An Act To Continue the Maine Farms for the Future Program
Maine Legislature, Session 121, LD 1173
Committee: Appropriations and Financial Affairs
Sponsors: PINGREE, BRYANT, MAILHOT, MILLETT, MILLS, ROSEN, SMITH, CATHCART, TREAT
Amends: 7 MRSA §317, 7 MRSA §319-A, 7 MRSA §320

Legislative Document 
No. 1173 
H.P.870 
House of Representatives, March 5, 2003 
An Act To Continue the Maine Farms for the Future Program 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
Presented by Representative PINGREE of North Haven. 
Cosponsored by Senator BRYANT of Oxford and 
If/~frJ.~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: MAILHOT of Lewiston, McKEE of Wayne, MILLETT of Waterford, MILLS 
of Cornville, ROSEN of Bucksport, SMITH of Monmouth, Senators: CATHCART of 
Penobscot, TREAT of Kennebec. 
Printed on =ycled paper 
Preamble. 
Two 
thirds of both Houses 
deeming it necessary in accordance 
with 
Maine, Article IX, Section 14 to authorize 
on behalf of the State of Maine to provide 
this Act, 
of the Legislature 
the Constitution of 
the issuance of bonds 
funds as described in 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A·I. Authorization of bonds. 
The Treasurer of State is 
authorized, under the direction of the Governor, to issue bonds 
in the name and on behalf of the State in an amount not exceeding 
$5,000,000 to raise funds for grants and loans to farmers under 
the Maine Farms for the Future Program as authorized by this 
Part. 
The bonds are a pledge of the full faith and credit of the 
State. 
The bonds may not run for a period longer than 10 years 
from 
the date of the original 
issue of the bonds. 
At 
the 
discretion of the Treasurer of State, with the approval of the 
Governor, any issuance of bonds may contain a call feature. 
Sec. A·2. Records of bonds issued kept by Treasurer of State. 
The 
Treasurer of State shall keep an account of each bond showing the 
number of the bond, the name of the successful bidder to whom 
sold, the amount received for the bond, the date of sale and the 
date when payable. 
Sec. A·3. 
Sale: how negotiated: proceeds appropriated. 
The 
Treasurer of State may 
negotiate 
the 
sale of 
the 
bonds 
by 
direction of the Governor, but no bond may be loaned, pledged or 
hypothecated on behalf of the State. 
The proceeds of the sale of 
the bonds, which must be held by the Treasurer of State and paid 
by the Treasurer of State upon warrants 
drawn by the State 
Controller, are appropriated solely for the purposes set forth in 
this Part. 
Any unencumbered balances remaining at the completion 
of the project in this Part lapse to the debt service account 
established for the retirement of these bonds. 
Sec. A·4. Interest and debt retirement. 
The Treasurer of State 
shall pay interest due or accruing on any bonds issued under this 
Part and all sums coming due for payment of bonds at maturity. 
Sec. A·5. Disbursement of bond proceeds. 
The proceeds of the 
bonds 
must 
be 
expended 
as 
set out in this Part 
under 
the 
direction and supervision of the Commissioner of Agriculture, 
Food and Rural Resources. 
Page l-LR1219 (1) 
Sec. A-6. Allocations from General Fund bond issue. 
The proceeds 
of the sale of the bonds must be expended as designated in the 
following schedule. 
AGRICULTURE, FOOD AND RURAL RESOURCES, 
DEPARTMENT OF 
Grants though the Maine Farms 
for the Future Program 
Loans through the Maine Farms 
for the Future Program 
Total Allocations 
$2,500,000 
$2,500,000 
$5,000,000 
Sec. A-7. Contingent upon ratification of bond issue. 
Sections 1 
to 6 
do not become effective unless the people of the State 
ratify the issuance of the bonds as set forth in this Part. 
Sec. A-S. Appropriation balances at year-end. 
At the end of each 
fiscal year, all unencumbered appropriation balances representing 
state money carry forward. 
Bond proceeds that have not been 
expended within 10 years after the date of the sale of the bonds 
lapse to General Fund debt service. 
Sec. A-9. Bonds authorized but not issued. 
Any bonds authorized 
but not issued, or for which bond anticipation notes are not 
issued 
within 
years 
of 
ratification 
of 
this 
Part, 
are 
deauthorized and may not be issued, except that the Legislature 
may, within 2 years after the expiration of that 5-year period, 
extend the period for issuing any remaining unissued bonds or 
bond anticipation notes for an additional amount of time not to 
exceed 5 years. 
Sec. A-tO. Referendum for ratification; submission at statewide 
election: form of question: effective date. 
Thi sPar t mus t be s ubmi t ted 
to the legal voters of the State at a statewide election held on 
the Tuesday following the first Monday of November 
following 
passage of this Part. 
