An Act To Authorize a General Fund Bond Issue To Revitalize Maine's Downtowns through Innovative Business Development and the Creative Economy
Maine Legislature, Session 125, LD 1187
Committee: Appropriations and Financial Affairs
Sponsors: SULLIVAN, CASAVANT, CRAVEN, DIAMOND, HILL, KATZ, SCHNEIDER, MARTIN, ROTUNDO, WEBSTER
Amends: 5 MRSA §12004-F, 5 MRSA §13075-A

Legislative Document 
No. 1187 
S.P. 362 
In Senate, March 22, 2011 
An Act To Authorize a General Fund Bond Issue To Revitalize 
Maine's Downtowns through Innovative Business Development and 
the Creative Economy 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
JOSEPH G. CARLETON, JR. 
Secretary of the Senate 
Presented by Senator SULLIVAN of York. 
Cosponsored by Representative CASAVANT of Biddeford and 
Senators: CRAVEN of Androscoggin, DIAMOND of Cumberland, HILL of York, KATZ of 
Kennebec, SCHNEIDER of Penobscot, Representatives: MARTIN of Eagle Lake, ROTUNDO 
of Lewiston, WEBSTER of Freeport. 
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 
Act, 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-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 $5,000,000 for the purposes described in section 5 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. 
Sec. A-2.  Records of bonds issued; Treasurer of State. The Treasurer of 
State shall ensure that an account of each bond is kept 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 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 Part.  Any unencumbered balances remaining at the completion of the project 
in this Part lapse to the Office of the Treasurer of State to be used for the retirement of 
general obligation 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. 
Sec. A-5.  Disbursement of bond proceeds; 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 under the direction and supervision of 
the agencies and entities set forth in this section. 
Provides funds for seed money to capitalize the Downtown Revitalization Fund 
established in the Maine Revised Statutes, Title 5, section 13075-A, a revolving loan 
and grant fund to encourage business development in downtown areas, targeting 
innovative businesses, light manufacturing, trades and small businesses and space for 
artists and artisans. 
ECONOMIC AND COMMUNITY 
DEVELOPMENT, DEPARTMENT OF 
Office of Community Development 
Sec. A-6.  Contingent upon ratification of bond issue.  Sections 1 to 5 do not 
become effective unless the people of the State ratify the issuance of the bonds as set 
forth in this Part. 
Sec. A-7.  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 the Office of the Treasurer of State to be used for the retirement of general 
obligation bonds. 
Sec. A-8.  Bonds authorized but not issued.  Any bonds authorized but not 
issued within 5 years of ratification of this Part are deauthorized 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 any remaining unissued bonds for an additional amount of 
time not to exceed 5 years. 
Sec. A-9.  Referendum for ratification; submission at election; form of 
question; effective date.  This Part 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 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 $5,000,000 bond issue to provide funds for seed money 
to capitalize a revolving loan and grant fund to encourage business 
development in downtown areas, targeting innovative businesses, light 
manufacturing, trades and small businesses and space for artists and 
artisans?" 
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. 
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 
referendum. 
PART B 
Sec. B-1.  5 MRSA §12004-F, sub-§19 is enacted to read: 
Total 
$5,000,000
19.   
Sec. B-2.  5 MRSA §13075-A is enacted to read: 
§13075-A.  Downtown Revitalization Fund 
1.  Fund established.  The Downtown Revitalization Fund, referred to in this section 
as "the fund," is established. 
2.  Board.  The Downtown Revitalization Fund Board, established in section 
12004-F, subsection 19 and referred to in this section as "the board," shall oversee the 
fund.  The term of a board member is 2 years.  The board is composed of 9 members as 
follows: 
A.  Two members of the Senate, appointed by the President of the Senate; 
B.  Two members of the House of Representatives, appointed by the Speaker of the 
House of Representatives; 
C.  One member appointed by the Governor; 
D.  One member representing postsecondary educational institutions, appointed by 
the Governor; 
E.  One member who is a representative of the Finance Authority of Maine; 
F.  One member who is a representative of a small business development center; and 
G.  One member who is a representative of the Maine State Chamber of Commerce 
or its successor organization. 
The board may elect a chair from its membership. 
3.  Sources of funds.  The fund may accept funds from appropriations, allocations, 
bond proceeds, donations and principal and interest payments derived from loans made 
from the fund. 
4.  Purpose.  The fund shall disburse loans and grants to encourage business 
development in downtown areas, targeting innovative businesses, light manufacturing, 
trades and small businesses and space for artists and artisans.  Administrative expenses of 
the fund must be paid from the proceeds of the fund. 
5.  Administration.  The board shall administer the fund with staff support from the 
Office of Community Development.  The board shall adopt criteria for the administration 
of loans and grants from the fund to carry out the purpose of the fund under subsection 4, 
including the application process, recipient qualifications and terms and conditions of 
loans and grants disbursed by the fund.  A loan from the fund must be matched by the 
recipient of the loan in the amount of $1 from the recipient for every $2 loaned from the 
fund to the recipient. 
Downtown Revitalization Fund 
Board 
Expenses Only 
MRSA §13075-A 
6.  Nonlapsing.  Any funds remaining in the fund at the end of a fiscal year do not 
lapse but carry forward to the next fiscal year. 
Sec. B-3.  Contingent effective date.  This Part takes effect only if the General 
Fund bond issue proposed in Part A is approved by the voters of this State. 
SUMMARY 
The funds provided by this bond issue, in the amount of $5,000,000, will be used as 
seed money to capitalize the Downtown Revitalization Fund, a revolving loan and grant 
fund to encourage business development in downtown areas, targeting innovative 
businesses, light manufacturing, trades and small businesses and space for artists and 
artisans. The Downtown Revitalization Fund is administered by a board consisting of 
public and private members and issues loans that must be matched by $1 from the 
recipient for every $2 received from the fund and issues grants.