CHAPTER 132

FORMERLY

HOUSE BILL NO. 481

AN ACT AMENDING CHAPTER 64, TITLE 7, AND CHAPTER 58, TITLE 29, DELAWARE CODE, RELATING TO THE DELAWARE SOLID WASTE AUTHORITY AUTHORIZING SAID AUTHORITY TO FINANCE SOLID WASTE DISPOSAL AND RESOURCES RECOVERY SYSTEMS WITHIN THE STATE ESTABLISHING SOURCES OF CREDIT FOR SUCH FINANCING PROVIDING FOR THE ISSUANCE OF BONDS AND NOTES FOR SUCH PURPOSE, AUTHORIZING THE APPOINTMENT OF A TRUSTEE FOR BOND HOLDERS, AND PROVIDE FOR SITUATIONS INVOLVING CONFLICTS OF INTEREST.

WHEREAS, the General Assembly has enacted legislation creating the Delaware Solid Waste Authority; and

WHEREAS, under such legislation the said Authority was given comprehensive responsibilities regarding statewide management, storage, collection, transportation, utilization, processing, and disposal of solid waste; and

Whereas, pursuant to such delegation of responsibility the said Authority has undertaken the development of a major facility known as the Delaware Reclamation Project; and

WHEREAS, approximately $22 million of federal and state funding has been allocated to the subject project; and

WHEREAS, it is most likely that additional funds will be required to implement the project; and

WHEREAS, revenue bonds or collateralized bonds are a feasible means of obtaining possible required funding; and

WHEREAS, in order to effectuate such financing it is necessary to amend existing legislation to grant the Authority more explicit powers regarding control over the flow of solid waste; and

WHEREAS, it is recognized that private industry currently plays an important and integral role in collecting and transporting garbage and refuse in the area which would be serviced by the Delaware Reclamation Project; and

WHEREAS, it is the desire of the General Assembly that a system of private competitive free enterprise continue to be maintained with respect to the collection and transportation of garbage and refuse within the area served by the Delaware Reclamation Project; and

WHEREAS, it is the desire of the General Assembly that the powers granted to the said Authority regarding collection and transportation of garbage and refuse in the area serviced by the Delaware Reclamation Project be exercised only in situations in which a breakdown or failure of the private competitive free enterprise system threatens the viability of the Delaware Reclamation Project or threatens or endangers public health and/or welfare; and

WHEREAS, in order to accomodate financing of the subject project it is necessary and desirable to make amendments to administrative provisions of the existing legislation;

NOW, THEREFORE:

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-quarters of all members elected to each House thereof concurring therein):

Section 1. Title 7, Delaware Code, §6402 entitled "Definitions" is amended by deleting subsection (9) in its entirety and by adding in lieu thereof a new subsection (9) to read as follows:

"(9) 'Solid Waste' means any garbage, refuse, sludge from a waste treatment plant, water supply treatment plant or air pollution control facility and other discarded material, including solid, liquid, semi-solid, or contained gaseous material resulting from industrial, commerical, mining, and agricultural operations, and from community activities, but does not include solid or dissolved material in domestic sewage, or solid or dissolved materials in irrigation return flows or industrial discharges which are point sources subject to permits under Section 402 of the Federal Water Pollution Control Act, as amended (86 Stat. 880), or source, special nuclear, or bi-product material as defined by the

Atomic Energy Act of 1954, as amended (68 Stat. 923)."

Section 2. Title 7, Delaware Code, §6402 entitled "Definitions" is amended by adding new subsections (14) and (15) which shall read as follows:

"(14) 'Municipality' or 'municipalities' means a County, City, Town or other public body of the State of Delaware.

(15) 'Costs' means the cost or fair market value or value, as determined by the Authority, of construction, real property, property rights, utility extensions, disposal facilities, access roads, easements, franchises, financing charges, interest, labor, materials, machinery and equipment, engineering and legal services, plans, specifications, surveys, cost estimates, studies, transportation and other expenses necessary or incidental to the design, development, construction, financing, management and operation and maintenance of a waste management project, and such other costs or expenses of the Authority as may be necessary or incidental to the purposes of the Authority, including administrative and operating costs, research and development, and operating capital, including fees, charges, loans, insurance, and the expense of purchasing real and personal property, including waste management projects."

