An Act To Recruit and Retain College Graduates through Loan Repayment
Maine Legislature, Session 122, LD 0399
Committee: Business, Research and Economic Development
Sponsors: FISCHER, MITCHELL, BOWEN, CAIN, CUMMINGS, DAVIS, BRENNAN, RA YE

Legislative Document 
No. 399 
H.P.302 
House of Representatives, January 25,2005 
An Act To Recruit and Retain College Graduates through Loan 
Repayment 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Representative FISCHER of Presque Isle. 
Cosponsored by Senator MITCHELL of Kennebec and 
111~ 
1J?7T/dC~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: BOWEN of Rockport, CAIN of Orono, CUMMINGS of Portland, DAVIS of 
Falmouth, Senators: BRENNAN of Cumberland, RA YE of Washington. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 20-A MRSA c. 428-8 is enacted to read: 
FUTURE 
rQlLXJ~U:",I:'B; __ ;rl!._J~AlNE LOAN 
REPAYMENT PROGRAM 
§12531. 
Definitions 
As 
used 
in this 
Gnpgter L..-.1.!Dless 
the 
context 
otherwise 
indicates, the following terms have the following meanings. 
1. 
Authority. 
"Authority" means the Finance Authority of 
Maine. 
2. 
Eligible 
emplo-Ym~mL....-p-osition. 
"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 a labor shortage area at the time of hire. 
3. 
Labor 
shQ~j;,~g~~~. 
"Labor shortage area" means 
a,n 
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. 
§12532. 
Future for Youth in ~ine Loan Repayment Program 
1. 
Establishment: admjnistration. 
There is established the 
Future for Youth in Maine Loan Repayment Program, referred to in 
this chapter as "the .Q£Qgram." 
The program is established to 
recruit and retain college graduates in the State to start new 
technology-based businesses and to work in labor shortage areas. 
The authority shall administer the program. 
2. 
Eligibility requirements. 
Eligibility requirements must 
be established by rule of the authority and, at a minimum, must 
include: 
A. 
That the applicant has received a bachelor' s degree or 
graduate degree within 2 years of the date of application: 
B. 
That the applicant has outstanding education loans; and 
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. 
4. 
Maximum 
loan 
repayment. 
The 
maximum 
loan 
repayment 
amount available to a participant in the program is $5,000 per 
year for a maximum of 4 years. 
5. 
Loan repayment 
ag~eement; provisions. 
The authority 
shall enter into loan repayment agreements with participants in 
the program on terms and conditions acceptable to the authority, 
which 
at 
a 
minimum 
must 
reguire 
the 
participant 
and 
the 
participant's employer to certify annually, before any payment by 
the authority under the loan repayment agreement may be made, 
that the participant has been employed in an eligible employment 
position for the preceding l2-month period. 
§12533. 
Nonlapsing 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, beguests 
and donations in addition to money appropriated or allocated by 
the State. 
Money received bv 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 must be 
used for the designated purposes of the fund and for the payment 
of 
administrative 
costs 
incurred 
by 
the 
authority 
for 
the 
operation of the program. 
§12534. 
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. 
§12535. 
Report 
The authority shall report on the program to the Department 
of Economic 
and Community Development, 
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, 2007 and annually thereafter. 
Sec. 
2. 
Appropriations 
and 
allocations. 
The 
following 
appropriations and allocations are made. 
FINANCE AUTHORITY OF MAINE 
Future for Youth in Maine Loan 
Repayment Program 
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 
2005-06 
$1,000,000 
$1,000,000 
2006-07 
$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.