Session Laws

Whereas, The deferred operation of this act would tend to defeat its purpose, which is to immediately authorize the establishment of model water and sewer commissions, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.

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. Chapter 40 of the General Laws is hereby amended by striking out section 39H, as appearing in the 1990 Official Edition, and inserting in place thereof the following section:-

Section 39H. A city, town, commission or district through its water department, if any, if thereunto authorized by ordinance, or by-law or by vote of its governing body if a commission or district or a water company, as defined in section one of chapter one hundred and sixty-five, may make contracts with, or may go to aid any other city, town, commission, district or any other water company, as so defined, with regard to the operation, repair and maintenance of the physical properties of its water supply system. Any such ordinance, by-law or vote may authorize the head of the department in charge of sewers and drains to enter into contracts or to extend such aid subject to such conditions and restrictions as may be prescribed therein. Members of such departments of cities, towns, commissions or districts while in the performance of their duties under such contracts or in extending such aid shall have the same immunities and privileges as if performing the same work in their respective cities, towns, commissions, and districts. Any city, town, commission, district or water company aided under this section shall compensate any city, town, commission, district or water company rendering aid as aforesaid, for such aid and for the whole or any part of any damage to its property sustained in the course of rendering such aid. Any contracts under this section may be for a period not exceeding twenty years.

SECTION 2. The General Laws are hereby further amended by inserting after chapter 40M the following chapter:- `tuc CHAPTER 40N. MODEL WATER AND SEWER COMMISSION.

Section 1. It is hereby declared essential for the benefit of the people of each municipality which accepts this act, in order that there be an increase in their commerce, welfare and prosperity and an improvement in their living conditions, that the municipality establish or continue to maintain an economical and efficient water system and sewer works system; that accurate, appropriate, and self-sustaining fees, rates and charges for water and sewer service within the municipality be established and all consumers, public and private, taxpayer and tax exempt, pay their fair share of the costs of such services; that the water and sewer systems of the municipality to be operated in a modern, efficient and financially self-sustaining manner to further their sound financial, environmental and physical condition; that conservation of water sources be encouraged; that water supplies be protected and improved; and that the municipality be provided a means to improve its water and sewer systems and insure the continued availability of water and sewer services at sufficient rates; all to the public benefit and good, and to the extent and in the manner provided herein.

Section 2. This chapter shall be known and may be cited as the Model Water and Sewer Reorganization Act.

Section 3. As used in this chapter the following words shall, unless the context otherwise requires, have the following meanings:-

"Bonds" or "Bond", bonds, notes and other obligations or evidences of indebtedness of the commission issued under the provisions of this chapter.

"Commission", the water and sewer commission of the municipality established by section three or, if said commission shall terminate as provided in section twenty, the board, body or commission succeeding to the principal functions thereof, or whatever body, person or persons to whom the powers given by this chapter to the commission shall be transferred by law.

"Costs", applied to any extension, improvement or enlargement of the water works system or the sewer works system or to any other project of the commission financed under the provisions of this chapter; all or any part of the cost of acquisition, construction, reconstruction, alteration, and remodeling of such work, including, without limiting the generality of the foregoing, costs of labor, materials, machinery and equipment, lands, structures, and all rights of any kind in real and personal property, costs of demolitions or relocations, costs of removal or relocation of any public utilities facilities, financing charges and expenses, interest prior to, during and for a period after completion of such work, reserves for debt service and other capital and current expenses, costs of architectural, engineering, financial, legal and consulting services, costs of plans, specifications, appraisals, surveys, inspections, financial and feasibility studies, expenses of organization, administration and operations prior to the commencement of and during such work, costs of equipment and supplies and advance training of operating personnel and other expenses of completing and commencing operation of such work, working capital, and other necessary or incidental expenses to the acquisition, construction, financing and placing in operation of such work.

"Current expenses", the commission's current expenses, whether or not annually recurring, of maintaining, repairing and operating the water works system and the sewer works system and any other properties of the commission, including, without limiting the generality of the foregoing, administrative, general system payments and other employee benefits, engineering expenses for maintenance, operation and repairs, legal, financial and auditing expenses, insurance and surety bond premiums, fees and expenses of trustees and paying agents, payments to others for services rendered to the commission, taxes which may be lawfully imposed upon the commission or its income or operations or the property under its control, and other current expenses required or permitted by law to be paid by the commission, including the funding of reasonable reserves for maintenance, repair, replacements or operations.

"Local appointing authority", in the case of all cities, except those with a Plan D or Plan E charter, the mayor with the approval of the city council; in the case of cities with a Plan D or Plan E charter, the city manager; in the case of towns, the town meeting.

"Municipality", a city or town which accepts the terms of this chapter.

"Revenues", all revenues, rates, fees, charges, rents and other receipts derived from the operation of the water works system and the sewer works system and all other properties of the commission, including, without limiting the generality of the foregoing, bond proceeds, proceeds of any grant or loan to the commission, investment earnings and the proceeds of insurance, condemnation, sale or other disposition of properties.

"Sewer works system", the existing sewer works system in the possession of and under the jurisdiction, ownership, control and regulation of the municipality, including all plants, works, instrumentalities or parts thereof, lands, easements, rights in land and water rights, rights of way, contract rights, franchises and privileges, all publicly constructed main, trunk, intercepting, connecting, lateral, outlet and other sewers, outfalls, pumping and ventilating stations, disposal and treatment plants, or works, structures, equipment, vehicles, appliances, and other adjuncts thereto, and any other property or interests in property, real or personal, incidental to and included in such sewer works system, and all facilities, betterment, extensions, improvements and enlargements thereto hereafter constructed or acquired.

"Water works system", the existing water supply and distribution system in the possession of and under the jurisdiction, ownership, control and regulation of the municipality including, without limiting the generality of the foregoing, all plants, works, instrumentalities or parts thereof, lands, easements, rights in land, water and flowage rights, approaches, water courses, rights of way, contract rights, franchises and privileges, all connections, dams, wells, reservoirs, water mains and pipe lines, equipment, buildings, structures, vehicles, sandpipes, tanks, conduits, meters, hydrants, fire connections, fixtures, purification, filtration and treatment works and other adjuncts thereto, and any other property or interests in property, real or personal, incidental to and included in such water supply and distribution system, and all facilities, betterment, extensions, improvements and enlargements thereto and to or for the water supply therefor hereafter constructed or acquired.

Section 4. In any city or town which accepts the provisions of this chapter, there is hereby created a body politic and corporate and political subdivision of the commonwealth to be known as the water and sewer commission of the municipality. The commission is hereby constituted an independent public instrumentality and the exercise by the commission of the powers conferred by this chapter shall be deemed and held to be the performance of an essential public function. The commission shall not be subject to the supervision of the municipality or of any department, commission, board, bureau or agency of the municipality except to the extent and in the manner provided in this chapter.

