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Bill would extend Tort Claims Act immunity to PUC-appointed receivers for small water utilities
Summary
The Public Utilities Commission and water-utility advocates told lawmakers a narrow change to state law would make it easier to recruit receivers to operate small, consumer-owned water utilities when their trustees cannot form a quorum.
Representative Melanie Sachs introduced LD 11 27, a bill the Public Utilities Commission requested to clarify civil-immunity protections for receivers the commission may appoint to manage consumer-owned water utilities when a utility’s board lacks a quorum.
"The receiver has all the authorities granted to a full Board of Trustees," Sachs told the committee, and she said the commission has declined candidates in one instance because of liability concerns. Sachs asked the committee to let the PUC explain why additional statutory protection is needed.
Deirdre Schneider, testifying for the PUC, said the commission has authority under 35-A M.R.S. § 6410-A to appoint a receiver and noted that the PUC has used the authority twice since the statute’s enactment. Schneider told lawmakers that the commission’s recruitment of candidates has been hampered by concerns about personal liability; in at least one case a “very qualified candidate turned down the role due to these concerns.”
LD 11 27 would treat a receiver appointed by the commission “acting in good faith while exercising the authorities of a full board of trustees” the same way as an employee acting on behalf of a governmental entity under the Maine Tort Claims Act (MTCA). Schneider told the committee the change “does not solve every liability concern,” but she said it would provide the same immunity currently accorded to trustees under state law.
Brad Sawyer of the Maine Rural Water Association told the committee the measure is “tidying up the corners” of earlier legislation that created the PUC authority. Sawyer said two receivers had been appointed since the law was enacted, including the most recent appointment in the town of Corinna, and urged the committee to support the bill. He described typical receivers: in one case an engineering firm employee from the community; in another, the town manager who stepped in after trustees could not govern the water system.
Schneider said the PUC also recommends initiating rulemaking to support the statutory framework and that the commission would be available to provide more detail during the work session. No formal action was taken at the hearing.
Why it matters: Small, consumer-owned water utilities can struggle to recruit trustees and to sustain basic operations as volunteer boards age or resign; the PUC’s receiver authority is a last-resort tool. The bill aims to remove a legal disincentive to accepting a short-term receivership.
What's next: The committee will schedule the bill for a future work session with opportunities for the PUC and water-utility groups to refine statutory language and address any remaining liability or contract concerns raised by affected parties.
Speakers quoted in the story are listed in the article’s speaker list.
