It is enacted by the General Assembly as follows:

SECTION 1. Title 45 of the General Laws entitled "Towns and Cities" is hereby amended by adding thereto the following chapter:

45-59-1. Short title. -- This chapter will be known and may be cited as the "District Management Authorities Act."

45-59-2. Legislative findings and purpose. -- It is found and declared that:

(a) The continued vitality of the business districts in the towns and cities of the state is essential to retaining existing businesses and attracting new enterprises.

(b) The financial condition of certain of the larger municipalities of the state do not permit the continued provision of services which in the past have been provided for business districts and paid for by property taxes.

(c) This circumstance emphasizes the importance of enabling public-private cooperation to provide security, cleaning and other services in these business districts in order to supplement, but not to substitute for, the services now being provided in by municipalities within these districts.

(d) The establishment of district management authorities with the power to make special tax assessments, as hereinafter provided, will benefit the health, safety, welfare and prosperity of the people of this state.

It is the purpose of this act to authorize towns and cities to create district management authorities for the purpose of providing the services and undertaking the activities hereinafter described to supplement the services provided by municipal governments.

45-59-3. Definitions and construction. -- (a) As used in this chapter, unless the context otherwise requires, the term:

(1) "Chief elected officer" means the official, elected by the voters of a municipality, who exercises day-to-day executive authority over the municipality's affairs.

(2) "District management authority" means a district management authority established pursuant to the provisions of this chapter.

(3) "Fiscal year" means the fiscal year of the municipality within which the management district is located; "first fiscal year" means the first full fiscal year after the fiscal year during which the management district is created; subsequent fiscal years are referred to in like manner.

(4) "Management district" means a management district established pursuant to the provisions of this chapter and, as the context may require, includes any subdistrict within the management district.

(5) "Municipality" means a city or town of the state of Rhode Island having a population according to the most recent federal census of not less than one hundred thousand (100,000). Where the context requires, "municipality" also means a city or town within which a management district is created pursuant to the provisions of this chapter.

(6) "Real property" means land and buildings or structures located thereon but does not include lines, mains, poles, easements and rights-of-way owned by public utilities.

(7) "State" means the state of Rhode Island.

(b) References herein to owners or tenants of real property located within a management district or residents of a management district, or managers of real property located within the management district will be construed to include shareholders, members, partners, directors, officers, employees or agents thereof.

45-59-4. Creation of district, subdistrict. -- A management district may be created by an ordinance or resolution enacted by the city or town council of any municipality (as defined in section 45-59-3(5) hereof) upon the written petition of persons owning real property located within the proposed district as hereinafter provided. A management district may contain one or more subdistricts. A subdistrict may be created within an existing district by compliance with

the provisions of sections 45-59-5 and 45-59-6, but excluding section 45-59-(5)(8), solely with respect to the proposed subdistrict. Any subdistrict will be managed by the district management authority having management authority over the district in which the subdistrict is located.

45-59-5. Contents of petition -- Signers. -- (a) The written petition will be signed by persons who own real property located within the proposed district, and if the petition provides for one or more subdistricts, within the subdistricts, constituting, in the aggregate, sixty percent (60%) of the aggregate assessed valuation of all real property, not exempt from taxation by law.

(1) A statement requesting the creation of a management district and a district management authority.

(2) The name of the district management authority.

(3) A description of the proposed management district and any subdistrict

(4) The purposes for which the district management authority is to be created which may be all of the purposes hereinafter set forth or only those specifically set forth in the petition. The purposes of the district management authority in any subdistrict may be different from those in a management district.

(5) Any limitations on the powers of the district management authority which may include limitations on the amount of the special tax assessment which the district management authority is permitted to make.

(6) A statement that more than fifty percent (50%) of area of the land located within the proposed district is devoted to commercial and retail uses.

