An Act Regarding Consumer-owned Water Utilities and Contracts for Water Extraction and for the Sale of Water
Maine Legislature, Session 124, LD 0238
Committee: Utilities and Energy
Sponsors: LEGG, SULLIVAN, BEAUDOIN, BERRY, BOLAND, CASAVANT, CHASE, CONNOR, DRISCOLL, EATON, FLAHERTY, HOGAN, PIOTTI, ROTUNDO, TREAT, WATSON, WHEELER, WRIGHT, BARTLETT, BOWMAN
Amends: 35-A MRSA §6

MAINE STATE LEGISLATURE 
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AUGUSTA, 
124th MAINE LEGISLATU 
FIRST RElJULAK SESSION-2009 
Legislative Document 
No. 238 
H.P.192 
House of Representatives, January 23,2009 
An Act Regarding Consumer-owned Water Utilities and Contracts 
for Water Extraction and for the Sale of Water 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Representative LEGG of Kennebunk. 
Cosponsored by Senator SULLIVAN of York and 
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MILLICENT M. MacFARLAND 
Clerk 
Representatives: BEAUDOIN of Biddeford, BERRY of Bowdoinham, BOLAND of Sanford, 
CASAVANT of Biddeford, CHASE of Wells, CONNOR of Kennebunk, DRISCOLL of 
Westbrook, EATON of Sulli van, FLAHERTY of Scarborough, HOGAN of Old Orchard 
Beach, PIOTTI of Unity, ROTUNDO of Lewistori, TREAT of Hallowell, WATSON of Bath, 
WHEELER of Kittery, WRIGHT of Berwick,. Senators: BARTLETT of Cumberland, 
BOWMAN of York. 
PrillwJ Lln rccyckd PiJPCT 
Be it enacted by the People of the State of Maine as follows: 
Sec.!. 35-A MRSA §6H)9~Bis enacted to read: 
§6109-B. Extraordinary contracts for sale of water or water extraction 
Notwithstanding any provision to the contrary in its charter or in law, a consumer-
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owned water utility may not enter into an extraordinary contract without first holding a 
public hearing and securing approval of a maj ority of voters at a referendum conducted in 
accordance with this section. 
1. 
Definition. 
For purposes of this section, "extraordinary contract" means a 
contract with any entity that involves one or more of the following: the sale of water for 
purposes other than on-site use or consumption by the purchasing entity; the sale or lease 
of any water rights held by the consumer-owned water utility, including the right to 
extract water from sources from which the consumer-owned water utility is authorized to 
obtain water; and the sale of any water or sale or lease of any water rights on terms 
different than those available to any other similarly situated entity. 
2. Public hearing. Prior to entering into an extraordinary contract, the governing 
body of a consumer-owned water utility shall hold a public hearing at which the Public 
Advocate and any customer may testify and may question the officials present regarding 
the proposed contract. The consumer-owned water utility shall, at least 14 days prior to 
the hearing, publish a notice of the proposed contract and the hearing, including the date, 
time, place and purpose of the hearing, in a newspaper of general circulation in the area 
encompassed by the consuIner-owned water utility and give one notice of the proposed 
contract and the date, time, place and purpose of the hearing to each of its customers. 
The published and individual notices must include a statement describing the proposed 
contract, the customer's right to request information relating to the proposed contract, the 
right to an open and fair hearing and the availability of assistance from the Public 
Advocate. The consumer-owned water utility shall send copies of the notice to the 
commission and the Public Advocate at least 14 days prior to the hearing. 
3. Referendum. Prior to entering into an extraordinary contract, the governing body 
of a consumer-owned water utility shall submit the proposed contract for approval at a 
referendum conducted in accordance with this subsection. The governing body may not 
sign the proposed contract unless it is approved by a maj ority oflegal voters voting at the 
referendum. 
The referendum must be called, advertised and conducted according to the law relating to 
municipal elections, except the registrar of voters is not required to prepare or the clerk to 
post a new list of voters. The referendum may be held outside the temtory of the 
consumer-owned water utility if the usual voting place for persons located within the 
territory of the utility is located outside the territory of the utility. For the purpose of 
registering voters, the registrar of voters must be in session on the regular work day 
preceding the election. The question presented must conform to the following form: 
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"Do you favor (insert name of consumer-owned water utility) entering into a contract 
with (insert name of contracting entity) that authorizes (insert name of contracting 
entity) to (insert description of contract provisions)?" 
The voters shall indicate by a cross or check mark placed against the word "Yes" or "No" 
their opinion on the question. The results must be declared by the governing body of the 
consumer-owned water utility and entered upon the utility's records. Due certificate of 
the results must be filed by the clerk with the Secretary of State. Failure of approval by 
the maj ority of voters voting at the referendum does not prevent subsequent referenda 
from being held for the same purpose. The costs of referenda are borne by the consumer-
owned water utility. 
SUMMARY 
This bill requires a consumer-owned water utility to hold a public hearing and to 
secure approval of a majority of voters in a referendum vote before entering into a 
contract with any entity that involves: 
1. The sale of water for purposes other than on-site use or consumption by the 
purchasing entity; 
2. The sale or lease of any water rights held by the utility, including the right to 
extract water from sources from which the utility is authorized to obtain water; or 
3. The sale of any water or sale or lease of any water rights on terms different than 
those available to any other similarly situated entity.