An Act To Establish a State Bank
Maine Legislature, Session 128, LD 0237
Committee Amendment CA_A_S12 (Senate)
Amends: 5 MRSA §12004-F, 5 MRSA §12004, 9-B MRSA §1253

COMMITTEE AMENDMENT "A" to S.P. 83, L.D. 237, Bill, "An Act To 
Establish a State Bank" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 5 MRSA §12004-F, sub-§19 is enacted to read: 
19. 
Maine Green Bank, Board of 
Directors 
Expenses Only 
Sec. 2. 5 MRSA §12004-1, sub-§2-H is enacted to read: 
2-H. 
Banking 
Maine Green Bank 
Expenses Only 
Advis01y Committee 
Sec. 3. 9-B MRSA c. 125 is enacted to read: 
§1251. Definitions 
CHAPTER 125 
MAINE GREEN BANK 
9-B MRSA §1253 
9-B MRSA § 1254 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1. 
Advisory committee. 
"Advisory committee" means the Maine Green Bank 
Advisory Committee under section 1254. 
2. Bank. "Bank" means the Maine Green Bank established in section 1252. 
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COMMITTEE AMENDMENT" A "to S.P. 83, L.D. 237 
3. Board. "Board" means the Board of Directors of the Maine Green Bank under 
section 1253. 
4. 
Bureau. 
"Bureau" means the Department of Professional and Financial 
Regulation, Bureau of Financial Institutions. 
5. Instrumentalities. "Instrumentalities" means institutions and entities owned by 
the State, including, but not limited to, the University of Maine System, the Maine 
Maritime Academy, the Maine Community College System, the Maine Educational Loan 
Authority, the Loring Development Authority of Maine, the Midcoast Regional 
Redevelopment Authority, the Maine Municipal Bond Bank, the Maine Turnpike 
Authority, the Maine State Lottery Commission, the Maine Housing Authority, the Maine 
Technology Institute, the Maine Ferry Service, Dirigo Health, the Baxter State Park 
Authority and the Finance Authority of Maine. 
6. Participation loan. "Participation loan" means a loan in which one or more than 
one bank, bank holding company, state-chartered or federally chartered financial 
institution, any other financial institution or any other lender that provides financial 
services participates pursuant to a written agreement with the originator of the loan. 
7. Political subdivision. "Political subdivision" has the same meaning as in Title 
30-A, section 2252. 
8. Public funds. "Public funds" means funds under control of, or in the custody of, 
state, county or local government-owned instrumentalities or entities. 
§1252. Bank established; purposes 
1. Established. The Maine Green Bank is established and is a public body corporate 
and politic and an instrumentality of the State. 
2. Purposes. The bank is established for the following purposes: 
A. To increase per capita income of residents and families in the State; 
B. To raise living standards, lessen destitution and hunger by providing expanding 
opportunities, livelihoods and incomes and to strengthen families' livelihoods by 
providing human resources to enable enterprises to grow, hire workers, produce 
goods and services and provide well-paying jobs increasing the common wealth of 
communities in the State; 
C. To reduce vulnerability to periodic financial collapses and recessions, to stabilize 
property values and reduce negative equity due to property price declines during and 
after financial collapses and recessions and to lessen the state economy's exposure to 
global cyclical downturn risks; 
D. To increase government revenues from profits generated by the bank to enable tax 
rate reductions by returning these profits to the Maine Budget Stabilization Fund 
established in Title 5, section 1532; 
E. To expand credit, liquidity and the supply of money, increasing local lending 
within communities and regions that are expanding local businesses; 
F. 
To reduce costs paid by instrumentalities and political subdivisions for basic 
banking services; 
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G. To increase profitability of businesses in the State, including community banks, 
credit unions and financial institutions, by increasing liquidity and reducing the 
businesses' tax burdens; 
H. To increase economic activity, augment job creation, raise business and farm 
access to capital and expand local enterprises; 
I. To offer programs to renovate and reoccupy derelict vacant properties, improving 
the attractiveness and vitality of communities in the State; 
J. To provide programs to develop commercial and industrial enterprises that do not 
harm the environment, raise carbon emissions or increase the rate of climate change; 
K. 
