An Act To Provide Model Language for Standard Sewer District Charters
Maine Legislature, Session 126, LD 1532
Committee: Energy, Utilities and Technology
Amends: 5 MRSA §18251, 14 MRSA §6321, 30-A MRSA §2356, 30-A MRSA §5061, 33 MRSA §593-A

Legislative Document 
No. 1532 
S.P. 579 
In Senate, May 14, 2013 
An Act To Provide Model Language for Standard Sewer District 
Charters 
Reported by Senator CLEVELAND of Androscoggin for the Joint Standing Committee on 
Energy, Utilities and Technology pursuant to Joint Order, S.P. 533. 
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed pursuant to Joint Rule 218. 
DAREK M. GRANT 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §18251, sub-§3, ¶B, as enacted by PL 2003, c. 630, Pt. A, §3, is 
amended to read: 
B.  An elected official or an official appointed for a fixed term.  Special provisions 
apply to certain officials as follows: 
(1) Membership of trustees of a water district is governed by Title 35-A, section 
6410, subsection 8; 
(2) Membership of trustees of a sanitary district is governed by Title 38, section 
1104; and 
(3) Membership of trustees of a sewer district is governed by Title 38, section 
1252 1036, subsections 7 and 8; 
Sec. 2.  14 MRSA §6321, 4th ¶, as amended by PL 2007, c. 391, §9, is further 
amended to read: 
For purposes of this section, "public utility easements" means any easements held by 
public utilities, as defined in Title 35-A, section 102; sewer districts, as defined in Title 
38, section 1251 1032, subsection 3 or 4; or sanitary districts, as formed under Title 38, 
chapter 11. 
Sec. 3.  30-A MRSA §2356, sub-§3, as amended by PL 1995, c. 616, §1, is 
further amended to read: 
3.  Trustees' compensation; water districts and sewer districts.  This chapter does 
not affect the procedures concerning changes in the compensation of trustees of water 
districts and sewer districts as provided in Title 35-A, section 6410, subsection 7, and 
Title 38, section 1252 1036, subsection 5 7. 
Sec. 4.  30-A MRSA §5061, sub-§5, as enacted by PL 2007, c. 174, §2, is 
amended to read: 
5.  Sewer utility.  "Sewer utility" means a municipal sewer department, a sewer 
district as defined in Title 38, section 1251 1032, subsection 3 or 4 or a sanitary district 
formed under Title 38, chapter 11. 
Sec. 5.  33 MRSA §593-A, sub-§1, ¶B, as enacted by PL 2003, c. 526, §1, is 
amended to read: 
B.    "Utility" means a public utility as defined in Title 35-A, section 102, sanitary 
district established under Title 38, chapter 11 or sewer district as defined in Title 38, 
section 1251 1032, subsection 3 or 4. 
Sec. 6.  38 MRSA c. 10 is enacted to read: 
CHAPTER 10 
STANDARD SEWER DISTRICT ENABLING ACT 
SUBCHAPTER 1 
GENERAL PROVISIONS 
§1031.  Short title 
This chapter may be known and cited as "the Standard Sewer District Enabling Act." 
§1032.  Definitions 
As used in this chapter, unless the context indicates otherwise, the following terms 
have the following meanings. 
1.  Charter.  "Charter" means a private and special law or series of private and 
special laws that establishes a sewer district and defines its responsibilities and 
authorities. 
2.  Rates.  "Rates" means a rate, toll, rent or other lawful charge established by a 
sewer district pursuant to its charter. 
3.  Sewer district.  "Sewer district" means a district, including a multipurpose district 
and standard district, created by a private and special law of the State whose purposes 
include collection, interception and treatment of sewerage.  Except as otherwise provided 
in this chapter or other applicable law, "sewer district" does not include a district whose 
sewerage activities are confined to interception and treatment. 
4.  Standard district.  "Standard district" means a sewer district that is formed and 
chartered by a private and special law in conformance with this chapter. 
§1033.  Scope and application 
The provisions of this chapter apply as follows. 
1.  Applicable to all sewer districts.  Except as otherwise provided in the statutory 
provisions listed in this subsection or in subsection 6, the following provisions are 
incorporated into the private and special laws governing a sewer district, and any part of a 
sewer district charter not in conformity with the following provisions is void. 
A.  Section 1036, subsection 7; 
B.  Section 1037; 
C.  Section 1040; 
D.  Section 1042; 
E.  Section 1045; 
F.  Section 1046, subsection 1 and subsection 4; 
G.  Section 1048, subsection 1, paragraph B and subsection 5; and 
H.  Section 1051. 
2.  Mandatory provisions from former chapter 12.  The following provisions 
apply to all sewer districts: 
A.  Section 1038; 
B.  Section 1049; 
C.  Section 1050; 
D.  Section 1054; and 
E.  Section 1055. 
3.  Standard provisions.  Except as provided in subsections 1 and 2 or other express 
provisions of this chapter, the provisions of this chapter do not apply to a sewer district 
unless the charter of that district incorporates those provisions. 
4.  Mandatory provisions.  Provisions governing the following aspects of a standard 
district are not included in this chapter and must be otherwise specified in a standard 
district charter: 
A.  The corporate name of the standard district; 
B.  The territorial limits of the standard district; 
C.  The number of trustees of the standard district, which in accordance with section 
1036 may not be less than 3; 
D.  The appointing authority responsible for appointing or the method of electing the 
first board of trustees; 
E.  The terms of the trustees who are elected or appointed subsequent to the first 
board. Terms of the first board are determined pursuant to section 1036, subsection 4; 
F.  Whether the trustees, subsequent to the first board, are appointed or elected; and 
G.  The procedures for the local referendum on the creation of the standard district. 
5.  Optional provisions.  A standard district charter may include provisions relating 
to the following: 
A.  Special qualifications of trustees; 
B.  Election of trustees by other than at-large elections as provided in section 1036, 
subsection 1.  Any provision for election of trustees by other than at-large elections 
must establish voting districts in conformance with the judicial principle of one 
person, one vote; 
C.  Additional purposes and powers of the standard district, such as authority to buy 
out an existing sewer company or to provide water or other utility services; 
D.  Areas outside the standard district's territory in which the standard district is 
authorized to provide sewer services; 
E.  Areas outside the standard district's territory in which the standard district is 
authorized to locate facilities; 
F.  Notwithstanding section 1053, a specific debt limit; 
G.  Towns with which the standard district is authorized to contract to provide sewer 
service; and 
H.  Any other provisions or duties necessary to accomplish the legislative purposes 
for creating the standard district. 
