2016 -- H 8275 | |
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LC006103 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2016 | |
____________ | |
A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS - NEW SHOREHAM UTILITY | |
ASSOCIATION ACT OF 2016 | |
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Introduced By: Representative Blake Anthony Filippi | |
Date Introduced: June 01, 2016 | |
Referred To: House Corporations | |
(by request) | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Title 39 of the General Laws entitled "PUBLIC UTILITIES AND |
2 | CARRIERS" is hereby amended by adding thereto the following chapter: |
3 | CHAPTER 32 |
4 | NEW SHOREHAM UTILITY ASSOCIATION ACT OF 2016 |
5 | 39-32-1. Short title. -- This act shall be known and may be cited as the "New Shoreham |
6 | Utility Association Act of 2016". |
7 | 39-32-2. Declaration of policy. -- (1) The town of New Shoreham desires to purchase |
8 | the shares of the Block Island Power Company. If such a transaction is consummated, the town of |
9 | New Shoreham desires to transfer the Block Island Power Company to a nonprofit entity that will |
10 | be governed by a utility board elected by the electric ratepayers. |
11 | (2) The general assembly finds that if the town of New Shoreham gains ownership of the |
12 | Block Island Power Company, it is in the public interest to create a nonprofit successor |
13 | organization governed by an elected board to operate the electric distribution company and any |
14 | remaining generation assets. |
15 | (3) The general assembly finds that the electors of the town of New Shoreham shall vote |
16 | on the form of nonprofit entity and declare that following the acquisition of the Block Island |
17 | Power Company, the town of New Shoreham is authorized to transfer the acquired shares and the |
18 | assets of the Block Island Power Company to a nonprofit entity chosen by the electors of the |
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1 | town of New Shoreham as set forth in this chapter. |
2 | 39-32-3. Definitions. -- Terms used in this chapter shall be construed as follows, unless |
3 | another meaning is expressed or is clearly apparent from the language or context: |
4 | (1) "Date of approval" means the date of certification of the results of a referendum in |
5 | which the electors of the town of New Shoreham choose the form of the utility association, being |
6 | either a utility cooperative or a utility district. |
7 | (2) "Qualified elector" means any person whose name appears on an active account with |
8 | the utility association. |
9 | (3) "Utility association" means either a utility cooperative or utility district on and after |
10 | the date of approval and filing of articles of incorporation, if necessary, whichever is later. The |
11 | name of the utility association shall be the New Shoreham Utility Association. |
12 | (4) "Utility assets" means that real property, personal property, rights in any real and |
13 | personal property, facilities, equipment, contract rights, statutory rights and privileges, franchises |
14 | and other tangible or intangible property of any kind whatever used in, or useful to, the conduct |
15 | of the utility operations conducted by the Block Island Power Company and after the date of |
16 | approval, by the utility association. |
17 | (5) "Utility cooperative" means a nonprofit corporation organized under the laws of the |
18 | state of Rhode Island whose purpose is to act as an electric distribution company, water/sewer |
19 | supplier, Internet provider, or telecommunications provider within the utility service area. |
20 | (6) "Utility debt obligations" means the obligations represented by and inherent in any |
21 | debt incurred by the Block Island Power Company for the purpose of financing any aspect of its |
22 | electric system or operations, which obligations remain outstanding in any part as of the date of |
23 | approval. |
24 | (7) "Utility district" means a quasi-municipal corporation, district and political |
25 | subdivision of the town established and empowered by this chapter to: |
26 | (i) Succeed to and fulfill the functions, powers, rights, property and obligations |
27 | heretofore held and fulfilled by the Block Island Power Company; |
28 | (ii) Exercise certain additional powers as an electric distribution company and as a |
29 | generator of electricity for retail sale within the utility service area, if authorized by a waiver |
30 | under §39-1-27(g); and |
31 | (iii) To provide additional utility services not inconsistent with the duties, powers and |
32 | obligations of the utility association as defined in this section, including acting as a water |
33 | supplier, Internet provider, or telecommunications provider within the utility service area. |
34 | (8) "Utility service area" means that geographic area located within the boundaries of the |
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1 | town of New Shoreham. |
2 | 39-32-4. Statement of purpose. -- This chapter is intended to: |
3 | (1) Establish the New Shoreham Utility Association as the successor to the utility |
