Be it enacted by the General Assembly of the State of Delaware (three-fourths of all Members elected to each House concurring therein):

Section 1. Definitions:

(a) Qualified Agency, as used in this Act shall mean:

(1) Any legally incorporated town or city;

(2) Levy Courts of the Counties;

(3) Sewer Districts authorized by law and organized to provide publicly owned and operated sewerage facilities;

(b) Construction of Sanitary Sewage Disposal Systems shall mean:

(1) Engineering services to survey, plan, develop and supervise the construction;

(2) Sewage treatment plants, intercepting sewers;

(3) Collecting sewers;

(4) The repair of streets damaged in the construction process;

(5) Other necessary appurtenances which have the joint written approval of the State Board of Health and the State Water Pollution Commission.

(c) Federal Aid or Grants shall mean any and all federal grants-in-aid regardless of source which supplement the aid

provided by the State in this Act and which are to be applied to a single identifiable project for construction of a sanitary sewage disposal system under a qualified agency.

(d) Original Construction shall mean the first construction of a complete sanitary sewage disposal system by a qualified agency to serve a definite area which has been shown to have need by the State Board of Health and the Water Pollution Commission, in order to prevent or reduce pollution in the waters of the State as defined in the Delaware Water Pollution Control Act of 1949. Not included is the extension of collecting lines to serve domestic or business establishments as projects separate from the first construction of complete sewage disposal facilities in any area of the State.

Section 2. The State Board of Health is hereby empowered to administer the provisions of this Act and to distribute the aid funds provided herein to qualified agencies which make proper application for such funds. Application forms will be furnished by the State Board of Health and the Board may set rules and regulations to govern the applications and aid payment processes. The Board of Health shall require qualifying agencies to supply it with suitable copies of plans for construction, estimates of costs, copies of contracts and any other documentation the Board considers reasonable to enable a proper identification of the costs of any construction for which application for State grant aid is sought. The Board of Health, when satisfied that a construction project is justified in the area involved, and plans, applications and other evidence is satisfactory to the Board, shall distribute the aid funds appropriated, on the basis of the entire cost of the original construction excluding land acquisition costs. Final payment shall not be made until the project is completed and audited. Qualified agencies shall not be eligible for more than one project per year.

Section 3. Amount of Aid; limitation: A qualified agency proceeding with construction of a sanitary sewage disposal system and applying for aid under this Act shall receive State aid funds appropriated in this Act not to exceed 40 per cent of the cost of the original construction or $100,000, whichever is smaller. In no instance shall the sum of State and federal

grants-in-aid exceed 70 per cent of the total original cost. In computing these costs no deductions shall be made for any federal grant of funds for original construction.

Section 4. Retroactive Aid: Any qualified agency which had completed original construction of a sanitary sewage disposal system five years prior to the effective date of this Act shall be eligible to receive one-third of the State aid as described in Sections 2 and 3 of this Act. Any agency seeking retroactive aid shall make application on forms furnished by the State Board of Health within one year from the date this Act is signed by the Governor. The amount of retroactive payment will be determined following audit of the costs of the original construction.

Section 5. There is appropriated to the State Board of Health the sum of One Million Five Hundred Thousand Dollars ($1,500,000), or so much thereof as shall be received from the sale of the bonds and notes hereinafter authorized, which shall be used for construction of sanitary sewage disposal systems.

Section 6. Any of said appropriated funds remaining unexpended at the end of any fiscal year shall not revert to the General Fund, but shall remain to be used for the purposes set forth in this Act.

Section 7. The said sum of One Million Five Hundred Thousand Dollars ($1,500,000) shall be borrowed by the issuance of bonds and bond anticipation notes upon the full faith and credit of the State of Delaware. Such bonds and notes shall be issued in accordance with the provisions of Chapter 74, Title 29, Delaware Code. For purpose of identification, the bonds issued pursuant to this authorization Act may be known, styled or referred to as "Annual Sewage Disposal Bonds of 1965".

Section 8. There is hereby appropriated from the General Fund such sums as may be necessary for the expenses incident to the issuance of the bonds and notes herein authorized, and such further sums as may be necessary to pay any interest which becomes due on such bonds and notes during the current fiscal year and such further sums as may be necessary for the repayment of the principal of any of the said bonds which become due during the current fiscal year. Vouchers for the payment of the expenses incident to the issuance of bonds and notes and for the interest and repayment of said notes shall be signed by the Secretary of State by and with the approval of the Issuing Officers. Any moneys received from the premium and accrued interest on the sale of said bonds shall be deposited to the credit of the General Fund.

Section 9. The Budget Appropriation Bill which shall be enacted and approved by the General Assembly for the fiscal year next following the effective date of this Act and for each subsequent fiscal year or biennium, shall contain under the Debt Service Item provisions for the payment of interest and principal maturities of the bonds (or notes which are not to be funded by the issuance of bonds) issued under the authority of this Act, and such of the revenues of the State of Delaware as are not prohibited by constitutional provisions or committed by preceding statutes for other purposes are hereby pledged for the redemption and cancellation of said bonds and payment of interest thereon.

Approved June 14, 1965.