2020 -- S 2640

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LC004839

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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A N   A C T

RELATING TO WATERS AND NAVIGATION

     Introduced By: Senators Sosnowski, Coyne, Ruggerio, Conley, and Lynch Prata

     Date Introduced: February 27, 2020

     Referred To: Senate Environment & Agriculture

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 46-15 of the General Laws entitled "Water Resources Management"

is hereby repealed in its entirety.

CHAPTER 46-15

Water Resources Management

     46-15-1. Legislative declaration.

     The general assembly hereby finds and declares that:

     (1) The state of Rhode Island and Providence Plantations has been endowed with many

and abundant sources of water supplies located advantageously, for the most part, throughout the

state. The proper development, protection, conservation, and use of these water resources are

essential to the health, safety, and welfare of the general public, and to the continued growth and

economic development of the state;

     (2) In recent years it has become increasingly apparent that water supply management,

protection, development, and use must be fully integrated into all statewide planning, and rivers

and watershed planning and management processes, and that the allocation of the state's water

resources to all users, purposes, and functions, including water to sustain our natural river and

stream systems and natural biotic communities, must be equitably decided and implemented under

a process which emphasizes efficiency of use and management, minimization of waste, protection

of existing supplies, demand management, drought management, conservation, and all other

techniques to ensure that our water resources serve the people of Rhode Island for the longest time,

in the most efficient use, and in an environmentally sound manner;

     (3) The character and extent of the problems of water resource development, utilization,

and control, and the widespread and complex interests which they affect, demand action by the

government of the state of Rhode Island in order to deal with these problems in a manner which

adequately protects the general welfare of all the citizens of the state;

     (4) In order to retain and encourage the expansion of our present industries, and to attract

new industries, and to promote the proper growth and desirable economic growth of the entire state,

and to sustain the viability of water resource-dependent natural systems, agriculture, and recreation,

state government must play an active role in fostering and guiding the management of water

resources;

     (5) There are state and municipal departments, special districts, private firms, and other

agencies in the state who have capabilities and experience in the design, construction, operation,

and financing of water supply and transmission facilities, which capabilities and experience must

be brought to bear on the total problem of water resources development in a coordinated manner if

the proper development, conservation, apportionment, and use of the water resources of the state

are to be realized; and

     (6) It shall be the duty of the water resources board to regulate the proper development,

protection, conservation and use of the water resources of the state.

     46-15-1.1. "Water supply system" defined.

     "Water supply system" means, but is not limited to, a system which sells water registered

through a metering device or pumps over fifty (50) million gallons of water per year.

     46-15-2. Approval of public water supply facilities.

     (a) No municipal water department or agency, public water system, including special water

districts or private water company, engaged in the distribution of water for potable purposes shall

have any power:

     (1) To acquire or take a water supply or an additional water supply from an existing

approved source;

     (2) To take or condemn lands for any new or additional sources of water supply or for the

utilization of supplies;

     (3) To extend its supply or distribution mains into a municipality or special water district

wherein it has not heretofore legally supplied water;

     (4) To construct any extension of its transmission mains;

     (5) To extend the boundaries of a special water district; or

     (6) To supply water in or for use in any other municipality or civil division of the state

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which owns and operates a water supply system therein, or in any duly organized special water

district supplied with water by another municipal water department or agency, special water district,

or private water company, until the municipal water department or agency, special water district,

or private water company has first submitted the maps and plans therefor to the director of the

department of health, the state planning council and the board, as hereinafter provided, and until

the water resources board, after receiving the recommendations of the director of the department

of health and the division of statewide planning, shall have approved the recommendations or

approved the recommendation with modifications as it may determine to be necessary; provided,

however, this subsection shall not apply to any area presently served by any municipal water

department or agency, or special water district.

     (b) Approval shall not be necessary of any plan or work for the extension of supply or

distributing mains or pipes of a municipal water supply plant or special district or private water

company into and for the purpose of supplying water in any territory within the limits of the

municipality or special district or within the franchise area of the private water company, owning

the plant, including territory within the municipal special district or franchise limits which has not

been heretofore supplied with the water by the plant, nor for the reconstruction or replacement of

existing facilities in connection with an existing plant, wherein the capacity of the plant is in no

way increased, nor for the construction of filtration or other treatment facilities which will not in

any way increase the amount of water which can be made available from the present sources of

supply.

     (c) The water resources board shall enforce the provisions of this section, and the superior

court by injunction may, upon application of the water resources board, prevent any action to be

taken by any municipal water agency or department, special district, or private water company

without the approval of the water resources board as required by this section.

     46-15-3. Review of public water supply facilities.

     The water resources board shall review all proposals and plans for public water supply

systems in accordance with the procedures established in this chapter and shall, with respect to each

proposal:

     (1) Make findings concerning the location of existing and potential sources of

contamination of the public water supply system;

     (2) Assess the actual and potential impact of existing and potential sources of

contamination of the public water supply system;

     (3) Prepare recommendations concerning the location, construction, and treatment of the

public water supply system; and

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     (4) Report its findings, assessment, and recommendation to the directors of health and the

division of planning.

     46-15-4. Procedure for approval of maps and plans.

     (a) Whenever the approval of any project as provided in this chapter is required, the

application shall be made by the petitioner in writing, the application shall be accompanied by proof

of adequate authorization for the project, and such exhibits as may be necessary clearly to indicate

the scope of the proposed project, including, but not limited to, a map of the lands to be acquired,

if any, and preliminary plans of the works proposed to be constructed. The application shall also

show, where applicable, the need for the particular source or sources of supply and the reasons

therefor, and shall also indicate the method of determining and providing for the payment of the

proper compensation for any and all legal damages to persons or property, whether direct or

indirect, which will result from the acquiring of the lands and the execution of the plans. The

petition shall also be accomplished by such proof as to the character and purity of the water supply

proposed to be acquired or used as the director of the department of health shall require and any

proposed method of treatment of the supply.

     (b) The water resources board shall thereupon cause public notice to be given in a

newspaper of general circulation, at least seven (7) days prior, that on a day and at a place therein

specified it will hold a public hearing for the purpose of receiving evidence and hearing arguments

from all persons and organizations that may be affected by the proposed project, including the

recommendations of the director of the department of health and of the state planning council.

     (c) The water resources board shall, upon the day specified in the notice, or upon such

subsequent day or days to which it may adjourn the hearing, proceed to examine the maps and plans

and to hear the proofs and arguments submitted in support of and in opposition to the proposed

project. The water resources board, after a hearing, shall determine whether the plans proposed are

justified by public necessity, whether they provide for the proper and safe construction of all work

connected therewith, whether they provide for the proper protection of the supply and the watershed

from contaminations or provide for the proper treatment of an additional supply, whether the plans

are just and equitable to the other municipalities affected thereby and to the inhabitants thereof,

particular consideration being given to their present and future necessities for sources of water

supply, and whether the plans make fair and equitable provisions for the determination and payment

of any and all legal damages to persons and property, both direct and indirect, which will result

from the execution of the plans or the acquiring of those lands.

     (d) The water resources board shall within ninety (90) days after the close of the hearing,

and after consideration of the recommendations of the director of the department of health and of

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the state planning council, make a final decision in writing, either approving the application, maps,

and plans as presented, or under such conditions or with such modifications in the application,

maps, and plans as may be determined to be necessary to provide satisfactory compliance by the

applicant with any and all of the subjects and matters required to be determined by the water

resources board in this subsection, or to bring into cooperation all persons, municipal water

departments or agencies, special water districts, or private water companies which may be affected

by the project; or it may reject the application entirely or permit another to be filed in lieu thereof,

but it shall, however, make a reasonable effort to meet the needs of the applicant, with due regard

to the actual or prospective needs, interests, and rights of others which may be affected by the

proposed projects.

     46-15-5. Water supply to other states.

     (a) No municipal water departments or agencies, special water districts, or private water

companies shall transport or carry through pipes, conduits, ditches, or canals, the waters of any

fresh water lake, pond, brook, river, stream, or creek in this state or any well, subsurface, or

percolating waters of this state into any other state for use therein except where the consent in

writing of the water resources board has been obtained.

     (b) A petition in writing for that consent must be filed with the water resources board

accompanied by such plans and documents as the water resources board may require. The

provisions of § 45-15-4 shall, so far as practicable, apply to all proceedings to be had subsequent

to the filing of the petition as if the petition were one filed pursuant to the provision of § 46-15-4.

     (c) The water resources board shall enforce the provisions of this section, and the superior

court, by injunction, may, upon an application of the director, prevent any unauthorized diversion

or transportation.

     (d) Nothing contained herein shall be construed to affect any contracts or other

arrangements in existence on September 1, 1990, wherein a municipal water department or agency,

special water district, or private water company is supplying to and/or purchasing water from any

agency or other entity in another state.

     46-15-6. Supply of water to other water supply systems.

     (a) On any application for a new or additional water supply or source of water supply, the

water resources board, after obtaining the recommendations of the director of the department of

health and the division of planning, may require or authorize any applicant to make provisions for

the supply and to supply water to any area of the state which, as determined by the water resources

board in its decision on that application, properly should be supplied with water from the source or

sources of water supply sought by the applicant.

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     (b) Any municipal water department or agency, special water district, or private water

company within the area may apply to the water resources board for the right to take water from

that source of water supply or from any part of the water supply system of the applicant supplied

in whole or in part from that source. If the water resources board requires, or if it approves the

application, it shall be the duty of the applicant to supply water, subject to such requirements as the

water resources board may impose.

