed by

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the authority against any premises which are connected with the water supply system remain

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unpaid for a period of more than sixty (60) days from the due date thereof, and following such

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period notice and demand have been posted on such premises and have been given to the owner

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of said premises, by mail addressed to said premises and to the address of said owner as shown on

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the records of the assessor of the municipality where the premises is located, to pay the same

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within fifteen (15) days from the date of mailing of said notice, and such fees, rates, rents,

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assessments or other charges remain unpaid, the authority shall have the power and is hereby

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authorized to shut off the supply of water to said premises until said fees, rates, rents, assessments

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or other charges and penalties are paid, together with interest thereon at the applicable rate and

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the standard charge of the authority for restoring water service to said premises.

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     46-32-12. Condemnation power. -- (a) If for any of the purposes of this chapter, the

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board shall find it necessary to acquire any real property, whether for immediate or future use, the

10-64

board may find and determine that such property, whether a fee simple absolute or a lesser

10-65

interest, is required for the acquisition, construction, operation or watershed of a water supply

10-66

system, and upon such determination, the said property shall be deemed to be required for such

10-67

public use until otherwise determined by the board; and with the exceptions hereinafter

10-68

specifically noted, the said determination shall not be affected by the fact that such property has

11-1

theretofore been taken for, or is then devoted to, a public use; provided further, however, that no

11-2

real property or interest, estate or right therein belonging to the state shall be acquired without

11-3

consent of the state; and no real property or interest, estate or right therein belonging to any

11-4

municipality shall be acquired without the consent of such municipality.

11-5

     (b) The board may proceed to acquire and is hereby authorized to and may proceed to

11-6

acquire such property, whether a fee simple absolute or a lesser interest, by the exercise of the

11-7

right of eminent domain in the manner prescribed in this chapter.

11-8

     (c) The necessity for the acquisition of property under this chapter shall he conclusively

11-9

presumed upon the adoption of a vote by the board and a vote of the city or town council of the

11-10

municipality in which such properly is located determining that the acquisition of such property

11-11

or any interest therein described in such vote is necessary for the acquisition, construction,

11-12

operation or watershed of a water supply system. Within six (6) months after the passage of the

11-13

vote of the city or town council, the board shall cause to be filed in the appropriate land evidence

11-14

records a copy of the two (2) votes together with a statement signed by the chairperson of the

11-15

authority that such property is taken pursuant to this chapter, and also a description of such real

11-16

property indicating the nature and extent of the estate or interest therein taken as aforesaid and a

11-17

plat thereof which copies of the votes and statement of the chairperson shall be certified by the

11-18

secretary of the authority and the description and plat shall be certified by the town clerk for the

11-19

town within which the real property lies.

11-20

     (d) Forthwith thereafter the board shall cause to be filed in the superior court in and for

11-21

the county within which the real property lies a statement of the sum of money estimated to be

11-22

just compensation for the property taken, and shall deposit in said superior court for the use of the

11-23

persons entitled thereto the sum set forth in such statement. The board shall satisfy the court that

11-24

the amount so deposited with the court is sufficient to satisfy the just claims of all persons having

11-25

an estate or interest in such real property. Whenever the board satisfies the court that the claims of

11-26

all persons interested in the real property taken have been satisfied, the unexpended balance shall

11-27

be ordered repaid forthwith to the authority.

11-28

     (e) Upon the filing of the copy of the votes, statement, description and plat in the land

11-29

evidence records and upon the making of the deposit in accordance with the order of the superior

11-30

court, title to said real property in fee simple absolute or such lesser estate or interest therein

11-31

specified in said resolution shall vest in the authority, and said real property shall be deemed to be

11-32

condemned and taken for the use of the authority and the right to just compensation for the same

11-33

shall vest in the persons entitled thereto, and the authority thereupon may take possession of said

11-34

real property. No sum so paid into the court shall be charged with clerks' fees of any nature.

12-1

     (f) After the filing of the copy of the votes, statement, description and plat, notice of the

12-2

taking of such land or other real property shall be served upon the owners or persons having any

12-3

estate or interest in such real property by the sheriff or sheriff's deputies of the county in which

12-4

the real estate is situated by leaving a true and attested copy of the votes, statement, description

12-5

and plat with each of such persons personally, or at the last and usual place of abode in this state

12-6

with some person living there, and in case of any such persons are absent, from this state and

12-7

have no last and usual place of abode therein occupied by any person, such copy shall be left with

12-8

the person or persons, if any, in charge of, or having possession of such real property taken of

12-9

such absent persons, and another copy thereof shall be mailed to the address of such person, if the

12-10

same is known to the officer serving such notice.

12-11

     (g) After the filing of such votes, description and plat, the board shall cause a copy of the

12-12

votes and description to be published in some newspaper having general circulation in the town in

12-13

which the real property lies at least once a week for three (3) successive weeks.

