124th MAINE LEGISLATURE
LD 1 LR 258(03)
An Act To Stimulate Capital Investment for Innovative Businesses in Maine
Fiscal Note for Senate Amendment " "
Sponsor: Sen. Mills of Somerset
Fiscal Note Required: Yes
             
Fiscal Note
Reduces Contingent Liability - General Fund
Removes potential revenue increase - General Fund
2009-10 2010-11 Projections 2011-12 Projections 2012-13
Net Cost (Savings)
General Fund $7,500 $0 $0 $0
Appropriations/Allocations
General Fund $7,500 $0 $0 $0
Fiscal Detail and Notes
This amendment replaces the Maine Fund of Funds and creates the Maine Economic Development Venture Capital Revolving Investment Program, the Small Enterprise Growth Program and the Innovation Finance Program, all with the purpose of increasing the availability of venture capital to the economy of the State. Each fund will raise capital by offering as security up to $35,000,000 in refundable tax credits, a reduction of tax credits from the original bill limit of $80,000,00. No more than $25,000,000 of credits may be redeemed in any single calendar year and the highest potential General Fund loss (worst case scenario) in a fiscal year would be $30,000,000 if the credits redeemed in two calendar years ($25,000,000 in one year and $5,000,000 the next) are redeemed in the same fiscal year. Tax credits under the Economic Development Venture Capital Revolving Investment Program and the Small Enterprise Growth Program may not be redeemed before July 1, 2014. The Innovation Finance Program has no date on which the tax credits may first be redeemed and the maximum exposure in that program is $20,000,000.
Language in the original bill indicating the General Fund had some potential to benefit has been removed.
This amendment includes a one-time General Fund appropriation of $7,500 to the Finance Authority of Maine (FAME) for the costs associated with rulemaking and initial programming to create incentives to encourage the Maine Public Employees Retirement System to use its assets for economic development in the State. This fiscal note assumes that the ongoing administrative costs to FAME will be paid either through fees charged by FAME or through amounts available in the Small Enterprise Growth Fund pursuant to the Maine Revised Statutes, Title 10, 383, sub-2.