2024 -- S 2997

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LC005921

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO AMENDING THE CHARTER OF THE HARRISVILLE FIRE DISTRICT

AND ESTABLISHING THE CLEAR RIVER ELECTRIC AND WATER DISTRICT

     Introduced By: Senator Jessica de la Cruz

     Date Introduced: April 16, 2024

     Referred To: Senate Housing & Municipal Government

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 637 of the Public Laws of 1910 entitled "An Act to Incorporate the

Harrisville Fire District" as amended, is hereby further amended to read as follows:

     The Charter of the Harrisville Fire District

     Section (a) Establishment.

     A. Incorporation. Within the boundaries described below, there is hereby established a

district incorporated as a quasi-municipal corporation under the name of the Harrisville Fire District

("District").

     B. Purposes. The district is incorporated for the purposes of providing fire suppression, and

emergency medical, rescue and ambulance services, and furnishing and distributing water, light,

and power for the limited purpose of powering and maintaining streetlights, throughout the district

and beyond the same both within and without the district and the town of Burrillville as provided

herein, and for such other purposes as may be deemed necessary, appropriate, or incidental to the

foregoing.

     C. Powers. The district may have a common seal, sue and be sued, and enjoy the other

powers generally incident to the quasi-municipal corporation, including the following:

     1. To provide fire suppression, emergency medical, rescue and ambulance services within

or without the territorial limits of the district or the town of Burrillville.

     2. To procure, distribute, and sell water within or without the territorial limits of the district

or the town of Burrillville.

     3. Subject to the approval of the public utilities commission and to all applicable provisions

of title 39 of the general laws and any regulation duly promulgated there under, to procure,

distribute, and sell light and power within the territorial limits of the district.

     4. To obtain, own, establish, operate, maintain, repair, improve, enlarge, and/or extend any

pipe, conduit, fire apparatus, building, facilities, or property of any kind in order to carry out the

purposes of the district.

     5. To acquire, hold, use, lease, sell, transfer and/or dispose of any property, real, personal

or mixed, or any interest therein for its corporate purposes, and to mortgage, pledge, or lease any

such property.

     6. To make by-laws for the management and regulation of its affairs.

     7. To borrow money for any of its corporate purposes, including the creation and

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

fund or refund the same.

     8. To contract in its own name for any lawful purpose deemed necessary to carry out the

purposes of the district.

     9. To execute all instruments necessary to carry out the purposes of the district.

     10. To enter into cooperative agreements with states, cities, counties, towns, water, or fire

districts within or without the district for the interconnection of facilities and mutual aid or for any

other lawful corporate purposes necessary or desirable to carry out the purposes of the district.

     11. To fix rates and collect charges for the use or expansion of the facilities of or services

rendered by or for any water, commodities, or other utilities services furnished by the district

pursuant to this law, such as to provide revenues sufficient at all times to pay, as the same shall

become due, the principal and interest on the bonds of the district, together with the maintenance

of proper reserves therefor, in addition to paying, as the same shall become due, all operating

expenses of the district together with proper reserves for depreciation, maintenance, expansion, and

contingencies and all other obligations and indebtedness of the district.

     12. To levy and collect taxes on the taxable inhabitants of the district to carry out the

purposes of the district in the manner provided in this charter.

     13. To exercise the power of eminent domain in the same manner prescribed pursuant to

R.I.G.L. section 39-15-1, et seq., or R.I.G.L. section 24-1-1, et seq., in order to acquire property

for the purposes of the district.

     14. To do all things necessary or convenient in order to carry out any and all express or

implied purposes and powers of the district granted under this charter.

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     D. Boundaries. The district shall have the boundaries as set forth below and as the same

may be amended from time to time:

     All that part of the town of Burrillville starting at a southerly point of the Burrillville and

Glocester town line on Route 102, northwest to the intersection of Lapham Farm Road and Steere

Farm Road; northeast from said point to the northwest corner of 315 Central Street, then northerly

to a point one hundred eighty (180) feet west of the intersection of Whipple Avenue and East

Avenue; commencing north approximately 835 feet then turning in an east southeasterly direction

to the intersection of Spring Lake Road, Joslin Road and Branch River; following the Branch River

in a northeasterly direction to the Nasonville Fire District line; then turning in a northwesterly

direction along the Nasonville Fire District to the southeast corner of Lot 1, Map 8; turn westerly

263.48 feet along the southern boundary of Lot 1, Map 8; then northerly 332.62 feet; then westerly

1,119.17 feet along said lot 1, Map 8 and along the southerly boundary of Lot 3 Map 7; then north

83.80 feet to the Massachusetts state line, said point being the northwest corner of the Nasonville

Fire District boundary, and following said line due west to a point three hundred (300) feet beyond

Round Top Road; due southeast to the corner of Hill Road and Centennial Street; bordering the

Pascoag Fire District line, southerly through the intersection of Union Avenue and Oak Street to a

point nine hundred twenty-three (923) feet west of Memorial Bridge on Main Street, Pascoag; due

southeast from this point to the intersection of Mowry Street and Lapham Farm Road, continue

southeast along the Pascoag Fire District line to the Glocester town line; due east on said line to the

point of beginning, as recorded at the Harrisville Fire District office.

     (b) Management and Officers

     A. Operating Committee -- Establishment.

     1. Except as otherwise provided herein, all the powers of the district shall be vested in and

exercised by an operating committee elected by the electors of the district and consisting of seven

(7) members who shall be residents and electors of the district and chosen as follows: at the first

annual meeting following the passage of this charter, two (2) members shall be elected for one (1)

year, two (2) members for two (2) years, and three (3) members for three (3) years; and, thereafter,

as the terms of the members expire, there shall be elected two (2) or three (3) members as the case

may be.

     2. Any vacancy that may occur in the operating committee shall be filled by a majority vote

of that committee, and the person so elected shall serve until the next annual or special meeting of

the district, at which time an election shall be held to fill the remainder of the unexpired term of the

departed member.

     B. Powers of the Operating Committee. The operating committee shall be responsible for

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the overall management of the district. It shall have charge and control of all property of the district

and shall have full authority to exercise all the powers and functions necessary to carry out the

purposes of the district. The operating committee's responsibilities shall include the following:

     1. To make a full and complete report at each annual meeting of the district of the

operations of the district and such other events and transactions as it may deem necessary and

appropriate.

