An Act To Invest in Maine Companies
Maine Legislature, Session 127, LD 1132
Committee: Labor, Commerce, Research and Economic Development
Sponsors: GERZOFSKY, DION, ALFOND, BREEN, CUSHING, DIAMOND, HASKELL, HILL, MASON, PATRICK, VOLK, BRYANT, DAUGHTRY, GOODE, HERBIG, MARTIN, SHORT
Amends: 5 MRSA §12004-F, 5 MRSA §13201

Legislative Document 
No. 1132 
S.P. 401 
In Senate, March 31, 2015 
An Act To Invest in Maine Companies 
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator GERZOFSKY of Cumberland. 
Cosponsored by Representative DION of Portland and 
Senators: ALFOND of Cumberland, BREEN of Cumberland, CUSHING of Penobscot, 
DIAMOND of Cumberland, HASKELL of Cumberland, HILL of York, MASON of 
Androscoggin, PATRICK of Oxford, VOLK of Cumberland, Representatives: BRYANT of 
Windham, DAUGHTRY of Brunswick, GOODE of Bangor, HERBIG of Belfast, MARTIN of 
Eagle Lake, McCABE of Skowhegan, SHORT of Pittsfield. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §12004-F, sub-§19 is enacted to read: 
19.   
Sec. 2.  5 MRSA c. 393 is enacted to read: 
CHAPTER 393 
BUSINESS DEVELOPMENT 
§13201.  Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1.  Authority.  "Authority" means the Invest in Maine Capital Authority established 
pursuant to section 13202. 
2.  Fund.  "Fund" means the Invest in Maine Capital Investment Fund established 
pursuant to section 13203. 
3.  Major business development project.  "Major business development project" 
means a project that involves the construction, development, rehabilitation, 
modernization or acquisition of a building, structure, system, machinery, equipment or 
facility that has a projected cost of at least $50,000,000 or is projected to result in the 
creation or retention of at least 250 full-time employment positions that pay at least 125% 
of the annual average weekly wage under Title 26, section 1043, subsection 1-A. 
§13202.  Invest in Maine Capital Authority 
1.  Invest in Maine Capital Authority; established.  The Invest in Maine Capital 
Authority, as established by section 12004-F, subsection 19, is a body both corporate and 
politic and a public instrumentality of the State established for the purpose of providing 
financial support for major business development projects. 
2.  Membership.  The authority consists of 7 members as follows: 
A.  Two members of the Finance Authority of Maine, appointed by the chair of the 
Finance Authority of Maine; 
B.  Two members of the Maine Rural Development Authority Board of Trustees, 
appointed by the chair of the Maine Rural Development Authority Board of Trustees; 
C.  Two members with financial or business backgrounds, appointed by the 
Governor; and 
Invest in Maine Capital 
Authority 
Expenses Only 
MRSA §13201 
D.  The Commissioner of Economic and Community Development or the 
commissioner's designee, who serves as ex officio. 
3.  Terms of office.  The term of office for a member of the authority appointed 
under subsection 2 is 4 years, and an appointed member may be removed at any time by 
the member's appointing authority.  A member may serve multiple terms.  A member 
appointed under subsection 2, paragraph A or B who ceases to be a member of the 
Finance Authority of Maine or the Maine Rural Development Authority Board of 
Trustees during that member's term as a member of the authority remains a member of 
the authority for the duration of the term for which that member was appointed.  A 
member continues to hold office until a successor is appointed and qualified, but the term 
of the successor is not altered from the original termination date of the holdover member's 
term. 
4.  Administration; meetings.  The membership of the authority shall elect one 
member to serve as chair, one member as vice-chair who shall also serve as secretary, one 
member as treasurer and such other officers as the membership may from time to time 
consider necessary.  All the powers of the authority may be exercised by the membership 
in a lawful meeting and a majority of the members is necessary for a quorum.  Regular 
meetings of the membership may be established by bylaw, and notice of the regular 
meeting does not need to be given to the members. 
5.  Bonding authorization.  The authority may provide by resolution for the issuance 
of bonds for the purpose of funding the fund, or any successor to the fund, or for the 
purpose of funding major business development projects.  The bonds of the authority do 
not constitute a debt of the State or of any agency or political subdivision of the State but 
are payable solely from the revenue of the authority, and neither the faith nor credit nor 
taxing power of the State or any political subdivision of the State is pledged to payment 
of the bonds.  Notwithstanding any other provision of law, any bonds issued pursuant to 
this chapter are fully negotiable.  If any member of the authority whose signature appears 
on the bond or coupons ceases to be a member of the authority before the delivery of 
those bonds, that signature is valid and sufficient for all purposes as if that member of the 
authority had remained a member of the authority until delivery. 
