LD 1 LR 258(04)
An Act To Stimulate Capital Investment for Innovative Businesses in Maine
Fiscal Note for Bill as Amended by Committee Amendment "   "
Committee: Business, Research and Economic Development
Fiscal Note Required: Yes
Fiscal Note
Potential future biennium cost increase - General Fund
Fiscal Detail and Notes
This bill authorizes the Finance Authority of Maine (FAME) to oversee a state innovation finance program allowing the Maine Public Employees Retirement System (MainePERS) to apply to FAME for approval of new investments in venture capital funds.  FAME may issue refundable tax credits to MainePERS sufficient to offset 80% of the cost of any such investments in the event of realized losses in value.  The timing and extent of any such losses will depend upon the extent of MainePERS participation in the program and the performance of any investments, with reimbursement for any such losses capped at a maximum of $20,000,000.  No current biennium impact is anticipated.  
This legislation permits, but does not require, MainePERS to invest in certain venture capital funds.  If MainePERS decides to participate, it is not expected to significantly affect administrative costs.
FAME will not require additional General Fund appropriations to establish and administer the state innovation finance program due to the provisions in the bill that allow it to charge MainePERS fees for the costs of implementing and administering the program.