4 | functions fulfilled prior to the date of approval by the Block Island Power Company; |
5 | (2) Provide for the orderly separation and transfer of those utility functions and related |
6 | utility assets and utility debt obligations (without impairment thereof) from the Block Island |
7 | Power Company to the utility district; and |
8 | (3) Authorize and enable the utility district to provide such other utility products and |
9 | services as may be authorized from time to time by the utility district's board of utility |
10 | commissioners. |
11 | 39-32-5. New Shoreham utility association established. -- (a) The town of New |
12 | Shoreham shall conduct an election to present the question to the electors of the town of New |
13 | Shoreham whether to create a utility district or utility cooperative, which question shall be |
14 | decided by the majority of electors who cast a vote. |
15 | (b) If the electors choose a utility district, then effective on the date of approval, there is |
16 | hereby created a quasi-municipal corporation, district and political subdivision of the town, to be |
17 | known as the New Shoreham Utility Association, the boundaries of which shall be coterminous |
18 | with the boundaries of the utility service area of the Block Island Power Company, as established |
19 | under the act passed at the January session A, D, 1925, entitled "An Act to Incorporate the Island |
20 | Light and Power Company" as thereafter amended and supplemented from time to time and such |
21 | other areas as provided for by this chapter. The utility district shall, upon the date of approval, |
22 | have and succeed to the utility powers and functions heretofore held and exercised by the Block |
23 | Island Power Company, and shall further have and be entitled to exercise the additional powers, |
24 | rights and functions set forth in this chapter. |
25 | (c) If the electors choose a utility cooperative, then effective on the date of approval, the |
26 | general assembly authorizes the creation of a nonprofit corporation, to be organized under the |
27 | laws of the state of Rhode Island, to be known as the New Shoreham Utility Association, the |
28 | boundaries of which shall be coterminous with the boundaries of the utility service area of the |
29 | Block Island Power Company, as established under the act passed at the January session A.D. |
30 | 1925, entitled "An Act to Incorporate the Island Light and Power Company" as thereafter |
31 | amended and supplemented from time to time and such other areas as provided for by this |
32 | chapter. The utility cooperative shall, upon the date of approval, have and succeed to the utility |
33 | powers and functions heretofore held and exercised by the Block Island Power Company, and |
34 | shall further have and be entitled to exercise the additional powers, rights and functions set forth |
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1 | in this chapter. |
2 | 39-32-6. Board of utility commissioners of the town of New Shoreham utility |
3 | association established. -- There is hereby created a board to be known as the board of utility |
4 | commissioners of the town of New Shoreham Utility Association. The powers of the utility |
5 | association as set forth in this chapter, or conferred on the utility association by operation of this |
6 | chapter, shall be vested in and exercised by a majority of the members of the board of utility |
7 | commissioners then in office; provided, however, that the board of utility commissioners in its |
8 | discretion may delegate executive functions to general managers, by resolution, rule or otherwise. |
9 | 39-32-7. Membership of board of commissioners. -- (a) The board of utility |
10 | commissioners shall consist of five (5) members. Three (3) members of the board shall constitute |
11 | a quorum and a vote of three (3) members shall be necessary for all action taken by the board. No |
12 | vacancy in the membership of the board shall impair the right of a quorum to exercise all the |
13 | rights and perform all the duties of the board. The initial members of the board of utility |
14 | commissioners shall be elected, but two (2) shall be elected for a term of two (2) years and three |
15 | (3) for a term of four (4) years. Thereafter, the members of the board of utility commissioners of |
16 | the New Shoreham Utility Association shall be elected for a term of four (4) years by ballot of |
17 | qualified electors. |
18 | (b) The members of the board of utility commissioners, moderator or clerk shall be a |
19 | resident, taxpayer, ratepayer or spouse of a ratepayer, or the beneficial owner of a ratepayer. |
20 | Such residents, ratepayers and spouse, or beneficial owner of a ratepayer shall be eligible to be a |
21 | candidate for election to any one of the above offices; provided, however, that they shall first |
22 | have filed a declaration of candidacy with the secretary of the board of utility commissioners not |
23 | later than thirty (30) calendar days prior to the scheduled date of the election through which such |
24 | person seeks to be elected. In the event of a vacancy occurring on the board of utility |
25 | commissioners, moderator or clerk by reason of death, resignation or other cause, the board itself |