12-14

     (h) If any party shall agree with the board upon the price to be paid for the value of the

12-15

real property so taken and of appurtenant damage to any remainder or for the value of his or her

12-16

estate, right or interest therein, the court, upon application of the parties in interest, may order that

12-17

the sum agreed upon be paid forthwith from the money deposited, as the just compensation to be

12-18

awarded in said proceedings.

12-19

     (i) Any owner of, or person entitled to any estate or right in, or interested in any part of

12-20

the real property so taken, who cannot agree with the board upon the price to he paid for his or

12-21

her estate, right or interest in such real property so taken and the appurtenant damage to the

12-22

remainder, may, within three (3) months after personal notice of said taking, or if he/she has no

12-23

personal notice, may within one year from the time the sum of money estimated to be just

12-24

compensation is deposited in the superior court to the use of the persons entitled thereto, apply by

12-25

petition to the superior court for the county in which said real property is situated, setting forth

12-26

the taking of his/her land or his estate or interest therein and paying for an assessment or damages

12-27

by the court or by a jury. Upon the filing of such petition the court shall cause twenty (20) days'

12-28

notice of the pendency thereof to be given to the authority by serving the chairperson of the

12-29

authority with a certified copy thereof.

12-30

     (j) After the service of such notice the court may proceed to the trial thereof. Such trial

12-31

shall be conducted as other civil actions at law are tried. Such trial shall determine all questions of

12-32

fact relating to the value of such real property, and any estate or interest therein, and the amount

12-33

thereof and the appurtenant damage to any remainder and the amount thereof, and such trial and

12-34

decision or verdict of the court or jury shall be subject to all rights to except to rulings, to move

13-1

for new trial, and to appeal, as are provided by law. Upon the entry of judgment in such

13-2

proceedings execution shall be issued against the money so deposited in court and in default

13-3

thereof against any other property of the authority.

13-4

     (k) If any real property or any estate or interest therein, in which any infant or other

13-5

person not capable in law to act in his/her own behalf is interested, is taken under the provisions

13-6

of this chapter, said superior court, upon the filing therein of a petition by or in behalf of such

13-7

infant or person or by the board may appoint a guardian ad litem for such infant or other person.

13-8

Guardians may, with the advice and consent of said superior court, and upon such terms as said

13-9

superior court may prescribe, release to the authority all claims for damages for the land of such

13-10

infant or other person or for any such estate or interest therein. Any lawfully appointed, qualified

13-11

and acting guardian or other fiduciary of the estate of any such infant or other person, with the

13-12

approval of the court of probate within this state having jurisdiction to authorize the sale of lands

13-13

and properties within this state of such infant or other person, may before the filing of any such

13-14

petition, agree with such infant or other person for any taking of his/her real property or of his/her

13-15

interest or estate therein, and may upon receiving such amount, release to the authority all claims

13-16

for damages for such infant or other person for such taking.

13-17

     (l) In case any owner of or any person having an estate or interest in such real property

13-18

shall fail to file his/her petition as above provided, the superior court for the county in which the

13-19

real property is situated, in its discretion, may permit the filing of such petition within one year

13-20

subsequent to the year following the time of the deposit in the superior court of the sum of money

13-21

estimated to be just compensation for the property taken; provided, such person shall have had no

13-22

actual knowledge of the taking of such land in season to file such petition; and provided, no other

13-23

person or persons claiming to own such real property or estate or interest therein shall have been

13-24

paid the value thereof; and provided, no judgment has been rendered against the authority for the

13-25

payment of such value to any other person or persons claiming to own such real estate.

13-26

     (m) If any real property or any estate or interest therein is unclaimed or held by a person

13-27

or persons whose whereabouts are unknown, after making inquiry satisfactory to the superior

13-28

court for the county in which the real property lies, the board, after the expiration of two (2) years

13-29

from the first publication of the copy of the votes, statement and description, may petition such

13-30

court that the value of the estate or interest or such unknown person or persons be determined.

13-31

After such notice by publication to such person or persons as the court in its discretion may order,

13-32

and after hearing on said petition, the court shall fix the value of said estate or interest and shall

13-33

order said sum to be deposited in the registry of such court in a special account to accumulate for

13-34

the benefit of the person or persons, if any, entitled thereto. The receipt of the clerk of the

14-1

superior court therefor shall constitute a discharge of the authority from all liability in connection

14-2

with such taking.

14-3

     (n) The superior court shall have power to make such orders with respect to

14-4

encumbrances, liens, taxes and other charges on the land, if any, as shall be just and equitable.

