Written by Rep. Leila Percy | 27 May 2010

The June 8th election is drawing near. Here is the wording of the ballot questions as well as explanations.
Please remember to vote absentee if you cannot get to the polls on June 8th.
If you have any questions please email me: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Measures that will appear on the June 8, 2010 referendum ballot: (in the order they will appear on the ballot):
People's Veto
(veto of PL 2009, c. 382 "An Act To Implement Tax Relief and Tax Reform")
Question 1 (People's Veto):
"Do you want to reject the new law that lowers Maine's income tax and replaces that revenue by making changes to the sales tax?"

Question 2 (Bond Issue):
"Do you favor a $26,500,000 bond issue that will create jobs through investment in an off-shore wind energy demonstration site and related manufacturing to advance Maine's energy independence from imported foreign oil, that will leverage $24,500,000 in federal and other funds and for energy improvements at campuses of the University of Maine System, Maine Community College System and Maine Maritime Academy in order to make facilities more efficient and less costly to operate?"
Question 3 (Bond Issue):
"Do you favor a $47,800,000 bond issue to create jobs in Maine through improvements to highways, railroads and marine facilities, including port and harbor structures, and specifying the allocation of $4,000,000 of the transportation bond approved by voters in November 2009 to be used for capital rail purposes?"
Question 4 (Bond Issue):
"Do you favor a $23,750,000 bond issue to provide capital investment to stimulate economic development and job creation by making investments under the Communities for Maine's Future Program and in historic properties; providing funding for research and development investments awarded through a competitive process; providing funds for disbursements to qualifying small businesses; and providing grants for food processing for fishing, agricultural, dairy and lumbering businesses within the State and redevelopment projects at the Brunswick Naval Air Station that will make the State eligible for over $39,000,000 in federal and other matching funds?"
Question 5 (Bond Issue):
"Do you favor a $10,250,000 bond issue to improve water quality, support drinking water programs and the construction of wastewater treatment facilities and to assist farmers in the development of environmentally sound water sources that will leverage $33,250,000 in federal and other funds?"

Citizen's Guide to the Referendum Election
The Citizen's Guide includes a list of the referendum questions, the legislation each question represents, a summary of the intent and content of the legislation, an explanation of the significance of a "yes" or "no" vote, an analysis of the debt service on any bond issues, and an estimate of the fiscal impact of each referendum question on revenues, appropriations and allocations.
Citizen's Guide (pdf version) Citizen's Guide (word doc.)
Treasurer's Statement

The State of Maine borrows money by issuing bonds. Bonding is a multi-step process which can generally be described as follows:

1. The Legislature decides what it believes should be funded from bond proceeds (money acquired from the sale of bonds) and puts the bonds out for voter approval as required by the State Constitution.

2. The voters, at a statewide election, approve or reject each bond proposal.

3. The State Treasurer issues bonds to pay for those projects approved by the voters or otherwise authorized by the Constitution. A person or institution purchasing the bonds is, in effect, loaning the State of Maine money in return for interest payments during the term of the bond.

4. The Treasurer distributes the money acquired from the sale of bonds in accordance with the legislation authorizing bonds for approved projects.

5. The Treasurer makes payments twice yearly to bond purchasers until the debt is retired.

The following is a summary of the general obligation bond debt of the State of Maine as of
March 31, 2010.

Bonds Outstanding (Issued and Maturing through 2019):

Principal Interest Total
Highway Fund $119,620,000 $ 23,260,812 $142,880,812
General Fund $380,830,000 $ 50,939,949 $431,769,949
Total $500,450,000 $ 74,200,761 $574,650,761

3/31/2010 Unissued Bonds Authorized by Voters: $ 112,268,667

Unissued Bonds Authorized by the Constitution and Laws: $ 99,000,000
_____________

Total Authorized but Unissued Bonds: $ 211,268,667


The total amounts that must be paid in the present fiscal year for
bonded debt already outstanding (for FY2010): $106,976,462.09

If the bonds submitted here are approved by voters and issued for the full statutory period authorized, an estimate of the total interest and principal that may reasonably be expected to be paid is $135,104,250, representing $108,300,000 in principal and $26,804,250 in interest.

David Lemoine, Treasurer of State


Question 2: Bond Issue

Do you favor a $26,500,000 bond issue that will create jobs through investment in an off-shore wind energy demonstration site and related manufacturing to advance Maine's energy independence from imported foreign oil, that will leverage $24,500,000 in federal and other funds and for energy improvements at campuses of the University of Maine System, Maine Community College System and Maine Maritime Academy in order to make facilities more efficient and less costly to operate?


STATE OF MAINE
Chapter 414

Part D
Public Laws of 2009
Approved June 16, 2009

An Act To Authorize Bond Issues for Ratification by the Voters for the November 2009 and
June and November 2010 Elections

As amended by
Chapter 645

Part C
Public Laws of 2009
Approved April 12, 2010

An Act To Authorize Bond Issues for Ratification by the Voters for the
June 2010 Election and November 2010 Election

PART D

Sec. D-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 $26,500,000 for the purposes described in section 6 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. At the discretion of the Treasurer of State, with the approval of the Governor, any issuance of bonds may contain a call feature.

Sec. D-2. Records of bonds issued kept by Treasurer of State. The Treasurer of State shall keep an account of each bond 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. D-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 debt service account established for the retirement of these bonds.

Sec. D-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. D-5. Disbursement of bond proceeds. The proceeds of the bonds must be expended as set out in this Part under the direction and supervision of the University of Maine System, the Maine Maritime Academy and the Maine Community College System.

Sec. D-6. Allocations 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.