6.  Limited sewer districts; exception.  Except as otherwise provided in this 
subsection  or other applicable law, a sewer district whose sewerage collection activities 
are limited to collection performed pursuant to a contract with one or more municipalities 
is exempt from the requirements of this chapter.  The sewerage collection activities may 
include the ownership, maintenance or operation of the collection facilities but not the 
fixing of rate schedules for their use.  If the sewer district owns the collection facilities 
used under the contract, the sewer district is subject to the requirements of section 1042. 
7.  Guidelines for modified charters.  As determined appropriate by the Legislature, 
a standard district charter may include provisions that differ from the provisions in this 
chapter. 
§1034.  Exemption from taxation 
A standard district is a public municipal corporation within the meaning of Title 36, 
section 651 and the property of the district is exempt from taxation to the extent provided 
in that section. 
§1035.  Legislative amendment of charters 
Prior to acting on a proposed sewer district charter amendment, the joint standing 
committee of the Legislature having jurisdiction over energy and utility matters shall 
obtain written comments from the municipalities that lie in whole or in part within the 
sewer district. 
SUBCHAPTER 2 
GOVERNANCE 
§1036.  Trustees 
All of the affairs of a standard district must be managed by a board of trustees whose 
members must be residents of the standard district.  The number of trustees must be 
specified in the standard district's charter and may not be less than 3.  After selection of 
the first board, each trustee is nominated and elected or appointed as provided in the 
charter creating the standard district and in accordance with subsection 1 or 2, as 
applicable.  If the charter does not indicate whether trustees are appointed or elected, after 
the selection of the first board the trustees must be elected in accordance with subsection 
1. 
1.  Nominations and elections; vacancies.  Nominations and elections of trustees 
must be conducted in accordance with the laws relating to municipal elections in Title 
30-A, chapter 121. 
When the term of office of a trustee expires, the trustee's successor is elected at large by a 
plurality vote of the voters of the standard district.  For the purpose of election, a special 
election must be called and held on the date established by the trustees.  The election 
must be called by the trustees of the standard district in the same manner as town 
meetings are called and, for this purpose, the trustees are vested with the powers of 
municipal officers.  A vacancy is filled in the same manner for the unexpired term by a 
special election called by the trustees of the standard district. 
The trustees shall appoint a registrar of voters for the standard district, who may also be 
the registrar of voters for any town within the standard district, and fix the registrar's 
salary.  It is the registrar's duty to make and keep a complete list of all the registered 
voters resident in the standard district.  The list prepared by the registrar governs the 
eligibility of a voter.  Voters who are resident outside the territorial limits of the standard 
district, as defined in its charter, are not eligible voters and the registrar of voters shall 
exclude those voters from the registrar's lists. All warrants issued for elections by the 
trustees must show that only the voters resident within the territorial limits of the standard 
district are entitled to vote. 
2.  Appointments.  If the charter creating a standard district specifies that the trustees 
are appointed, the appointments must be made as provided in the charter. 
3.  Eligibility requirements.  When a trustee ceases to be a resident of a standard 
district, the trustee shall vacate the office of trustee and the vacancy is filled as provided 
in subsections 1 or 2, as applicable.  All trustees are eligible for reelection or 
reappointment, but a person who is a municipal officer, as defined in Title 30-A, section 
2001, subsection 10, of any town located, in whole or in part, within the standard district 
is not eligible for appointment, nomination or election as a trustee of that standard 
district. 
4.  First board.  The first board is appointed or elected as provided in the charter 
creating the standard district. At the first meeting, the initial trustees shall determine by 
agreement or, failing to agree, shall determine by lot the term of office of each trustee.  
The terms of the trustees must be determined in accordance with the following table. 
Total number of 
trustees 
year 
years 
years 
The trustees shall enter on their records the determination made.  Vacancies are filled 
pursuant to subsection 1 or 2, as applicable. 
At the first meeting, the trustees shall organize by electing from among their members a 
chair and a clerk, by adopting a corporate seal and by electing a treasurer who may or 
may not be a trustee. 
5.  Organization; conduct of business.  Within one week after each annual 
appointment or election, the trustees of a standard district shall meet for the purpose of 
electing a chair, treasurer and clerk in accordance with subsection 4 to serve for the 
ensuing year and until their successors are elected or appointed and qualified.  The 
trustees, from time to time, may choose and employ and fix the compensation of any 
other necessary officers and agents, who serve at the pleasure of the trustees.  The 
treasurer shall furnish bond in the sum and with sureties approved by the trustees. The 
standard district shall pay the cost of the bond. 
The trustees may adopt and establish bylaws consistent with the laws of this State and 
necessary for the convenience and the proper management of the affairs of the standard 
district and perform other acts within the powers delegated by law to the trustees. 
The trustees must be sworn to the faithful performances of their duties including the 
duties of a member who serves as clerk or clerk pro tem.  The trustees shall publish an 
annual report that includes a report of the treasurer. 
Business of the standard district must be conducted in accordance with the applicable 
provisions of the Freedom of Access Act. 
6.  Decisions of the board.  All decisions of the board of trustees must be made by a 
majority of those present and voting, except that a vote to approve the issuing of any 
bond, note or other evidence of indebtedness payable within a period of more than 12 
months after the date of issuance must be approved by a majority of the entire board.  A 
quorum of the board of trustees consists of the total number of authorized trustees divided 
by 2 and, if necessary to obtain a whole number, the resulting number rounded up to the 
next whole number. 
Trustees are subject to the conflict of interest provisions of Title 30-A, section 2605. 
