It is enacted by the General Assembly as follows:

SECTION 1. Definitions. -- As used in this chapter, the following words and terms shall have the following meanings unless the context shall indicate another or different meaning:

(a) "Bonds and notes" as used herein, shall mean and include the bonds, notes, securities, or other obligations or evidence of indebtedness issued by the commission pursuant hereto all of which shall be issued under the name of or known as obligations of the town of West Warwick Sewer Commission and shall be secured solely by the revenues provided herein.

(b) "Commission" shall be construed to mean the " {DEL town of DEL} West Warwick Sewer Commission" as constituted and created by Article XVII of the Home Rule Charter for the town of West Warwick.

(c) "District" shall mean and include:

(1) The town of West Warwick and those portions of the town of West Greenwich and Coventry currently served by the commission;

(2) Any portions of such municipalities as may by resolution request that such portions be served by the district and which are accepted by the commission as part of the district; and

(3) Any other cities or towns or districts in Rhode Island or portions thereof as may, from time to time, join the district pursuant to agreement with the commission, providing for the acquisition of the sewage disposal system of such city, town or district, or the merger and consolidation of such district into the commission, or the management and operation of the sewage disposal system of such city, town or district by the commission.

(d) "Pollutant" shall be construed to mean the same as defined in section 46-12-1 of the Rhode Island general laws.

(e) "Person" shall include an individual, firm, partnership, association, and private or municipal corporation and federal or state agencies.

(f) "Project" shall be construed to mean and include the acquisition, ownership, design, operation, maintenance, construction, repair, rehabilitation, extension, improvement, development, sale, lease or disposition of, or the provision of financing {DEL , including the provision and maintenance of working capital DEL} for, all or any portion of the sewage disposal system.

(g) "Sewage" shall be construed to mean the same as "pollutant" as defined in section 46-12-1 of the Rhode Island general laws.

(h) "Sewage disposal system" means facilities for the collection, treatment or disposal of sewage, including, but not limited to, any sewage treatment plant, structure, combined sewer overflows, equipment, interceptors, mains, lateral sewers, pumping stations, or other property, real, personal, or mixed, for the treatment, storage, collection, transporting, or disposal of sewage, or any property or system to be used in whole in part for any of the aforesaid purposes, or any other property or system incidental to, or which has to do with, or the end purpose of which is any of the foregoing.

SECTION 2. District Created. -- There is hereby created a district to be known as the {DEL town of DEL} West Warwick Sewer District. The commission is hereby authorized to acquire all right, title and interest of the town of West Warwick in all sewage disposal systems for such consideration as the commission may determine.

SECTION 3. General Powers. -- The commission shall have the following powers, together with all powers incidental thereto or necessary for the performance of those stated in this chapter:

(a) To sue and be sued, complain and defend, in its corporate name.

(b) To have a seal which may be altered at pleasure and to use the seal by causing it, or a facsimile thereof, to be impressed or affixed or in any other manner reproduced.

(c) To purchase, take, receive, lease, or otherwise acquire, own, hold, improve, use, and otherwise deal in and with, real or personal property, or any interest therein, wherever situated {ADD for the sewage disposal system ADD} .

(d) To make and execute agreements of lease, construction contracts, operation contracts, and all other contracts or instruments necessary or convenient in the exercise of the powers and functions of the commission granted by this chapter.

(e) To borrow money for any of its projects and purposes, including the refunding of indebtedness of the town of West Warwick related to the sewage disposal system, {DEL the creation and maintenance of working capital, DEL} and to issue negotiable bonds, notes, certificates, securities or other obligations or evidence of indebtedness, payable solely from the revenues pledged for their payment, and to fund and refund the same, all as provided in this chapter.

(f) To borrow in anticipation of the receipt of user fees or state or federal funds, as provided in this chapter.

(g) To {DEL make guarantees and DEL} incur or assume liabilities as the commission may deem appropriate, including, but not limited to, the assumption of indebtedness of the town of West Warwick related to the sewage disposal system.

(h) To invest and reinvest its funds.

