An Act To Clarify the Financial Authority of Sewer and Sanitary Districts
Maine Legislature, Session 128, LD 0759
Committee: Energy, Utilities and Technology
Sponsors: O'CONNOR, WOODSOME, DAUGHTRY, HANLEY, HARVELL, TUCKER, WADSWORTH, CARSON, COLLINS, CUSHING
Amends: 38 MRSA §1033, 38 MRSA §1050, 38 MRSA §1055, 38 MRSA §1164

Legislative Document
No. 759
H.P. 539
House of Representatives, March 2, 2017
An Act To Clarify the Financial Authority of Sewer and Sanitary 
Districts
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative O'CONNOR of Berwick.
Cosponsored by Senator WOODSOME of York and
Representatives: DAUGHTRY of Brunswick, HANLEY of Pittston, HARVELL of 
Farmington, TUCKER of Brunswick, WADSWORTH of Hiram, Senators: CARSON of 
Cumberland, COLLINS of York, CUSHING of Penobscot.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  38 MRSA §1033, sub-§1, ¶¶G and H, as enacted by PL 2013, c. 555, 
§6, are amended to read: 
G.  Section 1048, subsection 1, paragraph B and subsection 5; and 
H.  Section 1051. 1050; and 
Sec. 2.  38 MRSA §1033, sub-§1, ¶I is enacted to read: 
I.  Section 1051. 
Sec. 3.  38 MRSA §1033, sub-§2, ¶C, as enacted by PL 2013, c. 555, §6, is 
repealed. 
Sec. 4.  38 MRSA §1050, sub-§3, as enacted by PL 2013, c. 555, §6, is amended 
to read: 
3.  Collection.  The treasurer of the qualified sewer district may has full and complete 
authority and power to collect rates and all rates must be committed to the treasurer fees 
established under section 1048 or otherwise authorized by law.  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 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. 
Sec. 5.  38 MRSA §1055, as enacted by PL 2013, c. 555, §6, is amended to read: 
§1055.  Investments 
A sewer district may invest its funds, including sinking funds, reserve funds and trust 
funds, to the same 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 as 
municipalities are authorized under Title 30-A, chapter 223, subchapter 3-A.  This section 
is in addition to, and not in limitation of, any power of a sewer district to invest its funds. 
Sec. 6.  38 MRSA §1164, as enacted by PL 1993, c. 651, §7, is amended to read: 
§1164.  Investments 
A sanitary district may invest its funds, including sinking funds, reserve funds and 
trust funds, to the same extent that the terms of any instrument creating the funds do 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 as 
municipalities are authorized under Title 30-A, chapter 223, subchapter 3-A.  This section 
is in addition to, and not in limitation of, any power of a sanitary district to invest its 
funds. 
SUMMARY 
This bill clarifies the authority of sewer districts and sanitary districts to administer 
financial resources.  It allows sewer districts and sanitary districts to invest their funds in 
the same way as municipalities.  It clarifies that sewer districts have full authority to 
collect rates and fees.