S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5527
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 10, 2021
                                ___________
 
 Introduced  by  Sen.  BROOKS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN  ACT to amend the public authorities law, in relation to establishing
   the South Nassau water authority
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Article  5  of  the  public authorities law is amended by
 adding a new title 5-A to read as follows:
                                 TITLE 5-A
                       SOUTH NASSAU WATER AUTHORITY
 SECTION 1114-A. SHORT TITLE.
         1114-B. DEFINITIONS.
         1114-C. SOUTH NASSAU WATER AUTHORITY DISTRICT.
         1114-D. SOUTH NASSAU WATER AUTHORITY.
         1114-E. POWERS OF THE AUTHORITY.
         1114-F. TRANSFER OF OFFICERS AND EMPLOYEES.
         1114-G. BONDS OF THE AUTHORITY.
         1114-H. REMEDIES OF BONDHOLDERS.
         1114-I. STATE AND MUNICIPALITIES NOT LIABLE ON AUTHORITY BONDS.
         1114-J. MONEYS OF THE AUTHORITY.
         1114-K. BONDS; LEGAL INVESTMENTS FOR FIDUCIARIES.
         1114-L. AGREEMENT WITH THE STATE.
         1114-M. EXEMPTION FROM  TAXES,  ASSESSMENTS  AND  CERTAIN  FEES;
                   PAYMENTS IN LIEU OF TAXES.
         1114-N. ACTIONS AGAINST THE AUTHORITY.
         1114-O. CONFLICTS  OF INTEREST OF MEMBERS OF THE BOARD OF DIREC-
                   TORS AND OFFICERS AND EMPLOYEES OF THE AUTHORITY.
         1114-P. CONSTRUCTION AND PURCHASE CONTRACTS.
         1114-Q. SEPARABILITY CLAUSE.
         1114-R. EFFECT OF INCONSISTENT PROVISIONS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09799-03-1

 S. 5527                             2
 
         1114-S. ACQUISITION BY EMINENT DOMAIN.
   § 1114-A. SHORT  TITLE.  THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS
 THE "SOUTH NASSAU WATER AUTHORITY ACT".
   § 1114-B. DEFINITIONS. AS USED OR REFERRED TO IN THIS TITLE, UNLESS  A
 DIFFERENT MEANING CLEARLY APPEARS FROM THE CONTEXT:
   1.  "AUTHORITY"  SHALL  MEAN THE CORPORATION CREATED BY SECTION ELEVEN
 HUNDRED FOURTEEN-D OF THIS TITLE.
   2. "BOARD OF DIRECTORS" SHALL MEAN THE GOVERNING BOARD OF THE AUTHORI-
 TY.
   3. "BONDS" SHALL MEAN THE BONDS, NOTES OR OTHER EVIDENCES  OF  INDEBT-
 EDNESS ISSUED BY THE AUTHORITY PURSUANT TO THIS TITLE.
   4.  "CALENDAR  YEAR"  SHALL  MEAN THE TWELVE MONTH PERIOD FROM JANUARY
 FIRST THROUGH DECEMBER THIRTY-FIRST.
   5. "CHIEF EXECUTIVE OFFICER" WHEN REFERRING TO  A  MUNICIPALITY  SHALL
 MEAN THE CHIEF ELECTED OFFICIAL OF SUCH MUNICIPALITY AND, WHEN REFERRING
 TO THE AUTHORITY, SHALL MEAN THE CHAIRPERSON OF THE AUTHORITY.
   6.  "CIVIL SERVICE COMMISSION" SHALL MEAN THE CIVIL SERVICE COMMISSION
 OF THE COUNTY OF NASSAU.
   7. "COMPTROLLER" SHALL MEAN THE COMPTROLLER OF THE STATE OF NEW YORK.
   8. "CONSTRUCTION" SHALL MEAN THE NEGOTIATION,  ACQUISITION,  ERECTION,
 BUILDING,   ALTERATION,  IMPROVEMENT,  TESTING,  INCREASE,  ENLARGEMENT,
 EXTENSION, RECONSTRUCTION, INTERCONNECTION, RENOVATION OR REHABILITATION
 OF A WATER FACILITY AS DEFINED  IN  THIS  SECTION;  THE  INSPECTION  AND
 SUPERVISION   THEREOF;   AND   THE  ENGINEERING,  ARCHITECTURAL,  LEGAL,
 APPRAISAL, FISCAL, ECONOMIC AND ENVIRONMENTAL  INVESTIGATIONS,  SERVICES
 AND  STUDIES, SURVEYS, DESIGNS, PLANS, WORKING DRAWINGS, SPECIFICATIONS,
 PROCEDURES AND OTHER ACTIONS INCIDENTAL THERETO.
   9. "COSTS", AS APPLIED TO ANY  PROJECT,  SHALL  INCLUDE  THE  COST  OF
 CONSTRUCTION,  THE  COST  OF  THE ACQUISITION OF ALL PROPERTY, INCLUDING
 BOTH REAL, PERSONAL AND MIXED, THE  COST  OF  DEMOLISHING,  REMOVING  OR
 RELOCATING  ANY  BUILDINGS  OR STRUCTURES ON LANDS SO ACQUIRED INCLUDING
 THE COST OF ACQUIRING ANY LAND TO WHICH SUCH BUILDINGS OR STRUCTURES MAY
 BE MOVED OR RELOCATED, THE COST OF ALL SYSTEMS,  FACILITIES,  MACHINERY,
 APPARATUS  AND  EQUIPMENT, FINANCING CHARGES AND BOND DISCOUNT, INTEREST
 TO THE EXTENT NOT PAID OR PROVIDED FOR FROM REVENUES OR  OTHER  SOURCES,
 THE  COST OF ENGINEERING AND ARCHITECTURAL SURVEYS, PLANS AND SPECIFICA-
 TIONS, BOND  INSURANCE,  BOND  CREDIT  ENHANCEMENT  ARRANGEMENTS,  OTHER
 EXPENSES NECESSARY OR INCIDENTAL TO THE CONSTRUCTION OF SUCH PROJECT AND
 THE  FINANCING  OF THE CONSTRUCTION THEREOF, INCLUDING THE COST OF LEGAL
 AND FINANCIAL ADVICES AND CREDIT ARRANGEMENTS WITH BANKS OR OTHER FINAN-
 CIAL INSTITUTIONS, THE  AMOUNT  AUTHORIZED  IN  THE  RESOLUTION  OF  THE
 AUTHORITY  PROVIDING  FOR  THE  ISSUANCE  OF  BONDS  TO BE PAID INTO ANY
 RESERVE OR SPECIAL FUND FROM THE PROCEEDS OF SUCH BONDS AND THE  FINANC-
 ING OF THE PLACING OF ANY PROJECT IN OPERATION, INCLUDING THE REIMBURSE-
 MENT  TO  ANY  MUNICIPALITY,  STATE AGENCY, THE STATE, THE UNITED STATES
 GOVERNMENT, OR ANY OTHER PERSON FOR EXPENDITURES MADE BY THEM THAT WOULD
 BE COSTS OF THE PROJECT HEREUNDER, NOTWITHSTANDING THE  FACT  THAT  SUCH
 EXPENDITURES  MAY HAVE BEEN INCURRED PRIOR TO THE EFFECTIVE DATE OF THIS
 TITLE.
   10. "COUNTY" SHALL MEAN THE COUNTY OF NASSAU.
   11. "DISTRIBUTION SYSTEM" SHALL MEAN THE WATER FACILITY OR  FACILITIES
 EMPLOYED  TO  DELIVER WATER FROM A TRANSMISSION FACILITY, OR WHERE THERE
 IS NO TRANSMISSION FACILITY, FROM A SUPPLY  FACILITY,  TO  THE  ULTIMATE
 CONSUMERS OF WATER.
   12.  "DISTRICT"  SHALL  MEAN THE WATER AUTHORITY OF SOUTH NASSAU WATER
 DISTRICT CREATED BY SECTION ELEVEN HUNDRED FOURTEEN-C OF THIS TITLE.

 S. 5527                             3
 
   13. "GOVERNING BODY" SHALL MEAN:
   (A)  IN THE CASE OF A CITY, COUNTY, TOWN OR VILLAGE OR DISTRICT CORPO-
 RATION, THE FINANCE BOARD AS SUCH TERM IS DEFINED IN THE  LOCAL  FINANCE
 LAW; OR
   (B) IN THE CASE OF A PUBLIC BENEFIT CORPORATION, THE MEMBERS THEREOF.
   14. "MEMBERS" SHALL MEAN THE MEMBERS OF THE BOARD OF DIRECTORS.
   15. "MUNICIPALITY" SHALL MEAN ANY CITY, COUNTY, TOWN, VILLAGE OR COUN-
 TY OR TOWN ACTING ON BEHALF OF AN IMPROVEMENT DISTRICT.
   16."REAL PROPERTY" SHALL MEAN LANDS, STRUCTURES, FRANCHISES AND INTER-
 ESTS IN LAND, WATERS, LANDS UNDER WATER, GROUNDWATER RIPARIAN RIGHTS AND
 AIR RIGHTS AND ANY AND ALL THINGS AND RIGHTS CUSTOMARILY INCLUDED WITHIN
 THE  TERM "REAL PROPERTY" AND INCLUDES NOT ONLY FEE SIMPLE ABSOLUTE, BUT
 ALSO ANY AND ALL LESSER INTERESTS INCLUDING, BUT NOT LIMITED  TO,  EASE-
 MENTS,  RIGHTS  OF WAY, USES, LEASES, LICENSES AND ALL OTHER INCORPOREAL
 HEREDITAMENTS AND EVERY ESTATE, INTEREST OR RIGHT, LEGAL  OR  EQUITABLE,
 INCLUDING  TERMS  FOR YEARS AND LIENS THEREON BY WAY OF JUDGMENTS, MORT-
 GAGES OR OTHERWISE.
   17. "STATE SANITARY CODE" SHALL MEAN REGULATIONS ADOPTED  PURSUANT  TO
 SECTION TWO HUNDRED TWENTY-FIVE OF THE PUBLIC HEALTH LAW.
   18. "STATE" SHALL MEAN THE STATE OF NEW YORK.
   19.  "STATE AGENCY" SHALL MEAN ANY STATE OFFICE, PUBLIC BENEFIT CORPO-
 RATION, DEPARTMENT, BOARD, COMMISSION,  BUREAU  OR  DIVISION,  OR  OTHER
 AGENCY OR INSTRUMENTALITY OF THE STATE.
   20.  "SUPPLY  FACILITY"  SHALL  MEAN A WATER FACILITY EMPLOYED TO MAKE
 GROUNDWATER OR SURFACE WATER AVAILABLE FOR DELIVERY INTO A  TRANSMISSION
 FACILITY OR DISTRIBUTION SYSTEM.
   21.  "SYSTEM  REVENUES"  SHALL  MEAN  ALL RATES, RENTS, FEES, CHARGES,
 PAYMENTS AND OTHER INCOME AND RECEIPTS DERIVED FROM USERS OF THE AUTHOR-
 ITY  WITHOUT  LIMITING  THE  GENERALITY  OF  THE  FOREGOING,  INVESTMENT
 PROCEEDS  AND PROCEEDS OF INSURANCE, CONDEMNATION, SALES OR OTHER DISPO-
 SITIONS OF ASSETS, TOGETHER WITH ALL FEDERAL, STATE OR MUNICIPAL AID  AS
 WELL AS ANY OTHER INCOME DERIVED FROM THE OPERATION OF THE WATER FACILI-
 TY OF THE AUTHORITY.
   22.  "TRANSMISSION FACILITY" SHALL MEAN A WATER FACILITY USED TO CARRY
 WATER FROM A SUPPLY FACILITY TO A DISTRIBUTION SYSTEM.
   23. "TREASURER" SHALL MEAN THE TREASURER OF THE AUTHORITY.
   24. "WATER FACILITY" OR "WATER  FACILITIES"  SHALL  MEAN  ANY  PLANTS,
 STRUCTURES  AND OTHER REAL AND PERSONAL PROPERTY ACQUIRED, REHABILITATED
 OR CONSTRUCTED FOR THE PURPOSE OF SUPPLYING, TRANSMITTING,  DISTRIBUTING
 OR  TREATING  WATER, INCLUDING BUT NOT LIMITED TO SURFACE OR GROUNDWATER
 RESERVOIRS, BASINS, DAMS, CANALS, AQUEDUCTS, STANDPIPES, CONDUITS, PIPE-
 LINES, MAINS, PUMPING STATIONS, WATER DISTRIBUTION SYSTEMS, COMPENSATING
 RESERVOIRS, INTAKE STATIONS, WATERWORKS  OR  SOURCES  OF  WATER  SUPPLY,
 WELLS,  PURIFICATION  OR FILTRATION PLANTS OR OTHER TREATMENT PLANTS AND
 WORKS, CONNECTIONS, WATER METERS, RIGHTS OF  FLOWAGE  OR  DIVERSION  AND
 OTHER  PLANTS,  STRUCTURES,  EQUIPMENT,  TOWERS,  CONVEYANCES,  REAL  OR
 PERSONAL PROPERTY OR RIGHTS THEREIN AND APPURTENANCES THERETO  NECESSARY
 OR  USEFUL  AND  CONVENIENT  FOR THE ACCUMULATION, SUPPLY, TRANSMISSION,
 TREATMENT OR DISTRIBUTION OF WATER.
   25. "WATER PROJECT" SHALL MEAN ANY WATER FACILITY, INCLUDING THE PLAN-
 NING, DEVELOPMENT, FINANCING OR CONSTRUCTION THEREOF.
   26. "WATERSHED RULES" SHALL MEAN THE RULES AND REGULATIONS MADE BY THE
 DEPARTMENT OF HEALTH PURSUANT TO SECTION ELEVEN HUNDRED  OF  THE  PUBLIC
 HEALTH LAW.
   § 1114-C. SOUTH  NASSAU  WATER  AUTHORITY DISTRICT. 1. THERE IS HEREBY
 CREATED A DISTRICT TO BE KNOWN AS  THE  "SOUTH  NASSAU  WATER  AUTHORITY

