Sec. VVV-1. 5 MRSA c. 383, sub-c. II, art. 2-A is enacted to read:
Article 2-A
MAINE MICROENTERPRISE INITIATIVE
As used in this article, unless the context otherwise indicates, the following terms have the following meanings.
1. Community-based organization. "Community-based organization" means a nonprofit organization that has:
A. A viable plan for providing training and technical assistance to microenterprises;
B. Broad-based community support;
C. An adequate source of operating capital; and
D. A demonstrated need for funding to provide training and technical assistance to microenterprises.
2. Fund. "Fund" means the Maine Microenterprise Initiative Fund established in section 13063-E.
3. Microenterprise. "Microenterprise" means a business located in the State that produces goods or provides services and has fewer than 10 full-time equivalent employees.
§13063-E. Maine Microenterprise Initiative Fund
1. Fund established. The Maine Microenterprise Initiative Fund is established as a nonlapsing fund administered by the department. The fund consists of money appropriated to it by the Legislature from the General Fund and eligible investment earnings from fund assets. The fund must be held separate from all other money, funds and accounts, and all eligible investment earnings from fund assets must be credited to the fund.
2. Fund purposes. The department shall administer the fund to provide grants to community-based organizations to aid them in providing technical assistance and training to microenterprises.
1. Process established. The department shall adopt rules establishing an application process for fund grants for the purposes set forth in section 13063-E, subsection 2. In establishing the application process, the department shall consult with business experts involved with microenterprises in the State.
2. Process requirements. The application process must be competitive. An applicant shall specify whether a grant is sought for microenterprise technical assistance or training or a combination thereof. In making grants, the department shall give priority to applications that:
A. Are joint applications by 2 or more community-based organizations or otherwise provide for cooperation among community-based organizations;
B. Target aid to low-income individuals; or
C. Target aid to areas of high unemployment or to underserved areas of the State.
The department may establish additional criteria for assessing applications for fund grants.
§13063-G. Rules
The department shall adopt rules necessary to carry out this article. Rules adopted pursuant to this article are routine technical rules as defined in chapter 375, subchapter II-A.
The department shall submit to the joint standing committee of the Legislature having jurisdiction over business and economic development matters an update on the fund by January 1, 2001 and every year thereafter.
Sec. VVV-2. 5 MRSA §13073-A is enacted to read:
§13073-A. Regional Economic Development Assistance Fund
The Director of the Office of Tourism and Community Development shall administer the Regional Economic Development Assistance Fund, referred to in this section as the "fund."
1. Fund established. The fund is established as a nonlapsing fund within the Office of Tourism and Community Development.
2. Fund purpose. The purpose of the fund is to provide funding to develop effective local and regional economic development programs. The department shall administer the fund to award start-up grants to nonprofit local or regional community organizations that are providing local or regional economic development programs.
3. Application process. The department shall adopt rules establishing an application process for fund grants for the purposes set forth in this section.
4. Competitive procedure. Funds must be dispersed in accordance with a competitive, quality-based selection procedure as established and administered by the department.
5. Preference in awards. In awarding grants, the department shall give preference to those projects or programs that will benefit economically distressed communities and regions. In determining preference, the department shall consider such factors as unemployment rates, per capita income, educational attainment, business failures and dependence upon mature or dominant industries.
6. Local match requirements. All funds awarded must be matched by local funds on a minimum one-to-one basis.
7. Rules. The department shall adopt rules necessary to carry out this section. Rules adopted pursuant to this section are routine technical rules as defined in chapter 375, subchapter II-A.
Sec. VVV-3. 10 MRSA §997-B, as enacted by PL 1999, c. 474, §2, is amended to read:
§997-B. Agricultural Products Utilization Commission
The Agricultural Products Utilization Commission, as established in Title 5, section 12004-I, subsection 6-F, referred to in this section as the "commission," shall advise the members of the authority on the adoption, amendment or repeal of rules, policies or administrative procedures for carrying out section 997-A. The commission shall work with state departments and agencies to identify issues related to the development of agriculturally derived fuel industries in the State. In addition, the commission shall advise the members of the authority on environmental impact considerations, including the impact that agriculturally derived fuels may have on ground water. The commission may also identify agriculturally derived fuel development programs, including incentives, financing and other market and infrastructure issues, and analyze the potential for agriculturally derived fuel production in the State.
