Whereas, the Maine College Savings Program was created in 1998 to provide an opportunity for families to save and invest on a tax-free basis for the future costs of higher education;

Whereas, because of the critical importance of higher education to the economic future of the State and to the well-being of its citizens, it is necessary that the Maine College Savings Program be implemented as soon as possible; and

Whereas, In the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

Sec. 1. PL 1997, c. 732, Sec. 8 is enacted to read:

Sec. 8. Implementation by May 1, 1999. The Finance Authority of Maine shall implement all aspects of this Act not later than May 1, 1999 and shall submit a written report on its implementation to the Joint Standing Committee on Education and Cultural Affairs not later than May 15, 1999. If the authority fails to fully implement this Act by May 1, 1999, the authority is relieved of its powers and duties under the Act; and the Maine Educational Loan Authority shall assume the responsibilities formerly assigned to the Finance Authority of Maine and is the successor to the Finance Authority of Maine under this Act. The Maine Educational Loan Authority may, but is not required to, accept the actions, obligations and responsibilities performed or incurred by the Finance Authority of Maine before May 1, 1999 in preparation for implementation of this Act.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill amends the Maine College Savings Program, which was established last year. That program provides an opportunity for parents to save and invest tax-free toward payment of future college costs for their children. The Finance Authority of Maine was charged with the responsibility of administering the program. This bill directs the authority to fully implement the