 S. 5527                             4
 
 DISTRICT"  WHICH  SHALL  BE DEFINED AS ALL THAT PORTION OF NASSAU COUNTY
 BEING SERVICED BY THE NEW YORK AMERICAN WATER SERVICE CORPORATION AS ITS
 LONG ISLAND WATER OPERATIONS DISTRICT AS OF THE EFFECTIVE DATE  OF  THIS
 TITLE,  AND  LYING  SOUTH  OF THE AREA SERVICED BY THE TOWN OF HEMPSTEAD
 DEPARTMENT OF WATER.
   § 1114-D. SOUTH NASSAU WATER AUTHORITY.  1.  A  CORPORATION  KNOWN  AS
 "SOUTH  NASSAU  WATER  AUTHORITY" IS HEREBY CREATED FOR THE PURPOSES AND
 CHARGED WITH THE DUTIES AND HAVING THE POWERS PROVIDED  IN  THIS  TITLE.
 THE  AUTHORITY  SHALL  BE A CORPORATE GOVERNMENTAL AGENCY CONSTITUTING A
 PUBLIC BENEFIT CORPORATION AND SHALL BE  A  "PUBLIC  DISTRICT"  FOR  THE
 PURPOSES OF SECTION EIGHTY-NINE OF THE PUBLIC SERVICE LAW. THE AUTHORITY
 SHALL  BE  GOVERNED  BY A BOARD OF DIRECTORS CONSISTING OF FIVE MEMBERS.
 THE GOVERNING BOARD  OF  THE  TOWN  OF  HEMPSTEAD  SHALL  APPOINT  THREE
 MEMBERS, AND THE NASSAU COUNTY LEGISLATURE SHALL APPOINT TWO MEMBERS WHO
 ARE  RESIDENTS  SERVICED  BY  THE WATER AUTHORITY OF SOUTH NASSAU.  EACH
 MEMBER SHALL SERVE FOR A PERIOD OF TWO YEARS. EACH CHIEF EXECUTIVE OFFI-
 CER SHALL FILE WITH THE SECRETARY OF STATE A CERTIFICATE OF  APPOINTMENT
 OR  REAPPOINTMENT  OF  ANY MEMBER APPOINTED OR REAPPOINTED BY SUCH CHIEF
 EXECUTIVE OFFICER WITHIN THIRTY DAYS OF THE  APPOINTMENT  OR  REAPPOINT-
 MENT. MEMBERS SHALL RECEIVE NO COMPENSATION FOR THEIR SERVICES BUT SHALL
 BE  ENTITLED  TO  REIMBURSEMENT  OF  THEIR NECESSARY EXPENSES, INCLUDING
 TRAVELING EXPENSES, INCURRED IN THE DISCHARGE OF THEIR DUTIES.   NOTHING
 IN THIS SECTION SHALL BE CONSTRUED AS PREVENTING A CHIEF EXECUTIVE OFFI-
 CER  OF A MUNICIPALITY FROM APPOINTING HIMSELF OR HERSELF TO BE A MEMBER
 OF THE BOARD OF DIRECTORS.
   2. IF THE AUTHORITY DECIDES TO ENTER INTO A CONTRACT  TO  PURCHASE  OR
 OTHERWISE  ACQUIRE  AN  INTEREST  IN THE NEW YORK AMERICAN WATER SERVICE
 CORPORATION OR TO INITIATE A CONDEMNATION  PROCEEDING  PURSUANT  TO  THE
 EMINENT  DOMAIN  PROCEDURE LAW FOR THE AREA IT SERVICES WITHIN THE SOUTH
 NASSAU WATER AUTHORITY DISTRICT, PRIOR TO ENTERING INTO ANY CONTRACT  TO
 PURCHASE OR OTHERWISE ACQUIRE AN INTEREST IN THE NEW YORK AMERICAN WATER
 SERVICE  CORPORATION OR THE INITIATION OF ANY CONDEMNATION PROCEEDING BY
 THE AUTHORITY PURSUANT TO THE EMINENT DOMAIN PROCEDURE LAW FOR THE  AREA
 IT  SERVICES  WITHIN  THE  SOUTH  NASSAU  WATER  AUTHORITY DISTRICT, THE
 AUTHORITY SHALL PROVIDE RATEPAYERS WITHIN THE AREA SERVICED BY  THE  NEW
 YORK  AMERICAN  WATER  SERVICE  CORPORATION  AND  THE PUBLIC WITH PUBLIC
 FORUMS FOR  THE  EXPRESSION  AND  DISCUSSION  OF  VIEWS  REGARDING  SUCH
 PURCHASE,  ACQUISITION  OR  CONDEMNATION  OF THE NEW YORK AMERICAN WATER
 SERVICE CORPORATION. THE AUTHORITY SHALL HOLD AT LEAST ONE FORUM IN  THE
 TOWN OF HEMPSTEAD.
   3.  IF  THE  AUTHORITY DECIDES TO ENTER INTO A CONTRACT TO PURCHASE OR
 OTHERWISE ACQUIRE AN INTEREST IN THE NEW  YORK  AMERICAN  WATER  SERVICE
 CORPORATION  OR  TO  INITIATE  A CONDEMNATION PROCEEDING PURSUANT TO THE
 EMINENT DOMAIN PROCEDURE LAW FOR THE AREA IT SERVICES WITHIN  THE  SOUTH
 NASSAU  WATER AUTHORITY DISTRICT, THE AUTHORITY IS AUTHORIZED TO PROVIDE
 REGISTERED VOTERS WITHIN THE AREA SERVICED  BY  THE  NEW  YORK  AMERICAN
 WATER  SERVICE  CORPORATION  WITHIN  THE  SOUTH  NASSAU  WATER AUTHORITY
 DISTRICT PRIOR TO ENTERING INTO SUCH CONTRACT TO PURCHASE  OR  OTHERWISE
 ACQUIRE  AN  INTEREST IN THE NEW YORK AMERICAN WATER SERVICE CORPORATION
 OR THE INITIATION OF ANY CONDEMNATION PROCEEDING BY THE AUTHORITY PURSU-
 ANT TO THE EMINENT DOMAIN PROCEDURE LAW FOR THE AREA THE NEW YORK AMERI-
 CAN WATER SERVICE CORPORATION SERVICES WITHIN  THE  SOUTH  NASSAU  WATER
 AUTHORITY  DISTRICT, WITH A NONBINDING REFERENDUM, REGARDING WHETHER THE
 AUTHORITY SHOULD ENTER INTO A CONTRACT TO PURCHASE OR OTHERWISE  ACQUIRE
 AN INTEREST IN THE NEW YORK AMERICAN WATER SERVICE CORPORATION OR INITI-
 ATE  CONDEMNATION  PROCEEDINGS  PURSUANT TO THE EMINENT DOMAIN PROCEDURE

 S. 5527                             5

 LAW FOR THE AREA IT SERVICES WITHIN THE  SOUTH  NASSAU  WATER  AUTHORITY
 DISTRICT.  THE  PROPOSITION SHALL BE PLACED ON THE BALLOT AND VOTED UPON
 AT A SPECIAL ELECTION ON A DATE TO BE DETERMINED BY  THE  NASSAU  COUNTY
 BOARD OF ELECTIONS.
   4.  ANY ONE OR MORE OF THE MEMBERS OF THE BOARD OF DIRECTORS MAY BE AN
 OFFICIAL OR AN EMPLOYEE OF A MUNICIPALITY SITUATED WITHIN THE  DISTRICT.
 IN  THE EVENT THAT AN OFFICIAL OR AN EMPLOYEE OF SUCH MUNICIPALITY SHALL
 BE ELECTED AS  A  MEMBER  OF  THE  BOARD  OF  DIRECTORS,  ACCEPTANCE  OR
 RETENTION OF SUCH APPOINTMENT SHALL NOT BE DEEMED A FORFEITURE OF HIS OR
 HER  MUNICIPAL OFFICE OR EMPLOYMENT, OR INCOMPATIBLE THEREWITH OR AFFECT
 HIS OR HER TENURE OR COMPENSATION IN ANY WAY.
   5. NO ACTION SHALL BE TAKEN BY THE AUTHORITY EXCEPT  PURSUANT  TO  THE
 FAVORABLE VOTE OF A SIMPLE MAJORITY OF THE BOARD OF DIRECTORS.
   6.  THE  POWERS OF THE AUTHORITY SHALL BE VESTED IN AND SHALL BE EXER-
 CISED BY THE BOARD OF DIRECTORS AT  A  MEETING  DULY  CALLED  AND  HELD.
 THREE  MEMBERS OF THE BOARD OF DIRECTORS, WHO TOGETHER ARE AUTHORIZED TO
 CAST A MAJORITY OF THE VOTE, SHALL CONSTITUTE A  QUORUM.  THE  BOARD  OF
 DIRECTORS  MAY DELEGATE TO ONE OR MORE OF ITS MEMBERS, OR TO ONE OR MORE
 OF THE OFFICERS, AGENTS OR EMPLOYEES OF THE AUTHORITY, SUCH  POWERS  AND
 DUTIES AS IT MAY DEEM PROPER.
   7.  THE OFFICERS OF THE AUTHORITY SHALL CONSIST OF A CHAIRPERSON, VICE
 CHAIRPERSON, DEPUTY CHAIRPERSON, TREASURER, AND SECRETARY, WHO SHALL NOT
 BE MEMBERS OF THE BOARD OF DIRECTORS.  THE  OFFICERS  OF  THE  AUTHORITY
 SHALL BE APPOINTED BY THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS MAY
 APPOINT  AND  AT  ITS PLEASURE REMOVE AN ATTORNEY AND AN ENGINEER, WHICH
 POSITIONS, IN ADDITION TO THE OFFICERS ABOVE  NAMED,  SHALL  BE  IN  THE
 EXEMPT  CLASS  OF  THE  CIVIL  SERVICE  AND SUCH ADDITIONAL OFFICERS AND
 EMPLOYEES AS IT MAY REQUIRE FOR THE PERFORMANCE OF ITS DUTIES,  FIX  AND
 DETERMINE  THEIR  QUALIFICATIONS,  DUTIES,  COMPENSATIONS  AND  TERMS OF
 OFFICE OR TENURE, SUBJECT TO THE PROVISIONS OF THE CIVIL SERVICE LAW  OF
 THE  STATE  AND SUCH RULES AS THE CIVIL SERVICE COMMISSION MAY ADOPT AND
 MAKE APPLICABLE TO THE AUTHORITY. THE AUTHORITY MAY ALSO  FROM  TIME  TO
 TIME  CONTRACT FOR EXPERT PROFESSIONAL SERVICES. THE DUTIES OF THE OFFI-
 CERS SHALL BE AS FOLLOWS:
   (A) CHAIRPERSON. THE CHAIRPERSON SHALL BE THE CHIEF EXECUTIVE  OFFICER
 OF  THE  AUTHORITY AND IT SHALL BE THE RESPONSIBILITY OF THE CHAIRPERSON
 TO:
   (I) PRESIDE AT ALL MEETINGS OF THE BOARD OF DIRECTORS AND OF THE OFFI-
 CERS;
   (II) MANAGE THE WATER FACILITY,  THE  TRANSMISSION  FACILITY  AND  THE
 DISTRIBUTION  SYSTEM  AND  TO  EFFECTUATE  THE DECISIONS OF THE BOARD OF
 DIRECTORS;
   (III) EXERCISE SUPERVISION  OVER  THE  CONDUCT  OF  THE  OFFICERS  AND
 EMPLOYEES OF THE AUTHORITY;
   (IV)  REPORT  ANNUALLY TO EACH CUSTOMER, EITHER BY MAIL OR BY PUBLICA-
 TION ONCE IN A NEWSPAPER HAVING GENERAL CIRCULATION WITHIN THE DISTRICT;
 SUCH REPORT SHALL INCLUDE BUT NOT BE LIMITED TO THE  FOLLOWING  INFORMA-
 TION:
   (1)  A  BRIEF  FINANCIAL  ACCOUNT  ON  OPERATIONS  OF THE WATER SYSTEM
 INCLUDING, BUT NOT LIMITED TO, WATER RATES,  TOTAL  REVENUES,  OPERATING
 AND MAINTENANCE EXPENSES, AND INTEREST ON BONDS AND NOTES;
   (2) THE POPULATION SERVED BY THE AUTHORITY;
   (3)  THE NUMBER OF WELLS, TOWERS AND OTHER STORAGE FACILITIES OPERATED
 BY THE AUTHORITY;

