An Act To Amend the Laws Governing the Issuance of Bonds
Maine Legislature, Session 130, LD 0339
Committee: Appropriations and Financial Affairs
Sponsors: MIRAMANT
Amends: 2 MRSA §11, 5 MRSA §145, 5 MRSA §145-B

Legislative Document
No. 339
S.P. 146
In Senate, February 8, 2021
An Act To Amend the Laws Governing the Issuance of Bonds
Received by the Secretary of the Senate on February 4, 2021.  Referred to the Committee 
on Appropriations and Financial Affairs pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator MIRAMANT of Knox.
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.