Section 46-25.2-1 Merger - Effective date - Transfer of assets and assumption of liabilities.

RI Gen L § 46-25.2-1 (2019) (N/A)
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§ 46-25.2-1. Merger - Effective date - Transfer of assets and assumption of liabilities. (a) Subject to the agreement of the Narragansett Bay water quality management district commission and a city, town or district, the sewage treatment facilities of such city, town, or district may be merged with and into the Narragansett Bay water quality management district commission or acquired by the Narragansett Bay water quality management district commission; provided, however, the acquisition of any sewage treatment facility requires the approval of the city or town council in the municipality where the facility is located. Upon the merger or acquisition, the district or any commission or other governing authority established by such city or town or the state to manage and operate the sewage treatment facilities shall cease to have control and authority over the facilities acquired; provided, however, that all actions shall be taken which are necessary to preserve any federal funds or federal assistance currently available to or expected to become available to the city, town, or district for sewage treatment facilities. The existence of the Narragansett Bay water quality management district commission shall continue unaffected and unimpaired by said merger or acquisition, and the Narragansett Bay water quality management district commission shall continue to be governed by chapter 25 of this title.

(b) The district, the city or town and any commission or governing authority established by the city or town or the state to manage and operate the sewage treatment facilities are hereby authorized to and may pass such resolutions, enter into such agreements and do all things deemed useful and necessary by it to effectuate the merger or acquisition; and the Narragansett Bay water quality management district commission 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 or acquisition.

(c) Upon completion, the merger or acquisition shall be certified to the secretary of state by the executive director of the Narragansett Bay water quality management district commission.

(d)(1) In accordance with the terms of the merger or acquisition agreement, on the effective date of the merger or acquisition, all property, real, personal, and mixed, and all debts due on whatever account, all other choses in action, and all and every other interest of or belonging to or due to the district or city or town related to the sewage treatment facilities, shall, unless otherwise agreed to, be taken and deemed to be transferred to and vested in the Narragansett Bay water quality management district commission without further act or deed; all persons employed by the district or city or town related to the sewage treatment facilities on the date of the merger or acquisition may be deemed employees of the Narragansett Bay water quality management district commission; and the title to any real estate, or any interest therein, vested in the district or city or town related to the sewage treatment facilities shall not revert or be in any way impaired by reason of the merger or acquisition.

(2) In accordance with the terms of the merger or acquisition agreement, the Narragansett Bay water quality management district commission shall, unless otherwise agreed to, also be responsible and liable for all the liabilities and obligations of the district or city or town related to such sewage treatment facilities; and any claim existing or action or proceeding pending by or against the district or city or town related to such sewage treatment facilities shall be prosecuted as if the merger or acquisition had not taken place. Neither the rights of creditors nor any liens upon the property of the district or city or town related to such sewage treatment facilities shall be impaired by the merger or acquisition. The merger or acquisition as provided for herein shall not impair the obligation of any contract or agreement nor abate any suit, action, or other proceeding lawfully commenced by or against the district or city or town related to the sewage treatment facilities, or any of its members or officers in relation to the discharge of their official duties, but a court of competent jurisdiction may, on motion filed within twelve (12) months after the effective date of the merger or acquisition, allow such a suit, action, or proceeding to be maintained by or against the Narragansett Bay water quality management district commission or any of its commissioners in relation to the discharge of their official duties.

(3) Upon a merger or acquisition as provided herein, should the employees of the merged facility ("merged employees") have been represented by a local, subsidiary or affiliate labor organization of one of the parent labor organizations already representing Narragansett Bay water quality management district commission employees, then the merged employees shall be eligible, if appropriate, for accretion into the existing local, subsidiary or affiliate of the Narragansett Bay water quality management district commission employees; and provided further, the Narragansett Bay water quality management district commission shall have no obligation to recognize or bargain with any labor organization which had represented the merged employees when they were employed by the merged facility.

(e) Upon completion of the acquisition, merger, or consolidation, the district or any commission or other governing authority established by a city or town or the state to manage and operate the sewage treatment facilities shall cease to have control and authority over the facilities acquired and any ordinance, charter provision, public law, general law, or bylaw governing the district's, commission's or governing authority's control over the facilities acquired shall be repealed in its entirety.

(f) Subject to the terms of the merger or acquisition agreement employees of the sewage treatment facility, district, commission, or other governing authority who subsequently become employees of the Narragansett Bay water quality management district commission as a result of the acquisition, merger or consolidation, shall be subject to the provisions of §§ 46-25-8 and 36-9-36, and may be able to utilize their term of service with the sewage treatment facility, district, commission, or other governing authority, as determined by the executive director, for the purposes of longevity computation as it applies to wages, vacation time, and longevity increases. Provided, however, accrued vacation, sick leave, and all other benefits with the municipality, sewage treatment facility, district, or other governing authority may be transferred.

(g) Any sewer use fees, charges, and assessments in effect prior to the merger or acquisition shall remain in effect and may be assessed and collected by the commission in accordance with §§ 46-25-5(9), 46-25-5(10), 46-25-21, 46-25-22 and 46-25-22.1. Any change in the sewer use fees, charges and assessments shall be subject to the approval of the public utilities commission.

History of Section. (P.L. 1992, ch. 133, art. 108, § 3; P.L. 1999, ch. 225, § 3; P.L. 2007, ch. 340, § 61.)

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