276 of August 27, 1942 are reformed and shall read as follows:
"Article 131.—User associations may be formed for the collective use of public waters. Their operation and liquidation shall conform, in matters not determined in this chapter and insofar as their own nature does not oppose it, to what the law provides for cooperatives. They must register in the Registry that the National Electricity Service shall maintain for that purpose, with the obligation to immediately notify said Service of all changes to bylaws and changes in the membership of the Board of Directors and the oversight board. Only their formation shall be published in excerpt form in the Official Gazette. For registration, every association shall pay the National Electricity Service a fee of one hundred colones, and for any subsequent modification or operation, 50% of that sum.
User associations shall require a minimum of five members for their formation, who may be owners or lessees of land.
The formation of a user association for the collective use of public waters shall be necessary when, in the judgment of the National Electricity Service, the number of persons using a source, its volume, or the special circumstances of the water use indicate that use in that form is more beneficial to the public interest and to private individuals." "Article 132.—User associations, once registered, shall enjoy legal personality for all purposes and especially to:
- a)Obtain concessions for the use of waters in accordance with the prescriptions of this law; b) Construct works for irrigation, motor power, watering places, and any other use of the waters; c) Obtain the necessary funds to construct the planned works through the contributions of their members; and d) Acquire the immovable property necessary for the association's own purposes and accept and hold the easements (servidumbres) constituted in its favor.
They may not themselves own or administer agricultural, industrial, or commercial operations, nor engage in activities other than those proper to their purpose. The regulation of water use by their members shall be determined in the respective concession, or by a subsequent provision of the National Electricity Service, and the right of members to use the water shall in all cases be exercised seeking the greatest equality and equity.
The social capital shall be divided into shares and the liability of the members is limited to the amount of their contributions for this concept. They shall be nominative, common, and for a value in the chosen monetary unit or its multiples." "Article 133.—User associations shall be formed by public deed, which shall contain the following information:
- a)Full name, personal particulars, and identification number of the founders, or the name of any participating legal entities; b) Name, domicile, purpose, and duration of the association, which may be indefinite; the capital and the manner in which the shares are subscribed and paid, and the portion and method of payment for any unpaid balance; c) Requirements for the admission of new members, grounds for separation or exclusion, and the manner of transferring shares; d) Number of members of the Board of Directors and the oversight board; e) Resources available to the association; f) Form and term of dissolution or liquidation; g) Other agreements of interest to the members; h) Composition of the first Board of Directors and Oversight Board; and i) Place and date of formation." "Article 134.—The operation of user associations shall be in accordance with what is determined by this law and its regulations and the provisions relating to cooperatives in matters not prescribed herein, subject to the following bases:
- a)The supreme authority shall be the General Assembly of Members, in which each member shall have one vote; b) The administration and management shall be in charge of a Board of Directors composed of at least three members, designated by the General Assembly by a relative majority of votes, for a period of up to five years, and they may be re-elected. There shall also be an Oversight Board composed of at least two members elected in the same manner and for an equal period. When the number of members allows, there shall be such alternates as agreed upon to substitute for absent members of both boards.
The Board of Directors may only commit the association's credit and execute works with the authorization of the General Assembly; c) The President of the Board of Directors shall have the legal representation of the association, with the powers of a general agent in accordance with Article 1255 of the Civil Code, and shall be the executor of the resolutions of the General Assembly and the Board of Directors; d) The General Assembly must meet at least once a year, within the three months following the end of the annual period, and extraordinarily whenever convened by the Board of Directors. The quorum for both ordinary and extraordinary meetings shall be half plus one of its members. In the event there are five members, the quorum shall be three. Resolutions of the General Assembly and the Board of Directors shall be adopted by a relative majority of votes. The call to a General Assembly shall be made by letter with at least three days' notice.
The minutes of Assemblies shall be signed by the members attending them; e) The Board of Directors must meet at least each month and additionally when the activities of the association require it. The quorum shall be half plus one of its members; if there are three members, the quorum shall be two, and if there are five, the quorum shall be three. At the first meeting, matters relating to such meetings shall be determined, setting the place of meeting; f) Both general assemblies and meetings of the Board of Directors shall be presided over by the President of the Board, and in his absence, by the member designated by those present; g) The Oversight Board must meet at least once a year to report to the General Assembly. When it deems a special report advisable, it shall proceed to convene the General Assembly through the Board of Directors, and in the event of the latter's refusal, it may do so itself; h) The National Electricity Service may intervene, upon request of a party, to resolve difficulties or conflicts of interest among members or between members and the association, and may exercise arbitration functions. It may intervene ex officio when it considers that the association does not fulfill its purposes in accordance with the laws and the terms of the concession, without prejudice to exercising the appropriate legal actions. Its decisions in this case have the limits of its competence; i) The Board of Directors may issue the regulations necessary for the proper functioning of the association, which, once approved by the General Assembly and the National Electricity Service, shall have the force of law for the members; j) If for any reason the members of the Board of Directors are not elected in a timely manner, the previous members shall continue in office until they are legally replaced, and an Extraordinary General Assembly must be called as soon as possible to proceed with the corresponding designation. With respect to third parties and the National Electricity Service, it is understood that the registered members of the Board of Directors continue in office if no change has been communicated upon the expiration of their term; k) The resolutions of the Board of Directors of the user association regarding expenses and the setting of fees for the construction of works or for maintenance shall be compulsory for all members; l) All costs of construction, operation, cleaning, conservation, improvement, and other works performed for the benefit of the members shall be at their expense, in proportion to their water rights. Expenses incurred for the benefit of specific members shall be the exclusive responsibility of those members, also in proportion to their water rights; ll) Members in default of payment of their fees or contributions shall be deprived of water during the period of default, without prejudice to collection through the appropriate legal channel.
They shall also be liable for the costs incurred for the services of the authority that must be tasked with applying and monitoring the water deprivation; m) New users who have not contributed to the payment for the collective-benefit works constructed by a user association shall, upon joining, pay for the benefit of the association a sum determined by the Board of Directors on reasonable terms; n) If any member, personally or through an intermediary, alters a distribution device, it shall be restored at the member's expense, who shall also suffer deprivation of water until that expense is paid and any other sanction provided for in the bylaws.
The same rules shall apply to members who perform works to increase their water allocation. The person benefiting from such acts is presumed to be their author; ñ) Members are obliged to contribute the sums necessary to carry out the corresponding works for the granted use, in the amount determined by the General Assembly, as well as to contribute periodic sums for their maintenance and other administrative expenses. Proven failure to fulfill this obligation may result in the expulsion of the member and the loss of the benefits of the use." "Article 135.—The acceptance of membership status implicitly carries the obligation to grant any of the legal easements (servidumbres) referred to in the Second Section of Chapter Five of this law, over the properties they own, which may not be revoked even if the member ceases to be one. The Registry certification stating membership status, or any other authentic association document bearing the same statement, shall be an executory title enabling the corresponding Civil Judge to grant the easement (servidumbre) in the absence of the member's cooperation."