(7) The factors upon which the special tax assessment hereinafter provided will be based on which factors may be any one or a combination of: (i) assessed valuation as of the date provided in section 44-5-1, (ii) square footage of land or improvements, (iii) linear footage along street fronts, (iv) formulas reflecting that different areas or zones within the management district will have greater or lesser benefit from the activities to be undertaken by the district management authority, (v) formulas establishing different assessment levels for different classes of real property, or (vi) any other method which reasonably apportions the expenses of the activities

(8) The name of a non-profit corporation designated by the petitioners as being representative of the business community within the municipality which will have the appointive powers hereinafter provided for with respect to the governing board. The non-profit organization will be one which has qualified under section 501(c) of the Internal Revenue Code of 1986, as amended, and has received a determination letter from the Internal Revenue Service confirming its status (which determination letter continues to be in full force and effect).

(b) In addition, the petition may designate one or more persons who are authorized on behalf of the petitioners to modify or amend the petition prior to the passage of the ordinance or resolution.

45-59-6. Public hearing on petition. -- (a) The city or town council to which the petition is submitted will forthwith and in any event no later than ninety (90) days after the receipt thereof hold a public hearing for the purpose of receiving comments from all interested persons on the approval of the petition and the creation of a management district and a district management authority pursuant to the petition. Notice of the public hearing will be given by publication in a newspaper of general circulation within the municipality at least once a week for three (3) successive weeks prior to the date of the hearing. Such notice will state the date, time and place of the hearing and contain a description of the boundaries of the proposed district, sufficient to reasonably identify the boundaries of the proposed district, a statement to the effect that it is proposed to create a management district and a district management authority which will have the power to provide services within the management district and apportion the cost thereof among the owners of real properly located therein by means of a special tax assessment, and the office where a copy of the petition may be examined. No notice, other than the notice by publication heretofore referred to the owners of property within the proposed district is required. The boundaries of a district may be described by reference to streets or highways.

(b) At any time prior to the passage of the ordinance or resolution, the petition may be modified or amended by the petitioners or by persons authorized to act on their behalf without further advertising, provided, however, that in the event such modification or amendment to the petition would either: (1) enlarge or add additional real property to the proposed district or (2) enlarge the purpose of the proposed district management authority or (3) lessen any limitation on the powers of the district management authority, a new public hearing will be held in accordance with the provisions of the preceding subsection.

45-59-7. Creation of authority. -- After the hearing, the city or town council may approve the petition by ordinance or resolution which will contain a finding to the effect that:

(1) the petition has been submitted by persons who own real property located within the proposed district, and in any proposed subdistrict, constituting, in the aggregate sixty percent (60%) of the aggregate assessed valuation of all real property, not exempt from taxation by law;

(2) a majority of the area of the land located within the proposed district is devoted to commercial and retail uses.

For purposes of the finding required by clause (1) above, the city or town council may conclusively rely on the records of the city or town assessors to determine the ownership of real property located within the proposed district (barring actual notice to the contrary).

Thereupon, upon the approval of the petition by the city or town council, a management district and a district management authority will thereby be created. The city or town council may approve or disapprove the petition; it will have no authority to create a management district or district management authority which differs from that sought by the petition.

45-59-8. The authority. -- The district management authority thus created will be a body corporate and politic and an instrumentality and agency of the municipality within which the management district is located but having a distinct legal existence therefrom. It is hereby

any private person.

45-59-9. Purposes of authority. -- (a) Except as its purposes may be limited by the petition, the management district commission authority will have the following purposes within the management district:

(1) to provide for the cleaning of the public streets and sidewalks and the removal of snow;

(2) to provide for security; however, nothing contained herein shall bestow or authroize any police powers on any security force established by this provision;

(3) to install, repair and maintain public streets and sidewalks and lighting therefor;

(4) to install, repair and maintain street signs;

(5) to provide for landscaping and the repair and maintenance of public spaces;

(6) to provide for refuse collection and removal;

(7) to provide for motor vehicle parking;

(8) to sponsor and promote recreational, cultural and retail activities;

(9) to promote the development of the management district including collecting and disseminating information;

(10) to construct public facilities; and

(11) to provide such other services and facilities within the management district as may be beneficial to the management district and the property owners, tenants and other occupants therein.

(b) nothing in this chapter shall be construed to authorize or bestow any police powers upon the security force established herein.

