An Act To Authorize Water and Wastewater Districts To Lease Their Assets
Maine Legislature, Session 121, LD 1252
Committee: Utilities and Energy
Sponsors: McLAUGHLIN, MAYO, BLISS, CRESSEY, LUNDEEN, NORBERT, O'NEIL, YOUNGBLOOD
Amends: 38 MRSA §1068, 38 MRSA §1252

Legislative Document 
No. 1252 
H.P.926 
House of Representatives, March 6, 2003 
An Act To Authorize Water and Wastewater Districts To Lease 
Their Assets 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
17/~/J7.~ 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative McLAUGHLIN of Cape Elizabeth. 
Cosponsored by Senator MAYO of Sagadahoc and 
Representatives: BLISS of South Portland, CRESSEY of Baldwin, LUNDEEN of Mars Hill, 
NORBERT of Portland, O'NEIL of Saco, Senator: YOUNGBLOOD of Penobscot. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35·A MRSA §6109·A is enacted to read: 
§6l09-A. 
Lease of prqperty by consumer-owned vater utility 
1. 
DefinitioDs. 
As 
used 
in this 
section, 
unless 
the 
context 
otherwise 
indicates, 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"Charter" .has the same meaning as set forth in section 
6402, subsection 1. 
B. 
"Consumer-owned water utility" has the same meaning as 
set forth in section 6101, subsection I-A. 
2. 
Agreements authorized. 
Notwithstanding any provision to 
the contrary in its charter, a consumer-owned water utility may 
enter 
into 
a 
lease 
and 
leaseback 
or 
a 
sale 
and 
leaseback 
transaction with respect to some or all of its real or personal 
property and may take all other action necessary or desirable, 
including, but not limited to, 
the granting of mortgages and 
liens, to effectuate the transaction. 
3. 
Property of consumer-owned vater utility. 
For property 
tax purposes, including the purposes under Title 36, section 651, 
property and any interest in the property, including the lessor's 
interest. if any, in property leased back to the consumer-owned 
water utility that is subject to a lease and leaseback or a sale 
and leaseback transaction under this section is property of the 
consumer-owned water utility. 
Sec. 2. 38 MRSA §1068 is enacted to read: 
§l068. 
Lease of prqperty by sanita~ district 
Nothing in this chapter is intended to limit the authority 
of a sanitary district to enter into a lease and leaseback or a 
sale and leaseback transaction with respect to some or all of its 
real or personal property and to take all other action necessary 
or desirable, including, but not limited to, the granting of 
mortgages and liens, to effectuate the transaction. 
For property 
tax purposes, including the purposes under Title 36, section 651. 
property and any interest in the property, including the lessor's 
interest, if any, in property leased back to the consumer-owned 
water utility that is subject to a lease and leaseback or a sale 
and leaseback transaction under this section is property of the 
consumer-owned water utility. 
Page l-LR1l95(1) 
Sec. 3. 38 MRSA §1252, sub-§10 is enacted to read: 
10. 
Lease of prQRerty. 
A sewer district may enter into a 
lease and leaseback or a sale and leaseback transaction with 
respect to some or all of its real or personal property and may 
take all other action necessary or desirable, including, but not 
limited to, the granting of mortgages and liens, to effectuate 
the 
transaction. 
For 
property 
tax 
purposes, 
including 
the 
purposes under Title 36, section 651. property and any interest 
in the property, 
including the lessor's interest, if any, 
in 
property leased back to the consumer-owned water utility that is 
subject to 
a 
lease 
and 
leaseback 
or 
a 
sale 
and 
leaseback 
transaction under this section is property of the consumer-owned 
water utility. 
SUMMARY 
This bill specifically provides that a consumer-owned water 
or wastewater district may enter into lease and leaseback or sale 
and leaseback transactions in furtherance of its responsibilities 
to the public.