An Act to Authorize a General Fund Bond Issue to Support Maine's
Maine Legislature, Session 132, LD 1739
Committee: Appropriations and Financial Affairs
Sponsors: PLUECKER
Amends: 36 MRSA §1122

Legislative Document
No. 1739
H.P. 1157
House of Representatives, April 22, 2025
An Act to Authorize a General Fund Bond Issue to Support Maine's 
Agricultural Sector, to Create an Agricultural Buildings Property 
Tax Exemption and to Direct the Department of Agriculture, 
Conservation and Forestry to Study Barriers to Its Financial 
Assistance Programs and Study the Potential for a Common 
Application for Those Programs
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative PLUECKER of Warren.
Cosponsored by Representatives: COOPER of Windham, CRAY of Palmyra, DILL of Old 
Town, FROST of Belgrade, JACKSON of Oxford.
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 $55,600,000 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.
DEPARTMENT OF AGRICULTURE, CONSERVATION AND FORESTRY
Maine Agriculture, Food and Forest Products Investment Fund
Provides funds to support the activities of the fund.
Total 
$25,000,000
Common application
Provides funds to create a common application for all of the department's financial 
assistance programs.
Total 
$600,000
FINANCE AUTHORITY OF MAINE
Dairy Improvement Fund
Provides funds to support the activities of the fund.
Total 
$5,000,000
Agricultural Marketing Loan Fund
Provides funds to support the activities of the fund.
Total 
$5,000,000
DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
Dirigo Business Incentives Program
Provides funds for agriculturally directed spending.
Total 
$10,000,000
Agricultural Buildings Property Tax Exemption Program
Provides funds to exempt certain agricultural buildings from property taxation for a 10-
year period.
Total 
$5,000,000
DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT
Business Recovery and Resilience Fund
Provides funds for a subaccount for the agricultural sector within the fund.
Total 
$5,000,000
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 $55,600,000 bond issue to support the agricultural sector 
in Maine?"
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.  36 MRSA §1122 is enacted to read:
§1122.  Exemption for certain agricultural buildings
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Agricultural or horticultural use" includes the activities of raising, breeding and 
boarding livestock and in connection with commercial horse boarding operations.
B.  "Commercial horse boarding operation" means an agricultural enterprise consisting 
of at least 7 acres and boarding at least 10 horses, regardless of ownership, that receives 
$10,000 or more in gross receipts annually from fees generated through the boarding 
of horses; through the production for sale of crops, livestock and livestock products; or 
through both such boarding and such production.  "Commercial horse boarding 
operation" does not include operations whose primary on-site function is horse racing.
C.  "Lands actively devoted to agricultural or horticultural use" means lands not less 
than 5 acres actually used in bona fide agricultural and horticultural production and 
operation carried on for profit.
D.  "Structure or building" includes:
(1)  A permanent or impermanent structure, including, but not limited to, a trellis 
or pergola, made of metal or wood or a permanent or impermanent building, 
including a greenhouse, or portion of such a structure or building used directly and 
exclusively in the raising and production for sale of agricultural and horticultural 
commodities or necessary for the storage of such commodities;
(2)  A structure or building used to provide housing for regular and essential 
employees and their immediate families who are primarily employed in connection 
with the operation of lands actively devoted to agricultural or horticultural use, but 
not a structure or building occupied as a residence by an applicant and the 
applicant's immediate family under subsection 3; 
(3)  A structure or building used as an indoor exercise arena exclusively for training 
and exercising horses in connection with the raising and production for sale of 
agricultural and horticultural commodities or in connection with a commercial 
horse boarding operation;
(4)  A structure or building used in the production of maple syrup; and
(5)  A structure or building used in the production of honey, royal jelly, bee pollen, 
propolis and beeswax, including a structure or building used for the storage of bees.
"Structure or building" does not include a structure or building used in the sale of maple 
syrup, honey or beeswax; a riding academy; or a dude ranch.