UNIVERSITY OF MAINE SYSTEM

University of Maine System

Provides funds for energy and infrastructure upgrades at all campuses of the University of Maine System. $9,500,000

MAINE COMMUNITY COLLEGE SYSTEM

Maine Community College System

Provides funds for energy and infrastructure upgrades at all campuses of the Maine Community College System. $5,000,000

MAINE MARITIME ACADEMY

Maine Maritime Academy

Provides funds for energy and infrastructure upgrades at the Maine Maritime Academy. $1,000,000

UNIVERSITY OF MAINE SYSTEM

Maine Marine Wind Energy Demonstration Site Fund

Provides funds for research, development and product innovation associated with developing one or more ocean wind energy demonstration sites. It also provides funding for robotics equipment to accelerate wind energy components manufacturing in the State. The funds will leverage $24,500,000 in other funds. $11,000,000


Sec. D-7. Contingent upon ratification of bond issue. Sections 1 to 6 do not become effective unless the people of the State ratify the issuance of the bonds as set forth in this Part.

Sec. D-8. 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 General Fund debt service.




Sec. D-9. Bonds authorized but not issued. Any bonds authorized but not issued, or for which bond anticipation notes are 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 or bond anticipation notes for an additional amount of time not to exceed 5 years.

Sec. D-10. 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 June 2010 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 $26,500,000 bond issue that will create jobs through investment in an off-shore wind energy demonstration site and related manufacturing to advance Maine's energy independence from imported foreign oil, that will leverage $24,500,000 in federal and other funds and for energy improvements at campuses of the University of Maine System, Maine Community College System and Maine Maritime Academy in order to make facilities more efficient and less costly to operate?"

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 H

Sec. H-1. Establishment of ocean wind energy demonstration sites

1. Fund established. The Maine Marine Wind Energy Demonstration Site Fund is established to provide the basic investment necessary to obtain matching funds and competitive grants and other funding from federal, state and private sources for research, development and product innovation associated with developing one or more ocean wind energy demonstration sites.

2. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A. "Fund" means the Maine Marine Wind Energy Demonstration Site Fund.

B. "Research and development" means applied engineering and scientific research and related commercial development conducted by the University of Maine, acting on behalf of the University of Maine System and its employees and students in the target areas and in conjunction with federal, state and local partners from the private, nonprofit and government sectors.

C. "Demonstration sites" means geographic locations within the jurisdiction of this State where applied research and development is considered most likely to produce significant benefits to the people and economy of the State.

3. Administration of fund. The University of Maine, acting on behalf of the Board of Trustees of the University of Maine System, shall administer the fund. The university may utilize the assets of the fund to carry out and effectuate the purposes, duties and responsibilities of this Part, including, but not limited to:

A. To conduct siting studies for offshore wind sites, giving first priority to developments in state waters but also consider siting studies for developments in federal waters that could provide renewable and sustainable power for the State or provide significant economic opportunity. The siting studies will include consideration of wind resource, bathymetry, geophysical conditions, transmission and distribution infrastructure, engineering, environmental effects, multi-use potential, identification of exclusion zones and cost of energy from each site;

B. Using siting information collected under subsection 1, the University of Maine, acting on its own behalf or in conjunction with partners in the private, nonprofit or government sectors, may apply for all federal, state and local approvals necessary to develop a demonstration site to be used for research and development to evaluate new technologies and monitor environmental impacts. The University of Maine will construct and operate this site in a manner consistent with applicable federal, state and local laws and related licenses, permits or other authorizations. The university may contract, subcontract or collaborate with another public or private entity for any activity authorized by this subsection;

C. To design, prototype and test offshore structures composites components that could be manufactured by companies in this State; and

D. To provide a report to the Governor and the Legislature by March 1, 2010 setting forth:

(1) The operations and accomplishments of the fund during the most recent fiscal year;

(2) The results of monitoring of the effects of any structures placed in the waters on the environment and fish and wildlife, including marine mammals; and

(3) The assets and liabilities of the fund at the end of the most recent fiscal year.

Sec. H-2. Appropriations and allocations. The following appropriations and allocations are made.

UNIVERSITY OF MAINE SYSTEM, BOARD OF TRUSTEES OF THE

Maine Marine Wind Energy Demonstration Site Fund N065

Initiative: Establishes a base allocation for the Maine Marine Wind Energy Demonstration Site Fund for funds received for research, development and product innovation associated with developing one or more ocean wind energy demonstration sites.


OTHER SPECIAL REVENUE FUNDS 2009-10 2010-11
All Other $500 $500
OTHER SPECIAL REVENUE FUNDS TOTAL $500 $500


Sec. H-3. Contingent effective date. This Part takes effect only if the General Fund bond issue proposed in Part D is approved by the voters of this State.


Intent and Content
Prepared by the Office of the Attorney General

This Act would authorize the State to issue bonds in an amount not to exceed $26,500,000, for projects as described below. The bonds would run for a period not longer than 10 years from the date of issue and would be backed by the full faith and credit of the State.

Proceeds of the sale of bonds would be used to upgrade infrastructure and improve energy efficiency at all campuses of the following institutions, up to the following amounts:

$9,500,000 for the University of Maine System;
$5,000,000 for the Maine Community College System; and
$1,000,000 for the Maine Maritime Academy

The remaining $11,000,000 of the bond proceeds would be placed in the Maine Marine Wind Energy Demonstration Site Fund created by the Legislature to provide funds for research, development and product innovation associated with developing one or more ocean wind energy demonstration sites. Funds could be used to conduct siting studies for offshore wind sites, and to design, develop prototypes for, and test offshore structures, composites and components that could be manufactured in Maine. This Fund would be administered by the University of Maine. It is anticipated that funds from this portion of the bond proceeds would leverage $24,500,000 in additional funds from other sources.