To expand natural resource-based enterprises, including farming, forestry, 
fisheries, conservation, aquaculture, ecotourism, clean energy and recreation, and 
provide working capital loans, farm financing, infrastructure and enterprise 
incubation resources; 
L. To reduce foreclosures by furnishing capital to refinance mortgage loans at lower 
interest rates and raising personal incomes and livelihoods; 
M. To provide greater income opportunities and affordable housing availability to 
enable residents to obtain shelter to reduce homelessness; 
N. 
To furnish safe depository services for state agencies, instrumentalities and 
political subdivisions that cannot be confiscated under the provisions of the federal 
Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, 
which allows creditors of failed large banks to seize their customers' deposits if any 
global systemically important financial institution fails; 
0. 
To finance medical and dental health enterprises, facilities, equipment, 
laboratories, training and comprehensive elderly care; 
P. 
To create and expand socially responsible enterprises that work toward 
community needs and goals; 
O. 
To issue emergency loan relief to enterprises and communities hit by natural 
disasters, floods, hurricanes or other incidents of unexpected destruction; 
R. To offer, buy, sell and service real estate-backed mortgages on property in the 
State and secured loans; 
S. 
To offer community water, sewer, transportation, road, rail, bridge, electrical, 
cable, broadband, telephone conduit and public utility loans and other infrastructure 
financing; 
T. To lessen stress on those who have to pay college loans by offering college debt 
refinancing at lower rates for Maine residents; 
U. To reduce the tax burden of debt service costs to pay for capital improvements by 
issuing and refinancing debt at lower interest rates; 
V. To lower inequality in the concentration of wealth; 
W. To cut loan delinquency rates by increasing family income; 
X. To provide financial services unavailable in the private sector; 
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Y. To capitalize solar energy, wind energy and other renewable energy projects that 
reduce carbon emissions; 
Z. To provides funds for state lending programs at lower rates; 
AA. To act as a correspondent bank for community banks; 
BB. To increase the credit rating of the State and its citizens by raising funds needed 
to pay state debts and expanding economic activity and personal income throughout 
the State; and 
CC. To provide higher returns than commercial banks on investments of taxpayer 
funds. 
§1253. Board of directors; duties and powers 
1. Members. The Maine Green Bank Board of Directors is the bank's governing 
body and consists of at least 17 members as follows. 
A. The State Treasurer, the Commissioner of Labor, the Commissioner of Education, 
the Commissioner of Health and Human Services and the Commissioner of 
Agriculture, Conservation and Forestty, or their designees, shall serve as ex officio 
nonvoting members of the board. Ex officio members may vote in the event of a tie 
vote of other board members. 
B. At least 12 members appointed by the Governor, subject to review by the joint 
standing committee of the Legislature having jurisdiction over insurance and 
financial services matters and to confirmation by the Senate. 
C. Of the members appointed under paragraph B, the Governor must appoint at least 
one board member from each of the 16 counties of the State. Ex officio members may 
be counted as representatives of the county in which they reside at the beginning of 
their term. The gender and party enrollment of board members must correspond to 
the gender and party enrollment of the State's population. 
D. The board shall oversee the operation, management and control of the bank in 
accordance with this chapter. The board shall designate its chair, vice-chair and 
secretary and shall determine the location of the bank's offices, which must be within 
the State. The board may also identify and select other offices and officers among its 
members to carry out its operations. 
2. Meetings; quorum. The board shall establish the frequency of regular board 
meetings in bylaws and public notice requirements for meetings through rulemaking 
under subsection 5. A special meeting may be called at any time upon notice by the 
Governor or by 5 board members. A majority of board members constitutes a quorum to 
transact business. At the discretion of the board, meetings may be conducted remotely by 
telephone or by using audio or video conferencing technology. 
