An Act To Authorize a General Fund Bond Issue To Assist in the Commercialization of Maine Products and Services
Maine Legislature, Session 128, LD 1613
Committee: Appropriations and Financial Affairs
Sponsors: VOLK, MASTRACCIO

Legislative Document
No. 1613
S.P. 568
In Senate, May 17, 2017
An Act To Authorize a General Fund Bond Issue To Assist in the 
Commercialization of Maine Products and Services
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed.
HEATHER J.R. PRIEST
Secretary of the Senate
Presented by Senator VOLK of Cumberland.  (GOVERNOR'S BILL)
Cosponsored by Representative MASTRACCIO of Sanford.
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 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 under the direction and supervision of the agencies 
and entities set forth in this section. 
Provides funds to the Small Enterprise Growth Board to establish or participate in a 
new equity capital fund, the Chamberlain Fund. Investments from the fund will be 
leveraged by private sector capital.  The fund will provide patient capital to rapidly 
growing businesses in the State with strong potential for job growth and return on 
investment. 
SMALL ENTERPRISE GROWTH 
FUND 
The Chamberlain Fund 
Provides funds to expand the Finance Authority of Maine's subordinated debt 
capability by providing additional funding for the Economic Recovery Loan 
Program, enabling the Finance Authority of Maine to increase its current maximum 
direct business loan limit to any one borrower and leverage additional private capital.  
Provides funds to create a new fund, the Baxter Innovation Challenge Fund, 
administered by the Department of Economic and Community Development in 
consultation with the Maine Technology Institute.  The fund will focus on technology 
sectors with a particular emphasis on identifying and addressing challenges facing 
traditional industries in the State.  Additionally, the fund will leverage at least 
$30,000,000 in other funds to repurpose and utilize existing infrastructure to facilitate 
the continued growth of businesses and commercial enterprises that grow the State's 
economy and create new jobs. 
Sec. 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 Act. 
Sec. 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. 8.  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 
Total 
$10,000,000
FINANCE AUTHORITY OF MAINE 
Economic Recovery Loan Program 
Total 
$10,000,000
ECONOMIC AND COMMUNITY 
DEVELOPMENT, DEPARTMENT OF 
Maine Technology Institute 
Total 
$30,000,000
the period for issuing any remaining unissued bonds for an additional amount of time not 
to exceed 5 years. 
Sec. 9.  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 June of 2017.  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 further accelerate growth and 
capital investment in Maine businesses by leveraging private investment 
for the purpose of generating new revenue and providing new jobs?" 
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 funds provided by this bond issue, in the amount of $50,000,000, will be used to 
further accelerate growth and capital investment in businesses in the State by leveraging 
private investment for the purpose of generating new revenue and providing new jobs.