An Act To Renew the Promise of Higher Education
Maine Legislature, Session 123, LD 1020
Committee Amendment CA_A_S97 (Senate)
Amends: Title 20, Section 1070, 10 MRSA §1013

Majority 
COMMITTEE AMENDMENT "A " to S.P. 337, L.D. 1020, Bill, "An Act To 
Renew the Promise of Higher Education" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 10 MRS A §1013, sub-§16, as amended by PL 2001, c. 417, §12, is 
further amended to read: 
16. Maine College Savings Program. The Maine College Savings Program, as 
established in Title 20-A, chapter 417-E; aM 
Sec. 2. 
MRSA §1013, sub-§17, as enacted by PL 2001, c. 417, §13, is 
amended to read: 
17. Maine Dental Education Loan Program. The Maine Dental Education Loan 
Program as established in Title 20-A, chapter 426~; and 
Sec. 3. 10 MRSA §1013, sub-§18 is enacted to read: 
18. Maine's Promise Grant Program. The Maine's Promise Grant Program as 
established in Title 20-A, chapter 419-E. 
Sec. 4. 20-A MRSA c. 419-E is enacted to read: 
CHAPTER 419-E 
MAINE'S PROMISE GRANT PROGRAM 
§11681. Maine's Promise Grant Program 
The Maine's Promise Grant Program, referred to in this chapter as "the program," is 
established to provide need-based grants to students from low-income households who 
have been admitted to public institutions of higher education located within this State. 
The program is administered by the Finance Authority of Maine, referred to in this 
chapter as "the authority." 
Under this program, grants must be awarded to eligible 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A .. to S.P. 337, L.D. 1020 
students to eliminate the unmet need and the necessity of student loans that would 
otherwise present a significant financial barrier to students from low-income households 
in this State who aspire to enroll in a public institution of higher education in this State 
and to attain an associate degree or a baccalaureate degree. 
§11682. Maine's Promise Grant Fund; nonlapsing fund 
The Maine's Promise Grant Fund, referred to in this chapter as "the fund," is 
established under the jurisdiction of the authority to carry out the purposes of this chapter. 
The authority may receive and expend, on behalf of the fund, money from gifts, grants, 
bequests and donations or other sources in addition to money appropriated or allocated by 
the State. All money credited to the program must be distributed as need-based grants for 
eligible students. Any unexpended balance in the fund carries over for continued use in 
the program under this chapter. 
§11683. Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1. Cost of attendance. "Cost of attendance" means the tuition, fees, room and board 
and other approved education expenses charged to resident students in attendance at a 
public institution of higher education for the academic year. 
Approved education 
expenses include but are not limited to expenses for books, personal expenses and other 
education expenses as determined by the authority by rules adopted in accordance with 
Title 5, chapter 375. The rules must be uniformly applied to all students. 
2. Eligible program of study. "Eligible program of study" means an associate 
degree program or a baccalaureate degree program. 
3. 
Expected family contribution. 
"Expected family contribution" means the 
amount that the family of a student may be reasonably expected to contribute toward 
postsecondary education for the academic year for a student in attendance at a public 
institution of higher education. 
The expected family contribution is the sum of the 
parental contribution and the student and spouse contribution. 
The method of 
determining the expected family contribution must be uniformly applied to all students as 
determined by the authority by rules adopted in accordance with Title 5, chapter 375. 
4. Public institution of higher education. "Public institution of higher education" 
means the University of Maine System, the Maine Community College System or Maine 
Maritime Academy. 
5. Grant. "Grant" means a grant awarded under the Maine's Promise Grant Program 
authorized under this chapter. 
6. 
Unmet need. "Unmet need" means the difference between the total cost of 
attendance for an academic year at a public institution of higher education and the total of 
all sources of financial assistance, including scholarships, grants, work-study programs 
and all other available sources, except for loans, as determined by the authority by rules 
adopted in accordance with Title 5, chapter 375. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ':.4 "to S.P. 337, L.D. 1020 
§11684. Eligibility 
Under the program, a grant may be given to a resident of the State who: 
1. Graduated. Has graduated from an approved secondary school in this State or 
has successfully completed a high school equivalency diploma or its equivalent in the 
State, as described in Title 20-A, section 257, at the time of application; 
2. 
Accepted as undergraduate. 
Has been accepted for enrollment as an 
undergraduate at a public institution of higher education in an eligible program of study 
and has not received a previous associate degree or baccalaureate degree; 
3. Applied for student financial aid. Has completed an application by March 1 st 
and applied for federal student financial aid programs, the Maine State Grant Program, 
tuition waiver programs and any institutional student financial aid programs for which the 
student may be eligible; 
4. Unmet need for financial assistance. Has been determined by the authority to 
have an unmet need for financial assistance according to the criteria set forth in section 
11685 that, if not met, will prevent the student from enrolling in an eligible program of 
study at the public institution of higher education of that student's choice; and 
5. State residency requirements. 
Has been determined by the authority to have 
met the state residency requirements that may be established by the authority by rules 
adopted in accordance with Title 5, chapter 375. 
§11685. Determination of need 
A grant provided under the program must be awarded to eliminate the unmet need of 
an eligible student and the necessity of student loans that would otherwise be necessary 
for an eligible student to meet the cost of attendance at a public institution of higher 
education. The authority shall establish the need of a student for a grant for the academic 
year for which the student applies. A grant may be awarded only to an eligible student 
whose reported annual family income is at or below the established federal poverty level 
at the time the student is accepted as an undergraduate student at a public institution of 
higher education. A student is considered to qualify for a grant if the total of the cost of 
attendance minus the expected family contribution minus estimated student financial 
assistance not received under the program is greater than zero. For a student to receive a 
grant under the program, the total of the expected family contribution, together with any 
other student financial assistance received by the student, may not exceed the student's 
cost of attendance at the public institution of higher education. 
