An Act To Authorize a Generallfund Bond Issue for School Construction and Renovation Projects That Demonstrate Cost Savings.
Maine Legislature, Session 124, LD 0810
Committee: Appropriations and Financial Affairs
Sponsors: MITCHELL, CROCKETT, BLODGETT, CAIN, CASAV ANT, RANKIN, SUTHERLAND, WAGNER

MAINE STATE LEGISLATURE 
The following document is provided by the 
LAW AND LEGISLATIVE DIGITAL LIBRARY 
at the Maine State Law and Legislative Reference Library 
http://legislature.maine.gov/lawlib 
Reproduced from scanned originals with text recognition applied 
(searchable text may contain some errors and/or omissions) 
() 
'~~ 
(~ 
STATE LAllV UBFfARY 
AUGUSTJl" fVYAfN€. 
124th. MAINE LEGISLATURE 
Legislative Document 
No. 810 
S.P.318 
In Senate, March 3,2009 
An Act To Authorize a Generallfund Bond Issue for School 
Construction and Renovation Projects That Demonstrate Cost 
Savings. 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
9t8(J~ 
JOY J. O'BRIEN 
Secretary of the Senate 
Presented by President MITCHELL of Kennebec. 
Cosponsored by Representative CROCKETT of Augusta and 
Representatives: BLODGETT of Augu~ta, CAIN of Orono, CASAV ANT of Biddeford, 
RANKIN of Hiram, SUTHERLAND of Chapman, WAGNER of Lewiston. 
Printed on recycled paper 
Preamble. Two thirds of both Houses of the Legislature deeming it necessary in 
accordance. with the Constitution of Maine, AIticle 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 Stafe 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 to 
be matched with 25% of the cost of each project in contributions, from' municipalities. 
The bonds are a pledge of the full faith and credit of the State. The bonds may not run for 
a peri~d longer than 10 years from the date of the original issue of the bonds. At the 
discretion of the Treasur,er 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 bom~ pn-oceeds. The proceeds of the bonds must be 
expended as set out in this Act under the direction and supervision of the Department of 
Education. 
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 EDUCATION 
,35 
School Construction and Renovation 
Fund 
) 
) 
) 
n 
. 17 
(.~) 
Provides funds for school districts for the 
design and planning of construction and 
renovation projects and for the construction' 
and renovation projects. The projects must 
best demonstrate significant cost savings 
through innovative partnerships, 
consolidation efforts and efficiency 
improvements. The projects must also 
improve the energy efficiency of existing 
schools or additions to existing schools. 
$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 date of the sale of the 
bonds lapse to G~neral 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, aredeauthorized 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 imy 
remaining unissued bonds or bond anticip~tion 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. The' 
municipal officers of this State shall 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 for school construction and 
renovation projects that demonstrate significant cost savings through 
innovative 
partnerships, 
consolidation 
efforts' and 
effichmcy 
improvements, with each project receiving 25% local match funding 
from the municipality the project is located in?" 
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 UNo." The ballots must be receiv.ed, 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 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 
.7 
' The funds provided by this bond issue, in the amount of $20,000,000, will be used to 
provide funds for the design and planning of proj ects and' their construction' and 
renovation. 
The projects must. best demonstrate significant cO,st savings through 
innovative partnerships, consolidation efforts and efficiency improvements in school 
, 11 
districts, leveraging 25% in required matching funds. 
) 
) 
)