     (c) The amount of water to be taken and the price to be paid therefor may be agreed upon

between the applicant and the taker of the water, or if they cannot agree, fair and reasonable

amounts and rates shall be fixed by the administrator of public utilities and carriers; provided,

further, that nothing contained in this section shall be construed as diminishing the powers of the

administrator of public utilities and carriers in respect to rates of water suppliers subject to his or

her jurisdiction.

     46-15-6.1. Repealed.

     46-15-7. Authority to enter upon lands and waters for purpose of survey.

     The water resources board, its assistants, consultants, employees, subordinates, engineers,

surveyors, or other agents or servants, upon giving due notice of intent and purpose, without being

liable for trespass, shall have the right, with the consent of the landowner, to enter in, over, and

onto any lands or waters in the state along with the equipment and devices as may be necessary and

appurtenant for the conducting of examinations, investigations, appraisals, surveys, or other studies

and for the making of test pits, pumping tests, borings, and other forms of geologic investigations;

provided, however, that in the event the landowner refuses to consent to the entry, the water

resources board may petition the superior court for the county in which the lands and waters are

located for such authorization which shall be granted upon a showing by the water resources board

that the entry is necessary for the implementation of the plans and programs of the board. The

petition shall be granted priority on the miscellaneous court calendar. Any landowner whose

property is damaged by virtue of the authorization granted herein shall have all of the rights, and

shall be subject to all of the limitations, set forth in chapter 31 of title 9.

     46-15-8. Rules and regulations.

     The water resources board is hereby authorized and empowered to make general rules and

regulations and to take such actions and issue such orders as may be required for the enforcement

of this chapter, and the rules and regulations, in addition hereto and not inconsistent herewith.

     46-15-9. Powers of health department and department of environmental management

not affected.

     Nothing contained herein shall be construed to affect the powers granted to the department

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of health and the department of environmental management pursuant to chapters 12 -- 14 and

chapter 16 of this title.

     46-15-10. Public nuisances -- Abatement.

     (a) Any violation of any provision of this chapter, any rule or regulation promulgated

pursuant to this chapter, or any term or condition of any permit, shall constitute a public nuisance.

Any person, municipality, municipal water department or agency, special water district, or private

water company, committing a violation shall be liable for the costs of abatement of any pollution

and any public nuisance caused by the violation. The superior court is hereby given jurisdiction

over actions to recover the costs of the abatement.

     (b) Any activity or condition declared by this chapter to be a nuisance or which is otherwise

in violation of this chapter, shall be abatable in the manner provided by law or equity for the

abatement of public nuisances. In addition, the water resources board may proceed in equity to

abate nuisances or to restrain or prevent any violation of this chapter.

     46-15-11. Penalties and remedies.

     (a) It shall be the duty of any person to comply with any order issued pursuant to this

chapter. If the person fails to comply with the order within such time, if any, as may be specified,

the order may be enforced by the superior court, upon application made by the water resources

board.

     (b) Any person who willfully or negligently violates any provision of this chapter, or any

rule or regulation or other order promulgated by the water resources board, or any condition of any

permit issued pursuant to the chapter, is guilty of a misdemeanor and, upon conviction, shall be

subject to a fine of not more than five hundred ($500) dollars for each separate offense or to

imprisonment for a period of not more than one year, or both.

     (c) In addition to proceeding under any other remedy available at law or in equity for a

violation of any provision of this chapter, any rule or regulation pursuant to this chapter, or any

term or condition of any permit issued pursuant to this chapter, the water resources board may

assess a civil penalty upon a person for the violation. The penalty may be assessed whether or not

the violation was willful or negligent. When the water resources board assesses a civil penalty, it

shall inform the person of the amount of the penalty. The person charged with the penalty shall

then have thirty (30) days to pay the penalty in full or, if the person wishes to contest either the

amount of the penalty or the fact of the violation, the person shall, within the thirty (30) day period,

file an appeal of the action with the water resources board. Failure to appeal within thirty (30) days

shall result in a waiver of all legal rights to contest the violation or the amount of the penalty. The

maximum civil penalty which may be assessed pursuant to this section is five thousand dollars

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($5,000) per day for each violation. Each violation for each separate day and each violation of any

provision of this chapter, any rule or regulation under this chapter, any order of the water resources

board, or any term or condition of a permit shall constitute a separate and distinct offense under

this section.

     (d) The penalties and remedies prescribed shall be deemed concurrent, and the existence

of or exercise of any remedy shall not prevent the water resources board from exercising any other

remedy hereunder.

     (e) Violations on separate days shall constitute separate offenses for purposes of this

chapter.

     46-15-12. Cemeteries affecting water supply.

     (a) In the event that any sites, lands, or other property acquired by the board pursuant to

chapter 15.1 of this title, and/or in accordance with chapter 6 of title 37, as amended, for the purpose

of constructing or maintaining a reservoir or other terraneous or subterraneous supply,

transmission, or distribution of potable water, contain any burial ground, cemetery, historic

cemetery, graves, or places of human burial, and if these places are to be flowed by water or are

located so near to the reservoir or other water source as to be likely to pollute or reduce the quality

or value of the waters as a potable water supply, the water resources board shall remove the remains

found in the burial places.

     (b) The removal is to be under the direction of a qualified funeral director and with the

approval of the next of kin of the deceased, and at the expense of the water resources board.

However, notwithstanding the foregoing, the board shall only be liable for those expenses

associated with removal of the remains and existing headstone, and transfer and reinterment of the

remains within the state of Rhode Island. In the event that the next of kin desires to have the remains

transported or reinterred outside of the boundaries of the state of Rhode Island, any and all expenses

related to the transportation and reinterment outside of the state of Rhode Island shall be the

responsibility of the next of kin.

     (c) No cadaver or remains shall be removed by the water resources board unless the water

resources board shall give notice by certified mail to the nearest of kin known to the water resources

board, and/or, in the case where no kin is known to the water resources board, by advertising in one

or more daily newspapers having circulation within the town or city wherein the cemetery is

located, at least once a week for three (3) successive weeks. The advertisement shall set forth the

names of the deceased and the date of death, if the information is known or otherwise reasonably

discernible from available records, as well as, the present location of the cemetery or burial site.

     (d) In the event that no kin is known or that the nearest of kin shall neglect or refuse to

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approve the removal and reinterment, the water resources board shall cause the cadavers or remains

to be removed, transferred, and interred in such other cemetery in accordance with the laws, rules,

and regulations of the religious denomination, if any shall be known or ascertained, to which the

deceased subscribed. The water resources board may, at its option, furnish a place or places for

these burials, and may establish a general burial ground or grounds therefor, and may acquire by

purchase or condemnation any lands needed therefor. No general burial ground or grounds shall be

established in any town without the prior approval of the town council of the town of the location

or locations thereof.

     46-15-13. Water supply planning.

     The division of planning shall study and evaluate the needs of the state for current and

future water supply and shall have the following powers:

     (1) To formulate and maintain a long range guide plan and implementing program for

development of major water resources and transmission systems needed to furnish water to regional

or local public water systems as part of the state guide plan adopted pursuant to § 42-11-10.

     (2) To provide for cooperative development, conservation, and use of water resources by

the state, municipal agencies or departments, water resources board, and public water systems,

including special water districts and privately owned public water systems, the division of planning

may:

     (i) Divide the state into areas for the purpose of providing water supply facilities;

     (ii) Designate municipal water departments or agencies, special districts, or privately

owned public water systems to perform area-wide water supply operations within each area.

     (3) To review all plans and proposals for construction or installation of facilities for water

supply for conformance with the state guide plan in accordance with § 46-15-2 and report its

findings to the water resources board.

     46-15-14. Emergencies and imminent hazards.

     The division of planning, subject to the approval of the governor, shall promulgate an

adequate plan for the provision of safe drinking water for the inhabitants of the state when a water

emergency has been declared by the governor. A water emergency shall include floods or situations

in which water supplies are insufficient to meet the needs of the inhabitants of the state either

through a water shortage or contamination of water supplies. In a water emergency, the governor

may take such actions and issue such orders as may be necessary to implement the plan, including

the imposition of conservation measures and the allocation of water supplies. The actions and

orders may be directed to state agencies, municipalities, or entities engaged in the sale of water to

the public. Notwithstanding the foregoing, the responsibility for setting rates for the purchase and

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sale of water shall not be affected by this section.

     46-15-15. Consultants.

     The water resources board is authorized to employ such technical consultants as may be

required by the board for the proper performance of its powers and duties within the limit of funds

provided therefor.

     46-15-16. Examination of books, records, and accounts.

     For the purpose of ascertaining material information relevant to the function of the powers

and duties of the water resources board, the water resources board may freely examine at any time

the books, records, and accounts of any municipal water department, special water district, or

private water company.

     46-15-17. Filing reports.

     The water resources board, on behalf of the board, may require any municipal water

department, special water district, or private water company at a designated time or times, to file

with its statements and reports, in such form as it may prescribe, covering any data or information

which it deems necessary or proper to enable it to carry into effect the applicable provisions of this

chapter.

     46-15-18. Relations with other governmental bodies and agencies.

     In order to adequately protect the interests of the state in its water resources, the water

resources board is hereby authorized to:

     (1) Cooperate with the appropriate agencies of the federal government, of the state or other

states, or any interstate bureau, group, division, or agency with respect to the use of ground and

surface waters, which are without or wholly or partially contained within this state, and to endeavor

to harmonize any conflicting claims which may arise therefrom.

     (2) Appear, represent, and act for the state in respect to any proceeding before either a

federal or state governmental body or agency where the water resources of the state may be

affected, and may do and perform such acts in connection therewith as it deems proper to protect

the interests of the state.

