An Act To Refme the Maine Rural Development Statutes LR 1869(02)
Maine Legislature, Session 121, LD 1408
Committee Amendment CA_A_S148 (Senate)
Amends: 5 MRSA §13120-A, 5 MRSA §13120-D, 5 MRSA §13120-I, 5 MRSA §13120-N, 5 MRSA §13120, 5 MRSA §13120-P

COMMITTEE AMENDMENT "A" to S.P. 464, L.D. l408, 
Act To Refine the Maine Rural Development Statutes" 
Bill, "An 
Amend the bill by inserting after the enacting clause and 
before section 1 the following: 
'Sec. 1. 5 MRSA §13120-A, first" as enacted by PL 2001, c. 
703, §6, is amended to read: 
The Maine Rural Development Authority, 
as established by 
section 12004-F, subsection 18 and referred to in this subchapter 
as the "authority," is a body both corporate and politic and a 
public instrurnentali ty of the State established for the purpose 
of 
providing 
loans 
to 
communities 
for 
the 
development 
of 
commercial facilities on a speculative basis and for serving as 
;J,eaEi. 
lender 
or 
investor 
in 
the 
acquisition, 
development, 
redevelopment and sale of commercial facilities in areas where 
economic needs are not supported by private investment. 
Sec. 2. 5 MRSA §13120-D, sub-§4, as enacted by PL 2001, c. 
703, §6, is amended to read: 
4. 
Administration. 
The &eaFEI.-~--~~~&~&-£ha~~-~~-eRe 
eE-i~s-memBeFs Commissioner of Economic and Community Development 
shall serve as chairT of the board of trustees. 
The board of 
trustees shall elect one member as vice-chair, who shall serve as 
secretary, one member as treasurer and such other officers as the 
board of trustees may from time to time consider necessary.' 
COMM/rrEE AMENDMENT 
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fig 
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COMMITTEE AMENDMENT .. A 
.. to S.P. 464, L.D. 1408 
Further amend the bill by striking out all of sections 2 to 
and inserting in their place the following: 
. Sec. 2. 5 MRSA §13120-I, sub-§l, as enacted by PL 2001, c. 
703, §6, is amended to read: 
1. 
Authorization. 
The authority may provide by resolution 
for 
the 
issuance of 
bonds 
for 
the 
purpose 
of 
funding 
the 
Community Industrial Buildings Fund, 
as--e-&t-ab-1-i-she4--i-n--seeeisR 
l~lag-Q or any successor to the fund, for the construction of 
proposed commercial facilities and improvement of existing or 
acquired commercial facilities and for the fulfillment of other 
undertakings that it may assume. 
The bonds of the authority do 
not constitute a debt of the State or of any agency or political 
subdivision of the State 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 of the State is 
pledged to payment of the bonds. 
Notwithstanding any other 
provision of law, any bonds issued pursuant to this subchapter 
are fully negotiable. 
If any member of the board of trustees 
whose signature appears on the bond or coupons ceases to be a 
member of the board of trustees before the delivery of those 
bonds, that signature is valid and sufficient for all purposes as 
if that member of the board of trustees had remained a member of 
the board of trustees until delivery. 
Sec. 3. 5 MRSA §13120-N, sub-§l, 1f1fC and D, as enacted by PL 
2001, c. 703, §6, are amended to read: 
C. 
The authority shall charge interest on loans or funds 
provided under this section aRs--seeeisR--lllaQ-Q to the 
municipality 
or 
local 
development 
corporation 
for 
a 
community industrial building that remains unoccupied for 3 
or more years following completion of the building. 
D. 
The authority shall adopt rules under chapter 375 with 
respect to: 
(1) 
The methodology and criteria for allocating funds 
to community industrial building projects; 
(2) 
The process through which municipalities and local 
development 
corporations 
must 
apply 
for 
community 
industrial building funds; 
(3) 
Rates 
of 
interest, 
the 
duration 
of 
interest 
payments and any other terms to which municipalities 
and 
local 
development 
corporations 
must 
be 
subject 
under this paragraph; and 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .. A .. to S.P. 464, L.D. 1408 
(4) 
Other 
matters 
necessary 
to 
the 
proper 
administration of this section aBa-see~ieB-l~lag-g. 
Rules adopted under this paragraph are 
ffia~e~--&a&S~aB~ive 
routine technical rules pursuant to chapter 375, subchapter 
~~-A--aBa--a~e--saB~ee~--~e--Feview--By--~he--~eiB~--s~aBaiB~ 
eeffiffii~~ee--~--~~--be~isla~~Fe--ha¥~~--~~~~--eveF 
eeeBeffiie-aevelepffieB~-ffia~~eFs 2-A. 
Sec. 4. 5 MRS A §13120-N, sub-§3, 1fC, as enacted by PL 2001, c. 
703, §6, is amended to read: 
C. 
A community industrial building financed by an authority 
loan may not be sold or leased without the express approval 
of the 
purchaser or 
lessee 
by 
the 
authority. 
If the 
municipality 
or 
local 
development 
corporation 
and 
the 
authority agree that a 
community industrial building is 
unlikely to be sold in the near future despite a marketing 
effort, the authority may permit an interim lease upon terms 
it considers appropriate for the protection of the Community 
Industrial Buildings Fund eS~aBlishea-~~~~-l~lag-g or 
any successor to the fund. 
Occupation of the premises under 
an interim lease does not require payment in full of the 
entire loan within 90 days, as provided in paragraph B. 