(i) To secure the cooperation and assistance of the United States, and any of its agencies, and of agencies of this state and its municipalities in the work of the commission.

(j) To accept grants, donations, drafts, loans of funds, and contributions of money, services, materials, or otherwise from the United States or any of its agencies, from this state and its agencies, or from any other source, and to use or expend those moneys, services, materials, or other contributions in carrying out the purposes of this chapter.

(k) To fix, revise and collect from time to time assessments for the costs of the construction, completion, extension, enlargement or improvement of the sewage disposal system, and user charges for the use of the facilities of or rendered by the commission, such as to provide revenues sufficient at all times to pay, as the same shall become due, the principal and interest on the bonds and notes of the commission, together with the maintenance of proper reserves therefore, in addition to paying the expense of operating and maintaining the properties of the commission, together with proper reserves for depreciation, maintenance, and contingencies and other obligations and indebtedness of the commission.

(1) To establish a sewage pretreatment program, and to require as a condition, to the grant or reissuance of any approval, license, or permit required under the program, that the person applying for the approval, license, or permit, pay to the commission a reasonable fee based on the cost of reviewing and acting upon the application and based on the costs of implementing the program. In addition, where violations of the provisions of chapter 15 of the West Warwick Code of Ordinances, or of any permit, rule, regulation, or order issued pursuant thereto have occurred, the violator shall reimburse the commission for the actual costs of implementing and enforcing the terms of the permit, rule, regulation, or order as a condition to the grant or reissuance of any approval, license, or permit.

(m) To acquire or contract to acquire, from any person, the federal government or the state, or any agency of either the federal government or state, by grant, purchase, lease, gift, condemnation, or otherwise, or to obtain options for the acquisition of any property, real or personal, improved or unimproved, and interests in land less than the fee thereof {ADD for the sewage disposal system ADD} ; and to own, hold, clear, improve, develop, and rehabilitate, and to sell, assign, exchange, transfer, convey, lease, mortgage, or otherwise dispose of or encumber the property for the purposes of carrying out the provisions and intent of this chapter for such consideration as the commission shall determine.

(n) To elect or appoint officers and agents of the commission, and to define their duties and fix their compensation, including authority to employ attorneys, accountants, architectural, and engineering consultants, and such other employees or agents as the commission shall deem necessary in its judgment.

(o) To make and alter bylaws, not inconsistent with this chapter, for the administration and regulation of the affairs of the commission, and the bylaws may contain provisions indemnifying any person who is or was a member of the commission.

(p) To make provision for management of its projects.

(q) To prepare or cause to be prepared plans, specifications, designs, and estimates of costs of construction, reconstruction, rehabilitations, improvements, alteration, or repair of its projects, and to modify the same.

(r) To issue orders of general or specific applicability to carry out the purposes of its projects.

(s) To have and exercise all powers necessary or convenient to effect its purposes.

(t) To impose administrative penalties in accordance with the provisions of chapter 15 of the West Warwick Code of Ordinances.

(u) To secure certain payments on its revenue bonds and notes, in whole or in part, by insurance or by letters or lines of credit or other credit facilities.

(v) To enter into intermunicipal agreements for any lawful corporate purpose necessary or desirable to effect the purposes of this chapter.

(w) To enter into intergovenmental agreements with the town of West Warwick for any lawful corporate purpose necessary or desirable to effect the purposes of this chapter.

SECTION 4. Power to acquire land. -- For any purposes of this chapter, the commission may, at any time and from time to time, take by eminent domain or acquire by purchase or otherwise, such land, water rights, easements, and other property or interests in property, public and private, {ADD for the sewage disposal system, ADD} as it may determine necessary or desirable for the purposes of this chapter.

SECTION 5. Interests in land taken. -- Any taking under this chapter may be in fee or otherwise, perpetual in duration or for a limited period of time, as the commission shall determine and set forth in the order of taking.

SECTION 6. Eminent domain procedure. -- The commission shall exercise its power of eminent domain by the methods prescribed by chapter 7 of title 24 of the Rhode Island general laws.

