An Act to Charter a Maine State Bank That Accepts Deposits and Issues Gold Currency Celebrating Maine's Heritage
Maine Legislature, Session 131, LD 1635
Committee: Health Coverage, Insurance and Financial Services
Sponsors: BRAKEY, LIBBY, BOYER, FREDERICKS, MORRIS, SAMPSON
Amends: 5 MRSA §12004-F, 9-B MRSA §1253

Legislative Document
No. 1635
S.P. 652
In Senate, April 12, 2023
An Act to Charter a Maine State Bank That Accepts Deposits and 
Issues Gold Currency Celebrating Maine's Heritage
Reference to the Committee on Health Coverage, Insurance and Financial Services 
suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BRAKEY of Androscoggin.
Cosponsored by Senator: LIBBY of Cumberland, Representatives: BOYER of Poland, 
FREDERICKS of Sanford, MORRIS of Turner, SAMPSON of Alfred.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §12004-F, sub-§19 is enacted to read:
19.   
Maine State Bank, Board of Directors 
Expenses Only 
9-B MRSA §1253 
Sec. 2.  9-B MRSA c. 125 is enacted to read:
CHAPTER 125
MAINE STATE BANK
§1251. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings.
1. Bank. "Bank" means the Maine State Bank established in section 1252.
2. Blockchain-based cryptocurrency. "Blockchain-based cryptocurrency" means an 
encrypted data string that denotes a unit of currency and is monitored by a secure and 
decentralized database that records transactions.
3. Board. "Board" means the Board of Directors of the Maine State Bank under section 
1253.
§1252. Bank established
The Maine State Bank is established and is a public body corporate and politic and an 
instrumentality of the State.
§1253. Board; duties and powers
1. Members. The Board of Directors of the Maine State Bank, as established in Title 
5, section 12004-F, subsection 19, consists of 5 voting members appointed by the Governor 
and subject to approval by the joint standing committee of the Legislature having 
jurisdiction over appropriations and financial affairs and confirmation by the Senate. The 
Treasurer of State and the Commissioner of Administrative and Financial Services serve 
as ex officio nonvoting members of the board. The board shall oversee the operation, 
management and control of the bank in accordance with this chapter. The board shall 
designate one of its members as chair and shall determine the location of the bank's main 
office and maintain places of business of the bank.
2. Meetings; quorum. The board shall establish the frequency of regular board 
meetings in bylaws and public notice requirements for meetings through rulemaking under 
subsection 5. A special meeting may be called at any time upon notice by the Governor or 
by 3 members of the board. Three voting members constitute a quorum and may transact 
business and exercise all rights, duties and powers of the board.
3. Appointment of president; employment of officers and agents. The board shall 
appoint a person with extensive experience in banking as the president of the bank. The 
board may appoint and employ any subordinate officers, employees and agents that the 
board considers necessary and shall define the duties, designate the titles and fix the 
compensation of all those positions.
The board may designate the president or another officer or employee as its agent with 
respect to the functions of the bank, subject to the supervision, limitation and control of the 
board. The board may discharge any person appointed and employed under this subsection.
4. Compensation. Board members serve without compensation except that members 
may be reimbursed for travel expenses associated with their duties under this chapter.
5. Rulemaking. The board, through rulemaking, shall adopt bylaws and operating 
policies and shall enforce orders necessary to fulfill its functions under this section. Rules 
adopted under this subsection are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A.
§1254. Deposit of funds
The bank may accept deposits of private funds in all lawful forms of currency, 
including but not limited to United States dollars, internationally recognized money issued 
by foreign governments, gold and silver bullion issued by recognized mints and 
blockchain-based cryptocurrency.
§1255. Powers of the bank
The bank shall:
1. Currency exchange. Process exchanges between all currencies accepted for deposit 
in accordance with section 1254;
2. Gold coinage and bullion. Issue gold coinage and bullion minted by the State 
celebrating the State's heritage in various denominations by weight;
3. Cryptocurrency. Issue blockchain-based cryptocurrency tokens, redeemable from 
the bank in fixed amounts of physical gold, as long as the bank holds 100% reserves in the 
form of gold coinage and bullion minted by the State;
4. Deposits. Accept deposits in accordance with section 1254 from and transact 
business with any person legally authorized under the laws of the State to conduct business 
in the State, including but not limited to cannabis businesses;
5. Fees. Assess fees on transactions and storage to cover the costs of operation;
6. Reserves. Hold at least 100% reserves for all forms of fiat currency, precious metals 
and blockchain-based cryptocurrency authorized for deposit under section 1254; and
7. Other powers. Perform all acts and do all things necessary and proper to carry out 
the powers expressly granted in this chapter through or by means of its president, officers, 
agents or employees or by contracts with any person, firm or corporation.
§1256. Rulemaking; audit
1. Rule-making authority. The bank shall adopt rules to:
A. Ensure the safety and soundness of the bank that, to the extent possible, reflect 
applicable standards for safety and soundness set forth in 12 Code of Federal 
Regulations, Part 364 (2016);
B. Specify the bank's powers and permissible investments and activities consistent with 
section 1255;
C. Specify services that the bank may provide; and
D. Set requirements that the board considers necessary to administer the bank under 
this chapter.
Rules adopted under this subsection are major substantive rules as defined in Title 5, 
chapter 375, subchapter 2-A.
2. Audit. An independent auditor shall audit the accounts and financial affairs of the 
bank quarterly and confirm maintenance of 100% minimum reserve requirements.
§1257. Use of name; execution of instruments
All business of the bank must be conducted under the name of the Maine State Bank. 
Title to property pertaining to the operation of the bank must be obtained and conveyed in 
the name of the Maine State Bank.
Officers, employees or agents of and legal counsel to the bank may execute instruments 
on behalf of the bank when authorized by the board.
SUMMARY
This bill establishes the Maine State Bank and authorizes the bank to:
1. Accept deposits of funds in all lawful forms of currency, including but not limited 
to United States dollars, internationally recognized money issued by foreign governments, 
gold and silver bullion issued by recognized mints and blockchain-based cryptocurrency;
2. Process exchanges between all currencies accepted for deposit;
3. Issue gold coinage and bullion minted by the State celebrating the State's heritage in 
various denominations by weight;
4. Issue blockchain-based cryptocurrency in tokens as long as the bank holds 100% 
reserves in the form of gold coinage and bullion minted by the State;
5. Accept deposits from and transact business with any person legally authorized under 
the laws of the State to conduct business in the State, including but not limited to cannabis 
businesses; and
6. Assess fees on transactions and storage to cover the costs of operation.