14-5

     (o) Whenever in the opinion of the board a substantial saving in the cost of acquiring title

14-6

can be effected by conveying other real property, title to which is in the authority, to the person or

14-7

persons from whom the estate or interest in real property is being purchased or taken, or by the

14-8

construction or improvement by the authority of any work or facility upon the remaining real

14-9

property of the person or persons from whom the estate or interest in real property is being

14-10

purchased or taken, the board shall be and hereby is authorized to convey such other real property

14-11

to the person or persons from whom the estate or interest in real property is being purchased or

14-12

taken and to construct or improve any work or facility upon the remaining land of such person or

14-13

persons.

14-14

     46-32-13. Issuance of bonds and notes. -- For the purpose of raising money to carry out

14-15

the provisions of this chapter, the authority is authorized and empowered to issue bonds and notes

14-16

in anticipation of bonds. Such bonds and notes shall be issued hereunder as special obligations

14-17

payable solely from revenues. Without limiting the generality of the foregoing, such bonds and

14-18

notes may be issued to pay or refund notes issued in anticipation of the issuance of bonds, to pay

14-19

the cost of any acquisition, construction, extension, enlargement, or improvement of the water

14-20

supply system, to pay expenses of issuance of the bonds and the notes, to provide such reserves

14-21

for debt service, repairs and replacements or other costs or current expenses as may be required

14-22

by a trust agreement or resolution securing bonds or notes of the authority, or for any

14-23

combination of the foregoing purposes. The bonds of each issue shall be dated, bear interest at a

14-24

rate or rates, and mature at a time or times not exceeding forty (40) years from their dates of

14-25

issue, as maybe determined by the officers of the authority, and may be made redeemable before

14-26

maturity at a price or prices and under terms and conditions that may be fixed by the officers of

14-27

the authority prior to the issue of the bonds. The officers of the authority shall determine the form

14-28

of the bonds and notes, including interest coupons, if any, to be attached to them, and the manner

14-29

of their execution, and shall fix the denomination or denominations of the bonds and notes and

14-30

the place or places of payment of the principal and interest, which may be at any bank or trust

14-31

company within or without the state. The bonds shall bear the seal of the authority or a facsimile

14-32

of the seal. In case any officer whose signature or a facsimile of whose signature shall appear on

14-33

any notes, bonds or coupons shall cease to be such officer before the delivery thereof, such

14-34

signature or such facsimile shall nevertheless be valid and sufficient for all purposes as if he/she

15-1

had remained in office until after such delivery. The authority may also provide for authentication

15-2

of bonds or notes by a trustee or fiscal agent. Bonds shall be issued in registered form, and, if

15-3

notes, may be made payable to bearer or to order, as the authority may determine, and provision

15-4

may be made for the registration of any coupon bonds as to principal alone and also as to both

15-5

principal and interest, for the reconversion into coupon bonds of bonds registered as to both

15-6

principal and interest and for the interchange of bonds registered as to both principal and interest.

15-7

The issue of notes shall be governed by the provisions of this chapter relating to the issue of

15-8

bonds in anticipation of bonds as the same may be applicable. Notes issued in anticipation of the

15-9

issuance of bonds including any renewals, shall mature no later than five (5) years from the date

15-10

of the original issue of such notes. The authority may by resolution delegate to any member of the

15-11

board or any combination of them the power to determine any of the matters set forth in this

15-12

section including the power to award such bonds or notes to a purchaser or purchasers at public

15-13

sale. The authority may sell its bonds and notes in such manner, either at public or private sale,

15-14

for such price, at such rate or rates of interest, or at such discount in lieu of interest, as it may

15-15

determine will best effect the purposes of this chapter.

15-16

     46-32-14. Issuance of notes in anticipation of revenue or receipt of grants or other

15-17

aid. -- The authority may also provide by resolution for the issuance from time to time of

15-18

temporary notes in anticipation of the revenues to be collected or received by the authority in any

15-19

year, or in anticipation of the receipt of federal, state or local grants or other aid. Notes issued in

15-20

anticipation of revenues, including any renewals thereof shall mature no later than one year from

15-21

their respective dates, and issued in anticipation of federal, state or local grants or other aid

15-22

including any renewals thereof shall mature no later than three (3) years from their respective

15-23

dates. The issue of such notes shall be governed by the provisions of this chapter relating to the

15-24

issue of bonds or other notes as the same may be applicable.

15-25

     46-32-15. Payment of bonds and notes. -- The principal of, premium, if any, and

15-26

interest on all bonds and notes issued under the provisions of this chapter, unless otherwise

15-27

provided herein, shall be payable solely from the funds provided therefor from revenues as herein

15-28

provided.

15-29

     In the discretion of the board, any bonds and notes issued hereunder may be secured by a

15-30

resolution of the board or by a trust agreement between the authority and a corporate trustee,

15-31

which may be any trust company or bank having the powers of a trust company within or without

15-32

the state, and such trust agreement shall be in such form and executed in such manner as may be

15-33

determined by the authority. Such trust agreement or resolution may pledge or assign, in whole or

15-34

in part, the revenues and other moneys held or to be received by the authority, including the

16-1

revenues from any facilities already existing when the pledge or assignment is made, and any

16-2

contract or other rights to receive the same, whether then existing or thereafter coming into

16-3

existence and whether then held or thereafter acquired by the authority, and the proceeds thereof.

