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. The proceeds of the bonds must be expended as set out in section 6 under the direction and supervision of the Department of Economic and Community Development, the Schoodic educational and research center, the University of Maine and the University of Southern Maine.

Sec. 6. Allocations from General Fund bond issue; economic development. The proceeds of the sale of the bonds must be expended as designated in the following schedule.

ECONOMIC AND COMMUNITY DEVELOPMENT,

DEPARTMENT OF - MAINE RURAL DEVELOPMENT

AUTHORITY

Seed money for the Maine $5,000,000

Rural Development Authority that will provide loans to develop and redevelop commercial facilities.

ECONOMIC AND COMMUNITY DEVELOPMENT,

DEPARTMENT OF - FINANCE AUTHORITY OF

MAINE

Recapitalization of the $5,000,000

Economic Recovery Loan Program to provide loans up to $200,000 to assist Maine businesses that do not have sufficient access to credit but demonstrate the ability to survive, preserve and

create jobs and repay obligations.

Regional Economic Development $5,000,000

Revolving Loan Program to recapitalize the revolving loan fund that provides funding to regional economic development agencies to relend for the purpose of creating and retaining jobs.

ECONOMIC AND COMMUNITY DEVELOPMENT,

DEPARTMENT OF

Provide funding to leverage $400,000

$4,000,000 in federal funding to redevelop the naval base in Winter Harbor and Gouldsboro into an education and research center. The department must distribute the funds to a nonprofit corporation incorporated in Maine called the Schoodic Education and Research Corporation established to develop the Schoodic Education and Research Center.

UNIVERSITY OF MAINE

Construction of a facility $6,400,000

for product development and support to help solve manufacturing and engineering problems for Maine companies.

UNIVERSITY OF SOUTHERN MAINE

Construction of a facility $4,400,000

for product development and support to help solve manufacturing and engineering problems for Maine companies.

__________

TOTAL ALLOCATIONS $25,400,000

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

Sec. 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. 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 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 or bond anticipation notes for an additional amount of time not to exceed 5 years.

Sec. 10. Referendum for ratification; submission at general election; form of question; effective date. This Act must be submitted to the legal voters of the State of Maine at the next general election 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 general election, to vote on the acceptance or rejection of this Act by voting on the following question:

"Do you favor a $25,400,000 bond issue for the following purposes:

(1) The sum of $5,000,000 to encourage economic investment by businesses by providing low-interest loans to develop and redevelop commercial facilities;

(2) The sum of $5,000,000 to promote job creation by providing loans of up to $200,000 to Maine businesses that do not have sufficient access to credit but demonstrate the ability to survive, preserve and create jobs and repay obligations;

(3) The sum of $5,000,000 to recapitalize a revolving loan fund that provides funding to regional economic development agencies to relend for the purpose of creating and retaining jobs locally;

(4) The sum of $400,000 to leverage $4,000,000 in federal funding to redevelop the naval base in Winter Harbor and Gouldsboro into an education and research center; and

(5) The sum of $10,000,000 for the construction of 2 facilities for product development and support that will provide the University of Maine and the University of Southern Maine with the resources needed to help solve daily manufacturing and engineering problems for Maine companies?"

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 and, 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 purpose of this referendum.

SUMMARY

This is the majority report of the Joint Standing Committee on Business and Economic Development, and the funds provided by this bond issue in the amount of $25,400,000 will be used for the following purposes:

1. The sum of $5,000,000 to encourage economic investment by businesses by providing low-interest loans to develop and redevelop commercial facilities;

2. The sum of $5,000,000 to promote job creation by providing loans of up to $200,000 to Maine businesses that do not have sufficient access to credit but demonstrate the ability to survive, preserve and create jobs and repay obligations;

3. The sum of $5,000,000 to recapitalize a revolving loan fund that provides funding to regional economic development agencies to relend for the purpose of creating and retaining jobs locally;

4. The sum of $400,000 to leverage $4,000,000 in federal funding to redevelop the naval base in Winter Harbor and Gouldsboro into an education and research center; and

5. The sum of $10,000,000 for the construction of 2 facilities for product development and support that will provide the University of Maine and the University of Southern Maine with the resources needed to help solve daily manufacturing and engineering problems for Maine companies.