Legislative Document No. 469 H.P. 353 House of Representatives, January 29, 2019
An Act To Authorize a General Fund Bond Issue To Provide Funding for Upgrades of Learning Spaces and Other Projects Funded by the School Revolving Renovation Fund
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered printed.
ROBERT B. HUNT Clerk
Presented by Representative FARNSWORTH of Portland. Cosponsored by Representatives: BRENNAN of Portland, COLLINGS of Portland, CROCKETT of Portland, CUDDY of Winterport, HARNETT of Gardiner, KORNFIELD of Bangor, McCREA of Fort Fairfield, RYKERSON of Kittery.
Printed on recycled paper 1 Preamble. Two thirds of both Houses of the Legislature deeming it necessary in 2 accordance with the Constitution of Maine, Article IX, Section 14 to authorize the 3 issuance of bonds on behalf of the State of Maine to provide funds as described in this 4 Act,
5 Be it enacted by the People of the State of Maine as follows:
6 Sec. 1. Authorization of bonds. The Treasurer of State is authorized, under the 7 direction of the Governor, to issue bonds in the name and on behalf of the State in an 8 amount not exceeding $50,000,000 in fiscal year 2019-20 and $50,000,000 in fiscal year 9 2020-21 for the purposes described in section 5 of this Act. The bonds are a pledge of the 10 full faith and credit of the State. The bonds may not run for a period longer than 10 years 11 from the date of the original issue of the bonds.
12 Sec. 2. Records of bonds issued; Treasurer of State. The Treasurer of State 13 shall ensure that an account of each bond is kept showing the number of the bond, the 14 name of the successful bidder to whom sold, the amount received for the bond, the date of 15 sale and the date when payable.
16 Sec. 3. Sale; how negotiated; proceeds appropriated. The Treasurer of State 17 may negotiate the sale of the bonds by direction of the Governor, but no bond may be 18 loaned, pledged or hypothecated on behalf of the State. The proceeds of the sale of the 19 bonds, which must be held by the Treasurer of State and paid by the Treasurer of State 20 upon warrants drawn by the State Controller, are appropriated solely for the purposes set 21 forth in this Act. Any unencumbered balances remaining at the completion of the project 22 in this Act lapse to the Office of the Treasurer of State to be used for the retirement of 23 general obligation bonds.
24 Sec. 4. Interest and debt retirement. The Treasurer of State shall pay interest 25 due or accruing on any bonds issued under this Act and all sums coming due for payment 26 of bonds at maturity.
27 Sec. 5. Disbursement of bond proceeds from General Fund bond issue. 28 The proceeds of the sale of the bonds authorized under this Act must be expended as 29 designated in the following schedule under the direction and supervision of the agencies 30 and entities set forth in this section. 31 MAINE MUNICIPAL BOND BANK
32 Provides $50,000,000 in fiscal year 2019-20 and $50,000,000 in fiscal year 2020-21 33 for deposit in the School Revolving Renovation Fund to be used to upgrade learning 34 spaces in school buildings and for other necessary repairs approved by the 35 Commissioner of Education pursuant to the Maine Revised Statutes, Title 30-A, 36 section 6006-F, subsection 3, paragraph A. 37 38 Total $100,000,000
Page 1 - 129LR0987(01)-1 1 Sec. 6. Contingent upon ratification of bond issue. Sections 1 to 5 do not 2 become effective unless the people of the State ratify the issuance of the bonds as set 3 forth in this Act.
4 Sec. 7. Appropriation balances at year-end. At the end of each fiscal year, all 5 unencumbered appropriation balances representing state money carry forward. Bond 6 proceeds that have not been expended within 10 years after the date of the sale of the 7 bonds lapse to the Office of the Treasurer of State to be used for the retirement of general 8 obligation bonds.
9 Sec. 8. Bonds authorized but not issued. Any bonds authorized but not issued 10 within 5 years of ratification of this Act are deauthorized and may not be issued, except 11 that the Legislature may, within 2 years after the expiration of that 5-year period, extend 12 the period for issuing any remaining unissued bonds for an additional amount of time not 13 to exceed 5 years.
14 Sec. 9. Referendum for ratification; submission at election; form of 15 question; effective date. This Act must be submitted to the legal voters of the State at 16 a statewide election held in the month of November following passage of this Act. The 17 municipal officers of this State shall notify the inhabitants of their respective cities, towns 18 and plantations to meet, in the manner prescribed by law for holding a statewide election, 19 to vote on the acceptance or rejection of this Act by voting on the following question: 20 "Do you favor a $50,000,000 bond issue for fiscal year 2019-20 and a 21 $50,000,000 bond issue for fiscal year 2020-21 to provide funds to the 22 School Revolving Renovation Fund for the purpose of providing funds to 23 public schools to upgrade learning spaces in school buildings and make 24 other necessary repairs?" 25 The legal voters of each city, town and plantation shall vote by ballot on this question 26 and designate their choice by a cross or check mark placed within a corresponding square 27 below the word "Yes" or "No." The ballots must be received, sorted, counted and 28 declared in open ward, town and plantation meetings and returns made to the Secretary of 29 State in the same manner as votes for members of the Legislature. The Governor shall 30 review the returns. If a majority of the legal votes are cast in favor of this Act, the 31 Governor shall proclaim the result without delay and this Act becomes effective 30 days 32 after the date of the proclamation.
33 The Secretary of State shall prepare and furnish to each city, town and plantation all 34 ballots, returns and copies of this Act necessary to carry out the purposes of this 35 referendum.
36 SUMMARY 37 The funds provided by this bond issue, in the amount of $50,000,000 in fiscal year 38 2019-20 and $50,000,000 in fiscal year 2020-21, will be used to provide funds to the 39 School Revolving Renovation Fund for the purpose of providing funds to public schools 40 to upgrade learning spaces in school buildings and make other necessary repairs.
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