D. The Division of Finance and Administration; and

E. The Maine Education Assistance Division; and

F.__Legal.

Sec. 5. 10 MRSA §965, sub-§1, as repealed and replaced by PL 1993, c. 359, Pt. C, §2, is repealed.

Sec. 6. 10 MRSA §965, sub-§3, as amended by PL 1993, c. 359, Pt. C, §3, is further amended to read:

3. At-large members. Seven Nine members appointed by the Governor in accordance with the following and subject to review by the joint standing committee of the Legislature having jurisdiction over economic development matters and subject to confirmation by the Legislature must be appointed from at large. Two of the at-large members must be veterans and 2 of the at- large members must be knowledgeable in the field of natural resource enterprises or financing.

A.__Two of the at-large members must be veterans.

B.__Two of the at-large members must be knowledgeable in the field of natural resource enterprises or financing.

C.__One of the at-large members must be knowledgeable in the field of student financial assistance.

D.__One of the at-large members must be knowledgeable in the field of higher education.

Sec. 7. 10 MRSA §966, first ¶, as enacted by PL 1983, c. 519, §6, is amended to read:

The terms of office for the designated and at-large members defined in section 965, subsections 2 and 3, shall be are for 4 years, except for initial appointees. The terms of office for the appointees who are selected board members, as defined in section 965, subsection 1, shall be coterminous with their terms of office with the boards from which they are selected.

Sec. 8. 10 MRSA §973, as repealed and replaced by PL 1995, c. 462, Pt. A, §16, is amended to read:

§973. Conflicts of interest

Notwithstanding Title 5, section 18, subsection 1, paragraph B, each member of the authority, each member of the Maine Education Assistance Board and each employee, contractor, agent or other representative of the authority is deemed an "executive employee" solely for purposes of Title 5, section 18, and for no other purpose, except that the chief executive officer in addition is deemed an "executive employee" for purposes of Title 5, section 19. Title 17, section 3104 does not apply to any of those representatives.

Sec. 9. 10 MRSA §984, sub-§2, ¶L, as amended by PL 1987, c. 534, Pt. B, §§9 and 23, is further amended to read:

L. Receive advice and assistance from, and coordinate its programs with, the Department of Economic and Community Development, the Maine State Housing Authority, the Maine Development Foundation, the Maine Capital Corporation, the Maine Natural Resource Capital Corporation and other state agencies with relevant expertise. In addition, programs authorized in this subchapter may be coordinated or combined with other public and private national, state, regional or local programs that the agency determines will facilitate the purposes of this subchapter; and

Sec. 10. 10 MRSA §985, as amended by PL 1989, c. 4, §2, is repealed.

Sec. 11. 10 MRSA §1013, sub-§15, as amended by PL 1997, c. 732, §2, is further amended to read:

15. Scholarships for Maine Fund. The Scholarships for Maine Fund, as established in Title 20-A, chapter 419-C; and

Sec. 12. 10 MRSA §1013, sub-§16, as enacted by PL 1997, c. 732, §3, is amended to read:

16. Maine College Savings Program. The Maine College Savings Program, as established in Title 20-A, chapter 417-E.; and

Sec. 13. 10 MRSA §1013, sub-§17 is enacted to read:

17.__Maine Dental Education Loan Program.__The Maine Dental Education Loan Program as established in Title 20-A, chapter 426.

Sec. 14. 10 MRSA §1016, as amended by PL 1995, c. 519, §4, is repealed.