     (3) Present for the consideration of the congress or officers of the federal government, as

occasion requires, the just rights of the state in relation to its waters, and institute and prosecute

appropriate actions and proceedings to secure those rights, and defend any action or proceeding

calculated to impair those rights.

     (4) Facilitate, encourage and support water resources management on a watershed basis, in

a manner that supports systems level planning.

     46-15-19. Construction of references.

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     Whenever in any general or public law the words, "water resources coordinating board" or

"the director of the department of the environment" shall appear, the same shall be deemed to refer

to and to mean the "water resources board" .

     46-15-20. Exemption from taxation.

     The exercise of the powers granted by this chapter will be in all respects for the benefit of

the people of the state, for the increase of their commerce, welfare, and prosperity, and for the

improvement of their health and living conditions, and will constitute the performance of an

essential government function, and neither the water resources board nor any municipal water

agency, or department, or special water district to whom the water resources board has leased any

of its properties or other facilities, shall or may be required to pay taxes or assessments upon or in

respect of those properties or facilities acquired, leased, or used by the water resources board under

the provisions of this chapter, or upon any improvements constructed on property owned by the

board by any municipal water agency, or department, or special water district, or upon the income

therefrom; provided, however, the general assembly may direct payments in lieu of taxes to be paid

to a city or town in which those properties or facilities are located.

     46-15-21. Reporting requirements.

     (a) Within ninety (90) days after the end of each fiscal year, the board shall approve and

submit an annual report to the governor, the speaker of the house of representatives, and the

president of the senate and the secretary of state of its activities during that fiscal year. The report

shall provide:

     (i) A summary of the board's meetings including when the board and its committees met,

subjects addressed, decisions rendered and meeting minutes; a summary of the board's actions

including a listing of the proposals and plans for public water supply systems received; hearings

held, findings, assessments, recommendations, and decisions rendered concerning proposed

projects for public water supply systems; water supply studies conducted; consents issued for

transport of water to another state; decisions rendered requiring or authorizing a water supplier to

provide water to other water supply systems; rules and regulations promulgated; violations and

penalties assessed; actions taken to abate nuisances or restrain or prevent violations, and any actions

taken to investigate the activities of municipal water departments, special water districts or private

water companies; a synopsis of the hearings, complaints, suspensions, or other legal matters related

to the authority of the board; a summary of any training courses held pursuant to subdivision 46-

15.1-5.2(2); a consolidated financial statement of all funds received and expended by the board

including the source of the funds; a listing of the staff and/or consultants employed by the board;

and a listing of findings and recommendation derived from board activities.

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     (ii) The report shall be posted electronically as prescribed in § 42-20-8.2. The director of

the department of administration shall be responsible for the enforcement of the provisions of this

subsection.

     (b) Forthwith upon passage of this act, and within ninety (90) days of the end of the fiscal

year 2006, the board shall submit to the governor, the speaker of the house of representatives, and

the president of the senate an annual work plan for the upcoming fiscal year. Said annual work plan

shall list the tasks the board plans on working on over the course of the upcoming fiscal year

including a description of how the elements are consistent with and supportive of the systems level

plan developed and implemented by the Rhode Island Bays, Rivers, and Watersheds Coordination

Team, as prescribed in § 46-31-5.

     (c) Within ninety (90) days of the end of the fiscal year 2006, and within ninety (90) days

after the end of each fiscal year thereafter, the board shall submit to the governor, the speaker of

the house of representatives, the president of the senate and the secretary of state an annual

performance report for that fiscal year. Said report shall describe and evaluate the successes and

shortcomings of the implementation of the annual work plan pertaining to that fiscal year, and shall

include a summary of progress made in the following areas: formulation and maintenance of a long

range guide plan and implementing program for the development of major water resources and

transmission systems, as prescribed in § 46-15-13; promulgation of an emergency plan for water

supplies in the event of a water emergency declaration by the governor, as prescribed in § 46-15-

14; and actions undertaken for the cooperative development, conservation, and use of state water

resources, as prescribed in § 46-15-13. The report shall be posted electronically as prescribed in §

42-20-8.2. The director of the department of administration shall be responsible for the enforcement

of the provisions of this subsection.

     46-15-22. Transfer of powers and functions to the water resources board.

     There are hereby transferred to the water resources board:

     (1) Those functions of the department of administration which were administered through

or with respect to board programs in the performance of strategic planning as defined in § 42-11-

10(c);

     (2) All officers, employees, agencies, advisory councils, committees, commissions, and

task forces who were performing strategic planning functions as defined in § 42-11-10(c); and

     (3) Those duties and functions of the statewide planning program for support to the Rhode

Island rivers council.

     46-15-23. Coastal resources management council.

     Nothing contained in this chapter shall abrogate or affect the powers and duties of the

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coastal resources management council under chapter 23 of this title.

     SECTION 2. Chapter 46-15.1 of the General Laws entitled "Water Supply Facilities" is

hereby repealed in its entirety.

CHAPTER 46-15.1

Water Supply Facilities

     46-15.1-1. Legislative declaration -- Water resources board (corporate) -- Applicable

sections.

     The findings and declarations made by § 46-15-1 are hereby made applicable to this

chapter.

     The water resources board (corporate) under this chapter constitutes a body politic and

corporate and a public instrumentality of the state having a distinct legal existence from the state

and not constituting a department of state government.

     The following sections also apply to the water resources board, the state agency: §§ 46-

15.1-2(a), 46-15.1-2.2, 46-15.2-3, 46-15.1-2.4, 46-15.1-4.1, 46-15.1-5(15) -- (25), 46-15.1-20 and

46-15.1-21.

     46-15.1-1.1. Repealed.

     46-15.1-2. Board created -- Appointment of members.

     (a) There is hereby authorized, created and established a water resources board consisting

of fifteen (15) members as follows:

     (1) Eleven (11) members shall represent the public and shall be appointed by the governor

with the advice and consent of the senate as herein provided;

     (i) One of whom shall be a person who is actively engaged in the agricultural business,

preferably an owner and/or operator of an agricultural business, with respect to which appointment

the governor shall give due consideration to the recommendation of the Rhode Island Agricultural

Council established pursuant to the provisions of chapter 3 of title 2;

     (ii) One of whom shall be a representative of a conservation organization, with respect to

which appointment the governor shall give due consideration to the recommendation of the

Environment Council of Rhode Island;

     (iii) One of whom shall be a professional with expertise in geology and/or hydrology;

     (iv) One of whom shall be a professional with expertise in engineering with relevance to

water supply;

     (v) One of whom shall be a professional with expertise in financial planning and/or

investment;

     (vi) One of whom shall be a professional with expertise in land and/or watershed

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management;

     (vii) One of whom shall be a representative of a public water system that withdraws more

than one hundred thousand (100,000) gallons per day, primarily from a surface water supply;

     (viii) One of whom shall be a representative of a public water system that withdraws more

than one hundred thousand (100,000) gallons per day, primarily from a ground water supply;

     (ix) One of whom shall be a representative of a water user that withdraws more than one

hundred thousand (100,000) gallons per day; and

     (x) Two (2) of whom shall be members of the general public.

     (2) No person shall be eligible for appointment to the board unless he or she is a resident

of this state. The remaining four (4) members are the director of environmental management, the

director of the Rhode Island commerce corporation, the associate director of the division of

planning within the department of administration, and the director of the department of health.

     (3) Members shall serve until their successors are appointed and qualified and shall be

eligible to succeed themselves. In the month of February in each year, the governor, with the advice

and consent of the senate, shall appoint successors to the public members of the board whose terms

shall expire in such year, to hold office commencing on the day they are qualified and until the first

day of March in the third year after their respective appointments and until their respective

successors are appointed and qualified.

     (b) Those members of the board as of the effective date of this act shall continue to serve

until their term expires or they resign, whether or not they meet the criteria set out in subsection

(a);

     (c) Any vacancy which may occur in the board for a public member shall be filled by the

governor, with the advice and consent of the senate, for the remainder of the unexpired term in the

manner as prescribed in (a) of this subsection. Each ex officio member of the board may designate

a subordinate within his or her department to represent him or her at all meetings of the board.

     (d) Members of the board shall be removable by the governor pursuant to § 36-1-7 of the

general laws and for cause only, and removal solely for partisan or personal reasons unrelated to

capacity or fitness for the office shall be unlawful.

     (e) The water resources board is designated to carry out the provisions of this chapter. In

exercising its powers under this chapter, the board constitutes a body politic and corporate and a

public instrumentality of the state having a distinct legal existence from the state and not

constituting a department of the state government. The board may take action under this chapter at

any meeting of the board. A member of the board who is affiliated with a public water system in

Rhode Island, as provided in § 46-15-2, shall not thereby be disqualified from acting as a member

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of the board on a transaction under this chapter with a public water system. Upon the enactment of

this chapter, and annually in the month of March thereafter, the board shall choose a treasurer to

act as such under this chapter. The treasurer need not be a member of the board or of its staff and

shall serve until his or her successor is chosen and takes office, unless sooner removed by the board

with or without cause. In the event of a vacancy in the office of treasurer, the board shall fill the

vacancy for the unexpired term.

     (f) Nothing contained herein shall be construed as terminating or discontinuing the

existence of the water resources board as it exists prior to July 1, 1993, for purposes of chapters

15.1, 15.2, and 15.3 of this title, and the water resources board created hereby shall be and shall be

deemed to be a continuation of the water resources board as it existed prior to July 1, 1993, for the

purposes enumerated in chapters 15.1, 15.2, and 15.3 of this title. Nothing contained herein shall

affect the bonding or financing authority of the water resources board as it exists prior to July 1,

1993, nor shall anything contained herein be construed as terminating, altering, discontinuing, or

in any way impairing the bonding or financing power of the water resources board as it exists under

chapters 15.1, 15.2, and 15.3 of this title prior to July 1, 1993.

