|BILL AS PASSED BY SENATE||2007-2008|
AN ACT RELATING TO THE AUTHORITY OF VERMONT MUNICIPALITIES TO ACQUIRE FACILITIES AND OTHER ASSETS
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 30 V.S.A. chapter 14 is amended to read:
CITY OF BURLINGTON, VILLAGE OF LYNDONVILLE AND TOWN OF ROCKINGHAM MUNICIPAL UTILITY ACQUISITION OF FACILITIES AND OTHER ASSETS
§ 604. ADDITIONAL AUTHORITY
Notwithstanding any contrary provision of any general or special law relating
to the powers and authorities of electric utilities or any limitation imposed
by their charters, the city of Burlington, the village of Lyndonville acting
through its board of trustees, and
the town of Rockingham all other
Vermont municipal electric utilities shall each have the following additional
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Other electric utilities, whether cooperative, municipal or privately owned,
may enter into and perform contracts with the city of Burlington and all
other Vermont municipal electric utilities for the purposes of
this section. The provisions of this chapter shall not otherwise affect the
jurisdiction of the public service board regarding the activities of the Burlington electric light department and of the village of Lyndonville electric light
department, or any municipal utility formed
by the town of Rockingham,
within the state of Vermont.
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(e) A municipality owning a municipal plant and conducting itself as a utility under chapter 79 of this title shall have the authority to acquire equity ownership of Vermont Transco LLC or Vermont Electric Power Company or both and to finance the acquisition of equity ownership by any means permitted under subchapters 1 and 2 of chapter 53 of Title 24 or municipal charter. The terms under which equity ownership is acquired pursuant to this subsection shall not include any provision of guaranty, assessment, indemnification, or joint and several liability applicable to any such municipality.
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§ 610a. AUTHORIZATION OF INDEBTEDNESS
(a) A municipality owning and operating a municipal plant and conducting itself as a utility pursuant to chapter 79 of this title, when authorized as provided in subchapters 1 and 2 of chapter 53 of Title 24 or municipal charter, may pledge its credit or the net revenues of its municipal plant by issuing negotiable orders, warrants, notes, or bonds for the acquisition of equity ownership in Vermont Transco LLC or Vermont Electric Power Company or both pursuant to subsection 604(e) of this title. In addition, an acquisition of equity ownership may be effected through any instrument permitted under section 1789 of Title 24. Acquisition costs may include all costs, whether incurred prior to or after the issue of bonds or notes relating to the acquisition of equity ownership under this chapter. Acquisition of equity ownership is an improvement as defined in subdivision 1751(3) of Title 24.
(b) The obligations shall be issued in accordance with chapter 53 of Title 24 or municipal charter. The amount of obligations issued for such purpose shall not be considered in computing any debt limit applicable to the municipality.
(c) Any contract entered into and any debt obligation issued under this section for any purpose pursuant to this chapter shall have been issued for an essential government purpose and shall not be deemed to be a pledge of private credit for public benefit nor a delegation of municipal authority, responsibility, or discretion.
Sec. 2. CONFIRMATION OF ACQUISITION
A municipality that has acquired any equity ownership in Vermont Transco LLC or Vermont Electric Power Company or both prior to the effective date of this act shall be deemed to have had the authority granted by this chapter to do so.
Sec. 3. EFFECTIVE DATE
This act shall take effect upon passage.
The Vermont General Assembly
115 State Street