An Act Making Unified Appropriations and Allocations for the Expenditures of State Government, General Fund and Other Funds, and Changing Certain Provisions of the Law Necessary to the Proper Operations of State Government (or the Fiscal Years Ending June 30, 2008 and June 30, 2009
Maine Legislature, Session 123, LD 0499
Committee Amendment CA_A-HA_S_H444 (House)
Amends: 20-A MRSA §1, 20-A MRSA §1001, 20-A MRSA §4102, 20-A MRSA §15680, 20-A MRSA §15681-A, 30-A MRSA §5724

HOUSE AMENDMENT" S " to COMMITIEE AMENDMENT "N' to H.P. 383, 
L.D. 499, Bill, "An Act Making Unified Appropriations and Allocations for the 
Expenditures of State Government, General Fund and Other Funds, and Changing Certain 
Provisions of the Law Necessary to the Proper Operations of State Government (or the 
Fiscal Years Ending June 30, 2008 and June 30, 2009" 
Amend the amendment by striking out all of Part XXXX and inserting the following: 
'PARTXXXX 
Sec. XXXX-l. 20-A MRS~ §1, sub-§20-A is enacted to read: 
20-A. Previous education unit. "Previous education unit" means a state-approved 
unit of school administration that was responsible for operating or constructing public 
schools prior to the reorganization of school administrative units pursuant to chapter 
103-A. 
Sec. XXXX-2. 20-A MRSA §1, sub-§24-B is enacted to read: 
24-B. Re~onal school unit. "Regional school unit" means the state-amiroved unit 
of school administration as established pursuant to chapter 103-A. Notwithstanding any 
other provision of law. a school union qualifies as a regional school unit if it meets the 
minimum resident student parameters specified in section 1455. 
Sec. XXXX-3. 20-A MRSA §1001, sub-§3, as amended by PL 2001, c. 588, §5, 
is further amended to read: 
3. Selection of superintendent. They shall select a superintendent or contract for 
administrative services in accordance with section 1051 to carry out the duties specified 
in section 1055. 
Sec. XXXX-4. 20-A MRSA §l051, sub-§7 is enacted to read: 
7. Superintendent not required. Notwithstanding the other provisions of this 
section, a school administrative unit with fewer than 200 resident pupils is not required to 
employ a superintendent of schools and may contract for those administrative services 
with another school administrative unit, an educational advisory organization reorganized 
under Title 30-A, section 5724 or the department.· A school administrative unit. 
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HOUSE AMENDMENT "5" to COMMITTEE AMENDMENT "A" to H.P. 383,L.D. 499 
educational advisory organization or the department in providing administrative services 
under this subsection has the rights and duties of a superintendent under this subchapter. 
Sec. XXXX-5. 20-A MRSA c. l03-A is enacted to read: 
CHAPTER l03-A 
REORGANIZATION OF SCHOOL ADMINISTRATIVE UNITS 
§1451. Organization of regional school units 
This chapter governs the reorganization of the State's school administrative units. It 
is declared the policy of the State to provide sufficient resources to support the 
reorganization of school administrative units tnto school systems of the size and structure 
identified in this chapter in order to provide: 
. 1. Opportunity. Equitable educational opportunity for all students to demonstrate 
achievement of the content standards of the State's system of learning results established 
in section 6209; 
2. Proerams. Rigorous academic programs that meet the reguirements of the system 
of learning results established in section 6209 and that prepare students for college. 
careers and citizenship; 
3. Delivery. The delivery of the academic programs that meet the reguirements of 
the system of leaming results established in section. 6209; 
4. Tax rates. A general uniformity of school tax rates; 
5. Sustainability. The efficient use of limited resources in order to achieve long-
term'sustainability and predictability in the support of public schools: 
6. Public funds. A more effective use of the public funds expended for the support 
of public schools by means of the creation of more cost-efficient organizational 
structures: and 
7. School choice. The preservation of existing opportunities for choice of schools. 
§1452. State and local cost reduction goals 
1. Cost reduction plans. By February 1. 2008. every school administrative unit and 
school union shall develop a plan to reduce costs by reorganizing administrative and 
noninstructional functions 
through 
collaboration. shared service arrangements. 
administrative reorganizations and other cost containment measures in order to achieve 
the legislative goal of reducing projected state and local expenditures in fiscal year 
2008-09 for transportation. facilities and maintenance and other noninstructional 
functions by 5% from projected expenditures for those purposes in fiscal year 2007-08 as 
adjusted for inflation. 
2. Adjustment to achieve 5% reduction. The commissioner shall adjust the total 
cost of the components of essential programs and services for transportation. facilities 
and maintenance and other noninstructional functions in fiscal year 2008-09 to achieve a 
5% reduction from the essential programs and services allocations for those purposes in 
fiscal year 2007-08 as adiusted for inflation. 
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to COMMITTEt AMENDMENT" A" to H.P. 383, L;D. 499 
3. Adjustment for system administration. The commissioner shall adjust the cost 
components of essential programs and services for system administration for fiscal year 
2008-09 to the per-pupil amount based on school year 2005-2006 system administration 
expenditures, reduced by 50% and inflated to an estimated allocation year level by a 10-
year average increase in the Consumer Price Index or other comparable index. 
