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A09665 Text:

                STATE OF NEW YORK
                   IN ASSEMBLY
                                     March 27, 2024
        Introduced by M. of A. GALLAHAN -- read once and referred to the Commit-
          tee on Corporations, Authorities and Commissions
        AN  ACT to amend the public authorities law, in relation to enacting the
          "Seneca county water and sewer authority act"
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Article  5  of  the  public authorities law is amended by
     2  adding a new title 6-E to read as follows:
     3                                  TITLE 6-E
     5  Section 1149.   Short title.
     6          1149-a. Definitions.
     7          1149-b. Seneca county water and sewer authority district.
     8          1149-c. Seneca county water and sewer authority.
     9          1149-d. Powers of the authority.
    10          1149-e. Advances on behalf of the authority; transfer of proper-
    11                    ty to the authority; acquisition of property by county
    12                    for the authority.
    13          1149-f. Transfer of officers and employees.
    14          1149-g. Bonds of the authority.
    15          1149-h. Remedies of bondholders.
    16          1149-i. State and municipalities not liable on authority bonds.
    17          1149-j. Moneys of the authority.
    18          1149-k. Bonds legal investments for fiduciaries.
    19          1149-l. Agreement with the state.
    20          1149-m. Exemption from  taxes,  assessments  and  certain  fees;
    21                    payments in lieu of taxes.
    22          1149-n. Actions against the authority.
    23          1149-o. Interest in contracts prohibited.
    24          1149-p. Construction and purchase contracts.
    25          1149-q. Authority to take affirmative action.
    26          1149-r. Audit and annual report.
    27          1149-s. Environmental  applications,  proceedings, approvals and
    28                    permits.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 9665                             2
     1          1149-t. Limited liability.
     2          1149-u. Governmental  capacity  of  the  authority  and  munici-
     3                    palities.
     4          1149-v. Separability clause.
     5          1149-w. Effect of inconsistent provisions.
     6    § 1149. Short title. This title shall be known and may be cited as the
     7  "Seneca county water and sewer authority act".
     8    § 1149-a. Definitions. As used or referred to in this title, unless  a
     9  different meaning clearly appears from the context:
    10    1. "Authority" shall mean the corporation created by section one thou-
    11  sand one hundred forty-nine-c of this title.
    12    2.  "Board"  shall  mean the members of the authority constituting and
    13  acting as the governing board of the authority.
    14    3. "Board of supervisors" shall mean the board of supervisors of Sene-
    15  ca county.
    16    4. "Bonds" shall mean the bonds, notes or other evidences  of  indebt-
    17  edness  issued  by  the  authority  pursuant  to  this  title,  and  the
    18  provisions of this title relating to bonds and bondholders  shall  apply
    19  with  equal  force  and  effect  to notes and noteholders, respectively,
    20  unless the context otherwise clearly requires.
    21    5. "Civil service commission" shall mean the civil service  commission
    22  of the county of Seneca.
    23    6. "Comptroller" shall mean the comptroller of the state of New York.
    24    7.  "Construction"  shall mean the negotiation, acquisition, erection,
    25  building,  alteration,  improvement,  testing,  increase,   enlargement,
    26  extension, reconstruction, interconnection, renovation or rehabilitation
    27  of a water, sewerage or water and sewerage facility, as the case may be;
    28  the  inspection  and supervision thereof; and the engineering, architec-
    29  tural, legal, appraisal, fiscal,  economic  and  environmental  investi-
    30  gations,  services  and  studies, surveys, designs, plans, working draw-
    31  ings,  specifications,  procedures  and  other  actions  preliminary  or
    32  incidental thereto.
    33    8.  "Costs",  as  applied  to  any  project, shall include the cost of
    34  construction, the cost of the acquisition  of  all  property,  including
    35  both  real,  personal  and  mixed,  the cost of demolishing, removing or
    36  relocating any buildings or structures on lands so  acquired,  including
    37  the cost of acquiring any land to which such buildings or structures may
    38  be  moved  or relocated, the cost of all systems, facilities, machinery,
    39  apparatus and equipment, financing charges, interest  prior  to,  during
    40  and  after  construction  to  the  extent  not paid or provided for from
    41  revenues or other sources, the cost  of  engineering  and  architectural
    42  surveys,  plans  and  specifications,  the  cost of consultant and legal
    43  services, the cost of lease guarantee or bond insurance or other  credit
    44  enhancement associated with bonds of the authority (including notes) and
    45  the  cost  of other expenses necessary or incidental to the construction
    46  of such project and the financing of the construction thereof, including
    47  the amount authorized in the resolution of the authority  providing  for
    48  the  issuance of bonds to be paid into any reserve or other special fund
    49  from the proceeds of such bonds and the financing of the placing of  any
    50  project  in operation, including the reimbursement to the county, or any
    51  municipality, state agency, the state, the United States government,  or
    52  any  other  person  for expenditures made by them that would be costs of
    53  the project hereunder.
    54    9. "County" shall mean the county of Seneca.
    55    10. "Distribution system" shall mean the water facility or  facilities
    56  employed  to  deliver water from a transmission facility, or where there

        A. 9665                             3
     1  is no transmission facility, from a supply  facility,  to  the  ultimate
     2  consumers of water.
     3    11.  "District" shall mean the Seneca county water and sewer authority
     4  district created by section eleven hundred forty-nine-b of this title.
     5    12. "Governing body" shall mean:
     6    (a) In the case of a city, county, town or village or district  corpo-
     7  ration  the  finance  board as such term is defined in the local finance
     8  law;
     9    (b) In the case of a public benefit corporation, the members thereof.
    10    13. "Members" shall mean the members of the board.
    11    14.  "Municipality"  shall  mean  any  county,  city,  town,  village,
    12  improvement district under the town law, any other such instrumentality,
    13  including  any  agency or public corporation of the state, or any of the
    14  foregoing or any combination thereof.
    15    15. "Person" shall mean any natural person, partnership,  association,
    16  joint venture or corporation, exclusive of a public corporation.
    17    16.  "Real  property" shall mean lands, structures, franchises, rights
    18  and interests in land, waters, lands underwater,  groundwater,  riparian
    19  rights  and air rights and any and all things and rights included within
    20  said term "real property" and includes not only fee simple absolute, but
    21  also any and all lesser interests including, but not limited  to,  ease-
    22  ments,  rights-of-way,  uses, leases, licenses and all other incorporeal
    23  hereditaments and every estate, interest or right, legal  or  equitable,
    24  including  terms  for years and liens thereon by way of judgments, mort-
    25  gages or otherwise.
    26    17. "State sanitary code" shall mean regulations adopted  pursuant  to
    27  section two hundred twenty-five of the public health law.
    28    18. "Sewage" means the water-carried human or animal wastes from resi-
    29  dences,  buildings,  industrial establishments or other places, together
    30  with such groundwater infiltration and surface water as may be  present.
    31  The  admixture  with  sewage  of industrial or other waste also shall be
    32  considered "sewage" within the meaning of this title.
    33    19. "Sewerage facility" or "sewerage  facilities"  means  any  plants,
    34  structures  and other real and personal property acquired, rehabilitated
    35  or constructed or planned for  the  purpose  of  collecting,  conveying,
    36  pumping,  treating,  neutralizing,  storing  and  disposing  of  sewage,
    37  including but not limited  to  main,  trunk,  intercepting,  connecting,
    38  lateral,  outlet  or other sewers, outfalls, pumping stations, treatment
    39  and disposal plants, groundwater recharge basins,  back-flow  prevention
    40  devices,  sludge dewatering or disposal equipment and facilities, clari-
    41  fiers, filters, phosphorus removal equipment and  other  plants,  works,
    42  structures,  equipment,  vehicles,  conveyances,  contract rights, fran-
    43  chises, approaches, connections, permits, real or personal  property  or
    44  rights therein and appurtenances thereto necessary or useful and conven-
    45  ient  for  the collection, conveyance, pumping, treatment, neutralizing,
    46  storing and disposing of sewage.
    47    20. "State" shall mean the state of New York.
    48    21. "State agency" shall mean any state office, public benefit  corpo-
    49  ration,  department,  board,  commission,  bureau  or division, or other
    50  agency or instrumentality of the state.
    51    22. "Supply facility" shall mean a water  facility  employed  to  make
    52  groundwater  or surface water available for delivery into a transmission
    53  facility or distribution system.
    54    23. "System revenues" shall mean  all  rates,  rents,  fees,  charges,
    55  payments  and other income and receipts derived by the authority includ-
    56  ing, without  limiting  the  generality  of  the  foregoing,  investment