Except as otherwise provided in this chapter, the powers of the commission shall be exercised by a board of three members, each of whom shall be a resident of the municipality. These members shall be appointed by the local appointing authority in accordance with the municipal charter. The members shall include one member with extensive experience in the field of administration or business, and one member with extensive experience in the field of finance or accounting. Of the members first appointed, one shall serve in office for a term expiring on June thirtieth in the year following the acceptance of this chapter, and one for a term expiring on June thirtieth, in the second year following the acceptance of this chapter and one for a term expiring on June thirtieth, in the third year following the acceptance of this chapter. Thereafter, the local appointing authority shall appoint successors for a term of three years or, in the case of an appointment to fill a vacancy, for the unexpired term, and until his successor is appointed and qualified. Any member of the commission shall be eligible for reappointment. Any member of the commission may be removed at any time for cause in accordance with the removal procedures then in effect in the municipality. No vacancy in the membership of the commission shall impair the right of a quorum to exercise the powers of the commission. Two members of the commission shall constitute a quorum and the affirmative vote of two members shall be necessary for any action taken by vote of the commission. Any such action shall take effect immediately unless otherwise provided and need not be published or posted.

The commission shall annually elect one of its members as chair. The commission may establish, with the approval of the local appointing authority a reasonable per diem compensation for its members for attendance upon the business of the commission. Such amount may be payable to each member for one day in each month and for any additional days as may be approved by the local appointing authority. In addition, each member may be reimbursed for all reasonable and necessary expenses incurred in the discharge of official duties as approved by the commission. In accordance with chapter two hundred and sixty-eight A, the commission shall be deemed to be a municipal agency and the members of the commission shall be deemed to be special municipal employees.

The provisions of sections twenty-three A to twenty-three C, inclusive, of chapter thirty-nine shall apply to all meetings of the commission and section ten of chapter sixty-six relating to the availability of public records as defined in clause twenty-sixth of section seven of chapter four shall apply to the commission.

The commission shall be deemed to be a public employer within the meaning of chapter two hundred and fifty-eight. The members, officers and employees of the commission shall be deemed to be public employees within the meaning of chapter two hundred and fifty-eight. The commission shall be liable in tort for defects in a public way to the same extent as the municipality under chapter eighty-four.

The commission and its employees shall be subject to the provisions of chapter one hundred and fifty E, to the extent said provisions are applicable, and for purposes of said chapter, the commission shall be considered an "employer" or "public employer" as defined therein. The commission may designate a representative to act in its interest in dealing with employees of the commission and the term "legislative body" as used in chapter one hundred and fifty E shall mean the commission.

The commission shall be deemed a district for purposes of chapter thirty-two B. The commission and the municipality may enter into such arrangements as they deem suitable for provision of insurance benefits jointly for employees of the commission and employees of the municipality under said chapter thirty-two B.

The commission may be self-insured for the purpose of workers or workmen's compensation under chapter one hundred and fifty-two.

Section 5. The commission may appoint, employ and determine the compensation, duties and conditions of employment of an executive director and such other officers as the commission shall deem necessary, who shall not be members of the commission and who shall serve at the pleasure of the commission; provided, however, that the commission may bind itself by contract to employ an executive director, and such other officers, but no such contract may be for a period of more than five years. The executive director shall be the chief executive officer of the commission and shall administer and direct its affairs as authorized or approved by the commission and shall have such of the powers and perform such of the duties of the commission as the commission may from time to time have delegated to him and not recalled. The executive director or his designee as approved by the commission shall be the secretary of the commission and shall keep a record of the proceedings of the commission and shall be custodian of all books, documents and papers filed with the commission, the minute book or journal of the commission and its official seal. The executive director and any other officer designated by the commission for this purpose, each alone, may cause copies to be made of all minutes and other records and documents of the commission and may give certificates under its official seal to the effect that such copies are true copies, and all persons dealing with the commission may rely upon such certificates. Before the issuance of any bonds under the provisions of this chapter the executive director and any other member or officer of the commission charged with responsibility for the issuance thereof, shall each execute a surety bond in the sum of one hundred thousand dollars payable to the commission, or in lieu thereof the commission shall obtain a blanket position bond covering the executive director and any other member or officer of the commission charged with responsibility for the issuance of any bonds to be conditioned upon the faithful performance of the duties of their offices, to be executed by a surety company authorized to transact business in the commonwealth as surety and approved by the commission.

The commission may from time to time hire, transfer or otherwise appoint or employ legal counsel, financial advisors and such other experts, engineers, agents, accountants, clerks, and other consultants and employees as it deems necessary and determine their duties.

The commission may purchase insurance on behalf of itself and any of its members, officers, employees or agents against any liability arising out of his status as such, whether or not the commission would have the power to indemnify him against such liability.

The commission shall operate on a fiscal year commencing July first unless otherwise provided by the commission.

All officers or employees hired, transferred or otherwise appointed by the commission, other than a person transferring to or hired by the commission from employment with the municipality who is not subject to a residency requirement under the laws of the municipality prior to transfer, shall be subject to any residency requirements which apply to persons employed by the municipality.

Section 6. On the date of the issuance of the notes of the commission authorized pursuant to section nine, title to the water works system and the sewer works system shall be vested in the commission and the possession of the water works system and the sewer works system shall be transferred and dedicated to the commission without any physical delivery thereof, and the commission shall thereafter own, control, operate and maintain the water works system and the sewer works system. Copies of all maps, plans, papers and records and all equipment pertaining to the design, construction, operation and affairs of the water works system and the sewer works system shall be transferred to the commission and placed in its custody and control. Notwithstanding the foregoing, no building or motor vehicle used partially in the operation of the water works system or the sewer works system and partially in other operations of the municipality shall be transferred to the commission or otherwise included in the definition of the water works system or sewer works system hereunder unless expressly designated by the legislative body with the approval of the executive director for transfer to the commission by operation of this chapter. All other rules, regulations and ordinances duly promulgated by the municipality pertaining to the water works system or the sewer works system shall remain in full force and effect to the extent consistent with this chapter until superseded, revised or rescinded by the commission. All contracts, including collective bargaining agreements, leases and agreements, including interdepartmental agreements, of the municipality pertaining to the water works system and the sewer works system shall continue in full force and effect until their expiration dates, and all benefits and obligations thereunder, and all other rights and benefits pertaining to the water works system and the sewer works system and existing by-laws or ordinances in favor of the municipality, including, without limiting the generality of the foregoing, all rights, benefits and obligations not inconsistent with the provisions of this chapter which pertain to the water works system or the sewer works system and which are vested in the municipality by general or special law, shall be transferred to, assumed by and imposed upon the commission by operation of law. All debts, liabilities and obligations of the municipality pertaining to or on account of the water works system and the sewer works system, including the obligation of the municipality to pay the interest and principal on all bonds, notes and other evidences of indebtedness issued by the municipality for purposes of the water works system and the sewer works system outstanding on the acceptance of this chapter, shall be assumed by and imposed upon the commission; provided, however, that all liabilities of the municipality in tort, whether actual or contingent, pertaining to the water works system or the sewer works system and arising out of actions or events which occurred or occur prior to the transfer of the systems to the commission shall not be assumed by or imposed upon the commission but shall continue to be the liabilities of the municipality. Except as above provided, all actions and proceedings pending before, all actions and proceedings pending against, and all actions and proceedings begun by the municipality and pertaining to the water works system or the sewer works system shall continue unabated and remain in full force and effect notwithstanding the provisions of this chapter and the transfer of the water works system and the sewer works system contemplated hereby and may, at the discretion of the court, commission, board or other body having jurisdiction, be completed before, against or by the commission.

