2021 -- S 0632

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LC002490

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- QUONSET DEVELOPMENT

CORPORATION

     Introduced By: Senators DiMario, and Valverde

     Date Introduced: March 18, 2021

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-64.10-6 of the General Laws in Chapter 42-64.10 entitled

"Quonset Development Corporation" is hereby amended to read as follows:

     42-64.10-6. Additional general powers and duties.

     In addition to the powers enumerated in § 42-64.10-5, except to the extent inconsistent

with any specific provision of this chapter, the corporation shall have and may exercise additional

general powers:

     (a) As set forth in § 42-64-7 necessary or convenient to effect its purposes; provided,

however, that the corporation shall not have the power to issue bonds or notes or exercise eminent

domain;

     (b) As a subsidiary of the Rhode Island commerce corporation as provided for in § 42-64-

7.1;

     (c) As the Rhode Island commerce corporation's true and lawful attorney as agent and

attorney-in-fact and in the name, place and stead of the Rhode Island commerce corporation with

respect to all property of the Rhode Island commerce corporation at Quonset Business Park

(hereinafter referred to as "the Property") and for the purposes hereinafter set forth:

     (1) To ask, demand, recover, collect, receive, hold, and possess all sums of money, debts,

dues, goods, wares, merchandise, chattels, effects, bonds, notes, checks, drafts, accounts, deposits,

safe deposit boxes, interests, dividends, stock certificates, certificates of deposit, insurance benefits

and proceeds, documents of title, personal and real property, tangible and intangible property, and

property rights, liquidated or unliquidated, that now are, or hereafter, shall be, or become, due,

owing, or payable in respect to the property, and upon receipt thereof, or of any part thereof, to

make, sign, execute, and deliver such receipts, releases, or other discharges for the same as the

corporation shall deem proper.

     (2) To lease, purchase, exchange and acquire, and to bargain, contract, and agree for the

lease, purchase, exchange, and acquisition of, and to take, receive, possess, and manage any real or

personal property related in any way to the property, tangible and intangible, or any interest therein.

     (3) To enter into and upon all and each of the real properties constituting a part of, or related

in any way, to the property, and to let, manage, and improve the real property or any part thereof,

and to repair or otherwise improve or alter, and to insure any buildings or structures thereon.

     (4) To market and sell, either at public or private sale, or exchange any part or parts of the

real or personal properties, including indebtedness or evidence thereof, constituting a part of or

related in any way to the property, including sales on credit, and for that purpose to execute and

receive all promissory notes, bonds, mortgages, deeds of trust, security agreements, and other

instruments that may be necessary or proper, and to bargain, contract, and agree with respect to the

sale or exchange of such properties; and to execute and deliver good and sufficient deeds, bills of

sale, assignments, or other instruments or endorsements for the conveyance or transfer of the same;

and to give receipts for all or any part of the purchase price or other consideration.

     (5) To sign, endorse, execute, acknowledge, deliver, receive, and possess such applications,

contracts, agreements, options, covenants, deeds, conveyances, trust deeds, mortgagees deeds,

security agreements, bills of sale, leases, mortgages, assignments, insurance policies, bills of lading,

warehouse receipts, documents of title, bills, bonds, debentures, checks, drafts, bills of exchange,

notes, stock certificates, proxies, warrants, commercial paper, receipts, withdrawal receipts, and

deposit instruments relating to accounts or deposits in, or certificates of deposit of, banks, savings

and loan or other institutions or associations, proofs of loss, evidences of debts, releases, and

satisfactions of mortgages, judgments, liens, security agreements, and other debts and obligations,

and other instruments in writing of whatever kind and nature as be necessary or proper in the

exercise of the rights and powers herein granted.

     (6) To enter into subordination agreements, inter-creditor agreements, reinstatement

agreements, "stand still" and "stand-by" agreements, modification agreements, forbearance

agreements, and other contracts having the effect of subordinating, modifying, renewing,

restructuring or otherwise altering the rights, obligations, or liabilities of the commerce corporation,

under or with respect to any indebtedness, property, or other assets constituting or securing any

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property.

     (7) To make demands, give notices of default, notices of intention to accelerate, notices of

acceleration, or such other notices as the corporation deems necessary or appropriate, and to take

other actions and exercise other rights that may be taken under the terms of any loan agreements,

security agreements, guaranties, or other documents or agreements evidencing, or otherwise

relating to, the property, including foreclosure, lease, sale, taking possession of, realization upon,

or any other disposition of any property or any collateral therefor or guarantee thereof.

     (8) To exercise any powers and any duties vested in the commerce corporation as a partner,

joint venturer, participant, or other joint-interest holder with respect to any property, or to concur

(or not) with persons jointly interested with the commerce corporation in any property.

