Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 2 of chapter 135 of the acts of 1984 is hereby amended by striking out the last sentence and inserting in place thereof the following sentence:- The district shall have the power to prosecute and defend all actions relating to its affairs and its assets and property shall be liable to execution and levy to the same extent as are the assets and property of the commonwealth.

SECTION 2. Section 9 of said chapter 135 is hereby amended by striking out the fourth sentence and inserting in place thereof the following three sentences:- At the meeting at which said water commissioners are first elected and at each annual district meeting held thereafter, the district shall elect by ballot, for a term of one year, a clerk of the district. Also at each annual district meeting, the board of water commissioners shall appoint, for a term of one year, a treasurer of the district. The board of water commissioners may, in their discretion, decide to pay said treasurer such compensation as the board deems reasonable.

SECTION 3. Section 10 of said chapter 135 is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

Said board of water commissioners shall fix just and equitable prices and rates for the use of water, and shall prescribe the time and manner of payment. The income of the waterworks shall be appropriated to defray all operating expenses, interest charges and payments on the principal as they shall accrue upon any bonds or notes issued under authority of this act. Such income shall be exempt from levy and execution.

SECTION 4. Section 15 of said chapter 135 is hereby amended by striking out, in lines 7 and 8, the words "by eminent domain under chapter seventy-nine or chapter eighty-A of the General Laws" and inserting in place thereof the words:- in accordance with section eight of chapter two hundred and eleven of the acts of eighteen hundred and eighty-six.

SECTION 5. Said chapter 135 is hereby further amended by inserting after section 15 the following two sections:-

Section 15A. The district shall be entitled, within thirty days of the entry of final judgment or issuance of rescript after appeal, to rescind any order of taking and to return to the Massachusetts - American Water Company any properties acquired under section fifteen. In the event of such rescission, Massachusetts - American Water Company shall be entitled to fair compensation for loss of use of its property after the order of taking as determined by the department of public utilities. In making such determination, the department of public utilities shall calculate the return on such property as operated as a public utility under chapter one hundred and sixty-five of the General Laws and shall deduct from such amount the value of any improvements or additions made to the property after the order of taking and any payment made pursuant to section seven B of chapter seventy-nine of the General Laws. In the event such deductions exceed the fair compensation owing for the loss of use of the property, the department of public utilities shall apply such excess to a reduction in the rate base used in setting appropriate water rates under said chapter one hundred and sixty-five. Upon such rescission, Massachusetts - American Water Company shall resume operation of the franchise under the jurisdiction of the department of public utilities pursuant to said chapter one hundred and sixty-five and shall be subject to such statutes, and the rules and regulations of the department of public utilities as if such taking had not occurred.

Section 15B. In the event Massachusetts - American Water Company receives an award under chapter seventy-nine of the General Laws for the taking of its property pursuant to section fifteen which is in excess of its rate base as calculated by the department of public utilities under chapter one hundred and sixty-five of the General Laws, the department of public utilities shall apply such excess, on a pro rata basis, to a reduction of the rate base of the Massachusetts - American Water Company in other cities and towns in the commonwealth in which it has franchises.