If approved, the bond authorization would take effect 30 days after the Governor's proclamation of the vote.

A "YES" vote favors authorizing the $26,500,000 bond issue to finance the above activities.

A "NO" vote opposes the bond issue in its entirety.

Debt Service
Prepared by the Office of the Treasurer

Total estimated life time cost is $33,058,750 representing $26,500,000 in principal and $6,558,750 in interest (assuming interest at 4.5% over 10 years).


Fiscal Impact Statement
Prepared by the Office of Fiscal and Program Review

This bond issue has no significant fiscal impact other than the debt service costs identified above.


Public Comments

No public comments were filed in support of or in opposition to Question 2.










































Question 3: Bond Issue

Do you favor a $47,800,000 bond issue to create jobs in Maine through improvements to highways, railroads and marine facilities, including port and harbor structures, and specifying the allocation of $4,000,000 of the transportation bond approved by voters in November 2009 to be used for capital rail purposes?


STATE OF MAINE
Chapter 645

PART A
Public Laws of 2009
Approved April 12, 2010

An Act To Authorize Bond Issues for Ratification by the Voters for the
June 2010 Election and November 2010 Election

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 $47,800,000 for the purposes described in section 6 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. At the discretion of the Treasurer of State, with the approval of the Governor, any issuance of bonds may contain a call feature.

Sec. A-2. Records of bonds issued kept by Treasurer of State. The Treasurer of State shall keep an account of each bond 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 debt service account established for the retirement of these 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. The proceeds of the bonds must be expended as set out in this Part under the direction and supervision of the Department of Transportation.

Sec. A-6. Allocations 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.

(see next page)











DEPARTMENT OF TRANSPORTATION

General Fund

Provides funds for state highway reconstruction and paving. $24,800,000

Provides funds for railroads, including $7,000,000 to purchase and preserve approximately 240 miles of railroad track in Aroostook County currently owned and operated by the Montreal, Maine and Atlantic Railway, which track upon acquisition by the State must be operated by a rail operator chosen through a competitive process, in consultation with shippers and other stakeholders of the track; $5,000,000 to purchase a portion of rail line and to make other improvements related to improved freight rail service and preparation for future passenger rail service to Lewiston and Auburn; and $4,000,000 for repairs and improvements of the portions of the Mountain Division Railroad owned by the State. $16,000,000



Provides funds for marine-related improvements, including $6,500,000 for the Ocean Gateway deep water pier and $500,000 for challenge grants from the Small Harbor Improvement Program. $7,000,000



Sec. A-7. Allocation from approved bond issue. The $4,000,000 of the General Fund bond issue authorized by Public Law 2009, chapter 414, Part A, section 6 allocated for railroad purposes and approved by the voters of the State at referendum in November 2009 is specifically allocated to capital rail purposes including the purchase and preservation of railroad tracks in Aroostook County and Penobscot County.

Sec. A-8. Contingent upon ratification of bond issue. Sections 1 to 7 do not become effective unless the people of the State ratify the issuance of the bonds as set forth in this Part.

Sec. A-9. 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 General Fund debt service.

Sec. A-10. Bonds authorized but not issued. Any bonds authorized but not issued, or for which bond anticipation notes are 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 or bond anticipation notes for an additional amount of time not to exceed 5 years.

Sec. A-11. 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 June 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 $47,800,000 bond issue to create jobs in Maine through improvements to highways, railroads and marine facilities, including port and harbor structures, and specifying the allocation of $4,000,000 of the transportation bond approved by voters in November 2009 to be used for capital rail purposes?"

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.

Intent and Content
Prepared by the Office of the Attorney General

This Act would authorize the State to issue bonds in an amount not to exceed $47,800,000, to be administered by the Department of Transportation for the activities described below.

Highways: Proceeds of the sale of bonds in the amount of $24,800,000 would be used for reconstruction and paving of state highways.

Railroads: The state would use $7,000,000 of the bond proceeds towards the purchase and preservation of approximately 240 miles of railroad track in Aroostook County currently owned by the Montreal, Maine and Atlantic Railway. The railway would be operated by a rail operator selected by the state through a competitive process, in consultation with shippers and other stakeholders of the track.

Bond proceeds in the amount of $5,000,000 would be used to purchase a portion of rail line and to make improvements related to improving freight rail service and preparing for passenger rail service to Lewiston and Auburn. Another $4,000,000 would be used to repair and improve portions of the Mountain Division Railroad that is already owned by the state and is located between Windham and Fryeburg.

In addition to the funds authorized by this bond issue, $4,000,000 of the previous bond issue allocated for railroad purposes and approved by the voters in November 2009 would be specifically allocated to the purchase and preservation of railroad tracks in Aroostook and Penobscot counties.

Marine facilities: The remaining $7,000,000 in bond proceeds would be used for marine-related improvements, including specifically: $6,500,000 to construct a deep water pier at the Ocean Gateway facility in Portland to accommodate large vessels such as cruise ships; and $500,000 for the Small Harbor Improvement Program, administered by the Department of Transportation, to provide matching grants to coastal communities for improvements to municipally owned marine facilities such as boat ramps, piers and wharfs.

The bonds would run for a period not longer than 10 years from the date of issue and would be backed by the full faith and credit of the State. If approved, the bond authorization would take effect 30 days after the Governor's proclamation of the vote.

A "YES" vote favors authorizing the $47,800,000 bond issue to finance the above activities.

A "NO" vote opposes the bond issue in its entirety.

Debt Service
Prepared by the Office of the Treasurer

Total estimated life time cost is $59,630,500 representing $47,800,000 in principal and $11,830,500 in interest (assuming interest at 4.5% over 10 years).

