Sec. 1. 10 MRSA c. 110, sub-c. XI is enacted to read:

SUBCHAPTER XI

SMALL WOOD PRODUCTS MANUFACTURERS FUND

§1100-Y.__Definitions

As used in this subchapter, unless the context otherwise indicates, the following terms have the following meanings.

1.__Authority.__"Authority" means the Finance Authority of Maine.

2.__Fund.__"Fund" means the Small Wood Products Manufacturers Fund established in section 1100-Z.

3.__Small business.__"Small business" means a forest products manufacturer engaged in primary or secondary wood processing in the State that has fewer than 150 full-time, year-round employees.

§1100-Z.__Small Wood Products Manufacturers Fund

1.__Fund established.__There is established the Small Wood Products Manufacturers Fund to be administered by the authority.__ The fund provides matching grants to small businesses to provide technical assistance to foster innovation, develop new markets or develop new technologies.__The grants must be used to reduce risk and permit access to specific technical expertise for product, technology or business development that is not generally available to small businesses.__The fund is a revolving, nonlapsing fund.

2.__Selection criteria.__The authority shall adopt rules for the selection of eligible businesses for grants.__These rules must include the following selection criteria:

A.__The stated purpose of the small business for the grant funding is limited to developing a new product, new market or new technology or a business plan that will increase competitiveness and foster employment; and

B.__The application of the small business must include the use of the grant for specific technical or business expertise from a person or organization not employed by the small business, with preference given to an application that