     2. To prepare and submit a proposed budget and tax levy for all operations of the district

other than the water department for approval by the electors of the district at the annual meeting.

     3. To prepare and submit a proposed budget and anticipated revenues of the water

department for approval by the electors of the district at the annual meeting.

     4. To insert new items or increase any items in the budgets of the district whenever the

same may be deemed necessary or convenient, provided no budget may be exceeded by more than

2.5% without prior approval of the district at a special meeting.

     5. To have control of all fire apparatus belonging to the district except when under the

control of the fire chief as provided herein.

     6. To appoint a fire chief, superintendent of the water department, collector of taxes, and

such other officers and employees as it shall deem necessary to conduct the business of the district,

which said appointees, officers and employees shall act under the direction and control of the

operating committee, and to fix their salaries.

     7. To employ a certified public accountant to annually audit all accounts of the district.

     8. To act as a board of abatement with power to abate any district taxes, upon

recommendation of the district board of assessors established herein and in accordance with

applicable law.

     9. To act as the board of canvassers for the district and prepare the voting list to be used at

any annual or special meeting of the district.

     10. To make appointments to fill any vacancies on the operating committee or district

offices until the next annual or special meeting of the district.

     C. Officers.

     1. The officers of the district shall include a moderator, clerk, and three (3) assessors, who

shall comprise the district board of assessors. The duties and powers of said officers shall be such

as other officers of towns in this state. All officers must be residents and electors of the district.

     2. The assessors shall be elected as follows: at the first annual meeting following the

passage of this charter, one (1) assessor shall be elected for one (1) year, one (1) assessor shall be

elected for two (2) years and one (1) assessor shall be elected for three (3) years; and thereafter, as

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the terms of the assessors expire, one (1) assessor shall be elected each year for a term of three (3)

years.

     3. Unless otherwise provided in the by-laws of the district, all other officers shall be elected

at the annual meeting of the district to hold office for a term of one (1) year or until a successor is

elected and qualified. Vacancies occurring in any office may be filled for the unexpired term by

the operating committee.

     4. The chairperson shall oversee the day-to-day operation of the district personnel and shall

make any determinations necessary to maintain satisfactory operation, should a situation that

requires immediate attention to avoid interruptions to the district occur.

     (c) Electors and Meetings

     A. Electors. The inhabitants of the district qualified and registered to vote for elected

offices in the town of Burrillville shall be the electors of the district and shall be eligible to vote

and act at any annual or special meeting of the district.

     B. Annual Meeting. The annual meeting of the district shall be held on the second Tuesday

of August in each year.

     C. Notice. All meetings, whether annual or special, shall be held at some suitable place

within the territorial limits of the district. All such meetings shall be publicized by posting notices

thereof in at least five (5) public places in the district, not less than one week prior to the date on

which such meeting is called. Notice shall also be published not less than one week prior to the

meeting in a public newspaper which is published daily and has a circulation within the town of

Burrillville. It shall be the duty of the clerk or the moderator to call a special meeting upon written

application signed by twelve (12) electors of the district or upon the order of the operating

committee. Whenever the subject of ordering a tax or an amendment to this charter is to be acted

upon, the same shall be so stated in the notice; provided, that notice of an annual meeting need not

mention that a tax levy is to be acted upon.

     D. Voting List. The voting list too to be used at any annual or special meeting shall be

canvassed by the operating committee not more than forty-five (45) nor less than five (5) days

before the date of any such meeting. In preparing the district voting list, the operating committee,

sitting as the board of canvassers, shall canvas and correct the district voting list in the same

manner, or as near as may be, as provided by law for boards of canvassers of towns in this state;

provided, nevertheless, that it may rely upon the most recent registered voting list of the district as

compiled and maintained by the town of Burrillville.

     E. Quorum. Ten (10) electors shall be deemed to constitute a quorum for any meeting.

     F. Procedure

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     1. Upon the demand of at least one-fifth of the electors present at any district meeting, any

pending motion, resolution, or matter, other than a motion to adjourn or to amend a pending motion,

resolution, or matter, shall be called for a vote by the moderator.

     2. The clerk shall keep and maintain minutes of any meeting of the district, which shall

include the results of any votes taken. The minutes shall be read and approved by a vote taken at

the next annual or special meeting of the district.

     3. Except as otherwise provided in the by-laws of the district, a majority of electors present

and voting at any meeting of the district shall be necessary to approve any motion, resolution, or

matter called to vote.

     4. In the event that any elector shall desire to present any motion, resolution, or matter at

an annual meeting of the district that would require the appropriation of money, said elector shall

first present said motion, resolution, or matter to the operating committee at the advertised public

meeting of the operating committee scheduled immediately before the date of the annual meeting

of the district. In the event that said motion, resolution, or matter is rejected by the operating

committee, the elector may then present the same motion, resolution, or matter at the annual

meeting under new business, provided said elector files in writing a copy of said motion, resolution,

or matter with the operating committee at least ninety six (96) hours prior to the annual meeting.

In the event any motion, resolution, or matter is proposed at an annual meeting without first

complying with the aforesaid prerequisites, said motion, resolution, or matter shall be ruled out of

order.

     5. The district may enact such by-laws as it deems necessary and appropriate for the

regulation and conduct of its meetings as provided herein.

     (d) Taxation

     A. Authorization.

     1. At any meeting of the district, the electors of the district shall have the power to order

such taxes and provide for assessing and collecting the same on the ratable real estate and tangible

personal property in the district, including an excise tax on motor vehicles in accordance with

R.I.G.L. section 44-34-1, et seq., and as the same may be amended from time to time, as they shall

deem necessary to carry out the purposes of the district as provided herein. At any such meeting,

the electors shall also be empowered to authorize the board of assessors to impose a minimum tax

of not less than $25.00 to be applied to any ratable real estate and tangible personal property, the

assessment for which would be less than the minimum tax at the uniform assessed rate.

     2. Such taxes so ordered shall be assessed by the board of assessors of the district on the

taxable inhabitants thereof and the property therein according to the last valuation made by the

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assessors of the town of Burrillville, adding however, any tax from property which may have been

omitted by said town assessors or afterwards acquired, and in all cases where the town assessors

have included property within and without the district in one valuation, the assessors of the district

shall make an equitable valuation of that portion of said property lying within the district.

