An Act To Make Additional Allocations from the Highway Fund and Other Funds for the Expenditures of State Government and To Change Certain Provisions of State Law Necessary to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2005 and June 30, 2006
Maine Legislature, Session 122, LD 1974
Committee Amendment CA_B-SA_G_S658 (Senate)

SENATE 
AMENDMENT "t;." to COMMITTEE 
AMENDMENT 
"B" to H.P. 
1382, L.D. 1974, Bill, "An Act To Make Additional Allocations 
from the Highway Fund and Other Funds for the Expenditures of 
State Government and To Change Certain Provisions of State Law 
Necessary to the Proper Operations of State Government for the 
Fiscal Years Ending June 30, 2005 and June 30, 2006" 
Amend the amendment by adding after Part P the following: 
'PARTQ 
Sec. Q-l. Transfer from unappropriated surplus at close of fiscal 
year 2005-06. Notwithstanding any other provision of law, at the 
close of fiscal year 2005-06 the State Controller shall transfer 
an amount up to $30,000,000 available from the unappropriated 
surplus of the General Fund to the Department of Transportation, 
Highway and Bridge Improvement Highway Fund account after all 
required 
deductions 
of 
appropriations, 
budgeted 
financial 
commitments and adjustments considered necessary by the State 
Controller have been made and as the next priority after the 
transfers required pursuant to the Maine Revised Statutes, Title 
5, 
sections 1507 
and 1511 and before the transfers required 
pursuant to Title 5, section 1536, subsection 1, paragraphs A to 
E. 
Sec. Q-2. Purpose. The transfer under section 1 of this Part 
is in addition to the transfer authorized in Public Law 2005, 
chapter 519, Part HHH, 
section 2 and is intended to provide 
additional resources to the Highway Fund on a one-time basis to 
address the Highway Fund shortfall and does not represent any 
future General Fund commitment to the Highway Fund. 
SENATE AMENDMENT 
SENATE AMENDMENT 'G" to COMMITTEE AMENDMENT "B" to H.P. 1382, 
L.D. 1974 
Sec. Q-3. 
Transfer. 
Notwithstanding 
the 
Maine 
Revised 
Statutes, Title 5, section 1585, or any other provision of law, 
the amount transferred pursuant to this Part is considered an 
adjustment to allocations in fiscal year 2006-07. 
These funds 
may be allotted by financial order upon recommendation of the 
State Budget Officer and approval of the Governor. 
PARTR 
Sec. R-I. Definitions. As used in this Part, unless the context 
otherwise 
indicates, 
the 
following 
terms 
have 
the 
following 
meanings. 
1. Bank. "Bank" means the Maine Municipal Bond Bank. 
2. GARVEE. "GARVEE" means grant anticipation revenue vehicle 
debt financing. 
3. 
Qua1ified 
transportation 
projects. 
"Qualified 
transportation 
projects" 
means 
projects 
to 
reconstruct, 
rehabilitate or replace existing bridges and existing arterial 
and major collector highways that meet eligibility requirements 
of the Federal Highway Administration. 
"Qualified transportation 
projects" does not include projects that predominately consist of 
a new highway or a new bridge on a new location, unless approved 
by the Legislature. 
4. Revenues. "Revenues" means, in the case of bonds or notes 
issued 
by 
the 
bank 
to 
finance 
the qualified transportation 
projects, 
payments of funds derived from the Federal Highway 
Administration 
and 
other 
investments, 
gifts, 
grants, 
contributions, 
appropriations, 
income 
and 
any 
other 
amounts 
pledged to secure payment of such bonds or notes. 
Sec. R-2. Qualified transportation projects costs. Costs of the 
qualified transportation projects include, without limitation, 
costs related to: 
1. 
Purchase price. 
The purchase price or acquisition of 
any property or interests in that property or other rights 
necessary or convenient for such projects; 
2. 
Study, 
permitting 
and 
engineering. 
The 
study, 
permitting and engineering of any such projects, including the 
preparation of plans and specifications, surveys and estimates of 
cost; 
3. 
Construction. 
Construction, 
reconstruction, 
paving, 
repaving, 
building, 
alteration, 
repair, 
restoration, 
SENATE AMENDMENT 
.'<0. 
~ 
SENATE AMENDMENT "(J.,, to COMMITTEE AMENDMENT "B" to H.P. 1382, 
L.D. 1974 
environmental 
review 
or 
remediation, 
enlargement 
or 
other 
improvement, including all labor, materials, machinery, fixtures 
and equipment, including rolling stock or vehicles; 
4. 
