An Act To Authorize a General Fund Bond Issue for Research and Development To Stimulate Maine's Innovation Economy
Maine Legislature, Session 123, LD 0335
Committee: Appropriations and Financial Affairs

Legislative Document 
No. 335 
S.P.107 
January 24,2007 
An Act To Authorize a General Fund Bond Issue for Research and 
Development To Stimulate Maine's Innovation Economy 
Reported by Senator BROMLEY of Cumberland for the Joint Select Committee on 
Research, Economic Development and the Innovation Economy pursuant to S.P. 847. 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed under Joint Rule 218. 
JOY J. O'BRIEN 
Secretary of the Senate 
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 $250,000,000 to raise funds for research and development 
equipment and infrastructure as authorized by section 6. No more than $50,000,000 may 
lObe issued in the first year and no more than $50,000,000 may be issued in each of the 4 
subsequent years. The bonds are a pledge of the full faith and credit of the State. The 
bonds may not run for a period longer than 20 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. 
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. 
ECONOMIC AND COMMUNITY 
DEVELOPMENT, DEPARTMENT 
OF - MAINE TECHNOLOGY 
INSTITUTE 
Funds to the Maine Technology Institute 
$250,000,000 
Provides for the use of bond proceeds to 
be 
used 
for 
capital 
infrastructure, 
equipment and activities as prioritized by 
the State's innovation economy action 
plan. 
The funds must be allocated 
through a competitive process to Maine-
based public and private institutions and 
current and emerging targeted technology 
sector coalitions, pursuant to the Maine 
Revised Statutes, Title 5, section 15301, 
subsection 2, engaged in research and 
technology 
development 
and 
commercialization, and must be awarded 
to leverage matching funds on at least a 
one-to-one basis. 
TOTAL ALLOCA nONS 
$250,000,000 
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. 
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 
1 
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, 
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 bond issue of up to $50,000,000 for each of the next 5 
years totaling up to $250,000,000 for competitive grants administered by 
the Maine Technology Institute to stimulate economic growth and job 
creation through investments in research and development and 
commercialization, in anticipation of an additional $250,000,000 in 
federal and private funding?" 
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 
This bill implements a recommendation of the Joint Select Committee on Research, 
Economic Development and the Innovation Economy. The bill authorizes a bond issue of 
up to $50,000,000 per year for each of the next 5 years totaling up to $250,000,000 to be 
used for competitive grants to stimulate economic growth and job creation through 
investments in research and development and commercialization.