Sec. 3. 30-A MRSA §5953-D, sub-§4-A, as enacted by PL 1999, c. 776, §13, is amended to read:

4-A. Criteria; conditions for downtown improvement grants or loans. The Department of Economic and Community Development, in conjunction with the bank, shall develop criteria and conditions for the award of downtown improvement grants or loans to eligible municipalities after consultation with the state agencies listed in subsection 5 and subject to the requirements of this section. The department shall establish a preference for municipalities that are regional service centers or urban compact municipalities or have adopted a comprehensive plan consistent with section 4326.

Sec. 4. 30-A MRSA §6006-D, sub-§2, ¶¶B and C, as corrected by RR 1993, c. 2, §31, are amended to read:

B. To guarantee or insure, directly or indirectly, the payment of notes or bonds issued or to be issued by a municipality for the purpose of financing the construction of any capital improvement described in section 5953-D, subsection 1 or 1-A;

C. To guarantee or insure, directly or indirectly, funds established by municipalities for the purpose of financing construction of any capital improvement described in section 5953-D, subsection 1 or 1-A;

SUMMARY

This bill makes service center communities eligible for grants or loans under the Municipal Investment Trust Fund. It also adds that grants or loans may be used for downtown improvement projects and removes some of the program requirements for eligibility for a downtown improvement program.