An Act To Authorize a General Fund Bond Issue in the Amount of $20,000,000 To Sustain and Improve Maine's Economy
Maine Legislature, Session 121, LD 1877
Committee: Appropriations and Financial Affairs
Sponsors: CATHCART, BROMLEY, DAMON, TURNER, COWGER, CUMMINGS, RICHARDSON, SULLIV AN

Legislative Document 
No. 1877 
S.P.725 
In Senate, February 25, 2004 
An Act To Authorize a General Fund Bond Issue in the Amount of 
$20,000,000 To Sustain and Improve Maine's Economy 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
JOY J. O'BRIEN 
Secretary of the Senate 
Presented by Senator CATHCART of Penobscot. (GOVERNOR'S BILL) 
Cosponsored by Senator BROMLEY of Cumberland and 
Senators: DAMON of Hancock, TURNER of Cumberland, Representatives: COWGER of 
Hallowell, CUMMINGS of Portland, RICHARDSON of Brunswick, SULLIV AN of 
Biddeford. 
Printed on recycled paper 
Preamble. 
Two 
thirds of both Houses of the Legislature 
deeming it necessary in accordance with the Constitution of 
Maine, Article IX, Section 14 to authorize the issuance of bonds 
on behalf of the State of Maine to provide funds as described in 
this Act, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 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 
$20,000,000 for the purposes described in section 6 of this Act. 
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. 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. 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 Act. 
Any unencumbered balances remaining at the completion 
of the project in this Act lapse to the debt service account 
established for the retirement of these bonds. 
Sec. 4. Interest and debt retirement. 
The Treasurer of State 
shall pay interest due or accruing on any bonds issued under this 
Act and all sums coming due for payment of bonds at maturity. 
Sec. 5. Disbursement of bond proceeds. 
The proceeds of the 
bonds must be expended as set out in this Act under the direction 
and 
superv~s~on of the Department of 
Economic 
and 
Community 
Development, the Small Enterprise Growth Board, the Department of 
Education, 
the University of Maine, 
the Maine State Cultural 
Affairs Council and the Maine State Housing Authority. 
Sec. 6. Allocations from General Fund bond issue. 
of the sale of the bonds authorized under this 
expended as designated in the following schedule. 
Page l-LR2802(1) 
The proceeds 
Act must be 
ECOMONIC AND C<»IMDBITY DEVELOPMENT, 
DEPARTMENT OF 
Provide funds 
to the Natural Resources 
Applied 
Research 
Fund 
at 
the 
Maine 
Technology Institute in anticipation of 
$5,000,000 in federal or private funding. 
Eligible research includes applied forest 
bio-products, 
marine 
fisheries 
and 
agricultural research. Eligible institutions 
include the State I s nonprofit institutions 
and 
state 
governmental 
and 
quasi-governmental agencies. 
SMALL ENTERPRISE GRONTB BOARD 
Provide funds 
for 
Growth Fund to make 
small companies in 
potential 
for 
high 
benefit. 
the Small Enterprise 
equity investments in 
the State wi th the 
growth 
and public 
MAINE STATE CUL'l'URAL AFFAIRS COUNCIL 
Provide funds for the New Century Community 
Program in anticipation of $1, 000,000 in 
matching 
funds 
to 
invest 
in capital 
improvements of cultural assets, including 
libraries, museums, 
historical buildings, 
theaters 
and other arts facilities in 
designated 
Pine 
Tree 
Development 
Zone 
communities. 
MAINE STATE HOUSING AUTHORITY 
Provide funds for weatherization of single 
and multifamily homes occupied by low-income 
persons. 
MAINE STATE HOUSING AUTHORITY 
Provide funds in anticipation of $2,000,000 
in matching federal funds for family and 
elderly housing options for Native American 
tribes 
through 
the 
Four 
Directions 
Development Corporation. 
EDUCATIOM, DEPARTMENT OF 
$5,000,000 
$2,000,000 
$1, 000, 000 
$2,000,000 
$2,000,000 
$6,000,000 
Provide funds in anticipation of $3,000,000 
in matching local funds to recapitalize the 
School Revolving Renovation Fund. 
UNIVERSITY OF MAINE 
Provide funds for critical storage and 
upgrades at the Raymond H. Fogler Library, 
the state research library for business, 
science and technology at the University of 
Maine. 
TOTAL FUNDS ALLOCATED 
Sec. 7. Contingent upon ratification of bond issue. 
of this Act do not become effective unless the 
State ratify the issuance of the bonds as set forth 
$2,000,000 
$20,000,000 
Sections 1 to 
people of the 
in this Act. 
