An Act To Create and Sustain High-quality Maine Jobs
Maine Legislature, Session 127, LD 1480
Committee: Labor, Commerce, Research and Economic Development
Sponsors: GERZOFSKY, GIDEON, ALFOND, BREEN, BURNS, CUSHING, DIAMOND, HASKELL, KATZ, DUCHESNE
Amends: 10 MRSA §1026-U

Legislative Document 
No. 1480 
S.P. 578 
In Senate, December 18, 2015 
An Act To Create and Sustain High-quality Maine Jobs 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Secretary of the Senate on December 18, 2015.  Referred to the Committee 
on Labor, Commerce, Research and Economic Development pursuant to Joint Rule 308.2 and 
ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator GERZOFSKY of Cumberland. 
Cosponsored by Representative GIDEON of Freeport and 
Senators: ALFOND of Cumberland, BREEN of Cumberland, BURNS of Washington, 
CUSHING of Penobscot, DIAMOND of Cumberland, HASKELL of Cumberland, KATZ of 
Kennebec, Representative: DUCHESNE of Hudson. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  10 MRSA §1026-U is enacted to read: 
§1026-U.  Maine Capital Investment Program 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Business development project" means a project that involves the construction, 
development, rehabilitation, modernization or acquisition of a building, a structure, a 
system, machinery, equipment or a facility that has a projected cost of at least 
$50,000,000 or is projected to result in the creation or retention of a 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. 
B.  "Fund" means the Maine Capital Investment Fund established in subsection 4. 
C.  "Program" means the Maine Capital Investment Program established pursuant to 
subsection 2. 
2.  Program established.  The authority shall create and oversee the Maine Capital 
Investment Program to increase the availability of capital to eligible business 
development projects as provided under this section. 
3.  Authority assets; obligation.  This section may not be construed to place the 
assets of the authority at risk. This section may not be construed to create an obligation of 
the State or of any political subdivision of the State. 
4.  Maine Capital Investment Fund.  The Maine Capital Investment Fund is 
established as a nonlapsing revolving loan and equity fund administered by the authority 
to support the capital needs of business development projects under the program. The 
fund is capitalized by sums that are appropriated or allocated 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 employee pension funds, institutional 
endowments and other funds from any public or private source received for use for any of 
the purposes for which the fund has been established. The authority may charge the fund 
reasonable fees for the cost of implementing and administering the program and any 
loans or bonds authorized by this section. 
5.  Criteria to qualify for financial support.  The authority shall provide financial 
support to an applicant to support a business development project under the program 
based in part but not solely on the following criteria: 
A.  The creditworthiness of the applicant, including 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 
the applicant's industry; 
B.  The sufficiency of collateral pledged by the applicant; 
C.  The sufficiency of projected revenues from the business development project or 
other sources to repay the financial support received under and meet the requirements 
of subsection 6 for the term of the obligation; 
D.  The extent to which financial support from the authority enhances the 
employment and wage benefits projected to be created by the business development 
project; 
E.  The duration of the employment and wage benefits projected to be created by the 
business development project; and 
F.  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. 
6.  Financial support.  The authority may provide the following financial support to 
an applicant determined to be qualified under subsection 5: 
A.  A direct loan of up to $50,000,000 from the fund for a single business 
development project, which must be matched by an amount that is equal to at least 
25% of the loan amount and that is obtained from a source other than the fund; or 
B.  Up to $100,000,000 in bond funding for a single business development project 
and up to $200,000,000 in bond funding to the same applicant for multiple business 
development projects. 
The authority may require other terms or conditions of financial support under this 
subsection as the authority determines necessary and reasonable. 
7.  Seed capital investment tax credit.  Investments into the fund qualify for the 
seed capital investment tax credit under Title 36, section 5216-B, within the limitations 
specified by that section. 
8.  Requirements of recipient.  In addition to repayment of the financial support 
received under subsection 6 pursuant to the terms set by the authority, within 5 years after 
the completion of the 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 6 
pursuant to terms determined by the authority. 
9.  Rules.  The authority may adopt rules as necessary to implement this section. 
Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
Sec. 2.  Contingent effective date.  This Act takes effect only upon the receipt by 
the Finance Authority of Maine for the Maine Capital Investment Fund under the Maine 
Revised Statutes, Title 10, section 1026-U of an appropriation or allocation by the 
Legislature or funds from another funding source in the amount of at least $250,000,000.  
The Finance Authority of Maine shall notify the Secretary of State, the Secretary of the 
Senate, the Clerk of the House of Representatives and the Revisor of Statutes when the 
funds are received pursuant to this section. 
SUMMARY 
This bill creates the Maine Capital Investment Program within the Finance Authority 
of Maine to provide loans or bond funding to eligible business development projects that 
have projected costs 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.  The bill does not take effect until the authority receives 
funds for the program in the amount of at least $250,000,000.