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An Act To Authorize a General Fund Bond Issue To Ensure Clean Water and Safe Communities
Preamble.  Two thirds of both Houses of the Legislature deeming it necessary in accordance with the Constitution of Maine, Article IX, Section 14 to authorize the issuance of bonds on behalf of the State of Maine to provide funds as described in this Act,
Be it enacted by the People of the State of Maine as follows:
PART A
Sec. A-1. Authorization of bonds. The Treasurer of State is authorized, under the direction of the Governor, to issue bonds in the name and on behalf of the State in an amount not exceeding $50,000,000 for the purposes described in section 6 of this Part. The bonds are a pledge of the full faith and credit of the State. The bonds may not run for a period longer than 10 years from the date of the original issue of the bonds.
Sec. A-2. Records of bonds issued; Treasurer of State. The Treasurer of State shall ensure that an account of each bond is kept showing the number of the bond, the name of the successful bidder to whom sold, the amount received for the bond, the date of sale and the date when payable.
Sec. A-3. Sale; how negotiated; proceeds appropriated. The Treasurer of State may negotiate the sale of the bonds by direction of the Governor, but no bond may be loaned, pledged or hypothecated on behalf of the State. The proceeds of the sale of the bonds, which must be held by the Treasurer of State and paid by the Treasurer of State upon warrants drawn by the State Controller, are appropriated solely for the purposes set forth in this Part. Any unencumbered balances remaining at the completion of the project in this Part lapse to the Office of the Treasurer of State to be used for the retirement of general obligation bonds.
Sec. A-4. Interest and debt retirement. The Treasurer of State shall pay interest due or accruing on any bonds issued under this Part and all sums coming due for payment of bonds at maturity.
Sec. A-5. Disbursement of bond proceeds.The proceeds of the bonds must be expended as set out in this Part under the direction and supervision of the Water Resources Commission.
Sec. A-6. Allocations from Highway Fund and General Fund bond issue.  The proceeds of the sale of the bonds authorized under this Part must be expended as designated in the following schedule.

WATER RESOURCES COMMISSION		

Provides funds to ensure clean water and safe communities; to protect drinking water sources; to allow communities to better prepare for extreme storms and floods; to protect, enhance and restore state waters and wetlands and fish, game and wildlife habitat; to create jobs and vital public infrastructure; and to strengthen the State's long-term economic base and competitive advantage.

Total	$50,000,000	
 
Sec. A-7. Contingent upon ratification of bond issue. Sections 1 to 6 do not become effective unless the people of the State ratify the issuance of the bonds as set forth in this Part.
Sec. A-8. Appropriation balances at year-end. At the end of each fiscal year, all unencumbered appropriation balances representing state money carry forward. Bond proceeds that have not been expended within 10 years after the date of the sale of the bonds lapse to the Office of the Treasurer of State to be used for the retirement of general obligation bonds.
Sec. A-9. Bonds authorized but not issued. Any bonds authorized but not issued within 5 years of ratification of this Part are deauthorized and may not be issued, except that the Legislature may, within 2 years after the expiration of that 5-year period, extend the period for issuing any remaining unissued bonds for an additional amount of time not to exceed 5 years.
Sec. A-10. Referendum for ratification; submission at election; form of question; effective date. This Part must be submitted to the legal voters of the State at a statewide election held in the month of November following passage of this Act. The municipal officers of this State shall notify the inhabitants of their respective cities, towns and plantations to meet, in the manner prescribed by law for holding a statewide election, to vote on the acceptance or rejection of this Part by voting on the following question:
 
"Do you favor a $50,000,000 bond issue to ensure clean water and safe communities across Maine; to protect drinking water sources; to allow communities to better prepare for extreme storms and floods; to protect, enhance and restore our lakes, rivers, streams, groundwater, wetlands and fish, game and wildlife habitat; to create jobs and vital public infrastructure; and to strengthen the State's long-term economic base and competitive advantage?"
 