26 | may select an eligible candidate to fill the vacancy until the next annual election. |
27 | (c) The board of utility commissioners shall elect each year from among its members: |
28 | (1) A chairperson, who shall chair and moderate meetings of the board of utility |
29 | commissioners and shall execute such other authorities and duties as the board may provide; |
30 | (2) A vice chairperson who shall assume all duties of the chairperson in the chairperson's |
31 | absence; and |
32 | (3) A secretary, who shall maintain minutes of the meetings of the board of utility |
33 | commissioners, provide notice of the meetings in accordance with law, and shall have such other |
34 | duties as the board of utility commissioners may determine. The board of utility commissioners |
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1 | shall appoint a treasurer, who may be a member of the board or a general or special employee of |
2 | the utility district, and who shall have charge and control of the money and deposits of the utility |
3 | district. |
4 | (d) The board of utility commissioners shall establish and adopt bylaws for the |
5 | management and conduct of the utility district's affairs, and other aspects of the governance of the |
6 | utility district not otherwise controlled by this chapter. Pending the adoption of the bylaws, the |
7 | board of utility commissioners shall be deemed to have adopted, and shall conduct the board's |
8 | business in accordance with, the existing bylaws of the Block Island Power Company. |
9 | (e) In order to ensure that the status of the utility district as a quasi-municipal corporation, |
10 | district and political subdivision of the state does not prejudice its ability to contribute to the |
11 | development of effective competition in the electricity and communications industries in the |
12 | state, it is specifically found and determined that: |
13 | (1) Strategic business planning records of the utility district (including without limitation |
14 | business plans, draft contracts, proposals, financial analyses and other similar documents) shall |
15 | not be subject to the disclosure requirements of chapter 2 of title 38 unless the same materials in |
16 | comparable circumstances in the hands of an investor-owned utility would be subject to |
17 | disclosure under other laws of the state; and |
18 | (2) Strategic business planning discussions of the board of utility commissioners, |
19 | including such discussions with utility district employees or consultants, are deemed to fall within |
20 | the circumstances defined in §42-46-5(a)(7). |
21 | 39-32-8. Compensation of the board - Employees of the utility association. -- (a) Each |
22 | member of the board of utility commission shall be entitled to receive compensation and |
23 | reimbursement of actual and necessary expenses incurred in the performance of their official |
24 | duties at levels subject to approval by a vote of the qualified electorate. The salaries, |
25 | compensation and expenses of all members and officers of the board, and all employees and |
26 | agents of the utility district, shall be paid solely out of funds of the utility district. |
27 | (b) The board shall appoint general managers and may enter into employment contracts |
28 | with its executive employees. The board shall have the authority to approve employee benefit |
29 | plans, including fringe benefits such as including, but not limited to, pension and health and |
30 | disability and other insurances. |
31 | (c) No member of the board of utility commissioners shall directly or indirectly engage or |
32 | participate in the proceeds of any contract or agreement to supply anything of value or receive |
33 | anything of value from the utility district. The prohibition set forth in this subsection may be |
34 | waived by a vote of three (3) members of the board of utility commissioners, if and only if the |
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1 | board of utility commissioners shall have first obtained an opinion of the attorney general and/or |
2 | the Rhode Island ethics commission based on full disclosure of all relevant facts that the waiver |
3 | does not contravene state law and is otherwise in the best interests of the consumers served by the |
4 | utility district. |
5 | 39-32-9. Powers of the utility association. -- (a) The power of the utility association |
6 | shall include the following: |
7 | (1) To acquire real or personal property and tangible or intangible personal property by |
8 | voluntary purchase from the owner or owners of the property, and to the extent that the board of |
9 | utility commissioners deems it advisable, to acquire property held by a corporation through |
10 | acquisition of the stock of the corporation and dissolution of the corporation; |
11 | (2) To acquire real property, fixtures and rights and interests in real property within its |
12 | utility service area by eminent domain, subject to the supervision of the public utilities |
13 | commission in the manner prescribed in §39-1-31; |
14 | (3) To own, operate, maintain, repair, improve, enlarge and extend, in accordance with |
