An Act to Provide Financial Incentives for Attorneys to Provide Indigent Legal Services
Maine Legislature, Session 131, LD 1462
Committee: Judiciary
Sponsors: POULIOT, HENDERSON, BLACK, KEIM, MOORE, STEWART
Amends: 36 MRSA §5133

Legislative Document
No. 1462
S.P. 580
In Senate, March 30, 2023
An Act to Provide Financial Incentives for Attorneys to Provide 
Indigent Legal Services
Reference to the Committee on Judiciary suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator POULIOT of Kennebec.
Cosponsored by Representative HENDERSON of Rumford and
Senators: BLACK of Franklin, KEIM of Oxford, MOORE of Washington, STEWART of 
Aroostook.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  10 MRSA c. 110, sub-c. 15 is enacted to read:
SUBCHAPTER 15
INDIGENT LEGAL SERVICES LOAN PROGRAM
§1100-HH. Program
The Indigent Legal Services Loan Program, referred to in this subchapter as "the 
program," is established to encourage the provision of indigent legal services in this State.  
1. Definitions. As used in this subchapter, unless the context otherwise indicates, the 
following terms have the following meanings.
A. "Eligible person" means a person enrolled at a Maine law school who, in accordance 
with rules adopted by the authority, commits to providing indigent legal services in this 
State on a full-time basis for 5 years after becoming licensed to practice law.
B. "Indigent legal services" has the same meaning as in Title 4, section 1802, 
subsection 4.
C. "Loan period" means the period beginning when a program participant first obtains 
a program loan and ending 5 years after the program participant obtains a license to 
practice law in this State.
D. "Maine law school" means an accredited law school in this State that grants a juris 
doctorate degree.
E. "Program loan" means a no-interest loan provided under the program to an eligible 
person that covers:
(1) The cost of tuition for the person to earn a juris doctorate degree at a Maine law 
school; and
(2) The reasonable costs of the person, within 120 days of graduation, to become 
licensed to practice law in this State, as determined by the authority by rule.
F.  "Program participant" means a person who has a program loan.
2. Loan eligibility.  In accordance with rules adopted by the authority, an eligible 
person may apply to the authority for a program loan.  To the extent of available funding, 
the authority shall provide a program loan under terms consistent with the program to each 
person the authority finds to meet the requirements of the program and to be reasonably 
likely to fulfill the terms of the program loan.  The program loan may be calculated and 
disbursed in increments over the loan period for purposes of the program.  
3.  Repayment.  The authority by rule shall establish the terms of a program loan 
consistent with the purposes of the program.  The rules must provide for loan forgiveness 
on an amortized basis over the loan period for each year during the loan period that the 
program participant fulfills the participant's commitment to provide, on a full-time basis, 
indigent legal services in this State.  The rules must also provide for repayment of the loan 
on the same amortized basis if the program participant during the loan period fails to fulfill 
the participant's commitment to provide, on a full-time basis, indigent legal services in this 
State.  
4. Reporting.  The authority by rule shall establish reporting and verification 
requirements for program participants regarding all relevant activities, costs and income of 
program participants to the extent necessary for the authority to administer the program.
5. Tax exemption.  At the end of any tax year in which a program participant is 
providing, on a full-time basis, indigent legal services in this State in accordance with the 
terms of a program loan, the authority shall certify to the Department of Administrative 
and Financial Services, Bureau of Revenue Services that the applicant is a program 
participant eligible for the personal tax exemption provided under Title 36, section 5133.
6. Rules.  The authority shall adopt rules to carry out the purposes of this subchapter. 
Rules adopted pursuant to this subsection are routine technical rules pursuant to Title 5, 
chapter 375, subchapter 2-A.
Sec. 2.  36 MRSA §5133 is enacted to read:
§5133.  Personal tax exemption; providers of indigent legal services
Notwithstanding any provision of this Part to the contrary, in addition to any other 
deductions or exemptions under this Part, a program participant certified by the Finance 
Authority of Maine under Title 10, section 1100-HH, subsection 5 is allowed a personal 
exemption deduction for the taxable year equal to the full amount of income earned by that 
program participant from providing indigent legal services, as defined in Title 10, section 
1100-HH, subsection 1, paragraph B.
SUMMARY
This bill establishes a program to provide no-interest loans and a tax exemption to 
encourage Maine law students to provide indigent legal services after graduation.
The loan program provides a no-interest loan to eligible students to cover the costs of 
law school and of licensing to become an attorney.  To be eligible, the student must commit 
to providing indigent legal services for 5 years following graduation from law school.  The 
program provides loan forgiveness, on an amortized basis over the loan period, for each 
year during the loan period the program participant fulfills the participant's commitment to 
provide indigent legal services in this State.  If the program participant fails to fulfill the 
participant's commitment, the loan must be repaid, on the same amortized basis.
The bill also provides to a program participant, for the 5 years following graduation, a 
personal income tax exemption deduction equal to the full amount of income earned by 
that person from providing indigent legal services in accordance with the program.