7.  Trustees compensation; applicable to all sewer districts.  The trustees of a 
sewer district receive compensation as recommended by the trustees and approved by 
majority vote of the municipal officers in municipalities representing a majority of the 
population within the sewer district, including compensation for any duties they perform 
as officers as well as for their duties as trustees.  Certification of the vote must be 
recorded with the Secretary of State and recorded in the bylaws.  Compensation for duties 
as trustees must be based on an amount specified in the bylaws for each meeting actually 
attended plus reimbursement for travel and expenses, with the total not to exceed a  
specific amount as specified in the bylaws.  Compensation schedules in effect on January 
1, 2013 continue in effect until changed. 
This subsection is deemed to be incorporated into the private and special laws governing 
a sewer district, and any part of a sewer district charter not in conformity with this 
subsection is void, unless the sewer district's charter expressly references this subsection 
or former section 1252, subsection 5 and specifically provides that this subsection or 
former section 1252, subsection 5 does not apply. 
8.  Trustees retirement; applicable to all sewer districts.  A person who has not 
been a trustee of a sewer district prior to January 1, 1987, or who is not a full-time 
employee, is not eligible to become member of the Maine Public Employees Retirement 
System as a result of the person's selection as a trustee. 
This subsection is deemed to be incorporated into the private and special laws governing 
sewer district, and any part of a sewer district charter not in conformity with this 
subsection is void, unless the sewer district's charter expressly references this subsection 
or former section 1252, subsection 6 and specifically provides that this subsection or 
former section 1252, subsection 6 does not apply. 
9.  Expenses.  The trustees of a standard district may obtain an office and incur 
necessary expenses. 
§1037.  Coordination with municipal planning; applicable to all sewer districts 
The following provisions facilitate coordination of municipal planning and sewer 
extension planning. 
1.  Growth management.  The trustees of a sewer district shall cooperate with 
municipal officials in the development of municipal growth management and other land 
use plans and ordinances. 
2.  Development that affects the district.  Municipal officers shall cooperate with 
the trustees of a sewer district during the consideration of development applications that 
may affect the operations of the sewer district. 
This section is deemed to be incorporated into the private and special laws governing 
a sewer district, and any part of a sewer district charter not in conformity with this section 
is void, unless the sewer district's charter expressly references this section or former 
section 1252, subsection 9 and specifically provides that this section or former section 
1252, subsection 9 does not apply. 
§1038.  Reorganization as sanitary districts 
A sewer district existing on January 1, 2013 may, but is not required to, reorganize as 
a sanitary district under the Maine Sanitary District Enabling Act by referendum in 
accordance with section 1101, subsection 1-A.  The referendum may be initiated by the 
voters or by a majority of the trustees. 
SUBCHAPTER 3 
POWERS 
§1039.  Powers 
Except as otherwise provided by law, for the purposes of its incorporation, a standard 
district may locate, construct and maintain pipes, drains, sewers, conduits, treatment 
plants, pumping stations and other necessary structures and equipment for the collection, 
interception and treatment of sewerage, commercial and industrial waste and storm and 
surface water for the health, welfare, comfort and convenience of the inhabitants of the 
standard district. 
All incidental powers, rights and privileges necessary to accomplish the objectives of 
this chapter are granted to a standard district . 
§1040.  Right of eminent domain; applicable to all sewer districts  
The authority and procedures for the exercise of eminent domain by a sewer district 
must conform to sections 1152, 1152-A, 1153 and 1154.  In addition, a sewer district may 
not take by right of eminent domain any of the property or facilities of any other public 
utility used or acquired for future use by the owner of the public utility in the 
performance of a public duty, unless expressly authorized by a special Act of the 
Legislature. 
This section is deemed to be incorporated into the private and special laws governing 
a sewer district, and any part of a sewer district charter not in conformity with this section 
is void, unless the sewer district's charter expressly references this section or former 
section 1252, subsection 2 and specifically provides that this subsection or former section 
1252, subsection 2 does not apply. 
§1041.  Crossing other public utilities and railroad corporations 
If a standard district, in constructing, maintaining or replacing any of its facilities, 
must cross property of another public utility or railroad corporation, the standard district 
must obtain the consent of the other public utility or railroad corporation and undertake 
the work in accordance with conditions established by agreement.  If, within 30 days after 
requesting consent, the standard district fails to reach an agreement with the public utility 
or railroad corporation the standard district may petition as follows. 
1.  Public utility.  In the case of crossing property of a public utility, the standard 
district may petition the Public Utilities Commission to determine the time, place and 
manner of crossing. All work done on the property of the public utility must be done 
under the supervision and to the satisfaction of the public utility or as prescribed by the 
Public Utilities Commission. 
2.  Railroad corporation.  In the case of crossing the property of a railroad 
corporation,  the standard district may petition the Department of Transportation to 
determine the time, place and manner of crossing.  All work done on the property of the 
railroad corporation must be done under the supervision and to the satisfaction of the 
railroad corporation or as prescribed by the Department of Transportation. 
All work under this section must be done at the expense of the standard district. 
§1042.  Sewer extensions; applicable to all sewer districts 
Sewer extensions are governed by this section. 
1.  Written assurance from municipality.  A sewer district may not construct any 
sewer extension unless it acquires from the municipal officers or the designee of the 
municipal officers of any municipality through which the sewer extension will pass 
written assurance that: 
A.  Any development, lot or unit intended to be served by the sewer extension is in 
conformity with any adopted municipal plans and ordinances regulating land use; and 
B.  The sewer extension is consistent with adopted municipal plans and ordinances 
regulating land use. 
If the municipal officers fail to issue a response to a written request from a sewer district 
for written assurance within 45 calendar days of receiving the request in writing, the 
written assurance is deemed granted. 
Not less than 7 days prior to the meeting at which the trustees will take final action on 
whether to proceed with the extension, the trustees of the sewer district shall publish 
notice of the proposed extension in a newspaper having a general circulation that includes 
all municipalities through which the sewer extension will pass. 
2.  Review of municipal decision; applicable to all sewer districts.  For an 
intermunicipal sewer extension, when written assurance is denied by municipal officers 
pursuant to subsection 1, an aggrieved party may appeal, within 15 days of the decision, 
to the Department of Agriculture, Conservation and Forestry for a review of the 
municipal officers' decision. Notwithstanding Title 5, chapter 375, subchapter 4, the 
following procedures apply to the review by the Department of Agriculture, Conservation 
and Forestry. 
