An Act To Encourage Veterinary Practice in Maine
Maine Legislature, Session 124, LD 0352
Committee: Education and Cultural Affairs
Sponsors: MITCHELL, CLEARY, HUNT, PIEH
Amends: 5 MRSA §12004-I

FIRST P£GULAR SESSION-2009 
Legislative Document 
No. 352 
S.P. 116 
In Senate, February 3, 2009 
An Act To Encourage Veterinary Practice in Maine 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
Presented by President MITCHELL of Kennebec. 
9tf){J~ 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Representatives: CLEARY of Houlton, HUNT of Buxton, PIEH of Bremen. 
Printed an recY(.led Wiper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §12004-I, sub-§7-D is enacted to read: 
7-D. 
Education 
Ad..Y.iso!Y....Committee Not Authorized 
on '.; eterinaa 
Medical Education 
Sec. 2. 20-A MRSA c. 426-A is enacted to read: 
CHAPTER 426-A 
20-AMRSA §12314 
MAINE SCHOOL OF VETEJRINARY MEDICINE LOAN PROGRAM 
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§12311. 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. Chief executive officer. "Chief executive officer" means the Chief Executive 
Officer of the Finance Authority of Maine. 
3. Maine resident. "Maine resident" means a person who has been a resident of the 
State for a minimum of 2 years for purposes other than education at the time of the 
person's entry to a school of veterinary medicine as determined by rule of the authority. In 
determining residency, the authority shall consider: 
A. Length of residence in the State for other than tuition purposes; 
B. Secondary school attended; 
C. Legal residence of parents; 
D. Place of voting registration, if registered to vote; 
E. Place where taxes are paid; and 
F. Other indicators established by the authority. 
4. Program. "Program" means the Maine School of Veterinary Medicine Loan 
Program. 
5. Underserved specialty. "Underserved specialty" means a veterinary medical 
specialty related to large animals in which there are insufficient practitioners either 
throughout the State or within a designated geographical area of the State as determined 
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py rule of the Commis~ioner of Agriculture, Food and Rural Resources. 
Page I - 124LR0342(OI)-1 
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§12312. Maine Schooi of Veterinary Medicine Lo~n'Program 
1. Establishment. The Maine School of Veterinary Medicine Loan Program is 
established. The authority shall administer the program. Under this program, beginning 
in fiscal year 201.0-11, the chief executive officer shall award up to 3 loans or loan 
repayment agreements annually up to an aggregate of 12. As provided in subsection 3: 
A. 
Loans are available to Maine residents enrolled in a school of veterinary 
medicine; or 
B. A loan repayment agreement is available to a person who is eligible for licensure 
as a veterinarian 'in the State and who has outstanding school of veterinary medicine 
loans. 
2. Application process. Application for participation in the program must be made 
directly to the authority. 
3. Eligibility. The following persons are eligible to participate in the program: 
A. 
Applicants under subsection 1, paragraph A who meet eligibility criteria 
established by rule of the authority, which at a minimum must require: 
(1) That the student be a Maine resident; 
(2) That the student be enrolled in a school of veterinary medicine; and 
(3) That priority be given to a student: 
(a) Who previously received a loan pursuant to this section; 
(b) Who exhibits financial need; and 
ec) Who demonstrates an interest in practicing an underserved specialty; and 
B. 
Applicants under subsection 1, paragraph B who meet eligibilitv criteria 
established by rule of the authority, which at a minimum must require: 
(1) That the applicant be eligible for licensure to practice veterinary medicine in 
the State; 
(2) That the applicant have outstanding school of veterinary medicine loans; and 
(3) That the applicant be willing to practice an underserved specialty. 
4. Maximum amount. The maximum loan or loan repayment amount available 
under the program to each participant is $20,000 per year for a period of up to 4 years. 
5. Loan agreement; forgiveness. A student applying under subsection 1, paragraph 
A shall enter into a loan agreement as set out in this subsection .. 
A. Upon completion of professional educatfon," the student shall repay the loan in 
accordance with this paragiaph .. 
(1) 
A loan reCipient who does not obtam loan forgiveness pursuant to 
subparagraph (2) shall repay the entire principal ot the loan plus simple interest at 
a rate to be determined by rule of the authority. 
Interest does not begin to accrue until the loan recipient completes veterinary 
medical education. 
(2) 
A loan recipient who, upon conclusion of the recipient's professional 
education, including· any fellowships, elects to serve as a veterinarian in an 
underserved specialty is forgi ven 25% of the original outstanding indebtedness 
for each year of that practice. 
B. Loans must be repaid over a term no longer than 10 years, except that the chief 
executive officer may extend an individual's term as necessary to ensure repayment 
of the loan. 
Repayment must commence when the loan recipient completes, 
withdraws from or otherwise fails to continue veterinary medical education. 