§11686. Duration of grant; withdrawal 
1. Duration of grant. A grant provided under the program is for a period not to 
exceed one academic year. 
2. Withdrawal. If a student recipient of a grant withdraws from an institution and 
the student is entitled to a refund of tuition, fees or other charges, the institution shall 
make a refund payment directly to the authority in accordance with the institution's 
refund policy. The authority shall deposit any such refunds into the fund to be awarded 
to other eligible students. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to S.P. 337, L.D. 1020 
§11687. Program administration 
1. 
Responsibility of authority. 
The authority shall administer the program, 
including establishing and maintaining fund accounting and control procedures as 
required by state law or as necessary for the State to be eligible to receive federal 
assistance under the Federal Student Assistance Program, Higher Education Act of 1965, 
Title IV, Part A, Subpart 3, as amended, United States Code, Title 20, Sections 1070c-1, 
1070c-2 and 1 070c-3. 
2. Guidelines and rules. The following provisions apply to the program. 
A. The authority shall develop rules, procedures, schedules and forms necessary to 
carry out the purposes of the program. 
B. To the maximum extent possible and consistent with the need for state control of 
this program, the authority shall use the guidelines, rules, regulations, procedures, 
forms and schedules set forth by the Secretary of Education for the administration of 
the Federal Student Assistance Program, Higher Education Act of 1965, Title IV, Part 
A, Subpart 1, as amended, United States Code, Title 20, Section 1070c. 
§11688. Reduction of institutional scholarship or other grant aid prohibited 
A grant received by a student under this chapter must be provided to remove the total 
unmet need and may not be applied to reduce institutional scholarship or other grant aid 
to that student. A public institution of higher education may not consider the amount of 
the grant awarded under the program in determining the amount of institutional 
scholarship or other grant aid that a student with demonstrated financial need is eligible to 
receive under the institution's financial aid policies. 
§11689. Rules 
The authority shall adopt rules to implement this chapter. Rules adopted pursuant to 
this section are major substantive rules as defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 5. Appropriations and allocations. The following appropriations and 
allocations are made. 
FINANCE AUTHORITY OF MAINE 
Maine's Promise Grant Program N019 
Initiative: Appropriates ongoing funds to the Finance Authority of Maine to establish and 
administer the Maine's Promise Grant Program to provide need-based grants to students 
from low-income households who have been admitted to a public institution of higher 
education in the State. 
GENERAL FUND 
2007-08 
2008-09 
All Other 
$3,330,300 
$3,363,182 
GENERAL FUND TOTAL 
$3,330,300 
$3,363,182 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A- " to S.P. 337, L.D. 1020 
SUMMARY 
This amendment is the majority report of the Joint Standing Committee on Education 
and Cultural Affairs. The amendment establishes the Maine's Promise Grant Program, a 
need-based grant program to eliminate the unmet need and the necessity of student loans 
that would otherwise present a significant financial barrier to resident students from low-
income households to enrolling in an associate degree program or a baccalaureate degree 
program at a public institution of higher education in this State for one year. The purpose 
of the grant program is to allow students whose reported annual family income is at or 
below the established federal poverty level to enroll in an associate degree program or a 
baccalaureate degree program free of tuition and fee charges for one year in the 
University of Maine System, the Maine Community College System or at Maine 
Maritime Academy. The amendment provides that a person is eligible for a grant under 
the program if the person: 
1. Is a Maine resident who has graduated from an approved secondary school in the 
State or has successfully completed a high school equivalency diploma or its equivalent 
in the State; 
2. Has been accepted for enrollment as an undergraduate in an eligible program of 
study and has not received a previous associate degree or baccalaureate degree; 
3. Has completed an application for federal student financial aid programs and any 
institutional student financial aid programs for which the person may be eligible and an 
application for the Maine State Grant Program; and 
4. Has a reported annual family income that is at or below the established federal 
poverty level as certified by the Finance Authority of Maine. 
The amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/30107 Mac:.. 
LD 1020 
LR 96(02) 
An Act To Renew the Promise of Higher Education 
Fiscal Note for Bill as Amended by Committee Amendment "A " 
Committee: Education and Cultural Affairs 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
2008-09 
$3,330,300 
$3,363,182 
$3,330,300 
$3,363,182 
Projections 
2009-10 
$3,436,150 
$3,436,150 
Projections 
2010-11 
$3,511,745 
$3,511,745 
This bill includes ongoing General Fund appropriations totaling $3,330,300 in fiscal year 2007-08 and $3,363,182 in 
fiscal year 2008-09 for the Finance Authority of Maine to establish and administer the Maine's Promise Grant 
Program. Of these amounts, $3,281,000 and $3,353,182 is appropriated in fiscal years 2007-08 and 2008-09, 
respectively, to provide need-based grants to students from low-income households who have been admitted to a 
public institution of higher education in the State. The cost estimates are based on the following assumptions: I) the 
grant award is available to individuals with an expected family contribution (EFC) of zero; 2) the cost of attendance 
at the Community College is estimated to be $10,500; 3) an estimated unmet need of approximately 15%; 4) the 
number of students with a zero EFC is estimated to be 2,500 based on the 2006 F AFSA filings for Maine residents; 
and 5) a 75% anticipated participation rate. The cost will be higher or lower based on actual experience. 
This bill also includes ongoing General Fund appropriations of $49,300 in fiscal year 2007-08 and $10,000 per year 
beginning in fiscal year 2008-09 for the initial start-up costs and ongoing administrative costs associated with 
administering the program. 
LR0096(02) - Fiscal Note - Page I of I