On the date of the issuance of the notes of the commission authorized pursuant to section nine, all unexpended balances of monies in accounts of, for or on behalf of the municipality, including accounts receivable, and tax title accounts pertaining to the water works system or the sewer works system, including unexpended proceeds of, and monies and investments, if any, held for the payment of interest and principal of, then outstanding bonds, notes and other evidences of indebtedness of the municipality as provided in this section, shall be deemed to be held in trust for and shall be transferred to the commission. Subsequent to such date, all moneys collected or received by the municipality from any source on account of the water works system and sewer works system, including all rates, fees, charges, rents and other income derived from the operation thereof regardless of the date of assessment or billing of such rates, fees, charges and rents shall be deemed to be held in trust for and shall be forthwith transferred and paid over to the commission.

From the date the commission takes possession of the water works system and the sewer works system until one year thereafter, or at such earlier date not prior to six months thereafter as the commission may determine, the municipality shall at the direction of the commission continue to engage in the maintenance, repair and operation of the water works system and the sewer works system, and employees of the municipality whose work is related to such systems shall continue to perform their duties related to such systems; provided, however, that the municipality shall have no power to appoint or employ any person to, or transfer any employee to or from, any position classified under chapter thirty-one or any other provision of law as directly related to the work of the water works system or the sewer works system, or enter into any contracts relating to the water works system or the sewer works system, or sell or transfer any property of such systems or obligate the commission to any person or governmental entity, without the express written consent of the commission or, upon proper delegation thereof, by the executive director of the commission. The municipality shall bill the commission to reimburse the municipality for the current expenses of the municipality incurred in the operation and management of the water works system and the sewer works system during the period herein provided. All expenses for operation and management of the water works system and the sewer works system which are not billable to the commission under this section shall be borne by the municipality.

Section 7. (a) Twelve months after the acceptance of this chapter, or such earlier date not prior to six months after said acceptance, as the commission shall determine, the employees of the municipality whose work is primarily related to the water works system or the sewer works system shall be transferred to the commission and become employees of the commission subject to the provisions of this chapter. Terms of office of such employees shall not be deemed to be interrupted by such transfer and rights, seniority, wages, salaries, hours, and working conditions of such employees, including, but only so long as such an employee holds the position which is comparable to the position in which he was classified prior to transfer rights under chapter thirty-one, shall be preserved in their employment by the commission, provided that after such transfer such employees perform their duties subject to the direction, control and supervision of the commission. The terms and conditions of employment of any other persons whom the commission may employ shall be determined by the commission, provided that the commission shall take into account and provide for continuation of seniority, vacation and sick leave rights and other benefits based on prior employment with the municipality for former employees of the municipality who enter the employment of the commission other than by transfer under the previous sentence, but all persons employed by the commission under this sentence shall not thereafter be subject to any provision of chapter thirty-one. Notwithstanding any provisions of any general or special law, to the contrary, the commission in filling vacant positions may give preference over applicants who are not employees of the commission to any person who is either an employee of the municipality or a former employee of the municipality laid off for lack of funds who applies for the vacant position unless the commission determines in its sole discretion that such applicant is not qualified for the position.

(b) Every employee who immediately prior to being transferred to the commission by this section is a member of the municipal contributory retirement system established under chapter thirty-two, or predecessor retirement systems thereto, shall continue to be a member thereof and subject to the laws applicable thereto. All other employees of the commission shall be required to become members of the municipal contributory retirement system in the same manner and subject to the same laws, rules and regulations as persons entering the employ of the municipality. The commission shall deduct from the wages of its employees and pay over to the municipal retirement board such sums as the municipality would deduct and pay over if such person were an employee of the municipality.

The commission shall reimburse the municipality for its proportionate share of any amounts expended by the municipality under the provisions of chapter thirty-two for retirement allowances to or on account of employees of the commission.

Section 8. The commission shall have all the rights and powers necessary or convenient to carry out and effectuate this chapter, including, but without limiting the generality of the foregoing, the rights and powers:

(a) to adopt by-laws for the regulation of its affairs and the conduct of its business, to promulgate rules, regulations and procedures in connection with the performance of its functions and duties and to fix, enforce and collect penalties for the violation thereof;

(b) to adopt an official seal and alter the same at pleasure;

(c) to maintain an office at such place or places as it may determine;

(d) to apply for, receive, accept, administer, expend and comply with the conditions, obligations and requirements respecting any grant, gift, loan, including without limitation any grant, gift or loan from agencies of local, state and federal governments, donation or appropriation of any property or money in aid of the purposes of the commission and to accept contributions of money, property, labor or other things of value;

(e) to acquire by purchase, lease, lease-purchase, sale and leaseback, gift or devise, or to obtain options for the acquisition of, any water or water rights and any other property, real or personal, tangible or intangible, or any interest therein, in the exercise of its powers and the performance of its duties;

(f) to sell, lease, mortgage, exchange, transfer or otherwise dispose of, or to grant options for any such purposes with respect to, any water, water rights, and any other property, real or personal, tangible or intangible, or any interest therein. Notwithstanding the foregoing, any real property transferred from the municipality to the commission pursuant to section five which is subsequently declared by the commission to be surplus property and no longer required for its operations shall not be sold or otherwise disposed of by the commission but shall be reconveyed to the municipality without consideration. If any such real property has been improved by the commission subsequent to the effective date of this chapter, the city upon reconveyance shall pay to the commission the fair market value of such improvements as determined by the commission and the municipality or by an appraiser satisfactory to both;

(g) to enter onto any land to make surveys, borings, soundings and examinations thereon, provided that said commission, notwithstanding section three, shall make reimbursements for any injury or actual damage resulting to such lands and premises caused by any act of its authorized agents or employees and shall so far as possible restore the land to the same condition as prior to making of such surveys, borings, soundings and examinations; and to acquire by eminent domain any interest in real property within the municipality in the name of the commission in accordance with the provisions of chapter seventy-nine and chapter eighty A or any alternative method provided by law; provided, however, that the commission shall not exercise the power of eminent domain without the prior approval of the legislative and executive bodies of the municipality. The commission may order the removal or relocation of any conduits, pipes, wires, poles or other property located in public ways or places, or in or upon private lands, which it deems to interfere with the laying out, construction or operation of any water or sewer project, and the proper authorities shall grant new locations for any such structure so removed or relocated, and the owner thereof may be reimbursed by the commission for the reasonable cost of such removal or relocation. Such orders, to the extent specified therein, shall be deemed a revocation of the right or license to maintain such tracks, pipes, conduits, wires, poles or other property in such public ways or places, and the private owner of any such structures in public ways or lands shall comply with any such order of the commission relating to any such structure in public ways or lands. If any such owner shall fail to comply with any such order of the commission relating to any such structure in public ways and places within a reasonable time, to be fixed in the order, the commission may discontinue and remove such tracks, conduits, pipes, wires, poles or other property, and may relocate the same, and the cost of such discontinuance, removal or relocation shall be repaid to the commission by the owner. No such discontinuance, removal or relocation shall entitle the owner of the property thus affected to any damages on account thereof, except for the reimbursement of cost provided for above. This section shall not apply to facilities on property of the commonwealth under the control of the department of highways or the metropolitan district commission or installed under licenses or permits granted by said department or commission, except with its approval.