Section 3. Title 7, Delaware Code §6403 (a) is amended by deleting the first sentence of the subsection and adding in lieu thereof a new first sentence which shall read as follows:

"(a) There is hereby established and created a statewide solid waste authority, a body politic and corporate constituting a public instrumentality of the State of Delaware established and created for the performance of an essential public and governmental function, to be known as The Delaware Solid Waste Authority."

Section 4. Title 7, Delaware Code, §6403 (g) is amended by adding at the end of the said subparagraph the following:

"...Upon the termination of the existence of the Authority, all of its rights and properties shall pass to and be vested in the State of Delaware."

Section 5. Title 7, Delaware Code, §6404 (6) is amended by adding at the end of said subparagraph the following:

"The Authority may enter into an administrative agreement with any county, municipality, or other political subdivision under which agreement the licensing program referenced herein may be conducted by the county, municipality, or other political subdivision pursuant to such rules and regulations adopted by the Authority which are applicable to the licensing program."

Section 6. Title 7, Delaware Code, §6406 (a) is amended by adding a new subparagraph (31) which shall read as follows:

"(31) Control through regulation or otherwise, the collection, transportation, storage, and disposal of solid waste, including the diversion of solid waste within specified geographic areas to facilities owned, operated, or controlled by the Authority; provided, however, that such power shall not extend to the collection, transportation, transfer, and storage of garbage or refuse originating from commercial and industrial establishments."

Section 7. Title 7, Delaware Code, 66406 (a) is amended by adding a new subparagraph (32) which shall read as follows:

"(32) Issue bonds or notes in anticipation of the issurance of bonds, or otherwise, to finance any of the purposes of this Act, lend the proceeds of such obligations to any person to effectuate any of the purposes of this Act, contract with any person in any manner deemed advisable by the Authority to secure the payment of such obligations and to pledge such contracts as security for the payment of such obligations."

Section 8. Title 7, Delaware Code, 66407 (a) (5) is amended by adding at the end of said subparagraph the following:

"...Any municipality is hereby authorized to issue general obligation bonds, to which the full faith and credit of such municipality are pledged, to.the Authority in an amount determined by such municipality without regard to any debt or other limit provided in any Charter, Special Act or General Act pertaining to such municipality. Such bonds may be issued and delivered upon negotiation with the Authority and the consideration therefor may be the provision by the Authority of solid waste and disposal resources recovery facilities for the use and benefit of such municipality. Such bonds may be pledged by the Authority as security for bonds issued by the Authority to provide such facilities for the benefit of such municipalities. Any municipality shall also have the power to unconditionally guarantee the punctual payment of the principal of and interest on any bonds of the Authority, including the satisfaction of mandatory sinking fund requirements as provided in any resolution, trust indenture or other documents securing such bonds.

Any guarantee of bonds of the Authority made pursuant to this Section shall be evidenced by endorsement thereof on such bonds executed in the name of the municipality and on its behalf by such officer thereof as may be designated in the resolution authorizing such guarantee, and such municipality shall thereupon and thereafter be obligated to pay the principal of and interest on said bonds in the same manner and to the same extent as in the case of bonds issued by it. The obligations imposed by such guarantee shall not be subject to any limitation respecting the incurrence of debt or the issuance of obligations of such municipality contained in any Charter, Special Act or General Act."

Section 9. Title 7, Delaware Code, §6408 is amended by adding at the end of said section the following:

"In exercising the contracting authorities set forth in this section, the Authority shall not give any preference to public versus private parties."

Section 10. Title 7, Delaware Code, §6410 is amended by deleting the first sentence of said section and by substituting in lieu thereof the following:

"Notwithstanding the fact that the bonds may be payable from

a special fund, if they are otherwise of such form and character as to be negotiable instruments under the terms of the Uniform Commerical Code, the bonds shall be and are hereby made negotiable instruments and securities within the meaning of and for all the purposes of the Uniform Commercial Code."

Section 11, Title 7, Delaware Code, §6411 is amended by adding at the end of said section the following:

"The Authority may enter into agreements with any person, other than a municipality, leasing a project from the Authority or operating or managing the project providing for the making of payments in lieu of taxes to any municipality within which the project is located of an amount which may be equal to the taxes on real and personal property which such person would have been required to pay had it been the owner of such property during the period for which such payment is made or such lesser amount as shall be agreed upon by such person and the Authority."

Section 12. Title 7, Delaware Code, §6413 is amended by adding at the end of said section the following clause:

"...except that bonds, loan agreements or service agreements, all of which may be supported by the full faith and credit of a municipality, may be pledged as security for bonds or other obligations of the Authority."