16-4

In the discretion of the board any bonds or notes issued under authority of this chapter, may be

16-5

issued by the authority in the form of lines of credit, loans, or other banking arrangements and

16-6

under such terms and conditions, not inconsistent with this chapter, and under such agreements

16-7

with the purchasers or makers thereof, as the board may determine to be in the best interest of the

16-8

authority. Notwithstanding anything to the contrary in section 39-16-8, in addition to other

16-9

security provided herein or otherwise by law, bonds or notes issued by the authority under any

16-10

provision of this chapter may be secured, in whole or in part, by insurance or letters or lines of

16-11

credit or other credit facilities, and the authority may pledge or assign any of its revenues as

16-12

security for the reimbursement by the authority to the issuers of such insurance, letters or lines of

16-13

credit or other credit facilities of any payments made under the insurance or letters or lines of

16-14

credit or other credit facilities.

16-15

     It shall be lawful for any bank or trust company to act as a depository or trustee of the

16-16

proceeds of bonds, notes, revenues or other moneys under any such trust agreement or resolution

16-17

and to furnish such indemnification or to pledge such securities and issue such letters of credit as

16-18

may be required by the authority. Any pledge of revenues or other property made by the authority

16-19

under this chapter shall be valid and binding and shall be deemed continuously perfected from the

16-20

time when the pledge is made; the revenues, moneys, rights and proceeds so pledged and then

16-21

held or thereafter acquired or received by the authority shall immediately be subject to the lien of

16-22

such pledge without any physical delivery or segregation thereof or further act; and the lien of

16-23

any such pledge shall be valid and binding against all parties having claims of any kind in tort,

16-24

contract or otherwise against the authority, irrespective of whether such parties have notice

16-25

thereof. Neither the resolution, any trust agreement nor any other agreement by which a pledge is

16-26

created need be filed or recorded except in the records of the authority.

16-27

     Any holder of a bond or note issued by the authority under the provisions of this chapter

16-28

or of any of the coupons appertaining thereto and any trustee under a trust agreement or

16-29

resolution securing the same, except to the extent the rights herein given may be restricted by

16-30

such trust agreement or resolution securing the same, may bring suit upon the bonds or notes or

16-31

coupons and may, either at law or in equity, by suit, action, mandamus, or other proceedings for

16-32

legal or equitable relief, including proceedings for the appointment of a receiver to take

16-33

possession and control of the business and properties of the authority, to operate and maintain the

16-34

same, to make any necessary repairs, renewals and replacements in respect thereof and to fix,

17-1

revise and collect fees and charges, protect and enforce any and all rights under such trust

17-2

agreement, resolution or other agreement, and may enforce and compel the performance of all

17-3

duties required by this chapter or by such trust agreement or resolution to be performed by the

17-4

authority or by any officer thereof.

17-5

     46-32-16. Refunding bonds and notes. -- The authority may issue refunding bonds and

17-6

notes for the purpose of paying any of its bonds or notes at maturity or redemption. Refunding

17-7

bonds and notes may be issued at such time prior to the maturity or redemption of the refunded

17-8

bonds or notes as the authority deems to be in the public interest. Refunding bonds and notes may

17-9

be issued in sufficient amounts to pay or provide the principal of the bonds or notes being

17-10

refunded, together with any redemption premium thereon, any interest accrued or to accrue to the

17-11

date of payment of such bonds or notes, the expenses of issue of refunding bonds or notes, the

17-12

expenses of redeeming bonds or notes being refunded and such reserves for debt service or other

17-13

capital or current expenses from the proceeds of such refunding bonds or notes as may be

17-14

required by a trust agreement or resolution securing bonds or notes. The issue of refunding bonds

17-15

or notes, the maturities and other details thereof, the security therefor, the rights of the holders

17-16

thereof, and the rights, duties and obligations of the authority in respect of the same shall be

17-17

governed by the provisions of this chapter relating to the issue of bonds or notes other than

17-18

refunding bonds or notes insofar as the same may be applicable.

