An Act To Facilitate Recovery Zone Facility Bonds
Maine Legislature, Session 124, LD 1530
Committee: Business, Research and Economic Development
Sponsors: MITCHELL, PINGREE, BARTLETT, RECTOR, SCHNEIDER, SIROIS, SMITH
Amends: Title 26, Section 103, 10 MRSA §963-A, 10 MRSA §1061-B, 10 MRSA §1074-A, 10 MRSA §1074-B, 30-A MRSA §934

MAINE STATE LEGISLATURE 
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124th MAINE LEGISLATU 
Legislative Document 
No. 1530 
S.P.590 
In Senate, December 17, 2009 
An Act To Facilitate Recovery Zone Facility Bonds 
(EMERGENCY) 
Submitted by the Finance Authority of Maine pursuant to Joint Rule 204. 
Received by the Secretary of the Senate on December 17, 2009. Referred to the Committee 
on Business, Research and Economic Development pursuant to Joint Rule 308.2 and ordered 
printed. 
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Presented by President MITCHELL of Kennebec. 
Cosponsored by Speaker PINGREE of North Haven and 
9r8(J~ 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: BARTLETT of Cumberland, RECTOR of Knox, SCHNEIDER of Penobscot, 
Representatives: PlOTT! of Unity, SIROIS of Turner, SMITH of Monmouth. 
Printed on recycled pnper 
Emergency preamble. Whereas; acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the United States Congress has enacted the American Recovery and 
Reinvestment Act of 2009; and 
Whereas, the American Recovery and Reinvestment Act of 2009 provides for the 
issuance by counties of recovery zone facility bonds, the interest on which will be exempt 
from federal income tax pursuant to the United States Internal Revenue Code; and 
Whereas, the purpose of the American Recovery and Reinvestment Act of 2009, 
including its provisions regarding recovery zone facility bonds, is to provide immediate 
benefit to the economies of the states; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the fol1owing legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 10 MRS A §963-A, sUlb-§lO, as amended by PL 2009, c. 372, Pt. D, §§ 1 
to 3, is further amended to read: 
10. Eligible project. "Eligible project" means any of the following: 
A. Any eligible enterprise; 
D. Any vessel registered under the law ofthe United States or a state; 
E. Any energy conservation project; 
F. Any energy distribution system project; 
G. Any energy generating system project; 
H. Any pollution-control project; 
I. Any water supply system project; 
1. Any underground oil storage facility replacement project, including equipment 
installed to meet requirements for gasoline service station vapor control and 
petroleum liquids transfer vapor recovery; 
K. Any overboard discharge replacement project; 
L. Any hazardous waste or solid waste recycling or reduction project; 
M. 
Any aboveground oil replacement or upgrade project, including equipment 
installed to meet requirements for gasoline service station vapor control and 
petroleum liquids transfer vapor recovery; 
N. Any electric rate stabilization project; 
O. Any major business expansion project; 
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P. Any workers' compensation residual market mechanism project; 
Q. Any clean fuel vehicle project; 
R. Any paper industry job retention project; 
S. Any transmission facilities project; and 
T. An Efficiency Maine project. 
In addition to and without limiting this subsection, "eligible "Eligible project" also means 
includes any project, the financing of which through the issuance of revenue obligation 
securities would result in the interest on the revenue obligation securities qualifying, as of 
the date of issuance, as tax-exempt under tfl.e 26 United States Code; Title 26, Section 
103, as amended. 
"Eligible project" includes any "recovery zone property," as defined under 26 United 
States Code; Section 1400U-3,as amended, the financing of which through the issuance 
of revenue obligation securities would result in the interest on the revenue obligation 
securities qualifying, as of the date of issuance, as tax-exempt under 26 United States 
Code, Section 103, as amended. 
Sec. 2. 10 MRS A §963-A, sub-§39-A is enacted to read: 
39-A. Municipal officers. "Municipal officers" means municipal officers as defined 
in Title 30-A, section 2001, subsection 10. "Municipal officers" also means the county 
commissioners of any county but solely for the purpose of authorizing and facilitating the 
issuance of recovery zone facility bonds. 