15 | the provisions of this chapter, any property acquired under this section all of which, together with |
16 | the acquisition of the property, are hereby declared to be public purposes; |
17 | (4) To produce, purchase, acquire, distribute and sell water products and sewer services |
18 | and electricity at wholesale or retail within or without its utility service area subject to franchise |
19 | rights of other utilities; to lay down, construct, own, operate, maintain, repair and improve mains, |
20 | pipes, wells, towers and other equipment and facilities necessary, appropriate or useful for those |
21 | purposes; and to contract with others for any or all of the foregoing purposes; |
22 | (5) To produce, buy, sell and trade electric capability, power or energy products or |
23 | services at wholesale or retail; to purchase for its own use or for resale electric transmission |
24 | service and ancillary services; and to engage in any other transaction with respect to electricity or |
25 | electricity products that was heretofore authorized for the Block Island Power Company |
26 | (including participation in electric generating facilities as authorized by chapter 20 of title 39); |
27 | provided, that the utility district shall operate and be subject to regulation of its retail rates for |
28 | electricity under title 39 when operating within its utility service area; |
29 | (6) To acquire, own, lease, operate, maintain, repair and expand facilities and equipment |
30 | necessary, appropriate or useful to the operation of other utilities, including, but not limited to, |
31 | communications services such as Internet service, high speed data transfer, local and long |
32 | distance telephone service, community antenna television service, water products and sewer |
33 | services and to engage in the operation of such utilities; |
34 | (7) To sue and be sued; |
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1 | (8) To adopt and alter a corporate seal; |
2 | (9) To acquire, hold, use, lease, sell, transfer, assign or otherwise dispose of any property, |
3 | real, personal or mixed, or any interest therein for its corporate purposes, and to mortgage, pledge |
4 | or lease any such property; |
5 | (10) To make and adopt bylaws for the management and regulation of its affairs; |
6 | (11) To borrow money for any of the purposes or powers granted to it under or by |
7 | operation of this chapter, including the creation and maintenance of working capital, and to issue |
8 | negotiable bonds, notes or other obligations, to fund or refund the same, and to secure the |
9 | obligation of such bond, notes or other obligations in any case by pledge of or security interest in |
10 | the revenues and property of the utility district. |
11 | (12) To fix rates (subject to the requirements of title 39 in the case of retail electric rates |
12 | within its utility service area) and collect charges for the use of the facilities or services rendered |
13 | by or any commodities furnished by the utility district; |
14 | (13) To contract in its own name for any lawful purpose which would effectuate the |
15 | purposes and provisions of this chapter; to execute all instruments necessary to carry out the |
16 | purposes of this chapter; and to do all things necessary or convenient to carry into effect and |
17 | operation the powers granted by this chapter; and |
18 | 39-32-10. Limitation of powers. -- All services provided by the utility association that |
19 | constitute public utility services within the meaning of §39-1-2(20) or community antennae |
20 | television systems (CATV) services within the meaning of §39-19-1 shall be subject to the |
21 | applicable jurisdictions of the public utilities commission and the division of public utilities and |
22 | carriers. |
23 | 39-32-11. Separation of utility assets. -- Within eighteen (18) months of acquisition by |
24 | the town of New Shoreham, ownership of the utility assets previously titled to, or otherwise |
25 | owned or controlled by, the Block Island Power Company shall be transferred to the utility |
26 | association, subject to any security interest of record relating to such utility assets, which security |
27 | interests, if any, shall remain in full force and effect and be unimpaired by the transfer of |
28 | ownership of the utility assets. |
29 | 39-32-12. Succession of utility district to certain obligations of Block Island power |
30 | company. -- Upon the date of transfer, the utility association shall: |
31 | (1) Succeed to and become subject to the utility debt obligations heretofore imposed by |
32 | any security interest or trust instrument upon the Block Island Power Company; and |
33 | (2) Succeed to the precise position of Block Island Power Company, without any waiver |
34 | or augmentation of that position whatsoever, as to each Block Island Power Company, that |
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1 | position to include such rights, claims or defenses as Block Island Power Company may have had |
2 | prior to the date of transfer with respect to any obligation of any such contract. |