        A. 9665                             4
     1  proceeds  and proceeds of insurance, condemnation, sales or other dispo-
     2  sitions of assets, together with all federal, state or municipal aid  as
     3  well as any other income derived from the operation of the water facili-
     4  ty of the authority.
     5    24.  "Transmission facility" shall mean a water facility used to carry
     6  water from a supply facility to a distribution system.
     7    25. "Treasurer" shall mean the treasurer of the authority.
     8    26. "Water facility" or "water  facilities"  shall  mean  any  plants,
     9  structures  or  other real and personal property acquired, rehabilitated
    10  or constructed or planned for the purpose  of  accumulating,  supplying,
    11  transmitting,  distributing or treating water, including but not limited
    12  to surface or groundwater reservoirs, basins, dams,  canals,  aqueducts,
    13  standpipes,  conduits,  pipelines, mains, pumping stations, pumps, water
    14  distribution systems, compensating reservoirs, intake  stations,  water-
    15  works  or  sources  of  water  supply, wells, purification or filtration
    16  plants or other treatment plants  and  works,  approaches,  connections,
    17  water  meters,  rights  of flowage or diversion and other plants, struc-
    18  tures, equipment, vehicles, towers, conveyances, real or personal  prop-
    19  erty or rights therein and appurtenances thereto necessary or useful and
    20  convenient  for  the  accumulation,  supply,  transmission, treatment or
    21  distribution of water.
    22    27. "Water project" shall mean any sewerage facility,  water  facility
    23  or  water and sewerage facility, as the case may be, including the plan-
    24  ning, development, financing or construction thereof.
    25    28. "Watershed rules" shall mean the rules and regulations made by the
    26  department of health pursuant to section eleven hundred  of  the  public
    27  health law.
    28    §  1149-b. Seneca county water and sewer authority district.  There is
    29  hereby defined and established a district to be  known  as  the  "Seneca
    30  county  water  and  sewer authority district" which shall embrace all of
    31  the territory located within the county of Seneca.
    32    § 1149-c. Seneca county water and sewer authority. 1. A public  corpo-
    33  ration  known as the "Seneca county water and sewer authority" is hereby
    34  created for the public purposes and charged with the duties  and  having
    35  the powers provided in this title.
    36    The  authority shall be a corporate governmental agency constituting a
    37  public benefit corporation and shall be  a  "public  district"  for  the
    38  purposes of section eighty-nine-l of the public service law. The author-
    39  ity  shall  be governed by a board consisting of nine members, who shall
    40  be residents of the county and be appointed by the  chairperson  of  the
    41  board of supervisors and confirmed by the board of supervisors.
    42    The  first  members  appointed  shall  be  appointed for the following
    43  terms: three for a term ending on  December  thirty-first  of  the  year
    44  following  the year in which this title shall have become law; three for
    45  a term ending on December thirty-first of the second year following  the
    46  year  in  which  this  title shall have become law; and three for a term
    47  ending on December thirty-first of the third year following the year  in
    48  which this title shall have become law.
    49    Subsequent appointment of members shall be made in the same manner and
    50  for terms of three years ending in each case on December thirty-first of
    51  the  last  year  of such term. All members shall continue to hold office
    52  until their successors are appointed and have qualified.
    53    Vacancies shall be filled in the manner provided for original appoint-
    54  ment.   Vacancies occurring otherwise than by  expiration  of  terms  of
    55  office, shall be filled by appointment for the unexpired terms.

        A. 9665                             5
     1    Members  may  be  removed  from office for the same reasons and in the
     2  same manner as may be provided by law for the removal of officers of the
     3  county.  In addition, members may be removed from office by the board of
     4  supervisors for inefficiency, neglect of duty or misconduct  in  office,
     5  after  the  board  of  supervisors  has  given such member a copy of the
     6  charges against such member and opportunity to be heard in person or  by
     7  counsel in such member's defense, upon not less than ten days notice.
     8    If  a member fails to attend three consecutive regular meetings of the
     9  authority, unless such absence is for good cause and is excused  by  the
    10  chairperson of the authority or other presiding officers, or in the case
    11  of  the chairperson of the authority, by the chairperson of the board of
    12  supervisors, the office may be deemed vacant for purposes of  the  nomi-
    13  nation and appointment of a successor.
    14    The  officers  of  the authority shall receive from the authority such
    15  salary, if any, as shall be determined from time to time by the board of
    16  supervisors. In addition, members and  officers  shall  be  entitled  to
    17  reimbursement  of  their actual and necessary expenses, including travel
    18  expenses, incurred in the discharge of their duties.
    19    2. The powers of the authority shall be vested in and shall  be  exer-
    20  cised  by  the board at a meeting duly called and held where a quorum of
    21  five members is present. No action  shall  be  taken  by  the  authority
    22  except  pursuant  to  the  favorable  vote of at least five members. The
    23  board may delegate to one or more of its members, or to one or  more  of
    24  the  officers,  agents  or  employees  of the authority, such powers and
    25  duties as it may deem proper.
    26    3. The officers of the authority shall consist of a chairperson,  vice
    27  chairperson,  and  treasurer  who  shall  be  members of the board and a
    28  secretary who need not be a member of the board.  The  officers  of  the
    29  authority shall be appointed by the board and shall serve in such capac-
    30  ities at the pleasure of the board.
    31    In  addition,  the  board  may appoint and at its pleasure remove such
    32  additional officers and employees as it may determine necessary for  the
    33  performance  of  the powers and duties of the authority, which positions
    34  shall be in the exempt class of the civil service, and fix and determine
    35  the qualifications, duties and compensation of such additional  officers
    36  and employees, subject to the provisions of the civil service law of the
    37  state  and such rules as the civil service commission may adopt and make
    38  applicable to the authority.
    39    The authority may also from time to time contract for  expert  profes-
    40  sional  services.   The treasurer shall execute a bond, conditioned upon
    41  the faithful performance of the duties of such treasurer's  office,  the
    42  amount  and sufficiency of which shall be approved by the board, and the
    43  premium therefor shall be paid by the authority.
    44    4. Notwithstanding any inconsistent provision of any general,  special
    45  or  local  law,  ordinance, resolution or charter, no officer, member or
    46  employee of the state, any municipality, or any  public  benefit  corpo-
    47  ration,  shall  forfeit  such  officer,  member  or employee's office or
    48  employment by reason of such officer, member or employee's acceptance of
    49  appointment as a member, officer, agent or employee  of  the  authority,
    50  nor  shall  service as such member, officer, agent or employee be deemed
    51  incompatible or in conflict with such office, membership or  employment,
    52  and  one or more members of the board of supervisors may be appointed to
    53  serve as a member of the authority.
    54    5. (a) The chairperson of the board of supervisors shall  file  within
    55  one  year  after  the effective date of this title, in the office of the
    56  secretary of state, a certificate signed by the chairperson of the board