Fiscal Impact Statement
Prepared by the Office of Fiscal and Program Review

This bond issue has no significant fiscal impact other than the debt service costs identified above.

Public Comments

No public comments were filed in support of or in opposition to Question 3.

Question 4: Bond Issue

Do you favor a $23,750,000 bond issue to provide capital investment to stimulate economic development and job creation by making investments under the Communities for Maine's Future Program and in historic properties; providing funding for research and development investments awarded through a competitive process; providing funds for disbursements to qualifying small businesses; and providing grants for food processing for fishing, agricultural, dairy and lumbering businesses within the State and redevelopment projects at the Brunswick Naval Air Station that will make the State eligible for over $39,000,000 in federal and other matching funds?


STATE OF MAINE
Chapter 414

Part B
Public Laws of 2009
Approved June 16, 2009

An Act To Authorize Bond Issues for Ratification by the Voters for the November 2009 and
June and November 2010 Elections

As amended by
Chapter 645

Part I
Public Laws of 2009
Approved April 12, 2010

An Act To Authorize Bond Issues for Ratification by the Voters for the
June 2010 Election and November 2010 Election

PART B

Sec. B-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 $23,750,000 for the purposes described in section 6 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. At the discretion of the Treasurer of State, with the approval of the Governor, any issuance of bonds may contain a call feature.

Sec. B-2. Records of bonds issued kept by Treasurer of State. The Treasurer of State shall keep an account of each bond 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. B-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 debt service account established for the retirement of these bonds.

Sec. B-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. B-5. Disbursement of bond proceeds. The proceeds of the Historic Preservation Revolving Fund must be expended, under the direction and supervision of the Maine Historic Preservation Commission, for acquisition and resale subject to preservation easements or covenants of significant endangered historic buildings by qualified nonprofit historic preservation organizations in the State. The proceeds of the bonds must be expended as set out in this Part under the direction and supervision of the Department of Economic and Community Development and Finance Authority of Maine.
Sec. B-6. Allocations 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.


MAINE HISTORIC PRESERVATION COMMISSION

Establishes a revolving fund for the purpose of acquiring significant historic properties. $1,250,000

DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

Provides funds to make investments under the Communities for Maine's Future Program in competitive community and economic revitalization projects, which must be matched with at least $3,500,000. $3,500,000

Maine Technology Institute

Provides funds for research and development and commercialization as prioritized by the Office of Innovation's current Science and Technology Action Plan for Maine. The funds must be allocated to environmental and renewable energy technology, biomedical and biotechnology, aquaculture and marine technology, composite materials technology, advanced technologies for forestry and agriculture, information technology and precision manufacturing technology through a competitive process and must be awarded to Maine-based public and private institutions and must be awarded to leverage matching funds of at least $3,000,000. $3,000,000

Brunswick Naval Air Station Redevelopment

Provides for redevelopment projects at the Brunswick Naval Air Station, including the rehabilitation of buildings, federal Americans with Disabilities Act and fire code compliance and other site improvements, including up to $4,750,000 for the development of a higher education engineering and economic development center. These funds will leverage $32,500,000 in federal funds. $8,000,000


FINANCE AUTHORITY OF MAINE

Provides grants for food processing for fishing, agricultural, dairy and lumbering industries within the State. $1,000,000

Economic Recovery Loan Program $3,000,000

Small Enterprise Growth Fund

Provides funds for disbursements to qualifying small businesses in the State seeking to pursue eligible projects. $4,000,000


Sec. B-7. Contingent upon ratification of bond issue. Sections 1 to 6 do not become effective unless the people of the State ratify the issuance of the bonds as set forth in this Part.

Sec. B-8. 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 General Fund debt service.

Sec. B-9. Bonds authorized but not issued. Any bonds authorized but not issued, or for which bond anticipation notes are 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 or bond anticipation notes for an additional amount of time not to exceed 5 years.

Sec. B-10. 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 June 2010 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 $23,750,000 bond issue to provide capital investment to stimulate economic development and job creation by making investments under the Communities for Maine's Future Program and in historic properties; providing funding for research and development investments awarded through a competitive process; providing funds for disbursements to qualifying small businesses; and providing grants for food processing for fishing, agricultural, dairy and lumbering businesses within the State and redevelopment projects at the Brunswick Naval Air Station that will make the State eligible for over $39,000,000 in federal and other matching funds?"

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 F

Sec. F-1. Rulemaking. The Finance Authority of Maine shall establish rules to administer funds for food processing for the fishing and agricultural industries in this State for grants. Rules adopted pursuant to this section are routine technical rules as defined in the Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A.

Sec. F-2. Contingent effective date. This Part takes effect only if the General Fund bond issue proposed in Part B is approved by the voters of the State.

PART G

Sec. G-1. 5 MRSA §13056-D is enacted to read:

§13056-D. Communities for Maine's Future Program

1. Program established; administration. The Communities for Maine's Future Program, referred to in this section as "the program," is established within the department to assist and encourage communities to revitalize and to promote community development and enhance projects. The department shall administer the program to provide funding for the rehabilitation, revitalization and enhancement of downtowns and village centers and main streets in the State. All funds received for this program must be deposited into the Communities for Maine's Future Fund established in subsection 7.

2. Review panel. The Community for Maine's Future Review Panel, referred to in this section as "the panel," is established to evaluate proposals and determine funding under the program. The panel consists of:

A. The commissioner;

B. The Director of the Maine Historic Preservation Commission;

C. The Director of the State Planning Office within the Executive Department; and

D. Four members of the public, one with experience in economic and community development, one with experience in historic preservation, one with experience in downtown revitalization and one with experience in tourism development and promotion. The first 2 of these members are appointed by the President of the Senate and the remaining 2 by the Speaker of the House.