Sec. 8. 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. 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 
Act, 
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. 10. 
Referendum for ratification; submission at statewide 
election; form of question; effective date. 
Thi s Ac t mus t be s ubmi tted 
to the legal voters of the State at a statewide election on the 
Tuesday following the 2nd Monday in the month of June following 
passage of this Act. 
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 Act by voting on the following question: 
"Do you favor a $20,000,000 bond issue to stimulate economic 
growth and job creation through investments in research and 
development; 
equity investments in small Maine companies: 
investments 
in 
the 
New 
Century 
Community 
Program; 
weatherization of 
low-income 
housing: 
family 
and elderly 
housing options for the Native American tribes; repairs, 
improvements 
and 
renovations 
to 
public 
schools; 
and 
improvements 
to 
the 
Raymond 
H. 
Fogler 
Library 
at 
the 
University 
of 
Maine, 
in 
anticipation 
of 
approximately 
$10,000,000 
in federal 
and private matching 
funds. 
The 
bonds would be used for the following purposes: 
(1) 
The 
sum of $5,000,000 for the Maine Technology 
Institute's Natural Resources Applied Research Fund to 
support applied forest bio-products, marine fisheries 
and agricultural research to retain jobs by meeting 
existing 
research 
needs 
in 
Maine's 
natural-resource-based 
industries. 
These 
funds 
leverage $5,000,000 in required matching funds; 
(2) 
The 
sum of $2,000,000 for the Small Enterprise 
Growth 
Fund 
for 
equity 
investments 
in 
small 
Maine 
companies with potential for high growth; 
(3) 
The 
sum 
of 
$1,000,000 
for 
the 
New 
Community Program to fund cultural investments 
Tree Development Zone communities; 
Century 
in Pine 
(4) 
The sum of $2,000,000 for weatherization of single 
and multifamily homes occupied by low-income persons; 
(5) 
The 
sum 
of 
$2,000,000 
for 
family 
housing options for Native American tribes 
Four 
Directions 
Development 
Corporation, 
approximately $2,000,000 in federal funds; 
and elderly 
through the 
attracting 
(6) 
The 
sum of $6,000,000 for repairs, 
improvements 
and renovations to public schools in anticipation of 
$3,000,000 in matching local funds; and 
(7) 
The 
sum of $2,000,000 for critical improvements 
and expansion 
plans for the Raymond H. Fogler Library 
at the University of Maine, the state research library 
for business, science and technology?" 
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 Act, the Governor shall proclaim the result without 
delay, and this Act 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 
Act necessary to carry out the purposes of this referendum. 
SUMMARY 
This bill proposes a June referendum vote on the proposed 
bonds. 
The funds provided by this bond issue, in the amount of 
$20,000,000, will be used to support applied research and to 
provide for equity investments 
in promising Maine 
companies, 
public 
improvements 
in cultural buildings, weatherization and 
family and elderly housing, school renovations and improvements 
at the Raymond H. 
Fogler Library. 
Under this bond, the funds 
provided by this bond issue, in the amount of $20,000,000, will 
be used for the following purposes: 
1. 
Five million dollars for 
Maine 
Technology Institute 
Natural Resources Applied Research Fund competitive grants for 
applied research in natural-resource-based industries, including 
forest bio-products, 
marine fisheries 
and agriculture. 
These 
funds leverage $5,000,000 in required matching funds; 
2. 
Two million dollars for the Small Enterprise Growth Fund 
for equity investments in small Maine companies with potential 
for high growth. 
These funds leverage private equity investments; 
3. 
One 
million dollars 
for 
the 
New 
Century 
Community 
Program 
for 
communities 
with 
a 
Pine 
Tree 
Development 
Zone 
designation for capital improvements to cultural resources; 
4. 
Two million dollars for weatherization of single and 
multifamily homes occupied by low-income persons; 
5. 
Two 
million dollars 
for 
options for Native American 
Development 
Corporation. 
$2,000,000 in federal funds; 
tribes 
These 
family 
and 
through the 
funds 
would 
elderly housing 
Four Directions 
help 
attract 
6. 
Six 
million 
dollars 
renovations to public schools. 
matching local funds; and 
for 
repairs, 
improvements 
and 
The funds leverage $3,000,000 in 
7. 
expansion 
Two 
million 
plans 
for 
dollars 
for 
the 
Raymond 
critical 
H. 
Fogler 
improvements 
Library 
at 
and 
the 
University of Maine, 
the state research library for business, 
science and technology.