An Act To Authorize a General Fund Bond Issue To Establish a Maine County Correctional Facilities Revolving Construction and Improvement Fund
Maine Legislature, Session 129, LD 1333
Committee: Appropriations and Financial Affairs
Sponsors: STANLEY, CAMPBELL, HANLEY, RILEY, VEROW, WHITE

Legislative Document
No. 1333
H.P. 961
House of Representatives, March 21, 2019
An Act To Authorize a General Fund Bond Issue To Establish a 
Maine County Correctional Facilities Revolving Construction and 
Improvement Fund
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative STANLEY of Medway.
Cosponsored by Representatives: CAMPBELL of Orrington, HANLEY of Pittston, RILEY of 
Jay, VEROW of Brewer, WHITE of Waterville.
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 $100,000,000 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 to fund the construction, repair and upgrading of county correctional 
facilities.
MAINE COUNTY CORRECTIONAL 
FACILITIES CONSTRUCTION AND 
IMPROVEMENT BOARD
Total
$100,000,000
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 2 years 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 $100,000,000 bond issue to provide funds for the 
construction, repair and upgrading of county correctional facilities?"
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.
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 c. 13, sub-c. 6 is enacted to read:
SUBCHAPTER 6
MAINE COUNTY CORRECTIONAL FACILITIES REVOLVING 
CONSTRUCTION AND IMPROVEMENT FUND
§1681.  Definitions
As used in this subchapter, unless the context otherwise indicates, the following 
terms have the following meanings.
1.  Board.  "Board" means the Maine County Correctional Facilities Construction 
and Improvement Board established under section 1683.
2.  Fund.  "Fund" means the Maine County Correctional Facilities Revolving 
Construction and Improvement Fund established under section 1682.
§1682.  Maine County Correctional Facilities Revolving Construction and 
Improvement Fund
1.  Fund established.  The Maine County Correctional Facilities Revolving 
Construction and Improvement Fund is established as a nonlapsing, interest-earning 
revolving fund administered by the board under section 1683.
2.  Sources of fund.  Sources of the fund may include:
A.  Money appropriated or allocated by the State for inclusion in the fund;
B.  Money that the board receives in repayment of loans from the fund;
C.  Interest, dividends and pecuniary gains from investment of money in the fund;
D.  Money from any bond issues approved by the voters of the State for the purposes 
of the fund; and
E.  Money otherwise made available to the board for the purposes of the fund.
3.  Application of fund.  Money in the fund may be loaned to a county for a project 
to construct, repair or upgrade a county correctional facility pursuant to section 1683, 
subsection 4.
§1683.  Maine County Correctional Facilities Construction and Improvement Board
1.  Establishment.  The Maine County Correctional Facilities Construction and 
Improvement Board is established to administer the fund.
2.  Members.  The board consists of the following members:
A.  The Treasurer of State or the treasurer's designee;
B.  The Commissioner of Administrative and Financial Services or the 
commissioner's designee;
C.  Two county commissioners appointed by the Governor from a list of nominees 
prepared by an association of county commissioners in the State; and
D.  Two sheriffs appointed by the Governor from a list of nominees prepared by a 
sheriffs' association in the State.
3.  Terms.  Members of the board who are appointed serve for a term not to exceed 3 
years.
4.  Duties.  The board shall administer the fund.
A.  The board may receive and invest on behalf of the fund money made available to 
the board for the use of the fund in addition to money appropriated or allocated by the 
State or from bond issues approved by the voters of the State.  Loan repayments 
under this subchapter must be invested by the board, as provided by law, with the 
income earned to be added to the fund.  The board may divide the fund into separate 
accounts as determined necessary or convenient to accomplish the purposes of the 
fund.
B.  The board may approve an application for a loan to a county to accomplish the 
purposes of the fund.  A loan from the fund must be approved at a referendum of the 
voters of the county where the project is located.  The debt incurred is the obligation 
of the county that receives the loan.
Sec. B-2.  Staggered terms.  Notwithstanding the Maine Revised Statutes, Title 
30-A, section 1683, subsection 3, of the members of the Maine County Correctional 
Facilities Construction and Improvement Board who are county commissioners, the first 
appointed by the Governor serves for a term of 2 years and the 2nd serves for a term of 3 
years, and of the members of the board who are sheriffs, the first appointed by the 
Governor serves for a term of 2 years and the 2nd serves for a term of 3 years.
Sec. B-3.  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
This bill provides for a bond issue, in the amount of $100,000,000, to fund the 
construction, repair and upgrading of county correctional facilities.  The bill establishes 
the Maine County Correctional Facilities Revolving Construction and Improvement Fund 
to receive the bond money and the Maine County Correctional Facilities Construction and 
Improvement Board to administer the fund.  The bill allows money in the fund to be 
loaned to a county for a project to construct, repair or upgrade a county correctional 
facility and requires a loan from the fund to be approved at a referendum of the voters of 
the county where the project is located.