Chapter 445

2007 -- S 0261 SUBSTITUTE A

Enacted 07/05/07

A N A C T

RELATING TO TOWNS AND CITIES - PASCOAG UTILITY DISTRICT

Introduced By: Senators P Fogarty, Gallo, and Connors

Date Introduced: February 07, 2007

It is enacted by the General Assembly as follows:

     SECTION 1. Sections 45-58-2 and 45-58-6 of the General Laws in Chapter 45-58

entitled "Pascoag Utility District" are hereby amended to read as follows:

45-58-2. Definitions. -- Terms used in this chapter shall be construed as follows, unless

another meaning is expressed or is clearly apparent from the language or context:

      (1) "Utility district" means the Pascoag utility district, a quasi-municipal corporation,

district and political subdivision of the state established and empowered by this chapter to:

      (i) Succeed to and fulfill the electric and water utility functions, powers, rights, property

and obligations heretofore held and fulfilled by the Pascoag fire district created by the act passed

at the May session 1887, entitled "An Act to Incorporate the Pascoag Fire District" as thereafter

amended and supplemented from time to time;

      (ii) Exercise certain additional powers as a utility water supplier, an electric distribution

company and as a nonregulated power producer; and

      (iii) To provide additional utility services not inconsistent with the duties, powers and

obligations of the utility district as defined in this section.

      (2) "Fire district" means the Pascoag fire district created by the act passed at the May

session 1887, entitled "An Act to Incorporate the Pascoag Fire District" as thereafter amended

and supplemented from time to time.

      (3) "Utility assets" means that real property, personal property, rights in any real and

personal property, facilities, equipment, contract rights, statutory rights and privileges, franchises

and other tangible or intangible property of any kind whatever used in, or useful to, the conduct

of the electric and water utility operations conducted prior to April 4, 2001 by the fire district, and

on and after April 4, 2001 by the utility district.

      (4) "Fire protection assets" means that real property, facilities, equipment, statutory

rights and privileges, and other tangible or intangible property of any kind whatever used in, or

useful to, the conduct of the fire protection and prevention operations conducted prior to, on and

after April 4, 2001 by the fire district.

      (5) "Utility service area" means that geographic area located within the boundaries of the

Pascoag fire district, as established under the act passed at the May session 1887, entitled "An

Act to Incorporate the Pascoag Fire District" as thereafter amended and supplemented from time

to time.

      (6) "Utility bond obligations" means the obligations represented by and inherent in any

revenue or general obligation bond issued by the Pascoag fire district prior to April 4, 2001 for

the purpose of financing any aspect of its electric or water utility system or operations, which

obligations remain outstanding in any part as of April 4, 2001.

(7) “Qualified voter” means any person whose name appears on an active account with

the Pascoag utility district and who resides in the village of Pascoag or owns property in the

village of Pascoag.

45-58-6. Membership of board of commissioners. -- (a) The board of utility

commissioners shall consist of seven (7) members. Four (4) members of the board shall constitute

a quorum and a vote of four (4) members shall be necessary for all action taken by the board. No

vacancy in the membership of the board shall impair the right of a quorum to exercise all the

rights and perform all the duties of the board. The initial members of the board of utility

commissioners shall be the utility commissioners currently holding office under the auspices of

the Pascoag fire district, who shall continue to serve until their current terms expire. Thereafter,

the members of the board of utility commissioners of the Pascoag utility district shall be elected

for a term of three (3) years by ballot of voters otherwise eligible to vote in the general election in

succeeding years in the village of Pascoag.

      (b) The members of the board of utility commissioners, moderator or clerk shall be

residents of the village of Pascoag. Any registered voter within the geographic boundaries of the

village of Pascoag shall be eligible to run for election to the board of utility commissioners,

moderator or clerk provided, however, that he or she shall first have filed a declaration of

candidacy with the secretary of the board of utility commissioners not later than thirty (30)

calendar days prior to the scheduled date of the election through which such person seeks to be

elected to the board of utility commissioners, moderator or clerk. In the event of a vacancy

occurring on the board of utility commissioners, moderator or clerk by reason of death,

resignation or other cause, the board itself may select an eligible voter to fulfill the unexpired

portion of the term of office thereby left vacant fill the vacancy until the next annual election.

      (c) The board of utility commissioners shall elect each year from among its members: (1)

a chairperson, who shall chair and moderate meetings of the board of utility commissioners and

shall execute such other authorities and duties as the board may provide; (2) a vice chair person

who shall assume all duties of the chairperson in the chairperson’s absence; and (2) (3) a

secretary, who shall maintain minutes of the meetings of the board of utility commissioners,

provide notice of the meetings in accordance with law, and shall have such other duties as the

board of utility commissioners may determine. The board of utility commissioners shall appoint a

treasurer, who may be a member of the board or a general or special employee of the utility

district, and who shall have charge and control of the money and deposits of the utility district.

      (d) The board of utility commissioners shall establish and adopt bylaws for the

management and conduct of the utility district's affairs, and other aspects of the governance of the

utility district not otherwise controlled by this chapter. Pending the adoption of the bylaws, the

board of utility commissioners shall be deemed to have adopted, and shall conduct the board's

business in accordance with, those portions of the bylaws of the Pascoag fire district relating to

utility matters.

      (e) In order to ensure that the status of the utility district as a quasi-municipal

corporation, district and political subdivision of the state does not prejudice its ability to

contribute to the development of effective competition in the electricity and communications

industries in the state, it is specifically found and determined that: (1) strategic business planning

records of the utility district (including without limitation business plans, draft contracts,

proposals, financial analyses and other similar documents) shall not be subject to the disclosure

requirements of chapter 2 of title 38 of the general laws unless the same materials in comparable

circumstances in the hands of an investor-owned utility would be subject to disclosure under

other laws of the state; and (2) strategic business planning discussions of the board of utility

commissioners, including such discussions with utility district employees or consultants, are

deemed to fall within the circumstances defined in section 42-46-5(a)(7).

     SECTION 2. Chapter 45-58 of the General Laws entitled "Pascoag Utility District" is

hereby amended by adding thereto the following section:

45-58-15. Tax exemption. – It is hereby declared that the Pascoag utility district, in the

carrying out of its quasi-municipal purposes, is in all respects providing essential services to the

people of the state of Rhode Island that improves their health, safety and welfare. Accordingly,

the district shall not be required to pay taxes, assessments or sums in lieu of taxes to the state of

Rhode Island or any political subdivision thereof upon any of the property now owned or

acquired in the future by the district, or under its jurisdiction and/or control, possession or

supervision or upon its activities or operations, or upon any earnings, revenues, moneys or other

income derived by the district. The bonds issued by the district and any income therefrom shall at

all times be exempt from taxation; provided, however, nothing in this section shall have any

effect upon the water resources board, or the division of public utilities and carriers, and/or the

public utilities commission’s authority to impose regulation-related assessments and charges on

Pascoag.

     SECTION 3. This act shall take effect upon passage.

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LC01181/SUB A/2

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