2012 -- S 2870 SUBSTITUTE A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO TOWNS AND CITIES - COUNCILS AND GOVERNING BODIES

     Introduced By: Senator Louis P. DiPalma

     Date Introduced: April 12, 2012

     Referred To: Senate Environment & Agriculture

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 45-5 of the General Laws entitled "Councils and Governing

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Bodies" is hereby amended by adding thereto the following section:

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     45-5-20.2. Power of city and town councils to jointly establish a corporation to

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develop alternative energy sources. -- (a) Cities and town councils may, through passage of a

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resolution, establish agreements between two (2) or more city or town councils for the

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development of renewable energy resources. Agreements made pursuant to this section may

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provide for pooling of administrative expenses.

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     (b) For purposes of this section the following terms shall have the following meanings:

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     (1) "Renewable energy resources" means any renewable energy resource listed in section

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39-26-5.

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     (2) "Participating municipality" means any or all of the following communities which by

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ordinance adopted by the applicable city or town council, elect to join as a member of the

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corporation created pursuant to the provisions of this section: Barrington, Bristol, East

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Providence, Little Compton, Middletown, Newport, Portsmouth, Tiverton, and Warren. The by-

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laws of the corporation shall contain a provision allowing a participating municipality to

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withdraw from the corporation.

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     (c) To accomplish the purposes of this section any two (2) or more eligible municipalities

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may authorize the creation of a corporation (the "corporation") for the purpose of facilitating

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collaboration among participating municipalities in the east bay region of Rhode Island in

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developing renewable energy resources for the benefit of that region. The corporation shall have

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an audit performed annually, copies of which shall be provided to the members of the corporation

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and the auditor general.

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     (d) The corporation created pursuant to the provisions of this section will be created by

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filing articles of incorporation pursuant to chapter 6 of title 7 entitled Rhode Island Nonprofit

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Corporation Act and the articles of incorporation will be filed by an incorporator/incorporators

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designated by the city and/or town councils authorizing the creation of the corporation. The

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articles of incorporation creating the corporation pursuant to the provisions of this section may

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contain provisions, not inconsistent with this section that the incorporators determine to be

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desirable or useful in fulfilling the purposes set forth in this section. The corporation created

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pursuant to the provisions of this section will have the powers of a nonprofit corporation created

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under chapter 6 of title 7 entitled Rhode Island Nonprofit Corporation Act, provided, however

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that the corporation shall not have the power to issue bonds.

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     (e) The corporation created pursuant to the provisions of this section, notwithstanding the

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filing of its articles of incorporation pursuant to chapter 6 of title 7 entitled Rhode Island

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Nonprofit Corporation Act: (1) Will be deemed to be a public corporation, instrumentality, and

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agency of the state of Rhode Island acting for the benefit of the participating municipalities but

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will not constitute a department of the government of the state of Rhode Island; and (2) Will be

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deemed to be exercising public and essential governmental functions of the state of Rhode Island.

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No part of the net earnings of the corporation created pursuant to the provisions of this section

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will be distributable to, or inure to the benefit of, any private person. The governing board of the

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corporation created pursuant to the provisions of this section shall consist of one member

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representing each participating municipality who shall be appointed by the respective city or town

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council. The members shall receive no compensation for the performance of their duties but each

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member may be reimbursed for his or her reasonable expenses incurred in carrying out their

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duties.

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     (f) The notes or other obligations issued by the corporation created pursuant to the

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provisions of this section will not be deemed to constitute a debt or liability or obligation of the

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state of Rhode Island or of any political subdivision of the state or of any municipality of the state

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but will be payable solely from the revenues or assets of the corporation.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TOWNS AND CITIES - COUNCILS AND GOVERNING BODIES

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     This act would enable the city and town councils of Barrington, Bristol, East Providence,

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Little Compton, Middletown, Newport, Portsmouth, Tiverton and Warren to enter into an

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agreement among themselves to help develop renewable energy resources for their region.

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     This act would take effect upon passage.

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