An Act To Create the Maine Humanities Authority
Maine Legislature, Session 121, LD 0660
Committee: Education and Cultural Affairs
Sponsors: DUNLAP, MARTIN, ADAMS, COWGER, KOFFMAN, NORBERT, PERRY, SUSLOVIC, ROTUNDO
Amends: 5 MRSA §12004-F, 27 MRSA §70

Legislative Document 
No. 660 
H.P.490 
House of Representatives, February 11,2003 
An Act To Create the Maine Humanities Authority 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
Presented by Representative DUNLAP of Old Town. 
Cosponsored by Senator MARTIN of Aroostook and 
'7Jf~ /J7.1J?d£~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: ADAMS of Portland, COWGER of Hallowell, KOFFMAN of Bar Harbor, 
McKEE of Wayne, NORBERT of Portland, PERRY of Bangor, SUSLOVIC of Portland, 
Senator: ROTUNDO of Androscoggin. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §12004-F, sub-§19 is enacted to read: 
19. 
Maine 
Humanities Authority 
Legislative 
Per Diem 
MRSA §70l 
Sec. 2. 27 MRSA c. 21 is enacted to read: 
CHAPTER 21 
MAINE HUMANITIES AUTHORITY 
§701. Purpose 
The Maine Humanities Authority, as established in Title 5, 
section 12004-F, subsection 19, and referred to in this chapter 
as "the authority," is a body both corporate and politic in the 
State established for 
the general purposes 
of 
acguiring 
and 
financing works of art and literature, historic preservation, 
library acguisitions and archival protection. 
It is declared that the purposes of this chapter are public 
and that the authority is performing a governmental function in 
carrying out this chapter. 
§702. Directors; appointment; president; vacancy 
The authority consists of a board of 5 directors, who are 
broadly representative of arts, cultural and humanities interests 
in the State. 
Four directors are appointed by the Governor, each 
to serve for 4 years, except that, for the initial terms, one 
director is appointed for one year, one for 2 years and one for 3 
years. 
The 
remaining 
director 
is 
the 
Chair 
of 
the 
Maine 
Humanities Councilor its successor organization or the chair' s 
designee and serves 
as chair of the board of directors 
and 
president of the authority. The directors shall elect a treasurer 
and such other officers as the board of directors may from time 
to time determine necessary. The Governor shall fill a vacancy 
for an unexpired term. 
1. 
Meetings of directors; compensation. All the powers of 
the authority may be exercised by the board of directors in 
lawful meeting and a majority of the directors is necessary for a 
guorum. 
Regular 
meetings 
of 
the 
board of directors 
may 
be 
established by 
bylaw 
and 
notice 
need 
not 
be 
given to 
the 
directors 
of 
the 
regular 
meeting. 
Each 
director 
must 
be 
compensated according to the provisions of Title 5, chapter 379. 
2. 
Actions at law or in eqyity. Actions at law or in eguity 
in the courts of this State may be brought by or against the 
Page l-LR0164(l) 
authority as if the authority were a private corporation, except 
that its property may not be attached, trusteed or sequestered, 
but, if a judgment recovered against the authority is not paid 
within 30 days, its personal property may be seized on execution. 
§703. Bonds 
1. 
Authorization. The authority may provide by resolution 
from time to time for the issuance of bonds for the purpose of 
funding the acquisition, financing or protection of works of art 
and 
literature, 
historic 
preservation, 
library 
acquisitions, 
archival protection and the fulfillment of other undertakings 
that the authority may assume. The bonds of the authority do not 
constitute a debt of the State, or of any agency or political 
subdivision thereof, but are payable solely from the revenue of 
the authority, and neither the faith nor credit nor taxing power 
of the State, or any political subdivision thereof, is pledged to 
payment of the bonds. 
Any provision of law to the contrary 
notwi thstanding, all bonds issued pursuant to this chapter are 
fully negotiable. If a director whose signature appears on the 
bonds or coupons ceases to be a director before the delivery of 
those bonds, 
that signature is valid and sufficient for all 
purposes 
as 
if that director had 
remained 
a 
director until 
delivery. 
2. 
Resolution; prospective issues. 
The authority may by 
resolution authorizing prospective issues provide: 
A. 
The manner of executing the bonds and coupons; 
B. 
The form and denomination of the bonds; 
c. 
Maturity dates; 
D. 
Interest rates on the bonds; 
E. 
For redemption prior to maturity and the premium payable~ 
F. 
The place or places for the payment of interest and 
principal; 
G. 
For registration if the authority determines it to be 
desirable; 
H. 
For the pledge of any revenue for securing payment; 
I. 
For the replacement of lost, destroyed or mutilated 
bonds; 
J. 
For the setting aside of reserve and sinking funds and 
the regulations and disposition of reserve and sinking funds; 
K. 
For limitation on the issuance of additional bonds; 
L. 
For the procedure, if any, by which the contract with 
the bondholder may be abrogated or amended; 
M. 
For the manner of sale and purchase of the bonds; 
N. 