(h) to purchase water in bulk or by volume and to contract for and purchase sewage disposal and treatment services from, and to sell water and provide sewage disposal and treatment services to, any person, private or public corporation or public instrumentality or municipality, including the municipality, the commonwealth and the federal government when necessary or convenient for the operation of the water works system or sewer works system;

(i) to construct, improve, extend, enlarge, maintain and repair the water works system and the sewer works system, and with respect to such work the commission shall be deemed to be a public agency for purposes of sections forty-four A to forty-four H, inclusive, of chapter one hundred and forty-nine and a commission of the municipality for purposes of sections thirty B to thirty P, inclusive, of said chapter seven and section twenty-eight of chapter forty-three, provided that no work, project or activity of the commission the total cost of which is less than two million dollars shall be subject to the provisions of said sections sixty-one to sixty-two H, inclusive, of said chapter thirty;

(j) to pledge or assign any money, fees, charges, or other revenues of the commission and any proceeds derived by the commission from the sale of property, insurance or condemnation awards;

(k) to borrow money and incur indebtedness and issue its bonds as hereinafter provided;

(l) to make contracts of every name and nature and to execute and deliver all instruments necessary or convenient for carrying out any of its purposes;

(m) to exercise the powers and privileges of, and to be subject to limitations upon towns and cities provided by the provisions of sections thirty-eight to forty-two, inclusive, of chapter forty and sections one to twenty-four, inclusive, and twenty-seven to twenty-nine, inclusive, of chapter eighty-three, insofar as such provisions may be applicable and are consistent with the provisions of this chapter; provided that any requirement in said sections or chapters for a vote by the governing body of the municipality or for a ratification of such vote by the voters of the municipality, shall be satisfied by a vote or resolution duly adopted by the commission in accordance herewith, and provided that the powers of the commission to make rules and regulations and establish penalties regarding the use of sewers shall not be limited by section ten of said chapter eighty-three;

(n) to enter into contracts and agreements with the municipality in all matters necessary, convenient or desirable for carrying out the purposes of this chapter including, without limiting the generality of the foregoing, collection of revenue, data processing, and other matters of management, administration and operation;

(o) to sue and be sued and to prosecute and defend actions relating to its properties and affairs; provided that only property of the commission other than revenues pledged to the payment of bonds shall be subject to attachment or levied upon execution or otherwise;

(p) to do all things necessary, convenient or desirable for carrying out the purposes of this chapter or the powers expressly granted or necessarily implied in this chapter;

(q) consistent with the constitution and laws of the commonwealth, the commission shall have such other powers, including all powers pertaining to the water works system and the sewer works system held by the municipality not inconsistent herewith, as may be necessary for or incident to carrying out the foregoing powers and the accomplishment of the purposes of this chapter; provided, however, that nothing in this chapter shall impose any duty on the commission to maintain groundwater levels within or without the boundaries of the municipality.

Section 9. In addition to the powers of the commission otherwise provided herein, the commission shall have the following powers and shall be subject to the following limitations:

(a) The commission is authorized and empowered to fix, revise, charge, collect and abate fees, rates, rents, assessments, delinquency charges and other charges for water, sewer and other services, facilities and commodities furnished or supplied by it including penalties for violations of such regulations as the commission may from time to time promulgate under this chapter. Subject to paragraph (c), fees, rates, rents, assessments, delinquency charges and other charges of general application shall be adopted and revised by the commission at least annually in accordance with procedures to be established by the commission for assuring that interested persons are afforded notice and an opportunity to present data, views and arguments. The commission shall hold at least one public hearing on its schedule of fees, rates and charges or any revision thereof prior to adoption, notice of which shall be delivered to the legislative and executive bodies of the municipality and be published in a newspaper of substantial circulation in the municipality at least one month in advance of the hearing. No later than the date of such publication the commission shall make available to the public and deliver to the mayor and council its most recent financial statement, the proposed schedule of fees, rates and charges and its proposed operating and capital budgets for its next fiscal year. The commission may combine its fees, rates and other charges for water supplied by it and sewer service provided by it in a single schedule of charges. Fees, rates, rents, assessments, abatements and other charges established by the commission shall not be subject to supervision or regulation by any department, division, commission, board, bureau, or agency of the commonwealth or any of its political subdivisions, including, without limitation, the municipality.

(b) Subject to paragraph (e), the fees, rates, rents, assessments and other charges established by the commission in accordance with paragraph (a) shall be so fixed and adjusted in respect to the aggregate thereof so as to provide revenues at least sufficient (i) to pay the current expenses of the commission, (ii) to pay the principal of, premium, if any, and interest on bonds or other evidences of indebtedness issued by the commission under this chapter as the same become due and payable, (iii) to create and maintain such reasonable reserves as may be reasonably required by any trust agreement or resolution securing bonds, (iv) to provide funds for paying the cost of all necessary repairs, replacements and renewals of the water works system and the sewer works system and (v) to pay or provide for any amounts which the commission may be obligated to pay or provide for by law or contract including any resolution or contract with or for the benefit of the holders of its bonds.

(c) Notwithstanding the requirements of paragraph (b), the fees, rents, rates and other charges for services, facilities and commodities supplied by the water works system and sewer works system in effect on the date of acceptance of this chapter shall be maintained by the commission without modification one year following the acceptance of this chapter, or such earlier date not earlier than six months after said acceptance as the commission shall determine. Upon the transfer of the water works system and sewer works system to the commission pursuant to section five, the commission shall undertake a study and examination of its fees, rents, rates and other charges and its estimated current expenses and costs of maintaining, operating and improving the systems, and shall prior to one year after the date of acceptance of this chapter promulgate in accordance with paragraph (a) a schedule of fees, rents, rates and other charges sufficient thereafter to satisfy the requirements of paragraph (b). Such new schedule of fees, rates and charges shall become effective one year after the date of acceptance of this chapter or such earlier date not earlier than six months after the date of acceptance of this chapter as the commission shall determine. Such schedule shall provide for the metering of, and charging for, water and sewer services provided to all consumers in the municipality, including the municipality, the commonwealth and all independent agencies and authorities of the municipality and the commonwealth, and any exemptions from such charges provided to the commonwealth or the municipality under any law, general or special, are hereby declared inapplicable as of the date such schedule shall be in force.

