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An Act To Authorize a General Fund Bond Issue To Revitalize Maine's Downtowns through Innovative Business Development and the Creative Economy
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:
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 $10,000,000 for the purposes described in section 5 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.
Sec. A-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. 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 Office of the Treasurer of State to be used for the retirement of general obligation 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 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 under the direction and supervision of the agencies and entities set forth in this section.

ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF		
		
Office of Community Development		

Provides funds for seed money to capitalize the Downtown Revitalization Fund established in the Maine Revised Statutes, Title 5, section 13075-A, a revolving loan and grant fund to encourage business development in downtown areas, targeting innovative businesses, light manufacturing, trades and small businesses and space for artists and artisans.

Total	$10,000,000	
 
Sec. A-6. Contingent upon ratification of bond issue. Sections 1 to 5 do not become effective unless the people of the State ratify the issuance of the bonds as set forth in this Part.
Sec. A-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. A-8. Bonds authorized but not issued. Any bonds authorized but 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 for an additional amount of time not to exceed 5 years.
Sec. A-9. 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 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 Part by voting on the following question:
 
"Do you favor a $10,000,000 bond issue to provide funds for seed money to capitalize a revolving loan and grant fund to encourage business development in downtown areas, targeting innovative businesses, light manufacturing, trades and small businesses and space for artists and artisans?"
 
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 B
Sec. B-1.  5 MRSA §12004-F, sub-§19  is enacted to read:
 
19.   
Sec. B-2.  5 MRSA §13075-A  is enacted to read:
§ 13075-A. Downtown Revitalization Fund
 
1.  Fund established.     The Downtown Revitalization Fund, referred to in this section as "the fund," is established.
 
2.  Board.     The Downtown Revitalization Fund Board, established in section 12004-F, subsection 19 and referred to in this section as "the board," shall oversee the fund. The term of a board member is 2 years. The board is composed of 9 members as follows:
 
A.  Two members of the Senate, appointed by the President of the Senate;
 
B.  Two members of the House of Representatives, appointed by the Speaker of the House of Representatives;
 
C.  One member appointed by the Governor;
 
D.  One member representing postsecondary educational institutions, appointed by the Governor;
 
E.  One member who is a representative of the Finance Authority of Maine;
 
F.  One member who is a representative of a small business development center; and
 
G.  One member who is a representative of the Maine State Chamber of Commerce or its successor organization.
 
The board may elect a chair from its membership.
 
3.  Sources of funds.     The fund may accept funds from appropriations, allocations, bond proceeds, donations and principal and interest payments derived from loans made from the fund.
 
4.  Purpose.     The board shall disburse loans and grants from the fund to encourage business development in downtown areas, targeting innovative businesses, light manufacturing, trades and small businesses and space for artists and artisans. Administrative expenses of the fund must be paid from the proceeds of the fund.
 
5.  Administration.     The board shall administer the fund with staff support from the Office of Community Development. The board shall adopt criteria for the administration of loans and grants from the fund to carry out the purpose of the fund under subsection 4, including the application process, recipient qualifications and terms and conditions of loans and grants disbursed by the fund. A loan from the fund must be matched by the recipient of the loan in the amount of $1 from the recipient for every $2 loaned from the fund to the recipient.
 
6.  Nonlapsing.     Any funds remaining in the fund at the end of a fiscal year do not lapse but carry forward to the next fiscal year.
Sec. B-3. Contingent effective date. This Part takes effect only if the General Fund bond issue proposed in Part A is approved by the voters of this State.
 
SUMMARY
The funds provided by this bond issue, in the amount of $10,000,000, will be used as seed money to capitalize the Downtown Revitalization Fund, a revolving loan and grant fund to encourage business development in downtown areas, targeting innovative businesses, light manufacturing, trades and small businesses and space for artists and artisans. The Downtown Revitalization Fund is administered by a board consisting of public and private members and issues loans that must be matched by $1 from the recipient for every $2 received from the fund and issues grants.