1. Membership. The commission consists of 11 12 members. Five members must be appointed by the Governor for terms of 2 years each, arranged so that 2 terms expire in odd-numbered years and 3 terms expire in even-numbered years; 3 of these must be actively engaged in farming in this State and 2 members appointed by the Governor must be actively engaged in business in this State. The Commissioner of Agriculture, Food and Rural Resources shall appoint one member for a term of 2 years, which expires in odd-numbered years. The member appointed by the Commissioner of Agriculture, Food and Rural Resources must be actively engaged in farming in this State. The Commissioner of Environmental Protection shall appoint one member for a term of 2 years, which expires in even-numbered years. Commission members may be reappointed to the commission. Terms of members run from the first day of July. The Director Commissioner of Economic and Community Development, the President of the University of Maine, the Commissioner of Environmental Protection, the chief executive officer of the authority and the Commissioner of Agriculture, Food and Rural Resources, or their designees, are members of the commission. The commission shall elect one of its members as chair.
2. Commission meetings; staff. The commission shall meet as necessary and shall report annually to the joint standing committee of the Legislature having jurisdiction over natural resources matters and, the joint standing committee of the Legislature having jurisdiction over agriculture, food and rural resources matters and the joint standing committee of the Legislature having jurisdiction over business and economic development matters on the commission's activities and deposits and expenditures from the Agriculturally Derived Fuel Fund. The authority shall provide staff and support services to the commission.
Sec. VVV-4. 10 MRSA §1026-J, first ¶, as enacted by PL 1991, c. 849, §1 and affected by §7, is amended to read:
The Economic Recovery Program, referred to in this section as the "program," is established to provide loans to businesses that do not have sufficient access to credit but demonstrate the ability to survive, preserve and create jobs, and repay the loans obligations.
Sec. VVV-5. 10 MRSA §1026-J, sub-§1, ¶D, as amended by PL 1997, c. 563, Pt. A, §1, is repealed.
Sec. VVV-6. 10 MRSA §1026-J, sub-§2, as enacted by PL 1991, c. 849, §1 and affected by §7, is amended to read:
2. Loan terms and conditions. Loans may not exceed $1,000,000 per project. The authority may establish prudent terms and conditions for loans, including limits on the amount of loans for any one project and requiring adequate collateral for the loans. Loan terms may not exceed 20 years in the case of loans primarily secured by real estate, 10 years in the case of loans secured primarily by machinery and equipment and 7 years for other loans. The interest rate charged on each loan may not exceed the prime rate for interest plus 4%, as determined by the authority. The authority may establish conditions, such as balloon payments, to encourage borrowers to make the transition to conventional financing as soon as they are reasonably able to do so. The authority may further assist the borrower by allowing for the deferral of interest or principal payments for a period of time. Loans may be subject to conditions that allow the authority to make a reasonable return based on the risk of the investment, which may include royalties or additional payments based on sales, net cash flow or other financial measures and rights to equity in the company.
Sec. VVV-7. 10 MRSA §1026-N, sub-§§1 and 2, as enacted by PL 1995, c. 424, §1, are amended to read:
1. Established. The Maine Economic Development Venture Capital Revolving Investment Program, referred to in this section as the "program," is established to provide venture capital to businesses that need assistance in order to create or retain jobs. The Maine Economic Development Venture Capital Revolving Investment Program Fund, referred to in this section as the "fund," is established as a revolving fund, into which must be deposited all amounts appropriated to the program or allocated for inclusion in the fund, from whatever source, interest and investment earnings on the fund and any amounts repaid to the program by participating venture capital funds.
2. Eligible venture capital funds. Money in the fund may be invested in one or more private, professionally managed venture capital funds located in the State capable of providing venture capital to businesses in order to create and protect jobs and with an established track record of that provide evidence of past or potential management success and risk diversification. To be eligible for investments from the fund, a private venture capital fund must:
A. Apply to the authority. The application must describe the private venture capital fund and its funding sources, the region it serves, its methods and criteria for qualifying investments, including any targeted investing and economic development strategy, its expertise in venture capital assistance and investing in small and emerging businesses, the method by which it will leverage funds from other sources than those received from the fund and other information the authority determines necessary;
B. Have a strategy for the creation and retention of jobs, an effective small business marketing and technical assistance plan and enough expert assistance available to it to underwrite, document and service investments and to assist the businesses in which it invests;
C. Be determined by the authority to be able to prudently and effectively administer venture capital investments; and
D. Propose performance standards and goals and a process for monitoring compliance with proposed measurement and goals.
Sec. VVV-8. 10 MRSA §1026-N, sub-§4, ¶A, as enacted by PL 1995, c. 424, §1, is amended to read:
A. The private venture capital fund shall certify that it will use funds only for eligible purposes and that it will make best efforts to invest an amount equal to the authority's investment in the fund in businesses that meet all eligibility requirements for a tax credit certificate pursuant to section 1100-T, subsection 2, paragraph B;
Sec. VVV-9. 10 MRSA §1026-N, sub-§4, ¶B, as enacted by PL 1995, c. 424, §1, is repealed.
