An Act to Require Voter Approval of Certain Borrowing by Government-controlled Entities and Utilities and to Provide Voters More Information Regarding That Borrowing Transmitted to the Clerk of the 131st Maine Legislature by the Secretary of State on April 21, 2023 and ordered printed.
Maine Legislature, Session 131, LD 1772
Amends: 5 MRSA §158

Legislative Document
No. 1772
I.B. 4
House of Representatives, April 25, 2023
An Act to Require Voter Approval of Certain Borrowing by 
Government-controlled Entities and Utilities and to Provide Voters 
More Information Regarding That Borrowing
Transmitted to the Clerk of the 131st Maine Legislature by the Secretary of State on April 
21, 2023 and ordered printed.
ROBERT B. HUNT
Clerk
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §158 is enacted to read:
§158.  Limitation on borrowing
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Consumer-owned transmission and distribution utility" has the same meaning as 
in Title 35-A, section 3501, subsection 1. 
B.  "Cooperative" has the same meaning as in Title 35-A, section 4103, subsection 2.
C. "Municipal electric district" means a municipal power district formed pursuant to 
Title 35-A, chapter 39.  
D. "Quasi-independent state entity" has the same meaning as in section 12021, 
subsection 5. 
E. "Reporting entity" has the same meaning as in section 12021, subsection 6. 
F. "Rural electrification cooperative" has the same meaning as in Title 35-A, section 
3703, subsection 2.
2.  Limitation on debt unless approved by voters.  Notwithstanding any provision of 
law to the contrary in effect as of the effective date of this section, and except as provided 
in subsection 4, a quasi-independent state entity, reporting entity, municipal electric 
district, consumer-owned transmission and distribution utility, cooperative or rural 
electrification cooperative may not borrow money, incur debt, whether general obligation 
debt or revenue obligation debt, or issue bonds, notes or other evidences of indebtedness 
that would cause its total debt outstanding at any time to exceed $1,000,000,000 unless the 
action that would cause the total debt outstanding to exceed $1,000,000,000 is approved by 
the voters at a general election duly called and held in accordance with the provisions of 
Title 21-A. Any borrowing, incurrence of debt, or issuance of bonds, notes, other evidences 
of indebtedness or other obligations subject to this section by a quasi-independent state 
entity, reporting entity, municipal electric district, consumer-owned transmission and 
distribution utility, cooperative or rural electrification cooperative after the effective date 
of this section that is not approved by the voters as required by this subsection is invalid 
and not legally binding nor enforceable. 
3.  Statement to accompany referendum question.  The Treasurer of State, with the 
assistance of the Secretary of State, shall prepare a signed statement to accompany any 
question submitted to the voters for approval under subsection 2.  The statement must 
include, at a minimum, an estimate of costs involved, including an explanation, based on 
such factors as interest rates that may vary, of the interest cost contemplated to be paid on 
the amount to be issued, the total cost of principal and interest that will be paid through 
maturity and any other substantive explanatory information relating to the debt as the 
Treasurer of State considers appropriate. The statement must be printed on the ballot or 
printed as a separate document that is available to voters as provided in Title 21-A, section 
651.  This statement must also be included in the citizen's guide to the referendum election 
issued by the Secretary of State pursuant to Title 21-A, section 605-A, subsection 2, 
paragraph E.
4.  Exemptions.  This section does not apply to borrowing or issuance of bonds, notes, 
other evidences of indebtedness or other obligations pursuant to chapter 421; Title 10, 
chapter 110; Title 20-A, Part 5; Title 22, chapter 413; Title 23, Part 1; or Title 30-A, chapter 
or chapter 225.
5.  Effective date.  This section takes effect:
A.  If the Act containing this section was referred to the people and approved by a 
majority of the votes given thereon, 90 days after the Governor has made a public 
proclamation of the result of the vote on the Act; or
B.  If the Act containing this section was enacted without change by the Legislature at 
the session at which it was presented, 365 days after such enactment by the Legislature.
SUMMARY
This initiated bill prohibits a quasi-independent state entity, reporting entity, municipal 
electric district, consumer-owned transmission and distribution utility, cooperative or rural 
electrification cooperative from borrowing money, incurring debt, whether general 
obligation debt or revenue obligation debt, or issuing bonds, notes or other evidences of 
indebtedness that would cause its total debt outstanding at any time to exceed 
$1,000,000,000 unless the action that would cause the total debt outstanding to exceed 
$1,000,000,000 is approved by the voters at a general election.  This initiated bill requires 
the Treasurer of State, with the assistance of the Secretary of State, to prepare a statement 
to accompany the question presented to the voters regarding the estimated costs of the 
increased debt and any other issues the Treasurer of State considers relevant.  
Exemptions are provided for debt issued by the Maine Public Employees Retirement 
System, the Finance Authority of Maine, the Maine Health and Higher Education Facilities 
Authority, the Department of Transportation, the Maine Turnpike Authority, municipalities 
and counties and the Maine Municipal Bond Bank and for certain education-related 
programs.