Section 13. Title 7, Delaware Code, §6414 is amended by adding at the end of said section the following clause:

"...without regard to the provisions of any law, public or private, or Charter, regulating the issuance of debt or other obligatiOns or governing the issuance of bonds."

Section 14. Title 7, Delaware Code, Chapter 64 is hereby amended by adding a new §6418 which shall read as follows:

"46418. Bonds of the Authority.

(a) The Authority shall have the power and is hereby authorized from time to time to issue its negotiable bonds for any of its corporate purposes, including incidental expenses in connection therewith, and to secure the payment of the same by a lien or pledge covering all or part of its property, contracts, earnings, or revenues. The Authority shall have power from

time to time whenever it deems refunding expedient, to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, or be subject to redemption, and may issue bonds partly to refund bonds then outstanding and partly for any of its corporate purposes. Refunding bonds may be issued in amounts sufficient to provide:

(1) the principal amount of the obligations being refunded,

(2) any applicable redemption premiums thereon,

(3) unpaid interest on such obligations to the date of delivery of the refunding bonds, and interest to accrue on such obligations being refunded from the date of delivery of the refunding bonds to the first or any subsequently available redemption date or dates selected by the Authority, and

(4) any expenses, including bond discount, deemed by the Authority to be necessary for the issuance of the refunding bonds.

The proceeds of the sale of any refunding bonds shall be applied as follows, either: (i) to the immediate payment and retirement of the obligations being refunded, or (ii)

if not required for the immediate payment of the obligations being refunded, such proceeds shall be deposited in trust

to provide for the payment and retirement of the obligations being refunded, but provisions may be made for the pledging and disposition of any amount in excess of the amounts required for such purposes, including, without limitation, provision for the pledging of any such excess amounts to the payment of the principal of and interest on any portion of such refunding bonds or series of such refunding bonds issued for the purpose of providing amounts in addition to the principal amount and premium payable with respect to the outstanding obligations to be refunded.

(b) The bonds shall be authorized by resolution of the Authority and shall bear such date or dates, mature at at such time or times not exceeding forty years from their respective dates, bear interest at a rate or rates per annum as may be determined by the Authority, be in such denominations, be in such form either coupon or registered, carry such registration privileges, be executed in such manner, by payable in lawful money of the United States of America, at such place or places and be subject to such terms of redemption, as such resolution or resolutions may provide. Bonds of the Authority shall be sold either at public or private sale at such place and interest rates as may be determined by the Authority.

(c) Any resolution or resolutions authorizing any bonds or any trust indenture securing any issue of bonds may contain provisions, which shall be a part of the contract with the holders of the bonds thereby authorized, as to:

(1) pledging all or any part of the moneys, earnings income and revenues derived from all or any part of the properties of the Authority to secure the payment of the bonds or of any issue of the bonds subject to such agreements with bondholders as may then exist;

(2) 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;

(3) the setting aside of reserves and the creation of sinking funds and the regulation and disposition thereof;

(4) limitations on the right of the Authority to restrict and regulate the use of the properties in connection with which such bonds are issued;

(5) limitations on the purposes to which and the manner in which the proceeds of sale of any issue of bonds may be applied;

(6) limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured; the refunding of outstanding or other bonds;

(7) the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which such consent may be given;

(1) the creation of special funds into which any earnings or revenues of the Authority may be deposited;

(1) the terms and provisions of any mortgage or trust, deed or indenture securing the bonds or under which bonds may be issued;

(1) vesting in a trustee or trustees such properties, rights, powers and duties in trust as the Authority may determine which may include any or all of the rights, powers and duties of the trustee appointed by the bondholders pursuant to section six thousand four hundred nineteen hereof, and limiting or abrogating the right of the bondholders to appoint a trustee under such section or limiting the rights, duties and powers of such trustee;

(1) defining the acts or omissions to act which shall constitute a default in the obligations and duties of the Authority to the bondholders and providing 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 this State and other provisions of this Chapter.

