An Act To Strengthen Maine's Financial Future.in Perpetuity
Maine Legislature, Session 124, LD 1387
Committee: Appropriations and Financial Affairs
Sponsors: PERRY
Amends: 5 MRSA §15

FIRST REGULAR SESSIOr-~-2009 
Legislative Document 
No. 1387 
S.P. 
In Senate, April 2, 2009 
, An Act To Strengthen Maine's Financial Future.in Perpetuity 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
Presented by Senator PERRY of Peno bscot. 
Print~d un r~L:ydl!d p'lpef 
9r8(J~ 
JOyJ. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
SCI;. 1. 5 MRSA §15~2 is enacted to read: 
§1522. Irrevocable Budget Trust Fund 
1. . Irrevocable Budget Trust Fund established; purpose. The Irrevocable Budget 
Trust Fund, referred to in this section as "the trust fund," is established to create a long-
term revenue stream from investments in order to supplement future General Fund 
revenues .. Funds appropriated to the trust fund must be held in trust and must be invested 
for the exclusive purpose of providing stable revenues for the General Fund and may not. 
9. 
be encumbered for, or diverted to, other purposes. Funds appropriated for the trust fund 
may not be diverted. or deappropriated by any subsequent action. 
II 
2. Trustees. The Treasurer of State and th~ State Controller shall serve as trustees of 
the trust fund. 
3. Duties of the trustees. The trustees of the trust fund shall jointly make the final 
decision on all matters pertaining to administration of the trust fund. 
4. 
Investment of funds. The trustees of the trust fund are responsible for the 
investment and reinvestment of the funds appropriated to the trust fund in accordance 
with the Maine Uniform Trust Code and the Maine Uniform Prudent. Investor Act under 
Title 18-B, subject to the guidelines set for .the Retiree Health Insurance Post-
employment Benefits Investment Trust Fund in section 17435. A portion of the trust 
fund must be invested in the Treasurer of State's cash pool with other trust funds invested 
through the Maine Public Employees Retirement System. 
. 
5. Annual transfers of funds. Notwithstanding any law to the contrary and before 
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any transfers pursuant to chapter 142 or any other provision of law, annually beginning 
with the fiscal year starting July 1, 20 I 0 the Legislature shall appropriate 5% of General 
Fund revenues to fund the trust fund. Annually beginning with the fiscal year starting 
July 1, 2011 the trustees shall transfer to the State's General Fund 5% of the fund earnings 
from the previous fiscal year. Earnings transferred to the General Fund from the trust 
fund are not considered General Fund revenue for the purposes of this subsection. 
6. Report to Legislature. The trustees of the trust fund shall make a written report 
to the joint standing committee of the Legislature having jurisdiction over appropriations 
and financial affairs on or before March I st of each year including a discussion of any. 
areas of policy or administration ofthe trust fund that, in the opinion of the trustees of the 
trust fund, should be brought to the attention of the joint standing committee and a review 
of the status of the trust fund. 
SUMMARY 
The purpose of this bill is to provide a stable source of revenue for the State. 
This bill establishes the Irrevocable Budget Trust Fund and requires the Legis,lature 
to appropriate 5% of General Fund revenues to the Irrevocable Budget Trust Fund, 
Page I - 124LR134S(Ol)-1 
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beginning with fiscal year 2010-11. The Treasurer of the State and the State Controller, 
as trustees of the fund, are required to invest the money in the fund. Beginning with 
fisdll year 2011-12, 5% of the earnings in the fund are transferred back to the General 
Fund.