CHAPTER 225


99-H 5728A am
Enacted 6/30/99


A N     A C T

RELATING TO THE NARRAGANSETT BAY WATER QUALITY MANAGEMENT DISTRICT COMMISSION

Introduced By: Representative John J. McCauley, Jr.

Date Introduced : February 2, 1999

It is enacted by the General Assembly as follows:

SECTION 1. Section 46-25-8 of the General Laws in Chapter 46-25 entitled "Narragansett Bay Water Quality Management District Commission" is hereby amended to read as follows:

46-25-8. Compensation -- Personnel. -- (a) The members of the commission shall be paid fifty dollars ($50.00) for attendance at a full commission meeting, up to a maximum of three thousand dollars ($3,000) per year as compensation, and shall be reimbursed for actual expenses incurred in carrying out their duties under this chapter, except that full time state and municipal employees shall not be paid for meetings held wholly during their normal working hours.

(b) Notwithstanding the provisions of any other law, no officer or employee of the state shall be deemed to have forfeited or shall forfeit his or her office or employment by reason of his or her acceptance of membership on the commission or his or her service thereto.

(c) The commissioners shall employ an executive director who shall also be the secretary and who shall administer, manage, and direct the affairs and business of the {DEL corporation DEL} {ADD commission ADD}, subject to the policies, control, and direction of the commissioners. The commissioners may employ technical experts and other officers, agents, and attorneys and fix their qualifications, duties, and compensation. {DEL The executive director and such technical experts, officers, agents, and attorneys so employed shall be in the nonclassified service of the state of Rhode Island and exempt from the provisions of chapters 8, 9, and 10 of title 36. DEL} {ADD Employees of the commission shall not, by reason of their employment, be employees of the state for any purpose, any provision of the general laws to the contrary notwithstanding, including, without limiting the generality of the foregoing, chapters 29, 39, and 42 of title 28 and chapters 4, 8, 9, and 10 of title 36. Those employees of the commission who were so employed prior to June 30, 1999 shall continue to be covered by RIGL 36-4-59, 36-5-7 and 36-5-8. Such employees shall not be entitled to the provisions of RIGL 36-4-59, 36-5-7 and 36-5-8 while employed by the commission. Such employees shall only be entitled to the provisions of such statutes in the event that any such employee returns to employment in the classified service in a department within the executive branch. ADD} The commissioners may employ other employees, permanent and temporary {DEL , and the employees shall be subject to the provisions of the classified service of the state and subject to the provisions of chapters 8, 9, and 10 of title 36 DEL}. The commissioners may delegate to one or more of its agents or employees such administrative duties as it may deem proper.

(d) The secretary shall keep a record of the proceedings of the commission and shall be custodian of all books, documents, and papers filed with the commission and of its minute book and seal. He or she shall have authority to cause to be made copies of all minutes and other records and documents of the commission, and to give certificates under the seal of the commission to the effect that the copies are true copies and all persons dealing with the commission may rely upon the certificates.

(e) The department of administration may furnish the commission with suitable offices and telephone service in the state house, state office building, or some other convenient location, for the transaction of its business.

(f) The commissioners of the commission shall, at regular intervals conduct business meetings for the purpose of carrying out its general business. The meetings shall be subject to the provisions of chapter 46 of title 42 entitled "open meetings".

SECTION 2. Section 46-25-10.1 of the General Laws in Chapter 46-25 entitled "Narragansett Bay Water Quality Management District Commission" is hereby repealed in its entirety.

{DEL 46-25-10.1. Employees of the city of Providence Fields Point sewage treatment plant. -- DEL{DEL Those persons who were employed by the city of Providence at the Fields Point sewage treatment plant and the pumping plant, in the sewer engineering section, and in the sewer construction and repair section on April 30, 1982, who subsequently became employees of the commission, in accordance with section 46-25-8, and are subject to the provisions of the classified service of the state, or who are in the nonclassified service of the state, shall be able to utilize their term of service with the city of Providence, as determined by the personnel administrator, for purposes of longevity computation as it applies to wages, vacation time, and longevity increases; provided, however, accrued vacation, sick leave, and all other municipal benefits shall not be transferred. DEL}

SECTION 3. Section 46-25.2-1 of the General Laws in Chapter 46-25.2 entitled "Acquisition, Merger, and Consolidation of Sewer Treatment Facilities of Cities, Towns, and Districts and the Narragansett Bay Water Quality Management District Commission" is hereby amended to read as follows:

