Sec. 1. 38 MRSA §1101, first ¶, as affected by PL 1989, c. 890, Pt. A, §40 and amended by Pt. B, §211, is further amended to read:

The formation of a sanitary district is accomplished as follows, unless a municipality chooses to establish a decentralized community sanitary district, in which case the decentralized community sanitary district is formed pursuant to section 1163-B.

Sec. 2. 38 MRSA §1163-B is enacted to read:

§1163-B.__Decentralized community sanitary district

1.__Definition.__As used in this section, "decentralized community sanitary district" means a sanitary district formed to manage one or more subsurface wastewater collection, treatment and disposal systems constructed according to the requirements of the subsurface wastewater disposal rules adopted pursuant to Title 22, section 42, subsection 3 to accommodate nonindustrial development entirely within one or more areas designated as growth areas in a comprehensive plan approved under Title 30-A, section 4347-A.

2.__Formation.__A decentralized community sanitary district:

A.__May be formed only if no sanitary or sewer district formed under this chapter or other state law exists with jurisdiction to serve the geographic area or areas in question; and

B.__Is created in the same manner as a sanitary district under this chapter, except submission to the voters is not required and, following the joint meeting as required in section 1101 between the commissioner and the municipal officers or others named in the application for a decentralized community sanitary district, the trustees must be appointed by the municipal officers of the municipality or municipalities in which the designated growth area or areas are located.__The terms of the trustees are determined in the manner described in section 1105.

3.__Application.__Upon approval by the board of an application for a decentralized community sanitary district, the commissioner shall issue a certificate of organization in the name of the decentralized community sanitary district in a form as the commissioner determines.__The original certificate must be delivered to the trustees on the day that they are directed to