        A. 9665                             6
     1  of supervisors setting forth: (i) the name of the  authority;  (ii)  the
     2  names of the initial members of the board and their terms of office; and
     3  (iii) the effective date of this title. If such certificate is not filed
     4  with  the  secretary of state on or before such date, then the corporate
     5  existence of the authority shall thereupon terminate and it shall there-
     6  upon be deemed to be and shall be dissolved.
     7    (b) The authority and its corporate  existence  shall  continue  until
     8  terminated by law, provided, however, that no such law shall take effect
     9  so long as the authority shall have bonds or other obligations outstand-
    10  ing unless adequate provision has been made for the payment or satisfac-
    11  tion thereof. Upon termination of the existence of the authority, all of
    12  the  rights and properties of the authority then remaining shall pass to
    13  and vest in the county.
    14    6. Neither the public  service  commission  nor  any  other  board  or
    15  commission of like character, shall have jurisdiction over the authority
    16  in  the  management  and  control of its properties or operations of any
    17  power over the regulation of rates fixed or  charges  collected  by  the
    18  authority.
    19    7.  It  is  hereby  determined and declared that the authority and the
    20  carrying out of its powers, purposes and duties are in all respects  for
    21  the  benefit of the people of the county and the state, for the improve-
    22  ment of their health, welfare and prosperity and that such purposes  are
    23  public  purposes  and  that  the  authority is and will be performing an
    24  essential governmental function in the exercise of the powers  conferred
    25  upon it by this title.
    26    § 1149-d. Powers of the authority. The authority shall have the power:
    27    1. To sue and be sued;
    28    2. To have a seal and alter the same at pleasure;
    29    3.  To  borrow money and issue negotiable notes, bonds, or other obli-
    30  gations and to provide for the rights of the holders thereof;
    31    4. To enter into contracts and execute all  instruments  necessary  or
    32  convenient  or  desirable for the purposes of the authority to carry out
    33  any powers expressly given it in this title;
    34    5. To acquire, by purchase, gift, grant, transfer, contract  or  lease
    35  or  by  condemnation pursuant to the eminent domain procedure law within
    36  the district, lease as lessee, hold  and  use  and  to  sell,  lease  as
    37  lessor,  transfer or otherwise dispose of, any real or personal property
    38  or any interest therein, within or without the district, as the authori-
    39  ty may deem necessary, convenient or desirable to carry out the  purpose
    40  of  this title and to pay the costs thereof; provided, however, that the
    41  authority may not condemn real property of a  municipality  without  the
    42  consent of the governing body of such municipality;
    43    6. To purchase or refuse to purchase in the name of the authority, any
    44  water  or  sewerage facility, including plants, works, instrumentalities
    45  or parts thereof and appurtenances thereto, lands, easements, rights  in
    46  land  and  water  rights,  rights-of-way,  contract  rights, franchises,
    47  permits, approaches, connections, dams, wells, pumps, reservoirs,  water
    48  or  sewer  mains and pipe lines, pumping stations, treatment facilities,
    49  meters, equipment and inventory, or any other property incidental to and
    50  included in such system or part thereof, and  any  improvements,  exten-
    51  sions  and  betterments,  situated wholly within the district and to pay
    52  the costs thereof; provided, however that prior to  the  acquisition  of
    53  any  existing  water  or sewer district, the authority shall discuss and
    54  consider the status of current employees of the water or sewer district;
    55  and further provided, however, that the authority shall have  the  power
    56  to  purchase any source of supply, supply facility, water supply system,

        A. 9665                             7
     1  or transmission facility or any part thereof situated wholly  or  partly
     2  without  the  territorial limits of the district, provided same shall be
     3  necessary  in  order  to  supply  water  within  the  district;  and  in
     4  connection with the purchase of such properties the authority may assume
     5  any  obligations  of  the  owner  of  such properties and, to the extent
     6  required by the terms of any indentures or other instruments under which
     7  such obligations were issued, the authority  may  assume  and  agree  to
     8  perform covenants and observe the restrictions contained in such instru-
     9  ments;  and furthermore the owner of any properties, which the authority
    10  is authorized to acquire, is hereby  authorized  to  sell  or  otherwise
    11  transfer the same to the authority, whereupon the authority shall become
    12  charged  with  the performance of all public duties with respect to such
    13  properties with which such owner was charged and such owner shall become
    14  discharged from the performance thereof, and as a means of so  acquiring
    15  for  such  purpose,  the  authority may purchase all of the stock or any
    16  existing privately owned water corporation or company and in the case of
    17  a sale or other transfer of properties of a public  utility  corporation
    18  pursuant  to  this  provision,  upon  the  purchase of the stock of such
    19  corporation or company it shall be lawful to dissolve  such  corporation
    20  within a reasonable time;
    21    7.  To  construct,  improve, maintain, develop, expand or rehabilitate
    22  water or sewerage facilities and to pay the costs thereof;
    23    8. To operate and manage and to contract for the operation and manage-
    24  ment of facilities of the authority;
    25    9. To enter into contracts, and carry out the terms thereof,  for  the
    26  wholesale  provision of water produced by supply facilities constructed,
    27  owned or operated by the authority, to municipalities and private  water
    28  companies  and  to  carry out the terms thereof, for the transmission of
    29  water from new or existing supply facilities;
    30    10. To enter into contracts with municipalities or other  persons  for
    31  the collection, treatment and disposal of sewage;
    32    11. To apply to the appropriate agencies and officials of the federal,
    33  state  and  local governments for such licenses, permits or approvals of
    34  its plans or projects as it may deem necessary or  advisable,  and  upon
    35  such  terms and conditions as it may deem appropriate, to accept, in its
    36  discretion, such licenses, permits or approvals as may be tendered to it
    37  by such agencies and officials;
    38    12. To take all necessary and reasonable actions within  the  district
    39  to  conserve,  preserve  and  protect  the water supply to the district,
    40  including the making of plans and studies,  the  adoption  of  watershed
    41  rules  and regulations, the enforcing of compliance with all current and
    42  future rules and regulations of the state sanitary code with  regard  to
    43  water  supply and usage, the requiring of cross-connection controls, the
    44  providing of educational material and programs to the  public,  and  the
    45  cooperating  with  water  suppliers  outside  the  district to conserve,
    46  preserve and protect the entire water reserve as it is  affected  within
    47  and outside the authority's supply area;
    48    13.  To  appoint  such  officers and employees as are required for the
    49  performance of its duties, to fix and  determine  their  qualifications,
    50  duties  and  compensation,  and  to  retain or employ counsel, auditors,
    51  engineers, and private consultants on a contract basis or otherwise  for
    52  rendering professional or technical services and advice;
    53    14.  With  the consent of the governing body of a municipality, to use
    54  officers and employees of such municipality and to pay a proper  propor-
    55  tion  of the compensation or costs for the services for such officers or
    56  employees;

