An Act to Allow a Political Subdivision to Enter into Federal
Maine Legislature, Session 132, LD 2009
Sponsors: MOORE
Amends: 30-A MRSA §939, 30-A MRSA §5705-A

Legislative Document
No. 2009
S.P. 828
In Senate, December 5, 2025
An Act to Allow a Political Subdivision to Enter into Federal 
Bankruptcy Proceedings
(EMERGENCY)
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203.
Received by the Secretary of the Senate on December 3, 2025.  Referred to the Committee 
on State and Local Government pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator MOORE of Washington.
Cosponsored by Representatives: FAULKINGHAM of Winter Harbor, MCINTYRE of 
Lowell, TUELL of East Machias, UNDERWOOD of Presque Isle.
Emergency preamble.  Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, counties and municipalities are in increasingly difficult financial 
circumstances due to factors including rapidly rising property valuations and a sharp 
increase in the cost of living; and
Whereas, it is necessary for this legislation to take effect before the expiration of the 
90-day period in order to provide counties and municipalities with an additional means of 
managing financial obligations as soon as possible; and
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA §939 is enacted to read:
§939.  Insolvency
A county is authorized to file a petition for relief under 11 United States Code, chapter 
if:
1.  Exhausted alternatives.  The county has exhausted all reasonable alternatives to 
resolving its debt obligations; 
2.  Determined insolvent.  The county has been determined to be insolvent by the 
State Auditor; and
3.  County commissioners approve.  A majority of county commissioners, as defined 
in section 1302, subsection 1, has voted to approve the filing of the petition.
Sec. 2.  30-A MRSA §5705-A is enacted to read:
§5705-A.  Insolvency
A municipality is authorized to file a petition for relief under 11 United States Code, 
chapter 9 if:
1.  Exhausted alternatives.  The municipality has exhausted all reasonable alternatives 
to resolving its debt obligations; 
2.  Determined insolvent.  The municipality has been determined to be insolvent by 
the State Auditor; and
3.  Municipal officers approve.  A majority of municipal officers has voted to approve 
the filing of the petition.
Emergency clause.  In view of the emergency cited in the preamble, this legislation 
takes effect when approved.
SUMMARY
This bill authorizes counties and municipalities to enter into federal bankruptcy 
proceedings upon exhausting all reasonable alternatives to avoid bankruptcy, a 
determination by the State Auditor that the county or municipality is insolvent and approval 
by the county commissioners or municipal officers.