 S. 5527                             6
 
   (4) THE TOTAL PUMPAGE OF GROUNDWATER  INCLUDING  THE  AMOUNT  RECEIVED
 THROUGH  INTERDISTRICT  INTERCONNECTIONS  AND  THE ESTIMATED AMOUNT LOST
 FROM THE SYSTEM;
   (5)  THE SINGLE HIGHEST LEVEL FROM EACH WELL OF EACH SYNTHETIC ORGANIC
 CHEMICAL, NITRATE AND CHLORIDE CONSTITUENT TESTED FOR BY  THE  AUTHORITY
 AT  ANY  TIME  DURING THE YEAR WHICH EXCEEDS THE APPLICABLE COUNTY WATER
 QUALITY STANDARD OR GUIDELINE, THAT STANDARD OR GUIDELINE, THE  SITE  OF
 EACH  WELL AT WHICH EACH REPORTED CONSTITUENT WAS FOUND, AND THE DATE ON
 WHICH EACH REPORTED CONSTITUENT WAS ANALYZED;
   (6) THE HIGHEST LEVEL FROM EACH WELL OF EACH SYNTHETIC ORGANIC  CHEMI-
 CAL, NITRATE AND CHLORIDE CONSTITUENT TESTED FOR BY THE AUTHORITY AT ANY
 TIME  DURING  THE YEAR WHICH DOES NOT EXCEED THE APPLICABLE COUNTY WATER
 STANDARD OR GUIDELINE, BUT WHICH CONTAINS A LEVEL EQUAL  TO  OR  GREATER
 THAN  TWO-THIRDS  OF THE AMOUNT PERMITTED BEFORE EXCEEDING A STANDARD OR
 GUIDELINE, THAT STANDARD OR GUIDELINE, THE SITE OF EACH  WELL  AT  WHICH
 EACH  REPORTED CONSTITUENT WAS FOUND AND THE DATE ON WHICH EACH REPORTED
 CONSTITUENT WAS ANALYZED;
   (7) ONCE EVERY FIVE  YEARS,  THE  HIGHEST  LEVEL  OF  ANY  CONSTITUENT
 DISCOVERED  WITHIN  THE DISTRIBUTION SYSTEM WHICH CONTAINS A LEVEL EQUAL
 TO OR GREATER THAN TWO-THIRDS OF THE AMOUNT PERMITTED BEFORE EXCEEDING A
 STANDARD OR GUIDELINE, THAT STANDARD OR  GUIDELINE,  AND  THE  RESULTING
 ACTION TAKEN BY THE AUTHORITY;
   (8)  ANY WELL RESTRICTED, REMOVED FROM SERVICE OR OTHERWISE LIMITED IN
 ITS USE AND THE CAUSE FOR SUCH ACTION;
   (9) ANY ACTIONS TAKEN TO SECURE NEW SUPPLIES OR REPLACE LOST CAPACITY;
   (10) THE TYPES OF TREATMENT WHICH THE WATER RECEIVES  BEFORE  ENTERING
 THE DISTRIBUTION SYSTEM;
   (11)  ANY COMPLIANCE ACTIVITIES REQUIRED BY REGULATIONS OF THE DEPART-
 MENT OF ENVIRONMENTAL CONSERVATION OR THE DEPARTMENT OF  HEALTH  OR  ANY
 LOCAL HEALTH DEPARTMENT AND ANY INSTANCES OF NONCOMPLIANCE;
   (12)  THE PRESENT CONDITION OF THE DISTRIBUTION SYSTEM AND ANY SIGNIF-
 ICANT ACTIONS, AS DETERMINED BY THE AUTHORITY, TO  IMPROVE  OR  MAINTAIN
 THE SYSTEM;
   (13)  ANY  SPECIAL  PUBLIC  SERVICES THE AUTHORITY PROVIDES DURING THE
 YEAR; AND
   (14) INFORMATION ON WATER CONSERVATION MEASURES CUSTOMERS  CAN  IMPLE-
 MENT,  SUCH  AS,  BUT  NOT  LIMITED  TO, RETROFITTING PLUMBING FIXTURES,
 ALTERING IRRIGATION TIMING, USING IRRIGATION  SENSORS,  LEAK  DETECTION,
 PROPER  USE  OF  WATER-CONSUMING  APPLIANCES, DAILY CONSCIENTIOUS USE OF
 WATER AND ESTIMATED SAVINGS OF WATER, ENERGY, AND  MONEY,  FROM  USE  OF
 THESE MEASURES;
   (V) EXECUTE ALL CONTRACTS IN THE NAME OF THE AUTHORITY;
   (VI)  INSTITUTE, AT THE DIRECTION OF THE BOARD OF DIRECTORS, ALL CIVIL
 ACTIONS IN THE NAME OF THE AUTHORITY;
   (VII) PROVIDE FOR THE ENFORCEMENT OF ALL OF THE RULES AND  REGULATIONS
 OF THE AUTHORITY AND CAUSE ALL VIOLATIONS THEREOF TO BE PROSECUTED;
   (VIII)  SIGN  ORDERS  TO  PAY  CLAIMS  WHEN AUTHORIZED BY THE BOARD OF
 DIRECTORS;
   (IX) SIGN CHECKS IN THE ABSENCE OR INABILITY OF THE TREASURER OR DEPU-
 TY TREASURER, IF ANY, WHEN AUTHORIZED BY THE BOARD OF DIRECTORS;  AND  A
 CERTIFIED  COPY OF A RESOLUTION OF THE BOARD OF DIRECTORS TO THAT EFFECT
 SHALL BE NOTICE TO THE DEPOSITORY OF SUCH AUTHORIZATION;
   (X) APPOINT, SUBJECT TO THE APPROVAL OF THE BOARD OF DIRECTORS,  NONE-
 LECTED  OFFICERS,  COUNSEL,  ACCOUNTANTS,  AND OTHER FINANCIAL ADVISORS,
 ENGINEERS AND OTHER TECHNICAL ADVISORS;

 S. 5527                             7
 
   (XI) EMPLOY, PROMOTE AND DISCHARGE MANAGERS, SUPERVISORS  AND  EMPLOY-
 EES; AND
   (XII) TAKE ALL OTHER REASONABLE AND NECESSARY ACTIONS TO CARRY OUT HIS
 OR  HER  OFFICE  AS  THE CHIEF EXECUTIVE OF THE AUTHORITY. IF THE CHAIR-
 PERSON HAS NOT BEEN APPOINTED AS A MEMBER OF THE BOARD OF  DIRECTORS  OF
 THE AUTHORITY PURSUANT TO THIS SECTION, SUCH CHAIRPERSON SHALL BE DEEMED
 AN  EX  OFFICIO  MEMBER OF THE BOARD OF DIRECTORS. SUCH STATUS SHALL NOT
 CARRY WITH IT THE RIGHT TO VOTE ON MATTERS COMING BEFORE  THE  BOARD  OF
 DIRECTORS  NOR SHALL THE PRESENCE OF SUCH CHAIRPERSON BE COUNTED FOR THE
 PURPOSE OF DETERMINING A QUORUM.
   (B) VICE CHAIRPERSON. THE VICE CHAIRPERSON SHALL  PERFORM  ALL  DUTIES
 DELEGATED TO HIM OR HER BY THE CHAIRPERSON AND, IN THE ABSENCE OR DURING
 THE  DISABILITY  OF  THE  CHAIRPERSON, THE VICE CHAIRPERSON SHALL ACT AS
 CHAIRPERSON.
   (C) DEPUTY CHAIRPERSON.  THE  DEPUTY  CHAIRPERSON  SHALL  PERFORM  ALL
 DUTIES  DELEGATED  TO  HIM  OR HER BY THE CHAIRPERSON OR THE VICE CHAIR-
 PERSON.
   (D) SECRETARY. (I) THE SECRETARY SHALL BE  THE  RECORDING  AND  CORRE-
 SPONDING  OFFICER  OF  THE AUTHORITY AND THE CUSTODIAN OF THE RECORDS OF
 THE AUTHORITY.
   (II) THE SECRETARY SHALL PREPARE AND  SEND  REQUIRED  NOTICES  OF  ALL
 MEETINGS  WHEN  DIRECTED  TO  DO SO BY THE CHAIRPERSON OR BY THE WRITTEN
 REQUEST OF FOUR MEMBERS WHO HAVE SPECIFIED THE ISSUES TO BE DISCUSSED AT
 THE MEETING.
   (III) IN THE ABSENCE OR DISABILITY OF THE SECRETARY,  THE  CHAIRPERSON
 MAY APPOINT A TEMPORARY SECRETARY.
   (E)  TREASURER.  (I)  THE  TREASURER  SHALL HAVE CUSTODY OF ALL MONEYS
 BELONGING TO THE AUTHORITY AND KEEP ACCOUNTS OF ALL RECEIPTS AND EXPEND-
 ITURES IN CONFORMANCE WITH A UNIFORM SYSTEM OF ACCOUNTS  FORMULATED  AND
 PRESCRIBED  BY  THE  COMPTROLLER  PURSUANT  TO SECTION THIRTY-SIX OF THE
 GENERAL MUNICIPAL LAW.
   (II) THE TREASURER SHALL EXECUTE A BOND, CONDITIONED UPON THE FAITHFUL
 PERFORMANCE OF THE DUTIES OF HIS OR HER OFFICE, THE  AMOUNT  AND  SUFFI-
 CIENCY  OF  WHICH  SHALL  BE  APPROVED BY THE BOARD OF DIRECTORS AND THE
 PREMIUM THEREFOR SHALL BE PAID BY THE AUTHORITY.
   (III) THE TREASURER SHALL DEPOSIT, WITHIN TEN DAYS AFTER RECEIPT THER-
 EOF, IN THE NAME OF THE AUTHORITY, IN ONE OR MORE  BANKS,  AND/OR  TRUST
 COMPANIES,  DESIGNATED BY THE BOARD OF DIRECTORS, ALL MONEYS RECEIVED BY
 HIM OR HER.
   (IV) THE TREASURER MAY SIGN CHECKS WITH THE FACSIMILE SIGNATURE OF THE
 TREASURER, AS REPRODUCED BY A MACHINE OR  DEVICE  COMMONLY  KNOWN  AS  A
 CHECKSIGNER, WHEN AUTHORIZED BY THE BOARD OF DIRECTORS.
   (V)  THE  TREASURER  SHALL  PAY OUT MONEYS FROM THE AUTHORITY TREASURY
 ONLY AS AUTHORIZED BY THE BOARD  OF  DIRECTORS  AND  BY  LAW.  ALL  SUCH
 PAYMENTS,  EXCEPT  AS  MAY BE AUTHORIZED BY THE BOARD OF DIRECTORS FOR A
 PETTY CASH ACCOUNT, SHALL BE BY CHECK.
   (VI) THE TREASURER SHALL ISSUE A REPORT ON THE FINANCES OF THE AUTHOR-
 ITY AT EACH REGULAR MEETING OF THE BOARD OF DIRECTORS.
   (VII) THE TREASURER SHALL FILE IN THE OFFICE OF THE AUTHORITY,  WITHIN
 SIXTY  DAYS  AFTER  THE  END  OF THE FISCAL YEAR, A STATEMENT SHOWING IN
 DETAIL ALL REVENUES AND EXPENDITURES DURING THE PREVIOUS FISCAL YEAR AND
 THE OUTSTANDING INDEBTEDNESS OF THE AUTHORITY  AS  OF  THE  END  OF  THE
 FISCAL  YEAR.  THE MEMBERS SHALL, WITHIN TEN DAYS, CAUSE TO BE PUBLISHED
 ONCE IN A NEWSPAPER HAVING GENERAL CIRCULATION WITHIN  THE  DISTRICT,  A
 NOTICE  THAT THE ANNUAL FINANCIAL STATEMENT HAS BEEN FILED AND IS AVAIL-
 ABLE FOR INSPECTION OR A SUMMARY OF SUCH STATEMENT IN A FORM APPROVED BY

 S. 5527                             8
 
 THE COMPTROLLER, WITH AN ENDORSEMENT THEREON THAT DETAILS THEREOF ARE ON
 FILE IN THE OFFICE OF THE AUTHORITY.  THE  MEMBERS  SHALL  CAUSE  TO  BE
 AUDITED  BY A CERTIFIED PUBLIC ACCOUNTANT ENGAGED FOR THAT PURPOSE, SUCH
 REPORT AND SUPPORTING RECORDS.
   8.  THE  TERMS  OF THE CHAIRPERSON, VICE CHAIRPERSON AND DEPUTY CHAIR-
 PERSON  FIRST  APPOINTED  SHALL  BE  STAGGERED,  THE  CHAIRPERSON  FIRST
 APPOINTED  SHALL  SERVE FOR A PERIOD OF FOUR YEARS, THE VICE CHAIRPERSON
 FIRST APPOINTED SHALL SERVE FOR A PERIOD OF THREE YEARS AND  THE  DEPUTY
 CHAIRPERSON FIRST APPOINTED SHALL SERVE FOR A PERIOD OF TWO YEARS; THER-
 EAFTER THEIR SUCCESSORS SHALL SERVE FOR TERMS OF FOUR YEARS. THE REMAIN-
 ING  OFFICERS SHALL EACH SERVE TERMS OF ONE YEAR. THE BOARD OF DIRECTORS
 SHALL HAVE THE RIGHT, AT ANY TIME, TO EXTEND ANY SUCH TERM, FOR A PERIOD
 OF MONTHS, TO PROVIDE THAT SUCH TERM TERMINATES  CONTEMPORANEOUSLY  WITH
 THE END OF THE FISCAL YEAR OF THE AUTHORITY.
   9.  THE  OFFICERS OF THE AUTHORITY SHALL RECEIVE SUCH COMPENSATION FOR
 THEIR SERVICES AS SHALL BE FIXED BY THE BOARD OF DIRECTORS AND SHALL  BE
 REIMBURSED  FOR ALL NECESSARY AND ACTUAL EXPENSES INCURRED IN CONNECTION
 WITH THEIR DUTIES AS SUCH OFFICERS AND IN CONNECTION WITH  THE  CARRYING
 OUT OF THE PURPOSES OF THIS TITLE.
   10.  THE  AUTHORITY  AND  ITS CORPORATE EXISTENCE SHALL CONTINUE UNTIL
 TERMINATED BY LAW; PROVIDED, HOWEVER, THAT NO SUCH LAW SHALL TAKE EFFECT
 SO LONG AS THE AUTHORITY SHALL HAVE BONDS OR OTHER OBLIGATIONS OUTSTAND-
 ING UNLESS ADEQUATE PROVISION HAS BEEN MADE FOR THE PAYMENT OR SATISFAC-
 TION 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 MUNICIPALITIES WITHIN THE DISTRICT. SUCH PROPERTY SHALL
 BE APPORTIONED AND  DISTRIBUTED  AMONG  THE  MUNICIPALITIES  WITHIN  THE
 DISTRICT  IN DIRECT PROPORTION TO THEIR VOTING ON THE DATE OF THE TERMI-
 NATION OF THE AUTHORITY.
   11. IN ADDITION TO ANY POWERS GRANTED TO IT BY LAW, THE GOVERNING BODY
 OF EACH OF THE MUNICIPALITIES WITHIN THE DISTRICT, FROM  TIME  TO  TIME,
 MAY APPROPRIATE SUMS OF MONEY TO DEFRAY PROJECT COSTS OR ANY OTHER COSTS
 AND  EXPENSES  OF  THE  AUTHORITY. SUBJECT TO THE RIGHTS OF BONDHOLDERS,
 EACH GOVERNING BODY MAY DETERMINE IF THE MONEYS SO APPROPRIATED SHALL BE
 SUBJECT TO REPAYMENT BY THE AUTHORITY TO THE MUNICIPALITIES, AND IN SUCH
 EVENT, THE MANNER AND TIME OR TIMES FOR SUCH REPAYMENT.
   12. NEITHER THE PUBLIC SERVICE  COMMISSION  NOR  ANY  OTHER  BOARD  OR
 COMMISSION OF LIKE CHARACTER, SHALL HAVE JURISDICTION OVER THE AUTHORITY
 IN  THE  MANAGEMENT  AND  CONTROL OF ITS PROPERTIES OR OPERATIONS OR ANY
 POWER OVER THE REGULATION OF RATES FIXED OR  CHARGES  COLLECTED  BY  THE
 AUTHORITY.
   13.  IT  IS  HEREBY DETERMINED AND DECLARED THAT THE AUTHORITY AND THE
 CARRYING OUT OF ITS POWERS, PURPOSES AND DUTIES ARE IN ALL RESPECTS  FOR
 THE  BENEFIT OF THE PEOPLE OF THE MUNICIPALITIES WITHIN THE DISTRICT AND
 STATE, FOR THE IMPROVEMENT OF THEIR HEALTH, WELFARE AND  PROSPERITY  AND
 THAT THE SAID PURPOSES ARE PUBLIC PURPOSES AND THAT THE AUTHORITY IS AND
 WILL BE PERFORMING AN ESSENTIAL GOVERNMENTAL FUNCTION IN THE EXERCISE OF
 THE POWERS CONFERRED UPON IT BY THIS TITLE.
   § 1114-E. POWERS OF THE AUTHORITY. EXCEPT AS OTHERWISE LIMITED BY THIS
 TITLE, THE AUTHORITY SHALL HAVE THE POWER TO:
   1. SUE AND BE SUED;
   2. HAVE A SEAL AND ALTER THE SAME AT PLEASURE;
   3.  BORROW  MONEY AND ISSUE NEGOTIABLE OR NON-NEGOTIABLE NOTES, BONDS,
 OR OTHER OBLIGATIONS AND TO PROVIDE FOR THE RIGHTS OF THE HOLDERS THERE-
 OF;

