An Act Regarding Consumer-owned Water Utilities and Contracts for Water Extraction and for the Sale of Water
Sec. 1. 35-A MRSA §6109-B is enacted to read:
§ 6109-B. Extraordinary contracts for sale of water or water extraction
Notwithstanding any provision to the contrary in its charter or in law, a consumer-owned water utility may not enter into an extraordinary contract without first holding a public hearing and securing approval of a majority of voters at a referendum conducted in accordance with this section.
The referendum must be called, advertised and conducted according to the law relating to municipal elections, except the registrar of voters is not required to prepare or the clerk to post a new list of voters. The referendum may be held outside the territory of the consumer-owned water utility if the usual voting place for persons located within the territory of the utility is located outside the territory of the utility. For the purpose of registering voters, the registrar of voters must be in session on the regular work day preceding the election. The question presented must conform to the following form:
The voters shall indicate by a cross or check mark placed against the word "Yes" or "No" their opinion on the question. The results must be declared by the governing body of the consumer-owned water utility and entered upon the utility’s records. Due certificate of the results must be filed by the clerk with the Secretary of State. Failure of approval by the majority of voters voting at the referendum does not prevent subsequent referenda from being held for the same purpose. The costs of referenda are borne by the consumer-owned water utility.
summary
This bill requires a consumer-owned water utility to hold a public hearing and to secure approval of a majority of voters in a referendum vote before entering into a contract with any entity that involves:
1. The sale of water for purposes other than on-site use or consumption by the purchasing entity;
2. The sale or lease of any water rights held by the utility, including the right to extract water from sources from which the utility is authorized to obtain water; or
3. The sale of any water or sale or lease of any water rights on terms different than those available to any other similarly situated entity.