§ 1196-c. Organization of authorities. 1. When an authority has been
established by special act of the legislature for the benefit of a
single sponsoring municipality, upon such establishment the governing
body of such municipality shall file within one year after the effective
date of such special act, in the office of the secretary of state, a
certificate setting forth (a) the date of passage of such special act;
(b) the name of the authority; (c) the names of the members and their
terms of office, specifying which member is the chairman; and (d) the
bounds of the district established by local law in which the authority
will deliver water to or transport sewage from the ultimate consumers or
dischargers thereof, provided, however, that unless otherwise provided
in such special act no such district may encompass any area contained
within another district established under this title or within any other
water authority district created by this chapter. Should such district
include all or any portion of a municipality or municipalities other
than the sponsoring municipality, such certificate shall be accompanied
by a copy of the intermunicipal contract or contracts under which the
authority will provide services within such other municipality or
municipalities, together with copies of the local law approving same.
Any changes in the bounds of such districts or to such contracts shall
be similarly filed within thirty days thereof.

2. Where an authority has been established by special act of the
legislature for the benefit of more than one sponsoring municipality,
upon such establishment the governing body of each such municipality
shall file within one year after the effective date of such special act,
in the office of the secretary of state, a certificate setting forth (a)
the date of passage of such special act; (b) the name of the authority;
(c) the name or names of the member or members appointed by such
governing body and their terms of office; and (d) the bounds of that
portion of the district established by local law within the applicable
municipality in which the authority will deliver water to or transport
sewage from the ultimate consumers or dischargers thereof, provided,
however, that unless otherwise provided by such special act no such
portion may encompass any area contained within another district
established under this title or within any other water district created
by this chapter. Each such certificate shall be accompanied by a copy of
the local law establishing such portion of the district and by a copy of
the intermunicipal agreement under which membership on the authority is
apportioned among the sponsoring municipalities and a copy of the local
law approving same.

3. An authority shall be deemed to be and shall be in existence upon
the satisfactory filing and receipt of the certificate or certificates
required by subdivision one or two hereof. An authority and its
corporate existence shall continue until terminated by law; provided,
however, that no such law shall take effect so long as the agency shall
have bonds or other obligations outstanding unless adequate provision
has been made for the payment or satisfaction thereof. Upon termination
of the existence of the authority, all of the rights and properties of
the authority then remaining shall pass to and vest in the sponsoring
municipality or municipalities, as the case may be.

4. An authority shall be a corporate governmental agency constituting
a public benefit corporation. Except as otherwise provided by special
act of the legislature where there is more than one sponsoring
municipality, an authority shall consist of not less than three nor more
than five members. Such members shall be appointed and the chairman
designated by the governing body of the sponsoring municipality,
provided that where there is more than one sponsoring municipality, the
apportionment of members between or among the sponsoring municipalities
and the manner of selection of a chairman shall be determined by
intermunicipal agreement. Members shall serve at the pleasure of the
appointing municipality, and each member shall continue to hold office
until his successor is appointed and has qualified. The governing body
shall file with the secretary of state a certificate of appointment or
reappointment of any member appointed or reappointed by it. Members
shall receive no compensation for their services but shall be entitled
to reimbursement of the necessary expenses, including traveling
expenses, incurred in the discharge of their duties.

5. No action shall be taken by an authority except pursuant to the
favorable vote of a majority of the members then in office.

6. Any one or more of the members of an authority may be an official
or an employee of a sponsoring municipality. In the event that an
official or an employee of such municipality shall be appointed as a
member of the agency, acceptance or retention of such appointment shall
not be deemed a forfeiture of his municipal office or employment, or
incompatible therewith or affect his tenure or compensation in any way.
The term of office of a member of an authority who is an official or an
employee of such municipality when appointed as a member thereof by
special act of the legislature creating the authority shall terminate at
the expiration of the term of his municipal office.

7. In addition to any powers granted to it by law, the governing body
of the sponsoring municipality or municipalities, from time to time, may
appropriate by resolution sums of money to defray project costs or any
other costs and expenses of the authority. Subject to the rights of
bondholders, the governing body may determine if the moneys so
appropriated shall be subject to repayment by the authority to the
municipality or municipalities, and in such event, the manner and time
or times for such repayment.

8. It is hereby determined and declared that an authority and the
carrying out of its powers, purposes and duties are in all respects for
the benefit of the people of the sponsoring municipality or
municipalities and the state, for the improvement of their health,
welfare and prosperity and that the said purposes are public purposes
and that an authority is and will be performing an essential
governmental function in the exercise of the powers conferred upon it by
this title.