Bill Summary – FastDemocracy

130th MAINE LEGISLATURE
                  FIRST REGULAR SESSION-2021
Legislative Document                                                                  No. 169
S.P. 73                                                            In Senate, January 25, 2021
          An Act To Authorize a General Fund Bond Issue To Stimulate
          Investment in Innovation by Maine Businesses To Produce
          Nationally and Globally Competitive Products and Services
   Received by the Secretary of the Senate on January 21, 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 LUCHINI of Hancock.
Cosponsored by Senators: DILL of Penobscot, President JACKSON of Aroostook, MOORE of
Washington.
                                       Printed on recycled paper
     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:
     Sec. 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 $100,000,000 for the purposes described in section 5 of this Act.
 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. 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. 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 Act. Any unencumbered balances remaining at the completion of the project
 in this Act lapse to the Office of the Treasurer of State to be used for the retirement of
 general obligation bonds.
     Sec. 4. Interest and debt retirement. The Treasurer of State shall pay interest
 due or accruing on any bonds issued under this Act and all sums coming due for payment
 of bonds at maturity.
      Sec. 5. Disbursement of bond proceeds from General Fund bond issue. The
 proceeds of the sale of the bonds authorized under this Act must be expended as designated
 in the following schedule under the direction and supervision of the agencies and entities
 set forth in this section.
 ECONOMIC AND COMMUNITY
 DEVELOPMENT, DEPARTMENT OF
 Maine Technology Institute
     Provides funds for investment in research, development and commercialization in the
     State's 7 targeted technology sectors to be used for infrastructure, equipment and
     technology upgrades that enable organizations to gain and hold market share and to
     expand employment or preserve jobs. The funds must be made available through a
     competitive process to Maine-based public and private entities, leveraging other funds
     in a one-to-one ratio.
 Total                                                                         $100,000,000
39
      Sec. 6. Contingent upon ratification of bond issue. Sections 1 to 5 do not
40
 become effective unless the people of the State ratify the issuance of the bonds as set forth
41
 in this Act.
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     Sec. 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. 8. Bonds authorized but not issued. Any bonds authorized but not issued
 within 5 years of ratification of this Act 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. 9. Referendum for ratification; submission at election; form of
 question; effective date. This Act 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 Act by voting on the following question:
         "Do you favor a $100,000,000 bond issue to provide funds for investment
         in research, development and commercialization in the State to be used for
         infrastructure, equipment and technology upgrades that enable
         organizations to gain and hold market share and to expand employment or
         preserve jobs for Maine people, to be awarded through a competitive
         process to Maine-based public and private entities, leveraging other funds
         in a one-to-one ratio?"
     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 Act, the Governor shall
 proclaim the result without delay and this Act 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 Act necessary to carry out the purposes of this
 referendum.
                                        SUMMARY
     The funds provided by this bond issue, in the amount of $100,000,000, will be used to
 provide funds for investment in research, development and commercialization in the State's
 7 targeted technology sectors to be used for infrastructure, equipment and technology
 upgrades that enable organizations to gain and hold market share and to expand
 employment or preserve jobs, to be awarded through a competitive process to Maine-based
 public and private entities, leveraging other funds in a one-to-one ratio.
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