Third in a series of stories this week explaining referendum questions that will be on the November ballot.

Maine voters will have a chance to weigh in this November on whether to approve a $25 million bond to fund research and development in targeted technology sectors.

Question 2 is one of five statewide referendums. If approved, the Maine Technology Institute, a nonprofit created and funded by the state to support Maine’s innovation economy, would oversee the distribution of funds through a competitive process.

Here are a few things to know before you vote:

What is Question 2?

Do you favor a bond issue of $25,000,000 to provide funds, to be awarded through a competitive process and to leverage matching private and federal funds on at least a one-to-one basis, for research and development and commercialization for Maine-based public and private institutions in support of technological innovation in the targeted sectors of life sciences and biomedical technology, environmental and renewable energy technology, information technology, advanced technologies for forestry and agriculture, aquaculture and marine technology, composites and advanced materials and precision manufacturing?

The question authorizes $25 million in bond funding for the state to invest in new research and development.

How did Question 2 come about?

Ballot questions for bond issues are drafted through the legislative process. Question 2 started as L.D. 416, which was sponsored by Sen. Teresa Pierce, D-Falmouth, and co-sponsored by a bipartisan coalition of lawmakers.

It passed in the House of Representatives and Senate, and was signed by Gov. Janet Mills.

Pierce told fellow lawmakers last year that the proposal will help Maine stay competitive in today’s economy by investing in and expanding key industries.

“Our state is at an inflection point,” she said in testimony to the Joint Standing Committee on Appropriations and Financial Affairs. “If we are to remain competitive in a rapidly growing economy, the time to invest in and expand our industries is now.”

How will the money be distributed?

If approved, the funds would be provided to the Maine Technology Institute for research and development as prioritized by the Maine Innovation Economy Advisory Board’s most recent innovation economy action plan and the Department of Economic and Community Development Office of Innovation’s most recent science and technology action plan.

The institute would begin fleshing out a funding program in early 2025 for eligible applicants, said Brian Whitney, president of the Maine Technology Institute.

Eligible applicants would include any Maine public or private entity that is engaged in one of seven technology sectors targeted by the state: life sciences and biomedical technology, environmental and renewable energy technology, information technology, advanced technologies for forestry and agriculture, aquaculture and marine technology, composites and advanced materials, and precision manufacturing.

Applicants are also required to “have some skin in the game” and must match MTI’s award with at least an equivalent amount of matching dollars, Whitney said.

The funds must be used to support capital projects, including facility construction, renovations or land purchase, equipment acquisition and certain technology upgrades.

How would proposals be evaluated?

MTI has not yet started developing the program guidelines but they would likely mirror past bond-funded programs, Whitney said.

The evaluation would likely include an assessment of overall economic impact, the potential for job growth and revenue, and whether the project is likely to attract additional investment.

MTI also would look at the team overseeing the project and its business model to see if they are likely to be successful, examine the innovation itself and review the targeted customer and market to ensure there is sufficient evidence of a market for the innovation.

They could also take into account other factors such as geography in order to ensure a statewide impact.

“The work fleshing out the program will begin in earnest following November’s vote and will most certainly include listening sessions across Maine so we can ensure that the program and funding has a consequential impact on Maine businesses and our economy,” Whitney said.

Has Maine done this before?

Yes. Maine voters last approved a research and development bond in 2017 with 61% of the vote in favor. That $50 million bond included $45 million in grants to be managed by the Maine Technology Institute and $5 million for a Small Enterprise Growth Fund to create jobs and economic growth by lending to or investing in small businesses.

According to the Maine Technology Institute, the $45 million was invested in 18 different projects and, along with $1 million in supplemental funding, generated more than 5,350 jobs and $1.4 billion in economic impact for the state.

Examples of the projects include funding for a Biddeford manufacturer of outdoor gear to invest in new production equipment, a state-of-the-art research mouse production facility for Jackson Laboratory in Ellsworth and the expansion of an aerospace facility in Bangor.

How much will the bond cost?

The bond is projected to potentially cost taxpayers $31.9 million after interest is included over its 10-year repayment schedule, according to the office of the state treasurer.

Is there any opposition to Question 2?

There are no political action committees aimed at opposing the question. A group supporting the question, Invest in Maine’s Future, has raised about $55,000 so far.

The secretary of state’s office did not receive any public comments on Question 2 or any of this year’s other statewide referendums.

A spokesperson for Gov. Janet Mills said last week that the governor hasn’t yet decided if she will weigh in on any referendums.