(d) In order to provide for the collection and enforcement of its fees, rates, rents, assessments and other charges, the commission is hereby granted all the powers and privileges with respect to such collection and enforcement held by the municipality on the effective date of this chapter or as otherwise provided in this chapter. Without limiting the generality of the foregoing, the commission shall have the benefit, without further acceptance of sections forty-two A to forty-two F, inclusive, of chapter forty or filing of any certificate relating thereto, of liens for unpaid fees, rates, rents, assessments and other charges as provided in sections forty-two A and forty-two B of said chapter forty and sections sixteen A and sixteen B of chapter eighty-three, to the extent applicable and consistent with this chapter. With respect to any fees, rates, rents, assessments or other charges which remain unpaid for more than six months after the same shall have come due, the commission may, in addition to other remedies and actions available to it, issue a demand in accordance with section sixteen of chapter sixty and may collect such fees, rates, rents, assessments and other charges by means of remedies and procedures, to the extent applicable and consistent with this chapter, provided in sections twenty-four to one hundred and five, inclusive, of said chapter sixty. If such demand is made within the time specified in section forty-two B of chapter forty and section sixteen B of chapter eighty-three during which liens arising thereunder remain in effect, said liens shall be deemed to be the year in which such demand is made. From and after the date of such demand interest shall accrue on unpaid fees, rates, rents, assessments and other charges at the rate specified in section fifty-seven of chapter fifty-nine. Applications for abatements in accordance with section forty-two E of said chapter forty and section sixteen E of chapter eighty-three shall be made within thirty days after the date of such demand. Upon written application the commission shall issue lien certificates in accordance with section twenty-three of said chapter sixty. No recordation of certificates issued by the municipality pursuant to said section twenty-three of said chapter sixty shall affect liens for the unpaid fees, rates, rents, assessments, and other charges of the commission. The commission shall be entitled to receive fees for collection in accordance with section fifteen of said chapter sixty. For purposes of the sections referred to in this paragraph, the terms city, town, water district, assessors, collector, clerk, treasurer, or commissioner as used therein shall mean the commission and the term tax or taxed shall mean the unpaid fees, rents, assessments, and other charges of the commission. The commission shall also have the powers and may exercise the remedies, to the extent consistent with this chapter, provided in sections twenty-nine, thirty-five and fifty and sections fifty-three or sixty-four, inclusive, or chapter sixty-two C and in chapter eighty and chapter eighty A. For purposes of said sections of said chapter sixty-two C, the terms commonwealth and commissioner used therein shall mean the commission.

In addition to the other enforcement powers and remedies provided in this chapter, if any fees, rates, rents, assessments or other charges billed by the commission against any premises which are connected with the water works system or sewer works system remain unpaid for a period of more than sixty days from the due date thereof, and following such period notice and demand have been posted on such premises and have been given to the owner and occupant of said premises, by registered or certified mail addressed to said premises and to the address of said owner as shown on the records of the assessor of the city or town, to pay the same within fifteen days from the date of mailing of said notice, and such fees, rates, rents, assessments or other charges remain unpaid, the commission shall have the power and is hereby authorized to shut off the supply of water to said premises until said fees, rates, rents, assessments or other charges are paid, together with interest thereon at the applicable rate and the standard charge of the commission for restoring water service to said premises.

(e) If at the end of any fiscal year, the commission shall have realized a surplus from operations for such fiscal year, after payment or provision for all current expenses, current maintenance, repairs and replacements, current debt service on all outstanding bonds of the commission, all reserves for debt service, repairs and replacements, costs or current expenses as may be required by a trust agreement or resolution securing bonds or as may otherwise be maintained by the commission, and any and all other amounts which the commission may be obligated by law or contract to pay or provide for, the commission shall either apply such surplus in the next following fiscal year to a reduction in the rates, fees, rents, assessments or other charges established by the commission for services provided by the water works system and the sewer works system or shall apply such surplus to the reduction or provision for reduction of its outstanding capital debt.

(f) On or before one year after the acceptance of this chapter and annually thereafter, the commission shall prepare a proposed capital improvement program for the next three succeeding fiscal years of the commission and shall adopt a capital improvement budget for the next succeeding fiscal year. Such program and budget shall include a description of the projects proposed to be undertaken during such periods, the costs proposed to be incurred on such projects, the method of financing such costs and an estimate of the effect, if any, that such costs will have on the current or projected fees, rates, rents and other charges of the commission. The program and budget shall be annually adopted by the commission in accordance with procedures established by the commission for assuring that interested persons are afforded notice and an opportunity to present views and arguments. The commission shall hold at least one public hearing on the proposed capital improvement program and budget prior to adoption, which hearing may be combined with a hearing provided in paragraph (a) of this section, notice of which shall be delivered to the mayor and city council, board of selectmen or district board and be published in a newspaper of substantial circulation in the city, town or district at least one month in advance of the hearing. No later than the date of such publication the commission shall make available to the public and deliver to the mayor and city council copies of the proposed program and budget.

Section 10. (a) The commission is hereby authorized and empowered to provide by resolution for the issuance, at one time or from time to time within three years following the acceptance of this chapter, of notes of the commission for the purpose of providing funds for (i) paying the cost of constructing or acquiring such improvements, extensions, enlargements, alterations, reconstruction or remodeling of the water works system and the sewer works system as may be authorized by such resolution, including the funding of interest payable on or before three years following the acceptance of this chapter on any notes of the commission issued pursuant to section ten in anticipation of federal, state or local grants for such work and (ii) providing funds for paying the current expenses of the commission to the extent not paid out of its revenues or provided for in clause (i) from the acceptance of this chapter until one year afterwards.

Except as otherwise provided herein, notes issued by the commission in accordance with this section shall be issued in anticipation of bonds to be issued by the commission pursuant to section ten and shall be authorized, issued and sold in the same manner as, and shall otherwise be subject to section eleven and the other provisions of this chapter relating to, such bonds. Such notes shall mature at such time or times as provided by resolution of the commission and may be renewed from time to time, provided that all such notes and renewals thereof shall mature on or prior to three years following the acceptance of this chapter.

(b) The proceeds of the notes authorized by this section shall be applied as follows:

(1) Such amount of such proceeds as may be provided in the resolution of the commission for paying the current expenses of the commission to the extent not paid out of its revenues or provided for in clause (2) from the acceptance of this chapter until three years thereafter shall be deposited with a corporate trustee in accordance with section eleven and disbursed in such manner and under such restrictions as may be provided in the resolution of the commission;

(2) The balance of such proceeds shall be deposited with the trustee to be used solely for paying or providing for the cost of extensions, improvements or enlargements of the water works system and the sewer works system, including repayment of interest on notes of the commission as provided in clause (i) of paragraph (a) and shall be disbursed in such manner and under such restrictions as may be provided in the resolution of the commission.

(c) The municipality, acting by and through its municipal treasurer, shall, upon application of the commission, guarantee the principal of and interest on notes of the commission issued in accordance with this section. The municipal treasurer, with the approval of the executive director and without further authority, may approve the form, terms and conditions of, and may execute and deliver on behalf of the municipality such guaranty and any related agreements with or for the benefit of the holders of such notes containing such terms, conditions and covenants of the municipality as the municipal treasurer may deem reasonable including provision for the payment of notes not paid or refunded by the commission by applications of the proceeds of the loan authorized in this paragraph and provision for the payment of such notes by the municipality over such period of time as the municipality shall be pledged for the guaranty provided for in this section. The total amount of notes permitted to be guaranteed as aforesaid shall be reduced by the outstanding principal amount of bonds issued by the commission to refund notes so guaranteed. Notes guaranteed by the municipality under authority of this section shall not be included in determining the limits of indebtedness of the municipality as established by law nor shall the principal and interest payments thereof be included in any computation under section twenty-one C of chapter fifty-nine. The guaranty of the municipality of such notes shall be executed by the municipal treasurer. It shall be sufficient if the signature of the municipal treasurer upon such notes, if any, is an engraved, printed or stamped facsimile signature, provided that he has, by writing bearing his written signature filed with the municipal clerk, authorized his facsimile signature to be placed thereon. The facsimile signature of the municipal treasurer so engraved, printed or stamped shall have the same validity and effect as his written signature. If the municipal treasurer shall cease to be such officer before the delivery of such notes, such signature or facsimile shall nevertheless be valid and sufficient for all purposes as if he had remained in office until such delivery.