45-59-10. Powers of authority. -- Except as its powers may be limited by the petition, the district management authority will have the power:

(1) to have perpetual succession unless a limited period of duration is stated in the petition;

(2) to sue and be sued, complain and defend, in its corporate name;

(3) to have a corporate seal which may be altered at pleasure, and to use the same by causing it, or a facsimile thereof, to be impressed or affixed or in any other manner reproduced;

(4) to purchase, take, receive, lease, take by gift, devise or bequest, or otherwise acquire, own, hold, improve, use and otherwise deal in and with real or personal property or any interest therein, wherever situated, and without restriction as to amount;

(5) to sell, convey, mortgage, pledge, lease, exchange, transfer and otherwise dispose of all or any part of its property and assets;

(6) to purchase, take, receive, subscribe for, or otherwise acquire, own, hold, vote, use, employ, sell, mortgage, lend, pledge or otherwise dispose of, and otherwise use and deal in and with, shares or other interests in, or obligations of domestic or foreign corporations, whether for profit or not for profit, limited liability companies, associations, partnerships or individuals, or direct or indirect obligations of the United States, or of any other government, state, territory, governmental district or municipality or of any instrumentality thereof;

(7) to make contracts and guarantees and incur liabilities, borrow money, for periods of three (3) years or less, at such rates of interest as the district management authority may determine, issue its notes and other obligations, guarantee debts and secure any of its obligations by mortgage or pledge of all or any of its property, assets and income;

(8) to lend money for its purposes, invest and reinvest its funds, and to take and hold real and personal property as security for the payments of funds so loaned or invested;

(9) to elect or appoint officers and agents of the district management authority and to define their duties and fix their compensation;

(10) to make and alter by-laws, not inconsistent with the petition or with the laws of this state, for the administration and regulation of the affairs of the district management authority;

(11) to accept grants or funds from the state and from nonprofit corporations;

(12) to have and exercise all other powers necessary or convenient to effect any or all of the purposes for which the district management authority is created.

45-59-11. By-laws. -- The board of directors of the district management authority may adopt by-laws containing provisions for the regulation and management of the activities of the district management authority.

45-59-12. Governing board. -- (a) The activities of the district management authority will be managed by a board of directors which will consist of nine (9) members.

(b) All of the directors will be owners or tenants of real property (not exempt from taxation by law) located within the management district or residents of the management district, or managers of real property (not exempt from taxation by law) located within the management district except for; (1) the chief elected officer of the municipality or his or her designee, (2) owners of real property located within the management district which is exempt from taxation by law who are voluntarily contributing to the costs of operating the management district.

(c) Two (2) of the directors will be appointed by the chief elected officer of the municipality within which the district management authority is located, one (1) of whom may be the chief elected officer of the municipality or his or her designee and the other will be an owner of real property (not exempt from taxation by law) located within the management district. Seven (7) of the directors will be appointed by the organization which was designated in the petition submitted pursuant to section 45-59-5 hereof; four (4) of the seven (7) directors so appointed will be owners of real property (not exempt from taxation by law) located within the management district or owners of real property located within the management district which is exempt from taxation by law who are voluntarily contributing to the costs of operating the management district.

(d) Terms for the directors will be as follows:

(1) The chief elected officer will assign to the persons initially appointed by him or her terms of one (1) and two (2) years so that the terms of the directors so appointed will expire on the last days of the first and second fiscal years respectively.

(2) The business organization designated in the petition filed pursuant to section 45-59-5 hereof will assign to the seven (7) persons initially appointed by it, terms of one (1) year (as to two (2) of them), two (2) years (as to two (2) of them), and three (3) years (as to three (3) of them) so that the terms of the directors so appointed will expire on the last days of the first, second and third fiscal years respectively.

(3) Beginning on the last day of the first fiscal year and on the last day of each succeeding fiscal year, the appointing authorities will appoint directors, to succeed the directors whose terms are then expiring, which successor directors will serve for terms of three (3) years and thereafter until their successors are appointed and will have qualified.

(e) Directors will receive no compensation for the performance of their duties but may be reimbursed for their reasonable expenses in carrying out such duties.

45-59-13. Officers. -- (a) The officers of a district management authority will consist of a chairman, a treasurer and a secretary, each of whom will be elected by the board of directors. Such other officers and assistant officers and agents as may be deemed necessary may be elected or appointed by the board of directors at such time and in such manner as may be prescribed by the by-laws. Any two (2) or more offices may be held by the same person.

