An Act To Authorize a Revenue Bond for a Student Loan Reduction Plan
Maine Legislature, Session 127, LD 0784
Committee Amendment CA_A_H228 (House)

COMMITTEE AMENDMENT "A" to H.P. 533, L.D. 784, Bill, "An Act To 
Authorize a Revenue Bond for a Student Loan Reduction Plan" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Authorize a General Fund Bond Issue for a Student Loan Reduction 
Plan' 
Amend the bill by striking out everything after the title and before the summary and 
inserting the following: 
'Preamble. Two thirds of both Houses of the Legislature deeming it necessary in 
accordance with the Constitution of Maine, Article IX, Section 14 to authorize the 
issuance of bonds on behalf of the State of Maine to provide funds as described in this 
Act, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. Authorization of bonds. The Treasurer of State is authorized, under the 
direction of the Governor, to issue bonds in the name and on behalf of the State in an 
amount not exceeding $5,000,000 for the purposes described in section 5 of this Act. The 
bonds are a pledge of the full faith and credit of the State. The bonds may not run for a 
period longer than 10 years from the date of the original issue of the bonds. 
Sec. 2. Records of bonds issued; Treasurer of State. The Treasurer of State 
shall ensure that an account of each bond is kept showing the number of the bond, the 
name of the successful bidder to whom sold, the amount received for the bond, the date of 
sale and the date when payable. 
Sec. 3. Sale; how negotiated; proceeds appropriated. The Treasurer of State 
may negotiate the sale of the bonds by direction of the Governor, but no bond may be 
loaned, pledged or hypothecated on behalf of the State. The proceeds of the sale of the 
bonds, which must be held by the Treasurer of State and paid by the Treasurer of State 
upon warrants drawn by the State Controller, are appropriated solely for the purposes set 
fOlth in this Act. Any unencumbered balances remaining at the completion of the project 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to H.P. 533, L.D. 784 
in this Act lapse to the Office of the Treasurer of State to be used for the retirement of 
general obligation bonds. 
Sec. 4. Interest and debt retirement. The Treasurer of State shall pay interest 
due or accruing on any bonds issued under this Act and all sums coming due for payment 
of bonds at maturity. 
Sec. 5. Disbursement of bond proceeds from General Fund bond issue. 
The proceeds of the sale of the bonds authorized under this Act must be expended as 
designated in the following schedule under the direction and supervision of the agencies 
and entities set forth in this section. 
FINANCE AUTHORITY OF MAINE 
Higher Education Loan and Loan 
Insurance Program 
Provides funds to implement a student loan reduction plan that will allow residents of 
the State to refinance or consolidate student loans. 
Total 
$5,000,000 
Sec. 6. Contingent upon ratification of bond issue. Sections 1 to 5 do not 
become effective unless the people of the State ratify the issuance of the bonds as set 
forth in this Act. 
Sec. 7. Appropriation balances at year-end. At the end of each fiscal year, all 
unencumbered appropriation balances representing state money carry forward. 
Bond 
proceeds that have not been expended within 10 years after the date of the sale of the 
bonds lapse to the Office of the Treasurer of State to be used for the retirement of general 
obligation bonds. 
Sec. 8. Bonds authorized but not issued. Any bonds authorized but not issued 
within 5 years of ratification of this Act are deauthorized and may not be issued, except 
that the Legislature may, within 2 years after the expiration of that 5-year period, extend 
the period for issuing any remaining unissued bonds for an additional amount of time not 
to exceed 5 years. 
Sec. 9. 
Referendum for ratification; submission at election; form of 
question; effective date. This Act must be submitted to the legal voters of the State at 
a statewide election held in the month 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 vote on the acceptance or rejection of this Act by voting on the following question: 
"Do you favor a $5,000,000 bond issue to provide funds to implement a 
student loan reduction plan that will allow residents of the State to 
refinance or consolidate student loans?" 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 533, L.D. 784 
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. If a majority of the legal votes are cast in favor of this Act, the 
Governor shall proclaim the result without delay and this Act becomes effective 30 days 
after the date of the proclamation. 
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 
referendum.' 
SUMMARY 
This amendment, which is the majority report of the committee, strikes the bill's 
proposal to provide $40,000,000 in funds from a revenue bond and replaces the bill with 
a proposal to provide $5,000,000 by a General Fund bond issue to implement a student 
loan reduction plan administered by the Finance Authority of Maine that will allow 
residents of the State to refinance or consolidate student loans. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Bond Issues 
Approved: OS/26/15 
.wac 
LD784 
LR295(02) 
An Act To Authorize a Reveime Bond for a Student Loan Reduction Plan 
Fiscal Note for Bill as Amended by Committee Amendment it' ( fI-:1:l~ 
Committee: Education and Cultural Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Current biennium cost increase - General Fund 
Term (years) 
Principal 
Rate (%) 
Interest 
Total Cost 
General Fund - Taxable 
$5,000,000 
4.5% 
$1,237,500 
$6,237,500 
Referendum Costs 
MonthlYear 
Election Type 
Question 
Length 
Nov-15 
General 
Bond Issue 
Standard 
The Secretary of State's budget includes sufficient funds to accommodate one ballot of average length for the general 
election in November. If the number or size ofthe referendum questions requires production and delivery of ~ second 
ballot, an additional appropriation of $107,250 may be required. 
LR0295(02) - Fiscal Note - Page 1 of 1