Section 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.