§1453. Reorganization of school administrative units 
Not later than July 1. 2009. school administrative units in existence on the effective 
date of this chapter shaH complete a reorganization that creates regional state-approved 
units of school administration that: 
1. York and Cumberland. In York. County and Cumberland County, serve at least 
2,500 resident students. except that regional school administrative units in those counties 
with fewer than 100 people per square mile as determined by the most recent Federal 
Decennial Census must serve at least 1.200 students. with approved exceptions; and 
2. All other counties. In all other counties. serve at least 1.200 students, with 
approved exceptions. 
In completing the reorganization under this section. school administrative units shall 
strive to create 80 regional state-approved units of school administration or a number that 
meets the administrative efficiencies desired by the Legislature. 
§1454. Reorganization planning committees 
1. Establishment of reorganization planning committees. To accomplish the 
. purposes of this chapter. the commissioner shall assist in the-establishment of 
reorganization planning committees comprising all of the school administrative units in 
the State. 
2. Boundaries. The boundaries of the reorganization planning committees are as 
follows. 
A. 
On the effective date of this chapter, the provisional boundaries of the 
reorganization planning committees are the boundaries of the State's career and 
technical education regions and centers. 
B. 
By August 1. 2007. any existing educational service or ioint planning 
collaborative or similar group of school administrative units may apply to the 
commissioner for designation as a reorganization planning committee. 
The 
commissioner shall approve such applications upon a finding that the composition of 
the reorganization planning· committee is consistent with the goals and purposes of 
this chapter and that the school administrative units seeking such designation have a' 
history of working together on a cooperative basis toward achievement of educational 
goals, providing educational services or seeking greater efficiencies in the delivery of 
educational services. 
C. 
If approval of an application for designation as a reorganization planning 
committee under paragraph B reduces the geographic area and the number of school 
administrative units within a reorganization planning committee's jurisdiction as 
provisionally established under paragraph A so that the commissioner finds that it is 
no longer consistent with the goals and purposes of this chapter. the commissioner, in 
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consultation with affected school boards and superintendents. may reassign- affected 
scheol administrative units to- other reorganit.ation planning committees. 
D. No later than September 1. 2007. any existing school administrative unit or school 
union may apply to the commissiofler for reassignment from the reorganization 
planning committee to which it is "provisionally assigned pursuant to paragraph A to 
another reorganization planning committee. After consuhing with affected school -
boards and superintendents. the commissioner shall approve such awlication upon a 
rmding that the reassignment is consistent with the purposes of this chapter. If the 
commissioner finds that the reassignment will not be consistent with the goals and 
purposes of this chapter. the commissioner. in consultation with affected school 
boards and superintendents. may either reassign the remaining school administrative 
units and school unions to another reorganization planning committee or deny the 
application. 
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E. No later than September 15. 2007. the commissioner shall determine the final 
boundaries of the reorganization planning committees. 
F. 
In canying out the duties required by this chapter. reorganization planning 
committees and their participating school administrative units and school unions shall 
engage in ioint planning to develop school reorganization plans. At any time during 
the planning process. a school administrative unit or school union that proposes to 
participate in a school reorganization plan with one or more school units or school 
unions in another reorganization planning committee may petition the commissioner 
for permission to transfer from its designated reorganization planning committee to 
another reorganization planning committee. The commissioner may approve such a 
transfer after consulting with affected reorganization planning committees upon a" 
rmding that the proposed transfer will further the pumoses and goals of this chapter. 
If such approval is granted. the education. municipal and public representatives of the 
school administrative units or school unions petitioning for the transfer become 
members of the reorganization 'plalming committee to which the school 
administrative units or school unions have been transferred; 
3. Composition of reorganization planning committees. Each reorganization 
planning committee consists of the following members: 
A. 
One education representative from each school union and each school 
administrative unit that is not a member of a school union in the reorganization 
planning committee. 
Each education representative must be selected by that 
representative's respective school board or school union board: 
_ B. One municipal representative from the municipalities within each school union 
and one municipal representative from each school administrative unit that is not a 
member of a school union in the reorganization planning committee. Each municipal 
representative must be selected by a caucus of the municipal officers of the 
municipalities within each respective school administrative unit or school union: and 
C. Six members of the general pUblic. apjlOinted by a vote of the municipal and 
school officials serving as members of the regional planning committee. exce.pt that 
the number of public members may not exceed the number of school or muniCipal 
members. 
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The composition of the governing body of an existing educational service or ioint 
planning collaborative group approved as a reorganization planning committee by the 
commissioner under subsection 2. paragraph B remains unchanged. 
The respective appointing authorities shall fill any vacancy that occurs for the respective 
member. 
4. . Call of meeting; quorum. 