6.  Limitation of liability.  A member the authority or an employee of the authority 
may not be subject to any personal liability for having acted within the course and scope 
of that person's membership or employment to carry out any power or duty under this 
chapter. The authority shall indemnify any member of the authority and any employee of 
the authority against expenses actually and necessarily incurred by that person in 
connection with the defense of any action or proceeding in which that person is made a 
party by reason of past or present association with the authority. 
7.  Conflict of interest.  A member or employee of the authority may not acquire or 
hold a direct or an indirect personal financial interest in an authority activity or a contract 
or proposed contract in connection with an authority activity. When an acquisition of 
interest in connection with an authority activity is involuntary by a member or if a 
member of the authority or employee of the authority presently owns or controls, or 
owned or controlled within the preceding 2 years, a direct or an indirect interest known to 
be included or planned to be included in an authority activity, that member or employee 
shall disclose this fact immediately upon discovery in writing to the authority, and the 
disclosure must be entered in a lawful meeting of the authority. A member of the 
authority or employee of the authority with an interest under this subsection may not 
participate in an action by the authority affecting that activity. 
8.  Employees.  The authority may hire employees as the authority considers 
necessary to fulfill it purposes. 
9.  Rules.  The authority may adopt rules as necessary to implement this chapter.  
Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
§13203.  Invest in Maine Capital Fund 
1.  Invest in Maine Capital Fund.  The Invest in Maine Capital Fund is established 
as a nonlapsing revolving loan and equity fund administered by the authority to support 
the capital needs of major business development projects.  The fund consists of sums that 
are appropriated by the Legislature or transferred to the fund from time to time by the 
State Controller, interest earned from the investment of fund balances, state bond issues, 
state employees' pension funds, institutional endowments, seed capital investment tax 
credits, income from subsection 13204, subsection 4 and other funds from any public or 
private source received for use for any of the purposes for which the fund has been 
established.  Disbursements from the fund must be made pursuant to section 13204. 
§13204.  Loan and equity support for major business development projects 
1.  Loan  and equity support.  The authority shall recommend to the Finance 
Authority of Maine disbursements from the fund or shall provide other financial support 
to a qualifying applicant to support a major business development project pursuant to this 
section. Any financial support provided by this section must be memorialized in a written 
contract as determined by the authority. 
2.  Criteria to qualify for financial support.  The authority shall provide financial 
support to an applicant to support a major business development project based upon the 
following criteria: 
A.  The creditworthiness of the applicant, considering factors such as the applicant's 
historical financial performance, management ability, plan to market the applicant's 
product or service and whether the applicant meets or exceeds industry average 
financial performance ratios commonly accepted in determining creditworthiness in 
that industry; 
B.  The sufficiency of collateral pledged by the applicant; 
C.  The sufficiency of projected revenues from the project or other sources to repay 
the financial obligation and meet the requirements of subsection 3 for the term of the 
obligation; 
D.  The level that financial support from the authority enhances the employment and 
wage benefits projected to be created by the major business development project; 
E.  The duration of the employment and wage benefits projected to be created by the 
major business development project; and 
F.  The demonstration that the financial support from the authority is necessary due to 
the reduced cost and increased flexibility of the financial support and not due to the 
applicant's inability to obtain financing from another source. 
3.  Financial support.  The authority may provide the following financial support to 
a qualified applicant under subsection 2: 
A.  A direct loan of up to $50,000,000 from the fund, which must be matched by an 
amount equal to at least 25% that is obtained from another source; or 
B.  Up to $100,000,000 in bond funding for a single major business development 
project and up to $200,000,000 or a qualified applicant for multiple major business 
development projects. 
The authority may require other terms or conditions of financial support under this 
subsection as the authority determines necessary and reasonable. 
4.  Requirements of recipient.  In addition to repayment of the financial support 
received under subsection 3 pursuant to the terms set by the authority, within 5 years after 
the completion of the major business development project the recipient shall pay to the 
fund an amount equal to 10% of the amount of the financial support received under 
subsection 3 pursuant to terms determined by the authority. 
Sec. 3.  Staggered terms.  Notwithstanding the Maine Revised Statutes, Title 5, 
section 13202, subsection 3, of the initial appointments to the Invest in Maine Capital 
Authority, one member appointed pursuant to section 13202, subsection 2, paragraph A 
must be appointed to serve a term of 2 years, one member appointed pursuant to section 
13202, subsection 2, paragraph B must be appointed to a term of 3 years and one member 
appointed pursuant to section 13202, subsection 2, paragraph C must be appointed to a 
term of 3 years.  All other members are appointed to 4-year terms. 
SUMMARY 
This bill creates the Invest in Maine Capital Authority with bonding authority to 
provide loans or bond funding to major business development projects, which are defined 
as development projects that have a projected cost of at least $50,000,000 or are projected 
to result in the creation or retention of at least 250 full-time employment positions that 
pay at least 125% of the state annual average weekly wage.