An Act to Facilitate the Improvement of Credit Scores of Residents
Maine Legislature, Session 132, LD 0097
Committee: Health Coverage, Insurance and Financial Services
Sponsors: SAYRE
Amends: 17-A MRSA §2016, 34-A MRSA §3032, 34-A MRSA §3039, 34-A MRSA §3047

Legislative Document
No. 97
H.P. 62
House of Representatives, January 8, 2025
An Act to Facilitate the Improvement of Credit Scores of Residents 
of Department of Corrections Facilities
Submitted by the Department of Corrections pursuant to Joint Rule 204.
Reference to the Committee on Health Coverage, Insurance and Financial Services 
suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative SAYRE of Kennebunk.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  17-A MRSA §2016, sub-§2, as amended by PL 2021, c. 299, Pt. A, §2, is 
further amended to read:
2.  Payment of restitution or fines from other sources.   A prisoner, other than one 
addressed by subsection 1, who receives money, from any source, shall pay 25% of that 
money to any victim or the court if the court has ordered that restitution or a fine be paid.  
The chief administrative officer of the correctional facility in which the prisoner is 
incarcerated shall collect and disburse to the victim or victims that portion of the prisoner's 
money ordered as restitution.  The chief administrative officer of the correctional facility 
where the prisoner is incarcerated shall also collect and disburse to the court that portion 
of the prisoner's money ordered as fines after the restitution is paid in full.  If the victim or 
victims ordered by the court to receive restitution cannot be located, the correctional facility 
shall forward the funds, as provided in section 2009, to the Treasurer of State to be handled 
as unclaimed property.  Money received by the prisoner and directly deposited into a 
telephone call account established by the Department of Corrections for the sole purpose 
of paying for use of the department's client telephone system is not subject to this 
subsection, except that 25% of any money received by the prisoner and transferred from 
the telephone call account to the department's general client account at the time of the 
prisoner's discharge or transfer to supervised community confinement must be collected 
and disbursed as provided in this subsection.  Money received by the prisoner as a credit 
improvement loan in accordance with Title 34-A, section 3039, subsection 6 is not subject 
to this subsection.
Sec. 2.  34-A MRSA §3032, sub-§5-A, ¶A, as amended by PL 2005, c. 506, §4, is 
further amended to read:
A.  Restitution may be imposed for the purpose of replacing or repairing property 
destroyed or damaged by the prisoner or juvenile while the prisoner or juvenile is at 
the institution.  When restitution is imposed at a facility, a prisoner or a juvenile who 
is subject to that restitution and who receives money from any source shall pay 25% of 
that money to the facility where the destruction or damage occurred.  The facility shall 
collect that money and apply it to defray the cost of replacement or repair of the items 
destroyed or damaged.  Money received by the prisoner or juvenile and directly 
deposited into a telephone call account established by the department for the sole 
purpose of paying for use of the department's client telephone system is not subject to 
this paragraph, except that 25% of any money received by the prisoner or juvenile and 
transferred from the telephone call account to the department's general client account 
at the time of the prisoner's or juvenile's discharge or transfer to supervised community 
confinement or community reintegration status must be collected and disbursed as 
provided in this paragraph.  Money received by the prisoner or juvenile as a credit 
improvement loan in accordance with section 3039, subsection 6 is not subject to this 
paragraph.
Sec. 3.  34-A MRSA §3032, sub-§5-A, ¶A-1, as amended by PL 2005, c. 506, §5, 
is further amended to read:
A-1.  Restitution may be imposed for the purpose of paying the cost of medical care 
incurred as a result of the conduct of a prisoner or juvenile while the prisoner or 
juvenile is at the institution.  When restitution is imposed at a facility, a prisoner or a 
juvenile who is subject to that restitution and who receives money from any source 
shall pay 25% of that money to the facility where the medical care was provided.  The 
facility shall collect that money and apply it to defray the cost of medical care.  Money 
received by the prisoner or juvenile and directly deposited into a telephone call account 
established by the department for the sole purpose of paying for use of the department's 
client telephone system is not subject to this paragraph, except that 25% of any money 
received by the prisoner or juvenile and transferred from the telephone call account to 
the department's general client account at the time of the prisoner's or juvenile's 
discharge or transfer to supervised community confinement or community 
reintegration status must be collected and disbursed as provided in this paragraph.  
Money received by the prisoner or juvenile as a credit improvement loan in accordance 
with section 3039, subsection 6 is not subject to this paragraph.
Sec. 4.  34-A MRSA §3032, sub-§5-B, ¶A, as amended by PL 2005, c. 506, §6, is 
further amended to read:
A.  When a monetary sanction is imposed at a facility, a prisoner who is subject to that 
monetary sanction and who receives money from any source shall pay 25% of that 
money to the facility where the monetary sanction was imposed.  The facility shall 
collect that money and apply it to defray the cost of holding disciplinary hearings.  
Money received by the prisoner and directly deposited into a telephone call account 
established by the department for the sole purpose of paying for use of the department's 
client telephone system is not subject to this paragraph, except that 25% of any money 
received by the prisoner and transferred from the telephone call account to the 
department's general client account at the time of the prisoner's discharge or transfer to 
supervised community confinement must be collected and disbursed as provided in this 
paragraph.  Money received by the prisoner as a credit improvement loan in accordance 
with section 3039, subsection 6 is not subject to this paragraph.
Sec. 5.  34-A MRSA §3039, sub-§6 is enacted to read:
6.  Credit improvement loan.  The commissioner may allow a client, in accordance 
with rules adopted by the commissioner, to receive a loan from a financial institution 
without the loan money being deposited in the department's general client account or the 
department's telephone call account if:
A.  The loan is designed to improve the client's credit score;
B.  The loan money is deposited in the client's savings account at the financial 
institution; 
C.  The loan is secured in full by money disbursed by the client from the department's 
general client account to the client's savings account at the financial institution after 
any collections provided for by statute or rule; and 
D.  The loan is required to be repaid in full from the secured money under paragraph 
C or from other money disbursed by the client from the department's general client 
account after collections provided for by statute or rule.
As used in this subsection, "financial institution" has the same meaning as in Title 9-B, 
section 131, subsection 17 and includes a credit union as defined in Title 9-B, section 131, 
subsection 12.
Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A.
Sec. 6.  34-A MRSA §3047, sub-§2, ¶A, as amended by PL 2005, c. 506, §10, is 
further amended to read:
A.  Has, within the 6 months prior to the date of parole or discharge, transferred from 
the department's general client account to any person more than $500, excluding any 
money transferred for the support of dependents or a credit improvement loan in 
accordance with section 3039, subsection 6; or
Sec. 7.  34-A MRSA §3047, sub-§2, ¶B, as amended by PL 2007, c. 102, §9, is 
further amended to read:
B.  Has, on the date of parole or discharge, more than $500 in personal assets not 
including a credit improvement loan in accordance with section 3039, subsection 6.
SUMMARY
This bill allows, under rules established by the Commissioner of Corrections, a juvenile 
or adult client of a correctional or detention facility to obtain a loan from a financial 
institution or credit union.  The bill exempts the loan funds from being used for restitution 
or the client's telephone call account if the loan is designed to improve the client's credit 
score; the funds are deposited in the client's savings account at the financial institution or 
credit union; the loan is secured in full by funds disbursed by the client after any collections 
required by law; and the loan is required to be repaid in full using those secured funds or 
other funds disbursed by the client.