3. Review process. The panel shall review proposals for funding under the program in accordance with this subsection.

A. The panel shall establish the deadline by which proposals must be postmarked and received.

B. Department staff shall undertake the initial review and preliminary scoring of proposals.

C. A subcommittee appointed by the panel to score proposals shall review and determine the final score for the proposals.

D. A subcommittee appointed by the panel to nominate finalists shall review all of the proposals, identify issues for full review and discussion by the panel and recommended project finalists to the full panel for detailed review and consideration.

E. The panel shall review all the proposals submitted, select the finalists and allocate funding.

In reviewing proposals, the panel shall use the scoring system established in subsection 5.

4. Applicant requirements. An applicant for funding under this section must:

A. Be a city or town; and

B. Demonstrate the capacity to undertake the project with a reasonable prospect of bringing it to a successful conclusion. In assessing an applicant's ability to meet the requirements of this paragraph, the panel may consider all relevant factors, including but not limited to the applicant's level of debt; fund-raising ability; past economic and community development activities; grants from federal, state or local sources; previous historic preservation, rehabilitation or enhancement activity; organizational history; scope of economic or revitalization vision; and evidence of success in previous efforts.

5. Scoring system. The department and the panel shall develop a scoring system for use by the panel in evaluating proposals under this section. The scoring system must be designed to identify those projects that are most aligned with the State's economic and community development and historic preservation and enhancement priorities. The scoring system must assign points according to the relative value of:

A. The economic significance of the proposed project to the immediate vicinity and to the State as a whole;

B. The level of compatibility with the historic community character;

C. The value of the proposed project with respect to historic preservation and rehabilitation;

D. The value of the proposed project with respect to downtown revitalization;

E. The value of the proposed project to encourage or accomplish sustainable, mixed-use, pedestrian-oriented or transit-oriented development;

F. The extent to which the proposed project meets or exceeds minimum energy efficiency standards, uses green building practices or materials, or both;

G. The value of the proposed project with respect to tourism promotion and development;

H. The degree of community support for the proposed investment;

I. The extent to which the proposed project involves other preservation partnerships and meets multiple criteria within this section;

J. The match provided by the applicant; and

K. Related public funding sources supporting the project.

6. Additional criteria. In addition to evaluating the proposals using the scoring system established in subsection 5, the panel shall also consider criteria in reviewing a proposal:

A. The level to which a proposal supports the open space or recreation objectives, or both, of a local comprehensive plan;

B. The extent to which a project is consistent with an adopted comprehensive plan that meets the standards of the laws governing growth management pursuant to Title 30-A, chapter 187;

C. The extent to which a project is consistent with an existing strategic plan for downtown or village center revitalization;

D. The current and anticipated demand for use and diversity of uses of this site;

E. The extent to which the project is consistent with any relevant regional economic development plan or other relevant regional plan; and

F. Any additional benefits that contribute to the character of the town or region in which the project is situated, including the rehabilitation or renovation of mills and other buildings in the community.

7. Communities for Maine's Future Fund created. The Communities for Maine's Future Fund, known as "the fund," is established to provide funding for the rehabilitation, revitalization and enhancement of downtowns and village centers and main streets in the State. The fund is dedicated, nonlapsing fund, and all revenues deposited in the fund remain in the fund and must be disbursed in accordance with this section.

8. Rules. The department 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.

Sec. G-2. 5 MRSA §13056-E is enacted to read:

§13056-E. Assistance from Communities for Maine's Future Fund

1. Application for downtown improvement or asset grants. In addition to the other forms of financial assistance available, an eligible municipality or group of municipalities may apply for a downtown and community development grant from the Communities for Maine's Future Fund established in section 13056-D, subsection 7 and referred to in this section "the fund," the proceeds of which must be used to acquire, design, plan, construct, enlarge, repair, protect or enhance downtown improvements or assets. The department may prescribe an application form or procedure for an eligible municipality or group of municipalities to apply for a grant under this section. The application must include all information necessary for the purpose of implementing this section.

2. Eligibility certification. In addition to criteria established in section 13056-D:

A. The applicant must certify that it has secured all permits, licenses and approvals necessary to construct the improvements to be financed by the grant;

B. The department must affirm that the applicant has met the conditions of this paragraph.

(1) A municipality is eligible to receive a grant if that municipality has adopted a growth management program certified under Title 30-A, section 4347-A that includes a capital improvement program composed of:

(a) An assessment of all public facilities and services, including, but not limited to, roads and other transportation facilities, sewers, schools, parks and open space, fire departments and police departments;

(b) An annually reviewed 5-year plan for the replacement and expansion of existing public facilities or the construction of such new facilities as are required to meet expected growth and economic development. The plan must include projections of when and where those facilities will be required; and

(c) An assessment of the anticipated costs for replacement, expansion or construction of public facilities, an identification of revenue sources available to meet these costs and recommendations for meeting costs required to implement the plan.

Subject to the limitations of this subsection, 2 or more municipalities that each meet the requirements of divisions (a), (b) or (c) may jointly apply for assistance under this section; and

C. The department must affirm that the applicant has met the conditions of this paragraph. A municipality is eligible to receive a downtown improvement grant if that municipality has:

(1) Shown broad-based support for downtown revitalization;

(2) Established a comprehensive downtown revitalization work plan, including a definition and a map of the affected area;

(3) Developed measurable goals and objectives;

(4) Demonstrated a historic preservation ethic;

(5) Developed the capacity to report on the progress of the downtown program; and

(6) Established the ability and willingness to support integrated marketing efforts for retailers, services, activities and events.