17-19

     46-32-17. Defeasance of bonds or notes. -- The authority may at any time deposit with a

17-20

trustee, a sum sufficient, with amounts then on deposit, including the debt service reserve fund, to

17-21

purchase direct or guaranteed obligations of the United States of America which are adequate to

17-22

pay the entire principal amount of the bonds or notes of a series, together with the interest to

17-23

maturity, or to an applicable redemption date specified by the authority to the trustee and any

17-24

applicable redemption premium; or the authority may deposit direct or guaranteed obligations of

17-25

the United States of America in lieu of money for their purchase. The obligations are deemed

17-26

adequate if the principal and interest payable on them are sufficient to pay the previously

17-27

mentioned sums when due. Upon any deposit of money and a request by the authority, the trustee

17-28

shall purchase direct or guaranteed obligations of the United States of America. When adequate

17-29

direct or guaranteed obligations of the United States of America are held by the trustee pursuant

17-30

to this section, the bond resolution or indenture shall cease to be in effect with respect to such

17-31

series of bonds or notes. The obligations and their proceeds shall be held in trust for the benefit of

17-32

the bondholders or noteholders, and the trustee shall, on behalf of the authority, call bonds or

17-33

notes for redemption on the applicable redemption date. Any compensation or expenses of the

17-34

trustee in carrying out this section shall be paid by the authority, and any surplus funds held by

18-1

the trustee under this section shall be remitted by the trustee to the authority.

18-2

     46-32-18. Covenants permissible in trust agreement or bond resolution. -- Any trust

18-3

agreement or resolution authorizing any bonds or any issue of bonds may contain provisions

18-4

which shall be a part of the contract with the holders of the bonds thereby authorized, as to:

18-5

     (1) Pledging all or any part of the money, earnings, income, and revenues derived from

18-6

all or any part of the property of the authority to secure the payment of any bonds or of any issue

18-7

of bonds subject to such agreements with bondholders as may then exist;

18-8

     (2) The rates to be fixed and the charges to be collected and the amounts to be raised in

18-9

each year, and the use and disposition of the earnings and other revenues;

18-10

     (3) The setting aside of reserves and the creation of sinking funds and the regulation and

18-11

disposition thereof;

18-12

     (4) Limitations on the right of the authority to restrict and regulate the use of the

18-13

properties in connection with which the bonds are issued;

18-14

     (5) Limitations on the purposes to which the proceeds of sale of any issue of bonds may

18-15

be applied;

18-16

     (6) Limitations on the issuance of additional bonds, including refunding bonds and the

18-17

terms upon which additional bonds may be issued and secured;

18-18

     (7) The procedure, if any, by which the terms of any contract with bondholders may be

18-19

amended or abrogated, the amount of bonds the holders of which must consent thereto, and the

18-20

manner in which consent may be given;

18-21

     (8) The creation of special funds into which any earnings or revenues of the authority

18-22

may be deposited, and the investment of the funds;

18-23

     (9) The appointment of a fiscal agent and the determination of its powers and duties;

18-24

     (10) Limitations on the power of the authority to sell, lease or otherwise dispose of its

18-25

properties;

18-26

     (11) The preparation of annual budgets by the authority and the employment of

18-27

consulting engineers and auditors;

18-28

     (12) The rights and remedies of bondholders in the event of failure on the part of the

18-29

authority to perform any agreement;

18-30

     (13) Covenanting that as long as any bonds are outstanding the authority shall establish

18-31

and maintain its rates and charges adequate at all times to pay and provide for all operating

18-32

expenses of the authority, all payments of principal, redemption premium, if any, and interest on

18-33

bonds, notes or other evidences of indebtedness of or assumed by the authority, all renewals,

18-34

repairs, or replacements to the property of the authority deemed necessary, and all other amounts

19-1

which the authority may by law, resolution or contract be obligated to pay. On or before the last

19-2

day of the authority's fiscal year, the authority shall review the adequacy of its rates and charges

19-3

to satisfy the above requirements for the next succeeding fiscal year. If the review indicates that

19-4

the rates and charges are, or are likely to be, insufficient to meet the requirements of this chapter,

19-5

the authority shall promptly take such steps as are necessary to cure or avoid the deficiency,

19-6

including, but not limited to, making an emergency request to raise its rates and charges;

19-7

     (14) Any other matters, of like or different character which in any way affect the security

19-8

or protection of the bonds.

19-9

     46-32-19. Credit of state and municipalities not pledged. -- Bonds, notes and other

19-10

evidences of indebtedness issued or entered into under the provisions of this chapter shall not be

19-11

deemed to be a debt or a pledge of the faith and credit of the state or of any city or town, but shall

19-12

be payable solely from the revenues of the authority. All bonds, notes and other evidences of

19-13

indebtedness, shall contain on the face thereof a statement to the effect that neither the state nor

19-14

any city or town shall be obligated to pay the same and that neither the faith and credit nor the

19-15

taxing power of the state or of any city or town is pledged to the payment of the principal of or

19-16

interest on such bonds or notes. Each bond or note shall also recite that it is a special obligation of

19-17

the authority payable solely from particular funds pledged to its payment.

19-18

     46-32-20. Money received deemed to be trust funds. -- All moneys received pursuant

19-19

to the provisions of this chapter, whether as proceeds from the issue of bonds or notes or as

19-20

revenues or otherwise, shall be deemed to be trust funds to be held and applied solely as provided

19-21

in this chapter.

