An Act To Authorize a General Fund Bond Issue To Strengthen School Security (AFTER DEADLINE)
Maine Legislature, Session 128, LD 1883
Committee: Appropriations and Financial Affairs
Sponsors: COREY, DIAMOND, ESPLING, FREDETTE, GOLDEN, HERBIG, JACKSON, LIBBY, MASON, THIBODEAU
Amends: 30-A MRSA §6006-I

Legislative Document
No. 1883
H.P. 1316
House of Representatives, March 27, 2018
An Act To Authorize a General Fund Bond Issue To Strengthen 
School Security
(AFTER DEADLINE)
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205.
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative COREY of Windham.
Cosponsored by Senator DIAMOND of Cumberland and
Representatives: ESPLING of New Gloucester, FREDETTE of Newport, GOLDEN of 
Lewiston, HERBIG of Belfast, Senators: JACKSON of Aroostook, LIBBY of Androscoggin, 
MASON of Androscoggin, President THIBODEAU of Waldo.
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:
PART A
Sec. A-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 $20,000,000 for the purposes described in section 5 of this Part.  
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. A-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. A-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 Part.  Any unencumbered balances remaining at the completion of the project 
in this Part lapse to the Office of the Treasurer of State to be used for the retirement of 
general obligation bonds.
Sec. A-4.  Interest and debt retirement.  The Treasurer of State shall pay 
interest due or accruing on any bonds issued under this Part and all sums coming due for 
payment of bonds at maturity.
Sec. A-5.  Disbursement of bond proceeds from General Fund bond issue.  
The proceeds of the sale of the bonds authorized under this Part 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 for loans to school administrative units to enhance security in schools.
MAINE MUNICIPAL BOND BANK
Maine School Security Enhancement 
Fund
Total
$19,500,000
Provides funds for the creation of a school safety center within the Department of 
Education.
Sec. A-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 Part.
Sec. A-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. A-8.  Bonds authorized but not issued.  Any bonds authorized but not 
issued within 5 years of ratification of this Part are deauthorized and may not be issued, 
except that the Legislature may, within one year after the expiration of that 5-year period, 
extend the period for issuing any remaining unissued bonds for an additional amount of 
time not to exceed 5 years.
Sec. A-9.  Referendum for ratification; submission at election; form of 
question; effective date.  This Part must be submitted to the legal voters of the State at 
a statewide election held in the month of November following passage of this Act.  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 Part by voting on the following question:
"Do you favor a $20,000,000 bond issue to establish the Maine School 
Security Enhancement Fund to provide funds for loans to schools to 
enhance security and to create a school safety center?"
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 Part, the 
Governor shall proclaim the result without delay and this Part becomes effective 30 days 
after the date of the proclamation.
EDUCATION, DEPARTMENT OF
School Safety Center
Total
$500,000
The Secretary of State shall prepare and furnish to each city, town and plantation all 
ballots, returns and copies of this Part necessary to carry out the purposes of this 
referendum.
PART B
Sec. B-1.  30-A MRSA §6006-I is enacted to read:
§6006-I.  Maine School Security Enhancement Fund
1.  Fund established.  The Maine School Security Enhancement Fund, referred to in 
this section as "the fund," is established in the custody of the bank.
2.  Administration.  The bank shall administer and invest the fund.  The fund must 
be established and held separate and apart from any other funds or money of the State or 
the bank and must be used and administered exclusively for the purposes authorized in 
this section.  The fund consists of:
A.  Sums that may be appropriated by the Legislature or transferred to the fund by the 
Treasurer of State;
B.  Principal and interest received from the repayment of loans made from the fund;
C.  Capitalization grants and awards made to the State or an instrumentality of the 
State by the United States for any of the purposes for which the fund has been 
established.  These amounts may be paid directly into the fund without appropriation 
by the State and the bank is designated as the recipient for the State of any such 
funds;
D.  Interest earned from the investment of fund balances;
E.  The proceeds of any bonds or notes issued by the State or the bank sold for the 
purpose of deposit in the fund;
F.  Funds from school security enhancement audit recoveries; and
G.  Other funds and gifts in kind or cash from any public or private source received 
for use for any of the purposes for which the fund has been established and that the 
bank and the Department of Education may solicit from any 3rd parties such as 
foundations or corporations, including the use of tax credits as available to support 
activities authorized for the fund.