3. Criteria; conditions for downtown village center grants. The department shall develop criteria and conditions for the award of downtown and village center grants to eligible municipalities subject to the requirements of this section, including:

A. Basic criteria for redevelopment or revitalization of a downtown growth area as defined under Title 30-A, section 4301, subsection 6-C or village;

B. A preference for capital investment projects that provide substantial regional benefits;

C. The adoption of other criteria as the department determines necessary to ensure that grants made under this section maximize the ability of municipalities to accommodate planned growth and economic development;

D. Consistency with the municipality's comprehensive plan or local growth management program;

E. Leveraging of other private, federal or local dollars; and

F. Economic gain to the community, including tax income and jobs created.

4. Coordination. The department shall coordinate the grants made under this section with community assistance loans and grants administered by the department and with other state assistance programs designed to accomplish similar objectives, including those administered by the Department of Education, the Department of Transportation, the Executive Department, State Planning Office, the Finance Authority of Maine, the Maine State Housing Authority, the Maine Historic Preservation Commission, the Department of Administrative and Financial Services, the Department of Conservation and the Department of Environmental Protection.

5. Report to the Legislature. The department shall report to the joint standing committee of the Legislature having jurisdiction over economic development matters no later than January 1st of each odd-numbered year on the grants program. The department may make any recommendations it finds necessary to more effectively achieve the purposes of this section, including the appropriation of any necessary additional funds.

Sec. G-3. 5 MRSA §13056-F is enacted to read:

§13056-F. Historic Preservation Revolving Fund

1. Fund established; administration. The Historic Preservation Revolving Fund, referred to in this section as "the revolving fund," is established within the Maine Historic Preservation Commission, referred to in this section as "the commission," in order to provide funds to qualified nonprofit historic preservation organizations in the State for the purpose of acquisition of endangered historic properties of local, state or national significance, as determined by the commission, for resale to new owners who agree to preserve, rehabilitate or restore the properties as necessary, subject to preservation easements or covenants held by the qualified organization. The commission may provide funds to the qualified organization for purposes outlined in subsection 4.

All funds received must be deposited into the revolving fund.

2. Review process. The commission shall review proposals for acquisition of historic properties by qualified organizations with funds from the revolving fund in accordance with this subsection.

3. Applicant requirements. An applicant for funding under this section must be a qualified nonprofit historic preservation organization. For purposes of this section, "qualified nonprofit historic preservation organization" or "qualified organization" means a nonprofit preservation or historical organization whose purposes include preservation of historic property or a governmental body. A qualified organization must also demonstrate previous historic preservation, rehabilitation or acquisition activity; availability of staff with demonstrated professional training and experience in administration of historic preservation programs; and familiarity with preservation standards and with acquisition and resale of historic property.

The qualified organization must also demonstrate the capacity to undertake the project with a reasonable prospect of bringing it to a successful conclusion. In assessing an applicant's ability to meet the requirements of this subsection, the commission may consider all relevant factors, including but not limited to the applicant's organizational purpose; organizational history; previous historic preservation, rehabilitation or acquisition activity; scope of economic or revitalization vision; and evidence of success in previous efforts.

4. Revolving fund expenditures. Payment from the revolving fund is made by the commission to qualified nonprofit historic preservation organizations for the purpose of preservation of significant endangered historic properties through acquisition and resale. Payments may include all costs associated with such an acquisition and carrying costs, as well as stabilization, rehabilitation and completion of a conditions study by the qualified organization for approval by the commission and may also include a fee for establishing a preservation easement or covenant to be held by the qualified organization. When possible, the qualified organization shall seek to secure the qualified property by option to be executed at closing to minimize carrying costs. The qualified organization shall seek to resell the property at fair market value to a new private, nonprofit or public owner who agrees to preserve, rehabilitate or restore the property as provided in the easement or covenant. Net proceeds from the resale of properties must be returned to the revolving fund within the commission. Funds returned to the revolving fund are to be used exclusively for the acquisition of additional historic properties, except that no more than 5% of the fund balance may be used by the commission to fund administration of the program by cooperating organizations.

5. Evaluation criteria. The commission shall evaluate proposals under this section. The commission shall seek to fund those proposals that best meet its historic preservation priorities for the State and region and that support its economic and community development and enhancement priorities and shall evaluate properties in such proposals relative to:

A. The level of historic or architectural significance;

B. The value with respect to historic preservation and rehabilitation;

C. The degree to which the property is endangered;

D. The economic significance to the immediate vicinity and to the State;

E. The value with respect to downtown revitalization, open space conservation or other public purposes;

F. The availability at fair market value;

G. The degree to which the property is available below fair market value;

H. The potential marketability;

I. The feasibility of rehabilitation or restoration and reuse;

J. The value of the proposed property with respect to tourism promotion and development;

K. The degree of community support; and

L. The extent to which the proposed project involves partnerships or meets multiple criteria.

6. Rules. The commission may adopt rules to implement this section. Rules adopted to implement this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.

Sec. G-4. Appropriations and allocations. The following appropriations and allocations are made.


ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF
Communities for Maine's Future Fund N064
Initiative: Establishes base allocations for the Communities for Maine's Future Program to assist and encourage communities to revitalize and to promote community development and enhance projects.

OTHER SPECIAL REVENUE FUNDS 2009-10 2010-11
All Other $500 $500
OTHER SPECIAL REVENUE FUNDS TOTAL $500 $500

ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF
DEPARTMENT TOTALS 2009-10 2010-11

OTHER SPECIAL REVENUE FUNDS $500 $500
DEPARTMENT TOTAL - ALL FUNDS $500 $500


HISTORIC PRESERVATION COMMISSION, MAINE
Historic Preservation Revolving Fund N063
Initiative: Establishes base allocations for the Historic Preservation Revolving Fund in order to provide funds to qualified nonprofit historic preservation organizations to acquire significant historic properties.