 S. 5527                             9

   4. ENTER INTO CONTRACTS  AND  EXECUTE  ALL  INSTRUMENTS  NECESSARY  OR
 CONVENIENT  OR  DESIRABLE FOR THE PURPOSES OF THE AUTHORITY TO CARRY OUT
 ANY POWERS EXPRESSLY GIVEN TO IT IN THIS TITLE;
   5.  ACQUIRE,  BY PURCHASE, GIFT, GRANT, TRANSFER, CONTRACT OR LEASE OR
 BY CONDEMNATION PURSUANT TO THE EMINENT DOMAIN PROCEDURE LAW,  LEASE  AS
 LESSEE, HOLD AND USE AND TO SELL, LEASE AS LESSOR, TRANSFER OR OTHERWISE
 DISPOSE OF, ANY REAL OR PERSONAL PROPERTY OR ANY INTEREST THEREIN, WITH-
 IN  OR  WITHOUT  THE  DISTRICT, BUT WITHIN THE TERRITORIAL LIMITS OF THE
 TOWN OF HEMPSTEAD, AS THE AUTHORITY MAY DEEM  NECESSARY,  CONVENIENT  OR
 DESIRABLE  TO  CARRY  OUT  THE PURPOSE OF THIS TITLE; PROVIDED, HOWEVER,
 THAT THE AUTHORITY MAY NOT CONDEMN REAL PROPERTY OF A MUNICIPALITY WITH-
 OUT THE CONSENT OF THE GOVERNING BODY OF SUCH MUNICIPALITY;
   6. PURCHASE, IN THE NAME OF THE AUTHORITY, ANY  WATER  SUPPLY  SYSTEM,
 INCLUDING PLANTS, WORKS, INSTRUMENTALITIES OR PARTS THEREOF AND APPURTE-
 NANCES  THERETO,  LANDS,  EASEMENTS,  RIGHTS  IN  LAND AND WATER RIGHTS,
 RIGHTS-OF-WAY,  CONTRACT  RIGHTS,   FRANCHISES,   PERMITS,   APPROACHES,
 CONNECTIONS, DAMS, WELLS, PUMPS, RESERVOIRS, WATER MAINS AND PIPE LINES,
 PUMPING STATIONS, TREATMENT FACILITIES, METERS, EQUIPMENT AND INVENTORY,
 OR  ANY OTHER PROPERTY INCIDENTAL TO AND INCLUDED IN SUCH SYSTEM OR PART
 THEREOF, AND ANY  IMPROVEMENTS,  EXTENSIONS  AND  BETTERMENTS,  SITUATED
 WHOLLY  WITHIN THE DISTRICT, PROVIDED, HOWEVER, THAT THE AUTHORITY SHALL
 HAVE THE POWER TO PURCHASE ANY SOURCE OF SUPPLY, OR WATER SUPPLY  SYSTEM
 OR  ANY  PART  THEREOF SITUATED WHOLLY OR PARTLY WITHOUT THE TERRITORIAL
 LIMITS OF THE DISTRICT, PROVIDED SAME SHALL BE  NECESSARY  IN  ORDER  TO
 SUPPLY  WATER WITHIN THE DISTRICT AND IN CONNECTION WITH THE PURCHASE OF
 SUCH PROPERTIES THE AUTHORITY MAY ASSUME ANY OBLIGATIONS OF THE OWNER OF
 SUCH PROPERTIES AND, TO THE EXTENT REQUIRED BY THE TERMS OF  ANY  INDEN-
 TURES OR OTHER INSTRUMENTS UNDER WHICH SUCH OBLIGATIONS WERE ISSUED, THE
 AUTHORITY  MAY  ASSUME  AND  AGREE  TO PERFORM COVENANTS AND OBSERVE THE
 RESTRICTIONS CONTAINED IN SUCH INSTRUMENTS; AND FURTHERMORE THE OWNER OF
 ANY PROPERTIES, WHICH THE AUTHORITY IS AUTHORIZED TO ACQUIRE, IS  HEREBY
 AUTHORIZED  TO  SELL  OR  OTHERWISE  TRANSFER THE SAME TO THE AUTHORITY,
 WHEREUPON THE AUTHORITY SHALL BECOME CHARGED WITH THE PERFORMANCE OF ALL
 PUBLIC DUTIES WITH RESPECT TO SUCH PROPERTIES WITH WHICH SUCH OWNER  WAS
 CHARGED  AND  SUCH  OWNER  SHALL  BECOME DISCHARGED FROM THE PERFORMANCE
 THEREOF, AS A MEANS OF SO ACQUIRING FOR SUCH PURPOSE, THE AUTHORITY  MAY
 PURCHASE  ALL  OF THE STOCK OF ANY EXISTING PRIVATELY OWNED WATER CORPO-
 RATION OR COMPANY AND IN THE CASE OF A SALE OR OTHER TRANSFER OF PROPER-
 TIES OF A PUBLIC UTILITY CORPORATION PURSUANT TO  THIS  PROVISION,  UPON
 THE  PURCHASE  OF  THE  STOCK OF SUCH CORPORATION OR COMPANY IT SHALL BE
 LAWFUL TO DISSOLVE SUCH CORPORATION WITHIN A REASONABLE TIME;
   7. CONSTRUCT, IMPROVE OR REHABILITATE WATER SUPPLY FACILITIES REQUIRED
 FOR THE MAINTENANCE, DEVELOPMENT OR EXPANSION OF WATER SUPPLY SOURCES;
   8. OPERATE AND MANAGE AND TO CONTRACT FOR THE OPERATION AND MANAGEMENT
 OF FACILITIES OF THE AUTHORITY;
   9. ENTER INTO CONTRACTS, AND CARRY OUT  THE  TERMS  THEREOF,  FOR  THE
 WHOLESALE  PROVISION  OF WATER PRODUCED BY SUPPLY FACILITIES CONSTRUCTED
 AND OPERATED BY THE  AUTHORITY,  TO  MUNICIPALITIES  AND  PRIVATE  WATER
 COMPANIES  AND  TO  CARRY OUT THE TERMS THEREOF, FOR THE TRANSMISSION OF
 WATER FROM NEW OR EXISTING SUPPLY FACILITIES;
   10. APPLY TO THE APPROPRIATE AGENCIES AND OFFICIALS  OF  THE  FEDERAL,
 STATE  AND  LOCAL GOVERNMENTS FOR SUCH LICENSES, PERMITS OR APPROVALS OF
 ITS PLANS OR PROJECTS AS IT MAY DEEM NECESSARY OR  ADVISABLE,  AND  UPON
 SUCH  TERMS AND CONDITIONS AS IT MAY DEEM APPROPRIATE, TO ACCEPT, IN ITS
 DISCRETION, SUCH LICENSES, PERMITS OR APPROVALS AS MAY BE TENDERED TO IT
 BY SUCH AGENCIES AND OFFICIALS;

 S. 5527                            10
 
   11. TAKE ALL NECESSARY AND REASONABLE ACTIONS WITHIN THE  DISTRICT  TO
 CONSERVE, PRESERVE AND PROTECT THE WATER SUPPLY TO THE DISTRICT, INCLUD-
 ING THE MAKING OF PLANS AND STUDIES, THE ADOPTION OF WATERSHED RULES AND
 REGULATIONS,  THE  ENFORCING  OF  COMPLIANCE WITH ALL CURRENT AND FUTURE
 RULES  AND  REGULATIONS  OF THE STATE SANITARY CODE WITH REGARD TO WATER
 SUPPLY AND  USAGE,  THE  REQUIRING  OF  CROSS-CONNECTION  CONTROLS,  THE
 PROVIDING  OF  EDUCATIONAL  MATERIAL AND PROGRAMS TO THE PUBLIC, AND THE
 COOPERATING WITH WATER  SUPPLIERS  OUTSIDE  THE  DISTRICT  TO  CONSERVE,
 PRESERVE  AND  PROTECT THE ENTIRE WATER RESERVE AS IT IS AFFECTED WITHIN
 AND OUTSIDE THE AUTHORITY'S SUPPLY AREA;
   12. RETAIN OR EMPLOY COUNSEL, AUDITORS, ENGINEERS AND PRIVATE CONSULT-
 ANTS ON A CONTRACT BASIS OR  OTHERWISE  FOR  RENDERING  PROFESSIONAL  OR
 TECHNICAL SERVICES AND ADVICE;
   13.  MAKE PLANS AND STUDIES NECESSARY, CONVENIENT OR DESIRABLE FOR THE
 EFFECTUATION OF THE PURPOSES AND POWERS OF THE AUTHORITY AND TO  PREPARE
 RECOMMENDATIONS IN REGARD THERETO;
   14. PREPARE A WATER SUPPLY EMERGENCY PLAN WHICH SHALL INCLUDE, BUT NOT
 BE LIMITED TO, THE FOLLOWING:
   (A)  ESTABLISHMENT  OF  CRITERIA  AND PROCEDURES TO DETERMINE CRITICAL
 WATER LEVELS OR SAFE YIELD OF SYSTEM;
   (B) IDENTIFICATION OF EXISTING  AND  FUTURE  SOURCES  OF  WATER  UNDER
 NORMAL CONDITIONS AND EMERGENCY CONDITIONS;
   (C)  SYSTEM  CAPACITY  AND  ABILITY TO MEET PEAK DEMAND AND FIRE FLOWS
 CONCURRENTLY;
   (D) STORAGE CAPACITIES;
   (E) CURRENT CONDITION OF PRESENT INTERCONNECTIONS  AND  IDENTIFICATION
 OF ADDITIONAL INTERCONNECTIONS TO MEET A WATER SUPPLY EMERGENCY;
   (F)  A SPECIFIC ACTION PLAN TO BE FOLLOWED DURING A WATER SUPPLY EMER-
 GENCY INCLUDING A PHASED IMPLEMENTATION OF THE PLAN;
   (G) GENERAL WATER CONSERVATION PROGRAMS AND WATER USE REDUCTION STRAT-
 EGIES FOR WATER SUPPLY USERS;
   (H) PRIORITIZATION OF WATER USERS;
   (I) IDENTIFICATION AND  AVAILABILITY  OF  EMERGENCY  EQUIPMENT  NEEDED
 DURING A WATER SUPPLY EMERGENCY; AND
   (J)  A  PUBLIC NOTIFICATION PROGRAM COORDINATED WITH THE PHASED IMPLE-
 MENTATION SCHEDULE; SUCH PLAN SHALL NOT BE ADOPTED UNTIL A PUBLIC  HEAR-
 ING ON SUCH PLAN SHALL HAVE BEEN HELD, UPON NOT LESS THAN FOURTEEN DAYS'
 NOTICE  THEREOF  TO EACH CUSTOMER, EITHER BY MAIL OR BY PUBLICATION ONCE
 IN A NEWSPAPER HAVING GENERAL CIRCULATION  WITHIN  THE  DISTRICT;  EVERY
 FIVE YEARS, SUCH PLAN SHALL BE REVIEWED AND REVISED IF NECESSARY AFTER A
 PUBLIC HEARING, WITH NOTICE TO EACH CUSTOMER AS AFORESAID;
   15.  ENTER  UPON SUCH LANDS, WATERS, OR PREMISES AS IN THE JUDGMENT OF
 THE AUTHORITY SHALL BE NECESSARY FOR  THE  PURPOSE  OF  MAKING  SURVEYS,
 SOUNDINGS, BORINGS AND EXAMINATIONS TO ACCOMPLISH ANY PURPOSE AUTHORIZED
 BY THIS TITLE, THE AUTHORITY BEING LIABLE ONLY FOR ACTUAL DAMAGE DONE;
   16.  APPLY  FOR AND TO ACCEPT ANY GIFTS OR GRANTS OR LOANS OF FUNDS OR
 PROPERTY OR FINANCIAL OR OTHER AID IN ANY FORM FROM THE FEDERAL  GOVERN-
 MENT  OR ANY AGENCY OR INSTRUMENTALITY THEREOF, OR FROM THE STATE OR ANY
 AGENCY OR INSTRUMENTALITY THEREOF, OR FROM ANY OTHER SOURCE, FOR ANY  OR
 ALL  OF  THE PURPOSES SPECIFIED IN THIS TITLE, AND TO COMPLY, SUBJECT TO
 THE PROVISIONS OF THIS TITLE, WITH THE TERMS AND CONDITIONS THEREOF;
   17. OBTAIN, STORE, TREAT, DISTRIBUTE, SUPPLY AND SELL WATER FOR DOMES-
 TIC, COMMERCIAL AND PUBLIC PURPOSES AT RETAIL  TO  INDIVIDUAL  CONSUMERS
 WITHIN THE DISTRICT;
   18.   PURCHASE  WATER  FROM  ANY  MUNICIPAL  CORPORATION,  TOWN  WATER
 DISTRICT, PERSON, ASSOCIATION OR CORPORATION;

