Sec. 1. 35-A MRSA c. 62 is enacted to read:

CHAPTER 62

LOCALLY GOVERNED WATER DISTRICTS

§6201.__Short title

This chapter may be known and cited as "the Locally Governed Water District Act."

§6202.__Definitions

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

1.__Charter.__"Charter" has the same meaning as set forth in section 6402, subsection 1.

2.__Consumer-owned water utility.__"Consumer-owned water utility" has the same meaning as set forth in section 6101, subsection 1-A.

3.__Governing body.__"Governing body" has the same meaning as set forth in section 6101, subsection 1-B.

4.__Locally governed water district.__"Locally governed water district" means a consumer-owned water utility that has been selected by the commission to participate in the pilot project described in section 6203.

5.__Water district; district.__"Water district" or "district" has the same meaning as set forth in section 6101, subsection 3.

§6203.__Local governance pilot project

1.__Local governance pilot project.__The commission shall establish a local governance pilot project, referred to in this chapter as "the pilot project," to determine whether economic regulation of consumer-owned water districts should be transferred to the local level in a manner similar to other quasi-municipal entities in the State.__The commission shall oversee the pilot project in accordance with this section.

2.__Designation of participants.__Within 6 months after the effective date of this section, the commission shall designate no more than 10 percent of the consumer-owned water utilities