An Act To Authorize a General Fund Bond Issue To Support Research and Sustainable Development of Maine's Natural Resources
Maine Legislature, Session 125, LD 0842
Committee: Appropriations and Financial Affairs
Sponsors: HUNT, JACKSON, DOW, EVES, FLEMINGS, PRESCOTT

Legislative Document 
No. 842 
H.P. 639 
House of Representatives, March 3, 2011 
An Act To Authorize a General Fund Bond Issue To Support 
Research and Sustainable Development of Maine's Natural 
Resources 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative HUNT of Buxton. 
Cosponsored by Senator JACKSON of Aroostook and 
Representatives: DOW of Waldoboro, EVES of North Berwick, FLEMINGS of Bar Harbor, 
McCABE of Skowhegan, PRESCOTT of Topsham. 
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: 
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 $50,000,000 for the purposes described in section 5 of this Act.  
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. 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. 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 Office of the Treasurer of State to be used for the retirement of 
general obligation 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 bond proceeds.  The proceeds of the bonds must be 
expended as set out in this Act under the direction and supervision of the Department of 
Economic and Community Development, Maine Technology Institute. 
1.  Maine Technology Capacity Fund.   A portion of the proceeds of the sale of 
bonds must be deposited in the existing Maine Technology Capacity Fund, established in 
the Maine Revised Statutes, Title 5, section 15303-A, and used to support research, 
development and commercialization of innovative advanced technology based on 
sustainable use of natural resources, including, but not limited to, forest products, 
agricultural products, tidal energy and wind energy.  The funds must be competitively 
awarded for equipment and other capital expenditures.  This fund may support only 
projects that: 
A.  Are consistent with the objectives of the State's science and technology action 
plan, established pursuant to the Maine Revised Statutes, Title 10, chapter 107-D, and 
fall within one of the State's targeted technology sectors; 
B.  Strengthen cluster development among companies and supporting organizations 
within the relevant technology sector; 
C.  Represent a collaborative effort between public, private and nonprofit entities; 
D.  Leverage private sector investments, other state funding, federal research funding 
or other matching funds; and 
E.  Demonstrate sustainability of benefits to the economy, community and 
environment. 
2.  Sustainable local economy fund.  A portion of the proceeds of the sale of bonds 
must be deposited in a sustainable local economy fund to be established within the 
Department of Economic and Community Development and administered by the Maine 
Technology Institute to support economic development projects that benefit local food 
production or local recycling.  The funds must be competitively awarded for equipment 
and other capital expenditures for projects in 2 areas: 
A.  Infrastructure that supports the processing, storage and local distribution of food 
products grown or harvested in the State; and 
B.  Infrastructure that supports the collection, storage and local distribution for reuse 
or recycling of consumer products. 
In making awards from the sustainable local economy fund, the Maine Technology 
Institute shall consider any information that assesses needs, establishes priorities or 
makes recommendations as provided by the Department of Agriculture, Food and Rural 
Resources and the Department of Environmental Protection or other relevant state 
agency. 
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. 
Provides funds to support natural resource-based research, development and 
commercialization to be administered through the Maine Technology Capacity Fund 
by the Maine Technology Institute. 
Provides funds for infrastructure to support processing, storage and local distribution 
of food products grown or harvested in Maine or for the collection, storage and local 
distribution for reuse or recycling of consumer products, through a sustainable local 
economy fund administered by the Maine Technology Institute. 
ECONOMIC AND COMMUNITY 
DEVELOPMENT, DEPARTMENT OF 
Maine Technology Institute 
Total 
$45,000,000
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 the Office of the Treasurer of State to be used for the retirement of general 
obligation bonds. 
Sec. 9.  Bonds authorized but not issued.  Any bonds authorized but not issued 
within 5 years of ratification of this Act 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. 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 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 Act by voting on the following question: 
"Do you favor a $50,000,000 bond issue to provide funds to support 
natural resource-based research, development and commercialization and 
for infrastructure to support processing, storage and local distribution of 
food products grown or harvested in Maine or for the collection, storage 
and local distribution for reuse or recycling of consumer products?" 
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 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 
The major portion of the funds provided by this bond issue, in the amount 
$45,000,000, are to fund research, development and commercialization of innovative 
Total 
$5,000,000
technology that relies on the sustainable use of Maine's natural resources such as forest 
and agricultural products and tidal and wind energy.  The remaining $5,000,000 support 
sustainable local economic development projects that enhance the economic benefits of 
increased reliance on local foods and recycling of consumer products.  The funds must be 
administered by the Maine Technology Institute and competitively awarded.