     46-15.1-2.2. Qualifications of members.

     (a) Each public member of the board, before entering upon his or her duties, shall take an

oath to administer the duties of his or her office faithfully and impartially, and the oath shall be

filed in the office of the secretary of state.

     (b) No member of the board shall be in the employ of, or own any stock in, or be in any

way directly or indirectly financially interested in any private corporation or company engaged in

the supply, storage, distribution, or sale of water. No member shall, either personally or through a

partner or agent, render any professional service or make or perform any business contract with or

for any such corporation or company; nor shall any member, directly or indirectly, receive a

commission, bonus, discount, present, or reward from any such corporation or company; provided,

however, that the limitation set forth herein shall not apply in the case of those public members

affiliated with public water systems who receive directors' fees or other payments for their services

with a public water system.

     46-15.1-2.3. Officers of the board -- Quorum and vote required for action.

     Forthwith, and upon the enactment of this chapter, and annually in the month of March,

thereafter, the board shall elect one of its public members as chairperson, one of its public members

as vice chairperson, and shall also elect a secretary either from its membership or its technical staff.

The board may elect from among its members such other officers as it deems necessary. Nine (9)

voting members of the board constitutes a quorum. A majority vote of those present and voting

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shall be required for action. No vacancy in the membership of the board shall impair the right of a

quorum to exercise all of the rights and perform all of the duties of the board.

     46-15.1-2.4. Compensation of members.

     (a) The members of the board shall serve without compensation.

     (b) The members of the board may also be reimbursed for their actual expenses necessarily

incurred in the performance of their duties.

     46-15.1-3. Repealed.

     46-15.1-4. Purposes.

     The purposes of the water resources board under this chapter shall be to carry out the

powers and duties of the board set forth in this chapter, including, without limitation, to establish

water supply facilities and lease those facilities to cities, towns, districts, and other municipal, quasi

municipal or private corporations or companies engaged in the water supply business in Rhode

Island, or contract for the use of the facilities by the parties, or sell to those parties the water derived

from, carried by, or processed in the facilities.

     46-15.1-4.1. "Water supply facilities" defined.

     The phrase "water supply facilities" wherever appearing in this chapter and chapter 15 of

this title means water reservoirs, wells and well sites, treatment, transmission or distribution

systems, stream gauging stations, any and all real estate or interests in real estate held in connection

with those, all equipment and improvements held in connection with those, and any and all other

property or interests in them, real, personal or mixed, used or held to be used in connection with

those.

     46-15.1-5. Powers.

     (a) The board shall carry out its functions and shall have the following powers:

     (1) To adopt a seal and to alter the seal from time to time;

     (2) To sue and be sued;

     (3) To purchase, hold, and dispose of real and personal property, or interests therein, and

to lease the property as lessee or lessor;

     (4) To make or cause to be made such surveys and borings as it may deem necessary;

     (5) To engage engineering, legal, accounting, and other professional services;

     (6) To make contracts;

     (7) To employ personnel and fix their rates of compensation;

     (8) To borrow money and issue its bonds and notes as hereinafter provided;

     (9) To apply and contract for and to expend assistance from the United States or other

sources, whether in the form of a grant or loan or otherwise;

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     (10) To adopt and amend bylaws for the regulation of its affairs and the conduct of its

business;

     (11) To invest or deposit funds in demand deposits, savings deposits, and time deposits in

any bank or trust company which is a member of the Federal Deposit Insurance Corporation or in

any obligations issued or guaranteed by the United States or any agency or instrumentality thereof,

or as provided in § 35-10-11;

     (12) To establish, operate, and maintain or lease to others, or contract with others for the

use of, such water supply facilities as may be reasonably required for the fulfillment of its purposes;

     (13) To purchase and sell water;

     (14) To exercise such other powers as may be necessary or incidental to the exercise of the

foregoing powers or to the accomplishment of the purposes of the board;

     (15) To acquire, within the limitation of funds therefor, the sites, appurtenant marginal

lands, dams, waters, water rights, rights of way, easements, and other property in interests in

property for reservoirs, groundwater wells, well sites, and for such pipe lines, aqueducts, pumping

stations, filtration plants, and auxiliary structures as may be necessary or desirable for the treatment

and distribution of water from those reservoirs, groundwater wells, and well sites. Lands acquired

under the provisions of this section shall be acquired with the approval of the governor by purchase,

gift, devise, or otherwise on such terms and conditions as the board shall determine, or by the

exercise of eminent domain, in accordance with the provisions of chapter 6 of title 37, as amended,

insofar as those provisions are consistent with the provisions hereof;

     (16) To construct or purchase water reservoirs, wells and well sites, processing facilities,

transmission or distribution systems, and other facilities, including existing facilities of municipal

water agencies or departments, special water districts, or private water companies, necessary to

accomplish the purposes of this chapter and to implement its plans and program;

     (17) To acquire the assets, assume the liabilities, or to effect the merger into itself of any

corporation or other organization, including public or private water supply systems incorporated or

organized under the laws of this state, which corporation or organization has as its principal

business the establishment of water supply facilities or provision of related services, all upon such

terms and for such consideration as the board shall deem to be appropriate;

     (18) To lease, sell, or otherwise convey any reservoir sites or other water supply or

distribution facilities acquired, constructed, or purchased by the board to any municipal water

agency or department or special water district or private water company, upon such terms as the

board shall deem appropriate;

     (19) To provide for cooperative development, conservation, and use of water resources by

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the state, municipal agencies or departments, special water districts or privately owned water

systems, the board may:

     (i) Authorize publicly or privately owned water supply agencies to build structures or

install equipment on land owned or leased by the board.

     (ii) Enter into contracts with publicly or privately owned water supply agencies for

operation of any facilities owned or leased by the board or operate any such facility by itself.

     (20) To enter into contracts to supply raw or processed water to publicly or privately owned

water supply agencies, which shall be approved as to substance by the director of administration

and as to form by the attorney general;

     (21) To review all plans and proposals for construction or installation of facilities for water

supply in accordance with the applicable sections of chapter 15 of this title;

     (22) To make loans to publicly owned water supply agencies for acquisition, construction,

and renovation of water supply facilities from funds which may be appropriated for this purpose

by the general assembly, from bonds issued for this purpose, or from other funds which may

become available to the board for this purpose;

     (23) To borrow money temporarily from the water development fund, for the purposes of

this chapter, and to implement its plans and programs relating to reservoir development, exclusive

of the acquisition of sites for the development of surface reservoirs, in anticipation of revenue or

federal aid;

     (24) To enter into contracts and/or agreements with such departments, divisions, agencies,

or boards of the state as are directed by the governor to regulate, manage, or perform related

functions on any lands or waters acquired under the provisions of the Big River -- Wood River

Reservoir Site Acquisition Act (P.L. of 1964, chapter 133); and

     (25) To compensate the departments, divisions, agencies, or boards from the water

development fund in an amount equal to the cost of providing the functions or services as are

directed to be performed by the governor. The compensation shall be mandatory and shall be

provided according to procedures established by the department of administration.

     (b) The board as a body politic and corporate and public instrumentality created pursuant

to this chapter is subject to § 46-15.1-5(1) -- (25). The board as the state agency pursuant to chapter

15 of this title is subject to § 46-15.1-5(15) -- (25).

     46-15.1-5.1. Powers in support of the Rhode Island rivers council.

     Upon the request of the Rhode Island rivers council, the board may exercise any powers

set forth in § 46-15.1-5 on behalf of the Rhode Island rivers council in order to accomplish the

purposes of the council.

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     46-15.1-5.2. Duties of the board.

     (a) The board shall have the following additional duties:

     (1) Within ninety (90) days after the end of each fiscal year, the board (corporate) shall

submit an annual report to the governor, the speaker of the house of representatives, the president

of the senate, and the secretary of state of its activities during that fiscal year. The report shall

provide:

     (i) A summary of the board's (corporate) meetings including when the board (corporate)

met, subjects addressed, and decisions rendered; a summary of the board's (corporate) actions

including a listing of entities for which water supply facilities were established, leased, contracted

for the use of, or which received water sold from such facilities; bonds and notes issued; grants or

loans applied or contracted for; funds invested or deposited; assets acquired; assets sold, leased, or

conveyed to municipal water agencies, departments, special water districts, or private water

companies; contracts entered into to supply raw or processed water; trust agreements entered into

with corporate trustees; actions taken in support of the work of the Rhode Island Rivers Council; a

synopsis of any law suits or other legal matters related to the authority of the board (corporate); a

consolidated financial statement of all funds received and expended by the board (corporate)

including the source of the funds; a listing of the staff and/or consultants employed by the board

(corporate); a summary of performance during the previous fiscal year including accomplishments,

shortcomings and remedies; and a listing of findings and recommendation derived from board

(corporate) activities.

     (ii) The report shall be posted electronically on the general assembly and the secretary of

state's website as prescribed in § 42-20-8.2. The director of the department of administration shall

be responsible for the enforcement of the provisions of this section.

     (2) The board shall conduct a training course for newly appointed and qualified members

and new designees of ex-officio members within six (6) months of their qualification or

designation. The course shall be developed by the general manager, approved by the board, and

conducted by the general manager. The board may approve the use of any board or staff members

or other individuals to assist with training. The training course shall include instruction in the

following areas: the provisions of chapters 46-13, 46-14, 46-15, 46-15.1, 46-15.2, 46-15.3, 46-15.4,

46-15.5, 46-15.6, 46-15.7, 42-46, 38-2 and 36-14; and the board's rules and regulations.