Professional 
services. 
Engineer ing, 
architectural, 
legal and other professional services; 
5. 
Financial quarantees. 
Reserves, insurance, letters of 
credit or other financial guarantees for payment of future debt 
service on bonds or notes; and 
6. 
Other costs. 
All other costs or expenses necessary or 
convenient 
to 
such 
projects, 
including 
the 
financing 
or 
refinancing of the projects. 
Sec. R-3. GARVEE financing authorized. Notwithst.anding 
any 
other provision of law, upon certification, the bank shall issue 
from time to time, in addition to any GARVEE bonds heretofore 
authorized and issued, up to $30,000,000 of GARVEE bonds to be 
repaid solely from annual federal transportation appropriations 
for funding for qualified transportation projects. 
The bank shall issue GARVEE bonds from time to time pursuant 
to a resolution to be adopted by the bank. 
The 
GARVEE 
bonds 
issued must be secured pursuant to 
a 
pledge 
and certificate 
issued by the Department of Transportation and approved by the 
State Budget Officer. The pledge and certificate must contain 
provl.sl.ons that dedicate and pledge receipt of future federal 
transportation funds to secure the payment of the GARVEE bonds, 
including principal, interest and issuance costs. The terms of 
the GARVEE bonds, their repayment schedule and other provisions 
to facilitate their creditworthiness are determined by the bank 
in consultation with the Department of Transportation and the 
State Budget Officer. The pledge and certificate are a part of 
the 
contract with 
the 
holders 
of 
the 
GARVEE 
bonds 
to 
be 
authorized. 
The GARVEE 
bonds must be in the form, 
bear the date or 
dates, mature at the time or times and have such other terms as 
determined 
by 
the 
bank 
and 
approved 
by 
the 
Department 
of 
Transportation and the State Budget Officer, except that a GARVEE 
bond may not mature more than 20 years from the date of its issue. 
GARVEE bonds issued under the provisions of this Part do not 
constitute a debt or liability of the State or of any political 
subdivision of the State, or a pledge of the full faith and 
credit of the State or of any political subdivision of the State, 
but are payable solely from the funds and revenues pledged for 
that purpose. 
SENATE AMENDMENT 
i-~' 
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SENATE AMENDMENT "G" to COMMITTEE AMENDMENT "B" to H.P. 
L.D. 1974 
The proceeds from the sale of the GARVEE bonds are 
deposited 
into 
the 
appropriate 
Other 
Special 
Revenue 
account. 
1382, 
to be 
Funds 
Sec. R-4. Maine Municipal Bond Bank provIsions. The bank has 
all the powers and duties provided by the Maine Revised Statutes, 
Title 30-A, chapter 225, modified and supplemented as provided in 
this section for the purposes set forth in this section. All 
words, terms and phrases have the same meaning as provided in 
Title 30-A, chapter 225, except as modified and supplemented in 
this section for the purposes set forth in this section. 
1. Lending and borrowing powers. 
The bank may assist the 
State by borrowing money to finance or refinance from time to 
time 
all 
or 
a 
portion 
of 
the 
costs 
of 
the 
qualified 
transportation projects and make the proceeds of such borrowing 
available to the Department of Transportation at terms agreed 
upon by the bank, the State Budget Officer and the Department of 
Transportation. The principal of and interest on any bonds or 
notes issued by the bank to finance or refinance the qualified 
transportation projects must be secured by a pledge of funds paid 
by the Federal Highway Administration and any matching funds of 
the State as necessary and legally available that are allocated 
for 
such 
purpose 
on 
an 
annual basis 
by 
the 
Department 
of 
Transportation in its sole discretion and may further be secured 
by 
a 
pledge 
of 
any 
rights, 
grants, 
reserves, 
contracts, 
agreements or other revenues or property as may be determined by 
resolution of the bank. Bonds, notes, leases, agreements or other 
forms of debt or liability entered into or issued by the bank 
under this section are not in any way a debt or liability of the 
State and do not constitute a loan of the credit of the State or 
create any debt or liability on behalf of the State or constitute 
a pledge of the faith and credit of the State. Each bond, note, 
lease, agreement or other evidence of debt or liability entered 
into by the bank must contain a statement to the effect that the 
bank is obligated to pay the principal, interest, 
redemption 
premium, 
if any, 
and other 
amounts payable solely from 
the 
sources pledged for that purpose by the bank and that neither the 
faith and credit nor the taxing power of the State is pledged to 
the payment of the principal, interest, premium, charge, fee or 
other amount on the bond, note, lease, agreement or other form of 
indebtedness. 
