Sec. 1. 38 MRSA §1165 is enacted to read:

§1165. Sanitary districts; authority to increase debt limits

1.__Debt limit.__Notwithstanding any provision of its charter to the contrary, a sanitary district may increase its debt limit by referendum in accordance with this section.__A sanitary district is not required to use the procedure provided by this section and may seek to increase its debt limit by any other lawful means, including pursuant to any other means described in its charter or by seeking legislative amendment to its charter.

2.__Referendum.__If a sanitary district chooses to increase its debt limit pursuant to this section, the governing body of the sanitary district shall propose a new debt limit and submit the proposal for approval at a referendum within the district.__ 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.__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 be in substantially the following form:

"Do you favor changing the debt limit of the (insert name of district) from (insert current debt limit) to (insert proposed debt limit)?"

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 district and entered upon the district's records.__Due certificate of the results must be filed by the clerk with the Secretary of State.

3.__Approval.__A debt limit proposal becomes effective upon its acceptance by a majority of the legal voters within the district voting at the referendum.__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 district.

Sec. 2. 38 MRSA §1256 is enacted to read:

§1256. Sewer districts; authority to increase debt limits