An Act To Authorize a General Fund Bond Issue To Stimulate the Midcoast Economy
Maine Legislature, Session 123, LD 0718
Committee: Appropriations and Financial Affairs
Sponsors: GERZOFSKY, EDMONDS, BERRY, BERUBE, PERCY, PRESCOTT, PRIEST, RINES, WATSON, WEBSTER

Legislative Document 
No. 718 
H.P.539 
House of Representatives, February 13,2007 
An Act To Authorize a General Fund Bond Issue To Stimulate the 
Midcoast Economy 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
Presented by Representative GERZOFSKY of Brunswick. 
Cosponsored by President EDMONDS of Cumberland and 
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frI· 7l/eu~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: BERRY of Bowdoinham, BERUBE of Lisbon, PERCY of Phippsburg, 
PRESCOTT of Topsham, PRIEST of Brunswick, RINES of Wiscasset, WATSON of Bath, 
WEBSTER of Freeport. 
Printed nn recycled paper 
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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 
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a period longer than 10 years from the date of the original issue of the bonds. At the 
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discretion of the Treasurer of State, with the approval of the Governor, any issuance of 
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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. 
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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 
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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. S. 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 and the 
Department of Transportation. 
Sec. 6. Allocations from General Fund bond issue. The proceeds of the sale 
of the bonds authorized under this Act must be expended as designated in the following 
schedule. 
Department of Economic and 
Community Development 
Provides competitive funds for 
infrastructure improvements and property 
acquisitions directly related to economic 
development and job growth. 
Page I - 123LR0979(01)-1 
$10,000,000 
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Provides funds to the Small Enterprise 
Growth Fund for venture capital. 
Provides funds to the Maine Technology 
Institute for research and development 
projects in the midcoast area. 
Finance Authority of Maine 
Provides funds to the economic recovery 
loan program at the Finance Authority of 
Maine designated for the midcoast area to 
assist businesses and landlords through 
the transition period of the 
decommissioning of Brunswick Naval Air 
Station and to help existing businesses 
expand. 
Department of Transportation 
Provides funds for rail and highway 
infrastructure improvements in the 
midcoast area. 
$2,000,000 
$1,000,000 
$3,000,000 
$4,000,000 
Sec. 7. Contingent upon ratification of bond issue. Sections I to 6 do not 
become effective unless the people of the State ratity 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 
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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 5 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 election; form of 
question; effective date. This Act must be submitted to the legal voters of the State at 
a statewide election held in the month of November following the passage of this Act. 
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The munlcipal 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 
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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 be used for the following purposes: 
I. The sum of $1 0,000,000 for infrastructure improvements and property acquisitions 
directly related to economic development and job growth; 
2. The sum of $2,000,000 for the Small Enterprise Growth Fund to provide venture 
capital specifically to the midcoast area for start-ups and expansion of existing 
businesses; 
3. The sum of $1,000,000 to the Maine Technology Institute for research and 
development in the midcoast area; 
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4. The sum of $3,000.000 for the economic recovery loan program designated to the 
midcoast area to help businesses and landlords through the transition period of the 
decommissioning of Brunswick Naval Air Station; and 
5. The sum of $4,000,000 for rail and highway infrastructure improvements in the 
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midcoast area?" 
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. 
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 $20,000,000, are to be used 
for economic stimulation to the midcoast area of Maine for infrastructure improvement 
and property acquisition directly related to economic development and job growth, to 
help businesses and landlords through the transition period of the decommissioning of 
Brunswick Naval Air Station, to provide funding for the expansion of existing business, 
to provide venture capital for start-ups and expansion of existing businesses, to fund 
research and development projects in the midcoast area by the Maine Technology 
Institute and to improve the rail and highway infrastructures.