(1) limitations on the power of the Authority to sell or otherwise dispose of its properties;

(1) any other matters, of like or different character which in any way affect the security or protection of the bonds;

(1) limitations on the amount of monies derived from the properties to be expended for operating, administrative or other expenses of the Authority;

(1) the protection and enforcement of the rights and remedies of the bondholders;

(16) the obligations of the Authority in relation to the construction, maintenance, operation, repairs and insurance of the properties, the safeguarding and application of all monies and as to the requirements for the supervision and approval of consulting engineers in connection with construction, reconstruction and operation;

(17) the payment of the proceeds of bonds and revenues of the properties to a trustee or other depository, and for the method of disbursement thereof with such safeguards and restrictions as the Authority may determine;

(18) any other matter or course of conduct which by recital in the resolution or resolutions is declared to further secure the payment of the principal of or interest on the bonds.

(d) It is the intention of the General Assembly that any pledge of earnings, revenues or other monies made by the Authority shall be valid and binding from the time when the pledge is made; that the earning, revenues or other monies so pledged and thereafter received by the Authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and that the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Authority irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded.

(e) Neither the Directors of the Authority nor any person executing the bonds or other obligations shall be liable personally on the bonds or other obligations or be subject to any personal liability or accountability by reason of the issuance thereof.

(f) The Authority shall have power out of any funds available therefor to purchase (as distinguished from the power of redemption hereinabove provided) any bonds issued by it or which may be assumed by such Authority at a price of not more than the principal amount thereof and accrued interest, and all such bonds shall be cancelled.

(g) In the discretion of the Authority, the bonds may be secured by a trust indenture by and between the Authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the State. Such trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the

bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the Authority in relation to the construction, maintenance, operation, repair and insurance of the properties, and the custody, safeguarding and application of all moneys, and may provide that the properties shall be constructed and paid for under the supervision and approval of consulting engineers. The Authority may provide by such trust indenture for the payment of the proceeds of the bonds and the revenues of the properties to the trustee under such trust indenture or other depository, and for the method of disbursement thereof, with such safeguards and restrictions as it may determine. All expenses incurred in carrying out such trust indenture may be treated as a part of the cost of maintenance, operation and repair of the properties. If the bonds shall be secured by a trust indenture, the bondholders shall have no authority to appoint a separate trustee to represent them. Notwithstanding any other provisions of this Chapter, any resolution or resolutions authorizing bonds or notes of the Authority shall contain a covenant by the Authority that it will dt all times maintain rates, fees, rentals and/or other charges sufficient to pay, and that any contracts entered into by the Authority for the receipt and treatment and/or disposal of solid wastes shall contain rates, fees, rentals or other charges sufficient to pay, the cost of operation and maintenance of the properties, the principal of and interest on any obligations issued pursuant to such resolution or resolutions as the same severally become due and payable, and to maintain any reserves or other funds required by the terms of such resolution or resolutions."

Section 15. Title 7, Delaware Code, Chapter 64 is hereby amended by adding a new §6419 which shall read as follows:

"§6419. Remedies of Bondholders

(a) In the event that the Authority shall default in the payment of principal of or interest on any issue of 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 Chapter, or shall default in any agreement made with the holders of any issue of bonds, the trustee appointed by the Authority or if none has been appointed, the trustee who may be appointed by 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 Recorder of Deeds of the County in which the protect is located and proved or acknowledged in the same manner as a deed to be recorded, shall represent the holders of such bonds for the purposes herein provided.

(b) Such trustee may, and upon written request of the holders of twenty-five per centum in principal amount of such bonds then outstanding shall, in his or its own name

(1) by mandamus or other suit, action or proceeding at law or in equity enforce all rights of the bondholders, including the right to require the Authority to collect revenues, rates, rentals, fees and other charges adequate to carry out any agreement as to, or pledge of such revenues, rates, rentals, fees and other charges and to require the Authority to carry out any other agreements with the holders of such bonds and to perform its duties under this title;

(2) bring suit upon such bonds;

(3) by action or suit in equity, require the Authority to account as if it were the trustee of an express trust for the holders of such bonds;

(4) by action or suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such bonds;

(5) 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, to annul such declaration and its consequences.

(c) Any suit, action or preceeding by the trustee on behalf of bondholders shall be heard or maintained in a court of competent jurisdiction.

(d) Before declaring the principal of all such bonds due and payable the trustee shall first give thirty days' notice in writing to the Authority.

