2001 -- S 0948

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LC03123
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S  T  A  T  E     O  F     R  H  O  D  E     I  S  L  A  N  D    

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2001

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RELATING TO THE TOWN OF NARRAGANSETT

Introduced By:  Senator Patrick T. McDonald Date Introduced:  May 16, 2001 Referred To:  Committee on Corporations

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:

CHAPTER 45-58
NARRAGANSETT HOST COMMUNITY WATER CARRIER CONTRACT ACT

45-58-1. Host community contracts authorized. -- (a) Any water carrier regulated by the public utilities commission ("PUC") and/or the division of public utilities and carriers ("DPUC"), or any successor entity, which operates in the town of Narragansett, shall be required to enter into a host community contract with the town of Narragansett, the purpose of which shall be to compensate the town of Narragansett for public services provided to the passengers of the water carriers. All such funds paid to the town of Narragansett shall be used by the town of Narragansett to protect the health, safety, and welfare of the passengers of the water carriers including, but not limited to, the providing of police protection, emergency medical services, fire protection, the acquisition of both personal and real property, to provide support to the ferry passengers, and to establish a fund to assist the town of Narragansett in resolving problems which arise due to the impact of the water carriers operating in the town of Narragansett. The amount paid to the town of Narragansett by each water carrier shall be agreed to by the town of Narragansett and the water carrier as part of the host community contract. In the event that the town of Narragansett and the water carrier shall fail to agree upon the amounts to be paid to the town of Narragansett, then the payment to the town of Narragansett shall be equal to eighty-seven and one-half percent (87.5%) of the surcharge on the rates as provided for in this act, with the balance to be retained by the water carriers for the administrative costs of collecting and remitting the required payments to the town, and said retained funds shall not count in any way as regulatory income to the water carriers for regulatory purposes by the PUC, the DPUC, or any similar regulatory body or any judicial body. In the event there is no agreement on the amount to be retained by any water carrier, the host community agreement will provide for the retention by the water carrier of twelve and one-half percent (12.5%) of the surcharge on the rates as provided for in this act to cover the administrative costs of collecting and remitting the required payments. The contract will also provide for the indemnification of the water carriers from and against any and all liability to or claim of liability by third parties arising from the collection and/or payment of any fee provided for in this act. Any water carrier subject to the provisions of this act shall collect the fees required hereunder to be paid to the town of Narragansett on behalf of the town of Narragansett and retained by the water carriers by including as an add-on to the PUC approved rates of the water carrier a surcharge which shall be equal to a one and four tenths percent (1.4%) increase for all such rates (except any Block Island passenger commuter rates as defined by the PUC). The addition of this surcharge to the water carriers' rates shall be implemented by the water carriers without prior or subsequent review or approval by the PUC and/or the DPUC under title 39, nor shall the surcharge be subject in any way to any regulatory or judicial review or control. The town of Narragansett shall seek no fees from the water carriers other than those set forth in this act, provided, however, that this sentence shall not preclude the taxation of property (but not the vessels) of the water carrier pursuant to title 44 of the general laws of the state of Rhode Island.

(b) The rate relief previously authorized by the PUC for interstate navigation company in 1997 (PUC Docket No. 2484) which authorized the Increase of Interstate Navigation Company's rates (except the Block Island passenger commuter rate) by one and four tenths percent (1.4%) in order to pay for property taxes assessed against Interstate Navigation Company's vessels by the town of Narragansett may be retained now and in the future by Interstate Navigation Company not withstanding any contrary provision of law and/or restrictions imposed on the funds or any other terms of approval of the one and four tenths percent (1.4%) rate increase imposed by the PUC, and such retention shall not be subject to any prior or subsequent review or approval by the PUC, the DPUC, or any similar regulatory body or any judicial body, and the one and four tenths percent (1.4%) increase granted in 1997 (PUC Docket No. 2484) shall not be eliminated at any time by the PUC, the DPUC, any similar regulatory body, or any judicial body. Such retention of funds by Interstate Navigation Company shall in part be reimbursement of the monies previously paid by Interstate Navigation Company to rebuild the bulkhead at the state-owned ferry terminal property leased by Interstate Navigation Company in the Port of Galilee and said retention of funds shall not count in any way as regulatory income to Interstate Navigation Company for regulatory purposes by the PUC, the DPUC, any similar regulatory body, or any judicial body, except that the right to retain the funds generated by this rate increase is specifically conditioned upon Interstate Navigation Company making a one-time payment to the town of Narragansett of eighty-five thousand dollars ($85,000) of the funds already collected pursuant to this rate increase.

(c) As to property over which the town of Narragansett has regulatory control, the town of Narragansett will not prohibit overnight parking on private property and currently existing parking lots in Galilee and there will be no mandatory off-site parking for cars in Galilee.

SECTION 2. This act shall take effect upon passage.

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LC03123
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF

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RELATING TO THE TOWN OF NARRAGANSETT

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This act would allow the town of Narragansett to contract with ferry operators for compensation for services provided by the town to support ferry operations at the Port of Galilee.

This act would take effect upon passage.


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