19-22

     46-32-21. Bonds and notes issued without consent of other entities. -- Bonds and notes

19-23

may be issued under this chapter to finance the payment of any purchase or lease payment(s) by

19-24

the authority or payment of any other expense specified in subsection 46-32-11(b) or to fund any

19-25

reserve specified in subsection 46-32-11(b) pursuant to any purchase and sale agreement or lease

19-26

agreement without obtaining the consent of any department, division, commission, board, bureau

19-27

or agency of the state or any municipality, including the public utilities commission and the

19-28

division of public utilities and carriers pursuant to Chapters 1-5 of Title 39 of the general laws,

19-29

and without any other proceedings or the happening of any other conditions or things than those

19-30

proceedings, conditions or things which are specifically required therefor by this chapter, and the

19-31

validity of and security for any bonds and notes issued by the authority shall not be affected by

19-32

the existence or nonexistence of any such consent or other proceedings, conditions or things.

19-33

     46-32-22. Tax exemption. -- The authority shall not be required to pay taxes of any kind

19-34

or description, or any excise or special assessments or sums in lieu of taxes, except as provided in

20-1

section 46-32-23, to the state or any political subdivision thereof upon any of the property

20-2

acquired by it or under its jurisdiction, control, possession, or supervision or upon its activities in

20-3

the operation and maintenance of the property or upon any earnings, revenues, moneys, or other

20-4

income derived by the authority. Bonds and notes issued by the authority and their transfer and

20-5

the income therefrom, including any profit made on the sale or exchange thereof, shall at all times

20-6

be exempt from taxation by the state and all political subdivisions of the state. The authority shall

20-7

not be required to pay any transfer tax of any kind on account of instruments recorded by it or on

20-8

its behalf.

20-9

     46-32-23. Payments in lieu of taxes. -- Any and all tax agreements in force on the

20-10

effective date of the enactment of this law shall remain in full force and effect until the expiration

20-11

of such agreements, and any option to extend or renew. In any community in which no tax

20-12

agreement is in effect on the effective date of the enactment of this act, the authority shall pay

20-13

annually, having first made provision for the payment of principal and interest on any bonds

20-14

outstanding and any other charges payable from revenues due in such year as may be provided in

20-15

the resolution or resolutions authorizing any bonds, in lieu of any property tax, as a charge upon

20-16

its earnings or revenues, to each city or town in which no tax agreement is in effect on the date of

20-17

passage of this act, a sum equal in amount to the property tax lawfully levied on the property of

20-18

the authority by or on behalf of the city or town during the year preceding the acquisition of such

20-19

property by the authority, or if the city or town was not levying taxes on the properties acquired

20-20

by the authority during the year preceding the acquisition, the amount of the payments shall be

20-21

based on the levy established on the property in the year immediately after the transfer of

20-22

property; provided, however, that in either case, the property tax lawfully levied on the property

20-23

of the authority by or on behalf of the city or town shall be subject to property value revaluations

20-24

conducted by such city or town in accordance with chapter 5 of title 44. Pipe lines and other

20-25

water appurtenances including, but not limited to, pump stations, treatment and sub-treatment

20-26

facilities and water storage tanks, of the authority shall be fully exempt from assessment and

20-27

taxation of any kind, and they shall also be exempt from any calculation of payments in lieu of

20-28

taxes. The authority shall be entitled to the full benefits of the Farm, Forest, And Open Space

20-29

Land Act (Chapter 27 of Title 44) on any such assessment and shall be entitled to contest any

20-30

such assessment as if it were a taxpayer. The authority shall have no power to levy or collect ad

20-31

valorem property taxes.

20-32

     46-32-24. Pledge not to alter rights of authority. -- The state does hereby pledge to and

20-33

agree with the holders of the bonds, notes, and other evidences of indebtedness of the authority

20-34

that the state will not limit or alter rights hereby vested in the authority until the bonds, notes, or

21-1

other evidences of indebtedness, together with interest thereon, with interest on any unpaid

21-2

installment of interest and all costs and expenses in connection with any actions or proceedings

21-3

by or on behalf of the bondholders, are fully met and discharged.

21-4

     46-32-25. Bonds as legal investments. -- The bonds are hereby made securities in which

21-5

all public officers and bodies of this state and all municipalities and municipal subdivisions, all

21-6

insurance companies and associations and other persons carrying on an insurance business, all

21-7

banks, bankers, trust companies, savings banks, and savings associations, including savings and

21-8

loan associations, building and loan associations, investment companies and other persons

21-9

carrying on a banking business, all administrators, guardians, executors, trustees, and other

21-10

fiduciaries and all other persons, whomsoever who are now or may hereafter be authorized to

21-11

invest in bonds or other obligations of the state, may properly and legally invest funds including

21-12

capital in their control or belonging to them. The bonds are also hereby made securities which

21-13

may be deposited with and shall be received by all public officers and bodies of this state, and all

21-14

municipalities and municipal subdivisions, for any purpose for which the deposit of bonds or

21-15

other obligations of this state is now or may hereafter be authorized.