 S. 5527                            11
 
   19. PRODUCE, DEVELOP, DISTRIBUTE AND  SELL  WATER  OR  WATER  SERVICES
 WITHIN  OR  WITHOUT  THE  TERRITORIAL  LIMITS OF THE DISTRICT; PROVIDED,
 HOWEVER, THAT WATER MAY BE SOLD AT RETAIL TO INDIVIDUAL  CONSUMERS  ONLY
 WITHIN  THE  DISTRICT AND FURTHER PROVIDED THAT IN EXERCISING THE POWERS
 GRANTED  BY  THIS  TITLE, THE AUTHORITY SHALL NOT SELL WATER IN ANY AREA
 WHICH IS SERVED BY A WATER SYSTEM OWNED OR OPERATED BY A MUNICIPALITY OR
 SPECIAL IMPROVEMENT DISTRICT UNLESS THE GOVERNING BODY OF  SUCH  MUNICI-
 PALITY  OR DISTRICT SHALL ADOPT A RESOLUTION REQUESTING THE AUTHORITY TO
 SELL WATER IN SUCH SERVED AREAS;
   20. MAKE BYLAWS FOR THE MANAGEMENT AND REGULATION OF ITS  AFFAIRS  AND
 RULES  AND REGULATIONS FOR THE CONSERVATION, PRESERVATION AND PROTECTION
 OF THE AUTHORITY'S WATER SUPPLY AND, SUBJECT TO  AGREEMENTS  WITH  BOND-
 HOLDERS,  RULES  FOR  THE  SALE OF WATER AND THE COLLECTION OF RENTS AND
 CHARGES THEREFOR. A COPY OF SUCH RULES, REGULATIONS AND BYLAWS  AND  ANY
 RULES  AND  REGULATIONS  ADOPTED  PURSUANT TO SUBDIVISION ELEVEN OF THIS
 SECTION, AND ALL AMENDMENTS THERETO, DULY CERTIFIED BY THE SECRETARY  OF
 THE  AUTHORITY SHALL BE FILED IN THE OFFICE OF THE MUNICIPALITIES WITHIN
 THE DISTRICT AND THEREAFTER PUBLISHED ONCE IN A NEWSPAPER HAVING GENERAL
 CIRCULATION WITHIN THE DISTRICT. VIOLATIONS  OF  SUCH  RULES  AND  REGU-
 LATIONS  SHALL BE PUNISHABLE BY FINE, NOT EXCEEDING FIFTY DOLLARS, OR BY
 IMPRISONMENT FOR NOT LONGER THAN THIRTY DAYS, OR BOTH;
   21. FIX RATES AND COLLECT CHARGES FOR THE USE OF THE FACILITIES OF, OR
 SERVICES RENDERED BY, OR ANY COMMODITIES FURNISHED BY THE AUTHORITY SUCH
 AS TO PROVIDE REVENUES SUFFICIENT AT ALL TIMES TO PAY, AS THE SAME SHALL
 BECOME DUE, THE PRINCIPAL AND INTEREST ON  THE  BONDS,  OR  OTHER  OBLI-
 GATIONS  OF  THE  AUTHORITY  TOGETHER  WITH  THE  MAINTENANCE  OF PROPER
 RESERVES THEREFOR, IN ADDITION TO PAYING AS THE SAME SHALL  BECOME  DUE,
 THE EXPENSE OF OPERATING AND MAINTAINING THE PROPERTIES OF THE AUTHORITY
 TOGETHER  WITH  PROPER  MAINTENANCE  RESERVES,  CAPITAL RESERVES, REPAIR
 RESERVES, TAX STABILIZATION RESERVES AND OTHER CONTINGENCY RESERVES, AND
 ALL OTHER OBLIGATIONS AND INDEBTEDNESS OF  THE  AUTHORITY;  HOWEVER,  NO
 SUCH  RATES  OR  CHARGES SHALL BE CHANGED UNTIL A PUBLIC HEARING ON SUCH
 CHANGES SHALL HAVE BEEN HELD UPON NOT LESS THAN  FOURTEEN  DAYS'  NOTICE
 THEREOF  TO  EACH  CUSTOMER,  EITHER BY MAIL OR BY PUBLICATION ONCE IN A
 NEWSPAPER HAVING GENERAL CIRCULATION WITHIN THE DISTRICT;
   22. ENTER INTO COOPERATIVE AGREEMENTS WITH OTHER AUTHORITIES,  MUNICI-
 PALITIES,  COUNTIES,  CITIES,  TOWNS, VILLAGES, WATER DISTRICTS, UTILITY
 COMPANIES, INDIVIDUALS, FIRMS OR CORPORATIONS,  WITHIN  OR  WITHOUT  THE
 TERRITORIAL  LIMITS  OF  THE DISTRICT FOR THE INTERCONNECTION OF FACILI-
 TIES, THE EXCHANGE OR  INTERCHANGE  OF  SERVICES  AND  COMMODITIES,  THE
 CONSERVATION,  PRESERVATION  AND  PROTECTION  OF  THE  AUTHORITY'S WATER
 RESERVE AS IT IS AFFECTED WITHIN  AND  OUTSIDE  THE  AUTHORITY'S  SUPPLY
 AREA,  AND, WITHIN THE TERRITORIAL LIMITS OF THE DISTRICT, TO ENTER INTO
 A CONTRACT FOR THE CONSTRUCTION, OPERATION AND MAINTENANCE  OF  A  WATER
 SUPPLY  AND  DISTRIBUTION  SYSTEM  BY THE AUTHORITY FOR ANY MUNICIPALITY
 HAVING POWER TO CONSTRUCT AND DEVELOP A WATER  SUPPLY  AND  DISTRIBUTION
 SYSTEM,  UPON  SUCH  TERMS  AND  CONDITIONS AS SHALL BE DETERMINED TO BE
 REASONABLE INCLUDING, BUT NOT LIMITED TO THE REIMBURSEMENT OF ALL  COSTS
 OF  SUCH  CONSTRUCTION,  OR  FOR  ANY OTHER LAWFUL PURPOSES NECESSARY OR
 DESIRABLE TO EFFECT THE PURPOSES OF THIS TITLE;
   23. PROVIDE FOR THE DISCONTINUANCE OR DISCONNECTION OF THE  SUPPLY  OF
 WATER  FOR  NONPAYMENT  OF  FEES, RATES, RENTS OR OTHER CHARGES THEREFOR
 IMPOSED BY THE AUTHORITY, PROVIDED SUCH DISCONTINUANCE OR  DISCONNECTION
 OF ANY SUPPLY OF WATER SHALL NOT BE CARRIED OUT EXCEPT IN THE MANNER AND
 UPON  THE  NOTICE AS IS REQUIRED OF A WATERWORKS CORPORATION PURSUANT TO

 S. 5527                            12
 
 SUBDIVISIONS THREE-A, THREE-B AND THREE-C OF SECTION  EIGHTY-NINE-B  AND
 SECTION ONE HUNDRED SIXTEEN OF THE PUBLIC SERVICE LAW;
   24.  CONTRACT  FOR,  PROVIDE  AND  MAINTAIN SUCH INSURANCE AS IT DEEMS
 NECESSARY OR REASONABLE TO:
   (A) SECURE AND PROTECT ITS REAL AND PERSONAL PROPERTY FROM FIRE, THEFT
 OR OTHER CALAMITY OR LOSS;
   (B) SECURE AND PROTECT IT AGAINST LIABILITY IMPOSED BY LAW FOR DAMAGES
 FOR INJURIES TO PERSONS OR PROPERTY;
   (C) SECURE AND PROTECT IT AGAINST ANY LIABILITY WHICH MAY  BE  IMPOSED
 PURSUANT TO SECTION EIGHTEEN OF THE PUBLIC OFFICERS LAW; AND
   (D)  SECURE  AND  PROTECT  IT AGAINST ANY OTHER LIABILITY, CASUALTY OR
 LOSS AS IT DEEMS NECESSARY OR REASONABLE; AND
   25. DO ALL THINGS NECESSARY, CONVENIENT OR DESIRABLE TO CARRY OUT  ITS
 PURPOSES AND FOR THE EXERCISE OF THE POWERS GRANTED IN THIS TITLE.
   § 1114-F. TRANSFER  OF  OFFICERS  AND EMPLOYEES. ANY PUBLIC OFFICER OR
 EMPLOYEE UNDER CIVIL SERVICE, SELECTED BY THE AUTHORITY  MAY,  WITH  THE
 CONSENT OF THE COMMISSION, BOARD, DEPARTMENT OR MUNICIPALITY BY WHICH HE
 OR  SHE  HAS BEEN EMPLOYED, BE TRANSFERRED TO THE AUTHORITY AND SHALL BE
 ELIGIBLE FOR SUCH TRANSFER AND APPOINTMENT WITHOUT EXAMINATION TO COMPA-
 RABLE OFFICES, POSITIONS AND EMPLOYMENT UNDER THE AUTHORITY. THE  SALARY
 OR  COMPENSATION OF ANY SUCH OFFICER OR EMPLOYEE SHALL AFTER SUCH TRANS-
 FER BE PAID BY THE AUTHORITY, BUT NOTWITHSTANDING THE PROVISIONS OF THIS
 TITLE, ANY SUCH OFFICERS OR EMPLOYEES SO TRANSFERRED TO  THE  AUTHORITY,
 PURSUANT  TO THE PROVISIONS OF THIS SECTION, WHO ARE MEMBERS OF OR BENE-
 FICIARIES UNDER ANY EXISTING PENSION OR RETIREMENT SYSTEM, SHALL CONTIN-
 UE TO HAVE ALL RIGHTS, PRIVILEGES, OBLIGATIONS AND STATUS  WITH  RESPECT
 TO  SUCH FUND SYSTEM OR SYSTEMS AS ARE NOW PRESCRIBED BY LAW, BUT DURING
 THE PERIOD OF THEIR EMPLOYMENT BY THE AUTHORITY,  ALL  CONTRIBUTIONS  TO
 ANY  PENSION  OR RETIREMENT FUND OR SYSTEM TO BE PAID BY THE EMPLOYER ON
 ACCOUNT OF SUCH OFFICERS AND EMPLOYEES, SHALL BE PAID BY THE  AUTHORITY;
 AND ALL SUCH OFFICERS AND EMPLOYEES WHO HAVE BEEN APPOINTED TO POSITIONS
 UNDER  THE  RULES  AND  CLASSIFICATIONS  OF THE CIVIL SERVICE COMMISSION
 SHALL HAVE THE SAME STATUS WITH RESPECT THERETO AFTER  TRANSFER  TO  THE
 AUTHORITY AS THEY HAD UNDER THEIR ORIGINAL APPOINTMENTS. THE APPOINTMENT
 AND PROMOTION OF ALL EMPLOYEES OF THE AUTHORITY SHALL BE MADE IN ACCORD-
 ANCE  WITH THE PROVISIONS OF THE CIVIL SERVICE LAW AND SUCH RULES AS THE
 CIVIL SERVICE COMMISSION MAY ADOPT AND MAKE APPLICABLE TO THE AUTHORITY.
   § 1114-G. BONDS OF THE AUTHORITY. 1.  THE  AUTHORITY  SHALL  HAVE  THE
 POWER  AND  IS  HEREBY  AUTHORIZED  FROM TIME TO TIME TO ISSUE BONDS, IN
 CONFORMITY WITH APPLICABLE PROVISIONS OF THE UNIFORM COMMERCIAL CODE, IN
 SUCH PRINCIPAL AMOUNTS AS IT MAY DETERMINE TO BE NECESSARY  TO  PAY  THE
 COST  OF  ANY  WATER  PROJECT  OR  PROJECTS  OR  FOR ANY OTHER CORPORATE
 PURPOSES, INCLUDING INCIDENTAL EXPENSES IN CONNECTION  THEREWITH.    THE
 AUTHORITY  SHALL HAVE POWER FROM TIME TO TIME TO REFUND ANY BONDS BY THE
 ISSUANCE OF NEW BONDS WHETHER THE BONDS TO BE REFUNDED HAVE OR HAVE  NOT
 MATURED, AND MAY ISSUE BONDS PARTLY TO REFUND BONDS THEN OUTSTANDING AND
 PARTLY  FOR  ANY  OTHER CORPORATE PURPOSE. BONDS ISSUED BY THE AUTHORITY
 MAY BE GENERAL OBLIGATIONS SECURED  BY  THE  FAITH  AND  CREDIT  OF  THE
 AUTHORITY OR MAY BE SPECIAL OBLIGATIONS PAYABLE SOLELY OUT OF PARTICULAR
 REVENUES  OR  OTHER  MONEYS OF THE AUTHORITY AS MAY BE DESIGNATED IN THE
 PROCEEDINGS OF THE AUTHORITY UNDER WHICH THE BONDS SHALL  BE  AUTHORIZED
 TO  BE ISSUED, SUBJECT TO ANY AGREEMENTS WITH THE HOLDERS OF OUTSTANDING
 BONDS PLEDGING PARTICULAR REVENUES OR MONEYS.
   2. THE AUTHORITY IS AUTHORIZED TO OBTAIN FROM ANY DEPARTMENT OR AGENCY
 OF THE UNITED STATES OF AMERICA OR NONGOVERNMENTAL INSURER ANY INSURANCE
 OR GUARANTY, OR ANY OTHER CREDIT ENHANCEMENT ARRANGEMENT WITH  ANY  BANK

