An Act To Amend the Laws Governing Oversight of and Responsibility for the Kim Wallace Adaptive Equipment Loan Program Fund
Maine Legislature, Session 127, LD 1549
Committee: Labor, Commerce, Research and Economic Development
Sponsors: PETERSON, KATZ, PATRICK
Amends: 5 MRSA §12004-G, 10 MRSA §371, 10 MRSA §372, 10 MRSA §373, 10 MRSA §374, 10 MRSA §375, 10 MRSA §376, 10 MRSA §377

Legislative Document 
No. 1549 
H.P. 1056 
House of Representatives, January 12, 2016 
An Act To Amend the Laws Governing Oversight of and 
Responsibility for the Kim Wallace Adaptive Equipment Loan 
Program Fund 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative PETERSON of Rumford. 
Cosponsored by Senator KATZ of Kennebec and 
Senator: PATRICK of Oxford. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §12004-G, sub-§10-A, as amended by PL 1999, c. 731, Pt. FF, 
§1, is repealed. 
Sec. 2.  10 MRSA §371, sub-§1, as amended by PL 1999, c. 731, Pt. FF, §3, is 
repealed. 
Sec. 3.  10 MRSA §371, sub-§§1-A, 1-B and 2-A are enacted to read: 
1-A.  Center for independent living.  "Center for independent living" means an 
independent nonprofit organization that provides independent living services as defined 
in Title 26, section 1414, subsection 1. 
1-B.  Community development financial institution.  "Community development 
financial institution" means a financial institution that is certified and funded by the 
United States Department of the Treasury to provide support to economically 
disadvantaged communities. 
2-A.  Program administrator.  "Program administrator" means a center for 
independent living or a community development financial institution based in this State 
and designated by the Treasurer of State pursuant to section 374. 
Sec. 4.  10 MRSA §371, sub-§3, as amended by PL 1989, c. 191, §1, is further 
amended to read: 
3.  Qualifying borrower.  "Qualifying borrower" means any individual, for-profit or 
nonprofit corporation or partnership which that demonstrates that the loan will assist one 
or more persons with disabilities to improve their independence or become more 
productive members of the community.  The individual, corporation or partnership must 
demonstrate credit worthiness creditworthiness and repayment abilities to the satisfaction 
of the board program administrator. 
Sec. 5.  10 MRSA §372, sub-§1, as amended by PL 2005, c. 191, §1, is further 
amended to read: 
1.  Creation of fund.  There is established the Kim Wallace Adaptive Equipment 
Loan Program Fund, which must be used to provide funding for loans to qualified 
borrowers within the State in order to acquire adaptive equipment designed to assist the 
borrower in becoming independent and for other purposes as allowed under section 376.  
The fund must be deposited with, maintained and administered by the Finance Authority 
of Maine or other state agency the Treasurer of State and contain appropriations provided 
for that purpose, interest accrued on the fund balance, funds received by the board 
program administrator to be applied to the fund and funds received in repayment of loans.  
This fund is a nonlapsing revolving fund.  All money in the fund must be continuously 
applied to carry out the purposes of this chapter. 
Sec. 6.  10 MRSA §373, as amended by PL 1999, c. 731, Pt. FF, §5, is repealed. 
Sec. 7.  10 MRSA §374, as amended by PL 2005, c. 191, §§2 to 4, is further 
amended to read: 
§374.  Program administrator 
The board shall have Treasurer of State shall designate a program administrator, 
which has the following powers and duties. 
1.  Receipt of money and property.  The board program administrator may accept 
and receive gifts, grants, bequests or devises from any source, including funds from the 
Federal Government or any of its political subdivisions. 
2.  Contracts.  The board program administrator may, with the approval of the 
Governor, enter into any necessary contracts and agreements with appropriate state or 
community-based groups dealing with disabled persons. 
3.  Administer loan program.  The board program administrator shall administer the 
Kim Wallace Adaptive Equipment Loan Program Fund established by this chapter and 
may contract with the Finance Authority of Maine and state or community-based groups 
dealing with disabled persons for such assistance in administering the program as the 
board may require.  The board program administrator may employ persons, including 
private legal counsel and financial experts, on either a temporary or permanent basis, in 
order to carry out any of its powers and duties.  Employees of the board program 
administrator are not subject to Title 5, chapter 71 and Title 5, chapter 372, subchapter 2. 