Sec. 5. 5 MRSA §13120-0, as enacted by PL 2001, c. 703, §6, 
is repealed. 
Sec. 6. 5 MRSA §13120-P, as enacted by PL 2001, c. 703, §6, 
is amended to read: 
§13120-P. Commercia1 Faci1ities Deve10pment Program 
1. 
Estab1isbment; 
purpose. 
The 
Commercial 
Facilities 
Development Program is established within the authority to serve 
the following purposes: 
A. 
Restore 
employment 
opportunities 
by 
serving 
as 
principal, partner, lender or investor in the acquisition 
and redevelopment of nonproductive commercial facilities for 
Subsequent return to productive use through sale or lease; 
and 
B. 
Create employment opportunities in areas of economic 
need that are underserved by private investors by serving as 
principal, partner, lender or investor in the acquisition of 
property 
and 
development 
of 
commercial 
facilities 
for 
subsequent sale or lease into private productive use. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,~ .. to S.P. 464, L.D. 1408 
In carrying out its duties under this section, the authority 
shall make all reasonable and appropriate efforts to maximize the 
leverage 
of its 
funds 
through 
partnership 
and 
risk-sharing 
arrangements with public and private organizations. 
2. 
Redevelopment 
of property. 
Except 
as 
provided 
in 
section l3120-Q, 
the authority may 
ae~~i~e--iBEe~esEs--iB--aBa 
undertake the redevelopment of property as an owner or lender for 
subsequent use and sale under the following conditions: 
A. 
The property has been previously and materially used as 
a 
commercial 
facility or 
the property is suitable 
for 
adaptive use as a commercial or industrial facility; 
B. 
The property is currently not in productive commercial 
use or is expected to be taken out of productive commercial 
use within the immediate future; 
C. 
The property has not been placed under a purchase option 
or contract; 
D. 
The authority, using due diligence, has determined that: 
(1) 
There 
is 
a 
property will become 
redevelopment; and 
reasonable 
expectation 
that 
financially viable following 
the 
its 
(2) 
The economic benefits, including the restoration 
of employment opportunities, expected to result from 
the redevelopment justify the risks associated with the 
authority's equity interest in the property; and 
E. 
At least 25% of the total cost to acquire, redevelop and 
return the property to productive commercial use will be 
borne by the municipality or local development corporation. 
3. 
Development of property. 
Except as provided in section 
13120-Q, the authority may ae~~iFe-iBEe~esEs-iB-aBa undertake the 
development of property as an owner or lender for subsequent use 
and sale under the following conditions: 
A. 
The property consists 
sited or otherwise suitable 
facility; 
of real estate that is zoned, 
for development as a commercial 
B. 
The property is currently not in productive commercial 
use; 
C. 
The property has not been placed under a purchase option 
or contract; 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to S.P. 464, L.D. 1408 
D. 
The authority, using due diligence, has determined that: 
(1) 
There 
is 
a 
reasonable 
expectation 
that 
the 
property will become financially viable following its 
development; 
(2) 
The 
development 
of 
employment opportunities 
within the region; and 
the 
property will 
and other economic 
create 
benefits 
(3) 
The economic benefits expected to result from the 
development 
justify the 
risks 
associated 
with 
the 
authority's equity interest in the property; and 
E. 
At least 25% of the total cost to acquire, develop and 
bring the property to productive commercial use will be 
borne by the municipality or local development corporation. 
Sec. 7. 
Successor to fund. 
The 
Maine 
Rural 
Development 
Authority, referred to in this section as "the authority," is the 
successor 
to 
the 
Department 
of 
Economic 
and 
Community 
Development, referred to in this section as "the department," for 
the purposes of the Maine Revised Statutes, Title 5, section 
13120-N and former section 13120-0. 
All properties, rights in 
land, buildings and equipment and any funds, money, revenues and 
receipts or assets of the department as they apply to the former 
Community Industrial Buildings Fund, established under Title 5, 
former section 13120-0, including funds previously appropriated 
by the State for the Community Industrial Buildings Fund under 
Title 
5, 
former 
section 13082, 
belong 
to 
the 
authority as 
successor to the department. 
All liabilities of the department 
with respect to the Community Industrial Buildings Fund under 
Title 
5, 
former 
section 
13082 
become 
liabilities 
of 
the 
authority. 
Any action taken by the department with respect to 
assisting a 
municipality or local development corporation to 
create community industrial buildings is an action taken by the 
authority. ' 
Further amend the bill by relettering 
nonconsecutive 
Part 
letter 
or 
section 
consecutively. 
SUMMARY 
or renumbering any 
number 
to 
read 
This amendment expressly grants the Maine Rural Development 
Authority the power to make loans under the Commercial Facilities 
Development Program, designates the Commissioner of Economic and 
Community 
Development 
as 
the 
chair 
of 
the 
board 
of 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. A 
.. to S.P. 464, L.D. 1408 
trustees and removes language that requires a separate fund to be 
set up for the community industrial building program. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 04/28/03 frac:.. 
Office of Fiscal and Program Review 
LD 1408 
An Act To Refme the Maine Rural Development Statutes 
LR 1869(02) 
Fiscal Note for Bill as Amended by Committee Amendment ,II, S ~/<.f~ 
Committee: Business, Research and Economic Development 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Any additional cost to the Department of Economic and Community Development associated with the Commissioner 
serving as chair of the Maine Rural Development Authority Board of Trustees can be absorbed utilizing existing 
budgeted resources. 
LR1869(2) - Fiscal Note - Page 1 of 1