21-16

     46-32-26. Right to alter, amend or repeal chapter. -- The right to alter, amend, or

21-17

repeal this chapter is hereby expressly reserved, but no such alteration, amendment, or repeal

21-18

shall operate to impair the obligation of any contract made by the authority under any power

21-19

conferred by this chapter.

21-20

     46-32-27. Transfer on dissolution. -- If the authority shall be dissolved, title to all funds

21-21

and other properties of the authority, not required for the payment of bonds or other debts of the

21-22

authority, the disposition of which is not otherwise governed by contracts, including, but not

21-23

limited to, any lease or purchase and sale agreement, to which the authority may be party shall

21-24

vest in the municipalities wherein the properties lie, with such allocations of funds as may be

21-25

agreed by the municipalities.

21-26

     46-32-28. Additional leasing provisions. -- In the event the authority shall acquire

21-27

property by lease subject to sections 46-32-21 and 46-32-30, payments for the lease shall be as

21-28

negotiated between the board of the authority and the person or entity agreeing to lease the

21-29

property to the board. These payments may be based on such terms as may be negotiated by and

21-30

between the board of the authority and the person or entity transferring property to the authority;

21-31

provided, however, that the payments must be just and reasonable and based on an independent

21-32

appraisal or appraisals obtained by the lessor and/or the authority and such other factors as

21-33

determined by the board in its reasonable discretion. A lease agreement may include provisions to

21-34

the effect that the authority will pay to the lessor for deposit in the lessor's pension or retirement

22-1

plan, an amount equal to the amount the lessor would otherwise have paid into such pension or

22-2

retirement system for its water supply system's retirees as of the effective date of such lease

22-3

agreement as an annual payment obligation of the authority, and such payments shall be in

22-4

addition to any lease payments. The lease may be for a term up to ninety-nine (99) years, or for

22-5

such term which the board of the authority deems necessary to carry out the governmental

22-6

purpose of the lease, may be extended from time to time, and shall not be limited to the term of

22-7

board members set forth in section 46-32-6. If property is acquired by lease, then the person or

22-8

entity leasing the property to the authority shall remain the owner of the property. However, with

22-9

regard to all improvements made to the property using funds of the authority after the inception of

22-10

the lease, ownership of such improvements shall be vested in the authority.

22-11

     46-32-29. Purchase and sale provisions. -- In the event property is acquired by the

22-12

authority by purchase, payment for the property shall be as negotiated between the board of the

22-13

authority and the person or entity selling the property; provided, however, that the payment must

22-14

be just and reasonable and based upon an independent appraisal or appraisals obtained by the

22-15

seller and/or the authority and such other factors as determined by the board in its discretion. The

22-16

authority may also assume existing debt of property whether that debt be in the form of notes,

22-17

bonds, or otherwise. If property is purchased by the authority, then the authority shall become the

22-18

owner of the property upon completion of the purchase.

22-19

     46-32-30. Special provisions applicable to leasing and purchase and sale. -- (a) Each

22-20

party to a potential purchase and sale or lease agreement shall pay its own reasonably incurred

22-21

fees, costs and expenses, including, but not limited to, legal, accounting, and engineering fees. In

22-22

the event the purchase or lease is successfully consummated, then the purchase and sale or lease

22-23

agreement may provide for reimbursement to the seller or lessor and the authority of the aforesaid

22-24

fees, costs, and expenses, which may be financed to the extent permitted under applicable law. In

22-25

the event that the authority's or the seller's or lessor's costs are financed pursuant to a purchase

22-26

and sale or lease agreement, payment of such costs shall not be subject to review and approval by

22-27

the Rhode Island public utilities commission or the Rhode Island division of public utilities and

22-28

carriers.

22-29

      (b) In any purchase or lease of property, the authority is authorized to assume such debts

22-30

related to the properties being acquired or leased as the board of the authority shall deem

22-31

appropriate. Such debts may include notes, bonds, and any other outstanding debts.

22-32

     (c) Notwithstanding anything in the general laws to the contrary, and without limiting the

22-33

provisions of section 46-32-11 set forth above, neither the Rhode Island public utilities

22-34

commission nor the Rhode Island division of public utilities and carriers shall have any

23-1

jurisdiction, authority, or other power to approve, reject, review, or in any way affect any

23-2

acquisition or the terms of any purchase and sale agreement or lease agreement. Moreover,

23-3

payments to be made by the authority to the seller or to the lessor shall not be subject in any way

23-4

to the review, approval, or jurisdiction of the public utilities commission or the division of public

23-5

utilities and carriers, and the public utilities commission and the division of public utilities and

23-6

carriers shall not have jurisdiction or authority of any kind to direct, order, or require that the

23-7

purchase payments or the lease payments be made to or inure to benefit, directly or indirectly, of

23-8

the water ratepayers of the entity being acquired or leased by the authority. Furthermore, the

23-9

Rhode Island public utilities commission and the Rhode Island division of public utilities and

23-10

carriers must recognize and apply all costs, debt service payments and lease payments related to a

23-11

purchase and sale or lease agreement in its review and approval of any additional rates.

