An Act To Create the Newport Natural Gas District
Maine Legislature, Session 126, LD 1621
Committee: Energy, Utilities and Technology
Sponsors: FREDETTE

Legislative Document 
No. 1621 
H.P. 1193 
House of Representatives, December 30, 2013 
An Act To Create the Newport Natural Gas District 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Clerk of the House on December 23, 2013.  Referred to the Committee on 
Energy, Utilities and Technology pursuant to Joint Rule 308.2 and ordered printed pursuant to 
Joint Rule 401. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative FREDETTE of Newport. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  Newport Natural Gas District.  There is created within the Town of 
Newport the Newport Natural Gas District, referred to in this Act as "the district," a 
quasi-municipal corporation as defined in the Maine Revised Statutes, Title 30-A, section 
2604, subsection 3. The district has the following enumerated powers: 
1. To help coordinate the provision of natural gas by 3rd-party suppliers or 
distributors of natural gas to the citizens, organizations and businesses of the district, 
including through grants, loans or other financial assistance; 
2. To assist in aggregating customers for the purpose of procuring natural gas supply 
to customers within the district who elect to participate in such aggregation; 
3. To provide grants, loans or other financial assistance to residential and commercial 
customers in the district to obtain natural gas or to assist such customers with natural gas 
conversions; 
4. To own, operate or assist in the development or operation of one or more facilities 
that use natural gas to cogenerate electric power and other types of energy; and 
5. To manage the operation of the district. 
Sec. 2.  Board of directors.   All of the affairs of the district are managed by a 
board of directors, referred to in this Act as "the board," composed of no more than 7 
directors who are appointed by the town council of Newport. The terms of the first board 
must be staggered as established by random selection: 2 directors serve for a term of one 
year; 2 directors serve for a term of 2 years; and 3 directors serve for a term of 3 years.  
After the initial appointments, directors serve for a term of 5 years.  
Sec. 3.  Vacancies on board of directors. Vacancies occurring on the board are 
filled by appointment by the municipal officers of the Town of Newport. All directors are 
eligible for reappointment, but a municipal officer of the Town of Newport is not eligible 
to be a director. The election or appointment of a director as a municipal officer 
terminates the term of that director, and the vacancy caused by the termination is filled as 
provided in this section. 
Sec. 4.  Compensation.  A director is not entitled to compensation for services, 
except that compensation for a director may be provided by a legal vote of the municipal 
officers. 
Sec. 5.  Treasurer; chair.  The board shall elect a treasurer and chair from among 
its members to serve terms established by the board and serve until their respective 
successors are elected and qualified. The board shall fix the compensation for the 
treasurer. 
Sec. 6.  Annual audit.  An annual audit must be made of the district's accounts 
within 60 days after the end of each fiscal year. The audit must be made by an individual 
or firm recognized as a competent auditor by training and experience or by a qualified 
public accountant. 
Sec. 7.  Annual report of directors. At the end of each fiscal year and following 
the audit pursuant to section 6, the board shall make a detailed report that includes the 
activities, receipts and expenditures, the financial and physical condition and any other 
matters of the district, including how the board is fulfilling its duties and obligations. The 
report must also include the auditor's report and be filed with the municipal officers and 
published in the Town of Newport's annual report. 
Sec. 8.  Rules. The board has the authority to adopt rules for the management and 
operation of the district. 
Sec. 9.  Powers.  All powers, rights and privileges incidental or necessary to the 
accomplishment of the purposes of this Act are granted to the district. 
Sec. 10.  Money of the district. All money received from the district's natural gas 
activities and other receipts, notes or other sources in connection with the district's 
authorized activities must be deposited in banks or depositories as the board determines, 
in accounts entitled "Newport Natural Gas District," and all withdrawals from the 
accounts must be over or upon the orders or warrants of the board and must be directed to 
the treasurer. The treasurer shall execute and carry out all orders and warrants. 
Sec. 11.  Directors; revenues. All revenues received by the district from its 
activities, contracts with natural gas providers or other business partners or from grants or 
other sources must be used for the following purposes: 
1. To pay the current expenses of operating and maintaining the district and its 
activities; 
2. To provide for the payment of principal and interest on the indebtedness of the 
district, if any; 
3. To provide each year a sum equal to not less than 2 1/2% nor more than 4% of the 
book value of the depreciable assets of the district determined as of the close of the 
preceding fiscal year, which must be turned into a sinking fund and used to provide for 
repairs, replacements and improvements to the district's offices and operations, including 
any facilities of the district that use natural gas to cogenerate electric power and other 
types of energy; and 
4. To provide and accumulate from year to year reasonable surplus funds to carry out 
the general purposes of the district, as may be necessary or desirable in the sole discretion 
of the board. At the option of the board, any accumulated surplus may be deposited in the 
sinking fund under this section. 
Sec. 12.  Subject to other laws. Nothing contained in this Act is intended to 
repeal nor may be construed as repealing any existing statute. 
Sec. 13.  Superintendent appointment; removal. The board may appoint a 
superintendent of the district. The superintendent is selected solely on the basis of the 
superintendent's administrative qualifications with special preference to actual experience 
in or knowledge of energy matters. The board shall determine the superintendent's 
compensation. 
The superintendent holds office for an indefinite term unless otherwise specified by 
contract. The superintendent may be removed or suspended for cause by the board in 
accordance with the following procedures. 
1. The board shall prepare a written preliminary resolution for the board action 
setting forth the specific reasons for the proposed removal, a copy of which must be 
delivered to the superintendent within 10 days of its completion. 
2. The superintendent may, within 20 days of receiving the resolution, reply in 
writing and may request a public or private hearing. 
3. Upon receiving a request for a hearing, the board shall hold a hearing not earlier 
than 10 days and not later than 30 days after the request is received. 
4. After the hearing or at the expiration of the time permitted the superintendent to 
request a hearing, if no request is made, the board may adopt or reject the resolution. 
5. The board may suspend the superintendent from duty in the preliminary resolution, 
but the superintendent's salary may not be affected until the final resolution has been 
adopted. 
SUMMARY 
This bill creates the Newport Natural Gas District.