Upon the determination of the members of a 
reorganization planning committee. the commissioner shall call the initial meeting of the 
reorganization planning committee by notifying each member of the date. time and place 
of that meeting. At the initial meeting of the reorganization planning committee. 112 of 
.. the members constitutes a quorum. If a quorum-is not present the members present shall 
continue the meeting to a later date. Once a quorum is present the members may adopt 
rules of procedure. elect officers and conduct other lawful business they consider 
appropriate. 
§1455. Initial school reorganization plans 
The reorganization planning committees shall develop plans for reorganization of 
school administrative units according to the standards established by this section. 
1. Parameters .of reorganization plans. In developing a reorganization plan for 
school- administrative units in existence during the 2007·2008 school year, the 
reorganization planning committees shall work within the following parameters: 
A. Each regional school administrative unit located in York County or Cumberland 
County must serve at least 2,500 students. except that regional school units in York 
County or Cumberland County with fewer than 100 people per square mile as 
determined by the most recent Federal Decennial Census must serve at least 1.200 
students and each regional school unit in all other counties must serve at least 1.200 
students. with approved exceptions pursuant to paragraph C or D; 
B .. Each reorganized school administrative unit or school union in all counties except 
York and Cumberland must serve no fewer than 1.200 students. with approved 
exceptions pursuant to paragrap~ C or D; 
C. Exceptions must be made for geographically isolated school administrative units 
including coastal islands not connected by road or bridge to the mainland and 
geographic regions of the State where the population density is less than 30 
inhabitants per square mile according to the most recent Federal Decennial Census; 
D. Exceptions must be made for school adminIstrative units that are efficient high-
performing districts. A school administrative unit is an efficient high·performing 
district if: 
(1) At least 3 schools in the school administrative unit are identified as "higher 
performing" in the May 2007 Maine Education Policy Research Institute report 
"The Identification of Higher and Lower Performing Maine Schools"; and 
(2) The school administrative unit's reported 2005-2006 per-pupil expenditures 
for system administration represent less than 4% of its· total per-pupil 
expenditures; 
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E. The plan may not displace teachers or students or close any schools existing and 
operating during the 2008-2009 school year, except as school closings are permitted 
under section 4102. 
§1456. Department responsibilities 
The department has the following responsibilities in implementing this chapter: 
1. Reol%anization models. Preparing at the request of a reorganization planning 
committee one or more models for the reorganization of school administrative units 
consistent with the provisions of section 1455; 
2. Data. Assisting all reorganization planning committees in the collection and 
presentation of data pertinent to the charge established by this chapter; 
3. Meetings. Assisting"in the organization of the meetings and caucuses required by 
this chapter to establish reorganization planning committees and to prepare reorganization 
plans as provided in section 1457; 
4. Facilitation services. Providing or contracting for facilitation services to be 
provided to the reorganization planning committees to ensure their ability to fulfill the 
charges reguired by this chapter; and 
5. Adjustment of rates. Adjusting, with legislative approval, the essential programs 
and services rates for transportation. facilities and maintenance. other noninstructional 
services and system administration to reflect the cost reduction requirements of section 
1452, subsections 2 and 3; section 15680, subsection 1. paragraphs A and B; section" 
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§1457. Cost sharing 
A regional school unit may raise money, in addition to the local contribution pursuant 
to section 15690, subsection 1, for establishing and maintaining public schools, erecting 
buildings and providing equipment and for educational purpoSes. The additional local 
costs of operating a regional school unit must be shared among a11 municipalities within 
the regional school unit in accordance with the reorganization plan. except that cost- " 
sharing agreements in existence on the effective date of this section that were adopted 
pursuant to Public Law 2005. chapter 2 or pursuant to a private and special law remain in 
existence unless the agreement is modified or eliminated as part of a reorganization to 
regional school units under this chapter or as a result of a negotiated agreement between 
the parties to the cost-sharing agreement. 
Notwithstanding any provision of law to the contrary. a cost-sharing agreement in 
existence on the effective date of this section that was adopted pursuant to Public Law 
2005, chapter 2 or pursuant to a private and special law may not be construed to preempt 
the formation of a regional school unit under this chapter. " 
Notwithstanding any provision of law to the contrary. a cost-sharing agreement 
between 2 or more municipalities in existence on the effective date of this section that 
was adopted prior to the effective date of this section may not be construed to preempt the 
formation of a regional school unit under this chapter. 
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HOUSE AMENDMENT:5 " t~ COMMIITEE AMENDMENT" A" to H.P. 383, L.n. 499 
§14S8. Action on school reorganization plans 
1. - Review and approval of reorganization plans by commissioner. 
The 
commissioner shall review proposed reorganization plans and approve or disapprove the 
plans by July IS. 2008. The commissioner shall approve a reorganization plan upon 
finding that the plan is consistent with the goals and pUJposes of this chapter and that the 
plan has adeguately addressed the matters described in section 1453. If the commissioner 
detenD-ines that a plan for reorganization is not consistent with the purposes and goals of 
this chapter. or that it has not adeguately addressed the matters set forth in section 1453. 
the commissioner shall return the plan to the reorganization planning committee with 
specific suggestions for modification of the plan. 