     (b) The director of the department of administration shall, within ninety (90) days of the

effective date of this act [June 16, 2006], prepare and disseminate training materials relating to the

provisions of chapters 42-46, 36-14 and 38-2.

     46-15.1-6. Purchase or lease from state.

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     The state properties committee is authorized on behalf of the state, from time to time, to

sell and convey or lease to the board, for the purposes of this chapter, any property (which may

include water sources or the right to take water) held by the state for water supply purposes, or any

interest therein. Any such sale of property shall be for fair market value as determined by the board

and the state properties committee. Any such lease shall be for a term not exceeding fifty (50) years

and shall be for such fair rental value as may be set forth in the lease or determined in accordance

with the lease.

     46-15.1-7. Purchases from and leases, pledges and sales to others.

     (a) Any city, town, district, or other municipal, quasi municipal, or public or private

corporation or company engaged in the water supply business in Rhode Island is authorized, from

time to time, to sell or otherwise convey to the board any water supply facilities held by that entity,

and to lease from the board with or without an option to purchase, or contract with the board for

the use of any water supply facilities, or any interest therein, held by the board under this chapter,

or to contract to purchase water to be supplied by the board under this chapter. Any city, town,

district, or other municipal, quasi municipal, or public or private corporation or company engaged

in the water supply business in Rhode Island and constituting a "public utility" within the meaning

of § 39-1-2(20) is further authorized to pledge to the board water fees and charges. The provisions

of any other laws or ordinances, general, special, or local, or of any rule or regulation of the state

or any municipality, or of any municipal charter provision, restricting or regulating in any manner

the power of the state or any municipality to lease (as lessee or lessor) or sell or convey property,

real, personal, or mixed, or to pledge water fees and charges shall not apply to leases and sales

made with the board pursuant to this chapter.

     (b) Any city, town, district, or other municipal, quasi municipal, or public or private

corporation or company which so leases water facilities from the board, or so contracts with the

board for the use thereof, is authorized, from time to time, to contract with any other public or

private water system for the purchase or sale of water to be conveyed or processed through or in

such facilities, and the latter is similarly authorized to enter into a contract with the former.

     (c) Any lease, pledge agreement or contract under this section shall be for a term not

exceeding fifty (50) years. A lease, pledge agreement, or contract may be made by a city, town, or

district hereunder, either prior or subsequent to the making of any appropriations which may be

needed to carry out the obligations of the city, town, or district under the lease, pledge agreement,

or contract. Any such lease, pledge agreement, or contract shall provide for cooperative

undertakings between the city, town or district and the board regarding the construction or

installation of facilities for water supply being financed.

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     (1) Notwithstanding any contrary provisions of any other laws or ordinances, general,

special or local, or of any rule or regulation of the state or any municipality, or any municipal

charter provision, restricting in any manner the power of a municipality to incur debt, the

obligations of any city, town, or district, under any lease, pledge agreement or contract shall not be

considered indebtedness within the meaning of any limitation of indebtedness or of any provision

relating to the manner of authorizing or incurring indebtedness.

     (2) Pledges or grants of security interests by a city, town or district hereunder shall be valid

and binding from the time when the pledge or grant in security interest is made; the water fees and

charges or other monies so pledged and then held or thereafter received by such city, town or district

shall be immediately subject to the lien of the pledge without any physical delivery thereof, or

further act; and the lien of any such pledge or grant of a security interest shall be valid and binding

as against all parties having claims of any kind in tort, contract, or otherwise against such city, town

or district, irrespective of whether the parties have notice thereof.

     (3) The agreement by which a pledge or grant of a security interest is created need not be

filed or recorded except in the records of the board, and no filing need be made under the Uniform

Commercial Code.

     46-15.1-8. Funds.

     (a) Except as otherwise provided by the board, the funds of the board under this chapter

shall be in the custody of the treasurer of the board. The fiscal year of the board under this chapter

shall end on June 30 of each calendar year. All payments by the board under this chapter shall be

made solely from the funds derived by the board from the exercise of its powers under this chapter.

Payments to the state hereunder, in the nature of current expenses, shall be a first charge on the

revenues of the project or projects to which the payments relate, and on such other funds as may be

available hereunder to pay the current expenses of the project or projects. Payments to the state

hereunder in the nature of capital costs shall be a first charge on the proceeds of bonds or notes

issued by the board to finance the project or projects to which the payments relate, and on such

other funds as may be available hereunder to pay the capital costs of the project or projects. A sale

shall not be made by the state to the board under § 46-15.1-6 unless the necessary funds are

available to pay the purchase price upon the conveyance.

     (b) The board may expend for any corporate purpose hereunder such sums as may be

advanced to the board for the purpose by the state or by any city, town, district, or other municipal

or quasi municipal or public or private corporation or company engaged in the water supply

business, and each of those entities (other than the state) is authorized to make advances to the

board in connection with any project or proposed project in which it is interested. Each advance by

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the state shall be repaid as provided in the foregoing paragraph. Each advance by any other entity

shall be repaid to the extent and subject to the terms specified in or otherwise agreed at the time of

the advance.

     46-15.1-9. Temporary borrowing.

     The board may borrow money temporarily for the purposes of this chapter and chapter 15.3

of this title in anticipation of revenue or federal aid or in anticipation of the issue of bonds, and

issue notes therefor. Notes issued in anticipation of revenue may not mature or be refunded beyond

one year from the date of their original issue, and notes issued in anticipation of federal aid or of

the issue of bonds may not mature or be refunded beyond five (5) years from the date of their

original issue. Notes shall be payable solely from such funds as are derived under this chapter or

chapter 15.3 of this title and provided for payment under the applicable trust agreement or

resolution described in § 46-15.1-11, and shall contain a statement to this effect on their face.

     46-15.1-10. Bonds.

     (a) The board may borrow money for capital purposes under this chapter and for the

purposes of chapter 15.3 of this title and issue its bonds therefor. Those purposes may include all

costs (whether incurred prior to or after the issue of bonds or notes hereunder) of purchase or lease

of property, site development, construction, improvement, enlargement, reconstruction, alteration,

equipment, furnishings, demolition, or removal of existing buildings or structures (including the

cost of purchasing or leasing any lands to which those buildings or structures may be moved),

financing charges, interest prior to and during the carrying out of any project, interest for up to one

year after the completion or estimated completion date of any project, planning, engineering, and

legal services, administrative expenses, the funding of notes issued by the board for those purposes,

the refinancing of bonds or notes issued by any city, town, district or other municipal, quasi

municipal, or public corporation for those purposes, the reserves for debt service or other capital or

current expenses as may be required by a trust agreement or resolution securing notes or bonds,

and all other expenses incidental to the determination of the feasibility of any project or to carrying

out the project or to placing the project in operation.

     (b) Bonds shall be payable solely from such funds as are derived under this chapter or

chapter 15.3 of this title including, without limiting the generality of the foregoing, revenues

derived from pledges of water fees and charges from leasing any water supply facilities to any city,

town, district, or other municipal, quasi municipal or public or private corporation or company

engaged in the water supply business in Rhode Island, or water quality protection charges imposed

under chapter 15.3 of this title, or funds in the watershed protection fund established under chapter

15.3 of this title and provided for payment under the applicable trust agreement or resolution

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described in § 46-15.1-11, and shall contain a statement to this effect on their face.

     (c) The bonds of each issue shall be dated, shall bear interest at such rate or rates, shall

mature at such time or times not exceeding forty (40) years from their dates of issue, as may be

determined by the board, and may be made redeemable before maturity at such price or prices and

under such terms and conditions as may be fixed by the board prior to the issue of the bonds. The

board shall determine the form of the bonds, including interest coupons to be attached thereto, and

the manner of their execution, and shall fix the denomination or denominations of the bonds and

the place or places of payment of the principal and interest, which may be at any bank or trust

company within or without the state. The bonds shall bear the seal of the board or a facsimile

thereof.

     (d) In case any officer whose signature or a facsimile of whose signature shall appear on

any bonds, coupons, or notes issued by the board shall cease to be an officer before the delivery

thereof, the signature or the facsimile shall nevertheless be valid and sufficient for all purposes the

same as if the officer had remained in office until after the delivery.

     (e) The bonds may be issued in coupon or in registered form, or both, as the board may

determine, the provision may be made for the registration of any coupon bonds as to principal alone

and also as to both principal and interest, for the reconversion into coupon bonds of any bonds

registered as to both principal and interest, and for the interchange of registered and coupon bonds.

The board may sell its bonds and notes in such manner, either at public or private sale, and for such

price, as it may determine will best effect the purposes of this chapter.

     (f) Prior to the preparation of definitive bonds, the board may issue interim receipts or

temporary bonds, with or without coupons, exchangeable for definitive bonds when those bonds

shall have been executed and are available for delivery. The board may also provide for the

replacement of any bonds, notes, or coupons which shall become mutilated or shall be destroyed

or lost.

     (g) Bonds and notes may be issued under this chapter without obtaining the consent of any

other department, division, commission, board, bureau, or agency of the state, and without any

other proceedings or the happening of any other conditions or things than those proceedings,

conditions, or things which are specifically required by this chapter for the issue of those bonds or

notes.

     46-15.1-11. Pledge of revenues and other funds.

     (a)(1) In the discretion of the board, any bonds or notes issued by it may be secured by a

trust agreement between the board and a corporate trustee, which may be any trust company or

bank whose principal office is within or without the state. The trust agreement or the resolution

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providing for the issue of the bonds or notes may pledge or assign, in whole or in part, the revenues

and other moneys held or to be received by the board under this chapter or chapter 15.3 of this title,

and may convey, mortgage, or grant or assign a security interest in any water supply facilities

pledge agreement or lease thereof in connection with which those bonds shall have been authorized.