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3. Appointment of president; employment of officers and agents. The board shall 
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appoint as president and chief executive officer of the bank a person with extensive 
banking experience and education. The board may appoint and employ any other 
subordinate bank officers, employees and agents that it considers necessary, define duties, 
designate titles and fix compensation. The board may discharge any person appointed and 
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COMMITTEE AMENDMENT" A "to S.P. 83, L.D. 237 
employed under this subsection. Political affiliation may not be a factor in the selection of 
officers. 
4. Compensation. Board members are eligible for compensation according to the 
provisions of Title 5, section 12004-F, subsection 19. 
5. Rulemaking. The board shall adopt bylaws and operating policies by rule and 
shall enforce orders necessary to fulfill its functions under this section. Rules adopted 
pursuant to this subsection are major substantive rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
6. Terms. Except ex officio board members, members serve a 5-year term of office. 
One term of office must end and a new one must begin in January of each calendar year. 
§1254. Advisory committee 
The Governor shall appoint the Maine Green Bank Advisory Committee, as 
established in Title 5, section 12004-I, subsection 2-H, subject to review by the joint 
standing committee of the Legislature having jurisdiction over insurance and financial 
services matters and confirmation by the Senate. 
1. Members. The advisory committee consists of 17 members as follows. 
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A. Members must represent the State's financial, business, agricultural and labor 
sectors. 
B. At least 2 members must be officers of state-chartered financial institutions. 
C. Of the members appointed, there must be a resident from each of the counties of 
the State. 
2. Officers. The advisory committee shall elect a chair, vice-chair, secretary and 
other officers considered necessary. 
3. Terms. Advisory committee members serve a term of office of 5 years. 
4. Vacancies. If a vacancy occurs on the advisory committee, the Governor shall 
appoint a successor to fill the unexpired term. The appointment of the successor must be 
confinned by the Senate. 
5. Quorum. A majority of the members of the advisory committee constitutes a 
quorum. 
6. Duties. The advisory committee shall: 
A. Meet with the board to review and make recommendations concerning the bank's 
operations, finances and loan practices; 
B. Make recommendations to the board for improving management performance, 
customer service and internal methods, procedures and operating policies of the bank; 
C. Make recommendations to the board relating to objectives for bank operations; 
D. Participate, if needed, on loan committees; 
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E. Accept and discuss grievances, complaints and criticism about operations of the 
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bank, and mediate between the bank and the Governor; and 
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COMMITTEE AMENDMENT "A.." to S.P. 83, L.D. 237 
F. Establish bylaws and policies for the advisory committee's operation. 
7. 
Compensation. Advisory committee members are eligible for compensation 
according to the provisions of Title 5, section 12004-I, subsection 2-H. 
8. Political affiliation. Political affiliation may not be a factor in the selection of the 
advisory committee. 
§1255. Powers of the bank 
1. Deposit of funds. The bank may accept deposits of government funds. 
2. Accounts. The bank may offer the following types of accounts. 
A. The bank shall offer demand deposits, or checking accounts, to instrumentalities 
of the State, individuals, institutions or political subdivisions in the State. 
B. The bank may issue time deposits, savings accounts or certificates of deposit to 
instrumentalities of the State, individuals, institutions or political subdivisions in the 
State. 
3. Paying of interest. The bank may pay interest on deposits of public funds and 
may offer other financial products to the Treasurer of State and other public institutions. 
4. Deposit by the Treasurer of State. The Treasurer of State shall deposit at least 
30% of the cash in the Treasurer of State's cash pool with the bank and may borrow from 
it. 
5. Deposit by instrumentalities. Instrumentalities of the State shall deposit at least 
a minimum of 30% of their cash in the bank and may borrow from it. 
6. 
Deposit by political subdivisions. 
Political subdivisions may deposit public 
funds in the bank and may borrow from it. 