6. Loan repayment agreement. An applicant under subsection 1, paragraph B 
receives payment from the authority on the applicant's outstanding indebtedness for 
veterinary medical education at a rate of $20,000 per year of service for up to 4 years as 
long as the applicant continues to serve as a practitioner of veterinary medicine in an 
underserved specialty. 
7. 
Default. 
A loan recipient under the program who agrees to practice an 
underserved specialty in the State and who fails to complete the period of service required 
to payoff the loan is liable to the authority for an amount equal to the sum of the total 
amount paid by or on behalf of the authority to or on behalf of the recipient under the 
agreement plus interest at a rate determined by the authority. Credit for practicing in an 
underserved specialty is awarded for each consecutive 12-month period served. 
Exceptions may be made by the authority in accordance with subsection 8. 
A loan recipient may be granted permissIon to default without penalty from an agreement 
to practice an underserved specialty by petitioning the authority. Grounds for permission 
to default without penalty include, but are not limited to, catastrophic circumstances that 
prevent the recipient from remaining in an underserved specialty for the required period 
. of time. Therecipient receives credit for the number of months served, and the remaining 
financial obligation plus interest must be repaid to the authority in cash under the terms of 
the original agreement. 
8. Deferments. Deferments on the repayment of a loan under the program may be 
granted for causes established by rule of the authority. Interest at a rate to be determined 
by rule of the authority must be assessed during the deferment. The student's total debt to 
the authority, including principal and interest, must be repaid either through return service 
or cash payments. The chief executive officer shall make determinations of deferment on 
a case-by-case basis. The decision of the chief executive officer is [mal. 
§12313. Nonlapsing fund 
1. 
Fund created. 
A nonlapsing, interest-earning, revolving fund under the 
jurisdiction of the authority is created to carry out the purposes of this chapter. Any 
unexpended balance in the fund carries over for continued use under 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. Loan 
repayments under this chapter or other repayments to the authority must be invested by 
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the authority, as provided by law, with the earned income to be added to the fund. Money 
received by the authority on behalf of the fund, except interest income, must be used for 
the designated purpose; interest income may be used for the designated purpose or to pay 
student [mancial assistance administrative costs incurred by the authority for the 
operation of the program. 
2. Allocation of repayments. The authority may reallocate a portion of the annual 
loan repayments under the program for the purpose of recruiting veterinarians to practice 
underserved specialties. That portion may be used: 
A. 
In accordance with criteria established by the authority, to encourage 
veterinarians to practice in underserved specialties; or 
B. 
To repay education loans for the veterinary medical education of licensed 
veterinarians pursuant to section 12312, subsection 6. 
§12314. Advisory Committee on Veterinary Medical Education 
1. 
Committee. 
The Advisory Committee on Veterinary Medical Education, 
established pursuant to Title 5, section 12004-1, subsection 7-D, referred to in this section 
as "the committee," shall assist the chief executive officer in evaluating and improving 
the program. 
2. Members. The committee consists of: 
A. Eight voting members appointed by the President of the Senate and the Speaker 
of the House: 
(1) One member appointed by the President of the Senate who represents a 
school of veterinary medicine in the State; 
(2) One member appointed by the President of the Senate who represents the 
Department of Agriculture, Food and Rural Resources; 
(3) One Senator appointed by the President of the Senate; 
(4) Two members appointed by the Speaker of the House who represent a major 
statewide organization representing veterinarians; 
(5) One member appointed by the Speaker of the House who represents a major 
statewide organization representing farmers; 
(6) One member appointed by the Speaker of the House who represents a major 
statewide organization dedicated to large animal rescue; and 
(7) One member of the House of Representatives appointed by the Speaker of 
the House. 
The chief executive officer may submit recommendations for appointees under this 
paragraph to the President of the Senate and the Speaker of the House; and 
B. One nonvoting member, representing the authority, appointed by the Speaker of 
the House. 
3. 
Vacancies. 
In· the case of a vacancy or resignation on the committee, an 
appointment must be made as for a new meinber to fill the vacancy until the expiration of 
the term. 
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4. Terms. The term of office for all appointees on the cominittee is 2 years. 
§1231S. Rules 
The authority shall establish ruks necessary to· implement . this chapter. 
The 
Commissioner of Agriculture, Food and Rural Resources shall develop rules for 
determining underserVed specialties related to large animals. The rules authorized by this 
section must be adopted in accordance with Title 5, chapter 375, subchapter 2. Rules 
adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 
375, subchapter 2-A. 
SUMMARY· 
This bill establishes the Maine School of Veterinary Medicine Loan Program, similar 
to the Maine Dental Education Loan Program. The program would create 3 slots per year 
for veterinary students or persons eligible for licensure as a veterinarian to apply for a 
loan repayment program through the Finance Authority of Maine. The program would 
promote veterinarian practice for large animals. The bill creates the Advisory Committee 
on Veterinary Medical Education to work with the Chief Executive Officer of the Finance 
Authority of Maine to evaluate and improve the program. 
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