Sec. 15. 10 MRSA §1026-D, sub-§3, ¶B, as amended by PL 1987, c. 697, §8, is further amended to read:

B. The original principal amount of the mortgage loan, including any mortgage loan secured by a coordinate or priority lien or security interest in the same eligible collateral which that is proposed to secure repayment of the insured mortgage loan, shall may not exceed the sum of the following percentages of the cost or value, as determined by the authority at the time of application for mortgage insurance, of eligible collateral held, owned, controlled or used by any eligible enterprise:

(1) One hundred percent of the cost or value of real estate designed as an industrial park or 100% of the value of cash, deposits of money, certificates of deposit or other cash equivalents, irrevocable letters of credit issued by financial institutions acceptable to the authority or loan guarantees from insurance companies or other institutions satisfactory to the authority;

(2) Ninety percent of the cost or value of real estate or 90% of the amount of accounts receivable determined by the authority to be eligible;

(3) Eighty percent of the cost or value of eligible collateral consisting primarily of one or more fishing or other vessels;

(4) Seventy-five percent of the cost or value of eligible collateral consisting primarily of machinery and equipment;

(5) Notwithstanding subparagraph (2), 75% of the cost or value of eligible collateral held, owned, controlled or used by a recreational enterprise; or

(6) Sixty Seventy percent of the cost or value of other eligible collateral.

Sec. 16. 10 MRSA §1076, sub-§4, as enacted by PL 1997, c. 518, §2, is amended to read:

4. Establishment of accounts. A financial institution approved by the authority may establish family development accounts pursuant to this subchapter. The financial institution shall certify to the authority in the manner required by the authority that accounts have been established pursuant to the provisions of this subchapter and that deposits have been made on behalf of account holders. A financial institution establishing a family development account shall:

A. Keep the account in the name of the account holder;

B. Permit deposits to be made into the account by the account holder or a community development organization on behalf of the account holder, including money deposited to match the account holder's deposits. Matching contribution deposits may not exceed $2000 per year and must be approved in writing by the community development organization. An account with a balance exceeding $10,000 is ineligible for matching contribution deposits;

C. Credit interest to the account at a rate equal to or higher than the rate applicable to comparable accounts within the financial institution; and

D. Permit the account holder, after obtaining the cosignature of the administrator of the community development organization, to withdraw money from the account for any of the purposes listed in section 1077, subsection 1.; and

E.__Require the account holder to allow the financial institution to provide all account information to the community development organization.

Sec. 17. 10 MRSA §1079, sub-§1, as amended by PL 1999, c. 628, §1, is further amended to read:

1. Committee membership. The committee consists of 15 12 members as follows:

A. Five Four members appointed by the Governor, including one representative of the Maine State Housing Authority, one representative of the Department of Economic and Community Development, one representative of the Department of Human Services and 2 representatives of financial institutions participating in the program;

B. Five Four members appointed by the Speaker of the House of Representatives, including 2 persons one person who are is an account holders holder or are is eligible to be an account holders holder, 2 representatives of contributors of matching funds to the program and one representative of a community development organization; and

C. Five Four members appointed by the President of the Senate, including one representative of a contributor of matching funds to the program, one representative of a statewide community development foundation, one person who

is an account holder or is eligible to be an account holder and 2 representatives one representative of a community development organizations organization.

Members from state departments serve at the pleasure of their appointing authorities. All other members serve 3-year terms and may continue to serve beyond their terms until their successors are appointed but may not be appointed to subsequent consecutive terms. If a vacancy occurs before a term has expired, the vacancy must be filled for the remainder of the unexpired term by the authority who made the original appointment. If a member is absent for 2 consecutive meetings and has not been excused by the chair from either meeting, the committee may remove the member by majority vote.

Sec. 18. 10 MRSA §1100-T, sub-§2, ¶A, as amended by PL 1999, c. 752, §1, is further amended to read:

A. A tax credit certificate may be issued in an amount not more than 30% of the amount of cash actually invested in a Maine business in any calendar year. For certificates issued prior to July 1, 2001 for investments made after July 1, 2000, the tax credit certificate may be issued in an amount not more than 40% of the amount of cash actually invested in a Maine business in any calendar year.