        A. 9665                             8
     1    15. To make plans and studies necessary, convenient or  desirable  for
     2  the  effectuation  of  the  purposes  and powers of the authority and to
     3  prepare recommendations in regard thereto;
     4    16.  To  prepare  a water supply emergency plan which may include, but
     5  not be limited to, the following:
     6    (a) establishment of criteria and  procedures  to  determine  critical
     7  water levels or safe yield of system;
     8    (b)  identification  of  existing  and  future  sources of water under
     9  normal conditions and emergency conditions;
    10    (c) system capacity and ability to meet peak  demand  and  fire  flows
    11  concurrently;
    12    (d) storage capacities;
    13    (e)  current  condition of present interconnections and identification
    14  of additional interconnections to meet a water supply emergency;
    15    (f) specific action plan to be followed during a water supply emergen-
    16  cy including a phased implementation of the plan;
    17    (g) general water conservation programs and water use reduction strat-
    18  egies for water supply users;
    19    (h) prioritization of water users;
    20    (i) identification and  availability  of  emergency  equipment  needed
    21  during a water supply emergency; and
    22    (j)  public notification program coordinated with the phased implemen-
    23  tation schedule;
    24    Such plan shall not be adopted until a public  hearing  on  such  plan
    25  shall  have  been held, upon not less than fourteen days' notice thereof
    26  to each customer, either by mail or by publication once in  a  newspaper
    27  having  general  circulation within the district; every five years, such
    28  plan shall be reviewed and revised if necessary after a public  hearing,
    29  with notice to each customer as aforesaid;
    30    17.  To  enter upon such lands, waters, or premises as in the judgment
    31  of the authority shall be necessary for the purpose of  making  surveys,
    32  soundings, borings and examinations to accomplish any purpose authorized
    33  by this title, the authority being liable only for actual damage done;
    34    18.  To  apply for and to accept any gifts or grants or loans of funds
    35  or property or financial or other aid  in  any  form  from  the  federal
    36  government  or  any agency or instrumentality thereof, or from the state
    37  or any agency or instrumentality thereof, or from any other source,  for
    38  any  or  all  of  the  purposes  specified in this title, and to comply,
    39  subject to the provisions of this title, with the terms  and  conditions
    40  thereof;
    41    19.  To  supply  and  sell  water  for domestic, commercial and public
    42  purposes at retail to individual consumers within  the  district  or  to
    43  collect, treat or discharge sewage produced within the district;
    44    20. To purchase water in bulk from any person, private or public bene-
    45  fit  corporation  or  municipality  when necessary or convenient for the
    46  operation of such water system;
    47    21. To  produce,  develop,  distribute  and  sell  water  or  sewerage
    48  services  within  or without the territorial limits of the district; and
    49  to purchase water from any municipality, town  water  district,  person,
    50  association  or  corporation,  provided, however, that water or sewerage
    51  services may be sold at retail to individual consumers only  within  the
    52  district  and  further provided that in exercising the powers granted by
    53  this title, the authority shall not sell water  in  any  area  which  is
    54  served  by  a  water  system  or  sewerage services in any area which is
    55  served by a sewerage system owned  or  operated  by  a  municipality  or
    56  special  improvement  district unless the governing body of such munici-

        A. 9665                             9
     1  pality or district shall adopt a resolution requesting the authority  to
     2  sell  water  or  sewerage  services,  as the case may be, in such served
     3  areas;
     4    22.  To  make  bylaws for the management and regulation of its affairs
     5  and  rules  and  regulations  for  the  conservation,  preservation  and
     6  protection  of  the  authority's water supply and, subject to agreements
     7  with bondholders, rules for the sale of water or  collection  of  sewage
     8  and the collection of rents and charges therefor.  A copy of such rules,
     9  regulations and bylaws and any rules and regulations adopted pursuant to
    10  subdivision  eleven  of  this  section, and all amendments thereto, duly
    11  certified by the secretary of the authority shall be filed in the office
    12  of the county clerk of the county. In addition, the board of supervisors
    13  by local law shall have power to prescribe that  violation  of  specific
    14  bylaws, rules, or rules and regulations of the authority, published once
    15  in  a  newspaper  having general circulation within the county, shall be
    16  punishable as determined by a court of competent jurisdiction;
    17    23. To fix rates and collect charges for the use of the facilities of,
    18  or services rendered by, or any commodities furnished by  the  authority
    19  such  as to provide revenues sufficient at all times to pay, as the same
    20  shall become due, the principal of and interest on the bonds, notes,  or
    21  other  obligations  of  the  authority  together with the maintenance of
    22  proper reserves therefor, in addition to paying as the same shall become
    23  due, the expense of operating and  maintaining  the  properties  of  the
    24  authority  together  with proper maintenance reserves, capital reserves,
    25  repair reserves, other contingency reserves, and all  other  obligations
    26  and indebtedness of the authority;
    27    24. To enter into cooperative agreements with other authorities, muni-
    28  cipalities,  counties, cities, towns, villages, water districts, utility
    29  companies, individuals, firms or corporations,  within  or  without  the
    30  territorial  limits  of  the district for the interconnection of facili-
    31  ties, the provision, exchange or interchange  of  services  and  commod-
    32  ities,  the conservation, preservation and protection of the authority's
    33  water reserve as it is  affected  within  and  outside  the  authority's
    34  supply  area,  and,  within  the  territorial limits of the district, to
    35  enter into a contract for the construction, operation and maintenance of
    36  a water supply and distribution system by the authority for any  munici-
    37  pality having power to construct and develop a water supply and distrib-
    38  ution  system  or  sewerage  system  or  facilities, upon such terms and
    39  conditions as shall be determined to be reasonable,  including  but  not
    40  limited  to  the reimbursement of all costs of such construction, or for
    41  any other lawful purposes necessary or desirable to effect the  purposes
    42  of this title;
    43    25.  To  provide for the discontinuance or disconnection of the supply
    44  of water or sewerage service, or both, as the case may be,  for  nonpay-
    45  ment  of  fees,  rates,  rents  or other charges therefor imposed by the
    46  authority, provided such discontinuance or disconnection of any water or
    47  sewerage service, or both, as the case may be, shall not be carried  out
    48  except  in the manner and upon the notice as is required of a waterworks
    49  corporation pursuant to subdivisions three-a,  three-b  and  three-c  of
    50  section  eighty-nine-b  and  section  one  hundred sixteen of the public
    51  service law;
    52    26. To act as a county water agency in accordance with the  provisions
    53  of article five-A of the county law;
    54    27.  To  do all things necessary, convenient or desirable to carry out
    55  its purposes and for all exercise of the powers granted in this title.