 S. 5527                            13
 
 OR OTHER FINANCIAL INSTITUTION TO THE EXTENT NOW OR HEREAFTER AVAILABLE,
 AS  TO,  OR  FOR  THE  PAYMENT OR REPAYMENT OF INTEREST OR PRINCIPAL, OR
 BOTH, OR ANY PART THEREOF, ON ANY BONDS ISSUED BY THE AUTHORITY  AND  TO
 ENTER  INTO ANY AGREEMENT OR CONTRACT WITH RESPECT TO ANY SUCH INSURANCE
 OR GUARANTY, EXCEPT TO THE EXTENT THAT THE SAME WOULD IN ANY WAY  IMPAIR
 OR  INTERFERE  WITH  THE ABILITY OF THE AUTHORITY TO PERFORM AND FULFILL
 THE TERMS OF ANY AGREEMENT MADE WITH THE HOLDERS OF  THE  BONDS  OF  THE
 AUTHORITY.
   3.  BONDS  SHALL BE AUTHORIZED BY RESOLUTION OF THE AUTHORITY, AND MAY
 BE IN SUCH DENOMINATIONS AND BEAR SUCH DATE OR DATES AND MATURE AT  SUCH
 TIME  OR  TIMES AS SUCH RESOLUTION MAY PROVIDE EXCEPT THAT BONDS AND ANY
 RENEWAL THEREOF SHALL MATURE WITHIN FORTY YEARS OF  THE  DATE  OF  THEIR
 ORIGINAL  ISSUANCE AND NOTES AND ANY RENEWAL THEREOF SHALL MATURE WITHIN
 FIVE YEARS OF THE DATE OF THEIR ORIGINAL ISSUANCE. SUCH BONDS  SHALL  BE
 SUBJECT  TO  SUCH  TERMS  OF  REDEMPTION,  BEAR INTEREST AT SUCH RATE OR
 RATES, WHICH MAY VARY FROM TIME TO TIME, AS MAY BE NECESSARY  TO  EFFECT
 THE  SALE  THEREOF  AND SHALL BE PAYABLE AT SUCH TIMES, BE IN SUCH FORM,
 CARRY SUCH REGISTRATION PRIVILEGES, BE EXECUTED IN SUCH MANNER, BE PAYA-
 BLE IN SUCH MEDIUM OF PAYMENT AT SUCH PLACE OR PLACES, AND BE SUBJECT TO
 SUCH TERMS AND CONDITIONS AS SUCH RESOLUTION MAY PROVIDE. BONDS  MAY  BE
 SOLD  AT  PUBLIC SALE OR AT PRIVATE SALE FOR SUCH PRICE OR PRICES AS THE
 AUTHORITY SHALL DETERMINE, PROVIDED THAT NO ISSUE OF BONDS MAY  BE  SOLD
 AT  PRIVATE  SALE UNLESS THE TERMS OF SUCH SALE SHALL HAVE BEEN APPROVED
 IN WRITING BY:
   (A) THE COMPTROLLER, WHERE SUCH SALE IS NOT TO THE COMPTROLLER; OR
   (B) THE DIRECTOR OF THE DIVISION OF THE BUDGET  OF  THE  STATE,  WHERE
 SUCH SALE IS TO THE COMPTROLLER.
   4.  ANY  RESOLUTION  OR  RESOLUTIONS AUTHORIZING BONDS OR ANY ISSUE OF
 BONDS BY THE AUTHORITY MAY CONTAIN PROVISIONS WHICH MAY BE PART  OF  THE
 CONTRACT WITH THE HOLDERS OF THE BONDS THEREBY AUTHORIZED AS TO:
   (A)  PLEDGING  ALL  OR  PART  OF ITS REVENUES, TOGETHER WITH ANY OTHER
 MONEYS, SECURITIES, CONTRACTS OR PROPERTY, TO SECURE THE PAYMENT OF  THE
 BONDS, SUBJECT TO SUCH AGREEMENTS WITH BONDHOLDERS AS MAY THEN EXIST;
   (B)  THE  RATES,  RENTALS,  FEES  AND  OTHER  CHARGES  TO BE FIXED AND
 COLLECTED AND THE AMOUNTS TO BE RAISED IN EACH YEAR THEREBY, AND THE USE
 AND DISPOSITION OF THE EARNINGS AND OTHER REVENUES;
   (C) THE SETTING ASIDE OF RESERVES AND THE CREATION  OF  SINKING  FUNDS
 AND THE REGULATION AND DISPOSITION THEREOF;
   (D)  LIMITATIONS ON THE PURPOSE TO WHICH THE PROCEEDS FROM THE SALE OF
 BONDS MAY BE APPLIED;
   (E) LIMITATIONS ON THE RIGHT OF THE AUTHORITY TO RESTRICT AND REGULATE
 THE USE OF ANY PROJECT OR PART THEREOF IN CONNECTION  WITH  WHICH  BONDS
 ARE ISSUED;
   (F)  LIMITATIONS  ON  THE ISSUANCE OF ADDITIONAL BONDS, THE TERMS UPON
 WHICH ADDITIONAL BONDS MAY BE ISSUED AND THE REFUNDING OF OUTSTANDING OR
 OTHER BONDS;
   (G) THE PROCEDURE, IF ANY, BY WHICH THE TERMS  OF  ANY  CONTRACT  WITH
 BONDHOLDERS  MAY  BE  AMENDED  OR ABROGATED, INCLUDING THE PROPORTION OF
 BONDHOLDERS WHICH SHALL CONSENT THERETO AND THE  MANNER  IN  WHICH  SUCH
 CONSENT MAY BE GIVEN;
   (H)  THE  CREATION  OF  SPECIAL FUNDS INTO WHICH ANY REVENUES OR OTHER
 MONEYS MAY BE DEPOSITED;
   (I) THE TERMS AND PROVISIONS OF ANY TRUST, DEED OR INDENTURE  SECURING
 THE BONDS UNDER WHICH THE BONDS MAY BE ISSUED;
   (J)  VESTING  IN A TRUSTEE OR TRUSTEES SUCH PROPERTIES, RIGHTS, POWERS
 AND DUTIES IN TRUST AS THE AUTHORITY MAY DETERMINE,  WHICH  MAY  INCLUDE

 S. 5527                            14
 
 ANY  OR ALL OF THE RIGHTS, POWERS AND DUTIES OF THE TRUSTEE APPOINTED BY
 THE BONDHOLDERS PURSUANT TO SECTION ELEVEN HUNDRED  FOURTEEN-H  OF  THIS
 TITLE  AND  LIMITING  OR  ABROGATING  THE  RIGHTS  OF THE BONDHOLDERS TO
 APPOINT  A TRUSTEE UNDER SUCH SECTION OR LIMITING THE RIGHTS, DUTIES AND
 POWERS OF SUCH TRUSTEE;
   (K) DEFINING THE ACTS OR OMISSIONS  TO  ACT  WHICH  MAY  CONSTITUTE  A
 DEFAULT  IN THE OBLIGATIONS AND DUTIES OF THE AUTHORITY TO THE BONDHOLD-
 ERS AND PROVIDING FOR THE RIGHTS AND REMEDIES OF THE BONDHOLDERS IN  THE
 EVENT OF SUCH DEFAULT, INCLUDING AS A MATTER OF RIGHT THE APPOINTMENT OF
 A  RECEIVER,  PROVIDED, HOWEVER, THAT SUCH RIGHTS AND REMEDIES SHALL NOT
 BE INCONSISTENT WITH THE GENERAL LAWS OF THE STATE AND OTHER  PROVISIONS
 OF THIS TITLE;
   (L)  LIMITATIONS  ON  THE  POWER OF THE AUTHORITY TO SELL OR OTHERWISE
 DISPOSE OF ANY SYSTEM OR ANY PART THEREOF OR OTHER PROPERTY;
   (M) LIMITATIONS ON THE AMOUNT OF  REVENUES  AND  OTHER  MONEYS  TO  BE
 EXPENDED FOR OPERATING, ADMINISTRATIVE OR OTHER EXPENSES OF THE AUTHORI-
 TY;
   (N)  THE  PROTECTION AND ENFORCEMENT OF THE RIGHTS AND REMEDIES OF THE
 BONDHOLDERS;
   (O) THE OBLIGATIONS OF THE AUTHORITY IN RELATION TO THE  CONSTRUCTION,
 MAINTENANCE,  OPERATION,  REPAIRS  AND  INSURANCE OF THE PROPERTIES, THE
 SAFEGUARDING AND APPLICATION OF ALL MONEYS AND AS  TO  THE  REQUIREMENTS
 FOR  THE  SUPERVISION AND APPROVAL OF CONSULTING ENGINEERS IN CONNECTION
 WITH CONSTRUCTION, RECONSTRUCTION AND OPERATION;
   (P) THE PAYMENT OF THE PROCEEDS OF BONDS, REVENUES AND OTHER MONEYS TO
 A TRUSTEE OR OTHER DEPOSITORY, AND FOR THE METHOD OF DISBURSEMENT THERE-
 OF WITH SUCH SAFEGUARDS AND RESTRICTIONS AS THE AUTHORITY MAY DETERMINE;
 AND
   (Q) ANY OTHER MATTERS OF LIKE OR DIFFERENT CHARACTER WHICH IN ANY  WAY
 AFFECT  THE  SECURITY OR PROTECTION OF THE BONDS OR THE RIGHTS AND REME-
 DIES OF BONDHOLDERS.
   5. IN ADDITION TO THE POWERS CONFERRED  UPON  THE  AUTHORITY  IN  THIS
 SECTION  TO  SECURE  ITS  BONDS,  THE  AUTHORITY  SHALL  HAVE  POWER  IN
 CONNECTION WITH THE ISSUANCE OF BONDS TO ENTER INTO SUCH  AGREEMENTS  AS
 THE AUTHORITY MAY DEEM NECESSARY, CONSISTENT OR DESIRABLE CONCERNING THE
 USE  OR DISPOSITION OF ITS REVENUES OR OTHER MONEYS OR PROPERTY, INCLUD-
 ING REMARKETING AGREEMENTS OR OTHER SIMILAR AGREEMENTS  FOR  THE  BONDS,
 THE  MORTGAGING OF ANY PROPERTY AND THE ENTRUSTING, PLEDGING OR CREATION
 OF ANY OTHER SECURITY INTEREST IN ANY SUCH REVENUES, MONEYS, OR PROPERTY
 AND THE DOING OF ANY ACT, INCLUDING REFRAINING FROM DOING ANY ACT, WHICH
 THE AUTHORITY WOULD HAVE THE RIGHT TO DO IN THE ABSENCE OF  SUCH  AGREE-
 MENTS.    THE AUTHORITY SHALL HAVE POWER TO ENTER INTO AMENDMENTS OF ANY
 SUCH AGREEMENTS WITHIN THE POWERS GRANTED TO THE AUTHORITY BY THIS TITLE
 AND TO PERFORM SUCH AGREEMENTS. THE PROVISIONS OF  ANY  SUCH  AGREEMENTS
 MAY  BE  MADE  A  PART  OF THE CONTRACT WITH THE HOLDERS OF BONDS OF THE
 AUTHORITY.
   6. ANY PROVISION OF  THE  UNIFORM  COMMERCIAL  CODE  TO  THE  CONTRARY
 NOTWITHSTANDING,  ANY  PLEDGE OF OR OTHER SECURITY INTEREST IN REVENUES,
 MONEYS, ACCOUNTS, CONTRACT RIGHTS, GENERAL INTANGIBLES OR OTHER PERSONAL
 PROPERTY MADE OR CREATED BY THE AUTHORITY SHALL BE  VALID,  BINDING  AND
 PERFECTED  FROM  THE  TIME  WHEN  SUCH  PLEDGE IS MADE OR OTHER SECURITY
 INTEREST ATTACHES WITHOUT ANY PHYSICAL DELIVERY  OF  THE  COLLATERAL  OR
 FURTHER  ACT, AND THE LIEN OF ANY SUCH PLEDGE OR OTHER SECURITY INTEREST
 SHALL BE VALID, BINDING AND PERFECTED AGAINST ALL PARTIES HAVING  CLAIMS
 OF  ANY  KIND IN TORT, CONTRACT OR OTHERWISE AGAINST THE AUTHORITY IRRE-
 SPECTIVE OF WHETHER OR NOT SUCH PARTIES HAVE NOTICE THEREOF. NO  INSTRU-