46-25.2-1. Merger -- Effective date -- Transfer of assets and assumption of liabilities. -- (a) Subject to the agreement of the Narragansett Bay water quality management district commission and a city, town or district, the sewage treatment facilities of such city, town, or district {DEL shall DEL} {ADD may ADD} be merged with and into the Narragansett Bay water quality management district commission or acquired by the Narragansett Bay water quality management district commission {DEL . DEL} {ADD ; provided, however, the acquisition of any sewage treatment facility shall require the approval of the city or town council in the municipality where the facility is located. ADD} Upon the merger or acquisition, the district or any commission or other governing authority established by such city or town or the state to manage and operate the sewage treatment facilities shall cease to {DEL exist DEL} {ADD have control and authority over the facilities acquired ADD}; provided, however, that all actions shall be taken which are necessary to preserve any federal funds or federal assistance currently available to or expected to become available to the city, town, or district for sewage treatment facilities. The existence of the Narragansett Bay water quality management district commission shall continue unaffected and unimpaired by said merger or acquisition, and the Narragansett Bay water quality management district commission shall continue to be governed by chapter 25 of this title.

(b) The district, the city or town and any commission or governing authority established by the city or town or the state to manage and operate the sewage treatment facilities are hereby authorized to and may pass such resolutions, enter into such agreements and do all things deemed useful and necessary by it to effectuate the merger or acquisition; and the Narragansett Bay water quality management district commission is hereby authorized and may pass such resolutions, enter into such agreements and do all things useful and necessary by it to effectuate the merger or acquisition.

(c) Upon completion, the merger or acquisition shall be certified to the secretary of state by the executive director of the Narragansett Bay water quality management district commission.

(d) In accordance with the terms of the merger or acquisition agreement, on the effective date of the merger or acquisition, all property, real, personal, and mixed, and all debts due on whatever account, all other choses in action, and all and every other interest of or belonging to or due to the district or city or town related to the sewage treatment facilities, shall {ADD , unless otherwise agreed to, ADD} be taken and deemed to be transferred to and vested in the Narragansett Bay water quality management district commission without further act or deed; all persons employed by the district or city or town related to the sewage treatment facilities on the date of the merger or acquisition {DEL shall DEL} {ADD may ADD} be deemed employees of the Narragansett Bay water quality management district commission; and the title to any real estate, or any interest therein, vested in the district or city or town related to the sewage treatment facilities shall not revert or be in any way impaired by reason of the merger or acquisition. In accordance with the terms of the merger or acquisition agreement, the Narragansett Bay water quality management district commission shall, {ADD unless otherwise agreed to, ADD} also be responsible and liable for all the liabilities and obligations of the district or city or town related to such sewage treatment facilities; and any claim existing or action or proceeding pending by or against the district or city or town related to such sewage treatment facilities {DEL may DEL} {ADD shall ADD} be prosecuted as if the merger or acquisition had not taken place {DEL , or the Narragansett Bay water quality management district commission may be substituted in its place. DEL} {ADD . ADD} Neither the rights of creditors nor any liens upon the property of the district or city or town related to such sewage treatment facilities shall be impaired by the merger or acquisition. The merger or acquisition as provided for herein shall not impair the obligation of any contract or agreement nor abate any suit, action, or other proceeding lawfully commenced by or against the district or city or town related to the sewage treatment facilities, or any of its members or officers in relation to the discharge of their official duties, but a court of competent jurisdiction may, on motion filed within twelve (12) months after the effective date of the merger or acquisition, allow such a suit, action, or proceeding to be maintained by or against the Narragansett Bay water quality management district commission or any of its commissioners in relation to the discharge of their official duties. {ADD Upon a merger or acquisition as provided herein, should the employees of the merged facility ("merged employees") have been represented by a local, subsidiary or affiliate labor organization of one of the parent labor organizations already representing Narragansett Bay water quality management district commission employees, then the merged employees shall be eligible, if appropriate, for accretion into the existing local, subsidiary or affiliate of the Narragansett Bay water quality management district commission employees; and provided further, the Narragansett Bay water quality management district commission shall have no obligation to recognize or bargain with any labor organization which had represented the merged employees when they were employed by the merged facility. ADD}

(e) Upon completion of the acquisition, merger, or consolidation, the district or any commission or other governing authority established by a city or town or the state to manage and operate the sewage treatment facilities shall cease to {DEL exist DEL} {ADD have control and authority over the facilities acquired ADD} and any ordinance, charter provision, public law, general law, or bylaw governing the {DEL district, commission, DEL} {ADD district's, commission's or ADD} governing {DEL authority DEL} {ADD authority's ADD} {DEL or sewage treatment facility DEL} {ADD control over the facilities acquired ADD} shall be repealed in its entirety.

