An Act To Amend the Laws Governing the Issuance of Bonds
Maine Legislature, Session 129, LD 0792
Committee: Appropriations and Financial Affairs
Sponsors: MIRAMANT, FECTEAU, EVANGELOS, CHIPMAN, LIBBY, BEEBE-CENTER, HANINGTON, MAREAN, RYKERSON
Amends: 2 MRSA §11, 5 MRSA §145, 5 MRSA §145-B

Legislative Document
No. 792
S.P. 236
In Senate, February 12, 2019
An Act To Amend the Laws Governing the Issuance of Bonds
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator MIRAMANT of Knox.
Cosponsored by Representative FECTEAU of Biddeford, Representative EVANGELOS of 
Friendship and
Senators: CHIPMAN of Cumberland, LIBBY of Androscoggin, Representatives: BEEBE-
CENTER of Rockland, HANINGTON of Lincoln, MAREAN of Hollis, RYKERSON of 
Kittery.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  2 MRSA §11 is enacted to read:
§11.  General obligation bonds
The Governor shall authorize the issuance of a general obligation bond that has been 
ratified by the legal voters of the State unless:
1.  Debt service greater.  The Treasurer of State determines that the debt service on 
the bond would be greater than the amount budgeted;
2.  Adverse impact on credit rating.  The Treasurer of State determines that the 
issuance of the bonds will adversely affect the credit rating of the State;
3.  Advantageous interest rate.  The Treasurer of State determines that a delay in 
the issuance of the bonds will likely result in a more financially advantageous interest 
rate;
4.  Project not proceeding.  The Governor receives notification that a project for 
which the bond was authorized is not going forward and the funding to be provided by 
the bond is not required; or
5.  Alternative funding available.  The Governor receives notification that 
alternative funding sources are available to implement, within a comparable time frame, a 
project and the purposes for which the bond was authorized and ratified.
Upon the occurrence of any of the circumstances set out in subsections 1 to 5, the 
Governor shall immediately notify the President of the Senate and the Speaker of the 
House of Representatives and the majority and minority leaders of the Senate and the 
House of Representatives of the specific bond delayed or otherwise not issued, the extent 
of the delay of the issuance of the bond and the effect of the delay or nonissuance on the 
project and purposes of the bond.
Sec. 2.  5 MRSA §145, as amended by PL 1991, c. 780, Pt. Y, §15, is further 
amended to read:
§145.  Registered bonds
The Treasurer of State may issue registered bonds, transferable by assignment, in 
pieces of not less than $1,000, and of any multiple of 1,000, in exchange for, and in place 
of, any coupon bonds issued under the laws of this State, bearing the same rate of interest 
and maturing at the same time as the bonds that the Treasurer of State may receive 
therefor in exchange. The place of payment prescribed therein must be the State Treasury. 
Said bonds must bear the facsimile of the signature of the Governor and must be signed 
by the Treasurer of State or the Treasurer of State's deputy and attested by the 
Commissioner of Administrative and Financial Services, or such agent as the 
commissioner may designate.
Sec. 3.  5 MRSA §145-B, sub-§2, as amended by PL 1991, c. 780, Pt. Y, §17, is 
further amended to read:
2.  Signatures.  Registered bonds must bear the facsimile signatures of the Governor 
and signature of the Treasurer of State, or the Treasurer of State's deputy, and must be 
attested by the facsimile signature of the Commissioner of Administrative and Financial 
Services or such agents as the commissioner may designate.  Whenever signatures on 
registered bonds of other state officials are required, their facsimile signatures may be 
used.
Sec. 4.  Application.  This Act applies to all general obligation bonds ratified by 
the legal voters of this State but not yet issued as of the effective date of this Act and all 
general obligation bonds ratified by the legal voters of this State on or after the effective 
date of this Act.
SUMMARY
This bill makes the following changes to the laws governing the issuance of bonds:
1.  It requires the Governor to issue a general obligation bond that has been ratified 
by the legal voters of the State unless one of 5 specific conditions exists, and it requires 
the Governor to provide certain information upon delaying or forgoing issuance of a 
bond;
2.  It eliminates the requirement that registered bonds bear the facsimile signature of 
the Governor; and
3.  It provides that the bill applies to all general obligation bonds ratified by the voters 
but as yet unissued as well as all future general obligation bonds ratified by the voters.