An Act To Authorize a General Fund Bond Issue to Stimulate Maine's Economy
Maine Legislature, Session 122, LD 0844
Committee: Appropriations and Financial Affairs
Sponsors: BROMLEY, RECTOR, BRENNAN, BRYANT, DOW, EDMONDS, MARTIN, LERMAN, MOODY, RICHARDSON

Legislative Document 
No. 844 
S.P.283 
In Senate, February 23, 2005 
An Act To Authorize a General Fund Bond Issue to Stimulate 
Maine's Economy 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
Presented by Senator BROMLEY of Cumberland. 
Cosponsored by Representative RECTOR of Thomaston and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: BRENNAN of Cumberland, BRYANT of Oxford, DOW of Lincoln, President 
EDMONDS of Cumberland, MARTIN of Aroostook, Representatives: LERMAN of Augusta, 
MOODY of Manchester, Speaker RICHARDSON of Brunswick. 
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 
$120,000,000 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 
supervision of 
the Department of 
Economic 
and 
Community 
Development, 
the Finance Authority of Maine, 
the Maine State 
Housing Authority and the University of Maine System. 
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-LR1708(l) 
The proceeds 
Act must be 
ECOlf<»IIC AND C<MmHITY DEVELOPMENT, 
DEPARTMENT OF 
Capitalization of the Municipal 
Investment Trust Fund to provide 
loans and grants to municipalities 
for public facilities and infrastructure. 
ECOlf<»IIC AND C<MmHITY DEVELOPMENT, 
DEPARTMENT OF 
Provides funds to the Maine 
Biomedical Research Fund. 
ECONC»IIC AND C<MmHITY DEVELOPMENT, 
DEPARTMENT OF 
Provides funds to applied technology 
development centers. 
ECON<»IIC AND C<MmHITY DEVELOPMENT, 
DEPARTMENT OF 
Provides funds to partner with the 
marine biotechnology industry to 
undertake marine biotechnology 
research. 
FINANCE AUTHORITY OF MAINE 
Provides funds to the Small Enterprise 
Growth Fund. 
FINANCE AUTHORITY OF MAINE 
Provides funds for direct business 
support. 
MAINE STATE HOUSING AUTHORITY 
Provides funds for affordable 
workforce housing. 
UNIVERSITY OF MAINE SYSTEM 
Provides funds for the Maine 
Economic Improvement Fund for 
research and development activities. 
$15,000,000 
$10,000,000 
$5,000,000 
$22,000,000 
$6,000,000 
$25,000,000 
$12,000,000 
$25,000,000 
Sec. 7. Contingent upon ratification of bond issue. 
Sections 1 to 
do not become effective unless the people of the State ratify 
the issuance of the bonds as set forth 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. 
This Act must be submitted 
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 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 
$120,000,000 
bond 
issue 
to 
stimulate 
economic development in the State through investments in 
research 
and 
development, 
municipal 
infrastructure 
and 
affordable housing and direct business support? 
The bonds, 
in the following amounts, would be used for the following 
purposes: 
1. 
The 
sum 
of 
$15,000,000 
to 
create 
jobs 
and 
reduce 
property 
taxes 
by 
providing 
grants 
and 
loans 
to 
municipalities for public facilities and infrastructure; 
2. 
The 
sum 
of 
$10,000,000 
for 
medical 
research 
and 
development by Maine-based biomedical research institutions; 
3. 
The sum of $5,000,000 to support the State's applied 
development technology centers; 
4. 
The 
sum 
biotechnology 
research; 
of 
$22,000,000 
to partner with the marine 
industry to 
undertake 
marine 
biotechnology 
.. 
5. 
The sum of 
$6,000,000 to provide access to capital for 
small businesses that demonstrate potential for high growth 
and public benefit; 
6. 
The 
sum of $25,000,000 to provide direct support to 
businesses in the State; 
7. 
The sum of $12,000,000 for affordable housing; and 
8. 
The sum of $25,000,000 for University of Maine research 
and development activities." 
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 
The funds provided by this bond issue, in the amount of 
$120,000,000, will be used to stimulate economic development in 
the 
state 
through 
investments 
in 
research 
and 
development, 
municipal 
infrastructure 
and 
affordable 
housing 
and 
direct 
business support in the State as fOllows: 
1. 
The 
sum 
of 
$15,000,000 
to 
create 
jobs 
and 
reduce 
property taxes by providing grants and loans to municipalities 
for public facilities and infrastructure; 
2. 
The 
sum 
of 
$10,000,000 
for 
medical 
research 
and 
development by Maine-based biomedical research institutions; 
3. 
The sum of $5,000,000 to support the State's applied 
development technology centers; 
4. 
The 
sum 
of 
$22,000,000 
to partner with the marine 
biotechnology industry to undertake marine biotechnology research; 
5. 
The sum of $6,000,000 to provide access to capital for 
small businesses that demonstrate potential for high growth and 
public benefit; 
6. 
The 
sum of $25,000,000 to provide direct support to 
businesses in the State; 
7. 
The sum of $12,000,000 for affordable housing; and 
8. 
The sum of $25,000,000 for University of Maine research 
and development activities.