 S. 5527                            15

 MENT  BY  WHICH  SUCH  A  PLEDGE OR SECURITY INTEREST IS CREATED NOR ANY
 FINANCING STATEMENT NEED BE RECORDED OR FILED.
   7.  WHETHER  OR  NOT  THE  BONDS OF THE AUTHORITY ARE OF SUCH FORM AND
 CHARACTER AS TO BE NEGOTIABLE INSTRUMENTS UNDER THE TERMS OF THE UNIFORM
 COMMERCIAL CODE, THE BONDS ARE HEREBY MADE NEGOTIABLE INSTRUMENTS WITHIN
 THE MEANING OF AND FOR ALL PURPOSES  OF  THE  UNIFORM  COMMERCIAL  CODE,
 SUBJECT ONLY TO THE PROVISIONS OF THE BONDS FOR REGISTRATION.
   8.  NEITHER  THE MEMBERS OF THE BOARD OF DIRECTORS NOR THE OFFICERS OF
 THE AUTHORITY NOR ANY PERSON EXECUTING BONDS SHALL BE LIABLE  PERSONALLY
 THEREON OR BE SUBJECT TO ANY PERSONAL LIABILITY OR ACCOUNTABILITY SOLELY
 BY REASON OF THE ISSUANCE THEREOF.
   9.  THE AUTHORITY, SUBJECT TO SUCH AGREEMENTS WITH BONDHOLDERS AS THEN
 MAY EXIST, SHALL HAVE POWER OUT OF  ANY  MONEYS  AVAILABLE  THEREFOR  TO
 PURCHASE  BONDS  OF  THE AUTHORITY IN LIEU OF REDEMPTION, AT A PRICE NOT
 EXCEEDING:
   (A) IF THE BONDS ARE THEN REDEEMABLE, THE REDEMPTION PRICE THEN APPLI-
 CABLE, PLUS ACCRUED INTEREST TO THE NEXT INTEREST PAYMENT DATE; OR
   (B) IF THE BONDS ARE NOT THEN REDEEMABLE, THE  REDEMPTION  PRICE  THEN
 APPLICABLE  ON  THE  FIRST DATE AFTER SUCH PURCHASE UPON WHICH THE BONDS
 BECOME SUBJECT TO REDEMPTION PLUS ACCRUED INTEREST TO THE NEXT  INTEREST
 PAYMENT DATE.
   10.  THE  AUTHORITY SHALL HAVE POWER AND IS HEREBY AUTHORIZED TO ISSUE
 NEGOTIABLE  BOND  ANTICIPATION  NOTES  IN  CONFORMITY  WITH   APPLICABLE
 PROVISIONS  OF  THE  UNIFORM COMMERCIAL CODE AND MAY RENEW THE SAME FROM
 TIME TO TIME BUT THE  MAXIMUM  MATURITY  OF  ANY  SUCH  NOTE,  INCLUDING
 RENEWALS  THEREOF, SHALL NOT EXCEED FIVE YEARS FROM THE DATE OF ISSUE OF
 SUCH ORIGINAL NOTE. SUCH NOTES SHALL BE PAID  FROM  ANY  MONEYS  OF  THE
 AUTHORITY  AVAILABLE  THEREFOR  AND  NOT  OTHERWISE  PLEDGED OR FROM THE
 PROCEEDS OF SALE OF THE BONDS OF THE AUTHORITY IN ANTICIPATION OF  WHICH
 THEY  WERE  ISSUED.  THE NOTES SHALL BE ISSUED IN THE SAME MANNER AS THE
 BONDS AND SUCH NOTES AND THE RESOLUTION OR RESOLUTIONS  AUTHORIZING  THE
 SAME  MAY  CONTAIN  ANY  PROVISIONS, CONDITIONS OR LIMITATIONS WHICH THE
 BONDS OR BOND RESOLUTION OF THE AUTHORITY MAY CONTAIN. SUCH NOTES MAY BE
 SOLD AT PUBLIC SALE OR, UPON THE APPROVAL  OF  THE  COMPTROLLER  OF  THE
 TERMS  THEREOF, AT PRIVATE SALE. SUCH NOTES SHALL BE AS FULLY NEGOTIABLE
 AS THE BONDS OF THE AUTHORITY.
   § 1114-H. REMEDIES OF BONDHOLDERS. 1. IN THE EVENT THAT THE  AUTHORITY
 SHALL DEFAULT IN THE PAYMENT OF PRINCIPAL OF OR INTEREST ON ANY ISSUE OF
 THE  BONDS  AFTER THE SAME SHALL BECOME DUE, WHETHER AT MATURITY OR UPON
 CALL FOR REDEMPTION, AND SUCH DEFAULT SHALL CONTINUE  FOR  A  PERIOD  OF
 THIRTY  DAYS, OR IN THE EVENT THAT THE AUTHORITY SHALL FAIL OR REFUSE TO
 COMPLY WITH THE PROVISIONS OF THIS TITLE, OR SHALL DEFAULT IN ANY AGREE-
 MENT MADE WITH THE HOLDERS OF ANY ISSUE OF THE  BONDS,  THE  HOLDERS  OF
 TWENTY-FIVE  PER  CENTUM  IN  AGGREGATE PRINCIPAL AMOUNT OF THE BONDS OF
 SUCH ISSUE THEN OUTSTANDING, BY INSTRUMENT OR INSTRUMENTS FILED  IN  THE
 OFFICE  OF THE CLERK OF THE APPLICABLE COUNTY AND PROVED OR ACKNOWLEDGED
 IN THE SAME MANNER AS A DEED TO BE RECORDED, MAY APPOINT  A  TRUSTEE  TO
 REPRESENT THE HOLDERS OF SUCH BONDS FOR THE PURPOSES HEREIN PROVIDED.
   2.  SUCH TRUSTEE MAY, AND UPON WRITTEN REQUEST OF THE HOLDERS OF TWEN-
 TY-FIVE PER CENTUM IN PRINCIPAL AMOUNT OF SUCH BONDS OUTSTANDING  SHALL,
 IN HIS OR HER OWN NAME:
   (A)  BY ACTION OR PROCEEDING IN ACCORDANCE WITH THE CIVIL PRACTICE LAW
 AND RULES, ENFORCE ALL RIGHTS OF THE BONDHOLDERS AND REQUIRE THE AUTHOR-
 ITY TO CARRY OUT ANY OTHER AGREEMENTS WITH THE HOLDERS OF SUCH BONDS AND
 TO PERFORM ITS DUTIES UNDER THIS TITLE;
   (B) BRING AN ACTION OR PROCEEDING UPON SUCH BONDS;

 S. 5527                            16
 
   (C) BY ACTION OR PROCEEDING, REQUIRE THE AUTHORITY TO ACCOUNT AS IF IT
 WERE THE TRUSTEE OF AN EXPRESS TRUST FOR THE HOLDERS OF SUCH BONDS;
   (D)  BY  ACTION  OR PROCEEDING, ENJOIN ANY ACTS OR THINGS WHICH MAY BE
 UNLAWFUL OR IN VIOLATION OF THE RIGHTS OF THE HOLDERS OF SUCH BONDS; AND
   (E) DECLARE ALL SUCH BONDS DUE AND PAYABLE, AND IF ALL DEFAULTS  SHALL
 BE  MADE  GOOD,  THEN WITH THE CONSENT OF THE HOLDERS OF TWENTY-FIVE PER
 CENTUM OF THE PRINCIPAL AMOUNT OF SUCH  BONDS  THEN  OUTSTANDING,  ANNUL
 SUCH DECLARATION AND ITS CONSEQUENCES.
   3.  SUCH  TRUSTEE  SHALL IN ADDITION TO THE FOREGOING HAVE AND POSSESS
 ALL OF THE POWERS NECESSARY OR APPROPRIATE FOR THE EXERCISE OF ANY FUNC-
 TIONS SPECIFICALLY SET FORTH HEREIN OR INCIDENTAL TO THE GENERAL  REPRE-
 SENTATION  OF  BONDHOLDERS  IN  THE  ENFORCEMENT AND PROTECTION OF THEIR
 RIGHTS.
   4. THE STATE SUPREME COURT, COUNTY OF NASSAU AND THE STATE SHALL  HAVE
 JURISDICTION  OF  ANY  ACTION  OR PROCEEDING BY THE TRUSTEE ON BEHALF OF
 SUCH BONDHOLDERS.
   5. BEFORE DECLARING THE PRINCIPAL OF BONDS DUE AND PAYABLE, THE  TRUS-
 TEE SHALL FIRST GIVE THIRTY DAYS' NOTICE IN WRITING TO THE AUTHORITY.
   § 1114-I. STATE  AND  MUNICIPALITIES  NOT  LIABLE  ON AUTHORITY BONDS.
 NEITHER THE STATE NOR ANY MUNICIPALITY SHALL BE LIABLE ON THE  BONDS  OF
 THE  AUTHORITY AND SUCH BONDS SHALL NOT BE A DEBT OF THE STATE OR OF ANY
 MUNICIPALITY.
   § 1114-J. MONEYS OF THE AUTHORITY. ALL MONEYS OF  THE  AUTHORITY  FROM
 WHATEVER  SOURCE  DERIVED  SHALL  BE  PAID TO THE TREASURER AND SHALL BE
 DEPOSITED FORTHWITH IN ONE OR MORE BANKS AND/OR TRUST COMPANIES  IN  THE
 STATE  DESIGNATED BY THE AUTHORITY. THE MONEYS IN SUCH ACCOUNTS SHALL BE
 PAID OUT ON CHECKS OF THE TREASURER UPON REQUISITION BY THE  CHAIRPERSON
 OF  THE  AUTHORITY OR OF SUCH OTHER OFFICER OR OFFICERS AS THE AUTHORITY
 MAY AUTHORIZE TO MAKE SUCH REQUISITIONS. ALL  DEPOSITS  OF  SUCH  MONEYS
 SHALL BE SECURED BY OBLIGATIONS OF OR GUARANTEED BY THE UNITED STATES OF
 AMERICA  OR  OF  THE  STATE  OF A MARKET VALUE EQUAL AT ALL TIMES TO THE
 AMOUNT ON DEPOSIT AND ALL BANKS AND TRUST COMPANIES  ARE  AUTHORIZED  TO
 GIVE  SUCH  SECURITY  FOR SUCH DEPOSITS. ANY MONEYS OF THE AUTHORITY NOT
 REQUIRED FOR IMMEDIATE USE OR DISBURSEMENT MAY, AT THE DISCRETION OF THE
 AUTHORITY, BE INVESTED IN THOSE OBLIGATIONS SPECIFIED  PURSUANT  TO  THE
 PROVISIONS  OF  SECTION  NINETY-EIGHT-A  OF THE STATE FINANCE LAW.   THE
 AUTHORITY SHALL HAVE  POWER,  NOTWITHSTANDING  THE  PROVISIONS  OF  THIS
 SECTION,  TO  CONTRACT  WITH THE HOLDERS OF ANY BONDS AS TO THE CUSTODY,
 COLLECTION, SECURITY, INVESTMENT  AND  PAYMENT  OF  ANY  MONEYS  OF  THE
 AUTHORITY  OR  ANY  MONEYS HELD IN TRUST OR OTHERWISE FOR THE PAYMENT OF
 BONDS OR IN ANY WAY TO SECURE BONDS. MONEYS HELD IN TRUST  OR  OTHERWISE
 FOR  THE  PAYMENT OF BONDS OR IN ANY WAY TO SECURE BONDS AND DEPOSITS OF
 SUCH MONEYS MAY BE SECURED IN THE SAME MANNER AS MONEYS OF THE AUTHORITY
 AND ALL BANKS AND TRUST COMPANIES ARE AUTHORIZED TO GIVE  SUCH  SECURITY
 FOR SUCH DEPOSITS.
   § 1114-K. BONDS;  LEGAL  INVESTMENTS FOR FIDUCIARIES. THE BONDS OF THE
 AUTHORITY ARE HEREBY MADE SECURITIES IN WHICH ALL PUBLIC  OFFICIALS  AND
 BODIES  OF THE STATE AND ALL MUNICIPALITIES, ALL INSURANCE COMPANIES AND
 ASSOCIATIONS AND OTHER PERSONS CARRYING ON AN  INSURANCE  BUSINESS,  ALL
 BANKS, BANKERS, TRUST COMPANIES, SAVINGS BANKS AND SAVINGS ASSOCIATIONS,
 INCLUDING  SAVINGS AND LOAN ASSOCIATIONS, INVESTMENT COMPANIES AND OTHER
 PERSONS CARRYING ON A BANKING BUSINESS, AND  ADMINISTRATORS,  GUARDIANS,
 EXECUTORS,  TRUSTEES AND OTHER FIDUCIARIES AND ALL OTHER PERSONS WHATSO-
 EVER, WHO ARE NOW OR MAY HEREAFTER BE AUTHORIZED TO INVEST IN  BONDS  OR
 OTHER  OBLIGATIONS  OF  THE STATE, MAY PROPERLY AND LEGALLY INVEST FUNDS
 INCLUDING CAPITAL IN THEIR CONTROL OR BELONGING TO THEM. THE  BONDS  ARE

