An Act To Improve the Sewer District Rate Collection Procedures
Maine Legislature, Session 125, LD 0084
Committee Amendment CA_A_H25 (House)
Amends: 38 MRSA §1258

COMMITTEE AMENDMENT "'~ "to H.P. 72, L.D. 84, Bill, "An Act To Improve 
the Sewer District Rate Collection Procedures" 
Amend the bill by striking out evelything after the enacting clause and before the 
emergency clause and inserting the following: 
'Sec. 1. 38 MRSA §1258 is enacted to read: 
§1258. Qualified sewer districts; collection of unpaid rates 
The provisions of this section apply only to qualified sewer districts. 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Eligible sewer district" means a sewer district whose charter does not establish, 
or authorize the district to establish, a lien on real estate served by the district. 
B. "Qualified sewer district" means an eligible sewer district that has satisfied the 
requirements of subsection 5. 
C. "Rates" means any rate, toll, rent or other charge established by a sewer district 
pursuant to its chmter. 
D. "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 
qualified sewer district to secure the payment of the qualified 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 qualified 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 qualified sewer district in a civil action in any court of competent 
jurisdiction for any rates remaining unpaid. In addition to other methods established by 
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COMMITTEE AMENDMENT" f} .. to II .r. 72, L.D. 84 
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 qualified 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 qualified sewer district is willing to arrange installment payments 
of the outstanding debt. 
B. After the expiration 0[30 days and within one year after giving notice pursuant to 
paragraph A, the treasurer of the qualified 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 lhe 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 fi Ie in the office of the qualified sewer district a true copy of the cel1ificate 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 
qualified 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 qualified sewer district all the 
rights usually possessed by mortgagees, except that the qualified 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 qualified 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. 
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COMMITTEE AMENDMENT"P" to H.P. 72, L.D. 84 
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 qualified sewer district shall 
notify the party named on the mortgage and each record holder of a mOltgage 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 qualified sewer district is entitled to receive $3 plus all certified mail, 
return receipt requested, fees, which must be added to and become a Palt 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 impend ing 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 TreasUl'er 
G. The qualified 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 qualified 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 qualified sewer district derived from that certificate or any 
other recorded certificate for which the right of redemption expired 10 years or more 
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COMMITTEE AMENDMENT ·I+, to II.P. 72, L.D. 84 
prior to the foreclosure date of this discharge I ien, unless the qual ified sewer district 
has conveyed any interest based upon the title acquired from any ofthe affected liens. 
4. Waiver of qualified sewer district lien foreclosure. The treasurer of a qualified 
sewer district, when authorized by the trustees of the qualified 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 qualified sewer district 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. 
5. Adoption; referendum. An eligible sewer district may become a qualified sewer 
district in accordance with this subsection. The trustees of the eligible sewer district shall 
submit a proposal to become a qualified sewer district for approval in a districtwide 
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 
territory of the eligible sewer district if the usual voting place for persons located within 
the district is located outside the territory of the district. For the purpose of registering 
voters, the registrar of voters must be in session on the regular workday preceding the 
election. The question presented must conform to the following form: 
"Do you favor authorizing the (inseli name of sewer district) to become a 
qualified sewer district, allowing the district to exercise the lien authority 
established in the Maine Revised Statutes, Title 38, section 1258 with 
respect to unpaid rates?" 
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 trustees and entered upon the sewer district's records. 
Due certificate of the results must be filed by the clerk with the Secretary of State. 
The eligible sewer district becomes a qualified sewer district under this section only upon 
acceptance of the question by a majority of the legal voters within the district voting at 
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COMMITTEE AMENDMENT ··0" to H.P. 72, L.D. 84 
the referendum. Failure of approval by the majority 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 sewer district.' 
SUMMARY 
This amendment limits the application of the lien provisions in the bill to qualified 
sewer districts. A qualified sewer district is a district: 
J. Whose chal1er does not establish, or authorize the district to establish, a lien on 
real estate served by the district; and 
2. That has been approved to exercise the lien provisions of the law by the voters of 
the district voting in a referendum. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/01111 
?#LZC 
LD84 
LR 437(02) 
An Act To Improve the Sewer District Rate Collection Procedures 
Fiscal Note for Bill as Amended by Committee Amendment ,~" 
Committee: Energy, Utilities and Technology 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Minor revenue increase - General Fund 
Correctional and Judicial Impact Statements 
Increases the number of civil suits. 
The collection of additional filing fees may also increase General Fund revenue by minor amounts. 
Fiscal Detail and Notes 
Additional costs to the Department of Secretary of State associated with receiving and filing referenda results can be 
absorbed within existing budgeted resources. 
LR0437(02) - Fiscal Note - Page 1 of 1