SECTION 7. Notes issued in anticipation of receipts of state or federal funds. The principal and interest of all notes of the commission issued in anticipation of the receipts of state or federal funds shall be payable no later than the fourth anniversary of the date of issue thereof, and shall be payable from state or federal funds either legally available to the commission or appropriated for that purpose.

SECTION 8. Bonds and notes of the commission. -- (a) The commission shall have the power and is hereby authorized to issue, from time to time, its negotiable bonds and notes in one or more series in such principal amounts as in the opinion of the commission shall be necessary to provide sufficient funds for achieving its purposes, including the payment of interest on bonds and notes of the commission to the extent permitted by law, the establishment of reserve funds as may be necessary for its purposes, including, but not limited to, debt service reserve funds, insurance reserve funds, and replacement reserve funds, and the making of all other expenditures of the commission incident to and necessary or convenient to carrying out its corporate purposes and powers.

(b) The bonds and notes may be executed and delivered by the commission at any time, from time to time, may be in such form and denominations and of such tenor and maturities, and may be in bearer or registered form, as to principal and interest or as to principal alone, all as the commission, in its sole discretion, may determine.

(c) Bonds may be payable in such installments, and at such times not exceeding forty (40) years from the date thereof, as shall be determined by the commission.

(d) Except as provided in section 7 of this chapter with respect to notes issued in anticipation of receipts of state or federal funds and notes issued in anticipation of receipt of user fees, notes may be payable in such installments and at such times not exceeding five (5) years from the date of the original issue of such notes, as shall be determined by the commission.

(e) Bonds and notes may be payable at such places, whether within or without the state of Rhode Island, may bear interest at such rate or rates payable at such time or times and at such place or places evidenced in such manner, and may contain such provisions not inconsistent herewith, all as shall be provided in the proceedings of the commission under which they shall be authorized to be issued.

(f) There may be retained, by provision made in the proceedings under which any bonds or notes of the commission are authorized to be issued, an option to redeem all or any part thereof at such prices and upon such notice, and on such further terms and conditions, as shall be set forth on the record of the proceedings and on the face of the bonds and notes.

(g) Any bonds or notes of the commission may be sold, from time to time, at such prices, at public or private sale, and in such manner as shall be determined by the commission, and the commission shall pay all expenses, premiums, and commissions that it shall deem necessary or advantageous in connection with the issuance and sale thereof.

(h) Moneys of the commission, including proceeds from the sale of bonds or notes, and revenues, receipts, and income from any of its projects, may be invested and reinvested in such obligations, securities, and other investments consistent with this chapter, and to the extent permitted by the general laws of the state of Rhode Island, and/or as shall be specified in the resolutions under which the bonds or notes are authorized.

(i) Issuance by the commission of one or more series of bonds or notes for one or more purposes shall not preclude it from issuing other bonds or notes, but the proceedings whereunder any subsequent bonds or notes may be issued shall recognize and protect a prior pledge or mortgage made for a prior issue of bonds or notes, unless in the proceedings authorizing the prior issue, the right is reserved to issue subsequent bonds or notes on a parity with the prior issue.

