An Act To Amend the Laws Governing the Issuance of Bonds and To Effectuate the Issuance of Bonds To Support Maine's Natural Resource-based Economy
Maine Legislature, Session 127, LD 1378
Committee: State and Local Government
Sponsors: KATZ, MARTIN, COLLINS, GERZOFSKY, LANGLEY, SAVIELLO, WHITTEMORE, BLACK, MAKER, MAREAN
Amends: 2 MRSA §11, 5 MRSA §145, 5 MRSA §145-B

Legislative Document 
No. 1378 
S.P. 508 
In Senate, April 29, 2015 
An Act To Amend the Laws Governing the Issuance of Bonds and 
To Effectuate the Issuance of Bonds To Support Maine's Natural 
Resource-based Economy 
Reference to the Committee on State and Local Government suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator KATZ of Kennebec. 
Cosponsored by Representative MARTIN of Eagle Lake and 
Senators: COLLINS of York, GERZOFSKY of Cumberland, LANGLEY of Hancock, 
SAVIELLO of Franklin, WHITTEMORE of Somerset, Representatives: BLACK of Wilton, 
MAKER of Calais, MAREAN of Hollis. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  2 MRSA §11 is enacted to read: 
§11.  General obligation bonds 
The Governor shall authorize the issuance of a general obligation bond that has been 
ratified by the legal voters of the State unless: 
1.  Debt service greater.  The Treasurer of State determines that the debt service on 
the bond would be greater than the amount budgeted; 
2.  Adverse impact on credit rating.  The Treasurer of State determines that the 
issuance of the bonds will adversely affect the credit rating of the State; 
3.  Advantageous interest rate.  The Treasurer of State determines that a delay in 
the issuance of the bonds will likely result in a more financially advantageous interest 
rate; 
4.  Project not proceeding.  The Governor receives notification that a project for 
which the bond was authorized is not going forward and the funding to be provided by 
the bond is not required; or 
5.  Alternative funding available.  The Governor receives notification that 
alternative funding sources are available to implement, within a comparable time frame, a 
project and the purposes for which the bond was authorized and ratified. 
Upon the occurrence of any of the circumstances set out in subsections 1 to 5, the 
Governor shall immediately notify the President of the Senate and the Speaker of the 
House of Representatives and the majority and minority leaders of the Senate and the 
House of Representatives of the specific bond delayed or otherwise not issued, the extent 
of the delay of the issuance of the bond and the effect of the delay or nonissuance on the 
project and purposes of the bond. 
Sec. 2.  5 MRSA §145, as amended by PL 1991, c. 780, Pt. Y, §15, is further 
amended to read: 
§145.  Registered bonds 
The Treasurer of State may issue registered bonds, transferable by assignment, in 
pieces of not less than $1,000, and of any multiple of 1,000, in exchange for, and in place 
of, any coupon bonds issued under the laws of this State, bearing the same rate of interest 
and maturing at the same time as the bonds that the Treasurer of State may receive 
therefor in exchange.  The place of payment prescribed therein must be the State 
Treasury.  Said bonds must bear the facsimile of the signature of the Governor and must 
be signed by the Treasurer of State or the Treasurer of State's deputy and attested by the 
Commissioner of Administrative and Financial Services, or such agent as the 
commissioner may designate. 
Sec. 3.  5 MRSA §145-B, sub-§2, as amended by PL 1991, c. 780, Pt. Y, §17, is 
further amended to read: 
2.  Signatures.  Registered bonds must bear the facsimile signatures of the Governor 
and signature of the Treasurer of State, or the Treasurer of State's deputy, and must be 
attested by the facsimile signature of the Commissioner of Administrative and Financial 
Services or such agents as the commissioner may designate.  Whenever signatures on 
registered bonds of other state officials are required, their facsimile signatures may be 
used. 
Sec. 4.  Issuance of bonds ratified by voters in accordance with Public 
Law 2009, chapter 414.  Notwithstanding any provision of law to the contrary, the 
Treasurer of State shall issue bonds in the name and on behalf of the State in an amount 
not exceeding $6,400,000 the proceeds of which to be expended by the Land for Maine's 
Future Board for the purposes described in Public Law 2009, chapter 414, Part E, section 
6, as amended by Public Law 2009, chapter 645, Part J, section 3, in accordance with the 
ratification of the legal voters of the State in the statewide election held in November 
2010. 
Sec. 5.  Issuance of bonds ratified by voters in accordance with Public 
Law 2011, chapter 696.  Notwithstanding any provision of law to the contrary, the 
Treasurer of State shall issue bonds in the name and on behalf of the State in an amount 
not exceeding $5,000,000 for the purposes described in Public Law 2011, chapter 696, 
section 6, in accordance with the ratification of the legal voters of the State in the 
statewide election held in November 2012. 
SUMMARY 
This bill makes the following changes to the laws governing the issuance of bonds: 
1.  It requires the Governor to issue a general obligation bond that has been ratified 
by the legal voters of the State unless one of 5 specific conditions exist, and it requires the 
Governor to provide certain information upon delaying or forgoing issuance of a bond; 
2.  It eliminates the requirement that registered bonds bear the facsimile signature of 
the Governor; and 
3.  It requires the Treasurer of State to issue bonds described in Public Law 2009, 
chapter 414, Part E, section 6, as amended by Public Law 2009, chapter 645, Part J, 
section 3, and Public Law 2011, chapter 696, section 6 and ratified by the voters of the 
State in statewide elections held in November 2010 and November 2012, respectively.