        A. 9665                            10
     1    § 1149-e. Advances on behalf of the authority; transfer of property to
     2  the authority; acquisition of property by county for  authority.  1.  In
     3  addition  to  any  powers  granted to it by law, the county from time to
     4  time may appropriate sums of money,  after  approval  by  the  board  of
     5  supervisors, to or on behalf of the authority to defray project costs or
     6  any  other costs and expenses of the authority. Subject to the rights of
     7  bondholders, the county at the time of the appropriation shall determine
     8  if the moneys so appropriated shall  be  subject  to  repayment  by  the
     9  authority to the county and, in such event, the manner and time or times
    10  for such repayment.
    11    2. The county or any other municipality may give, grant, sell, convey,
    12  loan,  license  the  use  of  or  lease to the authority any property or
    13  facility which is useful to the authority in  order  to  carry  out  its
    14  powers  under  this  title.  Any such transfer of property shall be upon
    15  such terms and conditions, subject to the rights of the holders  of  any
    16  bonds, as the authority and the county or other municipality may agree.
    17    3.  The  county may acquire by purchase or by exercise of the power of
    18  eminent domain real property in the name of the county for any corporate
    19  purpose of the authority.
    20    4. Notwithstanding the provisions of any other law,  general,  special
    21  or local to the contrary, real property acquired by the authority or the
    22  county  from  the  state  may  be  used for any corporate purpose of the
    23  authority.
    24    § 1149-f. Transfer of officers and employees. Any officer or  employee
    25  under  civil  service who is selected by the authority and may be trans-
    26  ferred to the authority and shall be  eligible  for  such  transfer  and
    27  appointment  without  examination  to  comparable offices, positions and
    28  employment under the authority.
    29    The salary or compensation of any such officer or employee, as  deter-
    30  mined by the authority, shall after such transfer be paid by the author-
    31  ity.
    32    Any  such officers or employees so transferred to the authority pursu-
    33  ant to this section, who are  members  of  or  beneficiaries  under  any
    34  existing  pension  or  retirement fund or system, shall continue to have
    35  all rights, privileges, obligations and status with respect to such fund
    36  or system as are now prescribed by law, but during the period  of  their
    37  employment  by the authority, all contributions to such funds or systems
    38  to be paid by the employer on account  of  such  officers  or  employees
    39  shall be paid by the authority.
    40    All  such  officers  and employees so transferred to the authority who
    41  have been appointed to positions under the rules and classifications  of
    42  the  civil  service  commission  shall have the same status with respect
    43  thereto after transfer to the authority as they had under their original
    44  appointments. The appointment and promotion  of  all  employees  of  the
    45  authority  shall  be made in accordance with the provisions of the civil
    46  service law and such rules as the civil service commission may adopt and
    47  make applicable to the authority.
    48    § 1149-g. Bonds of the authority. 1.  The  authority  shall  have  the
    49  power  and  is  hereby  authorized  from  time to time to issue bonds in
    50  conformance with the applicable provisions  of  the  uniform  commercial
    51  code  in  such  principal amounts as it may determine to be necessary to
    52  pay the cost of any water project or projects or for any other corporate
    53  purposes, including incidental expenses in connection therewith.
    54    The authority shall have power from time to time to refund  any  bonds
    55  by  the  issuance  of new bonds whether the bonds to be refunded have or

        A. 9665                            11
     1  have not matured, and may  issue  bonds  partly  to  refund  bonds  then
     2  outstanding and partly for any other corporate purpose.
     3    Bonds  issued  by  the  authority shall be special obligations payable
     4  solely out of particular revenues or other moneys of  the  authority  as
     5  may  be  designated  in the proceedings of the authority under which the
     6  bonds shall be authorized to be issued, subject to any  agreements  with
     7  the holders of outstanding bonds pledging particular revenues or moneys.
     8    2. The authority is authorized to obtain from any department or agency
     9  of  the United States of America of the state or nongovernmental insurer
    10  or financial  institution  any  insurance,  guaranty,  or  other  credit
    11  enhancement  arrangement,  to  the extent now or hereafter available, as
    12  to, or for the payment or repayment of interest or principal,  or  both,
    13  or  any  part thereof, on any bonds or notes issued by the authority and
    14  to enter into any agreement or contract with respect to such  insurance,
    15  guaranty  or  credit  enhancement arrangement, except to the extent that
    16  the same would in any way impair or interfere with the  ability  of  the
    17  authority  to  perform  and fulfill the terms of any agreement made with
    18  the holder of the bonds or notes of the authority.
    19    3. Bonds shall be authorized by resolution of the authority,  and  may
    20  be  in such denominations and bear such date or dates and mature at such
    21  time or times as such resolution may  provide,  except  that  bonds  and
    22  renewals  thereof  shall  mature  within forty years from the date their
    23  original issuance and notes and any renewals thereof shall mature within
    24  five years from the date of their original issuance. Such bonds shall be
    25  subject to such terms of redemption,  bear  interest  at  such  rate  or
    26  rates,  which  may vary from time to time, as may be necessary to effect
    27  the sale thereof and shall be payable at such times, be  in  such  form,
    28  carry such registration privileges, be executed in such manner, be paya-
    29  ble in such medium of payment at such place or places, and be subject to
    30  such terms and conditions as such resolution may provide.
    31    Bonds  may be sold at public sale or at private sale for such price or
    32  prices as the authority shall determine, provided that no issue of bonds
    33  may be sold by the authority at private sale unless such  sale  and  the
    34  terms  thereof  have  been approved in writing by the comptroller, where
    35  such sale is not to the comptroller, or by the  state  director  of  the
    36  budget, where such sale is to be to the comptroller.
    37    4.  Any  resolution  or  resolutions authorizing bonds or any issue of
    38  bonds by the authority may contain provisions which may be part  of  the
    39  contract with the holders of the bonds thereby authorized as to:
    40    (a)  pledging  all  or  part  of its revenues, together with any other
    41  moneys, or property of the authority,  to  secure  the  payment  of  the
    42  bonds,  including but not limited to any contracts, earnings or proceeds
    43  of any grant to the  authority  received  from  any  private  or  public
    44  source, subject to such agreements with bondholders as may then exist;
    45    (b)  the  rates,  rentals,  fees  and  other  charges  to be fixed and
    46  collected by the authority and the amounts to be  raised  in  each  year
    47  thereby, and the use and disposition of revenues;
    48    (c)  the  setting  aside of reserves and the creation of sinking funds
    49  and the regulation and disposition thereof;
    50    (d) limitations on the purpose to which the proceeds from the sale  of
    51  bonds may be applied;
    52    (e) limitations on the right of the authority to restrict and regulate
    53  the  use  of  any water project or part thereof in connection with which
    54  bonds are issued;