The legal voters of each city, town and plantation shall vote by ballot on this question and designate their choice by a cross or check mark placed within a corresponding square below the word "Yes" or "No." The ballots must be received, sorted, counted and declared in open ward, town and plantation meetings and returns made to the Secretary of State in the same manner as votes for members of the Legislature. The Governor shall review the returns. If a majority of the legal votes are cast in favor of this Part, the Governor shall proclaim the result without delay and this Part becomes effective 30 days after the date of the proclamation.
The Secretary of State shall prepare and furnish to each city, town and plantation all ballots, returns and copies of this Part necessary to carry out the purposes of this referendum.
PART B
Sec. B-1.  5 MRSA Pt. 15-C  is enacted to read:
PART 15-C
WATER RESOURCES COMMISSION
CHAPTER 357
WATER RESOURCES COMMISSION
§ 6401. Definitions.
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
 
1.  Appraised value.     "Appraised value" means the fair market value of property without the consideration of the effect, if any, of dedication or other preservation-related restrictions.
 
2.  Built infrastructure.     "Built infrastructure" means a human-made structure, including, but not limited to, a stream crossing or culvert upgrade, storm water management project, irrigation system enhancement and other site improvement.
 
3.  Commission.     "Commission" means the Water Resources Commission, as established in section 12004-G, subsection 29-E.
 
4.  Cooperating entities.     "Cooperating entities" means private nonprofit organizations, municipal conservation commissions, local governments, water districts, federal agencies or other bodies designated by the Water Resources Commission that can assist the State in the conservation or management of the State's water resources.
 
5.  Fund.     "Fund" means the Fund To Ensure Clean Water and Safe Communities as established in section 6402.
 
6.  Low-impact development.     "Low-impact development" means an approach to storm water management that promotes the use of natural systems and processes in land development or redevelopment projects to reduce runoff and pollutant loading, including, but not limited to, rain gardens, vegetated rooftops, rain barrels and permeable pavements.
 
7.  Matching funds.     "Matching funds" means any combination of public and private funds used in conjunction with the fund for the purpose of this chapter, including, but not limited to, private contributions of cash or securities; money from municipal or other public agencies; money from a federal matching program, subject to the limitations of applicable federal and state laws, in an amount authorized by the federal matching program; contributions of real property or interest in real property that serve the conservation needs of the State as determined by the Water Resources Commission; and in-kind contributions or any combination of those funds. For purposes of this section contributions of land or interest in land must be valued in the amount of their appraised value.
 
8.  Natural infrastructure.     "Natural infrastructure" means areas of undeveloped natural habitat, including, but not limited to, aquifer recharge areas, headwater forests, freshwater or coastal wetlands, lakes and ponds, rivers, streams and their floodplains and eelgrass beds.
 
9.  Stream connectivity.     "Stream connectivity" means the capacity of a waterway to pass wildlife and materials up and downstream throughout an aquatic network consisting of rivers, streams, brooks, floodplains and tributary lakes and ponds.
 
10.  Water resources.     "Water resources" means drinking water, groundwater, surface water, commercial and recreational fisheries, waterfowl, fish, wildlife and aquatic species and the ecosystem functions associated with water resources.
§ 6402. Fund To Ensure Clean Water and Safe Communities
 
1.  Fund established.     There is established the Fund To Ensure Clean Water and Safe Communities, which is administered by the commission. The fund consists of the proceeds from the sale of any bonds authorized for the purposes set forth in this chapter and any funds received as contributions from private and public sources for those purposes. The fund must be held separate and apart from all other money, funds and accounts. Eligible investment earnings credited to the assets of the fund become part of the assets of the fund. Any balance remaining in the fund at the end of any fiscal year does not lapse and must be carried forward for the next fiscal year.
 
2.  Fund available.     The fund is available to state agencies and designated cooperating entities upon authorization of the commission for the purposes of this chapter.
 
3.  Fund proceeds.     The proceeds of the fund must be divided evenly between natural infrastructure and built infrastructure projects qualified under section 6407 and distributed as follows:
 
A.  Of the total allocation to natural infrastructure:
 
(1) When the qualified proposals exceed available funds, no less than 70% must be distributed to qualified projects to conserve water resources through the acquisition of real property or certain rights to property that achieve the water resource conservation goals of this chapter;
 
(2) When the qualified proposals exceed available funds, no less than 20% must be distributed to qualified projects to restore water quality and habitat that achieve the water resource conservation goals of this chapter; and
 
(3) When the qualified proposals exceed available funds, up to 10% may be distributed to other qualified projects to attain the water resource conservation goals of this chapter; and
 