     (9) With respect to the property: (i) To sue on, or otherwise prosecute, any claim or cause

of action, or commence or seek any legal, equitable, or administrative or other remedy in any legal,

administrative, arbitration, mediation, or other proceeding whatsoever (including, non-judicial

repossessions and foreclosures or similar actions to recover collateral); (ii) To defend, or otherwise

participate for, or in the name of, the commerce corporation in any legal, administrative, arbitration,

mediation, or other proceedings; (iii) To process, determine, or adjudge any claim or cause of action

for, or in the name of, the commerce corporation; (iv) To compromise, settle, discharge or resolve,

or make, execute, or deliver any endorsements, acquittances, releases, receipts, or other discharges

of any claim, cause of action, determination, judgment, or other proceeding for, or in the name of,

the commerce corporation; and (v) To prepare, execute, and file ad valorem, franchise and other

tax returns, protests and suits against taxing authorities, and to prepare, execute, and file other

governmental or quasi-governmental reports, declarations, applications, requests and documents in

connection with any property, and to pay taxes in connection with the property as the corporation

deems necessary or appropriate, or as otherwise required by law.

     (10) Any third party shall be entitled to rely on a writing signed by the corporation to

conclusively establish the identity of a particular Property as property for all purposes hereof.

     (d) To own, hold, improve, operate, manage, and regulate utilities at the Quonset Business

Park and to establish rates, fees, and charges, to adopt regulations, and to impose penalties for any

services or utilities it provides, or causes to have available, and to have functions and exercise

powers as necessary and appropriate under the provisions of §§ 42-64-4, 42-64-7.4, 42-64-7.8, 42-

64-7.9 and 42-64-9.1 -- 42-64-9.10, inclusive.

     (e) To enter into agreements with any city, town, district, or public corporation with regard

to application and/or administration of zoning or other land use ordinances, codes, plans, or

regulations, and cities, towns, districts, and public corporations are hereby authorized and

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empowered, notwithstanding any other law to the contrary, to enter into such agreements with the

corporation and to do all things necessary to carry out their obligations under such agreements; in

the absence of any such agreement the corporation shall act in accordance with the provisions of §

42-64-13.

     (f) To enter into agreements, including with any state agency, city, town, district, or public

corporation, for the provision of police, security, fire, sanitation, health protection, and other public

services.

     (g) To be exempt from taxation and to enter into agreements for payments in lieu of taxes

as provided for in § 42-64-20.

     (h) To establish a stormwater management and conveyance system and regulate

connections, user fees, charges and assessments in connection therewith. In particular, the

corporation shall have full and complete power and authority to:

     (1) Limit, deny, or cause appropriate direct or indirect connections to be made between any

building or property located in the Quonset Business Park, or from any location outside the

boundaries of the Quonset Business Park and discharging into the corporation's stormwater

management and conveyance systems. The corporation may prescribe those rules and regulations

for stormwater runoff, that in the opinion of the corporation, are necessary and appropriate for the

maintenance and operation of the stormwater management and conveyance systems, and may

establish, from time to time, rules and regulations relating to stormwater management in the

Quonset Business Park. Any person or entity having an existing connection to the stormwater

management and conveyance systems or currently discharging into such systems, will obtain a

permit from the corporation in accordance with its rules and regulations. No person or entity shall,

without first being granted a written permit from the corporation in accordance with its rules and

regulations, make any future connection or permit any runoff from any structure or property to any

stormwater management and conveyance systems, or any appurtenance thereto, without first being

granted a written permit from the corporation in accordance with its rules and regulations.

     (2) Compel any person or entity within the Quonset Business Park, for the purpose of

stormwater runoff, to establish a direct connection on the property of the person or entity, or at the

boundary thereof, to the corporation's stormwater management and conveyance systems. These

connections shall be made at the expense of such person or entity. The term "appurtenance" as used

herein shall be construed to include adequate pumping facilities, whenever the pumping facilities

shall be necessary to deliver the stormwater runoff to the stormwater management and conveyance

systems.

     (3) Assess any person or entity having a direct or indirect connection (including, without

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limitation, via runoff) to the Quonset Business Park stormwater management and conveyance

systems the reasonable charges for the use, operation, maintenance, and improvements to the

systems. The corporation shall also be entitled, in addition to any other remedies available, to assess

fines for violations of the rules and regulations established by the corporation with respect to

stormwater management.