Sec. VVV-10. 10 MRSA §1026-N, sub-§4, ¶B-1 is enacted to read:
B-1. The authority has rights equal to those of all other investors in the private venture capital fund;
Sec. VVV-11. 10 MRSA §1026-N, sub-§5, as enacted by PL 1995, c. 424, §1, is amended to read:
5. Administrative costs. A private venture capital fund may not use any money disbursed more than 4% annually of the amount invested from the fund by the authority for administrative expenses or load charges. The authority shall review and approve a private venture capital fund's administrative expenses on an annual basis. The authority may establish by rule reasonable administrative fees for its administration of the fund.
Sec. VVV-12. 10 MRSA §1026-N, sub-§6, as enacted by PL 1995, c. 424, §1, is repealed.
Sec. VVV-13. 10 MRSA §1026-N, sub-§7, as enacted by PL 1995, c. 424, §1, is amended to read:
7. Reports. A private venture capital fund shall report at least semiannually to the authority on the businesses in which the private venture capital fund invests and the administration of the program. The report must include a description of each business, the amount, type and terms of assistance the business received, the amount of funds invested in businesses that meet the criteria of section 1100-T, subsection 2, paragraph B, the number of jobs that were created or retained and other information the authority requires. The report must contain an accounting of the investment portfolio and any investments that are in default, as well as an accounting of the private venture capital fund's administrative and technical assistance expenses incurred and charged.
Sec. VVV-14. Transfer to the Maine Economic Development Venture Capital Revolving Investment Program Fund. On the effective date of this Part, the Finance Authority of Maine shall transfer up to $3,000,000 from the Economic Recovery Program Fund to the Maine Economic Development Venture Capital Revolving Investment Program Fund.
Sec. VVV-15. Stimulate rural development. The Maine Rural Development Council, a quasi-independent agency of the State, shall:
1. Provide advocacy for the social and economic needs and issues of rural Maine communities, particularly in the most distressed counties of the State;
2. Coordinate the development of "community capacity building" projects and demonstrate innovative approaches to achieving growth in these distressed counties through locally developed strategies that are driven by civic vision, grounded in communal assets and commanded by local leadership;
3. Stimulate rural development innovation and foster the flow of information on "best practices" to these communities; and
4. Report annually to the Governor and the Legislature on the effectiveness of these community capacity building projects and recommendations for future action regarding conditions in the rural areas of the State.
Sec. VVV-16. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Part.
2000-01
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF
Business Development
Positions - Legislative Count (1.000)
Personal Services $80,000
Provides for the appropriation of funds for one Information Technology Manager position to serve as network manager administrator for the Maine Business Works program.
Sec. VVV-17. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Part.
2000-01
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF
Business Development
All Other $60,000
Provides funds to enter into a contract for a person to serve as field representative in a currently underserved and economically depressed area. In determining the service area, the department will consider unemployment rates, per capita income, educational attainment, business failures and dependence upon mature or dominant industries.
Sec. VVV-18. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Part.
2000-01
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF
Maine Microenterprise Initiative Fund
All Other $850,000
Provides funds on a one-time basis for grants to community-based organizations for training and technical assistance to microenterprises.
Sec. VVV-19. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Part.
2000-01
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF
Regional Economic Development Assistance Fund
All Other $350,000
Provides funds on a one-time basis for grants to nonprofit local or regional community organizations to provide seed funds to develop effective economic development programs.
Sec. VVV-20. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Part.
2000-01
MAINE RURAL DEVELOPMENT COUNCIL
Maine Rural Development Council
All Other $100,000
Provides funds on a one-time basis for the Maine Rural Development Council for development of community capacity building projects and for provision of advocacy for social and economic needs in rural Maine.
Sec. VVV-21. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Part.
2000-01
MAINE TECHNICAL COLLEGE SYSTEM, BOARD OF TRUSTEES OF THE
Maine Technical College System - Board of Trustees
All Other $60,000
Provides funds on a one-time basis for a pilot program proposal for the Aroostook County Machine Tool Program. The pilot program will enroll 10 students in a machine tool program to be offered jointly by Northern Maine Technical College in Presque Isle and Eastern Maine Technical College in Bangor. The majority of the program will be delivered at Northern Maine Technical College with lab instruction delivered in daylong classes on Saturdays at Eastern Maine Technical College.
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