B.  Of the total annual allocation to built infrastructure:
 
(1) When the qualified proposals exceed available funds, no less than 65% must be distributed to qualified projects to address removal, rehabilitation or properly sized replacement of existing barriers, including culverts, which may not obstruct stream connectivity;
 
(2) When the qualified proposals exceed available funds, no less than 25% must be distributed to qualified low-impact development projects to address the abatement of stormwater or other nonpoint source pollution; and
 
(3) When the qualified proposals exceed available funds, up to 10% may be distributed to other qualified projects to attain the water resource conservation goals of this chapter, including, but not limited to, providing matching funds to qualified agricultural irrigation systems to attain the water use standards identified in Title 7, section 353 and Title 38, section 470-H.
§ 6403. Water Resources Commission established
The Water Resources Commission, as established in section 12004-G, subsection 29-E, shall carry out the purposes of this chapter.
 
1.  Composition.     The commission consists of 11 members, 5 of whom are members of the public and 6 of whom are ex officio members.
 
A.  The 5 public members are appointed by the Governor, subject to review by the joint standing committee of the Legislature having jurisdiction over natural resources matters and to confirmation by the Senate, and must be selected for their knowledge of the State's water resources and water-related infrastructure and their demonstrated commitment to water resource conservation and enhancement. Appointments must provide broad geographic representation.
 
Public members are appointed to 4-year terms and may not serve more than 2 consecutive 4-year terms.
 
B.  The ex officio members are the Commissioner of Agriculture, Conservation and Forestry; the Commissioner of Environmental Protection; the Commissioner of Health and Human Services; the Commissioner of Inland Fisheries and Wildlife; the Commissioner of Marine Resources; and the Commissioner of Transportation; or their designees.
 
2.  Chair.     The Governor shall appoint the chair of the commission from among its members.
 
3.  Assistance.     The Department of Agriculture, Conservation and Forestry; the Department of Environmental Protection; the Department of Health and Human Services; the Department of Inland Fisheries and Wildlife; the Department of Marine Resources; and the Department of Transportation shall provide necessary staff support and assistance to fulfill the objectives of this chapter. If agency assistance is not available, consultants from the private sector or nonprofit organizations may be hired from the proceeds of the fund to assist the commission in carrying out its responsibilities.
§ 6404. Commission meetings; rules and administrative proceedings
 
1.  Meetings.     The commission shall meet at least 4 times each year. The chair shall call the meetings of the commission. The commission shall use proceeds of the fund to cover the costs associated with all meetings.
 
2.  Rules.     The commission may adopt rules it considers necessary for the conduct of its business. Rules adopted under this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
 
3.  Quorum.     A quorum of the commission for the transaction of business is 6 members.
 
4.  Personal bias.     Commission members shall disclose any bias or personal financial interest, direct or indirect, that they have in relation to funding requests for natural and built infrastructure projects and recuse themselves from all decisions related to such funding requests. If a charge of bias or personal financial interest, direct or indirect, is filed against a member requesting that member to withdraw from a proceeding of the commission, that member shall attest to that member's ability to render an impartial decision. The remaining members of the commission shall vote on whether that member may participate in that particular funding decision and the commission's vote is a part of the record of that proceeding.
§ 6405. Commission responsibilities
The commission shall use proceeds of the fund to carry out its responsibilities under this section. The commission shall:
 
1.  Assessment.     Develop a water resources action plan for use in allocating the proceeds of the fund. The action plan must include an evaluation of the State's water resources and must describe the priorities, strategies and guidelines for the selection of qualified natural and built infrastructure projects to conserve them. The action plan must be updated every 5 years and must be implemented with opportunities for participation by interested state agencies, municipalities, relevant working groups and the public;
 
2.  Requests.     Solicit and receive funding requests from state agencies and cooperating entities proposed for natural and built infrastructure projects meeting commission guidelines;
 
3.  Funding request committee.     Designate a technical review committee to review all funding requests for natural and built infrastructure projects and to make recommendations to the commission on those funding requests that best meet commission guidelines. The committee consists of 11 members, 6 of whom are staff from each of the 6 state agencies represented as permanent members of the commission pursuant to section 6403, subsection 1, paragraph B and 5 of whom are private citizens with expertise relevant to the commission's overall goals;
 
