An Act To Recruit and Retain College Graduates through Loan Repayment (AFfER DEADLINE)
Maine Legislature, Session 121, LD 1864
Committee: Education and Cultural Affairs
Sponsors: FISCHER, HALL, COLWELL, CUMMINGS, SULLIVAN, THOMAS, DAGGETT, STANLEY

12lst MAINE LEGISLATURE 
Legislative Document 
No. 1864 
H.P.1387 
House of Representatives, February 24,2004 
An Act To Recruit and Retain College Graduates through Loan 
Repayment 
(AFfER DEADLINE) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
Presented by Representative FISCHER of Presque Isle. 
Cosponsored by Senator HALL of Lincoln and 
7J'l~ frl.1J?iI£~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: Speaker COLWELL of Gardiner, CUMMINGS of Portland, SULLIVAN of 
Biddeford, THOMAS of Orono, Senators: President DAGGETT of Kennebec, SA V AGE of 
Knox, STANLEY of Penobscot. 
Printed on recyded paper 
Be it enacted by the People of the State of Maine as follows: 
Sec.t. 20-A MRSA c. 428-A is enacted to read: 
CHAPTER 428-A 
nmnu: FOR XQQTlLILljAlNE LOAN 
REPAYMENT PROGRAM 
§12521. 
Definitions 
As 
used 
in this 
chapter, 
unless 
the 
context 
otherwise 
indicates, the following terms have the following meanings. 
1. 
Authority. 
"Authority" means the Finance Authority of 
Maine. 
2. 
Eligible 
employment 
position. 
"Eligible 
employment 
position" means 
a 
full-time position within the State as the 
founder or employee of 
a 
technology-based business 
developed 
within 
the 
Applied 
Technology 
Development 
Center 
System, 
as 
established in Title 5, section 15321, or a full-time position 
within an occupation or industry that is defined as 
a 
labor 
shortage area at the time of hire. 
3. 
Labor shortage area. 
"Labor shortage area" means an 
occupation or industry in the State identified by the Department 
of Labor, in consultation with the Department of Economic and 
Community Development, as facing a shortage of qualified workers. 
§12522. 
Future for Youth in Maine Loan Repayment Program 
1. 
Establishment; administration. 
There is established the 
Future for Youth in Maine Loan Repayment Program, referred to in 
this chapter as "the program." 
The program is established to 
recruit and retain college graduates in the State to start new 
technology-based 
businesses 
and 
to 
work 
in 
occupations 
and 
industries 
facing 
labor 
shortages. 
The 
authority 
shall 
administer the program. 
2. 
Eligibility regyirements. 
Eligibility requirements must 
be established by rule of the authority and, at a minimum, must 
include: 
A. 
That the applicant has received a bachelor 1 s degree or 
graduate degree within 2 years of the date of application; 
B. 
That the applicant has outstanding education loans; and 
Page I-LR2722(1) 
C. 
That the applicant is willing to accept and maintain 
employment in an eligible employment position. 
3. 
Application. 
An application to the program must be made 
directly to the authority at a 
time and in a 
format to be 
determined by the authority. 
L-
Maximum 
loan repayment. 
amount available to a participant 
year for a maximum of 4 years. 
The 
maximum 
loan 
repayment 
in the program is $5,000 per 
5. 
LOan 
repayment agreement: provisions. 
The 
authority 
shall enter into loan repayment agreements with participants, on 
terms and conditions acceptable to the authority, which at a 
m~n~mum must 
require 
the 
participant 
and 
the 
participant's 
employer to certify annually, before payment of any installment 
by the author ity under the loan repayment agreement, that the 
participant has been employed in an eligible employment position 
for the preceding 12-month period. 
Payment of any installment by 
the 
authority 
must 
be 
made 
directly 
for 
credit 
to 
the 
participant's account at the financial institution certified by 
the 
participant 
as 
responsible 
for 
administration 
of 
that 
person's student loans. 
§12523. 
Nonl~sing fund 
A nonlapsing, 
interest-earning, 
revolving fund 
under 
the 
jurisdiction of 
the 
authority is 
created 
to 
carry out 
the 
purposes of this chapter. 
The authority may receive, invest and 
expend, on behalf of the fund, money from gifts, grants, bequests 
and donations in addition to money appropriated or allocated by 
the State. 
Money received by the authority under this chapter 
must be invested by the authority, as- provided by law, with the 
earned income to be added to the fund. 
Money in the fund, except 
interest income, must be used for the designated purpose of the 
fund; interest income may be used for the designated purpose or 
to pay administrative costs incurred by the authority for the 
operation of the program. 
§12524. 
Rules 
The authority shall establish rules necessary to implement 
this chapter. 
Rules adopted pursuant to this section are routine 
technical rules as defined in Title 5, chapter 375, subchapter 
2-A. 
§12525. 
Report 
The 
authority 
shall 
report 
on 
the 
program 
to 
the 
policy-making body established to direct a coordinated effort to 
develop, 
realign, 
streamline and oversee the State's economic 
development policy and specific efforts to retain and attract 
young people, to the joint standing committee of the Legislature 
having jurisdiction over education matters 
and to 
the 
joint 
standing committee of the Legislature having jurisdiction over 
business matters no later than January 15, 
2005 and annually 
thereafter. 
Sec. 
2. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
FINANCE AUTHORITY OF MAINE 
Future for Youth in Maine Loan 
Repayment Program 
The 
following 
Initiative: 
Provides funds for loan repayment for graduates who 
are employed in new technology-based businesses or in occupations 
or industries that are facing labor shortages. 
General. Fund 
All Other 
General Fund Total 
SUMMARY 
2003-04 
$0 
$0 
2004-05 
$1, 000, 000 
$1, 000,000 
This bill establishes the Future for Youth in Maine Loan 
Repayment Program to recruit and retain college graduates to 
start new technology-based businesses and to work in occupations 
and industries facing labor shortages in the State. 
The program 
provides loan repayments of up to $5,000 per year for a maximum 
of 4 years for graduates who are employed in new technology-based 
businesses 
within 
the 
Applied 
Technology 
Development 
Center 
System or in occupations or industries that are facing labor 
shortages. 
The bill directs the Finance Authority of Maine to 
administer the program.