2. 
Povers 
with 
respect 
to 
qualified 
transportation 
projects. 
In addition to all other powers elsewhere granted to 
the 
bank, 
the 
bank 
may, 
with 
respect 
to 
the 
qualified 
transportation projects: 
A. 
Acquire title to, 
or an interest in, 
the qualified 
transportation projects; 
SENATE AMENDMENT 
SENATE AMENDMENT "G-" to COMMITTEE AMENDMENT "B" to H.P. 1382, 
L.D. 1974 
B. 
Make and execute contracts and all other instruments, 
including any 
amendments or modifications to the extent 
permitted under its contract with holders of its bonds or 
notes, with the State, the Federal Highway Administration or 
any other legal entity in furtherance of the purposes of 
this Part; and 
C. 
Lease the qualified transportation projects to the State 
or 
any agency, 
political subdivision, 
instrumentality or 
department of the State to further the purposes of this 
Part, as long as the obligation of the State or of any such 
agency, political subdivision, instrumentality or department 
to 
make 
any 
rental 
or 
other 
payments 
are 
considered 
executory only to the extent of funds paid by the United 
States Department of Transportation and any matching funds 
of the State as necessary and legally availab] e that are 
allocated for 
such 
purpose 
on 
an 
annual 
basis 
by 
the 
Department of Transportation in its sole discretion, and as 
long as the liability on account of the State or any such 
agency, political subdivision, instrumentality or department 
is not incurred by the State or any such agency, political 
subdivision, instrumentality or department beyond the money 
available for that purpose. 
3. 
Pledge of federal highway funds. 
The Department of 
Transportation is authorized to transfer, assign or pledge any or 
all of the funds paid to it, directly or indirectly, by the 
Federal Highway Administration with respect to the qualified 
transportation projects, together with any matching funds of the 
State as necessary and legally available that are allocated for 
such 
purpose 
on 
an 
annual 
basis 
by 
the 
Department 
of 
Transportation in its sole discretion. Any such pledge does not 
constitute a debt or liability on behalf of the State or of any 
political subdivision of the State or a loan of the credit of the 
State or of any political subdivision of the State or a pledge of 
the faith and credit of the State or of any political subdivision 
of the State. A decision by the Department of Transportation not 
to allocate such federal transportation funds or state matching 
funds as necessary and legally available in any given fiscal year 
for the payment of such bonds or notes or related costs and 
expenses may not be construed to constitute an action impairing 
any contract entered into by the bank under this Part. 
4. 
Contracts 
are 
subject 
to 
continuing 
federal 
appropriations of federal transportation funds. 
Every contract 
relating to the issuance of bonds or notes to finance all or a 
part of the costs of the qualified transportation projects must 
provide that all financial obligations of the State or of any 
agency, political subdivision, instrumentality or department of 
SENATE AMENDMENT 
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SENATE AMENDMENT 'G-" to COMMITTEE AMENDMENT "B" to H.P. l382, 
L.D. 1974 
the State in regard to the portion of the principal of and 
interest on 
such bonds 
or notes 
and the related costs 
and 
expenses that may be paid 
from federal 
transportation funds 
pursuant to federal law and any agreement between the Federal 
Highway Administration or 
any agency of the Federal 
Highway 
Administration and the Department of Transportation that is or is 
to be the initial recipient of such federal transportation funds 
are 
subject 
to continuing federal 
appropriations 
of 
federal 
transportation funds at a level equal to or greater than the 
amount needed to pay the federal share of principal, interest and 
costs and expenses on such bonds or notes. 
5. 
State 
agency 
powers. 
Each 
agency, 
instrumentality, 
department or other political subdivision of the State, for the 
purpose of aiding and cooperating in the financing, construction, 
operation 
or 
maintenance 
of 
the 
qualified 
transportation 
projects, has the power: 
A. 
To sell, lease, 
assign or otherwise 
personal property or 
property; and 
loan, donate, 
transfer to 
interests in 
grant, convey, 
the 
bank 
any 
any real or 
pledge, 
real 
or 
personal 
B. 
