Chapter 165 of the General Laws is hereby amended by inserting after section 28 the following section:-

Section 29.  Local water and sewer district oversight

Notwithstanding any general or special law to the contrary, the department shall have authority over any water or sewer district established as an independent body politic and corporate pursuant to a special law.

The department shall approve fees, rates, rents, assessments, abatements and other charges established by a district; make all necessary inquiries; and ensure compliance by such districts with all state laws and regulations.

Any water and sewer district shall immediately notify the department of any known financial liabilities or risks which are reasonably likely to result in the imminent insolvency of the water or sewer district, or otherwise negatively affect the district’s ability to fulfill its obligations. If a water or sewer district is insolvent and unable to pay its current obligations or pay obligations that will become due during the next fiscal year, the Commonwealth shall appoint a receiver with full authority to operate, assess the continued viability of the district, assume the financial responsibilities of the operations, and make all decisions regarding the water and sewer system.

The department may establish from time to time such reasonable rules and regulations consistent with this chapter as may be necessary to carry out the administration thereof.