(b) All officers and agents of the district management authority will have such authority and perform such duties in the management of the district management authority as may be provided in the by-laws, or as may be determined by resolution or vote of the board of directors, subject to any limitations on such authority contained in the by-laws.

45-59-14. Annual budget. -- (a) Not later than sixty (60) days prior to the beginning of each fiscal year, the district management authority will annually prepare an operating budget containing:

(1) an estimate of surplus from its current fiscal year available for expenditure in the ensuing fiscal year;

(2) an estimate of receipts for the ensuing fiscal year from the special tax assessment hereinafter provided for;

(3) an estimate of receipts for the ensuing fiscal year from all other sources; and

(4) an estimate of expenditures for the ensuing fiscal year for the carrying on of the district management authority's activities including debt service, if any.

(b) Prior to the adoption of the budget, the district management authority will hold a public hearing thereon at which all interested persons may be heard. Notice of the public hearing will be given by publication in a newspaper of general circulation within the municipality at least once a week for three (3) successive weeks prior to the date of the hearing.

45-59-15. Special tax assessments. -- Each district management authority will have the power to apportion the annual operating expenses of the district management authority among the owners of ratable real property, not otherwise exempt by law, located within the management

district by a special tax assessment. The special tax assessment will be based on the factors set forth in the petition approved by the city or town council. The rate of the special tax assessment with respect to any subdistrict may vary in the amount from the rate of the special tax assessment generally applicable to the owners of ratable real property within the management district. The special tax assessments made by a district management authority will not be considered to be a tax of the municipality for purposes of section 44-5-2 of the general laws.

45-59-16. Limit on assessments. -- The total of the special tax assessments levied on the ratable real property within the management district will not exceed ten percent (10%) of the total of the real property taxes levied on the ratable real property within the management

district, not exempt from taxation by law, for the fiscal year of the municipality that ends within or with the fiscal year of the district management authority.

45-59-17. Collection of assessments. -- The assessments made by any district management authority will be collected by the tax collector of the municipality within which the management district is located for the account of the district management authority. The assessments so collected will not be commingled with funds of the municipality and forthwith upon their collection, will be remitted to the district management authority. Assessments will be a lien on the real property of the persons against whom the assessments are made in the same manner as taxes assessed by a municipality under section 44-9-1 of the general laws. Tax collectors of municipalities within which management districts are created will have the

same powers with respect to assessments and their collection as are granted to them by chapter 44-9 of the general laws with respect to municipal property taxes except that these powers will be exercised for and on behalf of the district management authority.

45-59-18. Petition for relief from assessment. -- (a) Any person aggrieved on any ground whatsoever by any assessment against him or her by a district management authority in any municipality may within three (3) months after the last day appointed for the payment without penalty of the assessment, or the first installment thereof, if the assessment is

To the sheriff of the several counties, or to the deputies, Greetings:

We command you to summon the treasurer of (the district management authority): to wit, of (if to be found in your precinct) to answer the

Hereof fail not, and make true return of this writ with your doings thereon.

Witness, the seal of our superior court, at this day of in the year, A.D. 20 .

(b) Said petition will be subject to the provisions of section 44-5-26 through section 44-5-31 of the general laws insofar as the same may be applicable.

45-59-19. Agreements with the state. -- The state and a district management authority may enter into agreements pursuant to which the state agrees with the district management authority that the district management authority will thereafter undertake services previously provided by the state in consideration of the state's paying to the district management authority of such sums as the parties may agree to.

45-59-20. Agreements with municipalities. - The services provided by a district management authority will be supplemental to the services otherwise provided by the municipality within the management district.