To enter into agreements, 
including loan and pledge 
agreements, 
with 
any 
person 
for 
the 
joint 
financing, 
construction, 
operation or maintenance 
of 
the qualified 
transportation projects 
and 
to 
agree 
to 
make 
payments, 
without limitation as to amount except as set forth in the 
agreement, 
from revenues received in one or more fiscal 
years by the Department of Transportation or any person to 
defray the costs of the financing, construction, operation 
or maintenance of the qualified transportation projects. 
To 
assist 
in 
the 
financing, 
construction, 
operation 
or 
maintenance 
of 
the 
qualified 
transportation 
projects, 
any 
governmental unit or political subdivision may, 
by contract, 
pledge, 
assign or 
otherwise 
transfer 
to 
the 
Department 
of 
Transportation or otherwise as directed by the bank all or a 
portion of federal transportation funds paid to the governmental 
unit or political subdivision or the revenues from any other 
legally available source. 
6. 
Corporate powers. 
In addition to all other powers 
granted to the bank, for the purpose of carrying out this Part, 
the bank may: 
A. 
Make, enter into and enforce all 
necessary, 
convenient 9r desirable 
financing 
or 
refinancing 
the 
transportation projects; 
contracts or agreements 
for 
the 
purposes 
of 
qualified 
federal 
SENATE AMENDMENT 
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SENATE AMENDMENT "G", to COMMITTEE AMENDMENT "B" to H.P. 1382, 
L.D. 1974 
B. 
Invest any funds or money of the bank not then required 
for funding costs of the qualified transportation projects 
in the same manner as permitted for the investment of funds 
belonging to the State or held by the Treasurer of State, 
except as otherwise permitted or provided by this Part; and 
C. 
Fix and prescribe any form of application or procedure 
to be required of the State or of any agency, political 
subdivision, instrumentality or department of the State with 
respect to the qualified transportation projects and fix the 
terms 
and 
conditions 
of 
the 
qualified 
transportation 
projects and may enter into agreements with the State or any 
agency, political subdivision, instrumentality or department 
of the State or of any political subdivision of the State in 
connection with the qualified transportation projects. 
7. 
Exception to prohibited acts and limitation of powers. 
Notwi thstanding the provl.sl.ons of the Maine Revised Statutes, 
Title 3D-A, section 5958, the bank may make loans to the State or 
any agency, political subdivision, instrumentality or department 
of the State in connection with the financing of the qualified 
transportation projects. 
8. 
Bonds and notes of bank. 
Notwithstanding the provl.sl.ons 
of the Maine Revised Statutes, Title 30-A, section 6003, the bank 
may issue its bonds from time to time in any principal amounts 
that it considers necessary to provide funds for any of the 
purposes authorized by this Part, including the financing or 
refinancing of all or a portion of the costs of the qualified 
transportation projects. 
9. 
Receipt of federal appropriation money. 
The Treasurer 
of State may receive from the Federal Government any amount of 
money as appropriated, allocated, granted, turned over or in any 
way provided for the purposes of this Part. In connection with 
the financing of the qualified transportation projects, these 
amounts must be credited to and deposited in the Highway and 
Bridge Improvement account, 
Federal Expenditures Fund and are 
available to the bank. 
10. 
Agreements 
with 
financial 
institutions. 
Notwithstanding the provl.sl.ons of the Maine Revised Statutes, 
Title 3D-A, section 6019, the bank may enter into any agreements 
or contracts with 
any 
commercial 
banks, 
trust 
companies 
or 
banking or other financial institutions within or outside the 
State that are necessary, desirable or convenient in the opinion 
of the bank to provide any other services to the bank to assist 
the bank in effectuating the purposes of this Part. 
SENATE AMENDMENT 
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SENATE AMENDMENT "er" to COMMITTEE AMENDMENT "B" to H.P. 1382, 
L.D. 1974 
11. 
Remedies of holders of bonds and notes. 
In addition to 
all other rights or remedies set forth in the Maine Revised 
Statutes, Title 30-A, section 6023, subsection 2, the trustee as 
appointed pursuant to that section may, and upon written request 
of the holders of 25% in principal amount of all bonds then 
outstanding that have been issued to finance or refinance all or 
a portion of the costs of the qualified transportation projects 
shall, in the trustee' s or the bank' s own name, by mandamus or 
other suit, action or proceeding at law or in equity, enforce all 
rights of such bondholders, including the right to require the 
bank 
to 
collect payments 
and other 
amounts 
and 
to collect 
interest and amortization payments under agreements payable to 
the bank and pledged to payment of such bonds, adequate to carry 
out any agreement as to, or pledge of, those payments and other 
amounts and of such interest and amortization payments and to 
require the bank to carry out any other agreements with the 
bondholders and to perform its duties under this Part. 
