TITLE 46
Waters and Navigation
CHAPTER 46-30
Public Water Supply Systems
SECTION 46-30-5
§ 46-30-5 Merger Effective date
Transfer of assets and assumption of liabilities.
(a) After petition by the small water supply system to the governing agency and
subject to the approval of the governing board of the public water supply
system and the governing board of the governing agency, or, in the case of a
municipally owned system, the approval of the majority of the entire town or
city council, the public water supply system shall be merged with and into the
governing agency. Upon the merger, the governing board of the governing agency
or, in the case of a municipally owned system, the approval of the majority of
the entire town or city council, agrees to accept and the governing board of
the public water supply system agrees to transfer to the governing agency all
rights and benefits accrued to the public water supply system arising out of
federal assistance or federal funding available to public water supply systems.
(b)(1) It shall be the obligation of the governing board of
the public water supply system to disclose to the governing agency all
obligations, liabilities, and lawsuits pending against the entity. The
governing agency shall have the right to include the obligations into the
construction of the annexation fee to fairly apportion the costs to the
customer base of the public water supply system.
(2) It is not the intent of this legislation to assume the
principal business of the small public water supply system other than the
serving of potable water. The governing agency shall have the right to refuse
to accept any obligations, liabilities, and lawsuits pending against the entity
relating to other parts of the small public water system's activities.
(3) The customers annexed to the governing agency shall be
subject to the same rules, regulations, municipal, state, and federal laws to
which all other customers of the governing agency are subject.
(c) The governing board of the public drinking water system
is hereby authorized to and shall pass such resolutions, enter into such
agreements, and do all things deemed useful and necessary by it to effectuate
the merger; and the governing board of the governing agency is hereby
authorized and may pass such resolutions, enter into such agreements, and do
all things useful and necessary by it to effectuate the merger. Nothing in this
subsection shall permit the governing agency of any municipally owned system to
enter into any agreements or to adopt any resolutions which require city or
town council approval.
(d) Upon completion, the merger shall be certified to the
secretary of state by the chief executive officer of the governing agency.
(e) Upon the annexation of the public water supply system and
the governing agency, the governing agency shall assume responsibility for the
planning, construction, operation, and maintenance of the appropriate
facilities, water mains and appurtenances of the public water supply system.
(f) If the governing agency accepts any obligations,
liabilities, and/or lawsuits as referenced under subsection (b), the governing
agency shall also be responsible and liable for all liabilities, obligations,
and/or lawsuits of the public water supply system pertaining to water supply;
and any claim existing or action or proceeding pending by or against the public
water supply system may be prosecuted as if the annexation had not taken place,
or the governing agency may be substituted in its place. Neither the rights of
creditors nor any liens upon the property of the public water supply system
shall be impaired by the merger. The annexation as provided for herein shall
not impair the obligation of any contract or agreement or alter existing
bargaining units nor abate any suit, action, or other proceeding lawfully
commenced by or against the public water supply system, or any member of its
governing board in relation to the discharge of his or her official duties, but
a court of competent jurisdiction may, on motion filed within twelve (12)
months after the effective date of the annexation, allow such a suit, action,
or proceeding to be maintained by or against the annexed public water supply
system or any member of its governing board in relation to the discharge of his
or her official duties. Upon completion of the merger, all user charges, fees
or rates assessed by the governing agency as a result of the merger shall be
subject to the approval of the public utilities commission.
History of Section.
(P.L. 1995, ch. 267, § 1.)