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Maine Attorney General Reports and Opinions 1 (2005)

handle is hein.sag/sagme0004 and id is 1 raw text is: 05-1
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March 11 200>
Senator Ethan Strimling, Senate Chair
Representative William J Smith, House Chair
Joint Standing Committee on Labor
100 State House Station
raugusta, ME 04333-0002
Dear Senator Strinling and Representative Smith.
You have asked several questions concerning the Governor s proposal to sell
lottery revenues, proceeds from which arl- intended to be received by the State in fiscal
years 2006 and 2007 As we understand this proposal, the Legislature would authorize
the Commissioner of the Department of Admimstrative and Financial Services (DAFS)
to sell lottery revenues for a ten year period on terms that she deems appropriate, subject
to certain general terms and requirements established by statute. While we can provide
some general information concerning your questions, any legal analysis would be
incomplete without a detailed proposal to evaluate. This is particularly true with respect
to the applicability of federal tax provisions. which are quite complex and key to the
success of such a transaction.
We address your questions in the order that you have raised them.
I Would a proposal to securitize future State lottery revenue by issuing
bonds requir- voter approval pursuant to the Maine Constitution? Or could the proposal
legally involve the issuance of Maine governmental authontv bonds rather than general
obligation bonds, so that voter approval is not constitutionally required' The Committee
would areatv appreciate an explanation of the difference between these types of bonds as
well.

nm n Rccd %er

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