     3. The operating committee, or those appointed by the operating committee are also

empowered to enter into binding agreements with adjacent water or fire districts relative to the

reasonable and equitable apportionment of taxes assessed on properties located along their shared

boundaries.

     4. In assessing and collecting said taxes, the officers of the district shall conduct such

proceedings and follow such procedures as the law requires be followed by the corresponding

officers of towns in assessing and collecting town taxes, to the extent practicable.

     5. The district may provide for such deduction from any tax assessed if paid by an

appointed time, or for such penalty by way of percentage of the tax if not paid at the appointed

time, not exceeding eighteen percent (18%) per annum, as it may deem necessary to insure punctual

payment. The district may also include liens and/or legal fees required to collect said payments.

     B. Assessment.

     1. The district operating committee shall annually levy and assess a tax at such a rate so

as to provide revenue sufficient to pay all operating expenses together with any other items set forth

in the budget for the current year, on all property within the limits of the district, or belonging to

the residents thereof, which is liable to taxation under this charter, said levy and assessment to be

made by the operating committee on or before August 15th in each year. The operating committee,

upon completing the assessment for the year, shall date and sign the same.

     2. The tax assessed shall be due and payable on or before October 1st in each year and all

taxes remaining unpaid on October 31st in each year shall thereafter bear interest at a rate

established by the operating committee.

     3. The tax rate shall be based on the assessment of real and personal property of the taxable

inhabitants of the district as compiled and maintained by the town of Burrillville and described in

the tax rolls, except as otherwise provided herein. Exemptions as described in the town tax rolls

shall be honored, but the amount in each category is to be determined by the operating committee.

     C. Collection.

     1. The collector of taxes, shall give his or her bond with corporate surety in an amount and

form satisfactory to the operating committee, the premiums for which shall be paid by the district.

     2. Upon the commitment to him or her of the assessment, the collector shall collect all taxes

levied and assessed, said taxes to be payable on or before such time as provided herein or as the

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district may determine. The collector of taxes shall proceed on behalf of the district in accordance

with applicable law to collect all taxes assessed and unpaid as of October 1st of each year. The

collector of taxes shall close his or her books on the last day of September in each year.

     3. The collector shall thereafter prepare and submit at the annual meeting, or at a special

meeting if called upon to do so by a vote of the district, an annual report, audited by a certified

public accountant and confirmed and approved by the operating committee, describing the

condition of the district finances and the receipts and expenditures for the fiscal year preceding the

meeting.

     4. The collector of taxes for the district shall have the same powers and authority as are

conferred by law on collectors of taxes in the towns of this state.

     D. Imposition of fees in lieu of taxes.

     1. The operating committee shall have the power to determine an amount of taxes or fees

to be imposed in lieu of taxes to be paid each year on account of the real or personal property used

in connection with any facility for the generation of electricity located in the district,

notwithstanding the valuation of such property or the rate of tax. Such determination shall be for a

period not to exceed twenty-five (25) years. Any fees payable hereunder shall constitute a lien on

the property and shall bear interest and be otherwise collectible as may be provided in any contract

or agreement.

     2. The operating committee shall be vested with the power and authority to enter into any

contract or agreement regarding the amount of taxes or fees to be imposed in lieu of taxes upon any

facility for the generation of electricity located in the district. Such contract or agreement may

contain such terms and conditions as the operating committee, in its sole discretion, shall deem

necessary and appropriate, including, but not limited to, a provision indemnifying the owner or

lessors of such real or personal property used in connection with any facility for the generation of

electricity from third parties claiming payments for any reason, including the provision of fire

suppression and emergency medical and ambulance services or such other services as the district

may provide.

     3. All prior agreements between the district and the owner or lessors of such real or personal

property used in connection with any facility for the generation of electricity or actions taken in

connection therewith are hereby ratified in all respects.

     E.(e) Fire Department

     A. Fire department -- Establishments. The district shall have the power to establish, in such

form of entity as it may deem appropriate, a fire department for the purposes of providing fire

suppression, and emergency medical, rescue and ambulance services as provided in this charter.

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The operating committee may appoint and employ as many persons, including officers, and make

any and all provisions or by-laws for the purpose of organizing, establishing, and operating the fire

department as it may deem necessary and appropriate.

     B. Fire Chief.

     1. The chief of the fire department shall be appointed for a term of three (3) years by and

under the direction and control of the operating committee. The chief shall be responsible for

supervising the day to day affairs and operation of the fire department.

     2. The fire chief shall be in sole command of fire department personnel, apparatus, and

equipment from the time they leave the fire station and until they return, and only the chief shall

direct orders to the officers and personnel of the fire department when so deployed. If, due to illness,

absence or for any other cause, the chief is unable to act, the senior officer of the department shall

assume all the duties of the chief.

     3. The operating committee shall consult with the chief with respect to the purchase of fire

apparatus or major equipment purchases.

     4. The superintendent of the water department shall notify the chief of any condition or

situation that would endanger property within the district in the event of fire or other emergency.

     C. Emergency powers. At any fire or emergency, the chief, or in his or her absence, the

senior officer, shall have the power to take any and all action deemed necessary and appropriate to

stop the progress of any fire, to suppress all disturbances and maintain order, to order any or all

persons to leave the vicinity of any fire, and to command from the inhabitants of the district all

necessary assistance in suppressing the fire and preserving and protecting life and property, and

any person violating such an order may be prosecuted and subject to the same penalties as provided

in section (g) B. below.

     F.(f) Water Department

     A. Water department -- Establishment. The district shall have the power to establish, in

such form of entity as it may deem appropriate, a water department for the purpose of procuring,

distributing, and selling water as provided in this charter. The operating committee may appoint

and employ as many persons including officers, and make any and all provisions or by-laws for the

purpose of organizing, establishing, and operating the water department as it may deem necessary

and appropriate.

     B. Superintendent. The superintendent of the water department shall be appointed by and

under the direction and control of the operating committee. The superintendent shall be responsible

for supervising the day to day affairs and operation of the water department.

     C. District water board.

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     1. The operating committee shall serve as the district water board and be responsible for

overall management and control of the water department.

     D. Non-discrimination in rates. The price charged to outside customers, per unit of water,

shall not be greater than the price charged to district customers for the same unit of water.

     E. Exclusive right to distribute. The district shall have the exclusive right to distribute and

charge a fee for any water or water supply it procures or obtains.