In that event. the reorganization 
planning committee shall revise the proposed reorganization plan to address the 
commissioner's concerns and submit a revised reorganization plan not later than August 
15.2008. The commissioner shall approve or disapprove the revised reorganization plan 
byAugust 31. 2008. 
2. Submission of legislation. A school administrative unit or group of school 
administrative units of a proposed size or organizational structure previously disapproved 
by the commissioner is authorized to submit legislation for the pwpose of being 
established as a school administrative unit or school union eligible for certification 
pursuant to this chapter. 
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3. Approval of reorganization plan by voters. If a plan or revised reorganization 
plan has been approved by the commissioner by August 31. 2008. the municipal officers 
of each municipality in a proposed reorganized school administrative unit or school union 
shall place a warrant article substantially as follows on the ballot of a municipal 
referendum conducted in conjunction with the genera) election in November 2008: 
"Article .... : 
Shall the school reomanization plan prepared by the (insert 
name) reorganization planning committee and approved by the.-
Commissioner of Education to reorganize (insert names of affected 
school administrative units and school unions) with an effective date of 
July 1. 2009 be approved?" 
If a reorganization plan is approved by all of the affected municipalities. the 
commissioner shall issue a certificate of organization to the reorganized school 
administrative unit or school union. If the reorganization plan is approved by less than all 
of the affected municipalities. the commissioner may issue a certificate of organization 
for a reorganized school administrative unit or school union comprised of those 
municipalities that voted in favor of the plan if the reorganization plan so provides. 
4. Referendum costs. The department shall pay the cost of a referendum conducted 
before or on January 15. 2008. 
S. Consequences of failure to submit or gain approval of reorganization plans. 
Notwithstanding any other provision of this Title. the following adjustments to the 
calculation of subsidy under chapter 606-B are reguired beginning July 1, 2009 for a 
school administrative unit that is not a conforming school administrative unit 
A. The nonconforming school administrative unit's state subsidy must be reduced by 
an amount equal to 50% of the legislatively approved elementary school level, middle 
school level and high school level per-pupil essential programs and services rate for 
HOUSE AMENDMENT 
HOUSE AMENDMENT" 5 "to COMMITTEE AMENDMENT "A ~ to H.P. 383, L.D. 499 
system administration applied to the number of resident pupils at each school level in 
. that school administrative unit as of July 1. 2009 until such time as the school 
administrative· unit is compliant with the applicable minimum number of resident 
pupils, 
B. The penalty specified in paragrnph A does not apply to: 
(1) 
A school administrative unit that has been designated' as an approved 
exception to the minimum resident pupil reguirementor 
(2) 
A municipal school administrative unit whose voters have approved a 
reorganization plan under subsection 3, but which has not been issued a 
certificate of organization because one or more other municipalities have failed to 
approve the reorganization plan. 
If a reorganization planningooiiunittee fails to submit proposed reorganization plans as 
required by this section. if reorganization plans are disapproved by the commissioner or if 
one or more of the municipalities fail to approve a reorganization plan approved by the 
commissioner, the conimissioner shall submit a report to the ioint standing committee of 
the Legislature having jurisdiction over education matters that the reorganization 
planning committee or the nonapproving municipalities have not met the school 
reorganization goals of this chapter. A school administrative unit or group of school 
administrative units of a proposed size or organizational structure previously disapproved 
by the commissioner is authorized to submit legislation for the purpose of being 
established as a school administrative unit eligible for certification pUrsuant to this 
chapter. . 
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6. 
Additional planning authority. Reorganization planning committees are 
authorized and encouraged to engage in additional planning activities to redesign the 
provision of educational administrative and noninstructional services within the 
reorganization planning committee's region in a manner appropriate to the needs of the 
region and designed to help meet the expenditure reduction and cost containment 
reguirements of section 1452. The plan should: 
A. Recommend the number of educational administrative and noninstructional full-
time eguivalent positions reguired within the reorganization planning committee's 
region for principal, Sj>ecial education director, transportation director, technology 
officer, business agent or financial officer, human resources director and all 
reasonably equivalent positions; 
B. Recommend adjustments to the region's current profile of administrative and 
noninstructional personnel; 
C. 
Recommend the organization or reorganization of any joint purchasing 
arrangements between and among school administrative units within the 
reorganization planning committee area and between and'" among school 
administrative units and municipalities within the reorganization planning committee 
area: 
D. Recommend the coordination of schedules, including without limitation school 
calendars, school board meetings and school budget development and budget 
adoption meetings; 
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~. Recommend the development of coordinated school transportation systems; 
F. Recommend the administrative and noninstructional services that should be made 
available through an educational services collaborative for the benefit of school 
administrative units and municipal units of government in the region: and 
G. Recommend appropriate methods for addressing projected declines in student 
. enrollment over the next 10 years. including possible further reorganization. . 