        A. 9665                            12

     1    (f) limitations on the issuance of additional bonds,  the  terms  upon
     2  which  additional  bonds  may be issued and secured and the refunding of
     3  outstanding or other bonds;
     4    (g)  the  procedure,  if  any, by which the terms of any contract with
     5  bondholders may be amended or abrogated,  including  the  proportion  of
     6  bondholders  which  must  consent  thereto, and the manner in which such
     7  consent may be given;
     8    (h) the creation of special funds into which  any  revenues  or  other
     9  moneys may be deposited;
    10    (i) the terms and provisions of any trust, deed, mortgage or indenture
    11  securing the bonds under which the bonds may be issued;
    12    (j)  vesting  in a trustee or trustees such properties, rights, powers
    13  and duties in trust as the authority may determine,  which  may  include
    14  any  or all of the rights, powers and duties of the trustee appointed by
    15  the bondholders pursuant to applicable sections of this title and limit-
    16  ing or abrogating the rights of the bondholders  to  appoint  a  trustee
    17  under  such  section  or  limiting the rights, duties and powers of such
    18  trustee;
    19    (k) defining the acts or omissions  to  act  which  may  constitute  a
    20  default  in the obligations and duties of the authority to the bondhold-
    21  ers and providing for the rights and remedies of the bondholders in  the
    22  event of such default, including as a matter of right the appointment of
    23  a  receiver,  provided, however, that such rights and remedies shall not
    24  be inconsistent with the general laws of the state and other  provisions
    25  of this title;
    26    (l)  limitations  on  the  power of the authority to sell or otherwise
    27  dispose of any water facility or any part thereof or other property;
    28    (m) limitations on the amount of  revenues  and  other  moneys  to  be
    29  expended for operating, administrative or other expenses of the authori-
    30  ty;
    31    (n)  the  protection and enforcement of the rights and remedies of the
    32  bondholders;
    33    (o) the obligations of the authority in relation to the  construction,
    34  maintenance,  operation,  repairs  and  insurance of its properties, the
    35  safeguarding and application of all moneys and as  to  the  requirements
    36  for  the  supervision and approval of consulting engineers in connection
    37  with construction, reconstruction and operation;
    38    (p) the payment of the proceeds of bonds, revenues and other moneys to
    39  a trustee or other depository, and for the method of disbursement there-
    40  of with such safeguards and restrictions as the authority may determine;
    41  and
    42    (q) any other matters of like or different character which in any  way
    43  affect  the  security or protection of the bonds or the rights and reme-
    44  dies of bondholders.
    45    5. In addition to the powers herein conferred upon  the  authority  to
    46  secure  its bonds, the authority shall have power in connection with the
    47  issuance of bonds to enter into such agreements  as  the  authority  may
    48  deem  necessary,  convenient or desirable concerning the use or disposi-
    49  tion of its revenues or other moneys or property, including  remarketing
    50  agreements  or other similar agreements for the bonds, the mortgaging of
    51  any property and the entrusting, pledging or creation of any other secu-
    52  rity interest in any such revenues, moneys, or property and the doing of
    53  any act, including refraining from doing any act,  which  the  authority
    54  would have the right to do in the absence of such agreements.
    55    The  authority  shall  have power to enter into amendments of any such
    56  agreements within the powers granted to the authority by this title  and

        A. 9665                            13

     1  to  perform  such agreements.  The provisions of any such agreements may
     2  be made a part of the contract with the holders of bonds of the authori-
     3  ty.
     4    6.  Any  provision  of  the  uniform  commercial  code to the contrary
     5  notwithstanding, any pledge of or other security interest  in  revenues,
     6  moneys, accounts, contract rights, general intangibles or other personal
     7  property  made  or  created by the authority shall be valid, binding and
     8  perfected from the time when such  pledge  is  made  or  other  security
     9  interest  attaches  without  any  physical delivery of the collateral or
    10  further act, and the lien of any such pledge or other security  interest
    11  shall  be valid, binding and perfected against all parties having claims
    12  of any kind in tort, contract or otherwise against the  authority  irre-
    13  spective  of whether or not such parties have notice thereof. No instru-
    14  ment by which such a pledge or security  interest  is  created  nor  any
    15  financing statement need be recorded or filed.
    16    7.  Whether  or  not  the  bonds of the authority are of such form and
    17  character as to be negotiable instruments under the terms of the uniform
    18  commercial code, the bonds are hereby made negotiable instruments within
    19  the meaning of and for all purposes  of  the  uniform  commercial  code,
    20  subject only to the provisions of the bonds for registration.
    21    8.  Neither  the  members  nor  the  officers of the authority nor any
    22  person executing bonds shall be liable personally thereon or be  subject
    23  to  any  personal  liability or accountability by reason of the issuance
    24  thereof.
    25    9. The authority, subject to such agreements with bondholders as  then
    26  may  exist,  shall  have  power  out of any moneys available therefor to
    27  purchase bonds of the authority in lieu of redemption, at  a  price  not
    28  exceeding:
    29    (a) if the bonds are then redeemable, the redemption price then appli-
    30  cable, plus accrued interest to the next interest payment date;
    31    (b)  if  the  bonds are not then redeemable, the redemption price then
    32  applicable on the first date after such purchase upon  which  the  bonds
    33  become  subject to redemption plus accrued interest to the next interest
    34  payment date.
    35    10. The authority shall have power and is hereby authorized  to  issue
    36  negotiable   bond  anticipation  notes  in  conformity  with  applicable
    37  provisions of the uniform commercial code and may renew  the  same  from
    38  time  to  time  but  the  maximum  maturity  of any such note, including
    39  renewals thereof, shall not exceed five years from the date of issue  of
    40  such original note.
    41    Such  notes  shall  be paid from any moneys of the authority available
    42  therefor and not otherwise pledged or from the proceeds of sale  of  the
    43  bonds  of  the  authority in anticipation of which they were issued. The
    44  notes shall be issued in the same manner as bonds and such notes and the
    45  resolution  or  resolutions  authorizing  the  same  may   contain   any
    46  provisions, conditions or limitations which the bonds or bond resolution
    47  of  the authority may contain. Such notes may be sold at public sale or,
    48  upon the approval of the comptroller of the terms  thereof,  at  private
    49  sale.  Such  notes  shall  be  as  fully  negotiable as the bonds of the
    50  authority.
    51    § 1149-h. Remedies of bondholders. Subject to any resolution or resol-
    52  utions adopted pursuant to applicable provisions of this title:
    53    1. In the event that the authority shall default  in  the  payment  of
    54  principal  of or interest on any issue of the bonds after the same shall
    55  become due whether at maturity or upon call  for  redemption,  and  such
    56  default shall continue for a period of thirty days, or in the event that

