An Act To Authorize a General Fund Bond Issue for Research and Development to Create Jobs in Maine's Emerging Biobased Plastics Industry
Maine Legislature, Session 123, LD 1611
Committee: Appropriations and Financial Affairs
Sponsors: SMITH, SHERMAN, CAIN, CLEARY, FISCHER, JACKSON, MARTIN

Legislative Document 
No. 1611 
H.P.1133 
House of Representatives, March 21,2007 
An Act To Authorize a General Fund Bond Issue for Research and 
Development to Create Jobs in Maine's Emerging Biobased Plastics 
Industry 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
Presented by Representative SMITH of Monmouth. 
Cosponsored by Senator SHERMAN of Aroostook and 
11/~ 
/J1.1i/tu~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: CAIN of Orono, CLEARY of Houlton, FISCHER of Presque Isle, JACKSON 
of Allagash, Senator: MARTIN of Aroostook. 
Printec..l lln n:cyded 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 $30,000,000 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 
lOa 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 and the University of Maine System. 
Sec. 6. Allocations from General Fund bond issue. The proceeds of the sale 
of the bonds authorized under this Act must be expended to support research, 
development and commercialization projects that support the emerging biobased plastics 
industry and related green chemistry research consistent with the following criteria and 
purposes. The funds will be administered by the Maine Technology Institute through a 
biobased plastics and green chemistry fund. 
A biobased plastics and green chemistry fund may only be used to support projects 
that support or enhance cluster development for innovative technology; are consistent 
with the objectives of the Maine science and technology action plan; represent a 
collaborative effort between the public, private and nonprofit sectors; advance research 
and development in one or more of the following priority sectors: advanced materials and 
composites, forestry and agriculture or environmental technologies; and leverage private 
sector investments, other state funding, federal research funding or other matching funds. 
The types of projects eligible for competitively awarded funding from a biobased 
plastics and green chemistry fund for equipment and capital expenditures include, but are 
not limited to: 
1. Research and development of processes to manufacture biobased plastics from 
potatoes, other agricultural crops, forest products or other biomass; 
2. Commercialization of biobased plastics production from potatoes or other 
agricultural crops at one or more facilities to be located in Aroostook County; 
3. Infrastructure to support the collection, storage and processing of potatoes, other 
agricultural crops or related agricultural waste products to provide feedstock for the 
manufacture of biobased plastics; 
4. Research and development of agricultural crops such as potatoes and sugar beets h' 
provide a source of starch or sugar to support biobased plastics production; 
5. Research and infrastructure development that enables biobased plastics pruduction 
to meet emerging sustainability guidelines that promotp sustainable agriculture. (~nergy 
efficiency, nontoxic additives. biocomposting and recycling; 
6. Research and development of specific applications to expand the use of biobased 
plastics in manufacturing and services and to develop new markets for biobased plastics; 
7. Green chemistry research that leads to the development of safer alternatives to 
hazardous chemicals or petroleum-based plastics; and 
8. Related research infrastructure capacity within the University of Maine System. 
DEPARTMENT OF ECONOMIC 
AND COMMUNITY 
DEVELOPMENT 
Provides funds for a biobased plastics and 
green chemistry fund to be administered 
by the Maine Technology Institute. 
$30,000,000 
Sec. 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 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. 
I 
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 de authorized 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. 
The municipal officers of this State shall notify the inhabitants of their respective cities, 
II 
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 A~t by voting on the following 
question: 
"Do you favor a $30,000,000 bond issue to fund research, development 
and commercialization of biobased plastics production using potatoes 
and other agricultural and forest products as the raw material through 
competitive awards administered by the Maine Technology Institute 
through a biobased plastics and green chemistry fund for collaborative 
projects involving the private, public and nonprofit sectors, including the 
University of Maine System?" 
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 $30,000,000, are to fund 
research, development and commercialization of the emerging biobased plastics industry 
in Maine. The Maine Technology Institute will administer competitive awards through a 
biobased plastics and green chemistry fund for collaborative projects that include, but are 
not limited to, research and development of processes to manufacture biobased plastics 
from agricultural and forest products and the commercialization of biobased plastics 
production from potatoes and agricultural crops in Aroostook County.