The municipal officers of this State shall 
notify the inhabitants of their respective cities, 
towns 
and 
plantations to meet, in the manner prescribed by law for holding 
a statewide election, to vote on the acceptance or rejection of 
this Part by voting on the following question: 
"Do you favor a $5,000,000 bond issue,$2,500,000 of which 
will be used for grants and $2,500,000 of which will be used 
for loans to farmers under the Maine Farms for the Future 
Program?" 
The legal voters of each city, town and plantation shall 
vote by ballot on this question and designate their choice by a 
cross or check mark placed wi thin a corresponding square below 
the word "Yes" or "No." 
The ballots must be received, sorted, 
counted and declared in open ward, town and plantation meetings 
and returns made to the Secretary of State in the same manner as 
votes for members of the Legislature. 
The Governor shall review 
the returns and, if a majority of the legal votes are cast in 
favor 
of this Part, 
the 
Governor shall 
proclaim the 
result 
without delay, and this Part becomes effective 30 days after the 
date of the proclamation. 
The Secretary of State shall prepare and furnish to each 
city, town and plantation all ballots, returns and copies of this 
Part necessary to carry out the purposes of this referendum. 
PARTB 
Sec. B-1. 7 MRSA §317, as enacted by PL 1999, c. 763, §l, is 
amended to read: 
§3l7. 
Maine Farms for the Future Program 
The Maine Farms for the Future Program, referred to in this 
chapter 
as 
the 
"program," 
is 
created. 
The 
program 
is 
administered by the department, either directly or by contract 
wi th a sui table organization. 
The program provides a selected 
farm with assistance in developing a detailed business plan that 
involves changes in the farm's operation to increase the vitality 
of the farm and investment money to help implement the plan. The 
department shall organize a review panel, referred to in this 
chapter as the "panel," to evaluate and approve applications for 
participation 
in 
the 
program 
and 
for 
investment 
supportL 
including loans made under section 319-A. 
Sec. B-2. 7 MRSA §319-A is enacted to read: 
§3l9-A. 
Farms for the Future Loan Fund 
1. 
Fund established. 
The Farms for the Future Loan Fund, 
referred to in this chapter as "the loan fund," is established as 
an Other Special Revenue fund revolving loan account for the 
purposes specified in this chapter. 
Loans may be made from the 
loan fund at the prime rate of interest plus 1%. 
2. 
Sources of loan fund. 
The State Controller shall credit 
to the loan fund: 
A. 
All money allocated from the proceeds of sales of bonds 
pursuant to a General Fund bond issue for the purpose of 
making loans under the program; 
B. 
Money from any other source, whether public or private, 
designated for deposit into or credited to the loan fund; and 
C. 
Repayments to the loan fund. 
3. 
Disbursements from the lOan fund. 
Disbursements from 
the loan fund are governed by the following provisions. 
A. 
A selected farm under section 318 may apply for a loan 
for up to 50% of the funds needed to implement the business 
plan for that farm. 
B. 
The review panel required by section 317 shall review 
applications 
for 
loans 
and 
award 
loans 
pursuant 
to 
guidelines established by the department. 
4. 
Unencumbered 
balances. 
Any 
unencumbered 
balance 
remaining at the end of any fiscal year lapses back to the loan 
fund. 
-
Administration of the loan fund. 
The department may 
authorize administration of the loan fund by an organization in 
the same manner as provided under section 320. 
Sec. B-3. 7 MRSA §320. sub-§L 1J~ and G. as enacted by PL 
1999, c. 763, §1, are amended to read: 
F. 
Executing 
and 
enforcing 
first 
and 
2nd 
farmland 
protection agreements; aBa 
G. 
Evaluating and reporting annually by March 15th to the 
joint 
standing 
committee 
of 
the 
Legislature 
having 
jurisdiction over agricultural matters 
on the impact and 
effectiveness of the programT; and 
Sec. B-4. 7 MRSA §320, sub-§l, 1JH is enacted to read: 
H. 
Administering the Farms for the Future Loan fund under 
section 319 A. 
Sec. 
B-S. 
Competitive 
bid 
process. 
The 
Department 
of 
Agriculture, Food and Rural Resources shall seek competitive bids 
for 
the 
administration 
of 
the 
Maine 
Farms 
for 
the 
Future 
Program. 
The successful candidate shall by contract agree to 
bear 
the 
full 
cost 
of 
business plan development 
contract. 
administering 
the 
program, 
including 
costs, for the initial 3 years of the 
Sec. B-6. Contingent effective date. 
This Part takes effect only 
if the General Fund bond issue authorized in Part A is approved 
at referendum. 
SUMMARY 
The funds provided by this bond issue authorized in Part A, 
in the amount of $5,000,000, will be used to fund both grants and 
loans under the Maine Farms for the Future Program administered 
by the Department of Agriculture, Food and Rural Resources. 
Part 
B provides the statutory authority to allow loans to be made to 
eligible farms under the Maine Farms for the Future Program and 
is contingent upon passage of the referendum set out in Part A.