Sec. 1. 25 MRSA §2463-A is enacted to read:

§2463-A.__Installation of sprinkler systems in dormitories

1.__ Approved automatic sprinkler system.__A dormitory must be equipped with a complete, approved automatic sprinkler system.

2.__Definitions.__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A.__ "Automatic sprinkler system" means an automatic sprinkler system that at a minimum satisfies the requirements of Pamphlet 13 or 13R of the National Fire Protection Association or is recognized by the State Fire Marshal.

B.__ "Department" means the Department of Public Safety.

C.__"Dormitory" means a housing unit of a public or private educational institution in the State.

D.__"Educational institutional" means a secondary or postsecondary educational institution in the State.

3.__Conversion of existing buildings.__A building or existing structure that is converted into a dormitory must comply with the provisions of subsection 1 before the department approves the dormitory for occupancy.

4.__Automatic Sprinkler Loan Program.__The Automatic Sprinkler Loan Program, administered by the Finance Authority of Maine, is established for the purpose of providing low-interest loans to educational institutions to comply with this section.__A loan issued under this subsection has an interest rate of 0% per annum for public educational institutions and 2% per annum for private educational institutions and must be repaid within 10 years of the date of the loan.__The Finance Authority of Maine shall draft a form to apply for a loan under this subsection.__The Finance Authority of Maine may not approve a loan application unless the applicant has completed the application and agreed to the terms and conditions required by the Finance Authority of Maine.__Loan payments made pursuant to this subsection are credited to the Automatic Sprinkler Loan Fund, established in subsection 5.__The Finance Authority of Maine may develop other standards and criteria for a loan under this subsection that the Finance Authority of Maine determines are appropriate.