3 | 39-32-13. Bonds. -- (a) The utility association shall have the power and is hereby |
4 | authorized from time to time to issue its negotiable bonds for any of its corporate or association |
5 | purposes and to secure the payment of the bonds in such manner and by such means as may be |
6 | provided in the resolution or resolutions of the utility association authorizing the bonds, subject to |
7 | the regulatory jurisdiction of the division of public utilities and carriers in the manner prescribed |
8 | in §39-3-15, where applicable. |
9 | (b) The utility association is specifically authorized to secure bonds that it may issue from |
10 | time to time by a pledge of, or creation of other security interest in, the revenues of the utility |
11 | association, which pledge or security interest may be enforceable by the grant of a conditional |
12 | franchise, in the event of default in the payment of the bonds, entitling the secured party or trustee |
13 | to enter upon and take control of the utility association's facilities and service and to provide |
14 | utility service and receive the revenues from the utility association's facilities and service for such |
15 | period, not exceeding twenty (20) years, as may be necessary to recover all payments due on the |
16 | bonds. |
17 | (c) The bonds of the utility association shall be authorized by resolution of the board of |
18 | utility commissioners. The bonds shall bear such date or dates, mature at such time or times not |
19 | exceeding forty (40) years from their issuance, bear interest at such rate or rates payable at such |
20 | time or times, be in such denominations and in such form, carry such registration privileges, be |
21 | executed in such manner, be payable in such medium of payment, at such place or places and |
22 | such time or times and be subject to redemption at such premium, if required, and on such terms, |
23 | as the resolution may provide. The bonds so authorized and issued pursuant to this chapter may |
24 | be sold at public or private sale for any price or prices that the utility association shall determine. |
25 | (d) Pending the issuance of bonds in definitive form, the utility association may issue |
26 | bond anticipation notes or interim receipts in such form as the board of utility commissioners may |
27 | elect. |
28 | (e) The utility association is hereby authorized to provide for the issuance of refunding |
29 | bonds of the utility association for the purpose of refunding any bonds then outstanding which |
30 | shall have been issued under the provisions of this chapter, including the payment of any |
31 | redemption premium on the bonds or interest accrued or to accrue to the earliest or subsequent |
32 | date of redemption, purchase or maturity of the bonds and, if deemed advisable by the utility |
33 | association, for the additional purpose of paying all or a part of the cost of acquiring, |
34 | constructing, reconstructing, rehabilitating, or improving any property, facilities or systems or |
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1 | parts of property facilities or systems of the utility association. The proceeds of bond or notes |
2 | issued for the purpose of refunding outstanding bonds or notes may be applied, in the discretion |
3 | of the utility association, to the purchase, retirement at maturity or redemption of outstanding |
4 | bonds or notes either on their earliest or a subsequent redemption date and may, pending that |
5 | application, be placed in escrow in the same manner and through the same means as are generally |
6 | available to and incumbent upon political subdivisions of the state. |
7 | (f) It is hereby declared that the utility association and the carrying out of its corporate, |
8 | association and political subdivision purposes is in all respects for the benefit of the people of the |
9 | state and for the improvement of their health, welfare and prosperity, and the utility association |
10 | will be performing an essential governmental function in the exercise of the powers conferred by |
11 | this chapter. The state therefore covenants with the holders of the utility association's bonds that |
12 | the utility association shall not be required to pay taxes or payments in lieu of taxes to the state or |
13 | any other political subdivision of the state upon any property of the utility association or under its |
14 | jurisdiction, control or supervision, or upon any of the utility association's activities in the |
15 | operation or maintenance of the property or upon any earnings, revenues, moneys or other income |
16 | derived by the utility association, and that the bonds of the utility association and the income |
17 | from the bonds shall at all times be exempt from taxation by the state and its political |
18 | subdivisions. Notwithstanding the foregoing, nothing in this section shall be deemed to prohibit |
19 | the division of public utilities and carriers, the public utilities commission and the department of |
20 | the attorney general from assessing the utility in accordance with the provisions of §§39-1-23, 39-1-26 |
21 | 39-1-26, 39-19-9, and 39-19-14. |
22 | (g) The state does hereby pledge to and agree with the holders of the bonds, notes or |
