HP1113, LD 1617, item 1, An Act To Initiate the Process of Terminating the Maine Turnpike Authority

An Act To Initiate the Process of Terminating the Maine Turnpike Authority

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 23 MRSA §1965, sub-§1, ¶¶M and N, as enacted by PL 1981, c. 595, §3, are amended to read:

M. Borrow Until October 15, 2017, borrow money, make, issue and sell at public or private sale negotiable notes, bonds and other evidences of indebtedness or obligations of the authority for the purposes set forth in this chapter and secure the payment of that obligation or any part thereof by pledge of all or any part of the operating revenues of the turnpike;

N. Enter Until October 15, 2017, enter into loan or security agreements with one or more lending institutions, including, but not limited to, banks, insurance companies and pension funds, or trustees for those institutions for purposes for which bonds may be issued and to exercise with respect to such loan or security agreements all of the powers delineated in this chapter for the issuances of bonds;

Sec. 2. 23 MRSA §1968, sub-§4 is enacted to read:

4. Prohibition on issuance of bonds. The authority may not issue any bonds after October 15, 2017.

Sec. 3. 23 MRSA §1978, as enacted by PL 1981, c. 595, §3, is amended to read:

§ 1978. Termination of the authority

The authority shall not be dissolved until such time as is dissolved on October 15, 2028. The authority shall ensure that:

1. Legislature provide for termination. The Legislature shall provide for its termination; and

2. Payment of debt, bonds, premiums and interest. All No later than October 15, 2027, all bonds, the premium, if any, and the interest thereon shall have been paid or a sufficient amount for the payment of all bonds and the interest to maturity or prior redemption date thereon shall have has been irrevocably set aside in trust for the benefit of the bondholders . and all debts of the authority have been paid; and

3. Legislation. No later than November 1, 2027, the authority submits for introduction to the Second Regular Session of the 132nd Legislature a bill to transfer all of the duties, responsibilities and assets of the authority to the department and to provide for the sale of all unnecessary equipment, buildings and property owned by the authority and the removal of all the toll facilities on the turnpike, with the exception of the York toll facility.

Sec. 4. Submission of plan to Department of Transportation. No later than April 1, 2018, the Maine Turnpike Authority shall provide to the Department of Transportation a plan to accomplish the requirements set forth in this Act.

SUMMARY

This bill:

1. Prohibits the Maine Turnpike Authority from issuing any bonds after October 15, 2017;

2. Requires the Maine Turnpike Authority, no later than October 15, 2027, to set aside sufficient funds in trust to pay all its bonds and debts or to pay all its bonds and debts;

3. Requires the Maine Turnpike Authority, no later than April 1, 2018, to provide to the Department of Transportation a plan to accomplish the payment of outstanding debt held by the authority; and

4. Requires the Maine Turnpike Authority, no later than November 1, 2027, to submit for introduction to the Second Regular Session of the 132nd Legislature a bill to transfer all of the duties, responsibilities and assets of the authority to the department and to provide for the sale of all unnecessary equipment, buildings and property owned by the authority and the removal of all the toll facilities on the turnpike, with the exception of the York toll facility.

HP1113 LD 1617	Session - 128th Maine Legislature		LR 2247 Item 1
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