     F. Water charges as lien. The owner of any house, building, tenement, or estate shall be

liable for the payment of the price or rent or rates fixed by the district for the use of water furnished

by the district to the owner or occupant of the house, building, tenement, or estate; and the price,

rent, or rates shall be a lien upon the house, building, tenement, or estate in the same way and

manner as taxes assessed on real estate are liens, and, if not paid as required by the district, shall

be collected in the same manner that taxes assessed on real estate are by law collected; provided,

however, that the district may charge interest on delinquent payments at a rate of not more than

eighteen percent (18%) per annum, all in accordance with R.I.G.L. section 39-15-12.

     G.(g) By-laws

     A. General. The district may enact any and all by-laws deemed necessary and appropriate

to carry out its purposes as provided in this charter; provided, that no greater penalty may be

imposed than is prescribed in section (g) B. below, and that the same not be in violation of or

repugnant to this charter or any laws of this state.

     B. Emergencies. The district shall have the power to enact by-laws prescribing the duties

of the inhabitants of the district during a fire or other emergency and for the purpose of enforcing

the commands of fire department officers with respect to suppressing disorder, guarding or

removing property, or rendering other services in time of fire, and also for the protection of water

pipes, hydrants, safety valves, water gates or other apparatus or property of the district, and for any

breach of such by-laws may provide a penalty not exceeding a fine of one thousand dollars ($1,000)

to be recovered for the use of the district, or imprisonment for a term not exceeding thirty (30) days,

which said penalties may be enforced by prosecution on complaint of any officer of said fire

department before any court of competent jurisdiction. Any such prosecution must first be

authorized and approved by the operating committee.

     (H)(h) Bonds and other obligations.

     A. Power to issue bonds and other instruments of indebtedness. The district shall have the

power and authority to issue bonds and any other instruments of indebtedness and to secure the

payment of the same in any manner and subject to such terms and conditions as may be deemed

necessary and appropriate and set forth in the resolution authorizing said bonds or other instruments

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of indebtedness. The operating committee shall authorize the issuance of any bonds or other

instruments of indebtedness in a resolution, which shall thereafter be approved by the electors of

the district at any annual or special meeting. Any bonds or other instruments of indebtedness shall

be signed by the clerk or any member of the operating committee designated in the resolution

authorizing the same and shall bear the seal of the district or a facsimile thereof.

     B. Limitation on alteration of powers of the district. The state does hereby pledge to and

agree with the holders of the bonds and other instruments of indebtedness of the district that the

state shall not limit or alter rights hereby vested in the district until the bonds or other instruments

of indebtedness, together with interest thereon, and all costs and expenses in connection with any

actions or proceedings by or on behalf of the holders thereof, are fully met and discharged or

otherwise provided for.

     (I)(i) Eminent Domain.

     A. Authorization to take private property. In order to carry out the purposes of this charter,

the district shall have and enjoy all the authority and power conferred by the provisions of R.I.G.L.

Section 39-15-1, et seq., entitled "Water Supply," as the same may be amended from time to time;

or, in the alternative, the district may elect to utilize the and procedures for condemnation set forth

in R.I.G.L. Section 24-1-1, et seq., entitled "Laying Out and Taking by Cities and Towns," as the

same may be amended from time to time. When utilizing the condemnation procedures pursuant to

either of the foregoing provisions, the district shall have all the authority and power of and be

subject to all the duties and liabilities imposed upon electors of towns, towns, or town councils by

said provisions.

     B. Installation and maintenance of pipes and other apparatus. The district may, within and

without the district and the town of Burrillville and also without the consent of the town, install,

make, construct, and maintain pipes, aqueducts, conduits, machinery, or other equipment or

appliances, or authorize the same to be done, and regulate the used thereof to the extent deemed

necessary or appropriate to carry out the purposes of the district. The power conferred upon the

district by this provision shall include the authority to carry any works to be constructed over or

enter upon and excavate under any highway, turnpike, railroad, street, or other public way for the

purpose of locating, laying, constructing, building, installing, operating, maintaining, altering,

repairing or replacing any pipes, appliances or other such apparatus, upon or beneath the surface,

in such a manner so as not to permanently obstruct free travel thereon. In exercising the power

granted under this provision, the district shall, except in emergencies, provide advance notice to

and otherwise cooperate and coordinate with the town to ensure that any such installation or

excavation shall be carried out with reasonable dispatch and with as little interference with and

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inconvenience to the rights of the public as may be feasible. The district shall restore any highway,

turnpike, railroad, street, or other public way as near as may be possible to its original condition of

safety and utility after any such installation or excavation.

     (J)(j) Miscellaneous.

     A. Tax exemption. It is hereby declared that the district and the carrying out of its corporate

purposes are in all respects for the benefit of the people of the state, and for the improvement of

their health, safety, welfare, and prosperity, and that the district will be performing essential

governmental functions in the exercise of the powers conferred by this charter. Accordingly, the

district shall be required to pay no taxes or assessments or sums in lieu of taxes to the state or any

political subdivision thereof upon any of the property acquired by it or under its jurisdiction,

control, possession, or supervision or upon its activities or operations or upon any earnings,

revenues, moneys, or other income derived by the district, and that the bonds issued by the district

and any income therefrom shall at all times be exempt from taxation.

     B. Costs of collection. In addition to any other sums to which it may be entitled in

accordance with this charter and applicable law, in any action or proceeding to collect taxes

assessed or fees imposed in accordance with this charter, the district shall be entitled to also collect

the reasonable costs of collection, including attorneys fees.

     C. Public customers -- Non-discrimination. The district shall charge any city, county, town,

or water or fire district for the use of any facility of or services rendered by or any water,

commodities, or other utilities furnished to it by the district at rates applicable to other consumers

of such utilities or services.

     D. Not public utility. Notwithstanding the definition set forth in R.I.G.L. Section 39-1-

2(20), and as the same may be amended from time to time, the district shall not be considered a

"public utility" otherwise subject to regulation in accordance with applicable law, as long as the

price charged to outside customers per unit of water, light, or power limited to streetlights is not

greater than the priced price charged to district customers for the same unit of water, light, or power

limited to streetlights.

     E. Open meetings law. The district shall comply with the state Open Meetings Law,

R.I.G.L. Section 42-46-1, et seq., and as the same may be amended from time to time.