7. Fast track option. If a reorganization plan is submitted to the commissioner on 
or before November 1. 2007. the reorganization planning committee submitting the plan 
may request that the reorganization take effect July 1. 2008 instead of July 1. 2009. In 
that case. the commissioner shall review and take action on the plan within 14 days of 
submission. If the commissioner determines that the plan should be approved without 
need of further revision. the municipal officers of each municipality in the proposed 
regional school unit may conduct the municipal referendum vote required by this section 
on January IS. 2008. in which case the referendum question otherwise required by this 
section must refer to an effective date of July 1. 2008, Subject to the requirements of this 
section. the commissioner shall issue a certificate of organization. and the operational 
date is July 1,2008. 
§1459. Contracts for secondary school programs 
1. Authority to contract; term. A reorganized school unit may contract with a 
nearby school administrative unit or with a private school approved for tuition purposes 
for all or part of the reorganized school unit's secondaly school pupils. The contract may 
run from a period of 2 to 10 years. The contract must also comply with section 2703 and 
may provide for the formation of a ioint committee in accordance with section 2704. A 
school administrative unit or school union created pursuant to this chapter that includes 
within it a school administrative unit or school union in existence prior to June 30. 2008 
that has contracted for secondary school programs is bound by the terms of that contract 
unless otherwise negotiated by the parties. 
2. Expiration of contract. After July 1. 2008. if a contract between a previous 
education unit and another previous education unit or a private school approved for 
tuition pwposes expires. and the previous education unit that was the sending. unit is a 
member of a regional school unit under this chapter. the provisions of this subsection 
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A. If the option of attending a public school in another school administrative unit or 
a private school approved for tuition purposes subject to chapter 219 was available to 
students in the previous education unit that option continues to be available to 
students who reside in the municipalities that comprised the previous education unit 
. after the municipaliWs inclusion in the regional school unit 
B. Th~ regional school unit may negotiate the contract pursuant to chapter 115. 
3. Absence of contract; maintenance of school choice opportunities. A student 
who resides in a school administrative unit that does not maintain that student's grade 
from kindergarten to grade 12 and does not enter into a contract for the education of its 
students pursuant to this chapter has the option of attending a public school in another 
school administrative unit or private school approved for tuition purposes subject to the 
HOUSE AMENDMENT 
HOUSE AMENDMENT 6 "to COMMITTEE AMENDMENT "A" to H.P. 383,L.D. 499 
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provisions of chapter 219 if that option was available from the previous school unit for 
the area in which that student resides. 
4. Additional expense. If. pursuant to subsection 3, a student attends a public 
school in another school administrative unit or private school approved for tuition 
purposes subject to the provisions of chapter 219, and the number of secondary school 
students from one or more municipalities in a regional school unit that attend a public 
school in a different school administrative unit or an approved private school is less than 
all the secondaiy school students in the regional school unit the sending municipality of 
the regional school unit is responsible for the additional expense calculated under this 
subsection. 
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A. For each secondary school student who attends a public school in another school 
administrative unit. the sending regional school unit is responsible for an amount 
equal to the number of secondaty school students from that regional school unit 
multiplied by the amount that the receiving regional school unit's tuition rate pursuant 
to section 5805 exceeds the amount of the sending regional school unit's tuition rate 
pursuant to section 5805. 
B. For each secondaty school student who attends a private school approved for 
tuition purposes subject to the provisions of chapter 219. the sending regional school 
unit is responsible for an amount equal to the number of secondary school students 
from the regional school unit attending the private school multiplied by the amount 
that the private school's tuition rate pursuant to section 5806, or the tuition rate per 
the contract. if less. exceeds the amount of the sending regional school unit's tuition 
rate pursuant to section 5805. 
Any additional expense may not be included in the regional school unit budget when 
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determining each member municipality's local contribution. 
Any additional expense must be paid by the responsible municipality in equal monthly 
amounts unless the regional school unit and the member municipality agree to another 
payment schedule. 
§1460. Transfer ofpropertv and assets 
1. School property. The governing body of each regional school unit established 
pursuant to this chapter shall determine what school property of the municipalities and of 
the school administrative units in existence prior to the operational date of the regional 
school unit within its jurisdiction is necessary to carry out the functions of the new 
regional school unit and shall request in writing that· the governing body of each 
preexisting school administrative unit or the municipal officers transfer title of their 
school property and buildings to the new regional school unit. 
2. Transfer. The municipal officers and boards contacted pursuant to subsection 1 
shall make the transfer. of property and assets notwithstanding any other provision in the 
charter of the school administrative unit or municipality; 
3. Financin~ assumed debts. A regional school unit shall assume the outstanding 
indebtedness and lease-purchase obligations of a school administrative unit in existence 
prior to the operational date of the new regional school unit for real and personal property 
transferred to the regional school unit. The directors of the regional school unit board 
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may. notwithstanding any other law to the contrary or any provision of a trust agreement. 
use any sinking fund or other money set aside by the school administrative unit in 
existence prior to the operational date of the new-regional school unit to payoff the 
indebtedness for which the money was dedicated. 
§1461. Debt liability 
This section governs the debt obligations existing at the time of reorganization 
accomplished pursuant to this chapter unless a different arrangement is made pursuant to 
a plan approved by the commissioner under this chapter. Any such plan must be 
consistent with subsection 2. 
