An Act To Improve the Sewer District Rate Collection Procedures
Maine Legislature, Session 125, LD 0084
Committee: Energy, Utilities and Technology
Sponsors: FITTS
Amends: 38 MRSA §1258

Legislative Document 
No. 84 
H.P. 72 
House of Representatives, January 12, 2011 
An Act To Improve the Sewer District Rate Collection Procedures 
(EMERGENCY) 
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative FITTS of Pittsfield. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, certain sewer districts have an immediate need to deal with delinquent 
accounts; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  38 MRSA §1258 is enacted to read: 
§1258.  Collection of unpaid rates 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Rates" means any rate, toll, rent or other charge established by a sewer district 
pursuant to its charter. 
B.  "Real estate" means an identified parcel of land and its improvements, if any, 
including, but not limited to, a mobile home. 
2.  Lien.  There is a lien on real estate served or benefited by the sewers of the sewer 
district to secure the payment of the sewer district's rates.  The lien established under this 
section takes precedence over all other claims on such real estate, except claims for taxes. 
3.  Collection.  The treasurer of the sewer district may collect rates, and all rates must 
be committed to the treasurer.  The treasurer may, after demand for payment, sue in the 
name of the sewer district in a civil action in any court of competent jurisdiction for any 
rates remaining unpaid.  In addition to other methods established by law for the collection 
of rates and without waiver of the right to sue for the collection of rates, the lien created 
under subsection 2 may be enforced in the following manner. 
A.  When rates have been committed to the treasurer of the sewer district for 
collection, the treasurer may, after the expiration of 3 months and within one year 
after the date when the rates became due and payable, give to the owner of the real 
estate served, leave at the owner's last and usual place of abode or send by certified 
mail, return receipt requested, to the owner's last known address a notice in writing 
signed by the treasurer or bearing the treasurer's facsimile signature, stating the 
amount of the rates due, describing the real estate upon which the lien is claimed and 
stating that a lien is claimed on the real estate to secure the payment of the rates and 
demanding the payment of the rates within 30 days after service or mailing, with $1 
added to the demanded rate for the treasurer and an additional fee to cover mailing 
the notice by certified mail, return receipt requested.  The notice must contain a 
statement that the sewer district is willing to arrange installment payments of the 
outstanding debt. 
B.  After the expiration of 30 days and within one year after giving notice pursuant to 
paragraph A, the treasurer of the sewer district shall record in the registry of deeds of 
the county in which the property of the person is located a certificate signed by the 
treasurer setting forth the amount of the rates due, describing the real estate on which 
the lien is claimed and stating that a lien is claimed on the real estate to secure 
payment of the rates and that a notice and demand for payment has been given or 
made in accordance with this section and stating further that the rates remain unpaid.  
At the time of the recording of the certificate in the registry of deeds, the treasurer 
shall file in the office of the sewer district a true copy of the certificate and shall mail 
a true copy of the certificate by certified mail, return receipt requested, to each record 
holder of any mortgage on the real estate, addressed to the record holder at the record 
holder's last and usual place of abode. 
C.  The filing of the certificate in the registry of deeds creates a mortgage held by the 
sewer district on the real estate described in the certificate that has priority over all 
other mortgages, liens, attachments and encumbrances of any nature, except liens, 
attachments and claims for taxes, and gives to the sewer district all the rights usually 
possessed by mortgagees, except that the sewer district as mortgagee does not have 
any right to possession of that real estate until the right of redemption has expired. 
D.  If the mortgage created under paragraph C, together with interest and costs, has 
not been paid within 18 months after the date of filing the certificate in the registry of 
deeds in accordance with paragraph B, the mortgage is foreclosed and the right of 
redemption expires. The filing of the certificate in the registry of deeds is sufficient 
notice of the existence of the mortgage.  In the event that the rate, with interest and 
costs, is paid within the period of redemption, the treasurer of the sewer district shall 
discharge the mortgage in the same manner as provided for discharge of real estate 
mortgages. 