23 | other indebtedness of the utility association that the state will not limit or alter the rights vested in |
24 | the utility association until the bonds, notes or other evidence of indebtedness, together with the |
25 | interest on the debt, are fully met and discharged. |
26 | (h) Any resolution or resolutions authorizing any bond, or any issue of bonds, may |
27 | contain provisions which shall be a part of the contract with the bondholders of the bonds thereby |
28 | authorized, as to: |
29 | (1) Pledging all or any part of the money, earnings, income, and revenues derived from |
30 | all or any part of the property of the utility association to secure the payment of any bonds or of |
31 | any issue of bonds subject to such agreements with bondholders as may then exist; |
32 | (2) The rates to be fixed and the charges to be collected and the amounts to be raised in |
33 | each year and the use and disposition of the earnings and other revenue; |
34 | (3) The setting aside of reserves and the creation of sinking funds and the regulation and |
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1 | disposition thereof; |
2 | (4) Limitations on the right of the utility association to restrict and regulate the use of the |
3 | properties in connection with which the bonds are issued; |
4 | (5) Limitations on the purposes to which the proceeds of sale of any issue of bonds may |
5 | be put; |
6 | (6) Limitations on the issuance of additional bonds, including refunding bonds and the |
7 | terms upon which additional bonds may be issued and secured; |
8 | (7) The procedure, if any, by which the terms of any contract with bondholders may be |
9 | amended or abrogated, the percentage of bondholders whose consent shall be required for such |
10 | amendment or abrogation, and the manner in which consent may be given; |
11 | (8) The creation of special funds into which any earnings or revenues of the utility |
12 | association may be deposited, and the investment of the funds; |
13 | (9) The appointment of a fiscal agent and the determination of its powers and duties; |
14 | (10) Limitations on the power of the utility association to sell or otherwise dispose of its |
15 | properties; |
16 | (11) The preparation of annual budgets by the authority and the employment of |
17 | consultants and auditors; |
18 | (12) The rights and remedies of bondholders in the event of failure on the part of the |
19 | utility association to perform any covenant or agreement relating to a bond indenture; |
20 | (13) Covenanting that as long as any bonds are outstanding the utility association shall |
21 | use its best efforts to establish and maintain its rates and charges at levels adequate at all times to |
22 | pay and provide for all operating expenses of the utility association, all payments of principal, |
23 | redemption premium if any, and interest on bonds, notes or other evidences of indebtedness |
24 | incurred or assumed by the utility association, all renewals, repairs and replacements to the |
25 | property and facilities of the utility association, and all other amounts which the utility |
26 | association may be required by law to pay; and |
27 | (14) Any other matters of like or different character that in any way affects the security or |
28 | protection of the bonds. |
29 | (i) The bonds of the utility association are hereby made securities in which all public |
30 | officers and bodies of this state and all municipalities and municipal subdivisions, all insurance |
31 | companies and associations and other persons carrying on an insurance business, all banks, |
32 | bankers, trust companies, savings banks, and savings associations, including savings and loan |
33 | associations, building and loan associations, investment companies and other persons carrying on |
34 | a banking business, all administrators, guardians, executors, trustees and other fiduciaries and all |
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1 | other persons whomsoever, who are now or may thereafter be authorized to invest in bonds or |
2 | other obligation of the state may properly and legally invest funds including capital in their |
3 | control or belonging to them. The bonds are also hereby made securities which may be deposited |
4 | with and shall be received by all public officers and bodies of this state, and all municipalities and |
5 | municipal subdivisions, for any purpose for which the deposit of bonds or other obligations of |
6 | this state is now or may thereafter be required. |
7 | 39-32-14. Money of the utility association. -- (a) All money of the utility association, |
8 | from whatever source derived, shall be paid to the treasurer of the utility association. The money |
9 | on receipt shall be deposited forthwith in a separate bank account or accounts. The money in the |
10 | accounts shall be paid out with a check of the treasurer, on requisition by the utility association, |
11 | or of any other person or persons that the utility association may authorize to make the |
12 | requisitions. All deposits of money shall be secured by obligations of the United States or of the |