     (2) The trust agreement or resolution may contain such provisions for protecting and

enforcing the rights and remedies of the bondholders or noteholders as may be reasonable and

proper and not in violation of law, including provisions defining defaults and providing for

remedies in the event thereof (which may include the acceleration of maturities), and covenants

setting forth the duties of, and limitations on, the board in acting under this chapter in relation to

the purchase or leasing of property, construction, improvement, enlargement, alteration, equipping,

furnishing, maintenance, operation, repair, insurance, and disposition of property, the custody,

safeguarding, investment, and application of monies, the issue of additional bonds or notes, the

fixing, revision, and collection of rates and rents, the use of any surplus bond or note proceeds, the

establishment of reserves, and the making and amending of leases, pledge agreements and

contracts.

     (3) The board is authorized to fix, revise, and collect rates and rents for water furnished by

it or facilities leased by it to others. The rates and rents shall not be subject to supervision or

regulation by any other commission, board, bureau, or agency of the state or of any municipality

or other political subdivision of the state, but the rates and rents shall be subject to the terms of any

applicable contracts and leases.

     (b)(1) It shall be lawful for any bank or trust company to act as a depository or trustee of

the proceeds of bonds or notes or of revenues or other moneys under any such trust agreement or

resolution, and to furnish such indemnifying bonds or to pledge such securities as may be required

by the board. The trust agreement or resolution may set forth the rights and remedies of the

bondholders or noteholders and of the trustee, and may restrict the individual right of action by

bondholders or noteholders. In addition to the foregoing, the trust agreement or resolution may

contain such other provisions as the board may deem reasonable and proper for the security of the

bondholders or noteholders.

     (2) All expenses incurred in carrying out the provisions of the trust agreement or resolution

may be treated as part of the board's cost of operation and maintenance under this chapter.

     (3) The pledge or mortgage or grant of a security interest by the trust agreement or

resolution shall be valid and binding from the time when the pledge or mortgage or grant of a

security interest is made; the revenues or other moneys so pledged and then held or thereafter

received by the board shall immediately be subject to the lien of the pledge without any physical

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delivery thereof or further act; and the lien of any such pledge or mortgage or grant of a security

interest shall be valid and binding as against all parties having claims of any kind in tort, contract,

or otherwise against the board, irrespective of whether the parties have notice thereof.

     (4) Neither the resolution nor any trust agreement by which a pledge or mortgage or grant

of a security interest is created need be filed or recorded except in the records of the board, and no

filing need be made under the Uniform Commercial Code.

     46-15.1-12. Trust funds.

     All money received by the board under this chapter, whether as proceeds from the sale of

bonds or notes or as revenues or otherwise, shall be deemed to be trust funds to be held and applied

solely as provided in this chapter.

     46-15.1-13. Remedies.

     Any holder of bonds or notes issued under this chapter or of any of the coupons

appertaining thereto, and the trustee under a trust agreement or resolution securing the same, except

to the extent the rights herein given may be restricted by the trust agreement or resolution, may

bring suit upon the bonds, notes, or coupons and may, either at law or in equity, by suit, action,

mandamus, or other proceedings, protect and enforce any and all rights under the laws of the state

or granted hereunder or under the trust agreement or resolution, and may enforce and compel the

performance of all duties required by this chapter or by the trust agreement or resolution to be

performed by the board or by any officer thereof, including the fixing, revising, and collecting of

rates and rents. The court may appoint a receiver in any such proceedings.

     46-15.1-14. Exemption from taxation.

     (a) The exercise of the powers granted by this chapter shall be in all respects for the benefit

of the people of the state, and for the improvement of their health and living conditions, and the

purchase, lease, operation, and maintenance of projects by the board under this chapter will

constitute the performance of essential governmental functions. The board shall not be required to

pay any taxes or assessments upon any property acquired or used by the board hereunder or upon

its income, existence, or franchise hereunder, and the bonds and notes issued by the board hereunder

and the interest thereon shall be exempt from taxation in the state. Sales to the board hereunder

shall not be subject to any sales or similar tax, and the use of property by the board hereunder shall

not be subject to any use or similar tax. The lease of property of the board to others hereunder for

water supply purposes, contracts for the use by others, and the use thereof by the lessees or others

contracting with the board, shall not be subject to any sales, use, or similar tax, and the lessees or

other users under the contracts shall not be required to pay any property taxes or assessments on

the property except as provided below.

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     (b) Except as to property leased to others, the board shall pay annually from its revenues

hereunder, after first providing for debt service and other expenses and reserve requirements

required by an applicable trust agreement or bond or note resolution to be met from current

revenues, to each city, town, or district, a sum of money, in lieu of property taxes on its property

hereunder, equal to any property tax levied on the property by the city, town, or district during the

year next preceding the acquisition of the property by the board. As to property leased to others,

the lessee shall pay such amount, except to the extent that provision is made in the lease for payment

by the board, under the terms set forth in the foregoing sentence.

     46-15.1-15. Bonds and notes eligible for investment.

     Bonds and notes issued by the board hereunder are hereby made securities in which all

public officers and public bodies of the state and its political subdivisions, all insurance companies,

banks, trust companies, banking associations, investment companies, savings institutions,

executors, administrators, trustees, and other fiduciaries may properly and legally invest funds,

including capital in their control or belonging to them. The bonds and notes are hereby made

securities which may properly and legally be deposited with and received by any state or municipal

officer or any agency or political subdivision of the state for any purpose for which the deposit of

bonds or obligations is now or may hereafter be authorized by law.

     46-15.1-16. Negotiable instruments.

     Notwithstanding any of the foregoing provisions of this chapter or any recitals in any bonds

and notes issued by the board hereunder, all the bonds and notes shall be deemed to be negotiable

instruments under the laws of the state and investment securities under the Uniform Commercial

Code.

     46-15.1-17. Refunding bonds.

     (a) The board may issue refunding bonds for the purpose of paying any of its bonds issued

hereunder at maturity or upon acceleration or redemption. The refunding bonds may be issued in

sufficient amounts to pay or provide the principal of the bonds being refunded, together with any

redemption premium thereon, any interest accrued or to accrue to the date of payment of the bonds,

the expenses of issue of the refunding bonds, the expenses of redeeming the bonds being refunded,

and such reserves for debt service or other capital or current expenses from the proceeds of the

refunding bonds as may be required by a trust agreement or resolution securing bonds or notes. The

refunding bonds may be issued at such time or times simultaneous with or prior to the maturity,

acceleration, or redemption date of the bonds being refunded as the board may determine to be in

the public interest.

     (b) The proceeds of bonds or notes issued for the purpose of refunding outstanding bonds

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or notes may be applied, in the discretion of the board, to the purchase, retirement at maturity, or

redemption of those outstanding bonds or notes either on their earliest or a subsequent redemption

date, and may, pending that application, be placed in escrow. Any escrowed proceeds may be

invested and reinvested in obligations of or guaranteed by the United States, or in certificates of

deposit, time deposits, or repurchase agreements fully secured or guaranteed by the state or the

United States, or an instrumentality of either, maturing 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 and notes to be so refunded. 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 board for use by it in furtherance of its purposes.

     (c) The issue of refunding bonds, the maturities and other details thereof, the security

therefor, the rights of the holders thereof, and the rights, duties, and obligations of the board in

respect of the same shall be governed by the provisions of this chapter relating to the issue of bonds,

other than refunding bonds, insofar as the provisions may be applicable, but no bonds shall be

refunded to a date more than forty (40) years from the date of their original issue.

     46-15.1-17.1. Dissolution.

     If the board shall be dissolved all funds of the board not required for the payment of bonds

shall be paid to the general treasurer for the use of the state, and all property belonging to the board

shall be vested in the state and delivered to it.

     46-15.1-17.2. Inconsistent provisions.

     Insofar as the provisions of this chapter are inconsistent with the provisions of any other

law or ordinance, general, special or local, or of any municipal charter or of any rule or regulation

of the state or any municipality, the provisions of this chapter shall be controlling.

     46-15.1-17.3. Limitation of powers.

     The state does hereby pledge to and agree with the holders of any bonds issued by the board

pursuant to this chapter that the state will not alter or limit the rights hereby vested in the board to

fulfill the terms of any agreement made with or for the benefit of the holders of bonds, or in any

way impair the rights and remedies of bondholders, until the bonds, 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 board is authorized to include this pledge and agreement of the state in any

agreement with bondholders.

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     46-15.1-18. Severability -- Constructions.

     (a) If any provision of this chapter shall be held invalid in any circumstance, the invalidity

shall not affect any other provisions or circumstances.

     (b) This chapter shall be construed in all respects so as to meet all constitutional

requirements. In carrying out the purposes and provisions of this chapter, all steps shall be taken

which are necessary to meet constitutional requirements whether or not those steps are required by

statute.

     (c) This chapter shall be construed liberally in aid of its declared purposes. The powers

granted hereby shall be in addition to, independent of, and not in substitution for any other powers

granted by law.

     46-15.1-19. Surface reservoirs.

     Notwithstanding the foregoing, no provision of this chapter, nor any language contained

therein, shall allow or permit any funds, proceeds, revenues, or other sums of money derived by,

through, or from the issuance of revenue bonds as authorized under this chapter, to be used for the

design or construction of any surface reservoirs, without the approval of the general assembly, or

to be used in connection with the acquisition of sites for the development of surface reservoirs

through the exercise by the water resources board of the power of eminent domain as provided

under § 46-15.1-5(15) and in accordance with the provisions of chapter 6 of title 37.

     46-15.1-19.1. Big River Reservoir -- Administration.