A.  The Department of Agriculture, Conservation and Forestry may request any 
additional information from the sewer district, the municipality or the department. All 
information requested must be submitted within 30 days of the request, unless an 
extension is granted by the Department of Agriculture, Conservation and Forestry. 
B.  Within a reasonable time, the Department of Agriculture, Conservation and 
Forestry shall hold a hearing.  The Department of Agriculture, Conservation and 
Forestry shall give at least 7 days' written notice of the hearing to the sewer district, 
the municipality and the party that requested the hearing.  The hearing is informal and 
the Department of Agriculture, Conservation and Forestry may receive any 
information it considers necessary. 
C.  Within 15 days of the hearing and within 60 days of the request for review, the 
Department of Agriculture, Conservation and Forestry shall make a decision that 
must include findings of fact on whether the sewer extension proposal is inconsistent 
with adopted municipal plans and ordinances regulating land use.  The decision of the 
Department of Agriculture, Conservation and Forestry constitutes final agency action. 
D.  Notwithstanding section 1, if the Department of Agriculture, Conservation and 
Forestry determines that the sewer extension proposal is not inconsistent with 
adopted municipal plans and ordinances regulating land use, the Department of 
Agriculture, Conservation and Forestry shall issue written assurance that the proposal 
is consistent with adopted municipal plans and ordinances regulating land use and the 
sewer district may construct the sewer extension. 
This section is deemed to be incorporated into the private and special laws governing 
a sewer district, and any part of a sewer district charter not in conformity with this section 
is void, unless the sewer district's charter expressly references this section or former 
section 1252, subsection 7 and specifically provides that this subsection or former section 
1252, subsection 7 does not apply. 
§1043.  Conditions for carrying out work 
When a standard district enters, digs up or excavates any public way or other land to 
lay or maintain its sewers, drains or pipes, constructing manholes or catch basins or other 
appurtenances or for any other purpose, the work must be done expeditiously.  On 
completion of the work the standard district shall restore the public way or land to its 
condition prior to such work or to a condition equally good.  If the work is being 
undertaken in a municipality and could potentially endanger travel on a public way, the 
municipal officers of the municipality in which the work is being done may order a 
temporary closing of the public way and of any intersecting way.  Upon request of the 
standard district, the public way must remain closed to public travel until the municipal 
officers of the unit of local government determines the public way is restored to a 
condition safe for traffic.  If the work is being undertaken in an unorganized territory and 
could potentially endanger travel on a public way, the commissioners of the county where 
the public way is located may order a temporary closing of the public way and of any 
intersecting way.  Upon request of the standard district, the public way must remain 
closed to public travel until the county commissioners determine the public way is 
restored to a condition safe for traffic. 
§1044.  Contracts 
A standard district, through its trustees, in order to carry out the purposes of its 
incorporation, may contract with a person, standard district, utility or corporation or with 
a municipality, the State or other governmental entity. 
§1045.  Lease of property; applicable to all sewer districts 
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 necessary 
action, 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. 
This section is deemed to be incorporated into the private and special laws governing 
a sewer district, and any part of a sewer district charter not in conformity with this section 
is void, unless the sewer district's charter expressly references this section or former 
section 1252, subsection 10 and specifically provides that this subsection or former 
section 1252, subsection 10 does not apply. 
§1046.  Enforcement 
Sewer districts have enforcement powers as specified in this section. 
1.  Violation of standards by an industrial user; applicable to all sewer districts.  
A sewer district may seek in a civil action injunctive relief from an industrial user that 
violates a pretreatment standard or requirement, administered by the sewer district.  The 
sewer district may seek a civil penalty of up to $1,000 per day for each violation by an 
industrial user of a pretreatment standard or requirement. 
This subsection is deemed to be incorporated into the private and special laws governing 
a sewer district, and any part of a sewer district charter not in conformity with this 
subsection is void, unless the sewer district's charter expressly references this subsection 
or former section 1252, subsection 8 and specifically provides that this subsection or 
former section 1252, subsection 8 does not apply. 
2.  Injury to property of standard districts.  A person may not place, discharge or 
leave any offensive or injurious matter or material on or in the conduits, catch basins or 
receptacles of a standard district formed under this chapter contrary to its regulations or 
knowingly injure any conduit, pipe, reservoir, flush tank, catch basin, manhole, outlet, 
engine, pump or other property held, owned or used by the standard district. 
A person who violates this subsection is liable to pay twice the amount of the damages to 
the standard district to be recovered in any proper action and is subject to a civil penalty 
not to exceed $2,500 for each violation, payable to the standard district.  The civil penalty 
is recoverable in a civil action. 
3.  Required connection.  Except as provided in subsection 4, upon receiving a 
request from a standard district to connect a building located in the territory of the 
standard district that is accessible to a sewer or drain of the standard district and that is 
intended for human habitation or occupancy or that has facilities for discharge or disposal 
of waste water or commercial or industrial waste, the owner of that building shall arrange 
to have the building connected through a sanitary sewer or drainage system to the 
standard district's accessible sewer or drain in the most direct manner possible.  If 
feasible, each building requiring connection must have its own separate connection.  The 
connection must be completed within 90 days of the receipt by the owner of the request, 
or within any extended period requested by the owner and agreed to by the trustees.  For 
purposes of this subsection, "owner" includes the owners of record or any person against 
whom property taxes on the building are assessed. 
A person who receives a notice in accordance with this subsection to connect to a 
building and fails to connect to the building in accordance with this subsection is subject 
to a civil penalty not to exceed $2,500, payable to the standard district.  This penalty is 
recoverable in a civil action. 
4.  Connections not required; applicable to all sewer districts.  An existing 
building that is already served by a private sewer system is not required to connect with a 
sewer or drain of a sewer district as long as the private sewer or drainage system 
functions in a satisfactory and sanitary manner and does not violate applicable law or 
ordinance applicable to the connection with a sewer or drain or a sewer district or any 
applicable requirements of the state plumbing code, as determined by the municipal 
plumbing inspector or the municipal plumbing inspector's alternate, or, in the event that 
both are trustees or employees of the sewer district, the Department of Health and Human 
Services, Division of Health Engineering. 