For the purposes of determining the amount of notes or bonds issued or outstanding pursuant to this chapter, the amount of any notes or bonds sold by the commission at a discount shall be equal to the net proceeds thereof determined by subtracting the discount from the face amount of such notes or bonds.

If the commission shall fail or otherwise be unable to refund or pay when due any guaranteed note or notes and the interest thereon issued by the commission in accordance with this section, the treasurer of the municipality with the approval of the executive director and without further authority is hereby authorized and empowered, for the purpose of refunding or paying such guaranteed notes and the interest thereon, to borrow, at one time or from time to time, not exceeding in the aggregate the outstanding principal amount of and interest on such notes so guaranteed and not paid or refunded by the commission, and issue and sell bonds or notes of the municipality therefor, payable in not more than twenty years from their dates. Such bonds shall be registered or with interest coupons attached, may be issued as serial bonds or term bonds or both, and may contain such provisions for the redemption of such bonds or notes prior to maturity at the option of the municipality and at such price or prices and under such terms and conditions as the treasurer with the approval of the executive director may determine prior to the issuance of such bonds. Bonds issued from time to time by the municipality under the authority of this section shall not be included in determining the limit of indebtedness of the municipality as established by law, but shall, except as herein provided, be subject to the provisions applicable to the municipality, of chapter forty-four, including the provisions of section seventeen of said chapter forty-four relative to temporary loans in anticipation of the issue of bonds.

Section 11. In addition to the notes issued under the provisions of section nine, the commission may provide by resolution for the issuance from time to time of bonds of the commission for any of its corporate purposes or the borrowing of money in anticipation of the issuance of such bonds. Bonds may be issued hereunder as general obligations of the commission or as special obligations payable solely from particular funds. Without limiting the generality of the foregoing, such bonds may be issued to pay or refund notes issued by the commission pursuant to section nine, to the cost of any extension, enlargement, or improvement of the water works system or the sewer works system, to provide such reserves for debt service, repairs and replacements or other costs or current expenses as may be required by a trust agreement or resolution securing bonds of the commission, or for any combination of the foregoing purposes.

The commission may also provide by resolution for the issuance from time to time of temporary notes in anticipation of the revenues to be collected or received by the commission in any year, or in anticipation of the receipt of federal, commonwealth or local grants or other aid, including the refunding or renewal of notes issued by the municipality in anticipation of such receipts outstanding at the effective date of this chapter. The issue of such notes shall be governed by the provisions of this chapter relating to the issue of bonds other than such temporary notes as the same may be applicable; provided, however, that notes issued in anticipation of revenues shall mature no later than one year from their respective dates and notes issued in anticipation of federal, commonwealth or local grants or other aid and renewals thereof shall mature no later than the expected date of receipt of such grants or aid. Notes in anticipation of revenues issued to mature less than one year from their dates may be renewed by the commission from time to time by the issue of other temporary notes hereunder; provided, however, the period from the date of an original note to the maturity of any note issued to renew or pay the same or the interest thereon shall not exceed one year.

Section 12. The principal of, premium, if any, and interest on all bonds issued under the provisions of this chapter, unless otherwise provided herein, shall be payable solely from the funds provided therefor from revenues as herein provided. Bonds of each issue shall be dated, shall bear interest at such rate or rates, including rates variable from time to time as determined by such index, banker's loan rate or other method determined by the commission, and shall mature at such time or times, as may be determined by the commission, and may be made redeemable before maturity at the option of the commission at such price or prices and under such terms and conditions as may be fixed by the commission prior to the issue of bonds. The commission shall determine the form of bonds, including interest coupons, if any, to be attached thereto, and the matter of execution of bonds, and shall fix the denomination of bonds and the place of payment of principal and interest, which may be at any bank or trust company within or without the commonwealth. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be such officer before the delivery thereof, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes as if he had remained in office until after such delivery. The commission may also provide for authentication of bonds by a trustee or fiscal agent. Bonds may be issued in bearer or in registered form, or both, and, if notes, may be made payable to bearer or to order, as the commission may determine, and 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 bonds registered as to both principal and interest and for the interchange of bonds registered as to both principal and interest and for the interchange of registered and coupon bonds. The commission may by resolution delegate to the executive director or any member of the commission or any combination of them the power to determine any of the matters set forth in this section including the power to award such notes to a purchaser or purchasers at public sale. The commission may sell its bonds in such manner, either at public or private sale, for such price, at such rate or rates of interest, or at such discount in lieu of interest, as it may determine will best effect the purposes of this chapter.

The commission may issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The commission may also provide for the replacement of any bonds which shall have become mutilated or shall have been destroyed or lost.

In the discretion of the commission, any bonds issued hereunder may be secured by a resolution of the commission or by a trust agreement between the commission and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the commonwealth, and such trust agreement shall be in such form and executed in such manner as may be determined by the commission. Such trust agreement or resolution may pledge or assign, in whole or in part, the revenues and other moneys held or to be received by the commission, including the revenues from any facilities already existing when the pledge or assignment is made, and any contract or other rights to receive the same, whether then existing or thereafter coming into existence and whether then held or thereafter acquired by the commission, and the proceeds thereof, but shall not convey or mortgage the water works system or the sewer works system. Such trust agreement or resolution may contain such provisions for protecting and enforcing the rights, security and remedies of the bondholders as may, in the discretion of the commission, be reasonable and proper and not in violation of law, including, without limiting the generality of the foregoing, 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 commission in relation to the acquisition, construction, improvement, enlargement, alteration, equipping, furnishing, maintenance, use, operation, repair, insurance and disposition of the water works system, the sewer works system or other property of the commission, the custody, safeguarding, investment and application of moneys, the issue of additional or refunding bonds, the fixing, revision and collection of fees, rates, rents, assessments or other charges, the use of any surplus bond proceeds, the establishment of reserves, and the making and mending of contracts.

In the discretion of the commission any bonds or notes issued under authority of this chapter, including notes issued under authority of section nine, may be issued by the commission in the form of lines of credit or other banking arrangements and under such terms and conditions, not inconsistent with this chapter, and under such agreements with the purchasers or makers thereof, as the commission may determine to be in the best interest of the commission. In addition to other security provided herein or otherwise by law, bonds or notes issued by the commission under any provision of this chapter, including section nine hereof, may be secured, in whole or in part, by letter of credit issued to the commission by any bank, trust company or other financial institution, within or without the commonwealth, and the commission may pledge or assign any of its revenues as security for the reimbursement by the commission to the issuers of such letter of credit of any payments made under the letters of credit.