     The Rhode Island water resources board, established pursuant to this chapter and chapter

15 of this title, shall be the only designated agency which will administer those lands acquired for

the Big River Reservoir as established under section 23 of chapter 133 of the Public Laws of 1964.

The director of the department of environmental management and the director's authorized agents,

employees, and designees shall, together with the water resources board in accordance with the Big

River management area land use plan for the lands, protect the natural resources of the Big River

Reservoir lands. The lands of the Big River Reservoir are subject to enforcement authority of the

department of environmental management, as provided for in chapter 17.1 of title 42, and as

provided for in title 20 of the General Laws.

     46-15.1-20. Water development account fund.

     There is created a special fund called "water development fund", a general revenue fund

within the general fund, which shall record any net proceeds which may be paid to the state as a

result of the lease of any reservoir sites or other facilities as may be acquired or constructed by the

state in accordance with the provisions of this chapter, or as otherwise authorized or permitted, or

as a result of the sale of surplus property or any interest therein, including, without limiting the

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generality of the foregoing, the sale of excess gravel, timber, or other materials located on the

reservoir sites or other facilities. Monies are to be deposited as general revenues. The amounts

appropriated shall be made available for the purposes authorized by this chapter, and also hereby

made available for borrowing from the board, in accordance with and pursuant to the provisions of

this chapter exclusive of acquisition of reservoir sites, and the state controller is hereby authorized

and directed to draw his or her orders upon the general treasurer for the payment or loan of such

sums or such portions thereof as may be required, from time to time, upon receipt by him or her of

properly authenticated vouchers.

     46-15.1-21. Annual report of water provider.

     Each water providing and water supply company both public and private doing business in

this state shall forward an annual report to the water resources board setting forth the status of any

water supply within the company's jurisdiction and control, and progress made towards achieving

the goals of the entity's water supply management plan as prescribed in §§ 46-15.3-5.1 and 46-

15.3-7.

     46-15.1-22. Discontinuation of borrowing authority and abolishment of water

resources board (corporate).

     (a) Notwithstanding any law to the contrary, including, but not limited to, § 46-15.1-10,

upon the effective date of this section, the water resources board (corporate), established as a body

politic and corporate and public instrumentality pursuant to this chapter, shall be prohibited from

borrowing money or issuing bonds for any purpose.

     (b) The water resources board (corporate) shall continue to repay existing debt until all

such debt is fully repaid. Upon the repayment by the water resources board (corporate) of all such

existing obligations, the water resources board (corporate) shall be dissolved and all existing

functions and duties of the water resources board (corporate) shall be transferred to the Rhode

Island infrastructure bank, a body politic and corporate and public instrumentality of the state

established pursuant to chapter 46-12.2.

     SECTION 3. Chapter 46-15.2 of the General Laws entitled "Water Facilities Assistance

Program" is hereby repealed in its entirety.

CHAPTER 46-15.2

Water Facilities Assistance Program

     46-15.2-1. Short title.

     This chapter shall be known as the "Rhode Island Water Facilities Assistance Program".

     46-15.2-2. Legislative findings.

     The general assembly finds and declares that:

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     (1) A number of Rhode Island municipalities periodically suffer water shortages severe

enough to require usage curtailments as a result of droughts.

     (2) The limited water supply systems and sources of these municipalities, burdened by

rising water usage caused by growth and development, will encounter increasing difficulties coping

with short-term climatologically caused shortages.

     (3) The quality of water supplies of a number of municipalities are threatened by

development and by contamination.

     (4) Population growth, commercial and industrial development, and patterns of higher

water consumption have forced some communities to abandon or supplement their inadequate or

contaminated original sources of water, and to develop new supplies of water often located beyond

their borders and outside their original service areas.

     (5) It has become evident that individual water systems serving the public often no longer

have the financial resources to find and develop adequate new water supplies. The costs of

constructing aqueducts, major transmission lines, and pumping stations to deliver water to

communities from remote sources, and the difficulties in acquiring rights-of-way, overwhelm most

communities and indicate the need for state involvement.

     (6) Water of high quality is a sufficiently abundant resource in Rhode Island that enough

water can be made available to meet all the needs of each Rhode Islander through the foreseeable

future provided that water can be conveyed to the communities and water systems in need from

remote sources.

     (7) The water resources board was established in 1967 and charged with the responsibility

of acquiring and developing new major water supplies for the people of Rhode Island. The Rhode

Island water facilities assistance program enables the water resources board to assist public water

systems in obtaining and delivering potable water to meet present and future needs throughout the

state of Rhode Island.

     (8) The water resources board and other existing agencies of state government have

adequate capability and authority to carry out this program without the creation of new agencies.

     46-15.2-3. 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:

     (1) "Distribution facilities" means the pipes and appurtenant facilities employed

specifically to deliver, to dispense, to render, or to circulate potable water directly for the benefit

of a consumer or a community of consumers.

     (2) "Intersystem facilities" means transmission facilities designed and constructed by the

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owner of any public water system having the capacity to serve two (2) or more water systems.

     (3) "Transmission facilities" means the pipes, pumping stations, and storage facilities

required to carry potable water, or raw water to a treatment facility or storage facility for later

treatment, from a water source to or throughout an area served or to be served by a public water

system for the specific purpose of supplying water to support a general population. Transmission

facilities shall not include the distribution system. Determinations concerning eligible transmission

facilities for purposes of this program shall be made by the water resources board.

     46-15.2-4. Water facilities assistance program established -- Eligibility.

     (a) There is hereby established in the water resources board a Rhode Island water facilities

assistance program. The board shall administer this program so as to ensure the proper and

systematic development of coordinated water supply and transmission facilities and shall expend

the funds available under this chapter in a manner that accomplishes this objective.

     (b) This program shall provide twenty-five percent (25%) of the cost of approved water

transmission facilities designed and constructed to serve a single water system, and shall provide

fifty percent (50%) of the cost of approved intersystem facilities. Only the construction of water

transmission and intersystem facilities and the acquisition of land or rights-of-way, together with

necessary engineering and design, are eligible for assistance under this program. Costs of

borrowing, amortization costs, legal, and all other costs attendant to the funding of water

transmission and intersystem facilities are not eligible for financial assistance under this program

and must be fully borne by the project applicant. The cost of distribution facilities as defined in this

chapter are not eligible for financial assistance under this program. Determinations of project

eligibility shall be made by the water resources board.

     (c) Only municipalities and quasi municipal water agencies are eligible to apply for

assistance under this program. Determinations of applicant eligibility shall be made by the water

resources board.

     (d) Only projects reviewed and approved by the water resources board, the division of

public utilities and carriers, and the state planning council may be funded. Each project supported

by this program must be consistent with a plan adopted and kept current by the water resources

board in accordance with § 46-15-6 and with applicable elements of the state guide plan, as adopted

and kept current by the state planning council in accordance with § 42-11-10(c); provided, however,

that with respect to any project which has been approved by the board and which thereafter becomes

eligible to participate as an intersystem facilities project, the submission to, and approval by, the

public utilities commission and statewide planning council shall not be required.

     (e) Each transmission facility supported by this program must link a water source with a

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water distribution system, both of which are complete and operational or will be so at the time that

the transmission facility is completed or is projected for future construction. The capacity of both

the water source and the distribution system must be adequate to meet present and future needs,

considering all other demands that may be placed on the same sources and distribution systems.

All determinations required under this subsection shall be made in a timely fashion by the water

resources board.

     (f) The quality of water to be conveyed through the proposed transmission system must

meet the Rhode Island department of health requirements for the most restrictive current or planned

use. All reasonable measures to assure that this level of water quality will be maintained must have

been taken.

     (g) The design and construction of an approved transmission facility must ensure that it

will remain operational for its design life with routine maintenance, and that it will resist all external

and internal forces that can be reasonably anticipated as determined by the water resources board.

     (h) The water resources board will ensure that maintenance of the transmission facility is

performed in a manner that ensures that it will remain operational throughout its design life and is

assured by a dedicated revenue such as a user fee or some other equally reliable means.

     46-15.2-5. Application to assistance program.

     (a) Applicants shall submit projects proposed for assistance under this program to the water

resources board, in the form and content prescribed by the board. The board shall coordinate the

review and disposition of all applications by all agencies concerned in an expeditious manner. The

board shall incorporate the information required by all agencies to conduct their review of proposals

in its application documents.

     (b) Upon receipt of an application, the board shall determine whether the application is

complete and contains all necessary information. Incomplete applications shall be returned to the

applicants. Complete applications shall be formally acknowledged by the board.

     (c) The board shall forward a copy of each application accepted to the division of public

utilities and carriers, to the state planning council, to the department of health and to the department

of environmental management. Review of applications by these agencies shall be conducted

concurrently.

     (d) The water resources board shall evaluate each application to determine whether all

requirements of §§ 46-15-1 and 46-15-3 have been met, and shall further ensure that:

     (1) Design and engineering of the project are sound, as provided in § 46-15.2-4(g);

     (2) The applicant has adequately demonstrated that a need exists in its community for the

water that would be provided by the project;

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     (3) The project links a water source with a water distribution system, as set forth in § 46-

15.2-4(e);

     (4) The distribution system owned or to be owned by the applicant has or will continue to

have sufficient capacity to carry the projected volumes of water, as set forth in § 46-15.2-4(e);

     (5) The proposed water source is adequate to meet the applicant's needs and will have

sufficient capacity to serve all future demands imposed by the applicant in combination with all

other users, as set forth in § 46-15.2-4(e);

     (6) The quality of the water meets the standards established by the Rhode Island department

of health water quality regulations for the purpose intended, as provided in § 46-15.2-4(f);

     (7) The project incorporates sound conservation techniques as provided in § 46-15.1-5; and

     (8) The project is properly related to all other water systems serving adjacent or nearby

areas in terms of interconnections and mutual support.