This subsection is deemed to be incorporated into the private and special laws governing 
a sewer district, and any part of a sewer district charter not in conformity with this 
subsection is void, unless the sewer district's charter expressly references this subsection 
or former section 1252, subsection 3 and specifically provides that this subsection or 
former section 1252, subsection 3 does not apply. 
5.  Permissive connection.  A person not otherwise required to connect a private 
sewer into a sewer of a standard district may connect to the standard district's sewer if 
that person obtains a permit from the standard district and pays any charges required by 
this subsection.  The clerk of the standard district shall record the permit in the records of 
the standard district. 
A.  If construction of the standard district's sewer is complete at the proposed point of 
entry of the private sewer and the standard district has established an entrance charge 
for entry at that location, the person seeking to connect the private sewer at that 
location shall pay the entrance charge before the connection is undertaken. 
B.  If the standard district's sewer is under construction and not completed at the point 
of the proposed entry of the private sewer, the person seeking to connect the private 
sewer at that location is not required to pay an entrance charge. 
§1047.  Inspection of sewers 
The officers or agents of a standard district have free access to all premises served by 
the standard district's sewers, at all reasonable hours, for inspection of plumbing and 
sewage fixtures, to ascertain the quality and quantity of sewage discharged and the 
manner of discharge, and to enforce this chapter and the rules prescribed by the trustees 
of the standard district. 
SUBCHAPTER 4 
RATES AND FEES 
§1048.  Rates and fees 
A person, firm and corporation, whether public, private or municipal, shall pay to the 
treasurer of a standard district the rates established by the trustees for the sewer or 
drainage service used or available with respect to their real estate as long as those rates 
are consistent with this section. 
1.  Uniform rates.  Rates must be uniform within a standard district whenever the 
cost to the standard district of installation and maintenance of sewers or their 
appurtenances and the cost of service is substantially uniform, except that: 
A.  A standard district may establish a higher rate in sections where, for any reason, 
the cost to the standard district of construction and maintenance, or the cost of 
service, exceeds the average as long as the higher rates are uniform throughout the 
sections where the rates apply; and 
B.  Trustees may reduce the impact fee or connection fee, as those terms are defined 
in Title 30-A, section 5061, for sewer service to newly constructed affordable 
housing in accordance with Title 30-A, chapter 202-A. 
This paragraph is deemed to be incorporated into the private and special laws 
governing a sewer district, and any part of a sewer district charter not in conformity 
with this paragraph is void, unless the sewer district's charter expressly references this 
paragraph or former section 1252, subsection 12 and specifically provides that this 
paragraph or former section 1252, subsection 12 does not apply. 
2.  Multidistrict rates.  Notwithstanding any other provision of law, a standard 
district that shares supplies or contracts for services with another standard district shall 
establish rates mutually agreeable to the trustees of each participating standard district. 
3.  Readiness to serve.  A standard district's rates may include readiness to serve 
rates charged against owners of real estate abutting or accessible but not connected to 
sewers or drains of the standard district, whether or not the real estate is improved. 
4.  Interest on late payments.  A standard district may charge and collect interest on 
delinquent accounts at a rate not to exceed the highest lawful rate set by the Treasurer of 
State for municipal taxes. 
5.  Adoption of rate schedule.  Prior to the adoption of a new rate schedule, the 
trustees shall hold a public hearing regarding the proposed rate schedule. The trustees 
shall publish the proposed rates and notice of the hearing not less than once in a 
newspaper having a general circulation in the district not less than 7 days prior to the 
hearing. The standard district shall mail to each ratepayer a notice of the public hearing 
and the proposed rate at least 14 days prior to the hearing. 
This subsection is deemed to be incorporated into the private and special laws governing 
a sewer district, and any part of a sewer district charter not in conformity with this 
subsection is void, unless the sewer district's charter expressly references this subsection 
or former section 1252, subsection 1 and specifically provides that this subsection or 
former section 1252, subsection 1 does not apply. 
6.  Revenue from rates.  Rates established by the trustees in accordance with this 
chapter must be fixed and adjusted so as to produce in aggregate revenue at least 
sufficient, together with any other revenues, to: 
A.  Pay the current expenses of operating and maintaining the sewerage, drainage and 
treatment system of the standard district; 
B.  Pay the principle of, premium, if any, and interest on all bonds and notes issued 
by the standard district under this chapter as they become due and payable; 
C.  Create and maintain reserves as may be required by any trust agreement or 
resolution securing bonds and notes; 
D.  Provide funds for paying the cost of all necessary repairs, replacements and 
renewals of the sewerage, drainage and treatment systems of the standard district; and 
E.  Pay or provide for all amounts that the standard district may be obligated to pay or 
provide for by law or contract, including any resolution or contract with or benefit of 
the holders of its bonds and notes. 
7.  Rates in an unorganized territory. If a standard district encompasses 
unorganized territory, rates applicable to real estate in that unorganized territory must be 
charged against the person or entity in possession of the real estate. 
8.  Civil action for unpaid rates.  If rates under this section are not paid, and a 
standard district does not collect unpaid rates as a qualified sewer district under section 
1050, then the standard district may maintain a civil action against the person who has not 
paid rates for the amount of the unpaid rates plus 10% interest. 
§1049.  Waiver of sewer district lien foreclosure 
A sewer district, including but not limited to a qualified sewer district subject to 
section 1050, may use the following provisions to waive a lien foreclosure. 
1.  Waiver.  The treasurer of a sewer district, including a qualified sewer district, 
when authorized by the trustees of the sewer district, may waive the foreclosure of a 
sewer district lien mortgage created pursuant to the sewer district's charter by recording in 
the registry of deeds a waiver of foreclosure before the period for the right of redemption 
from the lien mortgage has expired.  The lien mortgage remains in full effect after the 
recording of a waiver.  Other methods established by law for the collection of any unpaid 
rate are not affected by the filing of a waiver under this section. 
2.  Form.  The waiver of foreclosure under subsection 1 must be substantially in the 
following form. 
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 district and notarized. A 
copy of the form must be provided to the party named on the lien mortgage and each 
record holder of a mortgage on the real estate. 