(f) {ADD Subject to the terms of the merger or acquisition agreement ADD} {DEL E DEL} {ADD e ADD}mployees of the sewage treatment facility, district, commission, or other governing authority who subsequently become employees of the Narragansett Bay water quality management district commission as a result of the acquisition, merger or consolidation, {DEL in accordance with section 46-25-8 and are subject to the provisions of the classified and nonclassified service of the state, DEL} shall {ADDbe subject to the provisions of sections 46-25-8 and 36-9-36, and may ADD} be able to utilize their term of service with the sewage treatment facility, district, commission, or other governing authority, as determined by the {DEL personnel administrator DEL} {ADD executive director ADD}, for the purposes of longevity computation as it applies to wages, vacation time, and longevity increases. Provided, however, accrued vacation, sick leave, and all other benefits with the municipality, sewage treatment facility, district, or other governing authority {DEL shall not DEL} {ADD may ADD} be transferred.

(g) Any sewer use fees, charges, and assessments in effect prior to the merger or acquisition shall remain in effect and may be assessed and collected by the commission in accordance with sections 46-25-5(9), 46-25-5(10), 46-25-21, 46-25-22 and 46-25-22.1. Any change in the sewer use fees, charges and assessments shall be subject to the approval of the public utilities commission.

SECTION 4. Section 36-9-36 of the General Laws in Chapter 36-9 entitled "Retirement System--Membership and Service Credits" is hereby amended to read as follows:

36-9-36. Narragansett Bay water quality management commission -- Merger -- New employees. -- (a) In the event that the Narragansett Bay water quality management commission, hereinafter referred to as "commission", shall acquire a sewage treatment facility, hereinafter referred to as "facility", of any city, town, or district, or in the event of the merger or consolidation of a facility into or with the commission, then any employee of the facility who subsequently becomes {ADD and remains ADD} an employee of the commission {DEL and subject to the provisions of the classified service of the state, shall be a member of the state retirement system as provided in chapters 8, 9, and 10 of this title DEL} {ADD who is a collectively bargained employee (within the meaning of section 410(b)(3)(A) of the Internal Revenue Code (26 U.S.C. section 410 (b)(3)(A) may elect to be treated as a transferred employee pursuant to section 36-9-44 ADD} and shall be granted service credits for his or her term of service with the facility prior to the transfer, provided:

(1) An actuarial study is made to determine the cost to include each new member of the system; and

(2) The contributions of both the employer and employee made prior to the transfer are paid to the state employees' retirement fund.

(b) If the employee elects not to have his or her funds transferred then that employee shall not receive credit for any prior service.

(c) Each employee shall have six (6) months from the time he or she becomes an employee of the commission to decide whether or not the employee wishes to have their funds transferred and receive credit for their prior service.

SECTION 5. Chapter 36-9 of the General Laws entitled "Retirement System--Membership and Service Credits" is hereby amended by adding thereto the following sections:

{ADD 36-9-44. Narragansett Bay Water Quality Management District Commission -- Transferred employees. -- ADD} {ADD (a) Definitions. -- For the purposes of this section: ADD}

{ADD (1) "Commission" means the Narragansett Bay Water Quality Management District Commission, a public corporation of the state of Rhode Island. ADD}

{ADD (2) "Employee contribution accumulation" means an amount equal to the total member contributions of the transferred employees which were picked up and paid by the commission to the trust maintained by the commission to receive such contributions during the interim period plus actual earnings on such contributions. The employee contribution accumulation attributable to each transferred employee shall be treated as such employee's accumulated contributions for purposes of chapter 9 and 20 of this title. ADD}

{ADD (3) "Employer contribution accumulation" means an amount equal to the required contributions applicable to the interim period. ADD}

{ADD (4) "Interim period" means the period from the transfer date to the date that the requirement of subsection (c) is satisfied. ADD}