     (e) The division of public utilities and carriers shall review the financing aspects of all

projects, particularly with respect to costs that will be imposed on water users as a result of the

project. The division shall perform an analysis of the proposed costs and benefits of the project and

shall, on the basis of its findings, make a determination as to whether approval of the project is in

the best interests of the water users. If the division determines the project is in the best interests of

the water users, it shall approve the project. If the division determines that the project is not in the

best interests of the water users, it shall disapprove the project. Since the division's review must be

based on estimated costs and interest rates, the full financing costs will not be precisely known.

The absence of specificity concerning the finance of costs must be considered by the division.

     (f) The state planning council shall review all proposed projects to determine whether they

are consistent with all relevant elements of the state guide plan. Upon determination that a project

is consistent with all relevant elements of the state guide plan, the state planning council shall render

its approval. Upon a determination that the project is not consistent with all relevant elements of

the state guide plan, the council shall disapprove the project. The state planning council will provide

the policy framework necessary to guide this program through the state guide plan.

     46-15.2-6. Decision on application and financing.

     (a) Except as provided in § 46-15.2-4(d) with respect to intersystem facilities, no project

shall be approved by the water resources board unless the project has been approved by the division

of public utilities and carriers, as set forth in § 46-15.2-5(e), by the state planning council, as set

forth in § 46-15.2-5(f), and by the department of the environmental management. The water

resources board shall approve the project based upon its finding of fact, as provided in § 46-15.2-

5(d)(1) through (d)(8), and upon approval by the division of public utilities and carriers, the state

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planning council, and the department of the environmental management. A project disapproved by

either the division of public utilities and carriers, the state planning council, the department of

health or the department of environmental management shall not be approved by the water

resources board.

     (b) The water resources board shall not approve a transmission facility project and

intersystem facility project unless the applicant first adequately demonstrates that its seventy-five

percent (75%) share or fifty percent (50%) share, as the case may be, of the project cost is available

and obligated to the project.

     (c) The water resources board shall not approve a project unless sufficient state funds to

provide the state's share of the project cost are available.

     (d) The water resources board shall ensure that the state's share of a project cannot be used

by or transferred to a private or investor-owned water company.

     (e) Upon approval of a proposed project as set forth in § 46-15.2-5, the water resources

board shall so notify the applicant and shall establish the amount of state participation in the project

representing the appropriate state share of eligible costs as determined from the application. Costs

incurred in excess of those set forth in the application shall not automatically increase the amount

of state participation. However, the applicant may submit a subsequent proposal, in accordance

with § 46-15.2-4 and 46-15.2-5, that requests state participation in those costs. If the project is

completed at a cost below that set forth in the application, the amount of state participation shall be

reduced proportionately.

     (f) The water resources board shall establish a schedule by which state funds shall be paid

to the applicant that ensures that funds are disbursed only when required for the project.

     (g) The water resources board is empowered to issue rules and regulations to provide

proper security for the state's grant-in-aid for each approved project.

     (h) The water resources board may condition the approval of any intersystem facilities

project on the applicant agreeing that it will not charge any water system which uses such a facility

an amount in excess of its costs for purchase, production, and transmission of water to the user, and

an appropriate portion of its cost of repair, maintenance, and replacement of the facility based upon

the capacity allocated to the user.

     46-15.2-7. Project execution.

     The water resources board shall determine the priority and scheduling of all projects

assisted by this program, and shall ensure that all construction is properly managed and successfully

completed.

     46-15.2-8. Liberal construction.

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     The provisions of this chapter shall be construed liberally in order to accomplish the

purposes hereof, and where any specific power is given to any agency by the provisions hereof, the

statement thereof shall not be deemed to exclude or impair any power otherwise in this chapter

conferred upon that agency.

     46-15.2-9. Severability.

     If any provisions of this chapter or of any rule, regulation, or order made thereunder, or the

application thereof to any person or circumstances, is held invalid by a court of competent

jurisdiction, the remainder of this chapter, rule, regulation, or order, and the application of the

provision to other persons or circumstances shall not be affected thereby. The invalidity of any

section or sections or parts of any section or sections of this chapter shall not affect the validity of

the remainder of this chapter, and it is hereby declared to be the legislative intent that this chapter

would have been enacted if the invalid parts had not been included therein.

     SECTION 4. Title 46 of the General Laws entitled "WATERS AND NAVIGATION" is

hereby amended by adding thereto the following chapter:

CHAPTER 32

THE RHODE ISLAND WATER AUTHORITY ACT

     46-32-1. Short title.

     This chapter shall be known and may be cited as "The Rhode Island Water Authority Act".

     46-32-2. Legislative findings.

     It is hereby found and declared that:

     (1) Water is vital to life and comprises an invaluable natural resource which is not to be

abused by any segment of the state's population or its economy. It is the policy of the state to restore,

enhance, and maintain the chemical, physical, and biological integrity of its waters to protect health;

     (2) The waters of this state are a critical renewable resource which must be protected to

ensure the availability of safe and potable drinking water for present and future needs;

     (3) Public water supply systems have the responsibility to provide safe and potable drinking

water to the state's population; and

     (4) The most effective and efficient method to maintain the integrity of the state's water

systems and resources is by establishment of the Rhode Island water authority.

     46-32-3. 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:

     (1) "Authority" means the Rhode Island water authority.

     (2) "Notes" means the notes, securities, or other obligations or evidences of indebtedness

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issued by the authority pursuant to this chapter in anticipation of receiving fees or state or federal

funds, all of which shall be issued under the name of and known as obligations of the Rhode Island

water authority.

     (3) "Person" means and includes an individual, firm, partnership, association, and private

or municipal corporation and federal or state agencies.

     (4) "Pollutant" has the same meaning as defined in § 46-12-1.

     (5) "Pollution" has the same meaning as defined in § 46-12-1.

     (6) "Revenue bonds and notes" means and includes the bonds, notes, securities, or other

obligations or evidences of indebtedness issued by the authority, all of which shall be issued under

the name of and known as obligations of the Rhode Island water authority and shall be secured by

the revenues provided therein.

     (7) "Water supplier" means any person, including a municipal water department or agency,

public water system, special water district, or private water company engaged in the distribution of

water for potable purposes.

     (8) "Water supply system" means, but is not limited to, a system which sells water

registered through a metering device or pumps over fifty million (50,000,000) gallons of water per

year.

     46-32-4. Establishment of authority -- Purpose.

     (a) There is hereby authorized, created, and established a public corporation of the state

having a distinct legal existence from the state and not constituting a department of state

government to be known as "the Rhode Island water authority", with such powers as are set forth

in this chapter, for the purposes of the administration and enforcement of the provisions of this

chapter.

     (b) It is the intent of the general assembly, by the passage of this chapter, to vest in the

authority with all powers, authority, rights, privileges, and titles which may be necessary to enable

it to accomplish the purposes herein set forth, and this chapter and the powers herein granted shall

be liberally construed in conformity with those purposes.

     (c) The authority and its corporate existence shall continue until terminated by law. Upon

termination of the existence of the authority, all its rights and properties shall pass to and be vested

in the state, and, in accordance with law, the governor may permit whatever rights and properties

he or she shall see fit to pass to municipalities located within the district, if the municipality or

municipalities accept the rights or properties.

     46-32-5. General powers.

     The authority shall have the following powers, together with all powers incidental thereto

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or necessary for the performance of those stated in this chapter:

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

     (2) 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.

     (3) 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.

     (4) To make and execute agreements of lease, construction contracts, operation contracts,

and all other contracts and instruments necessary or convenient in the exercise of the powers and

functions of the authority granted by this chapter.

     (5) To make guarantees and incur or assume liabilities as the authority may deem

appropriate.

     (6) To invest and reinvest funds.

     (7) 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 authority.

     (8) To accept grants, donations, drafts, loans of funds, and contributions in 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 monies, services, materials, or other

contributions in carrying out the purposes of this chapter.

     (9) 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; 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 authority shall determine.

     (10) To elect or appoint officers and agents of the authority, 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 authority shall deem necessary

in its judgment.

     (11) To make and alter bylaws, not inconsistent with this chapter, for the administration

and regulation of the affairs of the authority, and the bylaws may contain provisions indemnifying

any person who is or was a director or a member of the authority.

     (12) To issue orders of general or specific applicability to carry out the purposes of this

chapter.

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

     (14) To impose administrative penalties in accordance with the provisions of § 46-32-17.

     (15) 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.

     (16) To enter into agreements, contracts, and other arrangements with the state and any of

its departments, agencies, boards or commissions relating to the execution or performance of any

function or purpose of the authority, including, but not limited to, investments, employee

compensation and employee benefits, and the state and its departments, agencies, boards and

commissions are hereby authorized to enter into such agreements, contracts and other arrangements

with the authority, and upon the request of the authority shall enter into such agreements, contracts

and other arrangements with the authority.

     46-32-6. Composition of authority -- Appointment of members.

     (a) The authority shall consist of eleven (11) members appointed by the governor with the

advice and consent of the senate as herein provided:

     (1) One of whom shall be a person who is actively engaged in the agricultural business,

preferably an owner and/or operator of an agricultural business, with respect to which appointment

the governor shall give due consideration to the recommendation of the Rhode Island Agricultural

Council established pursuant to the provisions of chapter 3 of title 2;

     (2) One of whom shall be a representative of a conservation organization, with respect to

which appointment the governor shall give due consideration to the recommendation of the

Environment Council of Rhode Island;