Sec. 19. 10 MRSA §1100-T, sub-§2-A, as amended by PL 1997, c. 774, §1, is further amended to read:

A. A tax credit certificate may be issued to an individual who invests in a private venture capital fund in an amount that:

(1) Is not more than 30% of the amount of cash actually invested in a private venture capital fund in any calendar year by the individual or entity; and

(2) Does not exceed 30% of the amount of cash invested by the fund in eligible businesses, except that the authority may issue tax credit certificates in an amount not to exceed 15% of the amount of cash actually invested in or unconditionally committed to a private venture capital fund in any calendar year if the authority determines that the private venture capital fund is located in this State, is owned and controlled primarily by Maine residents and has designated investing in eligible Maine businesses as a major investment objective.__The credit may be revoked to the extent that the private venture capital fund does not make investments eligible for the tax credit in an

amount sufficient to qualify for the credits within 3 years after the date of the tax credit certificates.__ Notwithstanding any revocation pursuant to this subparagraph, each investor remains eligible for tax credit certificates for eligible investments as and when made by the private venture capital fund.

The aggregate amount of credits issued to investors in a fund may not exceed 30% of the amount of cash invested by the fund in eligible businesses.

Sec. 20. 10 MRSA §1100-T, sub-§2-A, ¶D, as amended by PL 1997, c. 774, §1, is repealed and the following enacted in its place:

D.__The investment with respect to which any individual or entity is applying for a tax credit certificate may not be more than an aggregate of $200,000 in any one eligible business invested in by a private venture capital fund in any 3 consecutive calendar years, except that this paragraph does not limit other investment by any applicant for which that applicant is not applying for a tax credit certificate and except that, in the event the entity applying for a tax credit certificate is a partnership, limited liability company, corporation, nontaxable trust or any other entity that is treated as a flow-through entity for tax purposes under the federal Internal Revenue Code, the aggregate limit of $200,000 applies to each individual partner, member, stockholder, beneficiary or equity owner of the entity and not to the entity itself.

Sec. 21. 10 MRSA §1100-T, sub-§2-A, ¶E, as amended by PL 1997, c. 774, §1, is further amended to read:

E. Each business receiving an investment from a private venture capital fund, which investment is used as the basis for the issuance of a tax credit certificate, must have annual gross sales of $2,000,000 $3,000,000 or less and the operation of the business must be the full-time professional activity of the principal owner, as determined by the authority. The principal owner and principal owner's spouse are not eligible for a credit for investment in that business or the private venture capital fund. A tax credit certificate may not be issued to a parent, brother, sister or child of a principal owner if the parent, brother, sister or child has any existing ownership interest in that business or in for an investment by the private venture capital fund in that business.

Sec. 22. 10 MRSA §1100-T, sub-§2-A, ¶H, as amended by PL 1997, c. 774, §1, is repealed and the following enacted in its place:

H.__The investors in a private venture capital fund are not entitled to the credit for collective ownership in excess of 50% of any business.__An investor in a private venture capital fund determined by the authority to be a principal owner of a business and the principle owner's spouse are not entitled to a credit with respect to investment in that business, nor are the principal owner's parents, siblings or children entitled to a credit if they have any existing ownership interest in the business.

Sec. 23. 20-A MRSA §11484, sub-§1, ¶B, as enacted by PL 1997, c. 732, §4, is repealed.

Sec. 24. 20-A MRSA §11484, sub-§1, ¶¶B-1 and B-2 are enacted to read:

B-1.__One member appointed by the Governor with knowledge of student financial assistance;

B-2.__One member appointed by the Governor from at large;

Sec. 25. 20-A MRSA §11484, sub-§2, as enacted by PL 1997, c. 732, §4, is repealed and the following enacted in its place:

2.__Terms.__Members must be appointed for terms of 4 years.__ Members may be removed for cause.__The member appointed by the Governor under subsection 1, paragraph B-1 must be appointed for an initial term of 3 years.__The member appointed by the Governor under subsection 1, paragraph B-2 must be appointed for an initial term of 4 years.

