An Act To Provide for an Advisory Referendum on the Approval of Tax-exempt Student Loan Revenue Bonds
Maine Legislature, Session 125, LD 1662
Committee: Appropriations and Financial Affairs
Sponsors: RAYE, LANGLEY, SNOWE-MELLO, MOULTON

Legislative Document 
No. 1662 
S.P. 561 
In Senate, December 21, 2011 
An Act To Provide for an Advisory Referendum on the Approval of 
Tax-exempt Student Loan Revenue Bonds 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Secretary of the Senate on December 19, 2011.  Referred to the Committee 
on Appropriations and Financial Affairs pursuant to Joint Rule 308.2 and ordered printed 
pursuant to Joint Rule 218. 
JOSEPH G. CARLETON, JR. 
Secretary of the Senate 
Presented by President RAYE of Washington. 
Cosponsored by Senators: LANGLEY of Hancock, SNOWE-MELLO of Androscoggin, 
Representative: MOULTON of York. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  Advisory referendum on the opinion of citizens of the State.  The 
Secretary of State shall hold an advisory referendum, at a statewide election in the month 
of November following passage of this Act, to determine the sentiment of the people of 
the State on the Governor's approval of the Maine Educational Loan Authority's issuance 
of no more than $50,000,000 of tax-exempt student loan revenue bonds over the next 3 
years, to be repaid by the loan recipients. 
Sec. 2.  Advisory referendum procedure; submission at statewide election.  
This advisory referendum must be submitted to the legal voters of the State at a statewide 
election held on the Tuesday following the first Monday of November following passage 
of this Act.  The municipal officers of this State shall notify the inhabitants of their 
respective cities, towns and plantations to meet, in the manner prescribed by law for 
holding a statewide election, to give their opinion on this question by voting on the 
following: 
"Do you favor the Governor's approval of the Maine Educational Loan 
Authority's issuance of no more than $50,000,000 of tax-exempt student 
loan revenue bonds over the next 3 years, to be repaid by the loan 
recipients?" 
The legal voters of each city, town and plantation shall vote by ballot on this question 
and designate their choice by a cross or check mark placed within a corresponding square 
below the word "Yes" or "No."  The ballots must be received, sorted, counted and 
declared in open ward, town and plantation meetings and returns made to the Secretary of 
State in the same manner as votes for members of the Legislature.  The Governor shall 
review the returns and shall proclaim, without delay, the total number of ballots in favor 
of and opposed to the subject of the referendum. 
The Secretary of State shall prepare and furnish to each city, town and plantation all 
ballots, returns and copies of this Act necessary to carry out the purposes of this advisory 
referendum. 
SUMMARY 
Federal law requires that private activity bonds, which are tax-exempt bonds issued 
by public entities to provide low-cost financing for private projects that serve a public 
purpose, be approved by the highest elected official of the jurisdiction in which the 
proceeds of the bonds will be used.  The Maine Educational Loan Authority issues 
private activity bonds to fund supplemental student loans for Maine students and families 
and services its debts with the revenue streams associated with student loan repayment.  
This bill directs the Secretary of State to hold an advisory referendum at a statewide 
election to determine whether the voters of the State favor the Governor's approval of the 
Maine Educational Loan Authority's issuance of no more than $50,000,000 of tax-exempt 
student loan revenue bonds over the next 3 years, to be repaid by the loan recipients.