        A. 9665                            14
     1  the authority shall fail or refuse to comply with the provisions of this
     2  title,  or  shall  default in any agreement made with the holders of any
     3  issue of the bonds, the holders of twenty-five per centum  in  aggregate
     4  principal amount of the bonds of such issue then outstanding, by instru-
     5  ment  or  instruments filed in the office of the clerk of the county and
     6  proved or acknowledged in the same manner as a deed to be recorded,  may
     7  appoint  a  trustee  to  represent  the  holders  of  such bonds for the
     8  purposes herein provided.
     9    2. Such trustee may, and upon written request of the holders of  twen-
    10  ty-five  per centum in principal amount of such bonds outstanding shall,
    11  in such trustee's own name:
    12    (a) by action or proceeding in accordance with the civil practice  law
    13  and  rules, enforce all rights of the bondholders including the right to
    14  require the  authority  to  collect  rents,  rates,  fees,  and  charges
    15  adequate  to  carry  out  any agreement as to, or pledge of, such rents,
    16  rates and charges, and to require the authority to carry out  any  other
    17  agreements  with  the  holders  of  such bonds and to perform its duties
    18  under this title;
    19    (b) bring an action or proceeding upon such bonds;
    20    (c) by action or proceeding, require the authority to account as if it
    21  were the trustee of an express trust for the holders of such bonds;
    22    (d) by action or proceeding, enjoin any acts or things  which  may  be
    23  unlawful or in violation of the rights of the holders of such bonds; and
    24    (e)  declare all such bonds due and payable, and if all defaults shall
    25  be made good, then with the consent of the holders  of  twenty-five  per
    26  centum  of  the  principal  amount of such bonds then outstanding, annul
    27  such declaration and its consequences.
    28    3. Such trustee shall in addition to the foregoing  have  and  possess
    29  all of the powers necessary or appropriate for the exercise of any func-
    30  tions  specifically set forth herein or incidental to the general repre-
    31  sentation of bondholders in the  enforcement  and  protection  of  their
    32  rights.
    33    4.  The  state  supreme court shall have jurisdiction of any action or
    34  proceeding by the trustee on behalf of such bondholders.  Venue  of  any
    35  such action or proceeding shall be laid in the county.
    36    5.  Any such trustee, whether or not the issue of bonds represented by
    37  such trustee has been declared due and payable, shall be entitled as  of
    38  right to the appointment of a receiver of any part or parts of the prop-
    39  erties  the  revenues of which are pledged for the security of the bonds
    40  of such issue, and, subject to any pledge or agreement with  holders  of
    41  such  bonds, such receiver may enter and take possession of such part or
    42  parts of the properties and shall take  possession  of  all  moneys  and
    43  other  property  derived  from such part or parts of such properties and
    44  proceed with any construction thereon or the acquisition of any  proper-
    45  ty,  real  or  personal,  in connection therewith which the authority is
    46  under obligation to do, and to operate, maintain  and  reconstruct  such
    47  part  or  parts  of  the properties and collect and receive all revenues
    48  thereafter arising therefrom subject to any pledge thereof or  agreement
    49  with  bondholders  relating  thereto  and  perform the public duties and
    50  carry out the agreements and obligations  of  the  authority  under  the
    51  direction  of  the court. In any suit, action or proceeding by the trus-
    52  tee, the fees, counsel fees and expenses  of  the  trustee  and  of  the
    53  receiver,  if  any, shall constitute taxable disbursements and all costs
    54  and disbursements allowed by the court shall be a first  charge  on  any
    55  revenues derived from the properties.

        A. 9665                            15
     1    6.  Before declaring the principal of bonds due and payable, the trus-
     2  tee shall first give thirty days notice in writing to the authority.
     3    §  1149-i.  State  and  municipalities  not liable on authority bonds.
     4  Neither the state nor any municipality shall be liable on the  bonds  of
     5  the  authority and such bonds shall not be a debt of the state or of any
     6  municipality.
     7    § 1149-j. Moneys of the authority. All moneys of  the  authority  from
     8  whatever  source derived shall be paid to the treasurer of the authority
     9  and shall be deposited forthwith in  one  or  more  banks  and/or  trust
    10  companies  in  the state designated by the authority. The moneys in such
    11  accounts shall be paid out on checks of the treasurer  upon  requisition
    12  by  the  board  or  of such other person or persons as the authority may
    13  authorize to make such requisitions.
    14    All deposits of such moneys shall be secured  by  obligations  of  (or
    15  guaranteed  by)  the United States or of the state or of the county of a
    16  market value equal at all times to the amount on deposit and  all  banks
    17  and trust companies are authorized to give such security for such depos-
    18  its.  Any  moneys  of  the  authority  not required for immediate use or
    19  disbursement may, at the discretion of the  authority,  be  invested  in
    20  those  obligations specified pursuant to the provisions of section nine-
    21  ty-eight-a of the state finance law.
    22    The authority shall have power, notwithstanding the provisions of this
    23  section, to contract with the holders of any bonds as  to  the  custody,
    24  collection,  security,  investment  and  payment  of  any  moneys of the
    25  authority or any moneys held in trust or otherwise for  the  payment  of
    26  bonds  or any way to secure bonds. Moneys held in trust or otherwise for
    27  the payment of bonds or in any way to secure bonds and deposits of  such
    28  moneys  may be secured in the same manner as moneys of the authority and
    29  all banks and trust companies are authorized to give such  security  for
    30  such deposits.
    31    §  1149-k.  Bonds  legal investments for fiduciaries. The bonds of the
    32  authority are hereby made securities in which all public  officials  and
    33  bodies  of the state and all municipalities, all insurance companies and
    34  associations and other persons carrying on an  insurance  business,  all
    35  banks, bankers, trust companies, savings banks and savings associations,
    36  including  savings and loan associations, investment companies and other
    37  persons carrying on a banking business, and  administrators,  guardians,
    38  executors,  trustees and other fiduciaries and all other persons whatso-
    39  ever, who are now or may hereafter be authorized to invest in  bonds  or
    40  other  obligations  of  the state, may properly and legally invest funds
    41  including capital in their control or belonging to them.
    42    The bonds are also hereby made securities which may be deposited  with
    43  and  may  be received by all public officers and bodies of the state all
    44  municipalities for any purposes for which the deposit of bonds or  other
    45  obligations of the state is now or hereafter may be authorized.
    46    §  1149-l.  Agreement  with the state. The state does hereby pledge to
    47  and agree with the holders of any bonds issued by the authority pursuant
    48  to this title that the state will not alter or limit the  rights  hereby
    49  vested  in  the  authority  to  purchase,  construct, maintain, operate,
    50  repair, improve, increase, enlarge, extend, reconstruct, renovate, reha-
    51  bilitate or dispose of any water or sewer project, or any part or  parts
    52  thereof,  for  which  bonds  of the authority shall have been issued, to
    53  establish and collect rates, rents, fees and other charges  referred  to
    54  in this title and to fulfill the terms of any agreement made with or for
    55  the  benefit  of the holders of the bonds or with any public corporation
    56  or person with reference to such project or part thereof, or in any  way

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     1  impair  the  rights  and  remedies  of the bondholders, until the bonds,
     2  together with the interest thereon, including  interest  on  any  unpaid
     3  installments  of interest, and all costs and expenses in connection with
     4  any  action or proceeding by or on behalf of such holders, are fully met
     5  and discharged. The authority is authorized to include this  pledge  and
     6  agreement of the state in any agreement with bondholders.
     7    § 1149-m. Exemption from taxes, assessments and certain fees; payments
     8  in  lieu  of  taxes. 1. It is hereby determined that the creation of the
     9  authority and the carrying out of  its  corporate  purposes  is  in  all
    10  respects  for  the benefit of the people of the county and the state and
    11  is a public purpose, and the authority shall be regarded as performing a
    12  governmental function in the exercise of the powers conferred upon it by
    13  this title and shall not be required to pay any taxes, special ad  valo-
    14  rem  levies or special assessments upon any real property owned by it or
    15  any filing, recording or transfer fees or taxes in relation  to  instru-
    16  ments filed, recorded or transferred by it or on its behalf.
    17    2.  The authority may pay, or may enter into agreements with any muni-
    18  cipality not located within the county to pay, a sum or sums annually or
    19  otherwise or to provide other considerations to such  municipality  with
    20  respect  to  real  property  owned  by the authority located within such
    21  municipality and constituting a part of its water or sewerage system.
    22    3. Any bonds issued pursuant to this title together  with  the  income
    23  therefrom  shall  be exempt from taxation except for transfer and estate
    24  taxes. The revenues, moneys and all other property and all activities of
    25  the authority shall be exempt from all taxes and  governmental  fees  or
    26  charges,  whether  imposed  by  the state or any municipality, including
    27  without limitation real estate taxes, franchise taxes,  sales  taxes  or
    28  other excise taxes.
    29    4.  The state hereby covenants with the purchasers and with all subse-
    30  quent holders and transferees of bonds issued by the authority  pursuant
    31  to this title, in consideration of the acceptance of and payment for the
    32  bonds, that the bonds of the authority issued pursuant to this title and
    33  the  income  therefrom  shall  be exempt from taxation as aforestated in
    34  subdivision three of this section, and that all  revenues,  moneys,  and
    35  other  property pledged to secure the payment of such bonds shall at all
    36  times be free from taxation as aforestated in such subdivision.
    37    § 1149-n. Actions against the authority. 1. Except in  an  action  for
    38  wrongful  death,  no action or special proceeding shall be prosecuted or
    39  maintained against the authority for personal injury or damage  to  real
    40  or  personal  property  alleged  to have been sustained by reason of the
    41  negligence or wrongful act of the  authority  or  any  member,  officer,
    42  agent or employee thereof, unless:
    43    (a) a notice of claim shall have been made and served upon the author-
    44  ity  within  the time limit prescribed by and in compliance with section
    45  fifty-e of the general municipal law;
    46    (b) it shall appear by and as an allegation in the complaint or moving
    47  papers that at least thirty days have elapsed since the service of  such
    48  notice  and  that  adjustment  or  payment thereof has been neglected or
    49  refused;
    50    (c) the action or special proceeding shall  be  commenced  within  one
    51  year  and  ninety  days  after the happening of the event upon which the
    52  claim is based; and
    53    (d) the action or special proceeding shall be commenced in  accordance
    54  with the notice of claim and time limitation provisions of this chapter.
    55    2.  Wherever  a notice of claim is served upon the authority, it shall
    56  have the right to demand an examination of the claimant relative to  the