{ADD (5) "Required contribution" means the amount or amounts required to be contributed to the retirement system by the commission in addition to the member contributions of the transferred employees in order to fund the benefits attributable to the transferred employees earned after the transfer date in accordance with the provisions of this section. The amount of the required contribution for any relevant period following the transfer date shall be an amount determined by multiplying the rate percent established in accordance with section 36-10-2 for the period by the compensation paid by the commission to the transferred employees during such period. The commission shall make its required contribution, other than the required contribution for the interim period, in bi-weekly installments, each to be made within three (3) business days following the pay day. The required contribution applicable to the interim period shall be made in accordance with the provisions of section (c) of this chapter. ADD}

{ADD (6) "Transfer date" means the effective date of this section. ADD}

{ADD (7) "Transferred employee" means any individual who was an employee of the commission on the date immediately preceding the transfer date, was an active member of the retirement system on the date immediately preceding the transfer date and who, from and after the transfer date, is an employee of the commission who is continuously a collectively bargained employee (within the meaning of the regulations issued under section 410(b)(3)(a) of the Internal Revenue Code (26 U.S.C. section 410(b)(3)(a)). ADD}

{ADD (b) Subject to subsections (c), (d) and (e) of this section, the period of service of any transferred employee with the commission after the transfer date shall be treated as service as an employee of the state of Rhode Island for purposes of chapters 8, 9 and 10 of this title. ADD}

{ADD (c) The provisions of subsection (b) of this section shall not apply unless within ninety (90) days following the date of enactment of this section, the commission transfers, or causes to have transferred from a trustee or other custodian, to the retirement system, an amount equal to the sum of the employee contribution accumulation and the employer contribution accumulation. ADD}

{ADD (d) Notwithstanding the foregoing, any individual who is a transferred employee shall not be treated as an employee of the state of Rhode Island under subsection (b) for any period of employment during which he or she elects to participate in any other retirement income benefit funded by the commission under a retirement plan sponsored by the commission and intended to qualify under section 401(a) or section 408(k) [26 U.S.C. section 401(a) or section 408(k)] of the United States Internal Revenue Code. ADD}

{ADD (e) Provided the requirement of subsection (c) of this section is satisfied: ADD}

{ADD (1) Any retirement or death benefit provided to or on behalf of a transferred employee during the interim period by the commission, or a trust established and maintained by the commission shall be considered provided by the retirement system and the amount of benefit paid by the commission or the trustee, shall reduce the amount required to be transferred to the retirement system under subsection (c) of this section. ADD}

{ADD (2) Subsection (b) shall continue to apply after the date of transfer specified in subsection (c) with respect to the period for which the commission thereafter makes its required contribution to the retirement system. In the event that the commission ceases to make its required contribution, the transferred employees shall be considered inactive members of the retirement system as of the date of such cessation. ADD}

{ADD (3) The member contributions of the transferred employees shall be considered picked up and paid by the commission to the retirement system after the interim period pursuant to the provisions of section 414(h)(2) [26 U.S.C. 414(h)(2)] of the United States Internal Revenue Code. The contributions so picked up shall be treated as employer contributions in determining the tax treatment under the United States Internal Revenue Code, and shall not be included as gross income of the transferred employee until such time as they are distributed. ADD}

{ADD (4) All employees (whether or not employed on the transfer date) who are members of a collective bargaining unit that, on the transfer date, had members who were contributing members of the employees' retirement system shall be contributing members of the employees' retirement system if so provided by a collective bargaining agreement. ADD}

{ADD 36-9-45. Narragansett Bay Water Quality Management District Commission. -- Uninterrupted state service. --ADD} {ADDTransferred employees, as defined in section 36-9-44, who return to employment with the state of Rhode Island directly from uninterrupted employment with the commission shall have their length of service at the commission deemed to be uninterrupted active state service for purposes of service credits in the retirement system, and{DEL/orDEL} {ADDforADD} the benefits provided for in sections 36-4-59, 36-5-7 and 36-5-8. ADD}

{ADD 36-9-46. Transfer of state employees to Narragansett Bay water quality management district commission -- Union employees. -- ADD} {ADD The transfer of state employees to commission employees shall not alter existing bargaining units, any provision of the general laws to the contrary notwithstanding. ADD}

SECTION 6. This act shall take effect upon passage.



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