An Act To Authorize a General Fund Bond Issue To Fund Water and Wastewater Infrastructure
Maine Legislature, Session 123, LD 1513
Committee: Appropriations and Financial Affairs
Sponsors: RA YE, KOFFMAN, BARTLETI, MARTIN, ROSEN, SMITH, EMERY, FAIRCLOTH, FLOOD, HAMPER

Legislative Document 
No. 1513 
S.P.536 
March 20, 2007 
An Act To Authorize a General Fund Bond Issue To Fund Water 
and Wastewater Infrastructure 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
Presented by Senator RA YE of Washington. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Representative KOFFMAN of Bar Harbor and Senators: BARTLETI of 
Cumberland, MARTIN of Aroostook, ROSEN of Hancock, SMITH of Piscataquis, 
Representatives: EMERY of Cutler, FAIRCLOTH of Bangor, FLOOD of Winthrop, HAMPER 
of Oxford. 
PrmkJ (111 rt'I.::yckU 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 $40,000,000 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 
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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 
Environmental Protection. 
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 
ENVIRONMENTAL PROTECTION 
Provides funds to construct wastewater 
pollution control facilities and to match 
federal funding for a revolving loan 
match. 
$5,000,000 
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Provides funds for drinking water 
$5,000,000 
facilities to match federal funding for a 
revolving loan match. 
Provides funds for combined sewer 
$26,000,000 
overflow issue~ and for repair, upgrade 
and new construction of wastewater 
pollution control facilities for 
municipalities that need supplementation 
to existing loans. 
Provides funds for removing and 
$4,000,000 
replacing some of the 1,500 existing 
overboard discharge systems in the State 
and for offering small community grants 
to repair failing septic systems that are 
polluting surface waters in areas where 
there is no centralized s~:wage collection. 
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 
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, arc 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. 
The municipal officers of this State shall notity 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 $40,000,000 bond issue to match federal funds tor the 
construction of wastewater pollution control facilities, to match federal 
funds for a revolving loan match for drinking water facilities, for funds to 
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repair, upgrade and complete new wastewater control facilities, for 
combined sewage overflow and for removing and replacing some of the 
1,500 overboard discharge systems in the State, as well as to help repair 
failing septic systems that are polluting surface waters?" 
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 
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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 $40,000,000, will be used to 
match federal funds for the construction of wastewater pollution control facilities, to 
match federal funds for a revolving loan match for drinking water facilities, for funds to 
repair, upgrade and complete new wastewater control facilities, for combined sewage 
overflow and for removing and replacing some of the 1,500 overboard discharge systems 
in the State, as well as to help repair failing septic systems that are polluting surface 
waters. 
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