§1050.  Qualified sewer districts; collection of unpaid rates 
The provisions of this section apply only to a qualified sewer district. 
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 4; or a standard district that includes this section in its 
charter. 
C.  "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 
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 of 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 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 qualified 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 
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. 
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 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 qualified 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 1050 
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 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 
prior to the foreclosure date of this discharge lien, unless the qualified sewer district 
has conveyed any interest based upon the title acquired from any of the affected liens. 
4.  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 in Title 30-A, chapter 121, 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 
work day preceding the election.  The question presented must conform to the following 
form: 
"Do you favor authorizing the (insert name of eligible 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 1050 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 eligible 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 eligible sewer 
district voting at 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 eligible sewer district. 
§1051.  Landlord access to tenant bill payment information; applicable to all sewer 
districts 
If a tenant is billed for sewer service provided to property rented by the tenant and 
nonpayment for the service may result in a lien against the property, the sewer district 
shall provide to the landlord or the landlord’s agent, on request of the landlord or the 
landlord's agent, the current status of the tenant’s account, including any amounts due or 
overdue. 
This section is deemed to be incorporated into the private and special laws governing 
a sewer district, and any part of a sewer district charter not in conformity with this section 
is void, unless the sewer district's charter expressly references this section or former 
section 1252, subsection 11 and specifically provides that this subsection or former 
section 1252, subsection 11 does not apply. 
SUBCHAPTER 5 
BONDS, INVESTMENT AND DEBT LIMIT 
§1052.  Authorized to receive government aid, borrow money and issue bonds and 
notes 
A standard district is authorized to receive government aid, borrow money and issue 
bonds and notes in accordance with this section. 
1.  Authorization of bonds.  A standard district may provide by resolution of its 
board of trustees, without district vote, for the borrowing of money and the issuance from 
time to time of bonds for any of its corporate purposes, including, but not limited to: 
A.  Paying and refunding its indebtedness; 
B.  Paying any necessary expenses and liabilities incurred under this chapter, 
including organizational and other necessary expenses and liabilities, whether 
incurred by the standard district or any municipality within the standard district or 
any person residing in unorganized territory encompassed by the standard district.  
The standard district may reimburse any municipality within the standard district or 
any person residing in unorganized territory encompassed by the standard district for 
any expenses incurred or paid by the municipality or person; 
C.  Paying costs directly or indirectly associated with acquiring properties, paying 
damages, laying sewers, drains and conduits, constructing, maintaining and operating 
sewage and treatment plants or systems and making renewals, additions, extensions 
and improvements to the same and to cover interest payments during the period of 
construction and for any period after construction as the trustees may determine; 
D.  Providing  reserves for debt service, repairs and replacements or other capital or 
current expenses as may be required by a trust agreement or resolution securing 
bonds; and 
E.  Any combination of these purposes. 
Bonds may be issued under this section as general obligations of the standard district or 
as special obligations payable solely from particular funds.  The principal of, premium, if 
any, and interest on all bonds are payable solely from the funds provided for that purpose 
from revenues.  For purposes of this section, "revenues" means and includes the proceeds 
of bonds, all revenues, rates, fees, entrance charges, assessments, rents and other receipts 
derived by the standard district from the operation of its sewer system and other 
properties, including, but not limited to, investment earnings and the proceeds of 
insurance, condemnation, sale or other disposition of properties.  All bonds issued by a 
standard district under this section are legal obligations of the standard district, and a 
standard district whose charter includes this section is declared to be a quasi-municipal 
corporation within the meaning of Title 30-A, section 5701.  Bonds may be issued under 
this section without obtaining the consent of any commission, board, bureau or agency of 
the State or of any municipality encompassed by the district and without any other 
proceedings or the happening of other conditions other than those proceedings or 
conditions that are specifically required by the standard district's charter or other 
applicable law.  Bonds issued under this section do not constitute a debt or liability of the 
State or of any municipality encompassed by the standard district or a pledge of the faith 
and credit of the State or any such municipality, but the bonds are payable solely from the 
funds provided for that purpose, and a statement to that effect must be recited on the face 
of the bonds. 
2.  Notes.  A standard district may provide by resolution of its trustees, without 
district vote, for the issuance from time to time of notes in anticipation of bonds 
authorized under this section and of notes in anticipation of the revenues to be collected 
or received in any year or in anticipation of the receipt of federal or state grants or other 
aid.  The issue of these notes is governed by the applicable provisions of this chapter 
relating to the issue of bonds, except that notes in anticipation of revenue must mature no 
later than one year from their respective dates and notes issued in anticipation of federal 
or state grants or other aid and renewals of grants or aids must mature no later than the 
expected date of receipt of those grants or aid.  Notes in anticipation of revenue issued to 
mature less than one year from their dates may be renewed from time to time by the issue 
of other notes, except that the period from the date of an original note to the maturity of 
any note issued to renew or pay the original note or the interest on a note may not exceed 
one year. 
A standard district is authorized and empowered to enter into agreements with the State 
or the United States, or any agency of either, or any municipality, corporation, 
commission or board authorized to grant or loan money to or otherwise assist in the 
financing of projects of the type that that district is authorized to carry out and to accept 
grants and borrow money from any government, agency, municipality, corporation, 
commission or board as may be necessary or desirable to accomplish the purposes of the 
standard district. 
3.  Maturity; interest; form; temporary bonds.  The bonds issued under this 
section must be dated, must mature at such time or times not exceeding 40 years from 
their date or dates and must bear interest at such rate or rates as may be determined by the 
trustees, and may be made redeemable before maturity, at the option of the standard 
district, at the price or prices and under the terms and conditions as fixed by the trustees 
prior to the issuance of the bonds.  The trustees shall determine the form of the bonds, 
including any interest coupons to be attached to the bonds, and the manner of execution 
of the bonds and shall fix the denomination or denominations of the bonds and the place 
or places of payment of principal and interest, which may be at any bank or trust 
company inside or outside the State.  Bonds must be executed in the name of the standard 
district by the manual or facsimile signature of the officer or officers as authorized in the 
resolution to execute the bonds, but at least one signature on each bond must be a manual 
signature.  Coupons, if any, attached to the bonds must be executed with the facsimile 
signature of the officer or officers of the standard district designated in the resolution.  In 
case any officer, whose signature or a facsimile of whose signature appears on any bonds 
or coupons, ceases to be such officer before the delivery of the bonds, the signature or its 
facsimile is valid and sufficient for all purposes as if the officer had remained in office 
until the delivery. 
