An Act To Authorize a General Fund Bond Issue To Provide Funding for a Program of Student Debt Cancellation and Refinancing
Maine Legislature, Session 128, LD 1163
Committee Amendment CA_B_S337 (Senate)
Amends: 10 MRSA §1013

COMMITTEE AMENDMENT "(3>,, to S.P. 384, L.D. 1163, Bill, "An Act To 
Authorize a General Fund Bond Issue To Provide Funding for a Program of Student Debt 
Cancellation and Refinancing" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Authorize a General Fund Bond Issue To Provide Funding for a 
Program of Student Debt Payment and To Provide for the Establishment of That 
Program' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'PART A 
Sec. A-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 $25,000,000 for the purposes described in section 5 of this Part. 
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. A-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. A-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 
0 
be loaned, pledged or hypothecated on behalf of the State. The proceeds of the sale of the 
1 
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 
forth in this Part. Any unencumbered balances remaining at the completion of the project 
in this Part lapse to the Office of the Treasurer of State to be used for the retirement of 
general obligation bonds. 
COMMITTEE AMENDMENT 
{,,_-, 
{ ;\· 
._, 
'· 
COMMITTEE AMENDMENT "B" to S.P. 384, L.D. 1163 
Sec. A-4. Interest and debt retirement. 
The Treasurer of State shall pay 
interest due or accruing on any bonds issued under this Part and all sums coming due for 
payment of bonds at maturity. 
Sec. A-5. Disbursement of bond proceeds from General Fund bond issue. 
The proceeds of the sale of the bonds authorized under this Part 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 
Maine Student Loan Debt Relief Fund 
Provides funds to provide payments for student loan debt cancellation for individuals 
who agree to work and reside in this State for 5 years and to reimburse employers in 
this State that make student loan debt payments on behalf of their employees who 
agree to work and reside in this State for 5 years. 
Total 
$25,000,000 
Sec. A-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 Patt. 
Sec. A-7. Appropriation balances at year-end. At the end of each fiscal year, 
all unencumbered appropriation balances representing state money cany 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. A-8. Bonds authorized but not issued. Any bonds authorized but not 
issued within 5 years of ratification of this Patt 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. A-9. Referendum for ratification; submission at election; form of 
question; effective date. This Patt must be submitted to the legal voters of the State at 
a statewide election held in June 2018. 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 Patt by voting on the following question: 
"Do you favor a $25,000,000 bond issue to provide funds for payment of 
student loan debt of individuals who agree to work and reside in Maine 
for 5 years and for reimbursement of employers that make student loan 
repayments on behalf of such individuals?" 
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 
COMMITTEE AMENDMENT 
. (; 
ri'< ) 
~ 
.. ~" 
COMMITIEE AMENDMENT" 8" to S.P. 384, L.D. 1163 
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 Part, the 
Governor shall proclaim the result without delay and this Part 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 Patt necessary to carry out the purposes of this 
referendum. 
PARTB 
Sec. B-1. 10 MRSA §1013, sub-§16, as amended by PL 2001, c. 417, §12, is 
fmther amended to read: 
16. Maine College Savings Program. The Maine College Savings Program, as 
established in Title 20-A, chapter 417-E; and 
Sec. B-2. 10 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 4267; and 
Sec. B-3. 10 MRSA §1013, sub-§18 is enacted to read: 
18. Maine Student Loan Debt Relief Program. The Maine Student Loan Debt 
Relief Program as established in Title 20-A, chapter 441. 
Sec. B-4. 20-A MRSA c. 441 is enacted to re~d: 
CHAPTER441 
MAINE STUDENT LOAN DEBT RELIEF PROGRAM 
§12941. 
Maine Student Loan Debt Relief Program established; purpose; 
administration 
The Maine Student Loan Debt Relief Program, referred to in this chapter as "the 
program," is established. The purpose of the program is to: 
1. Payment of student loan debt. Provide for the payment of student loan debt for 
individuals who agree to reside and work in this State for at least 5 years; and 
2. 
Reimbursement of student loan debt payments made by employers. 
Reimburse employers in this State that make student loan debt payments on behalf of 
their employees who agree to reside and work in this State for 5 years. 
The Finance Authority of Maine shall administer the program. 
COMMITTEE AMENDMENT 
~~ 
~~: ('i' 
COMMITTEE AMENDMENT "/3 "to S.P. 384, L.D. 1163 
§12942. Maine Student Loan Debt Relief Fund established 
The Maine Student Loan Debt Relief Fund, referred to in this chapter as "the fund," is 
established as a nonlapsing fund administered by the Finance Authority of Maine. All 
money received by the fund from any source, including a General Fund bond obligation, 
must be deposited with the authority and credited to the fund. Money credited to the fund 
must be used for the purposes of the program, including reimbursement of the authority's 
administrative costs for operating the program. 
Sec. B-5. 
Rulemaking. 
The Finance Authority of Maine shall adopt major 
substantive rules, as provided in the Maine Revised Statutes, Title 5, chapter 375, 
subchapter 2-A, to implement the Maine Student Loan Debt Relief Program established 
in Title 20-A, chapter 441. Rules adopted by the authority must comply with the purpose 
of the program as specified in Title 20-A, section 12941 and must include, but are not 
limited to, the application and verification process and penalties for failing to fulfill the 
requirements of the program and the use of the Maine Student Loan Debt Relief Fund 
established in Title 20-A, section 12942. 
The authority shall submit the major 
substantive rules to the Second Regular Session of the 128th Legislature no later than 
January 5, 2018.' 
SUMMARY 
This amendment, which is one of 2 minority reports of the committee, strikes the bill 
and instead: 
1. Requires a General Fund bond obligation in the amount of $25,000,000 for a 
program administered by the Finance Authority of Maine to provide funds for payment of 
student loan debt for individuals who agree to live and work in Maine for 5 years and to 
reimburse employers that make student loan debt repayments on behalf of their 
employees who agree to Jive and work in Maine for 5 years; and 
2. Establishes the Maine Student Loan Debt Relief Program and the Maine Student 
Loan Debt Relief Fund and requires the Finance Authority of Maine to adopt major 
substantive rules to implement the program and submit the rules to the Second Regular 
Session of the 128th Legislature. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 07/19/17 feac 
LD 1163 
LR 145(03) 
An Act To Authorize a General Fund Bond Issue To Provide Funding for a Program of Student Debt 
Cancellation and Refinancing 
Fiscal Note for Bill as Amended by Committee Amendment l3 ( S- 3 3-0 
Committee: Appropriations and Financial Affairs 
Bond Issues 
General Fund - Taxable 
Fiscal Note Required: Yes 
Fiscal Note 
Current biennium cost increase - General Fund 
Term (years) 
Principal 
$25,000,000 
Rate(%) 
4.75% 
Interest 
$6,531,250 
Total Cost 
$31,531,250 
Referendum Costs 
MonthN ear 
Election Type 
Question 
Length 
Jun-18 
General 
Bond Issue 
Standard 
The Secretary of State's budget does not include funding for the June 2018 election. The department would require a 
General Fund appropriation of $155,000 to cover the costs of producing and delivering the ballots and the Citizen's 
Guide to the Referendum Election. 
Fiscal Detail and Notes 
The Finance Authority of Maine estimates its cost to establish and operate the Student Debt Cancellation and 
Refinance Program to be between $75,000 and $100,000 per year, or between 3% and 4%, assuming annual bond 
activity of $2,500,000 per year over the 10 year period. Because this legislation provides that a portion of the bond 
monies may be used for administrative costs, no General Fund appropriations are required. 
LR0145(03) - Fiscal Note - Page 1 of 1