An Act To Establish the Maine Farmland Fund and Authorize a General Fund Bond Issue To Support Maine's Traditional Industri~s
Maine Legislature, Session 124, LD 0894
Committee: Appropriations and Financial Affairs
Sponsors: PINGREE, RA YE, EATON, KENT, O'BRIEN, PERCY, SMITH, STUCKEY, NUTTING, RECTOR
Amends: 7 MRSA §317-A, 7 MRSA §320

MAINE STATE LEGISLATURE 
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124th MAINE LEGISLATU 
FIRST REGULAR SESSIO~~-2009 
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Legislative Document 
No. 894 
H.P.612 
House of Representatives, March 5, 2009 
An Act To Establish the Maine Farmland Fund and Authorize a 
General Fund Bond Issue To Support Maine's Traditional 
Industri~s 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
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Presented by Speaker PINGREE of North Haven. 
Cosponsored by Senator RA YE of Washington and, 
~lY/d~ frl.11!I1£~{ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: EATON of Sullivan, KENT of Woolwich, O'BRIEN of Lincolnville, PERCY 
of Phippsburg, SMITH of Monmouth, STUCKEY of Portland, Sen.ators: DAMON of Hancock, 
NUTTING of Androscoggin, RECTOR of Knox. 
Printeu Oil recycled pap!:l; 
Preamble. Two thirds of both Houses of the Legislature deeming it necessary it} 
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, 
Belt enacted by the People of the State of Maine as follows: 
PART A 
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Sec. A-I. 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 $16,000,000 for the purposes described in section 6 of this Part. 
The bonds are a pledge of the full faith and credit of the 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. 
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Sec. A-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. A-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 proce'eds 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 Part. Any unencwnbered balances remaining at the comp!etion of the project 
in this Part lapse to the debt service account established for the retirement of these bonds. 
Sec. A-4 .. Interest and debt retirement. The Treasurer of State shall pay 
interest due or accruing on any bonds issued under this Part and all sums coming due for 
payment of bonds at maturity.. 
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Sec. A-S. Disbursement of bond proceeds. The proceeds of the bonds must be 
expended as set out in this Part under the direction and supervision of the Maine Farms 
for the Future Program within the Department of Agriculture, Food and Rural Resources, 
Land for Maine's Future Board and the Finance Authority of Maine. 
Sec. A-6. Allocations from General Fund bond issue. The proceeds of the 
sale of the bonds authorized· under this Part must be expended as designated in the 
following schedule. 
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FARMLAND FUND 
Provides $5,000,000 in funds to preserve 
, farmland by providing funds directly to 
land trusts using the federal farmland 
preservation standards as benchrriarks and 
$500,000 for appraisal costs of donated 
easements for farmland. 
LAND FOR MAINE'S FUTURE FUND 
Provides $5,000,000 in funds to preserve 
working waterfronts and $500,000 for 
appraisal costs of donated easements for 
working waterfronts. 
FINANCE AUTHORITY OF MAINE 
Provides $3,000,000 in grants and 
$2,00Q,000 in loans for food processing for 
fishing and agriculture industries, all within 
the State: 
$5,500,000 
$5,500,000 
$5,000,000 
Sec. A-7. Contingent upon ratification of bond issue. Sections i to 6 do not· 
become effective unless the people of the State ratify the issuance of the bonds as set 
forth in this Part. 
Sec. A-S. 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 s.ervice. 
Sec. A-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 Part, are deauthorized and may not be issued, except that the LegislatUre may, within 
years after the ~xpiration 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. A-IO. Referendum for ratification; submission at election; form of 
question; effective date. This Part must be submitted to the legal voters of the State at 
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a statewide election held in the month of November following passage of this Part. The 
municipal officers of this State shali 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 Part by voting on the following question: 
"Do you favor a $16,000,000 bond issue that would provide funds for 
preservation of working waterfronts and farmland by providing funds 
directly to land trusts using the federal fannland preservation standards 
as benchmarks, would provide funds· for appraisal costs of donated 
easements for working waterfronts and fannland and would provide 
funds for food processing for fishing and agricultural industries?" 
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." 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 Part, the 
Governor shall proclaim the result without delay and this Part 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. Part necessary to carry out the purposes of this 
refer~ndum. 
PART B' 
Sec. B-1. 7 MRS A §317, as amended by PL 2007, c. '660, §1, is further amended 
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to read: 
§317. Maine Farms for the Future Program 
The Maine Farms for the Future Program, referred to in this chapter as the "program," 
is created. The program is administered by the department, either directly or by contract 
with a suitable organization.. The program provides a selected farm with assistance in 
developing a detailed business plan that involves changes in the farm's operation to 
increase the vitality of the farm and investment· money to help implement the plan. 
Participants in the program are eligible to apply for reduced-interest loans from the 
Agricultural Marketing Loan Fund established under Title 10, section 1023-J and 
administered under section 435. The department shall organize a review panel, referred 
to in this chapter as the "panel," to evaluate and approve applications for participation in 
the program and for investment support .. The department shall administer application and 
distribution of the Maine Fannland Fund established under section 3·17-A. 
Sec. B-2. 7 MRSA §317-A is enacted to read: 
§317-A. Maine Farmland Fund 
The Maine Fannland Fund, referred to in this chapter as "the fund," is created to 
provide dedicated and nonlapsing funds administered by the department to preserve 
farmland by providing funds directly to land trusts using the federal fannland 
preservation standards as benchmarks and to pay for appraisal costs of donated easements 
for farmland. The department shall establish the administration of the fund by rule. 
Rules adopted pursuant to this section are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
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Sec. B-3. 7 MRSA §320, sub-§l, 'TIE, as amended by PL 2007, c. 660, §5, is 
further amended to read: 
E.Administering the disbursement of investment support; aRd 
Sec. B-4. 7 MRS A §320, sub-§l, ~, as amended by PL 2007, c. 660, §5, is 
further amended to read: 
. F. Executing and enforcing farmland protection agreements.,.; and 
Sec. B-S. 7 MRSA §320, sub-§l, tIjfH is enacted to read: 
H. Promoting, organizing, developing criteria for and administering the disbursement 
of funds from the fund pursuant to section 317 -A. 
PARTe 
Sec. C-l. Rulemaking. The Finance Authority of Maine shall establish rules to 
administer funds for food processing for the fishing and agricultural industries in this 
State for both grants and loans. 
Rules adopted pursuant to this section are routine . 
tec~cal rules as defined in the Maine Revised Statutes, Title 5, chapter 375, subchapter 
.2-A. 
SUMMARY 
The fund(i provided by this bond issue, in the amount of $16,000,000, will be used to 
provide funds for preservation of working waterfronts and farmland by providing funds 
directly to land trusts using the federal farinIand preservation standards as benchmarks, . 
providing funds for appraisal costs of donated easements for working waterfronts and 
farmland and providing funds for food processing for fishing and agricultural industries. 
This bill also establishes the Maine.Farmland Fund .. 
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