OTHER SPECIAL REVENUE FUNDS 2009-10 2010-11
All Other $500 $500
OTHER SPECIAL REVENUE FUNDS TOTAL $500 $500

HISTORIC PRESERVATION COMMISSION, MAINE
DEPARTMENT TOTALS 2009-10 2010-11

OTHER SPECIAL REVENUE FUNDS $500 $500
DEPARTMENT TOTAL - ALL FUNDS $500 $500

SECTION TOTALS 2009-10 2010-11

OTHER SPECIAL REVENUE FUNDS $1,000 $1,000
SECTION TOTAL - ALL FUNDS $1,000 $1,000


Sec. G-5. Contingent effective date. This Part takes effect only if the General Fund bond issue proposed in Part B is approved by the voters of the State.



Intent and Content
Prepared by the Office of the Attorney General

This Act would authorize the State to issue bonds in an amount not to exceed $23,750,000 for the activities described below.

Proceeds of the sale of bonds in the amount of $1,250,000 would be placed in a new Historic Preservation Revolving Fund to be administered by the Maine Historic Preservation Commission. The fund would be used to help qualified nonprofit historic preservation organizations purchase significant historic properties and then re-sell those properties at fair market value to new owners (private, nonprofit or public), subject to an easement or covenant requiring the new owner to preserve, and rehabilitate or restore the properties. Net proceeds from the resale would be repaid to the Fund.

Proceeds of the sale of bonds in the amount of $3,500,000 would be placed in the Communities for Maine's Future Fund, to be administered by the Department of Economic and Community Development and used to provide matching grants to cities and towns for projects to revitalize, rehabilitate and enhance downtowns, village centers and main streets in the state. Statutory criteria and procedures for administering this fund and the Historic Preservation Revolving Fund would take effect if the bond issue is approved.

The Maine Technology Institute would administer $3,000,000 of the bond proceeds to provide matching grants for research and development and commercialization projects, in accordance with priorities established by the Office of Innovation in the current Science and Technology Action Plan for Maine. The funds would be allocated to projects in the areas of environmental and renewable energy technology, biomedical and biotechnology, aquaculture and marine technology, composite materials technology, advanced technologies for forestry and agriculture, information technology, and precision manufacturing technology to public and private entities in Maine, through a competitive process, and recipients would be required to match these State dollars with an equivalent amount of federal or private funds.

The Department of Economic and Community Development would use another $8,000,000 of the bond proceeds for redevelopment projects at the Brunswick Naval Air Station, including rehabilitating buildings to comply with fire codes and the Americans with Disabilities Act, and other site improvements. Up to $4,750,000 of these funds could be used to develop a higher education engineering and economic development center at the site. It is anticipated that these bond funds will leverage $32,500,000 in federal funds.

The Finance Authority of Maine (FAME) would administer $1,000,000 of the bond proceeds in the form of grants for food processing for fishing, agricultural, dairy and lumbering industries in the state. If the bond is approved, FAME would be required to establish rules to administer grants from these funds for food processing for the fishing and agricultural industries in the state.

An additional $3,000,000 in bond proceeds would be distributed by FAME through the existing Economic Recovery Loan Program, which provides loans to Maine businesses that do not have sufficient access to credit but demonstrate the ability to survive, preserve and create jobs and repay the obligations. Projects that may be financed must pertain to manufacturing, industrial, recreational or natural resource enterprises in Maine that are determined by the Authority to provide significant public benefits in relation to the amount of the loan. The loan requirements for this program are more fully set forth in Title 10 M.R.S.A. section 1026-J and in rules developed by FAME.

Another $4,000,000 in bond proceeds would be administered by FAME as part of the Small Enterprise Growth Fund, which is used to provide loans to qualifying businesses with 50 or fewer full time equivalent employees and gross sales of $5 million or less that show potential for high growth and public benefit. To qualify, businesses must be engaged in at least one of the following: marine sciences, biotechnology, manufacturing, exports of goods or services outside the state, software development; provision or development of environmental services or technologies, or financial or insurance products or services; production of value-added goods from natural resources; and other enterprises in retail sales, tourism and agricultural production.

The bonds would run for a period not longer than 10 years from the date of issue and would be backed by the full faith and credit of the State. If approved, the bond authorization would take effect 30 days after the Governor's proclamation of the vote.

A "YES" vote favors authorizing the $23,750,000 bond issue to finance the above activities.

A "NO" vote opposes the bond issue in its entirety.


Debt Service
Prepared by the Office of the Treasurer

Total estimated life time cost is $29,628,125 representing $23,750,000 in principal and $5,878,125 in interest (assuming interest at 4.5% over 10 years).


Fiscal Impact Statement
Prepared by the Office of Fiscal and Program Review

This bond issue has no significant fiscal impact other than the debt service costs identified above.


Public Comments

No public comments were filed in support of or in opposition to Question 4.

































Question 5: Bond Issue

Do you favor a $10,250,000 bond issue to improve water quality, support drinking water programs and the construction of wastewater treatment facilities and to assist farmers in the development of environmentally sound water sources that will leverage $33,250,000 in federal and other funds?


STATE OF MAINE
Chapter 414

Part C
Public Laws of 2009
Approved June 16, 2009

An Act To Authorize Bond Issues for Ratification by the Voters for the November 2009 and
June and November 2010 Elections

PART C

Sec. C-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 $10,250,000 for the purposes described in section 6 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. At the discretion of the Treasurer of State, with the approval of the Governor, any issuance of bonds may contain a call feature.