1. Definitions. As used in this section, unless the context otherwise indicates. the 
following terms have the following meanings. 
A. 
"Existing debt" means any bond, note, loan arrangement. --lease-purchase 
agreement or other debt instrument issued prior to the operational date of a regional 
school unit for the purpoSes of funding public schools, or for refinancing such debt. 
that remains outstanding at -the time of a reorganization pursuant to this chapter. 
"Existing debt" does not include routine payables or commercial contract obligations. 
B. 
"New unit" means a school administrative unit or school union created or 
established pursuant to this chapter. 
C. "Onginal education unit" means: 
(I) A school administrative unit or school union that has existing debt; or 
(2) 
A municipality that has existing debt incurred on behalf of a school 
administrative unit or school union. 
2. Liability remains with original unit. Existing debt held by an original education 
unit remains the obligation of that original education unit after reorganization pursuant to 
this chapter. An original education unit may not be finally dissolved while any existing 
debt held by the original education unit remains outstanding. All aspects of an original 
education unit's administrative or political ()rganizationmay be merged into a new unit or 
otherwise modified to accomplish the purposes of this chapter but its existing debt and its 
right to secure payment of such debt from income streams that existed at the time of the 
issuance of such debt may not be affected or altered except as authorized by this section. 
A. A new unit -must agree to pay the existing debt of an original education unit that is 
included within the new unit with respect to any real and personal property 
transferred to the new unit pursuant to section 1460. In the event that the new unit 
fails to pay any amount of the existing debt. the originaledueation unit remains 
responsible for the deficiency. An original education unit may contract with a new 
unit for the administration of the payment of existing debt of the original education 
unit. An original education unit may transfer or delegate to a new unit all those 
pOwers and duties reasonable and necessmy for the payment of existing debt of the 
original education unit. A new unit may accept and exercise on behalf of the original 
education unit for the remaining term of any existing debt all those powers and duties 
reasonable and necessary for the payment of existing debt of the original education 
unit. 
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B. Notwithstanding any provision of law to the contrary or any provision of a trust 
agreement. a neW unit may use any' sinking fund or other money set aside by the 
original education unit to pay an exis?ng debt to pay that debt. 
C. 
A new unit may issue bonds or other debt instruments for the pwpose of 
refinancing or retiring the existing debt of an original education unit. The issuance of 
such bonds or other debt must be in accordance with applicable procedural 
reguirements. 
3. No impact on state debt subsidies. A change in an administrative or political 
organization resulting from the creation of a new unit may not affect any state subsidy 
with respect to existing debt or the relative portiori'ofimy such debt paid or reimbursed 
by the State except as provided in this subsection. 
A. The· original education unit may continue to pay its existing debt obligations in 
due course as though a new unit had not been created. and its choice to do so may not 
. re'duceor ·otherwise affect the level of state assistance or subsidy with respect to that 
existing debt. 
B. If the original education unit and the new- unit choose to refinance the existing 
debt. the state subsidy or assistance with respect to the debt must be determined as of 
the date of the new issuance and must be based on that refinancing and not on any 
previous subsidy or assistance calculation related to the existing debt. 
4. Debt of existing school units. For each original education unit with existing debt 
that has reorganized into a new unit. if the new unit has not agreed to assume liability to 
pay that existing debt. the governing body of the new unit shall serve as agent for 
purposes of that existing debt and may: 
A. 
Sue and be sued in the name of the original education unit in respect to the 
existing debt: 
B. Detennine the debt service due each flScal-year.on any. existing debt: 
C. 
As applicable, allocate to each member of the original education unit the 
member's share of the annual debt service for the existing debt of the original 
education unit in addition to each member's share of costs of the new unit; 
D. Collect the allocation for debt service on the existing debt from the original 
education unit or. as applicable, from each member of the original education unit in 
addition to each member's share of costs of the new unit: 
E. Pay the debt service on the existing debt of the original education unit when due: 
and 
. 
F. Take all other actions necessary and proper in respect of the existing debt. 
Allocations between members of the original education unit to pay the debt service for 
the existing debt must be made on the basis of the cost-sharing fonnula of the original 
education unit in effect on July 1. 2008. as· applied to the year of allocation. In the case of 
state subsidized debt service. the provisions of subsection 3 apply. Amounts to pay the 
debt service on the existing debt of the original education units must be included in the 
budget that the governing body of a new unit submits for approval. If the original 
education unit is divided between different new units that have not agreed to assume 
HOUSE AMENDMENT 
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HOUSE AMENDMENT"S" to COMMITTEE AMENDMENT "A" to H.P. 383, L.D. 499 
liability to pay the existing debt the commissioner shali require that the reorganization 
plan of one of those new units provide for that new unit to serve as agent for purposes of 
the existing debt of the original education unit. That new unit. as agent. has the authority 
provided by this subsection. except that it shall notify the other new units containing 
members of the original education unit of the amounts they must assess and coIlect from 
their members of the original education unit. and those other new units shall perform the 
functions in paragraphs C and D with respect to their members and shall pay the 
appropriate amounts over to the new unit serving as agent. 