7. Loans. The bank may: 
A. Make, purchase, guarantee, modify or participate in loans originated by state-
chartered financial institutions that are insured or guaranteed in whole or in part by 
the United States or its agencies or instrumentalities of the State; 
B. Make, purchase, guarantee, participate in or modify loans to instrumentalities of 
the State; 
C. Purchase, guarantee, modify, participate in or hold loans originated by financial 
institutions authorized to do business in the State; and 
D. Purchase, guarantee, modify, participate in or hold loans obtained as security 
pledged for, or originated in restructuring of, any other loan properly originated or 
participated in by the bank. 
8. Prohibited activities. The bank may not: 
A. 
Finance mergers or acquisition of any profitable active enterprises within or 
outside the State. The bank may finance the acquisition of local failing or 
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unprofitable enterprises by profitable enterprises within the State only if the resulting 
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enterprises continue to provide income, jobs and tax revenues and serve local 
communities; 
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COMMITTEE AMENDMENT "A "to S.P. 83, L.D. 237 
B. Invest in large real estate development projects that eliminate farmland or forest 
habitats or tend to cause or increase sprawl; 
C. Merge with any privately owned enterprise or institution; 
D. Fund projects that damage the environment, increase greenhouse gases, increase 
carbon concentration of the earth's atmosphere or increase acidity, pollution or the 
temperature of oceans, seas, lakes, rivers or waterways; 
E. Underwrite stores in excess of 40,000 square feet or stores with parking lots not 
designed for pedestrians or stores on the outskirts of communities that may affect 
downtown businesses; or 
F. Capitalize projects whose borrowers have histories of human rights abuse or other 
malfeasance. 
9. Participation interests. The bank may: 
A Purchase interests in state-based participation loans made or held by other banks, 
other financial institutions or other entities that meet underwriting standards accepted 
by state or federal financial regulatory agencies; and 
B. Make participation loans to qualified entities doing business in this State when the 
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loan originator is a private financial institution. 
10. Investments. The bank shall invest its funds in conformity with the policies of 
the board and investment standards in Title 5, chapter 7. To avoid financial distress to 
state community banks during start-up operation of the bank, the bank may redeposit 
funds in state community depository banks to replace those deposits removed by 
instrumentalities of the State or the Treasurer of State to move state funds into the bank. 
11. 
Bonds. 
The bank may issue bonds or other financial securities, except 
derivatives. 
12. Property. The bank may lease, assign, sell, exchange, transfer, convey, grant, 
pledge or mortgage real and personal property. 
13. Services to other banks. The bank may: 
A 
Act as a correspondent bank or custodian bank for financial institutions 
authorized to do business in this State and accept deposits from the financial 
institutions in connection with this function; 
B. Issue bank stock loans to financial institutions authorized to do business in this 
State; 
C. 
For financial institutions that make the bank a reserve depository, perform 
functions and render services of a clearinghouse, functions for providing domestic 
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and foreign exchange and rediscount notes on terms prescribed by the board; and 
D. Act as a fiduciary for individuals, institutions, municipalities and instrumentalities 
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within the State. 
14. Other powers. The bank may exercise other powers granted or implied in this 
chapter. 
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COMMITTEE AMENDMENT "A "to S.P. 83, L.D. 237 
§1256. Transfer to Maine Budget Stabilization Fund 
As soon as possible after the end of each calendar year, the board shall determine the 
amount of income, if any, earned by the bank in excess of the amount necessary to pay 
for the expenses of administering bank operations for transfer to the Maine Budget 
Stabilization Fund established in Title 5, section 1532. 
§1257. Oversight; rules and examination 
1. Rule-making authority. The board shall adopt rules to: 
A. Ensure the soundness and safety of the bank reflecting standards set forth in 12 
Code of Federal Regulations, Part 3 64 (2014 ); 
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B. Specify the bank's powers and permissible investments and activities; 
C. Specify services that the bank may provide; 
D. Describe limits for loans and other obligations the bank undertakes; and 
E. Establish stipulations that the board considers necessary to administer the bank 
under this chapter and to accomplish the purposes listed in section 1252. 
Prior to their adoption by the board, rules must be approved by the advisory committee. 
