SECTION 1. Title 45 of the General Laws entitled "Towns and Cities" is hereby amended by adding thereto the following chapter:

CHAPTER 61
STORMWATER MANAGEMENT DISTRICTS

45-61-1. Short title. -- This chapter shall be known and may be cited as the "Rhode Island Stormwater Management and Utility District Act of 2002."

45-61-2. Legislative findings. -- The general assembly hereby recognizes and declares that:

The general assembly finds that stormwater, when not properly controlled and treated, causes pollution of the waters of the state, threatens public health, and damages property. Stormwater carries pollutants and other material from the land - such as human and animal waste, oil, gasoline, grease, fertilizers, nutrients, and sediments - into rivers, streams, ponds, coves, drinking water aquifers, and Narragansett Bay. Stormwater reaches the state's waters by streets, roads, lawns, and other means. As a result, public use of the natural resources of state for drinking water, swimming, fishing, shellfishing, and other forms of recreation is limited and in some cases prohibited.

The general assembly further finds that inattention to stormwater management results in erosion of soils and destruction of both public and private property, thereby putting public safety at risk and harming property values and uses, including agriculture and industry. Therefore, to help alleviate existing and future degradation of the state's waters and the associated risks to public health and safety, and to comply with state and federal stormwater management requirements, stormwater conveyance systems must be maintained and improved. The state of Rhode Island is delegated by the United States Environmental Protection Agency to implement "Phase II" stormwater management regulations, which require municipalities and other persons to increase their capacity to control stormwater. The Department of Environmental Management's Pollution Discharge Elimination System program has promulgated these regulations.

45-61-3. Declaration of purpose. -- The purpose of this chapter is to authorize the cities and towns of the state to adopt ordinances creating stormwater management districts (SMD), the boundaries of which may include all or part of a city or town, as specified by such ordinance. Such ordinances shall be designated to eliminate and prevent the contamination of the state's waters and to operate and maintain existing stormwater conveyance systems.

45-61-4. Powers of councils. -- The city or town council of any city or town in the state, by itself or with other cities and towns, pursuant to chapter 45-43, and in accordance with the purposes of this chapter, are hereby authorized to adopt ordinances creating stormwater management districts, which will be empowered, pursuant to such ordinance, to:

(1) establish a fee system and raise funds for administration and operation of the district. The fee system shall be reasonable and equitable so that each contributor of runoff to the system shall pay to the extent to which runoff is contributed; and the state shall be exempted from the fee system. However, the state Department of Transportation shall cooperate with the municipalities in the planning and implementation of wastewater management ordinances, including the providing of funds, if available, to match the fees collected by the municipalities annually.

(2) prepare long range stormwater management master plans;

(3) implement a stormwater management district in accordance with regulations and model ordinances promulgated under this chapter;

(4) retrofit existing structures to improve water quality or alleviate downstream flooding or erosion;

(5) properly maintain existing structures within the district;

(6) borrow for capital improvement projects by issuing bonds or notes of the city or town;

(7) hire personnel to carry out the functions of the districts;

(8) receive grants, loans or funding from state and federal water quality programs;

(9) grant credits to property owners who maintain retention and detention basins or other filtration structures on their property;

(10) make grants for implementation of stormwater management district plans;

(11) purchase, acquire, sell, transfer, or lease real or personal property;

(12) impose liens;

(13) levy fines and sanctions for noncompliance;

(14) provide for an appeals process;

(15) contract for services in order to carry out the function of the district.

SECTION 2. This act shall take effect upon passage.