For covenants against pledging of any of the revenue of 
the authority; 
O. 
For covenants fixing and establishing rates and charges 
for 
use of the authority's facilities 
and services made 
available so as to provide at all times funds sufficient to 
pay all costs of operation and maintenance, meet and pay the 
principal and interest of all bonds as they severally become 
due and payable; for the creating of such revenues for the 
principal and interest of all bonds; and for the meeting of 
contingencies 
and 
the 
operation 
and 
maintenance 
of 
the 
authority's facilities as the directors determine; 
P. 
For any other covenants as to rates and charges the 
directors determine; 
O. 
For covenants as to the rights, liability, powers and 
duties arising upon the breach by the authority of 
any 
covenant, condition or obligation; 
R. 
For covenants as to the bonds to be issued, as to the 
issuance of those bonds in escrow and otherwise and as to 
the use and disposition of the proceeds; 
S. 
For 
covenants 
as 
to 
the 
use 
of 
the 
authority's 
facilities 
and 
their 
maintenance 
and 
replacement, 
the 
insurance to be carried on them and the use and disposition 
of insurance money; 
T. 
For the issuance of bonds in series; 
U. 
For 
the performance of 
any acts 
as 
may 
be 
in the 
discretion 
of 
the 
directors 
necessary, 
convenient 
or 
desirable 
to 
secure 
the 
bonds 
or 
make 
the 
bonds 
more 
marketable; and 
V. 
To issue bonds on terms and conditions to effectuate the 
purpose of this chapter. 
• 
3. 
Money received. All money received from any bonds issued 
must 
be 
applied 
solely 
for 
the 
acquisition, 
financing 
or 
protection of works of art and literature, historic preservation, 
library acquisitions, archival protection and the fulfillment of 
other undertakings that are within the power of the authority. 
There is created a lien upon the money until so applied in favor 
of the bondholders or any trustee as may be provided in respect 
to the bonds. 
4. 
Trust indenture. In the discretion of the directors, the 
bonds may be secured by a trust indenture by and between the 
authority and a corporate trustee, which may be any trust company 
or bank having the powers of a trust company, 
located either 
wi thin or outside the State. 
The trust indenture may pledge or 
assign the revenues of the authority or any part of it. Any 
indenture 
may 
set 
forth 
the 
rights 
and 
remedies 
of 
the 
bondholders and the trustee, may restrict the individual right of 
action of bondholders and may contain any other provisions the 
directors may determine reasonable and proper for the security of 
bondholders. 
Expenses 
incurred 
in 
carrying 
out 
any 
trust 
indenture may be treated as a part of maintenance. 
5. 
Rights 
of bondholders. 
Provisions 
may 
be 
made 
for 
protecting 
and 
enforcing 
the 
rights 
and 
remedies 
of 
the 
bondholders, including covenants as to acquisition of property, 
construction, maintenance, operation and repair, 
insurance and 
the custody, security and application of all funds. 
6. 
Depositories. 
Any 
trust 
company 
or 
bank 
having 
the 
powers of a trust company and located either wi thin or outside 
the State may act as depositories of the proceeds of the bonds 
and revenue and may furnish indemnity or pledge such securities 
as may be required by the authority. 
7. 
Tax free. The purposes of this chapter being public and 
for the benefit of the people of the State, the authority bonds 
are free from taxation by the State. 
8. 
Revenue refunding bonds. The authority may issue revenue 
refunding bonds for the purpose of refunding the revenue bonds 
issued under this chapter. The issuance of any refunding bonds 
must be the same as provided for in this chapter relating to 
revenue bonds. 
9. 
Default. In the event of default on the bonds and in the 
event the default continues for a period of 3 months, action may 
be brought to enforce the rights of the bondholders by ensuring 
that the operation by the directors is in conformity with the 
covenants of the bonds or indenture. 
§704. Property of the State 
All real and personal property owned by and in the name of 
the authority is deemed property of the State and entitled to the 
privileges 
and 
exemptions 
of 
property 
of 
the 
State, 
except 
insofar 
as 
waived 
by 
the 
duly 
authorized contract 
or 
other 
written instrument of the authority or by this chapter. 
§705. Conflict of interest 
A member, 
officer or 
employee 
of 
the 
authority may 
not 
acquire any interest, direct or indirect, 
in any contract or 
proposed contract of the authority or participate in any decision 
on any contract entered into by the authority if the member, 
officer or employee has any interest. direct or indirect. in any 
firm, partnership, corporation or association that is party to 
the contract or financially involved in any transaction with the 
authority. 
This prohibition is not applicable to the acquisition 
of any interest in notes or bonds of the authority issued in 
connection with any contracts or agreements of the authority or 
to the execution of agreements by banking institutions for the 
deposi t 
or handling of authority funds in connection with any 
contract. 
This bill creates 
the authority bonding 
protecting or acguir ing 
library acquisitions. 
SUMMARY 
the Maine Humanities Authority and gives 
authority for the purpose of financing, 
works of art, literature, archives and