An Act To Create the Maine Street Economic Development Bank
Sec. 1. 9-B MRSA c. 125 is enacted to read:
MAINE STREET ECONOMIC DEVELOPMENT BANK
§ 1251. Bank established; purposes
The Maine Street Economic Development Bank is established for the following purposes:
§ 1252. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
§ 1253. Board; duties and powers
The board may designate the president or another officer or employee as its agent with respect to the functions of the bank, subject to the supervision, limitation and control of the board. The board may remove and discharge any person appointed and employed under this subsection.
§ 1254. Advisory committee
The board shall appoint the Maine Street Economic Development Bank Advisory Committee to actively enlist the help of private enterprise and encourage use of the bank.
§ 1255. Deposit of funds
The bank may accept deposits of public funds. Except as provided in section 1256, the bank may not accept deposits of private funds. All income earned by the bank on public funds must be credited to and becomes a part of the revenues and income of the bank.
§ 1256. Powers of the bank
(1) To state-chartered financial institutions;
(2) That are insured or guaranteed in whole or in part by the United States or its agencies or instrumentalities;
(3) Obtained as security pledged for, or originated in the restructuring of, any other loan properly originated or participated in by the bank; and
(4) To instrumentalities of this State; and
The bank may not make loans to any private individual or legal entity.
§ 1257. Investment by Maine Public Employees Retirement System authorized
§ 1258. Transfer to Maine Budget Stabilization Fund
Except as provided in Title 5, section 1533, as soon as possible after the end of each calendar year, the board shall determine the amount of income, if any, earned by the bank in that prior calendar year that is in excess of amounts necessary to pay for expenses of administering the activities of the bank less any reserves required pursuant to rules adopted in accordance with section 1259, subsection 1, paragraph E for delinquencies and future business and payment of debts from any initial funding. The amount of the excess must be transferred to the Maine Budget Stabilization Fund established in Title 5, section 1532.
§ 1259. Rulemaking; oversight
Rules adopted under this subsection are major substantive rules as defined in Title 5, chapter 375, subchapter 2-A.
§ 1260. Exempt from liability
Whenever any public funds are deposited in the bank, the public official who deposited the funds and the sureties on any bond of the public official are exempt from liability for loss of any of the funds while the funds are deposited in the bank.
§ 1261. Use of name; execution of instruments
All business of the bank must be conducted under the name of the Maine Street Economic Development Bank. Title to property pertaining to the operation of the bank must be obtained and conveyed in the name of the Maine Street Economic Development Bank.
Instruments must be executed in the name of the State. Within the scope of authority granted by the board, the president of the bank may execute instruments on behalf of the bank, including any instrument granting, conveying or otherwise affecting any interest in or lien upon real or personal property.
Officers or employees of and legal counsel to the bank may execute instruments on behalf of the bank when authorized by the board.
Sec. 2. Treasurer of State and Commissioner of Administrative and Financial Services to make recommendations. No later than January 15, 2012, the Treasurer of State and the Commissioner of Administrative and Financial Services, in consultation with the Attorney General, shall submit a report to the Joint Standing Committee on Appropriations and Financial Affairs with recommendations for implementing the Maine Street Economic Development Bank, as established in the Maine Revised Statutes, Title 9-B, chapter 125 and referred to in this section as "the bank." The report must include:
1. A draft of any legislation needed to amend the Constitution of Maine to authorize the State to establish the bank;
2. A recommendation on the amount of money needed to adequately capitalize the bank;
3. A draft of any legislation needed to transfer funds to the bank;
4. A description and draft of statutory changes needed to fully utilize the resources and powers of the bank and to eliminate any duplication of efforts or conflict with the authority or responsibilities of the Maine Municipal Bond Bank and any other state agencies;
5. Recommendations for guaranteeing funds deposited in the bank;
6. Recommendations pertaining to the liability of the State and the bank in civil actions; and
7. Recommendations regarding the confidentiality of certain records held by the bank.
Sec. 3. Initial appointments. Initial appointments for the Maine Street Economic Development Bank Advisory Committee established in the Maine Revised Statutes, Title 9-B, section 1254 must be for staggered terms. One member must be appointed for a one year term, one member must be appointed for a 2-year term, one member must be appointed for a 3-year term and one member must be appointed for a 4-year term.
Sec. 4. Authority to report out a bill. The Joint Standing Committee on Appropriations and Financial Affairs may report out a bill to the Second Regular Session of the 125th Legislature pertaining to the establishment, oversight and operation of the Maine Street Economic Development Bank established in the Maine Revised Statutes, Title 9-B, chapter 125.
Sec. 5. Effective date. That section of this Act that enacts the Maine Revised Statutes, Title 9-B, chapter 125 takes effect July 1, 2013 except that the Maine Street Economic Development Bank may not make, purchase, modify or hold loans until the bank has adequate capital of at least $20,000,000.
This bill establishes the Maine Street Economic Development Bank effective July 1, 2013 except that the bank may not make, purchase, guarantee, modify or hold loans until the bank has adequate capital of at least $20,000,000. It specifies the purposes of the bank, establishes a board of directors and creates an advisory committee. It allows the bank to accept deposits of public funds, to make, purchase, guarantee, modify or hold certain loans and to serve as a custodian bank. It directs the Treasurer of State to deposit money into the bank in an amount the Treasurer of State determines is necessary to allow the bank to fulfill its duties. Excess income of the bank is deposited in the Maine Budget Stabilization Fund.
The bill provides for a quarterly examination by the Department of Professional and Financial Services, Bureau of Financial Institutions and an audit by the State Auditor every 2 years.
The bill directs the Treasurer of State and the Commissioner of Administrative and Financial Services to consult with the Attorney General and report to the Joint Standing Committee on Appropriations and Financial Affairs by January 15, 2012 with recommendations to fully implement the bank. It authorizes the Joint Standing Committee on Appropriations and Financial Affairs to report out a bill to the Second Regular Session of the 125th Legislature.