Notwithstanding any of the other provisions of this chapter or any recitals in any bonds 
issued under this section, all bonds issued under this section are negotiable instruments 
under the laws of this State.  The bonds may be issued in coupon or registered form, or 
both, as the trustees may determine, and provision may be made for the registration of 
any coupon bonds as to principal alone and as to both principal and interest and for the 
reconversion into coupon bonds of any bonds registered as to both principal and interest.  
The trustees may sell bonds, either at public or private sale and for the price as they 
determine to be for the best interests of the standard district.  The proceeds of the bonds 
of each issue must be used solely for the purpose for which those bonds have been 
authorized and must be disbursed in the manner and under the restrictions, if any, that the 
trustees provide, in the resolution authorizing the issuance of the bonds or in the trust 
agreement securing the bonds.  The resolution providing for the issuance of bonds and 
any trust agreement securing the bonds may contain limitations upon the issuance of 
additional bonds as the trustees determine proper, and these additional bonds must be 
issued under such restrictions and limitations prescribed by that resolution or trust 
agreement.  Prior to the preparation of definitive bonds, the trustees may, under the same 
restrictions, issue interim receipts or temporary bonds, with or without coupons, 
exchangeable for definitive bonds when those bonds are executed and are available for 
delivery. The trustees may provide for the replacement of any bond that is mutilated, 
destroyed or lost. 
4.  Pledges and covenants; trust agreement.  In the discretion of the trustees of a 
standard district, each or any issue of bonds may be secured by a trust agreement by and 
between the standard district and a corporate trustee, which may be any trust company 
located within or outside the State. 
A.  The resolution authorizing the issuance of the bonds or the trust agreement may 
pledge or assign, in whole or in part, the revenues and other money held or to be 
received by the standard district and any accounts and contract or other rights to 
receive the revenues of the money, whether then existing or coming into existence 
and whether then held or acquired by the standard district, and the proceeds of the 
revenues or the money, but may not convey or mortgage the sewer system or any 
other properties of the standard district.  The resolution may also contain provisions 
for protecting and enforcing the rights and remedies of the bondholders that are  
reasonable and proper and not in violation of law, including, but not limited to, 
covenants setting forth the duties of the standard district and the trustees in relation to 
the acquisition, construction, reconstruction, improvement, repair, maintenance, 
operation and insurance of its sewer system or any of its other properties, the fixing 
and revising of rates, fees and charges, the application of the proceeds of bonds, the 
custody, safeguarding and application of revenues, defining defaults and providing 
for remedies in the event of defaults that may include the acceleration of maturities, 
the establishment of reserves and the making and amending of contracts.  The 
resolution or trust agreement may set forth the rights and remedies of the bondholders 
and of the trustee, if any, and may restrict the individual right of action by 
bondholders as is customary in trust agreements or trust indentures securing bonds or 
debentures of corporations. In addition, the resolution or trust agreement may contain 
such other provisions as the trustees determine reasonable and proper for the security 
of the bondholders.  All expenses incurred in carrying out the resolution or trust 
agreement may be treated as a part of the cost of operation.  The pledge by any 
resolution or trust agreement is valid and binding and is deemed continuously 
perfected for the purposes of the Uniform Commercial Code from the time when the 
pledge is made.  All revenues, money, rights and proceeds so pledged and received 
by the standard district are immediately subject to the lien of the pledge without any 
physical delivery or segregation of the revenues and proceeds or further action under 
the Uniform Commercial Code or otherwise, and the lien of the pledge is valid and 
binding as against all parties having claims of any kind in tort, contract or otherwise 
against the standard district irrespective of whether those parties have notice of the 
lien. 
B.  The resolution authorizing the issuance of bonds under this section or any trust 
agreement securing those bonds may provide that all or a sufficient amount of 
revenues, after providing for the payment of the cost of repair, maintenance and 
operation and reserves  as may be provided in the resolution or trust agreement, must 
be set aside at regular intervals as provided in the resolution or trust agreement and 
deposited in a fund for the payment of the interest on and the principal of bonds 
issued under this section as the interest and principle become due and for the 
redemption price or purchase price of bonds retired by call or purchase.  The use and 
disposition of money of the fund are subject to any regulations provided in the 
resolution authorizing the issuance of the bonds or in the trust agreement securing the 
bonds and, except as may otherwise be provided in the resolution or trust agreement, 
the fund must be a fund for the benefit of all bonds without distinction or priority of 
one over another. 
5.  Trust funds.  Notwithstanding any other law, all funds received pursuant to the 
authority of a standard district's charter are trust funds, to be held and applied solely as 
provided in the charter of the standard district.  The resolution authorizing the issuance of 
bonds or the trust agreement securing the bonds must provide that any officer to whom, 
or bank, trust company or other fiscal agent to which, the funds are paid must act as 
trustee of the funds and must hold and apply the funds for the purposes of the standard 
district in accordance with its charter, subject to any regulations as may be provided in 
the resolution or trust agreement or as may be required by the charter of the standard 
district. 
6.  Remedies.  A holder of bonds issued under this section  or of any of the coupons 
appertaining to the bonds, and the trustee under a trust agreement, except to the extent the 
rights given may be restricted by the resolution authorizing the issuance of those bonds or 
trust agreement, may, either at law or in equity, by suit, action, mandamus or other 
proceeding, including proceedings for the appointment of a receiver to take possession 
and control of the properties of the standard district, protect and enforce all rights under 
the laws of the State, including this section, or under the resolution or trust agreement. A 
holder of bonds issued under this section or of any of the coupons appertaining to the 
bonds and the trustee under a trust agreement may enforce and compel the performance 
of all duties required by the standard district charter or by the resolution or trust 
agreement to be performed by the standard district or by any officer of the standard 
district, including the fixing, charging and collecting of rates, fees and charges for the use 
of or for the services and facilities furnished by the standard district. 