        A. 9665                            17
     1  occurrence  and  extent  of  the  injuries or damages for which claim is
     2  made, in accordance with the provisions of section fifty-h of the gener-
     3  al municipal law.
     4    3.  The  authority may require any person presenting for settlement an
     5  account or claim for any cause whatever  against  the  authority  to  be
     6  sworn  before  a  member,  counsel,  or an attorney, officer or employee
     7  thereof designated for such purpose, concerning such  account  or  claim
     8  and  when  so  sworn,  to answer orally as to any facts relative to such
     9  account or claim. The authority shall have power to settle or adjust all
    10  claims in favor of or against the authority.
    11    4. Any action or proceeding to which the authority or  the  people  of
    12  the state may be parties, in which any question arises as to the validi-
    13  ty  of  this  title,  shall  be preferred over all other civil causes of
    14  action or cases, except election causes  of  action  or  cases,  in  all
    15  courts  of  the state and shall be heard and determined in preference to
    16  all other civil business pending therein except election  causes,  irre-
    17  spective  of  position  on  the calendar.   The same preference shall be
    18  granted upon application of the authority or its counsel in  any  action
    19  or  proceeding  questioning  the  validity  of  this  title in which the
    20  authority may be allowed to intervene. The venue of any such  action  or
    21  proceeding shall be laid in the supreme court of the county.
    22    5.  The rate of interest to be paid by the authority upon any judgment
    23  for which it is liable, other than a judgment against the  authority  on
    24  bonds,  shall  be  the rate prescribed by section three-a of the general
    25  municipal law. Interest on payments of  principal  or  interest  on  any
    26  bonds  in  default  shall  accrue at the rate or rates set forth in such
    27  bonds from the due date thereof until paid or otherwise satisfied.
    28    § 1149-o. Interest in contracts prohibited. It shall be a  misdemeanor
    29  for any member or any officer, agent, servant or employee of an authori-
    30  ty to be in any way or manner interested, directly or indirectly, in the
    31  furnishing  of  work,  materials,  supplies or labor, or in any contract
    32  therefor which the authority is empowered by this title to make.
    33    § 1149-p. Construction and purchase contracts. The authority shall let
    34  contracts for construction or purchase of supplies, materials, or equip-
    35  ment pursuant to section one hundred three of the general municipal law.
    36  Nothing in this section shall be construed to limit  the  power  of  the
    37  authority  to  do  any construction directly by the officers, agents and
    38  employees of the authority.
    39    § 1149-q. Authority to take affirmative action.  The  authority  shall
    40  ensure  that, where possible, all employees or applicants for employment
    41  are afforded equal employment opportunity without discrimination.
    42    § 1149-r. Audit and annual report. In conformity with  the  provisions
    43  of  section five of article ten of the constitution, the accounts of the
    44  authority shall be subject to the supervision of  the  comptroller.  The
    45  authority  shall  annually submit to the governor and comptroller and to
    46  the state legislature a detailed report pursuant to  the  provisions  of
    47  this chapter, and a copy of such report shall be filed with the board of
    48  supervisors.
    49    §  1149-s.  Environmental  applications,  proceedings,  approvals  and
    50  permits. Any application in relation to the purposes of or  contemplated
    51  by  this title heretofore filed, or any proceeding heretofore commenced,
    52  by the county or any agency thereof with the department of environmental
    53  conservation, the department of transportation or any other state agency
    54  or instrumentality or with the United  States  environmental  protection
    55  agency or any other federal agency or instrumentality shall inure to and
    56  for  the  benefit  of  the  authority to the same extent and in the same

        A. 9665                            18
     1  manner as if the authority had been  a  party  to  such  application  or
     2  proceeding from its inception, and the authority shall be deemed a party
     3  thereto,  to  the extent not prohibited by any federal law. Any license,
     4  approval,  permit  or decision heretofore or hereafter issued or granted
     5  pursuant to or as a result of any such application or  proceeding  shall
     6  inure  to  the benefit of and be binding upon the authority and shall be
     7  assigned and transferred by the county or  any  agency  thereof  to  the
     8  authority,  unless such assignment and transfer is prohibited by federal
     9  law.
    10    § 1149-t. Limited liability. Neither the members of the authority, nor
    11  any municipality, officer or employee acting in its behalf, while acting
    12  within the scope of their authority, shall be subject  to  any  personal
    13  liability  resulting  from the construction, maintenance or operation of
    14  any of the properties of the authority or from carrying out any  of  the
    15  powers  expressly  given  in  this  title;  provided, however, that this
    16  section shall not be held to apply to any independent contractor.
    17    § 1149-u. Governmental capacity of the authority  and  municipalities.
    18  The  authority, the county and the other municipalities, in carrying out
    19  their respective powers and duties under this title, shall be deemed  to
    20  be acting in a governmental capacity and in the performance of an essen-
    21  tial governmental function.
    22    §  1149-v. Separability clause. If any section, clause or provision in
    23  this title shall be held by a competent court to be unconstitutional  or
    24  ineffective  in whole or in part, to the extent that it is not unconsti-
    25  tutional or ineffective, it shall be valid and effective, and  no  other
    26  section,  clause or provision shall on account thereof be deemed invalid
    27  or ineffective.
    28    § 1149-w. Effect of inconsistent provisions. Insofar as the provisions
    29  of this title are inconsistent with the provisions of any other general,
    30  special or local law, or of any charter or any local law,  ordinance  or
    31  resolution  of  the county or other municipality, the provisions of this
    32  title shall be controlling, provided  that  nothing  contained  in  this
    33  section  shall  be  held to supplement or otherwise expand the powers or
    34  duties of the authority otherwise  set  forth  in  this  title.  Nothing
    35  contained in this title shall be held to alter or abridge the powers and
    36  duties of the department of environmental conservation or the department
    37  of health.
    38    § 2. This act shall take effect immediately.
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