An Act To Authurize a General Fund Bond Issue To Support Small Businesses' Access to Capital
Maine Legislature, Session 124, LD 0732
Committee: Appropriations and Financial Affairs
Sponsors: MITCHELL, DAMON, SCHNEIDER, RECTOR, GILES, SMITH, TARDY, WRIGHT

MAINE STATE LEGISLATURE 
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f\TE LAW UBRAP':' 
AUGUSTA! ~~Al~mE 
124th MAINE LEGISLATUIm 
Legislative Document 
No. 732 
S.P.282 
In Senate, February 24, 2009 
An Act To Authurize a General Fund Bond Issue To Support Small 
Businesses' Access to Capital 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
Presented by President MITCHELL of Kennebec. 
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JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Senators: DAMON of Hancock, SCHNEIDER of Penobscot and 
Senator: RECTOR of Knox, Representatives: GILES of Belfast, MacDONALD of Boothbay, 
SMITH of Mo:omouth, TARDY of Newport, WRIGHT of Berwick. 
Printed on recycled pDpcr 
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 ofthe 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 corning 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 Small 
Enterprise Growth Board and the Finance Authority of Maine. 
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. 
SMALL ENTERPRISE GROWTH 
BOARD 
Provides funds for disbursements to 
qualifying small businesses in the. State 
seeking to pursue eligible projects. 
$10,000,000 
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FINANCE AUTHORITY OF MAINE 
- Provides funds for the Regional Economic 
Development Revolving Loan Program 
Fund and the economic recovery loan 
program. 
$20,000,000 
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
l 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 November following 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'lawfor holding a statewide election, 
to vote on the acceptance or rejecti(m of this Act by voting on the following question: 
"Do you favor a $30,000,000 bond issue to be used to provide for 
disbursements' to qualifying small businesses in the State seeking to 
pursue eligible proj ects and for funds for the Regional . Economic 
Development Revolving Loan Program Fund and the economic recovery 
loan program?" 
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. i. 
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 rriajority 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, will be used to , 
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provide for disbursements to qualifying small businesses in the State seeking to pursue 
eligible projects and for funds for the Regional Economic Development Revolving Loan 
Program Fund and the economic recovery loan program administered by the Finance 
Authority of Maine. 
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