Massachusetts General Laws
Chapter 40n - Model Water and Sewer Commission
Section 6 - Water Works and Sewer Works System; Transfer of Title; Debts, Liabilities and Obligations

Section 6. On the date of the issuance of the notes of the commission authorized pursuant to section nine, title to the water works system and the sewer works system shall be vested in the commission and the possession of the water works system and the sewer works system shall be transferred and dedicated to the commission without any physical delivery thereof, and the commission shall thereafter own, control, operate and maintain the water works system and the sewer works system. Copies of all maps, plans, papers and records and all equipment pertaining to the design, construction, operation and affairs of the water works system and the sewer works system shall be transferred to the commission and placed in its custody and control. Notwithstanding the foregoing, no building or motor vehicle used partially in the operation of the water works system or the sewer works system and partially in other operations of the municipality shall be transferred to the commission or otherwise included in the definition of the water works system or sewer works system hereunder unless expressly designated by the legislative body with the approval of the executive director for transfer to the commission by operation of this chapter. All other rules, regulations and ordinances duly promulgated by the municipality pertaining to the water works system or the sewer works system shall remain in full force and effect to the extent consistent with this chapter until superseded, revised or rescinded by the commission. All contracts, including collective bargaining agreements, leases and agreements, including interdepartmental agreements, of the municipality pertaining to the water works system and the sewer works system shall continue in full force and effect until their expiration dates, and all benefits and obligations thereunder, and all other rights and benefits pertaining to the water works system and the sewer works system and existing by-laws or ordinances in favor of the municipality, including, without limiting the generality of the foregoing, all rights, benefits and obligations not inconsistent with the provisions of this chapter which pertain to the water works system or the sewer works system and which are vested in the municipality by general or special law, shall be transferred to, assumed by and imposed upon the commission by operation of law. All debts, liabilities and obligations of the municipality pertaining to or on account of the water works system and the sewer works system, including the obligation of the municipality to pay the interest and principal on all bonds, notes and other evidences of indebtedness issued by the municipality for purposes of the water works system and the sewer works system outstanding on the acceptance of this chapter, shall be assumed by and imposed upon the commission; provided, however, that all liabilities of the municipality in tort, whether actual or contingent, pertaining to the water works system or the sewer works system and arising out of actions or events which occurred or occur prior to the transfer of the systems to the commission shall not be assumed by or imposed upon the commission but shall continue to be the liabilities of the municipality. Except as above provided, all actions and proceedings pending before, all actions and proceedings pending against, and all actions and proceedings begun by the municipality and pertaining to the water works system or the sewer works system shall continue unabated and remain in full force and effect notwithstanding the provisions of this chapter and the transfer of the water works system and the sewer works system contemplated hereby and may, at the discretion of the court, commission, board or other body having jurisdiction, be completed before, against or by the commission.
On the date of the issuance of the notes of the commission authorized pursuant to section nine, all unexpended balances of monies in accounts of, for or on behalf of the municipality, including accounts receivable, and tax title accounts pertaining to the water works system or the sewer works system, including unexpended proceeds of, and monies and investments, if any, held for the payment of interest and principal of, then outstanding bonds, notes and other evidences of indebtedness of the municipality as provided in this section, shall be deemed to be held in trust for and shall be transferred to the commission. Subsequent to such date, all moneys collected or received by the municipality from any source on account of the water works system and sewer works system, including all rates, fees, charges, rents and other income derived from the operation thereof regardless of the date of assessment or billing of such rates, fees, charges and rents shall be deemed to be held in trust for and shall be forthwith transferred and paid over to the commission.
From the date the commission takes possession of the water works system and the sewer works system until one year thereafter, or at such earlier date not prior to six months thereafter as the commission may determine, the municipality shall at the direction of the commission continue to engage in the maintenance, repair and operation of the water works system and the sewer works system, and employees of the municipality whose work is related to such systems shall continue to perform their duties related to such systems; provided, however, that the municipality shall have no power to appoint or employ any person to, or transfer any employee to or from, any position classified under chapter thirty-one or any other provision of law as directly related to the work of the water works system or the sewer works system, or enter into any contracts relating to the water works system or the sewer works system, or sell or transfer any property of such systems or obligate the commission to any person or governmental entity, without the express written consent of the commission or, upon proper delegation thereof, by the executive director of the commission. The municipality shall bill the commission to reimburse the municipality for the current expenses of the municipality incurred in the operation and management of the water works system and the sewer works system during the period herein provided. All expenses for operation and management of the water works system and the sewer works system which are not billable to the commission under this section shall be borne by the municipality.

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