An Act To Authorize a General Fund Bond Issue To Purchase and Upgrade Trackage ofthe Montreal, Maine and Atlantic Railway
Maine Legislature, Session 124, LD 1748
Committee: Appropriations and Financial Affairs
Sponsors: THERIAULT, JACKSON, AYOTTE, BEAUDOIN, CLARK, CLEARY, PILL, EATON, EDGECOMB, HARLOW, HAYES, MARTIN, MAZUREK, PENDLETON, PEOPLES, SCHATZ, SHAW, SUTHERLAND, TREAT, DAMON, SHERMAN

MAINE STATE LEGISLATURE 
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. 124th MAINE LEGISLATURE 
SECOND REG.ULAR' SESSION~2010 
Legislative Document 
No. 1748 
H.P.1242 . 
House of Representatives, January 19, 2010 
An Act To Authorize a General Fund Bond Issue To Purchase and 
Upgrade Trackage ofthe Montreal, Maine and Atlantic Railway 
Reference to the Committee on Appropriations and Financial Affairs suggested -and ordered 
printed. 
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Presented by Representative THERIAULT of Madawaska. 
Cosponsored by Senator JACKSON of Aroostook and 
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111· 7llilC~{ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: AYOTTE of Caswell, BEAUDOIN of Biddeford; BERRY of Bowdoinham, 
BRIGGS ofMexico,BROWNEofVassalbord, CLARK of Millinocket, CLEARY of Houlton, 
CRA Y of Palmyra, PILL of Cape Elizabeth, EATON of Sullivan, EDGECOMB of Caribou, . 
GIFFORD of Lincoln, HARLOW of Portland, HAYES of Buckfield, MARTIN of Eagle Lake, 
MAZUREK of Rockland, PENDLETON of Scarborough, PEOPLES of Westbrook,' ROSEN of 
Bucksport, SCHATZ of Blue Hill, SHAW of Standish, SUTHERLAND of Chapman, TREAT 
of Hallowell, Senators: DAMON of Hancock, SHERMAN of Aroostook. 
Pri!llcd on recycled PilPCf 
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 
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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 of the full faith and cre~it of the State. The bonds may riot run for 
lOa period longer than 10 years from the date of the original iss'ue 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. 
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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 whorn sold, the amount received for the bond, the date of sale and 
the date when payable. 
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23. 
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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 Qf the State. The proceeds of the sale of the 
bonds, which must be held by the Treasurer of State arid 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 cornpletion 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 De 
expended as set out in this Act iJnder the direction and supervision of the Department of 
Transportation .. 
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 
TRANSPORTATION 
Provides funds to purchase and upgrade 
milesoftrack'ofthe Montreal, Maine 
and Atlantic Railway to maintain service to 
towns in the northern part of the State and 
to prevent closure of this trackage. 
Page.\ - t24LR2076(Ot)-t 
$20,000,000 
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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. Appropriatjon 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. 
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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 ratific~tion of this 
Act, are deauthorized and may not be issued, except that the Legislature may, within 2 
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·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 
~o 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 phintations 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 purchase and upgrade 241 
miles of track of the Montreal, Maine and Atlantic Railway to maintain 
service to towns in the northern part of the State and to prevent closure of 
this trackage?" 
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 plac.ed 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 b~comes 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 Act necessary to carry out the purposes of this 
referendum .. 
SUMMARY 
The funds provided by this bond issue, in the amount of $20,000,000, will be used to 
purchase and upgrade 241 miles of track of the Montreal, Maine and Atlantic Railway to 
maintain service to towns in the northern part of the State and to prevent closure of this 
trackage.