Sec. 3. 10 MRSA §963-A, sub-§40-A is enacted to read: 
-40-A. - Municipality. "Municipality"ineans any municipality as defined in Title 
30-A, section 2001, subsection 8. "Municipality" also means any county but solely for 
the purpose of issuing recovery zone facility bonds. 
Sec. 4. 10 MRS A §963-A, sub-§44-A is enacted to read: 
44-A. Recovery zone facility bond. "Recovery zone facility bond" has the same 
meaning as in 26 United States Code, Section 1400U-3, as amended. 
Sec. 5. 10 MRS A §963-A, sub-§49, as enacted by PL 1985, c. 344, §7, IS 
amended to read: 
49. 
Revenue obligation security. 
"Revenue obligation security" or "security" 
means a note, bond, interim certificate, debenture or other evidence of indebtedness1 
including any recovery zone facility bond, payment of which is secured by a pledge of 
revenues, as provided in section -1045-A or 1065, or by assignment or pledge of other 
eligible collateral. 
Sec. 6. 10 MRSA §1061-B is enacted to read: 
§1061-B. Designation of issuer of recovery zone facility bonds 
To the extent permitted by federal law, the county commissioners of any county may· 
authorize the authority to issue recovery zone facility bonds on behalf of that county 
pursuant to subchapter 3 or a municipality to issue recovery zone facility bonds on behalf 
of that county pursuant to this subchapter. 
Sec. 7. 10 MRSA §1074-A is enacted to read: 
§1074-A. Recovery zone facility bonds 
1. Recovery zones. To the extent permitted by federal law, the Governor may 
establish by executive order a procedure for the designation by counties, with the 
approval of the Governor, of recovery zones as defined under 26 United States Code, 
Section 1400U-1, as amended. The authority shall provide the Governor with such 
assistance as may be required to carry out this section including obtaining information 
regarding poverty, unemployment, rate of home foreclosures and other information 
concerning general distress for the purpose of providing a comprehensive basis for 
designation of recovery zones. 
2. Reallocation. To the extent permitted by federal law, the Governor may establish 
by executive order a procedure for the reallocation of any allocation to counties of a 
portion of the national recovery zone facility bond limitation established pursuant to 26 
United States Code, Section 1400U-1, as amended, and for the reallocation of any portion 
of a county's allocation of the national recovery zone facility bond limitation waived by 
that county, including .designation of the authority as the issuer of recovery zone facility 
bonds pursuant to any reallocation. For purposes of this subsection, a county must be 
considered to have waived any allocation to it of a portion of the national recovery zone 
facility bond limitation to the extent that revenue obligation securities for that allocation 
have not been issued by that county prior to April 1, 2010. 
Sec. 8. 10 MRSA §1074-B is enacted to read: 
§1074-B. Allocation of certain national bond limitations 
To the extent permitted by federal law, the Governor may establish by executive 
order a procedure for the reallocation of any allocation of a portion of a national bond 
limitation to the State or to any issuer or governmental entity within the State pursuant to 
United States Code, Sections 54D, 54E, 54F and 1400U-l and for the reallocation of 
any portion of a national bond limitation that is not used within the applicable time period 
specified in federal law or that has been waived by an issuer or governmental entity 
within the State, except that allocation of the national recovery zone facility bond 
limitation established pursuant to 26 United States Code, Section 1400U-1, as amended, 
must be carried out pursuant to section 1074-A. 
Sec. 9. 30-A MRSA §934, as amended by PL 1999, c. 717, § 1, is further amended 
to read: 
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§934. Loans 
The county commissioners may obtain loans of money for the use of their county and 
cause notes, obligations or bonds, with coupons for lawful interest, to be issued for 
payment of the loans. These loans may not exceed $10,000, except in Franklin County 
and Aroostook County as provided in sections 935 and 935 .. ,A and except to the extent 
authorized pursuant to Title 10, chapter 110, without first obtaining the consent of the 
county, substantially as provided in section 122 or by countywide referendum pursuant to 
section 938. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill facilitates the issuance of recovery zone facility bonds authorized by the 
federal American Recovery and Reinvestment Act of2009.