An Act To Amend the Laws Governing the Issuance of Bonds

Sec. 1. 2 MRSA §11  is enacted to read:

§ 11.  General obligation bonds

The Governor shall authorize the issuance of a general obligation bond that has been ratified by the legal voters of the State unless:

Upon the occurrence of any of the circumstances set out in subsections 1 to 5, the Governor shall immediately notify the President of the Senate and the Speaker of the House of Representatives and the majority and minority leaders of the Senate and the House of Representatives of the specific bond delayed or otherwise not issued, the extent of the delay of the issuance of the bond and the effect of the delay or nonissuance on the project and purposes of the bond.

Sec. 2. 5 MRSA §145,  as amended by PL 1991, c. 780, Pt. Y, §15, is further amended to read:

§ 145. Registered bonds

The Treasurer of State may issue registered bonds, transferable by assignment, in pieces of not less than $1,000, and of any multiple of 1,000, in exchange for, and in place of, any coupon bonds issued under the laws of this State, bearing the same rate of interest and maturing at the same time as the bonds that the Treasurer of State may receive therefor in exchange. The place of payment prescribed therein must be the State Treasury. Said bonds must bear the facsimile of the signature of the Governor and must be signed by the Treasurer of State or the Treasurer of State's deputy and attested by the Commissioner of Administrative and Financial Services, or such agent as the commissioner may designate.

Sec. 3. 5 MRSA §145-B, sub-§2,  as amended by PL 1991, c. 780, Pt. Y, §17, is further amended to read:

Sec. 4. Application. This Act applies to all general obligation bonds ratified by the legal voters of this State but not yet issued as of the effective date of this Act and all general obligation bonds ratified by the legal voters of this State on or after the effective date of this Act.

SUMMARY

This bill makes the following changes to the laws governing the issuance of bonds:

1. It requires the Governor to issue a general obligation bond that has been ratified by the legal voters of the State unless one of 5 specific conditions exists, and it requires the Governor to provide certain information upon delaying or forgoing issuance of a bond;

2. It eliminates the requirement that registered bonds bear the facsimile signature of the Governor; and

3. It provides that the bill applies to all general obligation bonds ratified by the voters but as yet unissued as well as all future general obligation bonds ratified by the voters.