     (4) Collect the fees, charges, and assessments from any person or entity so assessed. Each

person or entity so assessed shall pay the fees, charges, or assessments within the time frame

prescribed by the rules and regulations of the corporation. The corporation may collect the fees,

charges, and assessments in the same manner in which taxes are collected by municipalities, with

no additional fees, charges, assessments, or penalties (other than those provided for in chapter 9 of

title 44). All unpaid charges shall be a lien upon the real estate of the person or entity. The lien shall

be filed in the records of land evidence for the city or town in which the property is located and the

corporation shall simultaneously, with the filing of the lien, give notice to the property owner.

Owners of property subject to a lien for unpaid charges are entitled to a hearing within fourteen

(14) days of the recording of the lien.

     (5) Notwithstanding the provisions of subsection (h)(4) of this section, the corporation is

authorized to terminate the water supply service or prohibit the use of the corporation's stormwater

management and conveyance systems of any person or entity for the nonpayment of storm water

management user fees, charges, and assessments. The corporation shall notify the user of

termination of water supply or use of the stormwater management and conveyance systems at least

forty-eight (48) hours prior to ceasing service. The corporation may assess any person or entity any

fees, charges, and assessments affiliated with the shut off and restoration of service.

     (6) Without in any way limiting the foregoing powers and authority, the corporation is also

hereby empowered to: (i) Establish a fee system and raise funds for administration and operation

of the stormwater management and conveyance systems; (ii) Prepare long-range, stormwater

management master plans; (iii) Implement a stormwater management district; (iv) Retrofit existing

structures to improve water quality or alleviate downstream flooding or erosion; (v) Properly

maintain existing stormwater management and conveyance systems; (vi) Hire personnel to carry

out the functions of the stormwater management and conveyance systems; (vii) Receive grants,

loans, or funding from state and federal water-quality programs; (viii) Grant credits to property

owners who maintain retention and detention basins or other filtration structures on their property;

(ix) Make grants for implementation of stormwater management plans; (x) Purchase, acquire, sell,

transfer, or lease real or personal property; (xi) Impose liens; (xii) Levy fines and sanctions for

noncompliance; (xiii) Provide for an appeals process; and (xiv) Contract for services in order to

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carry out the function of the stormwater management and conveyance systems.

     (i) To purchase and obtain water supply and water service from any city, town, water

district, or other water supply authority. In particular, the corporation is authorized to:

     (1) Enter into agreements or contracts with any city, town, county, water district, or other

water supply authority to purchase, acquire, and receive water supply and water service.

     (2) Enter into cooperative agreements with cities, towns, counties, water districts, or other

water supply authorities for the interconnection of facilities or for any other lawful corporate

purposes necessary or desirable to effect the purposes of this chapter.

     (3) Connect the water supply system at Quonset Business Park with any city, town, county,

water district, or other water supply authority that receives or has a connection with the city of

Providence and/or the Providence Water Supply Board (or any successor thereof) and purchase,

connect to, receive, and enter into agreements to receive water supply from any city, town, county,

water district, or other water supply authority regardless of the origin of such water supply. The

city of Providence and the Providence Water Supply Board (and any successor thereof) are

authorized and directed to supply water to the Quonset Business Park either directly or via

connections between the Quonset Development Corporation and any city, town, county, water

district, or other water supply authority, notwithstanding any terms to the contrary in any

agreement, including, without limitation, any agreement between any city, town, county, water

district, or other water supply authority and the city of Providence and/or the Providence Water

Supply Board (or its or their predecessors), or the provisions of chapter 16 of title 39. In addition,

the provisions of § 18 of chapter 1278 of the public laws of Rhode Island of 1915 as amended, and

any other public law that would conflict with the terms hereof, are hereby amended to authorize

the provision of water supply by the city of Providence and the Providence Water Supply Board

(or any successor thereof) to the Quonset Business Park and to authorize any additional connections

in accordance herewith. There shall be no requirement that the corporation demonstrate public

necessity before entering into such agreements, connecting to such water supplies, or receiving

such water as described in this subsection, but the corporation shall be subject to the other

applicable provisions of chapter 15 of title 46.

     (j) Notwithstanding any provisions of the general laws to the contrary, the corporation shall

be entitled to borrow or otherwise obtain credit of up to one million dollars ($1,000,000) for the

corporation's operational purposes and, in connection with such borrowing, shall be entitled to issue

notes and grant security in assets of the corporation. Any indebtedness authorized by this provision

shall not be an indebtedness of the state or of the Rhode Island commerce corporation.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- QUONSET DEVELOPMENT

CORPORATION

***

     This act would authorize the Quonset development corporation to borrow up to one million

dollars ($1,000,000) for operational purposes, the debt would not be a debt of the state and would

be secured only by the Quonset development corporation's assets.

     This act would take effect upon passage.

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