7.  Refunding bonds.  A standard district by resolution of its board of trustees, 
without district vote, may issue refunding bonds for the purpose of paying any of its 
bonds at maturity or upon acceleration or redemption.  The refunding bonds may be 
issued at a time prior to the maturity or redemption of the refunded bonds that the board 
of trustees determines to be in the public interest.  The refunding bonds may be issued in 
sufficient amounts to pay or provide the principal of the bonds being refunded, together 
with any redemption premium, any interest accrued or to accrue to the date of payment of 
the bonds, the expenses of issue of the refunding bonds, the expenses of redeeming the 
bonds being refunded and any reserves for debt service or other capital or current 
expenses from the proceeds of the refunding bonds that may be required by a trust 
agreement or resolution securing bonds.  The issue of refunding bonds, the maturities and 
other details of those bonds, the security for those bonds, the rights of the holders and the 
rights, duties and obligations of the standard district in respect to those bonds are 
governed by the applicable provisions of the standard district charter relating to the issue 
of bonds other than refunding bonds. 
8.  Tax exemption.  All bonds, notes or other evidences of indebtedness issued under 
the standard district's charter and the transfer of and the income from those bonds, notes 
or other evidences of indebtedness, including any profit made on the sale, are exempt 
from taxation in the State. 
9.  Bonds declared legal investments.  Bonds and notes issued by a standard district 
under this section are securities in which all public officers and public bodies of the State 
and its political subdivisions, all insurance companies and associations and other persons 
carrying on an insurance business, trust companies, banks, bankers, banking associations, 
savings banks and savings associations, including savings and loan associations, credit 
unions, building and loan associations, investment companies, executors, administrators, 
trustees and other fiduciaries, pension, profit-sharing, retirement funds and other persons 
carrying on a banking business, and all other persons authorized to invest in bonds or 
other obligations of the State may properly and legally invest funds, including capital in 
their control or belonging to them.  The bonds and notes are securities that may properly 
and legally be deposited with and received by any state, municipal or public officer, or 
any agency or political subdivision of the State, for any purpose for which the deposit of 
bonds or other obligations of the State is authorized by law. 
§1053.  Debt limit; approval by voters of a standard district 
1.  Debt limit proposed.  Prior to issuing on behalf of a standard district any bond, 
note or other evidence of indebtedness payable within a period of more than 12 months 
after the date of issuance, the trustees shall propose a debt limit for the standard district 
that the trustees must submit for approval in a districtwide referendum.  The referendum 
must be called, advertised and conducted according to the law relating to municipal 
elections in Title 30-A, chapter 121, except the standard district's 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 standard district if the usual voting place for persons located in 
the standard district is located outside the territory of the standard 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 be in substantially the 
following form: 
"Do you favor establishing the debt limit of the (insert name of standard district) at 
(insert amount)?" 
The voters shall indicate by a cross or check mark placed against the word "Yes" or "No" 
their opinion on the question. 
2.  Results declared.  The results of the referendum held under subsection 1 must be 
declared by the trustees and entered upon the standard district's records.  Due certificate 
of the results must be filed by the clerk with the Secretary of State. 
3.  Effective date.  A debt limit proposal becomes effective upon its acceptance by a 
majority of the legal voters within the standard district voting at 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 standard district. 
4.  Total debt.  Trustees may not issue any bond, note or other evidence of 
indebtedness payable within a period of more than 12 months after the date of issuance 
unless the total amount of the debt issued by the trustees is no more than the amount 
approved by referendum under this section. 
§1054.  Authority to increase debt limits; sewer districts 
1.  Debt limit.  Notwithstanding any provision of a sewer district's charter to the 
contrary, a sewer district may increase its debt limit by referendum in accordance with 
this section.  A sewer district is not required to use the procedure provided by this section 
and may seek to increase its debt limit by any other lawful means, including pursuant to 
any other means described in the sewer district's charter or by seeking legislative 
amendment to its charter. 
2.  Referendum.  If a sewer district chooses to increase its debt limit pursuant to this 
section, the governing body of the sewer district shall propose a new debt limit and 
submit the proposal for approval at a districtwide referendum.  The referendum must be 
called, advertised and conducted according to the law relating to municipal elections in 
Title 30-A, chapter 121, 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 
sewer district if the usual voting place for persons located within the sewer district is 
located outside the territory of the sewer district.  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: 
"Do you favor changing the debt limit of the (insert name of sewer district) from 
(insert current debt limit) to (insert proposed debt limit)?" 
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 sewer district and entered upon 
the sewer district's records.  Due certificate of results must be filed by the clerk with the 
Secretary of State. 
3.  Approval.  A debt limit proposal becomes effective upon its acceptance by a 
majority of the legal voters within the sewer district voting at the referendum.  Failure of 
approval by the majority of legal voters voting at the referendum does not prevent 
subsequent referenda from being held for the same purpose.  The cost of referenda are 
borne by the sewer district. 
§1055.  Mutual funds; sewer districts 
A sewer district may invest its funds, including sinking funds, reserve funds and trust 
funds, to the extent that the term  of any instrument creating the funds does not prohibit 
the investment, in shares of an investment company registered under the federal 
Investment Company Act of 1940, whose shares are registered under the United States 
Securities Act of 1933, only if the investments of the investment company are limited to 
obligations of the United States or any agency or instrumentality, corporate or otherwise, 
of the United States or repurchase agreements secured by obligations of the United States 
or any agency or instrumentality, corporate or otherwise, of the United States.  This 
section is in addition to, and not in limitation of, any power of a sewer district to invest its 
funds. 
Sec. 7.  38 MRSA c. 12, as amended, is repealed. 
SUMMARY 
This bill creates a model standard sewer district charter in statute. It includes standard 
language for the common provisions included in a sewer district charter. It also includes 
the mandatory requirements of the Maine Revised Statutes, Title 38, chapter 12, except 
the requirement that a new sewer district be formed under the Sanitary District Enabling 
Act and that a proposed amendment to extend the boundaries of a sewer district be 
approved by referendum before the amendment is presented to the Legislature.  
This bill repeals Title 38, chapter 12.  The bill also fixes cross-references.