2.  Exemption allowed for certain agricultural buildings.  For property tax years 
beginning on or after April 1, 2026, a taxpayer is allowed an exemption from the tax 
imposed under this Part equal to any increase in the value of a structure or building essential 
to the operation of lands actively devoted to agricultural or horticultural use and actually 
used and occupied to carry out that operation that are constructed or reconstructed after 
January 1, 2026.  An exemption under this subsection continues only while the structure or 
building is actually used and occupied as provided in this subsection, but in no event for 
more than 10 years.
3.  Application.  A tax exemption may be granted only upon an application by the 
owner of a structure or building described in subsection 2 on a form prescribed by the 
bureau.  The applicant shall furnish information as the bureau may require.  An application 
must be filed with the assessor on or before April 1st within one year from the date of 
completion of the construction or reconstruction of the structure or building.
If the assessor is satisfied that the applicant is entitled to an exemption pursuant to this 
section, the assessor shall approve the application.
4.  Penalty.  If the land or a structure or building in agricultural or horticultural use is 
converted to a use other than an agricultural or horticultural use during the period of an 
exemption under this section, the structure or building for which the exemption under this 
section was granted is subject to taxation for the increase in the value of that structure or 
building for the period of the exemption.  The amount must be determined by the assessor 
by applying the applicable tax rate for each prior year of the period of exemption to the 
assessed valuation for that structure or building for each of those years.  This amount of tax 
must be levied and collected in the same manner and at the same time as other property 
taxes are levied and collected in the municipality.
5.  Rules.  The bureau may adopt rules to implement this section.  Rules adopted 
pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A.
PART C
Sec. C-1.  Commissioner of Agriculture, Conservation and Forestry to 
study barriers to financial assistance programs.  The Commissioner of Agriculture, 
Conservation and Forestry shall direct staff of the Department of Agriculture, Conservation 
and Forestry, Bureau of Agriculture, Food and Rural Resources to study the bureau's 
financial assistance programs for farmers and food producers to identify and eliminate 
barriers to accessing these programs and increase the effectiveness of these programs in 
addressing farmer and food producer needs.  The study must include an examination of the 
consolidation of the various grant programs within the department and whether 
consolidation of these programs into one office would reduce barriers to applicants or 
create efficiencies within the grant programs.  The study must examine the creation of a 
single common application for all of the department's financial assistance programs, how 
such an application could be actualized and whether efficiency would be found in the 
consolidation of the application processes.  The study must include at least 2 listening 
sessions with farmers or food producers.  These listening sessions must encompass topics 
related to the study, including, but not limited to, the following:
l. Program application materials, submission procedures and timelines for application 
retention by the department;
2. Contact procedures to inform applicants of new program opportunities;
3. Accessibility for beginning and emerging farmers and food producers, the expansion 
of education about department programs, partnerships with community organizations to 
reach new groups of farmers and food producers and identification of farmers and food 
producers who currently underuse department programs; and
4. Input on how the department can organize and consolidate its financial assistance 
offerings.
Sec. C-2.  Report.  By January 15, 2027, the Commissioner of Agriculture, 
Conservation and Forestry shall submit a report detailing the results of the study under 
section 1 and any recommended legislation to the joint standing committee of the 
Legislature having jurisdiction over agriculture, conservation and forestry matters, which 
may recommend legislation to the 133rd Legislature in 2027.
SUMMARY
This bill does the following.
1. The funds provided by the bond issue in Part A, in the amount of $55,600,000, will 
be used to support the agricultural sector in the State.
2. Part B establishes a property tax exemption for certain agricultural and horticultural 
structures and buildings.
3. Part C requires the Commissioner of Agriculture, Conservation and Forestry to direct 
staff of the Department of Agriculture, Conservation and Forestry, Bureau of Agriculture, 
Food and Rural Resources to study the bureau's financial assistance programs for farmers 
and food producers to identify barriers to accessing these programs and methods to 
eliminate those barriers and increase the effectiveness of the programs in addressing farmer 
and food producer needs.  The study must also include an examination of how to create a 
simple common application for all of the department's financial assistance programs.  The 
commissioner is required to submit a report by January 15, 2027 to the joint standing 
committee of the Legislature having jurisdiction over agriculture, conservation and forestry 
matters, which may report out legislation to the 133rd Legislature in 2027.