Vote Smart's Synopsis:

Vote to pass a bill that appropriates relief to federal employees affected by the federal government shutdown.

Highlights:

• Establishes the “Federal Shutdown Loan Guarantee Program Fund” as a non-lapsing, Other Special Revenue Funds account within the Office of the Treasurer of State, of which all money received by the fund must be credited to the fund and used to guarantee the repayment of loans made by an eligible financial institution to an eligible affected employee (Sec. 1). 

• Specifies that the amount of the loan can not exceed, after subtracting the amount the affected employee has reported to the eligible financial institution, the amount received by the employee during the shutdown, or the amount for which the affected employee is eligible during the shutdown, whichever is greatest, the lesser of either (Sec. 2):

• $5,000; or

• The affected employee’s most recent monthly after-tax pay. 

• Specifies that after a payment of a loan guarantee payment to an eligible financial institution, the loan must be assigned by the financial institution to the authority on behalf of the state, and the authority has the right to continue collection efforts on the loan (Sec. 2).

• Appropriates $250,000 from the General Fund to the Federal Shutdown Loan Guarantee Program Fund for the 2018-2019 fiscal year (Sec. 5). 

• Defines “shutdown” as the federal fiscal year 2019 partial shutdown of the federal government that began on December 22, 2018 (Sec. 2). 

• Defines “affected employee” as a federal employee who, during a shutdown, is a resident of the state of Maine and is required to work as a federal employee without pay, or is furloughed as a federal employee without pay (Sec. 2). 

• Defines “eligible financial institution” as a credit union or financial institution that is in good standing (Sec. 2). 

• Defines “good standing,” with respect to a financial institution, as one that is not subject to the following (Sec. 2):

• A formal agreement with the Department of Professional and Financial Regulation, Bureau of Financial Institutions; 

• A consent order or cease and desist order issued by the Federal Deposit Insurance Corporation, or the Department of Professional and Financial Regulation, Bureau of Financial Institutions; 

• A letter of understanding and agreement or a consent order issued by the National Credit Union Administration; or

• A finding by the Department of Professional and Financial Regulation, Bureau of Financial Institutions that the financial institution has failed to comply with a provision of 1100-CC.

Full Bill Text