Whereas, several dams in the State are presently in the process of being transferred to private owners; and

Whereas, there are presently no systems in place to ensure that the persons who take ownership of the dams have adequate insurance to cover losses in the event of a dam failure or a significant flood; and

Whereas, it is imperative that the State take immediate steps to ensure that dam owners have adequate insurance and proper safety plans with respect to these dams; and

Whereas, the safe operation of dams is essential to the safety of a large number of communities below the dams; and

Whereas, the transfer of dams involving interlocal agreements with municipalities depends upon funding assistance through the state-municipal revenue sharing program; 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. 38 MRSA §902, sub-§4-B is enacted to read:

4-B.__Compliance with Maine Emergency Management Agency Standards; proof of insurance.__The dam owner shall provide the following information to the Maine Emergency Management Agency, referred to in this subsection as the "agency," within the period set forth in subsections 1 and 1-A:

A.__A copy of the petition filed with the department;

B.__The prospective owner's plan to maintain competent operations to agency standards; and

C.__Proof that the prospective owner is able to obtain liability insurance in an amount to be determined by the agency to cover any reasonably anticipated loss resulting from the failure of the dam.