It shall be lawful for any bank or trust company to act as a depository or trustee of the proceeds of bonds, revenues or other moneys under any such trust agreement or resolution and to furnish such indemnification or to pledge such securities and issue such letters of credit as may be required by the commission. Any such trust agreement or resolution may set forth the rights and remedies of bondholders and of the trustee and may restrict the individual right of action by bondholders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the commission may deem reasonable and proper for the security of bondholders. Any pledge of revenues or other property made by the commission under this chapter shall be valid and binding and shall be deemed continuously perfected for the purposes of chapter one hundred and six from the time when the pledge is made; the revenues, moneys, rights and proceeds so pledged and then held or thereafter acquired or received by the commission shall immediately be subject to the lien of such pledge without any physical delivery or segregation thereof or further act; and the lien of any such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the commission, irrespective of whether such parties have notice thereof. Neither the resolution, any trust agreement nor any other agreement by which a pledge is created need be filed or recorded except in the records of the commission, and no filing need be made under the provisions of chapter one hundred and six.

Any holder of a bond issued by the commission under the provisions of this chapter or of any of the coupons appertaining thereto and any trustee under a trust agreement or resolution securing the same, except to the extent the rights herein given may be restricted by such trust agreement or resolution securing the same, except to the extent the rights herein given may be restricted by such trust agreement or resolution, may bring suit upon the bonds or coupons and may, either at law or in equity, by suit, action, mandamus, or other proceedings for legal or equitable relief, including proceedings for the appointment of a receiver to take possession and control of the business and properties of the commission, to operate and maintain the same, to make any necessary repairs, renewals and replacements in respect thereof and to fix, revise and collect fees and charges, protect and enforce any and all rights under such trust agreement, resolution or other agreement, and may enforce and compel the performance of all duties required by this act or by such trust agreement or resolution to be performed by the commission or by any officer thereof.

Section 13. The commission may issue refunding bonds for the purpose of paying any of its bonds at maturity or upon acceleration or redemption. Refunding bonds may be issued at such time prior to the maturity or redemption of the refunded bonds as the commission deems to be in the public interest. 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 such bonds, the expenses of issue of refunding bonds, the expenses of redeeming bonds being refunded and such reserves for debt service or other capital or current expenses from the proceeds of such refunding bonds as may be required by a trust agreement or resolution securing bonds. 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 commission 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 same may be applicable.

Section 14. Bonds, notes and other evidences of indebtedness issued or entered into under the provisions of this chapter shall not be deemed to be a debt or a pledge of the faith and credit of the commonwealth or, excepting any note guaranteed by the municipality pursuant to section nine, of any city or town, but shall be payable solely from the revenues of the commission. All bonds, notes and other evidences of indebtedness, excepting any note guaranteed by the municipality pursuant to section nine, shall contain on the face thereof a statement to the effect that neither the commonwealth nor any city or town shall be obligated to pay the same and that neither the faith and credit nor the taxing power of the commonwealth or of any city or town is pledged to the payment of the principal of or interest on such bonds or notes. Each bond shall also recite whether it is a general obligation of the commission or a special obligation thereof payable solely from particular funds pledged to its payment.

Section 15. All moneys received pursuant to the provisions of this chapter, whether as proceeds from the issue of bonds or as revenues or otherwise, shall be deemed to be trust funds to be held and applied solely as provided in this chapter.

Section 16. Bonds issued under the provisions of this chapter are hereby made securities in which all public officers and public bodies of the commonwealth and its political subdivisions, all insurance companies, trust companies in their commercial departments, savings banks, co-operative banks, banking associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such bonds 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 commonwealth for any purpose for which the deposit of bonds or obligations of the commonwealth is now or may hereafter be authorized by law.

Section 17. Notwithstanding any of the provisions of this chapter or any recitals in any bonds issued under this chapter, all such bonds shall be deemed to be investment securities under chapter one hundred and six.

Section 18. Bonds may be issued under this chapter without obtaining the consent of the emergency finance board established under the provisions of chapter forty-nine of the acts of nineteen hundred and thirty-three or of any department, division, commission, board, bureau or agency of the commonwealth or the municipality, and without any other proceedings or the happening of any other conditions or things than those proceedings, conditions or things which are specifically required therefor by this chapter, and the validity of and security for any bonds issued by the commission shall not be affected by the existence or nonexistence of any such consent or other proceedings, conditions or things.

Section 19. The commission and all its revenues, income and real and personal property shall be exempt from taxation and from betterments and special assessments and the commission shall not be required to pay any tax, excise or assessment to or for the commonwealth or any of its political subdivisions; provided, however, that the commission is authorized to enter into agreements to make annual payments in lieu of taxes with respect to property of the commission located outside the municipality upon which local real estate taxes are being paid as of the effective date of acceptance of this chapter. Bonds issued by the commission and their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be exempt from taxation within the commonwealth.

Section 20. The commission shall at all times keep full and accurate accounts of its receipts, expenditures, disbursements, assets and liabilities, which shall be open to inspection by any officer or duly appointed agent of the commonwealth or the municipality. The commission shall submit an annual report in writing concerning its operations to the legislative and executive bodies of the municipality within one hundred and twenty days following the close of its fiscal year. Such report for the fiscal year ending one year after acceptance of this chapter and for each fiscal year thereafter, shall include financial statements relating to the operations and properties of the commission maintained in accordance with generally accepted accounting principles to the extent applicable and audited by an independent certified public accountant or firm of certified public accountants.

Section 21. Upon termination or dissolution of the commission, the title to all funds and other properties owned by it which remain after payment of all bonds and other obligations of the commission shall vest in the municipality. Notwithstanding the foregoing, if the commission shall fail on or before three years following the date of acceptance of this chapter to pay or refund or provide for the payment of all notes and the interest thereon issued by the commission and guaranteed by the municipality pursuant to section nine, the commission shall thereupon terminate and be dissolved, and all funds, properties, assets and liabilities owned or controlled by it on such date and all rights, benefits and obligations to which the commission shall then be subject, shall immediately vest in, be assumed by, and be reinstated in the municipality by operation of law; provided, however, that if upon any such termination or dissolution any bonds or notes of the commission shall be outstanding, such bonds or notes, unless guaranteed by the municipality under section nine, shall continue to be payable solely from the revenues and other property pledged therefor and shall not be or become a debt or obligation of the municipality except to the extent of such pledge.

No law affecting the powers, rights, duties, or obligations of the commission shall be effective unless it shall apply to water and sewer districts generally or shall have been approved under the provisions of Article 2 of the Amendments of the Constitution of the Commonwealth.

Section 22. Except as otherwise provided herein, upon title to the water works system and the sewer works system becoming vested in the commission under the provisions of section five, any provisions of any special law and part of any special law and all ordinances and parts of ordinances pertaining to the water works system or the sewer works system which are inconsistent with the provisions of this chapter shall be inoperative and cease to be effective.