     F. Access to public records. The district shall comply with the state Access to Public

Records Act, R.I.G.L. Section 38-2-1, et seq., and as the same may be amended from time to time.

     G. Award of contracts. The district shall comply with the state Award of Municipal

Contracts Act, R.I.G.L. Section 45-55-1, et seq., and as the same may be amended from time to

time.

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     H. Continuation of district. Any act, resolution, contract, employment, and/or any other

obligation, matter, or thing undertaken by the district in accordance with its charter as originally

granted, and as the same has been amended from time to time, shall be deemed to be continued and

in full force and effect under the terms of the charter as amended and granted herein.

     I. Amendment. This charter may be amended by a majority of electors present and voting

at any annual or special meeting of the district, provided noticed thereof states that amendment to

the charter shall be considered at such meeting. An amendment to the charter shall be effective only

upon passage of an act by the general assembly amending the charter in conformity with such prior

vote of the district.

     SECTION 2. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby

amended by adding thereto the following chapter:

CHAPTER 39.2

CLEAR RIVER ELECTRIC AND WATER DISTRICT

     45-39.2-1. Short title.

     This act shall be known and may be cited as the "Clear River Electric and Water District

Act of 2024."

     45-39.2-2. 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) "Electric and water district" means the Clear River electric and water 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 utility district and Harrisville fire

district water department as defined above and not to include the fire protection, suppression and

prevention functions or the emergency medical, rescue and ambulance services of the Harrisville

fire district.

     (ii) Exercise certain additional powers as a 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 electric and water district as defined in this section.

      (2) "Fire district" means the Harrisville fire district created by the act passed as chapter

637 of the Public Laws of 1910, entitled "An Act to Incorporate the Harrisville fire district" as

thereafter amended and supplemented from time to time.

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     (3) "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, suppression and prevention operations and/or the emergency

medical, rescue and ambulance services conducted prior to, on and after January 1, 2025, by the

fire district.

     (4) "Pascoag utility district" means that quasi-municipal corporation, district and political

subdivision of the state established by and through Pub. L. 2001, ch. 12, § 1, effective April 4,

2001, to have and succeed to the utility powers and functions held and exercised prior to that date

by 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, and further having such additional powers, rights, and functions as set forth in title 45

chapter 58.

     (5) "Qualified voter" means any person whose name appears on an active account with the

Clear River electric and water district and who resides in the villages served by Clear River electric

and water district or owns property in the villages served by Clear River electric and water district.

     (6) "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 January 1, 2025, by the Pascoag utility

district and the Harrisville fire district, and on and after January 1, 2025, by the Clear River electric

and water district.

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

revenue or general obligation bond issued by the Pascoag utility district and Harrisville fire district

prior to January 1, 2025, 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 January 1, 2025.

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

Pascoag fire district, as defined above and the Harrisville fire district as defined above and the

geographic area located within the boundaries of any other fire district that may be served by the

Clear River electric and water district from time to time.

     45-39.2-3. Purpose.

     This chapter is intended to:

     (a) Establish the Clear River electric and water district as the successor to the utility

functions fulfilled prior to January 1, 2025, by the Pascoag utility district and the Harrisville fire

district;

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     (b) Provide for the orderly separation and transfer of those utility functions and related

utility assets and utility bond obligations (without impairment thereof) from the Pascoag utility

district and the public water supply functions of the Harrisville fire district to the electric and water

district;

     (c) Provide for the retention and fulfillment of the fire protection and emergency medical

and rescue functions and fire protection assets of the Harrisville fire district by the fire district; and

     (d) Authorize and enable the electric and water district to provide such other utility

products and services as may be authorized, from time to time, by the electric and water district’s

board of utility commissioners.

     45-39.2-4. Clear River electric and water district established.

     There is hereby created a quasi-municipal corporation, district and political subdivision of

the state, to be known as the Clear River electric and water district, the boundaries of which shall

be coterminous with the boundaries of the utility service area 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 and such other

areas as provided for by this chapter and the boundaries of the utility service area of the Harrisville

fire district as established in and by chapter 637 of the Public Laws of 1910, as thereafter amended

and supplemented from time to time, and such other areas as provided for by this chapter. The

electric and water district shall, upon January 1, 2025, have and succeed to the utility powers and

functions heretofore held and exercised by the Pascoag Fire District and the Harrisville fire district,

and shall further have and be entitled to exercise the additional powers, rights and functions set

forth in this chapter.

     45-39.2-5. Board of utility commissioners of the Clear River electric and water district

established.

     There is hereby created a board to be known as the board of utility commissioners of the

Clear River electric and water district. The powers of the electric and water district as set forth in

this chapter, or conferred on the electric and water district by operation of this chapter, shall be

vested in and exercised by a majority of the members of the board of utility commissioners then in

office; provided, however, that the board of utility commissioners in its discretion may delegate

executive functions to general managers, by resolution, rule or otherwise.

     45-39.2-6. Membership of board of commissioners.

     (a) The board of utility commissioners shall consist of not more than seven (7) nor less

than five (5) 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 unless the board consists of only

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five (5) members, in which case three (3) members shall constitute a quorum and a vote of three

(3) 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 comprised of three

(3) members of the utility commissioners currently holding office under the auspices of the Pascoag

utility district, three (3) members of the operating committee of the Harrisville fire district (to be

selected by the Harrisville fire district operating committee), and one member to be elected by

qualified voters at a special election. The terms of such initial board members shall be three (3)

years for one member elected and the most senior member from the Pascoag utility district and the

Harrisville fire district, and a two (2) year term for the next most senior member of each, and one-

year term for the third most senior member of each, each of whom shall continue to serve until their

initial terms expire. Thereafter, the members of the board of utility commissioners of the Clear

River electric and water district shall be elected for a term of three (3) years by ballot of qualified

voters otherwise eligible to vote in the annual or special election in succeeding years.

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

residents of the villages of Pascoag, Harrisville or Oakland. Such residents of the villages of

Pascoag, Harrisville and Oakland and whose name appears on an active account with the Clear

River electric and water district shall be eligible to be a candidate for election to any one of the

above offices; provided, however, that they 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. 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 candidate to 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 chairperson who shall assume all duties of the chairperson in the chairperson’s

absence; and

     (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 electric and water district, and who shall have charge

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and control of the money and deposits of the electric and water district.