(e) Any such trustee whether or not the issue of bonds represented by such trustee has been declared due and payable, shall be entitled as of right to the appointment of a receiver of any part or parts of the properties the revenues of which are pledged for the security of the bonds of such issue and such receiver may enter and take poss ssion of such part or parts of the properties and subject to any pledge or agreement with bondhulders shall take possession

of all moneys and other property derived from such part or parts of the properties and proceed with any construction thereon or the acquisition of any property, real or personal, in connection therewith which the Authority is under obligation to do, and to operate, maintain and reconstruct such part or parts of the properties and collect and receive all revenues thereafter arising therefrom subject to any pledge thereof or agreement with bondholders relating thereto and perform the public duties and carry out the agreements and obligations of the Authority under the direction of the court. In any suit, action or proceeding by the trustee the fees, counsel fees and expenses of the trustee and of the receiver, if any shall constitute taxable disbursements and all costs and disbursements allowed by the court shall be a first charge on any revenues derived from the properties.

(f) Such trustees shall in addition to the foregoing have and possess all of the powers necessary or appropriate for the exercise of any fuctions specifically set forth herein or incident to the general representation of bondholders in the enforcement and protection of their rights."

Section 16. Title 7, Delaware Code, Chapter 64 is hereby amended by adding a new §6420 which shall read as follows:

"§6420. Contracts

The Authority and any municipality may enter into a contract or contracts providing for-or relating to the collection or treatment and disposal of garbage, solid wastes and refuse originating in the municipality and the cost and expense of such collection or treatment and disposal; provided, however, that any such contract or contracts shall not include provisions regarding the collection, transportation, transfer, and storage of garbage or refuse originating from commercial and industrial establishments. Such contract or contracts may provide for the payment to the Authority by such municipality annually or otherwise of such sum or sums of money, computed as said contract or contracts may provide, and the sum or sums so payable may include provisions for all or any part or a share of the amounts necessary (1) to pay or provide for the expenses of operation and maintenance of the garbage and solid wastes disposal system, including without limitation insurance, extensions, betterments and replacements and the principal and interest on any bonds, and (2) to provide for any deficits resulting from failure to receive sums payable to the Authority by such municipality, and any other municipality, or any person, or from any other cause, and (3) to maintain such reserves or sinking funds for any of the foregoing as may be required by the terms of any contract of the Authority or as may be deemed necessary or desirable by the Authority. Any such contract may provide that the sum or sums so payable to the Authority shall be in lieu of all or

any part of the services charges which would otherwise be charged and collected by the Authority with regard to persons or real property within such municipality. Such contract or contracts may also contain provisions as to the financing and payment of expenses to be incurred by the Authority and determined by it to be necessary for its purposes prior to the placing in operation of the garbage and solid wastes disposal system and may provide for the payment by such municipality to the Authority for application to such expenses or indebtedness therefor such sum or sums of money, not in the aggregate exceeding an amount stated or otherwise limited in said contract or contracts plus interest thereon, as said contract or contracts may provide and as the governing body of said municipality shall, by virtue of its authorization of and entry into said contract or contracts, determine to be necessary for the purposes of the Authority. Any such contract may be made with or without consideration and for a specified or an unlimited time and on any terms and conditions which may be approved by such municipality and which may be agreed to by the Authority in conformity with its contracts with the holders of any bonds, and shall be valid whether or not an appropriation with respect thereto is made by such municipality prior to authorization or execution thereof. Subject to any such contracts with the holders of bonds, such municipality is hereby authorized and directed to do and perform any and all acts or things necessary, convenient or desirable to carry out and perform every such contract and to provide for the payment or discharge of any obligation thereunder in the same manner as other obligations of such municipality and, in accordance with any such contract, to waive, modify, suspend or reduce the service charges which would otherwise be charged and collected by the Authority with regard to persons or real property within such municipality. Nothing in this section, however, shall prevent the Authority from collecting additional fees and charges from the owners or occupants of all parcels of real estate served by it within such municipality if for any reason such additional fees or charges shall be necessary in order for the Authority to pay all operating expenses, debt service and other payments required pursuant to contracts with bondholders; and notwithstanding such contracts with such municipalities, the Authority shall at all times have power and be obligated to collect sufficient additional fees and charges whenever necessary to pay all operating costs, debt service and all other payments required by contracts with bondholders. Nothing in this section shall be deemed to imply or direct that any contracts referred to aforesaid must provide for both the collection and disposal of garbage and solid wastes and such Authority may, by the agreement and parallel ordinances and such municipality may, by ordinance, engage in either collection of solid wastes or disposal of solid wastes or both. All such contracts shall be full faith and credit obligations of the municipality and shall not be subject to any law regulating the issuance of debt or the making of contracts or other related matter."

