Sec. 1. 35-A MRSA §6101, sub-§1-C is enacted to read:

1-C.__Official.__"Official" means any elected or appointed member of the governing body of a municipal or quasi-municipal water utility.

Sec. 2. 35-A MRSA §6114 is enacted to read:

§6114.__Conflict of interest prohibited

1.__Family relationships.__Except as otherwise provided in this section, employment practices of a water utility must comply with this subsection.

A.__An official or the spouse or dependent child of an official may not be employed by the water utility as a permanent, part-time or contracted employee.

B.__A municipal officer that appoints the officials of the water utility in the officer's community or the spouse or dependent child of the municipal officer may not be employed by the water utility as a permanent, part-time or contracted employee.

2.__Conditions for employment.__An official or municipal officer, or the spouse or dependent child of an official or municipal officer, may provide services to a water utility under a fixed-term contract for services if the contract is awarded through a bid process made public through a newspaper with general circulation in the area served by the water utility, through notice in the utility's customer bills or through some other means that effectively informs the utility's customers.__ The notice must include a detailed description of the services required, including, but not limited to, the scope of work, required licenses, hours, and equipment to be provided by the contractor.__The bids must be awarded in accordance with Title 30-A, section 2605.

3.__Transition provisions.__An official or municipal officer who is employed by a water utility on the effective date of this section and is affected by the provisions under subsection 1 may continue serving the water utility until the official's or municipal officer's current term expires or until January 1, 2004, whichever occurs first.__A spouse or dependent child of an official or municipal officer, who is employed by a water utility on the effective date of this section and is affected by the provisions under subsection 1, may continue serving the water utility until January 1, 2004.