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

management and conduct of the electric and water district’s affairs, and other aspects of the

governance of the electric and water 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

utility district.

     (e) In order to ensure that the status of the electric and water 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 electric and water 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 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 electric and water district employees or consultants, are deemed to fall within

the circumstances defined in § 42-46-5(a)(7).

     45-39.2-7. Compensation of the board -- Employees of the electric and water district.

     (a) Each member of the board of utility commissioners shall be entitled to receive

compensation of not less than twenty-five dollars ($25.00) per year and not more than three

thousand dollars ($3,000) per year for attendance at scheduled and special meetings of the board

of utility commissioners, and shall be entitled to reimbursement of the actual and necessary

expenses incurred in the performance of their official duties. The salaries, compensation and

expenses of all members and officers of the board, and all employees and agents of the electric and

water district, shall be paid solely out of funds of the electric and water district. No part of the

earnings of the electric and water district shall inure to the benefit of any private person.

     (b) The board shall appoint general managers and may enter into employment contracts

with its executive employees. The board shall have the authority to approve employee benefit plans,

including fringe benefits such as, but not limited to, pension and health and disability and other

insurances.

     (c) No member of the board of utility commissioners shall directly or indirectly engage or

participate in the proceeds of any contract or agreement to supply anything of value or receive

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anything of value from the electric and water district. The prohibition set forth in this subsection

may be waived by a vote of five (5) members of the board of utility commissioners, if and only if

the board of utility commissioners shall have first obtained an opinion of the attorney general and/or

the Rhode Island ethics commission based on full disclosure of all relevant facts that the waiver

does not contravene state law and is otherwise in the best interests of the consumers served by the

electric and water district.

     (d) The board of utility commissioners may elect to accept the provisions of chapter 21 of

title 45 ("Retirement of Municipal Employees") by resolution, the acceptance to be forwarded to

the state retirement board by the board of utility commissioners in the same manner as provided in

§ 45-21-4.

     45-39.2-8. Powers of the electric and water district.

     (a) The electric and water district shall have the power:

     (1) To acquire real or personal property and tangible or intangible personal property by

voluntary purchase from the owner or owners of the property, and to the extent that the board of

utility commissioners deems it advisable, to acquire property held by a corporation through

acquisition of the stock of the corporation and dissolution of the corporation;

     (2) To acquire real property, fixtures, and rights and interests in real property within its

utility service area by eminent domain, subject to the supervision of the public utilities commission

in the manner prescribed in § 39-1-31, and the electric and water district may, within and without

the district and the town of Burrillville and also without the consent of the town, install, make,

construct, and maintain pipes, aqueducts, conduits, machinery, or other equipment or appliances,

or authorize the same to be done, and regulate the use thereof to the extent deemed necessary or

appropriate to carry out the purposes of the electric and water district. The power conferred upon

the electric and water district by this provision shall include the authority to carry any works to be

constructed over or enter upon and excavate under any highway, turnpike, railroad, street, or other

public way for the purpose of locating, laying, constructing, building, installing, operating,

maintaining, altering, repairing or replacing any pipes, appliances or other such apparatus, upon or

beneath the surface, in such a manner so as not to permanently obstruct free travel thereon. In

exercising the power granted under this provision, the electric and water district shall, except in

emergencies, provide advance notice to and otherwise cooperate and coordinate with the town to

ensure that any such installation or excavation shall be carried out with reasonable dispatch and

with as little interference with and inconvenience to the rights of the public as may be feasible. The

electric and water district shall restore any highway, turnpike, railroad, street, or other public way

as near as may be possible to its original condition of safety and utility after any such installation

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or excavation;

     (3) To own, operate, maintain, repair, improve, enlarge, and extend, in accordance with the

provisions of this chapter, any property acquired under this section all of which, together with the

acquisition of the property, are hereby declared to be public purposes;

     (4) To produce, purchase, acquire, distribute, and sell water and electricity at wholesale or

retail within or without its utility service area subject to franchise rights of other utilities; to lay

down, construct, own, operate, maintain, repair, and improve mains, pipes, wells, towers, and other

equipment and facilities necessary, appropriate or useful for those purposes; and to contract with

others for any or all of the foregoing purposes;

     (5) To produce, buy, sell, and trade electric capability, power, or energy products or

services at wholesale or retail; to purchase for its own use or for resale electric transmission service

and ancillary services; and to engage in any other transaction with respect to electricity or electricity

products that was heretofore authorized for the Pascoag utility district or investor-owned electric

companies operating as domestic electric utilities within the state (including participation in

generating facilities as authorized by chapter 20 of title 39); provided, that the electric and water

district electric operations shall operate and be subject to regulation of its retail rates for electricity

under title 39 when operating within its utility service area; and provided, further, that except to the

extent otherwise provided with respect to the exercise of its power of eminent domain under § 45-

39.2-8(2), the electric and water district water operations shall not be subject to regulation of its

retail rates or supervision or regulation by any department, division, district, board, bureau, or

agency of the state or any of its political subdivisions, including, without limitation, the public

utilities commission and the division of public utilities under title 39 when operating within it utility

service area.

     (6) To acquire, own, lease, operate, maintain, repair, and expand facilities and equipment

necessary, appropriate, or useful to the operation of other utilities, including, but not limited to,

communications services such as Internet service, high-speed data transfer, local and long-distance

telephone service, community antenna television service, and to engage in the operation of such

utilities;

     (7) To sue and be sued;

     (8) To adopt and alter a corporate seal;

     (9) To acquire, hold, use, lease, sell, transfer, assign, or otherwise dispose of any property,

real, personal, or mixed, or any interest therein, for its corporate purposes, and to mortgage, pledge,

or lease any such property;

     (10) To make and adopt bylaws for the management and regulation of its affairs;

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     (11) To borrow money for any of the purposes or powers granted to it under or by operation

of this chapter, including the creation and maintenance of working capital, and to issue negotiable

bonds, notes, or other obligations, to fund or refund the same, and to secure the obligation of such

bond, notes, or other obligations in any case by pledge of, or security interest in, the revenues and

property of the electric and water district.

