An Act to Allow a Water District Created by Special Act of the
Maine Legislature, Session 132, LD 0481
Sponsors: BECK, BRENNER
Amends: 35-A MRSA §6103

Legislative Document
No. 481
H.P. 310
House of Representatives, February 11, 2025
An Act to Allow a Water District Created by Special Act of the 
Legislature to Borrow Money and Issue a Warrant Prior to a 
Default
Received by the Clerk of the House on February 6, 2025.  Referred to the Committee on 
Energy, Utilities and Technology pursuant to Joint Rule 308.2 and ordered printed pursuant to 
Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative BECK of South Portland.
Cosponsored by Senator BRENNER of Cumberland and
Representatives: BOYER of Cape Elizabeth, KESSLER of South Portland, OLSEN of 
Raymond, WADSWORTH of Hiram, WARREN of Scarborough, Senator: HARRINGTON of 
York.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §6103, sub-§1-A is enacted to read:
1-A.  Issuance of warrant prior to default; commission review. A district that makes 
a determination regarding the district's anticipated revenues under this section may borrow 
money and issue a warrant in accordance with this subsection.
A.  Notwithstanding subsection 1, if, prior to a default in the payment of the principal 
of or interest on a note, bond or other evidence of indebtedness issued by the water 
district, the district makes a reasonable determination that the district’s anticipated 
revenues from the normal payment of water charges for services rendered for the period 
beginning on the date of the determination and ending on the last day of the 
then-current fiscal year will not be sufficient to pay the district’s anticipated operating 
expenses for the same period, the district may borrow money in an amount sufficient 
to make the payment of principal and interest and other transaction costs related to the 
borrowing, and the trustees, directors or managing board of the district may issue the 
district's warrant immediately to those portions of the municipality or municipalities 
that constitute the district to repay the amount borrowed, plus interest.
When making the determination under this paragraph, the district shall include:
(1)  In its anticipated revenues, all other cash or funds held by or on behalf of the 
district that are available to pay its anticipated operating expenses and other 
expected or obligated expenditures; and 
(2)  In its anticipated operating expenses, all other expected or obligated 
expenditures, including any obligation to replenish a reserve fund established with 
respect to the note, bond or other evidence of indebtedness.
B.  Within 30 days of the date the trustees, directors or managing board of the district 
issues the district's warrant pursuant to paragraph A, the district shall prepare and 
submit a financial management plan to the commission and each municipality that 
constitutes the district.  The commission shall provide an opportunity for affected 
municipalities to provide input on the financial management plan, and the commission 
may in its discretion commence a proceeding to examine the financial management 
plan.
C.  This subsection applies to a district when the municipality or municipalities that 
constitute the district have previously approved this section or former Title 35, section 
3211.  For any other district, this subsection applies when approval pursuant to 
subsection 6 is obtained.
SUMMARY
This bill provides that if a water district, prior to a default in the payment of the 
principal of or interest on a note, bond or other evidence of indebtedness, makes a 
determination that the district's anticipated revenues from the normal payment of water 
charges will not be sufficient to pay the district's anticipated operating expenses, the water 
district may borrow money to pay the principal and interest and other transaction costs 
related to the borrowing and may issue the district's warrant immediately to those portions 
of the municipality or municipalities that constitute the district to repay the amount 
borrowed, plus interest.