S. Bonds to complete school construction and renovation. If the legislative body 
of an original education unit has authorized the 'issuance of bonds for a school 
construction project or a minor capital project. but that original education unit has not yet 
issued all of the authorized permanent bonds for that project. the board of the new unit 
that accepts a transfer of the real property for that project. or of the agreement pursuant to 
which the real prQperty for that project will be acguired. shall issue bonds or notes 
necessary to finance the completion of that proiect and to refund temporary notes that the 
original education unit issued in anticipation of perinanent bonds for that project. Further 
action by the legislative body of the new unit is not required. The bonds at any time 
outstanding for the project may not exceed the amount authorized by the legislative body 
of the original education unit except to the extent necessary to refund temporary notes on 
a current basis. Bonds or notes issued by the regional school unit board to complete 
projects of an original education unit and to ,refund temporcuy project notes of an original 
education unit must be issued in the name of the new unit and otherwise must be in the 
form and be subject to the procedural requirements as provided by this subsection. 
§1462. Operational date and transfer authority 
The provisions of this section apply to a reorganized school administrative unit or 
school union and its governing body created pursuant to this chapter. 
1. Operational date. The regional school unit becomes operational on the date 
established in the certificate of organization as approved by the commissioner pursuant to 
section 1458. subsection 3. 
2. Transfer of governing authority. The regional school unit board of directors, on 
the date' established pursuant to subsection 1. shall assume responsibility for the 
management and control of the public schools and programs within its jurisdiction. 
Those school administrative units in existence prior to the operational date of the new 
regional school unit on the date established in subsection 1 have no further rea>0nsibility 
for the operation, or control of the public schools and programs within the school 
administrative unit except those pursuant to section 1461. 
3. Transfer of school accounts. Notwithstanding section 15004 or any charter of a 
municipal school unit. school administrative district. community school district or 
regional school unit. the balance remaining in the school accounts of the former 
municipal school unit. school administrative district community school district or 
regional school unit within the new regional school unit must be paid to the treasurer of 
the new regional school unit and verified through the annual audit process pursuant to 
chapter 221. subchapter 2. The balance from each of the former municipal school units, 
school administrative districts, community school districts or regional school units must 
HOUSE AMENDMENT 
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be used to reduce that unit's or district's local contribution to the regional school unit. 
Payment may be made in egual monthly installm,ents during the implementation year. 
4. Transfer of teachers and employees. Except as' limited by paragraph A, all 
teachers and school employees who are employed, by a participating school 
administrative unit on the day prior to the date established pursuant to subsection 1 must 
be transferred to and employed by the regional school unit as of the date established 
pursuant to subsection 1. Except as limited by subsection 2. the regional school unit shall 
assume all of the legal obligations and duties that the participating school administrative 
units owed to their employees. including but not limited to those obligations and duties 
arising under federal law. state law.' collective bargaining agreements and individual 
employment contracts. Iti .. the. intent of this chapter to neither decrease nor increase the 
rights and benefits of transferred employees or the employer. The regional school unit 
also shall maintain and honor any agreements. contracts or policies regarding the rights 
and benefits of retirees and former employees created by a participating school 
administrative unit that is dissolved as a result of its inclusion within a regional school 
unit. 
A. Teachers or other employees whose employment terminates by application of law 
, or contract or by action of a participating school administrative unit before the date in 
subsection 1 may not be transferred. 
B'. The length of the probationary period of a teacher or other employee who is 
transferred to the regional school unit ,prior to the completion of the applicable 
probationary period for that teacher's or employee's position must be calculated from 
the date of that teacher's or employee's initial employment by the previous education 
unit. 
§1463. Collective bargaining 
1. Assumption of obligations. duties, liabilities and rights. On the operational 
date established pursuant to section 1462. subsection 1. the regional school unit board of 
directors shall assume all of' the obligations. duties. liabilities and rights of the 
participating school administrative units for all pwposes under Title 26. chapter 9-A. The 
regional school unit is considered a single employer. 
2. Trausfer of teachers and employees. Except as limited by paragraph A. for 
regional school units approved prior to January 16. 2008. all teachers and school 
employees who are employed by a participating school administrative unit on June 30. 
2008 must be transferred to and employed by the regional school unit as of July 1. 2008. 
Except as limited by paragraph A, for regional school units approved after January 15. 
2008 and before November S. 2008. all teachers and school employees who are employed 
by participating school administrative units on June 30. 2009 must be transferred and 
employed by the regional school unit as of July 1. 2009. Except as limited by paragraph 
B. the regional school unit shall assume aD of the legal obligations and duties that the 
participating school administrative units owed to their employees, including but not 
limited to those obligations and duties arising under federal law. state law. collective 
bargaining agreements and individual employment contracts. It is the intent of this 
chapter to neither decrease nor increase the rights and benefits of transferred employees 
or the employer. The regional school unit also shall maintain and honor anv agreements. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT "S .. to COMMITTEE AMENDMENT" A" to H.P. 383, L.D. 499 
contracts or policies regarding the rights and benefits of retirees and fonner employees 
created by a participating school administrative unit that is dissolved as a result of its 
inclusion within a regional school unit. 