Sec. 26. 20-A MRSA §12106, sub-§2, as enacted by PL 1991, c. 830, §4 and c. 832, §10, is amended by amending the first paragraph to read:

2. Members. The Advisory Committee on Medical Education consists of the following 21 19 members:

Sec. 27. 20-A MRSA §12106, sub-§2, ¶A, as enacted by PL 1991, c. 830, §4 and c. 832, §10, is amended to read:

A. Ten Nine members appointed by the chief executive officer and subject to approval by the joint standing committee of the Legislature having jurisdiction over education matters. Of these members:

(1) One must be a representative of a major statewide agency representing allopathic physicians;

(2) One must be a representative of a major statewide agency representing osteopathic physicians;

(3) One must be a representative of a major statewide agency representing family physicians;

(4) One must be a member of the major statewide agency representing hospitals;

(5) One must be a representative of the major statewide agency representing community health centers;

(6) One must be a representative of a nonprofit hospital medical services organization;

(7) One must be a representative of an association of commercial health insurance companies doing business in the State;

(8) One must be a representative of a statewide area health education center program; and

(9) Two must be at-large members;

Sec. 28. 20-A MRSA §12106, sub-§2, ¶C, as enacted by PL 1991, c. 830, §4 and c. 832, §10, is repealed.

Sec. 29. 20-A MRSA §12106, sub-§2, ¶E, as enacted by PL 1991, c. 830, §4 and c. 832, §10, is repealed and the following enacted in its place:

E.__Six members appointed by the chief executive officer and subject to approval by the joint standing committee of the Legislature having jurisdiction over education matters.__ These members must include:

(1)__A chief executive of a family practice residency in the State;

(2)__A representative of an institution of allopathic medical education at which the authority secures positions for students;

(3)__A representative of an institution of osteopathic medical education at which the authority secures positions for students;

(4)__A Maine student, resident or practicing physician who has obtained a position secured by the authority at an institution of allopathic medical education;

(5)__A Maine student, resident or practicing physician who has obtained a position secured by the authority at an institution of osteopathic medical education; and

(6)__A representative of a major teaching hospital in the State.

SUMMARY

This bill amends the Finance Authority of Maine Act in the following ways.

1. It modifies the definition of a major business expansion project to include the development of new systems.

2. It deletes an erroneous cross-reference to the definition of wartime veteran and substitutes the cross-referenced definition with a requirement that the Bureau of Maine Veterans' Services certify the wartime veteran status to the authority to determine eligibility for loan insurance programs targeted for veterans and wartime veterans.

3. It updates the names of the authority's divisions and combines Finance Authority of Maine's 2 business assistance divisions into one division for administrative purposes.

4. It removes references to the Maine Education Assistance Board, an advisory board to the authority repealed by this bill, and replaces the positions on the Finance Authority of Maine board held by members of the Maine Education Assistance Board with an individual knowledgeable in the field of student financial assistance and an individual generally knowledgeable in the field of higher education.

5. It removes outdated references to the Maine Capital Corporation and the Maine Natural Resources Capital Corporation, which no longer exist.

6. It repeals a reference to the Division of Natural Resources Financing and Marketing, which was repealed in 1993.

7. It updates the list of the higher education assistance programs managed by the Finance Authority of Maine.

8. It amends the loan amount that may be advanced against other eligible collateral when the authority insures a loan.

9. It clarifies the requirement that a community development organization must authorize the deposit of matching funds into a family development account, removes a requirement that a financial institution must obtain a cosignature before allowing a withdrawal of fund from a family development account and creates a requirement that information on accounts must be provided to the community development organization that is sponsoring the account.

10. It reduces the membership of the Advisory Committee on Family Development Accounts.

11. It amends the Maine Seed Capital Tax Credit Program so that amendments made regarding the administration of the issuance of tax credits for investments in private venture capital funds are retained after the provisions sunset on June 30, 2001.

12. It repeals the provisions naming 2 individuals from the Maine Education Assistance Board to the Advisory Committee on College Savings, replaces one member formerly named from the Maine Education Assistance Board with an individual with knowledge of higher education financial assistance, replaces the other individual with an at-large member and staggers the terms of the new members.

13. It modifies the membership of the Advisory Committee on Medical Education to remove representation by organizations that no longer exist and to widen the pool of potential candidates for participation in the program to allow former participants to serve on the committee. The bill also changes the status of 6 members from nonvoting to voting.