Sec. C-2. Records of bonds issued kept by Treasurer of State. The Treasurer of State shall keep an account of each bond 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. C-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 debt service account established for the retirement of these bonds.

Sec. C-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. C-5. Disbursement of bond proceeds. The proceeds of the bonds must be expended as set out in this Part under the direction and supervision of the Department of Agriculture, Food and Rural Resources, the Department of Environmental Protection and the Department of Health and Human Services.

Sec. C-6. Allocations 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.

(see next page)





















DEPARTMENT OF HEALTH AND HUMAN SERVICES

Safe Drinking Water Revolving Loan Fund

Provides funds for a drinking water revolving loan fund to acquire, design, plan, construct, enlarge, repair, protect or improve drinking water supplies or treatment systems to be matched by $17,000,000 in other funds. $3,400,000

DEPARTMENT OF ENVIRONMENTAL PROTECTION

Small Community Grant Program

Provides funding for grants to towns to help replace malfunctioning septic systems that are polluting a water body or causing a public nuisance. $1,000,000

Wastewater Treatment Facility State Revolving Loan Fund

Provides funds for a wastewater treatment facility state revolving loan fund to be matched by $15,000,000 in other funds. $3,000,000

Uncontrolled Sites

Provides funds to investigate and clean up uncontrolled hazardous substance contamination at sites posing unacceptable threats to public health and water quality. $750,000

Wastewater Treatment Facility Construction Grants

Provides funds for wastewater treatment facility construction grants to be matched by $900,000 in other funds. $600,000

Overboard Discharge

Provides funds to assist homeowners whose homes are serviced by substandard or malfunctioning waste water treatment systems, including straight pipe discharges, individual overboard discharge systems, subsurface waste water disposal systems, septic tanks, leach fields and cesspools, which systems result in direct discharges of domestic pollutants to the surface waters of the State. $500,000

DEPARTMENT OF AGRICULTURE, FOOD AND RURAL RESOURCES

Agriculture Water Source Development Program

Provides funds to assist farmers in the development of environmentally sound water sources to manage weather-related risk and to comply with in-stream flow rules that will leverage $350,000 in other funds. $1,000,000

Sec. C-7. Contingent upon ratification of bond issue. Sections 1 to 6 do not become effective unless the people of the State ratify the issuance of the bonds as set forth in this Part.

Sec. C-8. 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 General Fund debt service.

Sec. C-9. Bonds authorized but not issued. Any bonds authorized but not issued, or for which bond anticipation notes are 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 or bond anticipation notes for an additional amount of time not to exceed 5 years.

Sec. C-10. 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 June 2010 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 $10,250,000 bond issue to improve water quality, support drinking water programs and the construction of wastewater treatment facilities and to assist farmers in the development of environmentally sound water sources that will leverage $33,250,000 in federal and other funds?"

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.


Intent and Content
Prepared by the Office of the Attorney General

This Act would authorize the State to issue bonds in an amount not to exceed $10,250,000 for the activities described below.

The Department of Environmental Protection would expend $5,850,000 of the bond proceeds as follows:

• $3,000,000 would go into an existing state revolving loan fund administered by the Maine Bond Bank and distributed by the Department of Environmental Protection in the form of loans to municipalities to construct and upgrade wastewater treatment facilities. These funds would be matched by approximately $15,000,000 in federal funds (a 5:1 ratio of federal to state funds);

• $600,000 would provide grants to municipalities for up to 80% of the cost to construct and upgrade wastewater treatment facilities. These funds are expected to leverage $900,000 in federal and other funds;

• $1,000,000 would go into the Small Community Grant Program to provide grants to towns in rural areas to help replace malfunctioning septic systems that are polluting a water body or causing a public nuisance;

• $750,000 would be allocated to support the investigation and clean-up of uncontrolled hazardous substance sites where contamination by hazardous substances poses a threat to public health and water quality; and

• $500,000 would provide grants to help fund the removal of individual overboard discharges of wastewater, with a high priority given to eliminating sources of contamination to shellfish harvesting areas and public nuisance conditions.

The Department of Health and Human Services, together with the Maine Bond Bank, would administer $3,400,000 of the bond proceeds as part of the state's safe drinking water revolving loan fund. Loans from this fund may be issued to eligible public water systems to design, construct or improve drinking water supplies or treatment and distribution systems, or for any actions authorized or required under the federal Safe Drinking Water Act of 1996. These funds would be matched by approximately $17,000,000 in federal funds (a 5:1 ratio of federal to state funds).

The Department of Agriculture, Food and Rural Resources would administer $1,000,000 of the funds in the form of grants to farmers, awarded through a competitive process, to fund up to 75% of the cost of constructing or expanding environmentally sound water sources to irrigate crops and minimize drought damage. These bond funds would be matched by $350,000 in other funds, representing 25% of the cost of these projects.

The bonds would run for a period not longer than 10 years from the date of issue and would be backed by the full faith and credit of the State. If approved, the bond authorization would take effect 30 days after the Governor's proclamation of the vote.

A "YES" vote favors authorizing the $10,250,000 bond issue to finance the above activities.

A "NO" vote opposes the bond issue in its entirety.


Debt Service
Prepared by the Office of the Treasurer

Total estimated life time cost is $12,786,875 representing $10,250,000 in principal and $2,536,875 in interest (assuming interest at 4.5% over 10 years).


Fiscal Impact Statement
Prepared by the Office of Fiscal and Program Review

This bond issue has no significant fiscal impact other than the debt service costs identified above.


Public Comments

No public comments were filed in support of or in opposition to Question