An Act To Authorize Water and Wastewater Districts To Lease Their Assets LR 1195(02)
Maine Legislature, Session 121, LD 1252
Committee Amendment CA_A_H316 (House)
Amends: 38 MRSA §1068

COMMITTEE AMENDMENT "4,, to H.P. 926, L.D. 
Act To Authorize Water and Wastewater Districts 
Assets" 
1252, Bill, "An 
To Lease Their 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
'Sec. I. 35·A MRSA §6109·A is enacted to read: 
§6109 A. 
Lease of property by consumer-owned water utility 
1. 
Definitions. 
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 prov~s~on to 
the contrary in its charter, a consumer-owned water utility may 
enter into a lease and leaseback transaction with respect to some 
or all of its real or personal property, other than land, 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 
purposes 
of 
this 
subsection, 
"lease" 
Page l-LR1l95(2) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,~, to H.P. 926, L.D. 1252 
includes a lease of any length, including leases that may be 
defined as sales for income tax purposes. 
Sec. 2. 38 MRSA §1068 is enacted to read: 
§1068. 
Lease of property by sanita~ district 
Nothing in this chapter is intended to limit the authority 
of 
a 
sanitary district to enter into 
a 
lease and leaseback 
transaction with respect to some or all of its real or personal 
property, other than land. 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 purposes 
of 
this 
section, 
"lease" 
includes 
a 
lease 
of 
any 
length, 
including leases that may be defined as sales for income tax 
purposes. 
Sec. 3. 38 MRS A §1252, sub-§10 is enacted to read: 
10. 
Lease of property. 
A sewer district may enter into a 
lease and leaseback transaction with respect to some or all of 
its real or personal property, other than land, 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 purposes of this subsection, "lease" includes a 
lease of any length, including leases that may be defined as 
sales for income tax purposes.' 
SUMMARY 
This amendment, which is the majority report of the Joint 
Standing Committee on Utilities and Energy, replaces the bill. 
It removes 
references to property tax exemptions, 
eliminates 
references to sale and leaseback transactions, limits leaseback 
transactions to property other than land and defines leases to 
include 
leases of 
any 
length, 
including leases that may 
be 
defined as sales for income tax purposes. 
FISCAL ~OTE REQl1RED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/07/03 ~ae 
Office of Fiscal and Program Review 
LD 1252 
An Act To Authorize Water and Wastewater Districts To Lease Their 
Assets 
LR 1195(02) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Utilities and Energy 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue 
LRl195(2) - Fiscal Note - Page 1 of 1