4.  Process     Specify the process by which the distribution of proceeds from the fund for natural and built infrastructure is authorized; and
 
5.  Report.     By January 31st of every odd-numbered year, report to the joint standing committee of the Legislature having jurisdiction over natural resources matters on expenditures from the fund and revisions to the action plan developed under subsection 1. This report must include a summary of the projects funded from the fund during the reporting period and maps at a statewide level that show the location of all funded projects.
§ 6406. Notice to landowners
A state agency or cooperating entity submitting a funding request for a project that includes the acquisition of real property or interest in real property must provide the commission with documentation of the owner's willingness to sell the property or interest in the property. Prior to authorizing the distribution of proceeds from the fund for a project including the acquisition of property or interest in property, the commission shall publish a notice of its intent in a newspaper of general circulation in the area where the property is located that identifies the land proposed by the commission for acquisition and that notifies the residents of the area that the commission will accept public comments on the proposed acquisition.
§ 6407. Distribution criteria
 
1.  Distribution of funds.     The commission shall authorize the distribution of funds from the fund to state agencies and cooperating entities for projects for the protection and enhancement of the State's water resources that meet the criteria set forth in this section.
 
2.  Alignment with commission's action plan and overall goals.     In determining whether a proposed project may be funded in full or in part by the fund, the commission shall consider the extent to which the proposed project is consistent with the action plan developed pursuant to section 6405, subsection 1 and with the commission's overall goals to:
 
A.  Ensure an abundant and high-quality water supply statewide;
 
B.  Allow communities to more effectively prepare for storms and flood events;
 
C.  Conserve or restore habitat for fisheries, waterfowl, fish, wildlife and aquatic species and ecosystem function; and
 
D.  Target those watersheds that should receive highest priority for protective and corrective actions necessary to achieve the goals identified in Title 38, chapter 3, subchapter 1, article 4-A.
 
3.  Determination of statewide or regional significance.     In determining whether a proposed project may be funded in full or in part by the fund, the commission shall consider the location of the project site relative to statewide priority areas for drinking water protection, habitat conservation, stream connectivity, flood and drought protection or storm water management, as identified by a state agency or in other regional or municipal plans.
 
4.  Project readiness and feasibility.     In determining whether a proposed project may be funded in full or in part by the fund, the commission shall consider how ready the proposed project is to move forward and the likelihood that the project will achieve its stated objectives, including the qualifications of the cooperating entity and its capacity to complete the required actions.
 
5.  Cost-effectiveness.     Whenever possible, the fund must be used for projects that represent an efficient and cost-effective use of funds, including a consideration of available matching funds and potential avoided costs associated with the proposed project, as long as the proposed project meets all other criteria set forth in this chapter.
 
6.  Monitoring and management.     Prior to final approval of a project under this chapter, a person submitting a proposal for funding from the fund must provide a description of the monitoring and management envisioned for the project site along with associated costs. A description of management envisioned for the project site must demonstrate how the proposed project will meet the terms of the action plan set out in section 6405, subsection 1.
Sec. B-2.  5 MRSA §12004-G, sub-§29-E  is enacted to read:
 
29-E.     
Sec. B-3. Staggered terms of initial members. Notwithstanding the Maine Revised Statutes, Title 5, section 6403, subsection 1, paragraph A, the initially appointed public members of the Water Resources Commission must be appointed to staggered terms. Of the initial appointments, 2 members must be appointed to 2-year terms; 2 to 3-year terms; and one to a 4-year term.
Sec. B-4. Contingent upon ratification of bond issue. This Part does not become effective unless the people of the State ratify the issuance of the bonds as set forth in Part A of this Act.
 
SUMMARY
This bill authorizes a bond issue in the amount of $50,000,000 in order to make cost-effective investments in natural and built infrastructure to reduce threats to the State's water resources and provide a host of benefits for communities across Maine, including ensuring an abundant and high-quality drinking water supply, allowing communities to more effectively prepare for storms and flood events, conserving habitat for recreational fisheries, waterfowl and aquatic and wildlife species and strengthening the State's long-term economic base and competitive advantage. The bill establishes the Water Resources Commission and the Fund To Ensure Clean Water and Safe Communities. The commission is charged with assessing the State's water resource infrastructure needs and with allocating funds for resource conservation and development projects.