     (12) To fix rates (subject to the requirements of title 39 in the case of retail electric rates

within its utility service area) and collect charges for the use of the facilities or services rendered

by or any commodities furnished by the electric and water district;

     (13) To contract in its own name for any lawful purpose that would effectuate the purposes

and provisions of this chapter; to execute all instruments necessary to carry out the purposes of this

chapter; and to do all things necessary or convenient to carry into effect and operation the powers

granted by this chapter; and

     (14) Until, and only until, such time as those utility bond obligations to which the Clear

River electric and water district succeeds under or by operation of this chapter shall have been

retired, defeased, or otherwise satisfied in their entirety, to levy property tax assessments upon

property owners within its utility service area for the purpose of supporting utility bond obligations

of the Pascoag utility district and those of the Harrisville fire district outstanding as of January 1,

2025, in the same manner and to the same extent as each of the Pascoag utility district and

Harrisville fire district was authorized to do so under chapter 58 of title 45 ("Pascoag utility

district"), as to Pascoag utility district, and chapter 637 of Public Laws of 1910 as to Harrisville

fire district, and each as thereafter amended and supplemented from time to time.

     45-39.2-8.1. Limitation of powers.

     All services provided by the electric department of the electric and water district that

constitute public utility services within the meaning of § 39-1-2 or community antennae television

systems (CATV) services within the meaning of § 39-19-1 shall be subject to the applicable

jurisdictions of the public utilities commission and the division of public utilities and carriers.

     45-39.2-9. Separation of utility assets and fire protection assets.

     Upon January 1, 2025, ownership of the utility assets previously titled to, or otherwise

owned or controlled by, the Pascoag utility district and the Harrisville fire district shall be

transferred to the electric and water district, subject to any security interest of record relating to

such utility assets, which security interests, if any, shall remain in full force and effect and be

unimpaired by the transfer of ownership of the utility assets. All fire protection assets that are the

property of Harrisville fire district on January 1, 2025, shall remain the property of the Harrisville

fire district. To the extent that individual assets presently titled to the Harrisville fire district cannot

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be classified as either utility assets or fire protection assets, the electric and water district and the

fire district shall negotiate in good faith to transfer title to such assets to one entity or the other,

with or without cost but in all cases preserving any applicable contract rights of third parties. The

electric and water district and the fire district may agree to joint ownership or control of assets that

cannot reasonably be classified as either utility assets or fire protection assets. Notwithstanding

anything in this chapter to the contrary, the electric and water district shall take ownership and

provide for the care and maintenance of fire hydrants located within the Harrisville fire district;

provided, the Harrisville fire district shall be granted full access to such hydrants in the performance

of its fire suppression duties, for which the electric and water district may charge a reasonable usage

fee.

     45-39.2-10. Succession of electric and water district to certain obligations of Pascoag

utility district and of Harrisville fire district.

     (a) On January 1, 2025, the electric and water district shall:

     (1) Succeed to and become subject to the utility bond obligations heretofore imposed by

any security interest or trust instrument upon the Harrisville fire district; and

     (2) Succeed to the precise position of Pascoag utility district, without any waiver or

augmentation of that position whatsoever, as to each wholesale power purchase or power sales

agreement, and each transmission service agreement or interconnection agreement heretofore

entered into by the utility district, that position to include such rights, claims or defenses as Pascoag

utility district may have had prior to January 1, 2025, with respect to any obligation of any such

contract.

     45-39.2-11. Bonds.

     (a) The electric and water district shall have the power and is hereby authorized from time

to time to issue its negotiable bonds for any of its corporate or district purposes and to secure the

payment of the bonds in such manner and by such means as may be provided in the resolution or

resolutions of the electric and water district authorizing the bonds, subject to the regulatory

jurisdiction of the division of public utilities and carriers in the manner prescribed in § 39-3-15,

where applicable.

     (b) The electric and water district is specifically authorized to secure bonds that it may

issue from time to time by a pledge of, or creation of other security interest in, the revenues of the

electric and water district, which pledge or security interest may be enforceable by the grant of a

conditional franchise, in the event of default in the payment of the bonds, entitling the secured party

or trustee to enter upon and take control of the electric and water district’s facilities and service and

to provide utility service and receive the revenues from the electric and water district’s facilities

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and service for such period, not exceeding forty (40) years, as may be necessary to recover all

payments due on the bonds.

     (c) The bonds of the electric and water district shall be authorized by resolution of the board

of utility commissioners. The bonds shall bear such date or dates, mature at such time or times not

exceeding forty (40) years from their issuance, bear interest at such rate or rates payable at such

time or times, be in such denominations and in such form, carry such registration privileges, be

executed in such manner, be payable in such medium of payment, at such place or places and such

time or times and be subject to redemption at such premium, if required, and on such terms, as the

resolution may provide. The bonds so authorized and issued pursuant to this chapter may be sold

at public or private sale for any price or prices that the electric and water district shall determine.

     (d) Pending the issuance of bonds in definitive form, the electric and water district may

issue bond anticipation notes or interim receipts in such form as the board of utility commissioners

may elect.

     (e) The electric and water district is hereby authorized to provide for the issuance of

refunding bonds of the electric and water district for the purpose of refunding any bonds then

outstanding which shall have been issued under the provisions of this chapter, including the

payment of any redemption premium on the bonds or interest accrued or to accrue to the earliest or

subsequent date of redemption, purchase or maturity of the bonds and, if deemed advisable by the

electric and water district, for the additional purpose of paying all or a part of the cost of acquiring,

constructing, reconstructing, rehabilitating, or improving any property, facilities or systems or parts

of property facilities or systems of the electric and water district. The proceeds of bond or notes

issued for the purpose of refunding outstanding bonds or notes may be applied, in the discretion of

the electric and water district, to the purchase, retirement at maturity or redemption of outstanding

bonds or notes either on their earliest or a subsequent redemption date and may, pending that

application, be placed in escrow in the same manner and through the same means as are generally

available to and incumbent upon political subdivisions of the state.

     (f) It is hereby declared that the electric and water district and the carrying out of its

corporate, district and political subdivision purposes is in all respects for the benefit of the people

of the state and for the improvement of their health, welfare and prosperity, and the electric and

water district will be performing an essential governmental function in the exercise of the powers

conferred by this chapter. The state therefore covenants with the holders of the electric and water

district’s bonds that the electric and water district shall not be required to pay taxes or payments in

lieu of taxes to the state or any other political subdivision of the state upon any property of the

electric and water district or under its jurisdiction, control or supervision, or upon any of the electric

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and water district’s activities in the operation or maintenance of the property or upon any earnings,

revenues, monies or other income derived by the electric and water district, and that the bonds of

the electric and water district and the income from the bonds shall at all times be exempt from

taxation by the state and its political subdivisions. Notwithstanding the foregoing, nothing in this

section shall be deemed to prohibit the division of public utilities and carriers, the public utilities

commission and the department of attorney general from assessing the utility in accordance with

the provisions of §§ 39-1-23, 39-1-26, 39-19-9, and 39-19-14.