 S. 5527                            17
 
 ALSO  HEREBY  MADE  SECURITIES  WHICH  MAY  BE DEPOSITED WITH AND MAY BE
 RECEIVED BY ALL PUBLIC OFFICERS AND BODIES OF THE STATE AND ALL  MUNICI-
 PALITIES  FOR ANY PURPOSES FOR WHICH THE DEPOSIT OF BONDS OR OTHER OBLI-
 GATIONS OF THE STATE IS NOW OR HEREAFTER MAY BE AUTHORIZED.
   § 1114-L. AGREEMENT  WITH  THE  STATE. THE STATE DOES HEREBY PLEDGE TO
 AND AGREE WITH THE HOLDERS OF ANY BONDS ISSUED BY THE AUTHORITY PURSUANT
 TO THIS TITLE THAT THE STATE WILL NOT ALTER OR LIMIT THE  RIGHTS  HEREBY
 VESTED  IN THE AUTHORITY TO FULFILL THE TERMS OF ANY AGREEMENT MADE WITH
 OR FOR THE BENEFIT OF THE HOLDERS OF BONDS OR  IN  ANY  WAY  IMPAIR  THE
 RIGHTS  AND  REMEDIES  OF  BONDHOLDERS UNTIL THE BONDS TOGETHER WITH THE
 INTEREST THEREON, WITH INTEREST ON ANY UNPAID INSTALLMENTS OF  INTEREST,
 AND  ALL  COSTS AND EXPENSES IN CONNECTION WITH ANY ACTION OR PROCEEDING
 BY OR ON BEHALF OF SUCH HOLDERS, ARE FULLY  MET  AND  DISCHARGED.    THE
 AUTHORITY  IS  AUTHORIZED  TO  INCLUDE  THIS PLEDGE AND AGREEMENT OF THE
 STATE IN ANY AGREEMENT WITH BONDHOLDERS.
   § 1114-M. EXEMPTION FROM TAXES, ASSESSMENTS AND CERTAIN FEES; PAYMENTS
 IN LIEU OF TAXES. 1. IT IS HEREBY DETERMINED THAT THE  CREATION  OF  THE
 AUTHORITY  AND  THE  CARRYING  OUT  OF  ITS CORPORATE PURPOSES IS IN ALL
 RESPECTS FOR THE BENEFIT OF THE PEOPLE OF THE  STATE  AND  IS  A  PUBLIC
 PURPOSE,  AND  THE  AUTHORITY  SHALL BE REGARDED AS PERFORMING A GOVERN-
 MENTAL FUNCTION IN THE EXERCISE OF THE POWERS CONFERRED UPON IT BY  THIS
 TITLE  AND  SHALL  NOT  BE REQUIRED TO PAY ANY TAXES, SPECIAL AD VALOREM
 LEVIES OR SPECIAL ASSESSMENTS UPON ANY REAL PROPERTY OWNED BY IT OR  ANY
 FILING,  RECORDING  OR TRANSFER FEES OR TAXES IN RELATION TO INSTRUMENTS
 FILED, RECORDED OR TRANSFERRED BY IT OR ON ITS BEHALF.
   2. THE AUTHORITY MAY PAY, OR MAY ENTER INTO AGREEMENTS WITH ANY  MUNI-
 CIPALITY TO PAY, A SUM OR SUMS ANNUALLY OR OTHERWISE OR TO PROVIDE OTHER
 CONSIDERATIONS  TO SUCH MUNICIPALITY WITH RESPECT TO REAL PROPERTY OWNED
 BY THE AUTHORITY LOCATED WITHIN SUCH  MUNICIPALITY  AND  CONSTITUTING  A
 PART OF ITS WATER SYSTEM.
   3.  ANY  BONDS  ISSUED PURSUANT TO THIS TITLE TOGETHER WITH THE INCOME
 THEREFROM SHALL BE EXEMPT FROM TAXATION EXCEPT FOR TRANSFER  AND  ESTATE
 TAXES. THE REVENUES, MONEYS AND ALL OTHER PROPERTY AND ALL ACTIVITIES OF
 THE  AUTHORITY  SHALL  BE EXEMPT FROM ALL TAXES AND GOVERNMENTAL FEES OR
 CHARGES, WHETHER IMPOSED BY THE STATE  OR  ANY  MUNICIPALITY,  INCLUDING
 WITHOUT  LIMITATION  REAL  ESTATE  TAXES, INCOME TAXES, FRANCHISE TAXES,
 SALES TAXES OR OTHER EXCISE TAXES.
   4. THE STATE HEREBY COVENANTS WITH THE PURCHASERS AND WITH ALL  SUBSE-
 QUENT  HOLDERS AND TRANSFEREES OF BONDS ISSUED BY THE AUTHORITY PURSUANT
 TO THIS TITLE, IN CONSIDERATION OF THE ACCEPTANCE OF AND PAYMENT FOR THE
 BONDS, THAT THE BONDS OF THE AUTHORITY ISSUED PURSUANT TO THIS TITLE AND
 THE INCOME THEREFROM SHALL BE EXEMPT FROM SUCH TAXATION,  AS  STATED  IN
 SUBDIVISION  THREE  OF  THIS SECTION, AND THAT ALL REVENUES, MONEYS, AND
 OTHER PROPERTY PLEDGED TO SECURE THE PAYMENT OF SUCH BONDS SHALL AT  ALL
 TIMES BE FREE FROM SUCH TAXES AS STATED IN SUCH SUBDIVISION.
   5.  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS ONE, TWO, THREE AND
 FOUR OF THIS SECTION,  NOTHING  HEREIN  SHALL  PREVENT  THE  STATE  FROM
 ASSESSING  A TAX OR SURCHARGE AGAINST THE WATER CUSTOMERS BASED ON THEIR
 WATER CONSUMPTION, PROVIDED, HOWEVER, THAT ALL SUCH TAXES AND SURCHARGES
 AND THE AUTHORITY'S  OBLIGATION  TO  COLLECT  AND  PAY  SUCH  TAXES  AND
 SURCHARGES  SHALL  BE SUBORDINATE TO THE RIGHTS OF HOLDERS OF ALL OF THE
 AUTHORITY'S BONDS AND NOTES AND TO THE PAYMENT OF PRINCIPAL, PREMIUMS IF
 ANY, AND INTEREST THEREON.
   § 1114-N. ACTIONS AGAINST THE AUTHORITY. 1. EXCEPT IN  AN  ACTION  FOR
 WRONGFUL  DEATH,  NO  ACTION  OR PROCEEDING SHALL BE PROSECUTED OR MAIN-
 TAINED AGAINST THE AUTHORITY FOR PERSONAL INJURY OR DAMAGE  TO  REAL  OR

 S. 5527                            18
 
 PERSONAL PROPERTY ALLEGED TO HAVE BEEN SUSTAINED BY REASON OF THE NEGLI-
 GENCE  OR WRONGFUL ACT OF THE AUTHORITY OR ANY MEMBER, OFFICER, AGENT OR
 EMPLOYEE THEREOF, UNLESS:
   (A) A NOTICE OF CLAIM SHALL HAVE BEEN MADE AND SERVED UPON THE AUTHOR-
 ITY  WITHIN  THE TIME LIMIT BY AND IN COMPLIANCE WITH SECTION FIFTY-E OF
 THE GENERAL MUNICIPAL LAW;
   (B) IT SHALL APPEAR BY AND AS AN ALLEGATION IN THE COMPLAINT OR MOVING
 PAPERS THAT AT LEAST THIRTY DAYS HAVE ELAPSED SINCE THE SERVICE OF  SUCH
 NOTICE  AND  THAT  ADJUSTMENT  OR  PAYMENT THEREOF HAS BEEN NEGLECTED OR
 REFUSED;
   (C) THE ACTION OR PROCEEDING SHALL BE COMMENCED WITHIN  ONE  YEAR  AND
 NINETY  DAYS  AFTER  THE  HAPPENING OF THE EVENT UPON WHICH THE CLAIM IS
 BASED; AND
   (D) AN ACTION AGAINST  THE  AUTHORITY  FOR  WRONGFUL  DEATH  SHALL  BE
 COMMENCED  IN  ACCORDANCE  WITH  THE NOTICE OF CLAIM AND TIME LIMITATION
 PROVISIONS OF TITLE ELEVEN OF ARTICLE NINE OF THIS CHAPTER.
   2. WHEREVER A NOTICE OF CLAIM IS SERVED UPON THE AUTHORITY,  IT  SHALL
 HAVE  THE RIGHT TO DEMAND AN EXAMINATION OF THE CLAIMANT RELATIVE TO THE
 OCCURRENCE AND EXTENT OF THE INJURIES OR  DAMAGES  FOR  WHICH  CLAIM  IS
 MADE, IN ACCORDANCE WITH THE PROVISIONS OF SECTION FIFTY-H OF THE GENER-
 AL MUNICIPAL LAW.
   3.  THE  AUTHORITY MAY REQUIRE ANY PERSON PRESENTING FOR SETTLEMENT AN
 ACCOUNT OR CLAIM FOR ANY CAUSE WHATSOEVER AGAINST THE  AUTHORITY  TO  BE
 SWORN  BEFORE  A  MEMBER,  COUNSEL,  OR AN ATTORNEY, OFFICER OR EMPLOYEE
 THEREOF DESIGNATED FOR SUCH PURPOSE, CONCERNING SUCH  ACCOUNT  OR  CLAIM
 AND  WHEN  SO  SWORN,  TO ANSWER ORALLY AS TO ANY FACTS RELATIVE TO SUCH
 ACCOUNT OR CLAIM. THE AUTHORITY SHALL HAVE POWER TO SETTLE OR ADJUST ALL
 CLAIMS IN FAVOR OF OR AGAINST THE AUTHORITY.
   4. THE RATE OF INTEREST TO BE PAID BY THE  AUTHORITY  OR  WATER  BOARD
 UPON  ANY JUDGMENT FOR WHICH IT IS LIABLE, OTHER THAN A JUDGMENT AGAINST
 THE AUTHORITY ON ITS BONDS, SHALL NOT EXCEED THE  RATE  OF  INTEREST  ON
 JUDGMENTS  AND ACCRUED CLAIMS AGAINST MUNICIPAL CORPORATIONS AS PROVIDED
 IN THE GENERAL MUNICIPAL LAW FROM TIME TO TIME. INTEREST ON PAYMENTS  OF
 PRINCIPAL  OR  INTEREST ON ANY BONDS IN DEFAULT SHALL ACCRUE AT THE RATE
 BORNE BY SUCH BONDS FROM THE DATE THEREOF UNTIL PAID OR OTHERWISE SATIS-
 FIED.
   § 1114-O. CONFLICTS OF INTEREST OF MEMBERS OF THE BOARD  OF  DIRECTORS
 AND  OFFICERS  AND EMPLOYEES OF THE AUTHORITY. NO MEMBER OF THE BOARD OF
 DIRECTORS OR OFFICER OR EMPLOYEE OF THE AUTHORITY SHALL HAVE ANY  INTER-
 EST  IN ANY CONTRACT, OR TAKE ANY ACTION OR OTHERWISE INVOLVE HIMSELF OR
 HERSELF IN ANY ACTIVITY WHICH,  PURSUANT  TO  ARTICLE  EIGHTEEN  OF  THE
 GENERAL  MUNICIPAL  LAW,  WOULD  BE  DEEMED A CONFLICT OF INTEREST FOR A
 MUNICIPAL OFFICER OR EMPLOYEE HOLDING A  POSITION  WITH  A  MUNICIPALITY
 SIMILAR TO THE POSITION HELD BY THE MEMBER, OFFICER OR EMPLOYEE WITH THE
 AUTHORITY.
   § 1114-P. CONSTRUCTION AND PURCHASE CONTRACTS. THE AUTHORITY SHALL LET
 CONTRACTS FOR CONSTRUCTION OR PURCHASE OF SUPPLIES, MATERIALS, OR EQUIP-
 MENT PURSUANT TO SECTION ONE HUNDRED THREE OF THE GENERAL MUNICIPAL LAW.
 NOTHING  IN  THIS  SECTION  SHALL BE CONSTRUED TO LIMIT THE POWER OF THE
 AUTHORITY TO DO ANY CONSTRUCTION DIRECTLY BY THE  OFFICERS,  AGENTS  AND
 EMPLOYEES  OF  THE AUTHORITY OR TO CONTRACT WITH A PUBLIC UTILITY, FOR A
 TERM NOT TO EXCEED FIVE YEARS, FOR THE OPERATION AND  MAINTENANCE  OF  A
 WATER SUPPLY SYSTEM ACQUIRED FROM SAID PUBLIC UTILITY.
   § 1114-Q. SEPARABILITY  CLAUSE. IF ANY SECTION, CLAUSE OR PROVISION IN
 THIS TITLE SHALL BE HELD BY A COMPETENT COURT TO BE UNCONSTITUTIONAL  OR
 INEFFECTIVE  IN WHOLE OR IN PART, TO THE EXTENT THAT IT IS NOT UNCONSTI-

 S. 5527                            19
 
 TUTIONAL OR INEFFECTIVE, IT SHALL BE VALID AND EFFECTIVE, AND  NO  OTHER
 SECTION,  CLAUSE OR PROVISION SHALL ON ACCOUNT THEREOF BE DEEMED INVALID
 OR INEFFECTIVE.
   § 1114-R. EFFECT OF INCONSISTENT PROVISIONS. INSOFAR AS THE PROVISIONS
 OF  THIS  TITLE  ARE  INCONSISTENT WITH THE PROVISIONS OF ANY OTHER LAW,
 GENERAL, SPECIAL OR LOCAL, OR OF ANY CHARTER OR ANY LOCAL  ORDINANCE  OR
 RESOLUTION  OF  ANY  MUNICIPALITY, THE PROVISIONS OF THIS TITLE SHALL BE
 CONTROLLING, PROVIDED THAT NOTHING CONTAINED IN THIS TITLE SHALL BE HELD
 TO SUPPLEMENT OR OTHERWISE EXPAND THE POWERS OR DUTIES OF THE  AUTHORITY
 OTHERWISE SET FORTH IN THIS TITLE. NOTHING CONTAINED IN THIS TITLE SHALL
 BE  HELD  TO ALTER OR ABRIDGE THE POWERS AND DUTIES OF THE DEPARTMENT OF
 ENVIRONMENTAL CONSERVATION OR THE DEPARTMENT OF HEALTH.
   § 1114-S. ACQUISITION BY EMINENT DOMAIN. NOTWITHSTANDING ANY PROVISION
 OF THE EMINENT DOMAIN PROCEDURE LAW TO THE CONTRARY, IN  ANY  PROCEEDING
 BROUGHT  BY  THE AUTHORITY PURSUANT TO SAID LAW, TITLE SHALL VEST IN THE
 AUTHORITY AND COMPENSATION SHALL BE PAID ONLY:
   1. UPON A DECISION BY THE SUPREME  COURT  THAT  COMPENSATION  FOR  THE
 PROPERTY  SO CONDEMNED SHALL BE DETERMINED SOLELY BY THE INCOME CAPITAL-
 IZATION METHOD OF VALUATION, BASED ON THE ACTUAL NET INCOME  AS  ALLOWED
 BY THE PUBLIC SERVICE COMMISSION; AND
   2. UPON SUCH COURT'S DETERMINATION OF THE AMOUNT OF SUCH COMPENSATION,
 BASED  UPON  THE  INCOME CAPITALIZATION METHOD, ENTRY OF THE FINAL JUDG-
 MENT, THE FILING OF THE FINAL DECREE, AND THE CONCLUSION OF  ANY  APPEAL
 OR  EXPIRATION OF THE TIME TO FILE AN APPEAL RELATED TO THE CONDEMNATION
 PROCEEDING. SHOULD ANY COURT DETERMINE THAT  A  METHOD  OF  COMPENSATION
 OTHER  THAN  THE  INCOME  CAPITALIZATION  METHOD  BE UTILIZED, OR IF THE
 PROPOSED AWARD IS MORE THAN THE RATE BASE OF THE ASSETS TAKEN IN CONDEM-
 NATION AS UTILIZED BY THE PUBLIC SERVICE COMMISSION IN SETTING RATES AND
 AS CERTIFIED BY THE PUBLIC SERVICE COMMISSION, THE AUTHORITY  MAY  WITH-
 DRAW  THE  CONDEMNATION  PROCEEDING  WITHOUT  PREJUDICE  OR COSTS TO ANY
 PARTY.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.