45-59-21. Amendment. -- At any time after the approval of a petition and the creation of a district management authority, the boundaries of the management district and the purposes and powers of the district management authority may be amended by the filing of a petition therefor. The petition will set forth the amendments sought; it will be signed either: (1) by not less than two-thirds (2/3) of the members of the district management authority board of directors or, (2) in the event that additional property is to be included within the district, by persons who

45-59-22. Dissolution. -- (a) Any district management authority may be dissolved and the designation of a management district terminated by ordinance or resolution of the city or town council of the municipality within which it is located and adopted after public hearing as

(b) Any district management authority must be dissolved and the designation of a business district terminated by ordinance or resolution of the city or town council of the municipality within which it is located upon the receipt of a written petition therefore signed by persons who own real property located within the district constituting, in the aggregate, not less than sixty percent (60%) of the aggregate valuation of all real property, not exempt from

(c) Any district management authority will be automatically dissolved and the designation of a management district will be automatically terminated at the end of the third full fiscal year after its creation and designation and after it has actually commenced providing services hereunder unless the continuance of the existence of the district management authority and the designation of the district is approved in writings which are filed with the clerk of the municipality within which the management district is located and are signed by persons

(d) Any such dissolution and termination occurring under the provisions of subsections (a) and (b) hereof will be effective as of the end of the fiscal year within which the ordinance or resolution of the city or town council is enacted except that the district management authority's

(e) Upon its dissolution, the district management authority will thereupon discontinue its operations and proceed to wind up its affairs. Notwithstanding its dissolution, the district management authority will continue in existence for the limited purpose of paying any indebtedness which it has incurred prior to its dissolution and it may continue to make special tax assessments for that purpose. After all of the indebtedness of the district management authority has been paid or its payment provided for, the remaining property and assets of the district management authority will be paid over to the municipality unless another disposition thereof, benefiting the management district, has been directed by the district management authority's board of directors.

45-59-23. Exemption from taxation. -- (a) Any notes or other obligations issued by any district management authority, their transfer and the income therefrom (including any profits made on the sale thereof), will at all times be free from taxation by the state or any political

(b) The exercise of the powers granted by this chapter will be in all respects for the benefit of the people of this state and of the municipalities within which the district management authorities will undertake their activities, the increase of their commerce, welfare and

prosperity and for the improvement of their health and living conditions and will constitute the performance of essential governmental functions and the district management authorities will not be required to pay any real or personal property taxes or assessments upon or in respect of any property owned by them levied by any municipality or other political subdivision of the state.

45-59-24. Credit of municipality not pledged. -- Notes and other obligations of a district management authority will not be deemed to constitute the debt or a pledge of the faith and credit of the municipality.

45-59-25. Exemption from liability. -- No member of the board of directors of a district management authority and no officer thereof will be held civilly liable for any breach of his or her duties as such member or officer except for liability: (1) for acts or omissions not

in good faith or which involve intentional misconduct or knowing violation of law, or (2) for any transaction from which such member or officer derived an improper personal benefit, or (3) for any malicious, willful or wanton act.

45-59-26. Applicability of other laws. -- (a) District management authorities will be subject to the provisions of chapter 37-14.1 (Minority Business Enterprise) of the general laws, chapter 38-2 (Access to Public Records) of the general laws and chapter 42-46 (Open Meetings) of the general laws. District management authorities will also be subject to the provisions of chapter 36-14 (Code of Ethics) of the general laws except as follows: (1) the directors and officers thereof will not be required to file the financial statement required by section 36-14-16 of the Code of Ethics, and (2) a director or officer of a district management authority

(b) District management authorities will not be subject to laws or ordinances relating to the purchasing of property or services or the making of contracts and, except as provided in subsection (a) above, will not be subject to laws or ordinances relating generally to municipalities or to municipal agencies or departments.

(c) Employees of district management authorities will not be considered to be public or municipal employees.

45-59-27. Notice of creation of district; actions to contest. -- Notice of the creation of a management district and a district management authority will be given by publication in a newspaper of general circulation within the municipality at some time subsequent to the approval of the petition by the city or town council as provided in section 45-59-7 hereof. Actions to contest the validity of the proceedings for the creation of the management district and the district management authority must be commenced within sixty (60) days after the date of the notice and no action thereafter commenced will raise any question concerning the validity of the proceedings and the creation of the management district and the district management authority. After the expiration of the sixty (60) day period, the validity of the proceedings and the creation of the management district and the district management authority will be conclusively presumed.

SECTION 2. This act shall take effect upon passage.