(j) The commission is authorized to issue bonds or notes for the purpose of refunding its bonds or notes then outstanding {DEL and refunding bonds or notes of the Town of West Warwick then outstanding, DEL} including the payment of any redemption premium thereon and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase or maturity, of the bonds or notes, and, if deemed advisable by the commission, for the additional purpose of paying all or part of the cost of acquiring, financing, extending, operating, maintaining, constructing, reconstructing, rehabilitating, developing, planning, or improving any project. {ADD The commission is further authorized to refund outstanding bonds or notes of the Town of West Warwick related to the sewage disposal system, if deemed beneficial by the Town, as evidenced by a resolution of the West Warwick town council to that effect. ADD} The proceeds of bonds or notes issued for the purpose of refunding outstanding bonds or notes may be applied, in the discretion of the commission, to the purchase, retirement at maturity, or redemption of the outstanding bonds or notes either on their earliest or a subsequent redemption date, and may, pending an application, be placed in escrow. Any escrowed proceeds may be invested and reinvested in obligations of the United States of America, and, to the extent permitted by the proceedings authorizing the issuance of the bonds to be refunded, in obligations guaranteed by the United States, or in certificates of deposit or time deposits secured or guaranteed by the state of Rhode Island or the United States, or an instrumentality of either, maturity at such time or times as shall be appropriate to assure the prompt payment, as to principal, interest, and redemption premium, if any of the outstanding bonds or notes to be so refunded. To the extent permitted by applicable laws, the interest, income, and profits, if any, earned or realized on any investment may also be applied to the payment of the outstanding bonds or notes to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and interest, income, and profits, if any, earned or realized on the investments thereof, may be returned to the commission for its use. The portion of the proceeds of bonds or notes issued for the additional purpose of paying all or part of the cost of acquiring, financing, extending, operating, maintaining, constructing, reconstructing, rehabilitating, developing, planning, or improving any project, may be invested and reinvested in such obligations, securities, and other investments consistent herewith as shall be specified in the resolutions under which the bonds or notes are authorized. To the extent permitted by applicable laws, the interest, income, and profits, if any, earned or realized on the investments may be applied to the payment of all parts of the costs or may be used by the commission otherwise in furtherance of its purposes.

(k) The members, the officers of the commission and other persons executing the bonds or notes shall not be subject to personal liability or accountability by reasons of the issuance thereof.

(1) Bonds or Notes may be issued under the provisions of this section without obtaining the consent of any department, division, commission, board, body, bureau, or agency of the state of Rhode Island, and without any other proceedings or the happening of any conditions or things other than those proceedings, conditions, or things which are specifically required by this section and by the provision of the resolution authorizing the issuance of the bonds or notes or the trust agreement {ADD or indenture ADD} securing the bonds or notes.

(m) The commission, subject to such agreements with noteholders or bondholders as may then be in force, shall have the power, out of any funds available therefor, to purchase bonds or notes of the commission, which shall thereupon be cancelled, at a price not exceeding:

(1) If the bonds or notes are then redeemable, the redemption price then applicable plus accrued interest to the next interest payment date, or

(2) If the bonds or notes are not then redeemable, the redemption price applicable on the earliest date that the bonds or notes become subject to redemption, plus the interest that would have accrued to such date.

(n) Whether or not the bonds and notes are of such form and character as to be negotiable instruments under the terms of the Rhode Island Uniform Commercial Code, the bonds and notes are hereby made negotiable instruments within the meaning of and for all the purposes of the Rhode Island Uniform Commercial Code.

(o) If an member or officer of the commission whose signature appears on the bonds, notes, or coupons shall cease to be a member or officer before the delivery of the bonds or notes, the signature shall, nevertheless, be valid and sufficient for all purposes, the same as if the member or officer had remained in office until the delivery.

SECTION 9. Security for bonds or notes. -- (a) The principal of, premium, if any, and interest on any bonds or notes issued by the commission may be secured by the full faith and credit of the commission and may be payable solely out of the revenues, earnings, and receipts of the commission or such other property pledged for payment.

(b) The resolution, under which the bonds or notes are authorized to be issued and any such mortgage, lease, sales agreement, or loan agreement, or other instrument may contain agreements and provisions respecting the maintenance of the facilities covered thereby, the fixing and collection of rents, payments or repayments, or other revenues, therefrom including moneys received in repayment of loans, and interest thereon, the creation and maintenance of special funds from such rents or other revenues, and the rights and remedies available in the event of default, all as the commission shall deem advisable.

(c) The revenues derived from the project or projects or portion or portions thereof, in connection with which the bonds or notes shall have been issued, may be pledged as provided in the resolution, trust agreement or indenture. The pledge shall be valid and binding from the time when the pledge is made; the revenues, or other moneys so pledged, and thereafter, received by the commission, shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether the parties have notice thereof. Neither the resolution nor any trust agreement, nor any indenture by which a pledge is created need be filed or recorded except in the records of the commission. The use and disposition of revenues shall be subject to the provisions of the resolution authorizing the issuance of the bonds or the trust agreement or indenture.