4.  Rules.  The board may adopt rules to carry out the purposes of this chapter.  Rules 
adopted pursuant to this subsection are routine technical rules as defined by Title 5, 
chapter 375, subchapter II-A.  The rules must ensure that: 
A.  Individuals and business entities are eligible for loans; 
B.  A preference is given for loans to qualifying individual borrowers seeking loans 
to acquire adaptive equipment for personal, family or household purposes; and 
D.  Loan applications may be approved or denied by the board only at a regular or 
special meeting except as follows: 
(1)  Approval of applications for loans may be delegated by the board to a 
subcommittee of the board containing at least 5 members if an applicant would 
suffer undue hardship by waiting for the next regular meeting; or 
(2)  Approval of applications for loans may be delegated to outside contractors 
with criteria and terms as provided by the board and approved no less than 
annually. 
All approved loans must be ratified by the board at the board's next regular or special 
meeting.  All loans recommended for denial by the delegated authority must be acted 
upon by the board at the board's next regular or special meeting. 
5.  Advisory board.  The program administrator may establish an advisory board to 
assist the program administrator in developing and implementing policies and procedures 
to carry out the purposes of this chapter.  A majority of the members of the advisory 
board must be citizens of the State who are persons with disabilities, and the advisory 
board may include persons with relevant financial and legal expertise and knowledge. 
6.  Annual report to Treasurer of State.  The program administrator shall report 
annually to the Treasurer of State regarding fund activities. The report must include, but 
is not limited to, administrative costs and the performance of the current loan portfolio, 
including the number and amount of loans as well as the loss ratio. If the loan portfolio 
performance as measured through the loss ratio exceeds by 10% the average loss ratio of 
the fund as administered by the Finance Authority of Maine prior to the effective date of 
this subsection, the Treasurer of State may take remedial action, including but not limited 
to designating a new program administrator through a request for proposals process. 
Sec. 8.  10 MRSA §375, as amended by PL 2005, c. 191, §5, is further amended to 
read: 
§375.  Loans 
1.  Demonstration of purpose of loan.  The board program administrator may enter 
into loan agreements with any qualifying borrower and exercise all powers of a lender or 
creditor.  Loan security may include the acquisition, use, management, improvement or 
disposition of any interest in, or type of, real or personal property, including grant, 
purchase, sale, borrow, loan, lease, foreclosure, mortgage, assignment or other lawful 
means, with or without public bidding and also including the assessment of fees, the 
forgiveness of indebtedness, the receipt of reimbursements for expenses incurred in 
carrying out its purposes and the expenditure or investment of its funds.  The borrower 
must demonstrate that: 
A.  The loan will assist one or more persons with disabilities to improve their 
independence or become more productive members of the community; and 
B.  The applicant has the ability to repay the loan. 
2.  Loan limit.  Any necessary loan limitation shall must be determined by the board 
program administrator. 
3.  Terms.  All loans must be repaid within such terms and at such interest rates as 
the board program administrator may determine to be appropriate in accordance with 
guidelines established by rulemaking pursuant to the Maine Administrative Procedure 
Act, Title 5, chapter 375. 
Sec. 9.  10 MRSA §376, first ¶, as amended by PL 2003, c. 99, §2, is further 
amended to read: 
The board program administrator may award loans to qualifying borrowers for the 
following purposes: 
Sec. 10.  10 MRSA §377, first ¶, as enacted by PL 2003, c. 99, §3, is amended to 
read: 
The board program administrator may award loans for the purpose of assisting 
persons with disabilities to purchase used vehicles necessary to obtain or retain 
employment or employment training, subject to the following limitations. 
Sec. 11.  10 MRSA §377, sub-§1, as enacted by PL 2003, c. 99, §3, is amended to 
read: 
1.  Qualifications of borrower.  A loan may be made under this section only to a 
qualifying borrower who meets the other requirements of this chapter and who 
demonstrates a need for a vehicle as part of an individualized plan toward employment 
developed with a state or community-based organization that provides employment 
services to persons with disabilities and that is approved by the board program 
administrator. 
SUMMARY 
This bill transfers administration of the Kim Wallace Adaptive Equipment Loan 
Program Fund to a program administrator, eliminates the Kim Wallace Adaptive 
Equipment Loan Program Fund Board, authorizes the establishment of an advisory board 
to assist the program administrator and transfers authority over the fund from the Finance 
Authority of Maine to the Treasurer of State.