Section 17. Title 7, Delaware Code, Chapter 64 is hereby amended by adding a new §6421 which shall read as follows:

"§6421. Public Bodies to Pay Service Charges.

Each County, City, Town or other public body shall promptly pay to the Authority all service charges and other moneys which the Authority may charge to its as owner or occupant of any facility and shall provide for the payment thereof in the same manner as other obligations of such County, City, Town or other public body."

Section 18. Title 7, Delaware Code, Chapter 64 is hereby amended by adding a new §6422 which shall read as follows:

§6422. Powers respecting garbage and solid wastes disposal limited after creation of solid

waste authority; use of services.

The Authority by regulation may provide that no municipality shall have power to engage in, grant any license or permit for, or enter into any contract for the collection or treatment and disposal of garbage, refuse and solid wastes; and no such municipality or any person, firm, corporation or association shall engage in any activities within such municipality which would be competitive with the purposes of the Authority as provided in this Act, provided, however, that the prohibitions aforesaid shall not be applicable to that activity in which the Authority shall determine not

to engage. The provisions of this section shall not apply to the collection, transportation, transfer, and storage of garbage or refuse originating from commercial and industrial establishments. It is hereby determined and declared that it is necessary for the health and welfare of the inhabitants of the

State that the facilities and services of the Authority shall be used by the owners or occupants of all lands, buildings, premises within the State, and the Authority may by regulation require the owners or occupants of all lands, buildings and premises therein to use the

services and facilities of the Authority under such rules and regulations as the Authority shall fix and establish. The provisions of this section shall not be construed, however, to affect or impair any contract entered into prior to the adoption of this provision."

Section 19. Title 7, Delaware Code, Chapter 64 is hereby amended by adding a new §6423 which shall read as follows:

11§6423. Liberal Construction; regulations of the Authority.

This act and the regulations promulgated thereunder shall be construed liberally to effectuate the legislative intent and as complete authority for the performance of each and every act and thing herein authorized."

Section 20. Title 7, Delaware Code, Chapter 64, is hereby amended by adding a new §6424 which shall read as follows:

"§6424. Cooperation with the United States of America.

The Authority shall adopt all necessary regulations, rules, procedures and plans to comply with the objectives of the Resource Conservation and Recovery Act of 1976 and the Solid Waste Disposal Act of the United States and may make application to the United States of America for financial assistance to develop and implement the purposes of this Act."

Section 21. Title 7, Delaware Code, Chapter 64 is hereby amended by adding a new §6425 which shall read as follows:

§6425. Conflict of Interest.

No Director shall be entitled to vote on any matter before the Authority if such Director knowingly has a financial interest in the outcome of such matter.

In the event a Director knowingly has a financial interest such Director shall indicate to the Chairman the nature of the interest and the Chairman shall note for the record that the Director did not vote by reason of conflict of interest. In situations in which a Director or Directors do not vote by reason of conflict of interest, the matter pending before the Authority shall be decided on the basis

of a majority vote of the remaining Directors present who do not have a conflict of interest. A Director or Directors having a conflict of interest as set forth herein shall be counted for purposes of es-

tablishing a quorum provided such Director or Directors are present at the meeting. The fact that a Director or Directors have not voted by reason of conflict of interest shall in no way affect the validity of an act or actions taken regaruing the matter before the Authority."

Section 22. Title 7, Delaware Code, Chapter 64 is hereby amended by adding a new §6426 which shall read as follows:

"§6426. Partial invalidity.

If any section, subsection, clause or provisions of this Act shall be adjudged unconstitutional or to be ineffective in whole or in part, to the extent that it is not adjudged unconstitutional or is not ineffective it shall be valid and effective and no other section, subsection, clause or provisions of this Act shall on account thereof be deemed invalid or ineffective, and the inapplicability or invalidity of any section, subsection, clause or provisions of this Act in any one or more instances or under any one or more circumstances shall not be taken to affect or prejudice in any way its applicability or validity in any other instance or under any other circumstances."

Section 23. Title 29, Delaware Code, Chapter 58 is hereby amended by deleting subsection (4) in its entirety and by substituting in lieu thereof a new subsection (4) which shall read as follows:

"(4) 'Employee' means any-person who has been elected or appointed to any State Agency or who received compensation for services to the same but does not include

members of the General Assembly, Justices of the Supreme Court, the Judges of any Court, the Chancellor, Vice Chancellors, Justices of the Peace and the Directors of the Delaware Solid Waste Authority."

Approved July 12, 1977.