(d) Each pledge, agreement, mortgage, or other instrument made for the benefit or security of any of the bonds or notes of the commission shall continue in effect until the principal of and interest on the bonds or notes for the benefit of which the same was made shall have been fully paid, or until provision shall have been made for the payment in the manner provided in the resolutions under which the bonds or notes were authorized.

(e) The commission may provide, in any proceedings under which bonds or notes may be authorized, that any project or part thereof may be constructed, reconstructed, rehabilitated, or improved by the commission, and may also provide in proceedings for the time and manner of and requisitions for disbursements to be made for the cost of such construction, and for all such certificates and approvals of construction and disbursements as the commission shall deem necessary and provide for in proceedings.

(f) Any resolution under which bonds or notes of the commission are authorized to be issued (and any trust agreement or indenture established thereby) may contain provisions for vesting in a trustee your trustees such properties, rights, powers, and duties in trust as the commission may determine, including any or all of the rights, powers, and duties of the trustee appointed by the holders of any issue of bonds or notes pursuant hereto, in which event the provisions hereof authorizing the appointment of a trustee by holders of bonds or notes shall not apply.

SECTION 10. Trust Funds. -- All moneys received pursuant to the issuance of bonds or notes or as revenues, receipts or income, shall be trust funds if such is provided for in the proceedings under which the bonds or notes are authorized. Any officer with whom, or any bank or trust company with which, moneys shall be deposited as trustee hereof shall hold and apply the same for the purposes thereof, subject to the applicable provisions of this chapter, the proceedings authorizing the bonds or notes, and the trust agreement securing the bonds or notes, if any.

SECTION 11. Exemption of the commission's bonds and notes from taxation. -- Bonds and notes of the commission, and the income (including any gain from sale or exchange) therefrom, shall at all times be free from taxation of every kind of the state of Rhode Island and the municipalities and all political subdivisions thereof.

SECTION 12. Bonds and notes as legal investments. -- The notes and bonds of the commission are hereby made securities in which all public officers, state agencies, public corporations, 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 association, building and loan associations, investment companies and other persons carrying on a banking business, administrators, guardians, executors, trustee and other fiduciaries, and all other persons whatsoever who are now or may hereafter be authorized to invest in bonds or other obligations of the state of Rhode Island, may properly and legally invest funds, including capital, in their control or belonging to them.

SECTION 13. Agreement of the state of Rhode Island. -- The state of Rhode Island does hereby pledge to and agree with the holders of any bonds or notes issued hereunder, that the state will not limit or alter the rights hereby vested in the commission to fulfill the terms of any agreements made with the holders until the bonds or notes, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of the holders, are fully met and discharged. The commission is authorized to include this pledge and agreement of the state in any agreement with the holders of the bonds or notes.

SECTION 14. Credit of the state of Rhode Island. -- Obligations issued under the provisions hereof shall not constitute a debt, liability, or obligation of the state or of any political subdivision thereof, other than the commission, or a pledge of the faith and credit of the state or any political subdivision, other than the commission, but shall be payable solely from the revenues or assets of the commission. Each obligation issued pursuant hereto shall contain on the face thereof a statement to the effect that the commission shall not be obligated to pay the obligation or interest thereon except from revenues or assets pledged therefor, and that neither the faith and credit nor the taxing power of the state or any political subdivision thereof, other than the commission, is pledged to the payment of the principal of or the interest on the obligation.

SECTION 15. Remedies of bondholders and noteholders. -- (a) In the event that the commission shall default in the payment of principal of or interest on any revenue bonds or revenue notes, issued pursuant to the provisions hereof, after the bonds or notes shall become due, whether at maturity or upon call for redemption, and the default shall continue for a period of thirty (30) days, or in the event that the commission shall fail or refuse to comply with the provisions of this chapter, or shall default in any agreement made with the holders of an issue of revenue bonds or revenue notes of the commission,the holders of twenty-five percent (25%) of the aggregate principal amount of the revenue bonds or revenue notes of the issue then outstanding, by instrument or instruments filed in the office of the secretary of state and proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of the bonds or notes for the purposes herein provided.