     (g) The state does hereby pledge to and agree with the holders of the bonds, notes or other

evidence of an indebtedness of the electric and water district that the state will not limit or alter the

rights vested in the electric and water district until the bonds, notes or other evidence of

indebtedness, together with the interest on the debt, are fully met and discharged.

     (h) Any resolution or resolutions authorizing any bond, or any issue of bonds, may contain

provisions which shall be a part of the contract with the bondholders of the bonds thereby

authorized, as to:

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

or any part of the property of the electric and water district to secure the payment of any bonds or

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

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

each year and the use and disposition of the earnings and other revenue;

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

disposition thereof;

     (4) Limitations on the right of the electric and water district to restrict and regulate the use

of the properties in connection with which the bonds are issued;

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

put;

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

terms upon which additional bonds may be issued and secured;

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

amended or abrogated, the percentage of bondholders whose consent shall be required for such

amendment or abrogation, and the manner in which consent may be given;

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

water district may be deposited, and the investment of the funds;

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

     (10) Limitations on the power of the electric and water district to sell or otherwise dispose

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of its properties;

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

and auditors;

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

and water district to perform any covenant or agreement relating to a bond indenture;

     (13) Covenanting that as long as any bonds are outstanding the electric and water district

shall use its best efforts to establish and maintain its rates and charges at levels adequate at all times

to pay and provide for all operating expenses of the electric and water district, all payments of

principal, redemption premium (if any), and interest on bonds, notes or other evidences of

indebtedness incurred or assumed by the electric and water district, all renewals, repairs and

replacements to the property and facilities of the electric and water district, and all other amounts

which the electric and water district may be required by law to pay; and

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

or protection of the bonds.

     (i) The bonds of the electric and water district are hereby made securities in which all public

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

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

trust companies, savings banks, and savings associations (including savings and loan associations),

building and loan associations, investment companies and other persons carrying on a banking

business, all administrators, guardians, executors, trustees and other fiduciaries and all other

persons whomsoever, who are now or may thereafter be authorized to invest in bonds or other

obligation of the state may properly and legally invest funds including capital in their control or

belonging to them. The bonds are also hereby made securities which may be deposited with and

shall be received by all public officers and bodies of this state, and all municipalities and municipal

subdivisions, for any purpose for which the deposit of bonds or other obligations of this state is

now or may thereafter be required.

     45-39.2-12. Money of the electric and water district.

     (a) All money of the electric and water district, from whatever source derived, shall be paid

to the treasurer of the electric and water district. The money on receipt shall be deposited forthwith

in a separate bank account or accounts. The money in the accounts shall be paid out with a check

of the treasurer, on requisition by the electric and water district, or of any other person or persons

that the electric and water district may authorize to make the requisitions. All deposits of money

shall be secured by obligations of the United States or of the state, of a market value at all times

not less than the amount of deposits, and all banks and trust companies are authorized to give

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security for the deposits. The electric and water district shall have the power, notwithstanding the

provisions of this section, to contract with the holders of any of its bonds as to the custody,

collection, security, investment and payment of any money of the authority, or any money held in

trust or otherwise for the payment of bonds or in any way to secure the bonds, and to carry out any

contract notwithstanding that the contract may be inconsistent with the previous provisions of this

section. Money held in trust or otherwise for the payment of bonds or in any way to secure bonds

and deposits of money may be secured in the same manner as the money of the authority, and all

banks and trust companies are authorized to give security for the deposits.

     (b) Notwithstanding subsection (a) of this section, or any other provision of this chapter,

the board of utility commissioners shall have the power to authorize by resolution a loan or advance

from one utility fund of the electric and water district to another. Any such interfund advance or

loan shall be for a term specified in the authorizing resolution of the board of utility commissioners

and shall bear interest at a rate reasonably determined by the board of utility commissioners to be

consistent with the public interest implicated in all funds involved in the interfund loan or advance;

provided, however, that an interest rate set at the rate applicable to the electric and water district’s

most recent borrowing from a bank or other financial institution shall be presumptively reasonable

as the rate of interest for an interfund loan or advance.

     45-39.2-13. Alteration, amendment, repeal or severability.

     The right to alter, amend or repeal this chapter is reserved to the state, but no such

alteration, amendment or repeal shall operate to impair the obligation of any contract made by the

electric and water district under any power conferred by this chapter. If any section, clause,

provision or term of this chapter shall be declared unconstitutional, void, ultra vires or otherwise

ineffective in whole or in part, such determination of invalidity shall not otherwise affect the

validity or enforceability of any other provision of this chapter.

     45-39.2-14. Harrisville fire district.

     Nothing in this chapter shall be construed to effect in any way the continued existence and

operation of the Harrisville fire district’s fire prevention and suppression functions, its emergency

medical, rescue, and ambulance services, its charter and/or bylaws governing the fire district.

     45-39.2-15. Tax exemption.

     It is hereby declared that the Clear River electric and water district, in the carrying out 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 electric and water

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

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future by the electric and water district, or under its jurisdiction and/or control, possession or

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

income derived by the electric and water district. The bonds issued by the electric and water 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 Clear River electric and water district.

     SECTION 3. This act shall take effect on January 1, 2025, and all acts or parts of acts

inconsistent herewith are hereby repealed.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO AMENDING THE CHARTER OF THE HARRISVILLE FIRE DISTRICT

AND ESTABLISHING THE CLEAR RIVER ELECTRIC AND WATER DISTRICT

***

     This act would amend the Harrisville Fire District Charter allowing the district to provide

rescue services, fire suppression, medical and ambulance services, while removing water services

from those provided by the Harrisville Fire District. Water services would be provided by a separate

entity that is also established in the act, the Clear River Electric and Water District.

     This act would take effect on January 1, 2025, and all acts or parts of acts inconsistent

herewith would be hereby repealed.

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