An Act To Authorize a General Fund Bond Issue for Economic Recovery
Maine Legislature, Session 124, LD 0214
Committee: Business, Research and Economic Development
Sponsors: GILES, SCHNEIDER, CLEARY, COHEN, DILL, PERCY, SMITH, STRANG BURGESS, RECTOR

MAINE STATE LEGISLATURE 
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124thMAINE EGISLATU 
FIRST REGULAR SESSIOr~-2009 
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Legislative Document 
No. 214 
H.P.179 
House of Representatives, January 21,2009 
An Act To Authorize a General Fund Bond Issue for Economic 
Recovery 
(EMERGENCY) 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Representative GILES of Belfast. 
Cosponsored by Senator SCHNEIDER of Penobscot and 
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1I7.1l!1I£~{ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: CLEARY of Houlton, COHEN of Portland, DILL of Cape Elizabeth, 
MacDONALD of Boothbay, PERCY of Phippsburg, SMITH of Monmouth, STRANG 
BURGESS of Cumberland, Senator: RECTOR of Knox. 
Printcd on I'ct.:)'cJed pLlpcr 
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, 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, this legislation requires a bond issue to go before the voters before 
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adjournment and is associated with the special election in June; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
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 ofthe full faith and credit ofthe 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 Actlapse t6 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 
expt:mded'as set out in this' Act under the cl.irection and supervision of the Finance 
Authority of Maine. 
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Pagel -124LR0791(Ol)-1 
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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. 
FINANCE AUTHORITY OF MAINE 
Provides funds to increase the Finance 
Authority of Maine economic recovery 
loan program. 
Provides funds to increase the Finance 
Authority of Maine loan insurance 
program. 
$10,000,000 
$10,000,000 
Sec. 7. Contingent upon ratification of bond issue. Sections I to 9 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 
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 June following passage of this Act. 
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municipal officers of this State shaIl 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 $20,000,000 bond issue to increase 2 Finance Authority 
of Maine business programs, a direct loan program and a loan insurance 
program, by $10,000,000 each to assist businesses facing loss of 
revenues and that require business restructuring?" 
The legal voters of each city, town and plantation shaIl 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 shaIl 
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; 
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The Secretary of State shall prepare and furnish to each city, town and plantation all . 
ballots, returns and copies of this Ac~ necessary to. carry out the purposes of this 
referendum. 
Emergency clause. 
In view of the emergency·· cited in the preamble, this 
legislation takes effect when approved. 
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SUMMARY 
The funds provided by this bond issue, in the amount of $20,000,000, will be used to 
increase 2 Finance Authority of Maine business programs, a direct loan program and a 
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loan insurance program, by $10,000,000 each to assist businesses facing loss of revenues 
and that require business restructuring; 
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