(b) The trustee may, and upon written request of the holders of twenty-five percent (25%) of the aggregate principal amount of the bonds or notes than outstanding shall, in his or her or its own name:

(1) Enforce all rights of the bondholders or noteholders, including the right to require the commission to collect rent, interest, repayments, and payments on the leases, mortgages, loan agreements, and sales agreements held by it to carry out any agreement as to, or pledge of, the rent, interest repayments, and payments, and to require the commission to carry out any other agreements with the holders of the bonds or notes and to perform its duties under this chapter;

(2) Enforce all rights of the bondholders or noteholders, so as to carry out any contract as to, or pledge of, revenues, and to require the commission to carry out and perform the terms of any contract with the holders of its bonds or notes or its duties under this chapter;

(3) Bring suit upon all or any part of the bonds or notes;

(4) By action or suit, require the commission to account as if it were the trustee of an express trust for the holders of the bonds or notes;

(5) By action or suit, enjoying any acts or things which may be unlawful or in violation of the rights of the holders of the bonds or notes;

(6) Declare all the bonds or notes due and payable and, if all defaults shall be made good, then, with the consent of the holders of twenty-five (25%) of the aggregate principal amount of the bonds or notes then outstanding, to annul the declaration and its consequences.

(d) The trustee shall, in addition to the foregoing, have and possess all the powers necessary or appropriate for the exercise of any functions specifically set forth herein or incident to the general representation of bondholders or note holders in the enforcement and protection of their rights.

SECTION 16. Other statutes and ordinances. -- Nothing herein contained shall restrict or limit the powers of the commission arising under any laws of this state, or any charter or ordinances of any municipality, except if the powers are expressly contrary to the provisions of this chapter. All powers granted to the Town Council pursuant to Chapter 2005 of the Public Laws of 1920, are hereby transferred to the Sewer Commission. This chapter shall be construed to provide a complete additional alternative method for doing the things authorized hereby, and shall be regarded as supplemental and in addition to the power conferred by other laws. The issuance of all bonds, notes, and other obligations of the commission, under the provisions hereof, need not comply with the requirements of any other statute applicable to the issue of the bonds, notes, and other obligations. No proceedings or notice of approval shall be required for the issuance of any bonds, notes, or other obligations, or any instrument of security therefor except as herein provided.

SECTION 17. Inconsistent provisions. -- Insofar as the provisions of this chapter are inconsistent with the provisions of any other law, charter, or ordinance, general, special or local, the provisions of this chapter shall be controlling.

SECTION 18. Severability. -- The provisions of this chapter are severable, and if any of its provisions shall be held unconstitutional by any court of competent jurisdiction, the decision of the court shall not affect or impair any of the remaining provisions.

SECTION 19. Effective Date. -- This act shall take effect upon its approval by the people of the town of West Warwick at the next general or special election.

SECTION 20 The question of the approval of this act shall be submitted to the electors of the town at a general or special election to be held on a date designated by the town council. The question shall be submitted in substantially the following form: "Shall an act, passed at the January, 1994 session of the general assembly, entitled, 'An Act Relating to {DEL The Town of DEL} West Warwick Sewer Commission and Authorizing the West Warwick Sewer Commission to Issue Revenue Bonds and Notes' be approved?" The warning for the election shall contain the question to be submitted. The question to be submitted may be submitted to the electors with, and/or placed on the same ballot with, any other bond question which is being submitted to the electors of the {ADD town ADD} {DEL y DEL} for approval. From the time the election is warned and until it is held, it shall be the duty of the {DEL city DEL} {ADD town ADD} clerk to keep a copy of the act available at his office for public inspection, but the validity of the election shall not be affected by this requirement or by the requirements of section 17-5-5 and 17-5-6 of the general laws. The polling place or places shall be designated by the local board (as defined in section 17-1-2 of the general laws) and the local board shall forthwith after the election notify the secretary of state of the result of the vote upon the question submitted. To the extent of any inconsistency between this act and the town charter, this act shall prevail.