Sec. R-S. Contingent upon ratification. 
Sections 
1. 
to 4 
and 
section 7 of this Part do not become effective unless the people 
of the State ratify the issuance of the bonds as set forth in 
this Part. 
Sec. R-6. Referendum for ratification; submission at general election; 
form of question; effective date. 
This Part must be submitted to the 
legal voters of the State of Maine at the next general election 
in the month of November 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 general election, to vote 
on the acceptance or rejection of this Part by voting on the 
following question: 
"Do you favor the issuance of $30,000,000 in revenue bonds 
to be used to improve existing roads and bridges statewide 
to be repaid with federal transportation funds?" 
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 within 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 proclamation. 
SENATE AMENDMENT 
~t" 
SENATE AMENDMENT '&" to COMMITTEE AMENDMENT "B" to H.P. 1382, 
L.D. 1974 
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 purpose of this referendum. 
Sec. R·7. Allocations. Allocations to carry out the purposes 
of 
this 
Part 
will 
be 
created 
by 
financial 
orders. 
The 
Commissioner of Transportation is authorized to allot these funds 
by financial order upon the recommendation of the State Budget 
Officer 
and 
the 
approval 
of 
the 
Governor. 
The 
transferred 
amounts are considered adjustments to allocations.' 
Further amend the amendment by 
any 
nonconsecutive 
Part 
letter 
or 
consecutively. 
relettering or renumbering 
section 
number 
to 
read 
SUMMARY 
This amendment directs the State Controller to transfer up 
to $30,000,000 from the available unappropriated surplus of the 
General 
Fund 
at 
the 
close 
of 
fiscal 
year 
2005-06 
to 
the 
Department of Transportation, 
Highway 
and 
Bridge 
Improvement 
Highway Fund account. 
The amendment states the intent of the 
transfer is to provide additional resources on a one-time basis 
to address the Highway Fund shortfall. 
The amendment further 
provides that the amount transferred may be allotted by financial 
order upon the recommendation of the State Budget Officer and is 
to be considered an adjustment to allocations in fiscal year 
2006-07. 
This amendment also authorizes, subject to approval of the 
voters in a statewide referendum, the Maine Municipal Bond Bank 
to issue $30, 000, 000 in federally authorized grant anticipation 
revenue vehicle debt financing, or GARVEE, 
revenue bonds to be 
repaid with federal transportation funds, the proceeds of which 
will be used by the Department of Transportation to improve 
existing highways and bridges statewide. 
SPONSORED BY: 
(Senator DAMON 
COUNTY: 
Hancock 
FISCAL NOTE REQUIRED 
(See attached) 
SENATE AMENDMENT 
Approved: 5121106 ~ae 
LD 1974 
LR3082(38) 
An Act to Make Additional Allocations from the Highway Fund and Other Funds for the 
Expenditures of State Government and To Change Certain Provisions of State Law Necessary to the 
Proper Operations of State Government for the Fiscal Years Ending June 30, 2006 and June 30, 2007 
Fiscal Note for Senate Amendment "G--w to Committee Amendment "B" 
Sponsor: Sen. Damon 
Fiscal Note Required: Yes 
Fiscal Note 
Potential transfer of unbudgeted unappropriated surplus - General Fund 
Potential current biennium cost increase - Highway Fund 
Referendum Costs 
Referendum Costs 
MonthlY ear 
Election Type 
Question 
Length 
Nov-06 
General 
Referendum 
Standard 
The Secretary of State's budget includes sufficient funds to accommodate one ballot of average length for the general 
election in November. If the number or size of the referendum questions increases the ballot length, an additional 
appropriation of $8,000 or more may be required. 
Fiscal Detail and Notes 
The authorization of the transfer of up to $30,000,000 from the unappropriated surplus of the General Fund to the 
Highway and Bridge Improvement Highway Fund account in fiscal year 2006-07 will depend on whether any 
unbudgeted balance of the unappropriated surplus of the General Fund exists to effect the transfer. Highway Fund 
allocations for the Highway and Bridge Improvement program in fiscal year 2006-07 will be increased by the amount 
of any transfer that does take place. 
If the GARVEE bond proposed in this amendment is approved by the voters in a statewide election, debt service 
would be financed entirely through the use of future federal revenues from the Federal Highway Administration. 
LR3082(38) - Fiscal Note - Page 1 of 1