Section 23. The provisions of this chapter shall be deemed to provide an exclusive, additional, alternative and complete method for the doing of the things authorized hereby and shall be deemed and construed to be supplemental and additional to, and not in derogation of, powers conferred upon the commission by law; provided, however, that insofar as the provisions of this chapter are inconsistent with the provisions of any general or special law, administrative order or regulation, or law of the municipality, the provisions of this chapter shall be controlling. Without limiting the generality of the foregoing, no provision of the municipal charter requiring the ratification by the voters of certain bond issues shall apply to the issuance of bonds of the commission pursuant to this chapter or to the guaranty of the municipality or the bonds of the municipality authorized by section nine.

Section 24. This chapter, being necessary for the welfare of the municipality and its inhabitants, shall be liberally construed to effect the purposes hereof.

Section 25. Municipalities may join together to form a regional water and sewer district commission in the following manner:

(a) Any town by vote in town meeting duly called therefore or city by a vote of the city council and approved by the mayor, except in Plan D and Plan E cities, by vote of the city council and approved by the city manager, may create a special unpaid committee to be known as the district water and sewer planning committee, to consist of three members, to be appointed by the local appointing authority; and may appropriate for the expense of said committee such sum or sums as it may deem necessary. Regional water and sewer district planning committees from any two or more cities or towns may join together to form a regional water and sewer commission district planning board or boards. Such regional water and sewer commission district planning board shall organize forthwith upon its formation by the election of a chairman and secretary-treasurer.

(b) It shall be the duty of the regional water and sewer district commission planning board to study the advisability of establishing a regional water and sewer district commission, its organization, operation and control and of constructing, maintaining and operating such water and sewer facilities to serve the needs of such district; to estimate the construction and operating costs thereof; to investigate the methods of financing such facilities, and any other matters pertaining to the organization and operation of a regional water and sewer district commission; and to submit a report of its findings and recommendations to the selectmen of the several towns.

(c) The said regional district planning board may recommend that there shall be established a regional water and sewer district commission which may include all the cities and towns represented by its membership, or alternatively, any specified combination of such cities or towns. If the said regional district planning board so recommends, it shall submit a proposed agreement or agreements setting forth as to each alternative recommendation, if such be made, the following:-

(i) The number, composition, method of selection, and terms of office of the members of the regional district commission.

(ii) The municipalities in which, or the general area within the regional water and sewer district where, the regional water and sewer district commission shall be located.

(iii) The method of apportioning the expenses of the regional water and sewer district commission, and the method of apportioning the method of construction, including any interest and retirement of principal of any bonds or other obligations issued by the district among the several municipalities comprising the district, and the time and manner of payment of the shares of the several municipalities of any such expense.

(iv) The terms by which any municipality may be admitted to or separated from the regional water and sewer district commission.

(v) The method by which the agreement may be amended.

(vi) The detailed procedure for the preparation and adoption of an annual budget.

(vii) Any other matters, not incompatible with law, which said board may deem advisable.

(d) In the case of a town, the selectmen shall, upon receipt of the recommendation that a regional water and sewer commission district shall be formed, and of a proposed agreement therefore submitted in accordance with subsections (a) to (c), inclusive, of section twenty-four, or otherwise, in the form and with the approval required by said subsections (a) to (c), cause to be presented for determination by vote, with printed ballots at any annual or special town meeting to be held in either case within thirty days after receipt of such recommendation by said selectmen, the question of accepting the provisions of said subsections (a) to (c), inclusive, and the proposed agreement or agreements. The article in the warrant for such annual or special town meeting and the question on the printed ballots to be used at such meeting shall be in substantially the following form:

Shall the town accept the provisions of said subsections (a) to (c), inclusive, of said section twenty-four of chapter forty N of the General Laws, providing for the establishment of a regional water and sewer commission district, together with the towns of ______________ and ______________, etc., and the construction, maintenance and operation of a water and sewer commission by the said district in accordance with the provisions of a proposed agreement filed with the selectmen

If majority of the voters present and voting on said questions in each of the several towns shall vote in the affirmative, and a city or several cities, if any, accept in the manner prescribed below, said subsections (a) to (c), inclusive, of said section twenty-four, shall become effective, and the proposed regional water and sewer district commission shall be deemed to be established forthwith in accordance with the terms of the agreement so adopted notwithstanding any defect or omission in the creation or organization of any regional water and sewer district planning committee or regional water and sewer district commission planning board.

In the case of a city, such acceptance shall take effect on the vote of the city council and approval of the mayor, except in the case of Plan D and Plan E cities, where approval of the city council and the city manager shall be required.

A regional water and sewer district commission established under the provisions of this section shall be a body politic and corporate and political subdivision of the commonwealth with all the powers and duties conferred by law upon such water and sewer commission, as outlined in sections seven and eight.

Section 26. 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 such steps are required by statute.

Section 27. Notwithstanding any general or special law to the contrary, this chapter may be accepted, in whole or in part, in the case of a city with a Plan D or Plan E charter, by the city council upon submission by the city manager; by all other cities by the city council, with the approval of the mayor; in the case of a town with a town council, by the town council; in the case of all other towns, by town meeting; and in the case of an existing water and sewer commission, by its board of commissioners.

SECTION 3. Section 1 of chapter 83 of the General Laws is hereby amended by adding the following paragraph:-

A city, town, commission or district through its sewer department, if any, if thereunto authorized by ordinance, or by-law or by vote of its governing body if a commission or district, may make contracts with, or may go to aid any other city, town, commission or district with regard to the operation, repair and maintenance of the physical properties of its system or systems of sewers and drains. Any such ordinance, by-law or vote may authorize the head of the department in charge of sewers and drains to enter into contracts or to extend such aid subject to such conditions and restrictions as may be prescribed therein. Members of such departments of cities, towns, commissions or districts while in the performance of their duties under such contracts or in extending such aid shall have the same immunities and privileges as if performing the same work in their respective cities, towns, commissions, and districts. Any city, town, commission or district aided under this section shall compensate any city, town, commission or district rendering aid as aforesaid, for such aid and for the whole or any part of any damage to its property sustained in the course of rendering such aid. Any contracts under this section may be for a period not exceeding twenty years.

SECTION 4. Section 15 of chapter 84 of the General Laws, as appearing in the 1990 Official Edition, is hereby amended by striking out, in line 11, the words "or town" and inserting in place thereof the following words:- , town or local water and sewer commission.

SECTION 5. Section 1 of chapter 258 of the General Laws, as so appearing, is hereby amended by inserting after the word "thereof", in line 37, the following words:- including a local water and sewer commission.

SECTION 6. Paragraph (b) of section 10 of chapter 372 of the acts of 1984, as most recently amended by section 18 of chapter 770 of the acts of 1987, is hereby further amended by inserting after the word "body", in line 27, the words:- , which for purposes of this sentence and the next sentence shall mean, in the case of a commission, agency, board or other entity established by a city or town on or after June thirtieth, nineteen hundred and ninety-two for the purpose of providing local water supply and local sewer services to such city or town, such city or town, and shall not mean a commission established on or after June thirtieth, nineteen hundred and ninety-two for such purpose by vote of a commission which was established by special law prior to June thirtieth, nineteen hundred and ninety-two,.