E.  The owner of the real estate shall pay the sum of the fees for receiving, recording 
and indexing the lien, or its discharge, as established by Title 33, section 751, plus 
$13, plus all certified mail, return receipt requested, fees. 
F.  Not more than 45 days or less than 30 days before the foreclosing date of the 
mortgage created under paragraph C, the treasurer of the sewer district shall notify 
the party named on the mortgage and each record holder of a mortgage on the real 
estate in a writing signed by the treasurer or bearing the treasurer's facsimile signature 
and left at the holder's last and usual place of abode or sent by certified mail, return 
receipt requested, to the holder's last known address of the impending automatic 
foreclosure and indicating the exact date of foreclosure.  For sending this notice, the 
sewer district is entitled to receive $3 plus all certified mail, return receipt requested, 
fees, which must be added to and become a part of the amount due under paragraph 
E.  If notice is not given in the time period specified in this paragraph, the person not 
receiving timely notice has up to 30 days after the treasurer provides notice as 
specified in this paragraph in which to redeem the mortgage.  The notice of 
impending automatic foreclosure must be substantially in the following form: 
.................. SEWER DISTRICT 
NOTICE OF IMPENDING AUTOMATIC FORECLOSURE 
SEWER LIEN 
M.R.S.A., Title 38, section 1258 
IMPORTANT: DO NOT DISREGARD THIS NOTICE 
YOU WILL LOSE YOUR PROPERTY UNLESS 
YOU PAY THE CHARGES, COSTS AND INTEREST FOR WHICH 
A LIEN ON YOUR PROPERTY HAS BEEN CREATED BY THE 
................... SEWER DISTRICT. 
TO: .................  
IF THE LIEN FORECLOSES, 
THE ..................... SEWER DISTRICT WILL OWN 
YOUR PROPERTY, SUBJECT ONLY TO 
MUNICIPAL TAX LIENS. 
.................................... 
District Treasurer 
G.  The sewer district shall pay the treasurer $1 for the notice, $1 for filing the lien 
certificate and the amount paid for certified mail, return receipt requested, fees.  The 
fees for recording the lien certificate must be paid by the sewer district to the register 
of deeds. 
H.  A discharge of the certificate given after the right of redemption has expired, 
which discharge has been recorded in the registry of deeds for more than one year, 
terminates all title of the sewer district derived from that certificate or any other 
recorded certificate for which the right of redemption expired 10 years or more prior 
to the foreclosure date of this discharge lien, unless the sewer district has conveyed 
any interest based upon the title acquired from any of the affected liens. 
4.  Waiver of sewer district lien foreclosure.  The treasurer of a sewer district, 
when authorized by the trustees of the sewer district, may waive the foreclosure of a 
mortgage created under subsection 3 by recording in the registry of deeds a waiver of 
foreclosure before the right of redemption from the mortgage has expired.  The mortgage 
remains in full effect after the recording of a waiver.  Other methods established by law 
for the collection of any unpaid rates are not affected by the filing of a waiver under this 
section. 
The waiver of foreclosure must be substantially in the following form: 
WAIVER OF AUTOMATIC FORECLOSURE 
OF SEWER LIEN 
M.R.S.A., Title 38, section 1258 
The foreclosure of the sewer lien mortgage on real estate for charges against ................ 
(NAME) to .................. (NAME OF SEWER DISTRICT) dated .......... and recorded in 
the ..................... County Registry of Deeds in Book ..........., Page ............. is hereby 
waived. 
The form must be dated, signed by the treasurer of the sewer ct and notarized.  A copy of 
the form must be provided to the party named on the mortgage and each record holder of 
a mortgage on the real estate. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill provides sewer districts with the same authority as sanitary districts to place 
a mortgage lien on real estate served or benefited by the district's sewers for nonpayment 
of rates.  The procedures for foreclosing the lien are the same as for sanitary district liens.