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132nd MAINE LEGISLATURE
FIRST REGULAR SESSION-2025
Legislative Document No. 691
S.P. 308 In Senate, February 25, 2025
An Act to Authorize a General Fund Bond Issue for Further
Investment in Maine-based Businesses
Received by the Secretary of the Senate on February 20, 2025. Referred to the Committee
on Appropriations and Financial Affairs pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator PIERCE of Cumberland.
Cosponsored by Representative SARGENT of York and
Senators: CURRY of Waldo, President DAUGHTRY of Cumberland, Representative: Speaker
FECTEAU of Biddeford.
Page 1 - 132LR0532(01)
1Preamble. Two thirds of both Houses of the Legislature deeming it necessary in
2 accordance with the Constitution of Maine, Article IX, Section 14 to authorize the issuance
3 of bonds on behalf of the State of Maine to provide funds as described in this Act,
4Be it enacted by the People of the State of Maine as follows:
5Sec. 1. Authorization of bonds. The Treasurer of State is authorized, under the
6 direction of the Governor, to issue bonds in the name and on behalf of the State in an
7 amount not exceeding $25,000,000 for the purposes described in section 5 of this Act. The
8 bonds are a pledge of the full faith and credit of the State. The bonds may not run for a
9 period longer than 10 years from the date of the original issue of the bonds.
10Sec. 2. Records of bonds issued; Treasurer of State. The Treasurer of State
11 shall ensure that an account of each bond is kept showing the number of the bond, the name
12 of the successful bidder to whom sold, the amount received for the bond, the date of sale
13 and the date when payable.
14Sec. 3. Sale; how negotiated; proceeds appropriated. The Treasurer of State
15 may negotiate the sale of the bonds by direction of the Governor, but no bond may be
16 loaned, pledged or hypothecated on behalf of the State. The proceeds of the sale of the
17 bonds, which must be held by the Treasurer of State and paid by the Treasurer of State
18 upon warrants drawn by the State Controller, are appropriated solely for the purposes set
19 forth in this Act. Any unencumbered balances remaining at the completion of the project
20 in this Act lapse to the Office of the Treasurer of State to be used for the retirement of
21 general obligation bonds.
22Sec. 4. Interest and debt retirement. The Treasurer of State shall pay interest
23 due or accruing on any bonds issued under this Act and all sums coming due for payment
24 of bonds at maturity.
25Sec. 5. Disbursement of bond proceeds from General Fund bond issue. The
26 proceeds of the sale of the bonds authorized under this Act must be expended as designated
27 in the following schedule under the direction and supervision of the agencies and entities
28 set forth in this section.
29FINANCE AUTHORITY OF MAINE
30Small Enterprise Growth Fund
31 Provides funds to support operations and make direct investments into small,
32 independent Maine companies in order to accelerate their growth. Funding will also
33 enable additional investment programs aimed at providing financing for a wider array of
34 businesses, including more rural, early-stage and growth-stage companies, and will
35 include a more aggressive strategy to attract high-growth start-ups and equity investors
36 to Maine.
Total $25,000,000
37Sec. 6. Contingent upon ratification of bond issue. Sections 1 to 5 do not
38 become effective unless the people of the State ratify the issuance of the bonds as set forth
39 in this Act.
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1Sec. 7. Appropriation balances at year-end. At the end of each fiscal year, all
2 unencumbered appropriation balances representing state money carry forward. Bond
3 proceeds that have not been expended within 10 years after the date of the sale of the bonds
4 lapse to the Office of the Treasurer of State to be used for the retirement of general
5 obligation bonds.
6Sec. 8. Bonds authorized but not issued. Any bonds authorized but not issued
7 within 5 years of ratification of this Act are deauthorized and may not be issued, except
8 that the Legislature may, within 2 years after the expiration of that 5-year period, extend
9 the period for issuing any remaining unissued bonds for an additional amount of time not
10 to exceed 5 years.
11Sec. 9. Referendum for ratification; submission at election; form of
12question; effective date. This Act must be submitted to the legal voters of the State at
13 a statewide election held in the month of November following passage of this Act. The
14 municipal officers of this State shall notify the inhabitants of their respective cities, towns
15 and plantations to meet, in the manner prescribed by law for holding a statewide election,
16 to vote on the acceptance or rejection of this Act by voting on the following question:
17 "Do you favor a $25,000,000 bond issue for the Small Enterprise Growth
18 Fund, a quasi-state fund that has been operating in Maine since 1996, to
19 support operations and make direct investments into small, independent
20 Maine companies in order to accelerate their growth and provide financing
21 for a wider array of programs for rural, early-stage and growth-stage
22 companies that includes a more aggressive strategy to attract high-growth
23 start-ups and equity investors to Maine?"
24 The legal voters of each city, town and plantation shall vote by ballot on this question
25 and designate their choice by a cross or check mark placed within a corresponding square
26 below the word "Yes" or "No." The ballots must be received, sorted, counted and declared
27 in open ward, town and plantation meetings and returns made to the Secretary of State in
28 the same manner as votes for members of the Legislature. The Governor shall review the
29 returns. If a majority of the legal votes are cast in favor of this Act, the Governor shall
30 proclaim the result without delay and this Act becomes effective 30 days after the date of
31 the proclamation.
32 The Secretary of State shall prepare and furnish to each city, town and plantation all
33 ballots, returns and copies of this Act necessary to carry out the purposes of this
34 referendum.
35SUMMARY
36 The funds provided by this bond issue, in the amount of $25,000,000, will be used for
37 the Small Enterprise Growth Fund to support operations and make direct investments into
38 small, independent Maine companies in order to accelerate their growth and enable
39 additional investment programs aimed at providing financing for a wider array of
40 businesses.
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