Rules adopted under this subsection are major substantive rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
2. Examination. The bureau shall examine the bank at least once each calendar 
quarter to ensure that the bank is complying with rules adopted under subsection 1. The 
bureau shall report results of an examination to the board, advisory committee, 
Legislature and the Commissioner of Administrative and Financial Services. The bureau's 
report is a public record pursuant to Title 1, chapter 13. 
3. Audit. The board shall employ a certified public accountant to internally audit 
and provide comprehensive consolidated annual financial reports of the bank's operations 
in accordance with generally accepted accounting principles. The State Auditor shall 
audit the bank at least once per year. 
4. Annual report. Beginning July 1, 2020 and annually thereafter, the bank shall 
report to the Governor and the Legislature on the financial condition and performance of 
the bank and provide an analysis of the bank's effect on the State to ensure that it is 
consistent with the bank's purposes set forth in section 1252, particularly the bank's effect 
on iob creation and economic development. 
§1258. Use of name; execution of instruments 
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Activities of the bank must be conducted under and title to property of the bank must 
be obtained and conveyed as: "State of Maine doing business as Maine Green Bank." 
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Within the scope of authority granted by the board, the president of the bank may execute 
instruments on behalf of the bank, including any instrument granting, conveying or 
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affecting interest in, or lien upon, real or personal property. 
Officers, employees or 
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agents of and legal counsel to the bank may execute instruments on behalf of the bank 
when authorized by the board. 
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COMMITTEE AMENDMENT "A "to S.P. 83, L.D. 237 
§1259. Exemption from taxation 
Notwithstanding any other provision of law, transactions, funds and property of the 
bank are exempt from taxation within the State.' 
SUMMARY 
This amendment is the minority report and replaces the bill. The amendment 
establishes the Maine Green Bank, specifies its purposes, establishes its board of directors 
and creates its advisory committee. It allows the Maine Green Bank to accept deposits of 
public funds, make loans and operate as a bank. It directs the Treasurer of State and 
instrumentalities to deposit public funds into the Maine Green Bank. 
The amendment provides for a quarterly examination of the Maine Green Bank by 
the Department of Professional and Financial Regulation, Bureau of Financial Institutions 
and an annual audit by the State Auditor. The amendment also provides that the Maine 
Green Bank is exempt from taxation as a state entity. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/20/17 feac 
LD237 
LR 834(02) 
An Act To Establish a State Bank 
Fiscal Note for Bill as Amended by Committee Amendment '>4." 
=) 
Committee: Insurance and Financial Services 
( S ~ \ c 
Fiscal Note Required: Yes 
Fiscal Note 
Potential future biennium revenue decrease - All Funds 
Fiscal Detail and Notes 
This legislation establishes the Maine Green Bank and requires a number of instrumentalities of the State to deposit a 
minimum of 30% of their cash into the new entity. Requiring such deposits into the Maine Green Bank may, and in 
the opinion of some of these instumentalities will, result in lower investment earnings on the deposits and a potential 
increase in borrowing costs to such institutions as the Office of Treasurer of State, the Finance Authority of Maine, 
the University of Maine, the Maine Community College System, the Maine Technology Institute, the Maine State 
Housing Authority and other instrumentalities of the State. At this time it cannot be determined what the rates of 
return and ihe costs of Lhe new bank will likely be. The largest potential impact on Lhe General Fund would be from 
the Office of Treasurer of State. In addtion to lower earnings rates on investments, the Treasurer has indicated her 
additional concern of an increased risk of losing principal. 
This bill projects to require an Other Special Revenue Funds allocation of $108,019 in fiscal year 2019-20 and of 
$110,465 in fiscal year 2020-21 to the Department of Professional and Financial Regulation to hire and outfit one 
additional Senior Bank Examiner to manage the increased workload. 
Additional costs to the Departments of Labor, Education, Health and Human Services, the Office of the State 
Treasurer and the Department of Agriculture, Conservation and Forestry to serve as ex-officio members of the Maine 
Green Bank Board of Directors can be absorbed within each agency's existing budgeted resources. 
LR0834(02) - Fiscal Note - Page 1 of 1