23-12

     46-32-31. Hydrant fees. -- Subject to section 39-3-11.1, the authority shall not levy a

23-13

charge against any municipality in its service area for the payment of rental fees for fire hydrants.

23-14

Subject to section 45-39-4, the rental fees for fire hydrants shall be included in the rates and

23-15

charges to the customers of the authority in the municipality in which the fire hydrants are

23-16

located.

23-17

     46-32-32. Transfer of employees. -- (a) Any employee of a city or town whose water

23-18

supply system is acquired pursuant to a purchase and sale or lease agreement shall, with the

23-19

consent of the entity by which he or she has been employed, be transferred to the authority. Each

23-20

transferred employee shall be offered continued employment with the authority in accordance

23-21

with the provisions of this section and based upon the terms of a collective bargaining agreement

23-22

in effect with the transferring entity prior to the transfer, as modified by mutual agreement of the

23-23

parties thereto. After such transfer, the salary or compensation of any employee shall be

23-24

established and paid by the authority. Any purchase and sale or lease agreement of a water supply

23-25

system shall provide, and the authority shall provide, following said acquisition by purchase or

23-26

lease, that each transferred employee shall:

23-27

     (1) Be offered employment with the authority in a position having the same or better

23-28

wages as set forth in the collective bargaining agreement with the transferring entity;

23-29

     (2) Be provided by the authority with a substantially equivalent or better package of

23-30

wages and benefits, including, but not limited to, health insurance, dental insurance, sick days,

23-31

vacation days, personal days, longevity pay, and recognition of prior years of service with the

23-32

transferring entity; and

23-33

     (3) Be provided with a substantially equivalent or better employee pension benefit plan,

23-34

provided that this requirement shall not be construed as an agreement by the authority or the

24-1

transferring entity to any specific form of pension or retirement benefit plan, and provided that

24-2

any contributions to any pension or retirement fund or system to be paid by the employer on the

24-3

account of any employee shall be paid by the authority.

24-4

     (b) The authority and the transferring entity shall in the contract for transfer of the water

24-5

supply system by sale or lease provide that the labor union local unit that participated in the

24-6

collective bargaining agreement with the transferring entity will be recognized by the authority as

24-7

the exclusive bargaining agent for the transferred employees and that the authority will ensure the

24-8

terms of employment described in subdivisions (a)(l), (2) and (3) above are included in the first

24-9

collective bargaining agreement between the authority and the labor union local representing the

24-10

employees under the provisions of the collective bargaining agreement with the transferring

24-11

entity.

24-12

     (c) The transferring entity shall negotiate and bargain with the labor union local unit

24-13

representing the employees with respect to such matters and issues under the current collective

24-14

bargaining agreement as may be necessary to assure the transfer of such employees to the

24-15

authority.

24-16

     (d) It is hereby declared that in the interest of efficiency and insofar as may be

24-17

practicable, all employees engaged in the operation of any property or properties, except in an

24-18

executive capacity, at the time such property or properties shall have been acquired by the

24-19

authority, pursuant to the provisions of this chapter, shall become the employees of the authority.

24-20

     46-32-33. Labor agreements and other contracts not impaired. -- Subject to section

24-21

46-32-32, any and all collective bargaining agreements and other contracts in force and effect at

24-22

the time of any acquisition or lease by the authority shall remain in full force and effect according

24-23

to the terms of said contracts, unless amended to the extent required pursuant to any purchase and

24-24

sale or lease agreement, at which time all future collective bargaining agreements and contracts

24-25

will be negotiated with the authority.

24-26

     46-32-34. Alteration, amendment, repeal or severability. -- The right to alter, amend

24-27

or repeal this chapter is reserved to the state, but no such alteration, amendment or repeal shall

24-28

operate to impair the obligation of any contract made by the ocean state regional water authority

24-29

under any power conferred by this chapter. If any section, clause, provision or term of this

24-30

chapter shall be declared unconstitutional, void, ultra vires or otherwise ineffective in whole or in

24-31

part, such determination of invalidity shall not otherwise affect the validity or enforceability of

24-32

any other provision of this chapter.

25-33

     SECTION 2. This act shall take effect upon passage.

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LC02424

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO WATERS AND NAVIGATION -- THE OCEAN STATE REGIONAL WATER

AUTHORITY

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26-1

     This act would establish the Ocean State Regional Water Authority.

26-2

     This act would take effect upon passage.

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LC02424

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