13 | state, of a market value at all times not less than the amount of deposits, and all banks and trust |
14 | companies are authorized to give security for the deposits. The utility association shall have the |
15 | power, notwithstanding the provisions of this section, to contract with the holders of any of its |
16 | bonds as to the custody, collection, security, investment and payment of any money of the |
17 | authority, or any money held in trust or otherwise for the payment of bonds or in any way to |
18 | secure the bonds, and to carry out any contract notwithstanding that the contract may be |
19 | inconsistent with the previous provisions of this section. Money held in trust or otherwise for the |
20 | payment of bonds or in any way to secure bonds and deposits of money may be secured in the |
21 | same manner as the money of the authority, and all banks and trust companies are authorized to |
22 | give security for the deposits. |
23 | (b) Notwithstanding subsection (a) of this section, or any other provision of this chapter, |
24 | the board of utility commissioners shall have the power to authorize by resolution a loan or |
25 | advance from one utility fund of the utility association to another. Any such interfund advance or |
26 | loan shall be for a term specified in the authorizing resolution of the board of utility |
27 | commissioners and shall bear interest at a rate reasonably determined by the board of utility |
28 | commissioners to be consistent with the public interest implicated in all funds involved in the |
29 | interfund loan or advance; provided, however, that an interest rate set at the rate applicable to the |
30 | utility association's most recent borrowing from a bank or other financial institution shall be |
31 | presumptively reasonable as the rate of interest for an interfund loan or advance. |
32 | 39-32-15. Alteration, amendment, repeal or severability. -- The right to alter, amend |
33 | or repeal this chapter is reserved to the state, but no such alteration, amendment or repeal shall |
34 | operate to impair the obligation of any contract made by the utility association under any power |
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1 | conferred by this chapter. If any section, clause, provision or term of this chapter shall be |
2 | declared unconstitutional, void, ultra vires or otherwise ineffective in whole or in part, such |
3 | determination of invalidity shall not otherwise affect the validity or enforceability of any other |
4 | provision of this chapter. |
5 | 39-32-16. Tax exemption. -- It is hereby declared that the town of New Shoreham Utility |
6 | Association, in the carrying out of its purposes, is in all respects providing essential services to |
7 | the people of the state of Rhode Island that improves their health, safety and welfare. |
8 | Accordingly, the town of New Shoreham Utility Association shall not be required to pay taxes, |
9 | assessments or sums in lieu of taxes to the state of Rhode Island or any political subdivision |
10 | thereof upon any of the property now owned or acquired in the future by the district, or under its |
11 | jurisdiction and/or control, possession or supervision or upon its activities or operations, or upon |
12 | any earnings, revenues, moneys or other income derived by the district. The bonds issued by the |
13 | district and any income therefrom shall at all times be exempt from taxation; provided, however, |
14 | nothing in this section shall have any effect upon the water resources board, or the division of |
15 | public utilities and carriers, and/or the public utilities commission's authority to impose |
16 | regulation-related assessments and charges on the town of New Shoreham Utility Association. |
17 | 39-32-17. Reversion to town upon dissolution or termination of the utility |
18 | association. -- Upon termination or dissolution of the utility association, the title of all funds and |
19 | other properties owned by the utility association that remain after payment or making provision |
20 | for payment of all bonds, notes and other obligations of the utility association shall rest in the |
21 | town of New Shoreham. |
22 | 39-32-18. References in the general laws to Block Island power company. -- Upon the |
23 | creation of the New Shoreham Utility Association, all references in the general laws to Block |
24 | Island Power Company shall refer to the New Shoreham Utility Association. |
25 | SECTION 2. This act shall take effect upon passage. |
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| LC006103 - Page 12 of 13 |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS - NEW SHOREHAM UTILITY | |
ASSOCIATION ACT OF 2016 | |
*** | |
1 | This act would enable the town of New Shoreham to present to the electors the question |
2 | of whether to create a utility district or utility cooperative which would be called The New |
3 | Shoreham Utility Association which would consist of a board of utility commissioners to manage |
4 | the utility. |
5 | This act would take effect upon passage. |
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LC006103 | |
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| LC006103 - Page 13 of 13 |