3.  Purposes.  The fund may be used:
A.  To make loans to school administrative units for school security enhancements.  
The Department of Education shall determine priorities for school security 
enhancements by rule;
B.  To guarantee or insure, directly or indirectly, the payment of notes or bonds 
issued or to be issued by a school administrative unit for the purpose of financing any 
school security enhancement authorized under paragraph A;
C.  To guarantee or insure, directly or indirectly, funds established by a school 
administrative unit for the purpose of financing any school security enhancement 
authorized under paragraph A;
D.  To deposit with a lending institution or with a trustee bank available fund 
balances to offset loan balances for school administrative units undertaking projects 
authorized by paragraph A;
E.  To invest available fund balances and credit the net interest income on those 
balances to the fund;
F.  To invest as a source of revenue or security for the payment of principal and 
interest on general or special obligations of the bank if the proceeds of the sale of the 
obligations have been deposited in the fund, or if the proceeds of the sale of the 
obligations are used for the purposes authorized in paragraph A, or as a source of 
revenue to subsidize the school administrative unit loan payment obligations; and
G.  To pay the costs of the bank and the Department of Education associated with the 
administration of the fund and projects financed by the fund, except that no more than 
the lesser of 2% of the aggregate of the highest fund balances in any fiscal year and 
4% of the combined value of any capitalization grants provided by the United States 
for deposit in the fund may be used for these purposes.  The Commissioner of 
Education is authorized to receive revenue from the fund administered by the bank.  
Funds provided to the Department of Education from the fund must be deposited in a 
nonlapsing dedicated account to be used to carry out the purposes of this section.
4.  Emergency and crisis plans.  In order to be eligible for a loan from the fund, a 
school administrative unit must demonstrate that a proposed school security enhancement 
is consistent with the unit's emergency and crisis plans.
5.  Limit.  A loan from the fund to a school administrative unit is limited to $500,000 
per priority per school building in a 5-year period.
6.  Training.  The Department of Education shall require a school administrative unit 
to dedicate a portion of the proceeds of each loan from the fund, not exceeding 10% and 
determined by the Department of Education for each loan, to training for school 
employees related to the school security enhancement funded by the loan in order to 
ensure the appropriate use of the school security enhancement.  This training may include 
but is not limited to planning, development of protocols for the school security 
enhancement and coordination with local, county and state emergency responders.
7.  Priorities.  Periodically, and at least annually, the Department of Education shall 
prepare and certify to the bank a project priority list of those school administrative units 
whose projects are eligible for loans under this section.  The Department of Education 
shall submit with the list the factors considered when determining the priorities.
8.  Eligibility terms.  The bank and the Department of Education shall develop by 
rule the terms of repayment of loans.  A loan made pursuant to this section may not carry 
an interest rate higher than 0%.  A loan may be made only if a project is certified by the 
Department of Education as eligible for financing under this section and is on the priority 
list prepared under subsection 7.  The repayment period may vary depending upon the 
financial condition of a school administrative unit as identified by the Department of 
Education.
9.  Forgiveness of principal payments.  The fund must provide direct grants by 
forgiving the principal payments of a loan for an eligible school administrative unit.  The 
amount of the forgiveness of principal payments must be determined by the school 
administrative unit's state share percentage as defined in Title 20-A, section 15672, 
subsection 31, not to exceed 70% and not less than 30%.
10.  Additional funds.  A school administrative unit may raise additional funds from 
private, local or federal sources to support a school security enhancement financed by a 
loan from the fund.
11.  Report.  The bank and the Department of Education shall report to the joint 
standing committee of the Legislature having jurisdiction over education matters and the 
joint standing committee of the Legislature having jurisdiction over public safety matters 
on the operation of the fund each year no later than February 1st.
12.  Establishment of accounts.  The bank may establish accounts and subaccounts 
within the fund as it determines desirable to effectuate the purposes of this section, 
including, but not limited to, accounts to segregate a portion or portions of the fund as 
security for bonds issued by the bank for deposit in the fund and to be invested for the 
benefit of specified projects receiving financial assistance from the fund.
13.  Rules.  The Department of Education and the bank shall adopt rules necessary to 
implement this section.  Except as provided in this subsection, rules adopted by the 
Department of Education and the bank to implement this section are routine technical 
rules pursuant to Title 5, chapter 375, subchapter 2-A.  The Department of Education and 
the bank shall adopt rules, which are major substantive rules pursuant to Title 5, chapter 
375, subsection 2-A, governing which records related to the fund, including, but not 
limited to, records related to an application for a loan from the fund or to the award of a 
loan from the fund, are confidential and not subject to disclosure under the Freedom of 
Access Act.  The Department of Education shall adopt rules, which are major substantive 
rules pursuant to Title 5, chapter 375, subchapter 2-A, governing which meetings relating 
to the fund and school security are not public proceedings, notwithstanding the Freedom 
of Access Act.
Sec. B-2.  Contingent effective date.  This Part takes effect only if the General 
Fund bond issue proposed in Part A is approved by the voters of this State.
SUMMARY
The funds provided by this bond issue, in the amount of $20,000,000, will be used to 
strengthen school security.  The bill establishes the Maine School Security Enhancement 
Fund to provide loans to school administrative units to enhance security in schools and 
provides $19,500,000 to the fund for this purpose.  The bill also creates a school safety 
center within the Department of Education and provides $500,000 for this purpose.