A. For regional school units approved prior to January 16, 2008, teachers or other 
employees whose employment tenninates by armJication of law or contract or by 
action of a participating school administrative unit before July 1. 2008 may not be 
transferred. For regional school units approved after January 15, 2008 and before 
November 5, 2008, teachers or other employees whose employment terminates by 
application of law or contract or by action of a participating school administrative 
unit before July 1, 2009 may not be transferred. 
B. The length of the probationary period of a teacher or other employee who is 
transferred to the regional school unit prior to the completion of the armlicable 
probationary period for ~at teacher's or employee's position must be calculated from 
the date of that teacher's or employee's most recent date of employment by the 
participating school administrative unit. 
. 
3. Collective bargaining. The provisions of this subsection apply to collective 
bargaining. 
A. On July 1. 2008 for regional school units approved prior to January 16,2008 and 
on July 1. 2009 for regional school units armroved after January 15, 2008 and before 
November 5, 2008, the regional school unit board of directors shaH assume all of the 
obligations, duties, liabilities and rights of the participating school administrative 
units for all purposes under Title 26. chapter 9-A. The regional school unit is 
considered a single employer. Notwithstanding any other provision of law. the 
responsibilities of the regional school unit include: 
(l) . Continued recognition of all bargaining agents that represented any 
bargaining units of employees who were employed by a participating school 
administrative unit pending completion of merger proceedings described in this 
section: 
(2) 
Assumption and continued observance of all collective bargaining 
agreements between such bargaining agents and a participating school 
administrative unit. These agreements continue in effect for the remainder of 
their unexpired term unless the bargaining agent and regional school unit 
mutually agree otherwise: and 
(3) 
CoJlective bargaining for an initial or successor collective bargaining 
agreement in any bargaining unit in which a collective bargaining agreement is 
not in effect on the operational date and for any interim agreement that may be 
required to align expiration dates in a regional school unit-wide bargaining unit. 
as described in this subsection. 
B. As early as possible but no later than August 31. 2011 for regional school units 
approved prior to January 16, 2008 and no later than August 31. 2012 for regional 
school units approved after January 15. 2008 and before November 2, 2008, all 
bargaining units must be structured on a regional school unit~wide basis. Bargaining 
units that existed in the participating school administrative units shall merge in 
Page lS-123LR2452(28)-1 
HOUSE AMENDMENT 
HOUSEAMENDMENT "5 "to COMMITTEE AMENDMENT "A" to H.P. 383, L.D. 499 
accordance with the procedures and criteria in this section. Merger into regional 
school unit-wide bargaining units is not subject to approval or disapproval of 
employees. 
(1) Merger into regional school unit-wide bargaining units must be completed 
according to the schedule contained in this subsection. and no later ihan the latest 
expiration date of any collective bargaining agreement that was in effect on the 
operational date that covered any employees in the merged unit. 
(2) There must be one unit of teachers and, to the extent they are currently 
included in bargaining units. other certified professional employees. excluding 
principals and other administrators. 
(3) Any additional bargaining units in a regional school unit must be structured 
as set out in this subparagraph. 
(a) 
In the initial establishment of such units. units must be structured 
primarily on the basis of'the existing pattern of organization. maintaining the 
grouping of employee classifications into bargaining units that existed prior 
to the creation of the regional school unit and avoiding conflicts among 
different bargaining agents to the extent possible. 
(b) In the event of a dispute regarding the classifications to be included 
within a 'regioiiil school unit-wide bargaining unit the current bargaining 
agent or agents or the regional school unit may petition the Maine Labor 
Relations Board to determine the appropriate unit in accordance with this 
section and Title 26. section 966. subsections 1 and 2. 
(4) When there is the same bargaining agent in all bargaining units that will be 
merged into a regional school unit-wide bargaining unit the units must be 
merged as of the operational date. and the regional school unit shall recognize the 
bargaining agent as the representative of the merged unit. 
(5) When all bargaining units that will be merged into a· regional school unit-
wide bargaining unit are represented by separate local affiliates of the same state 
. labor organization. the units must be merged as of the operational date. The 
identity of the single affiliate that will be designated the bargaining agent for the 
merged unit must be determined by the existing bargaining agents and the state 
labor organization. Upon completion of the merger and designation of the 
bargaining agent and notification by the state organization to the regional school 
unit the regional school unit shall recognize the designated bargaining agent as 
the representative of employees in the merged unit. If necessary. the parties will 
. then execute a written amendment to any collective bargaining agreement then in 
effect to change the name of the bargaining agent to reflect the merger. 
(6) When there are bargaining units that will be merged into a regional school 
unit-wide bargaining unit in which there are employees who are not represented 
by any bargaining agent and other employees who are represented either by the 
same bargaining agent or separate local affiliates of the same state labor 
organization. the units must be merged as of the operational date as long as a 
majority of employees who compose the merged unit were represented by the 
HOUSE AMENDMENT 
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HOUSE AMENDMENT:5 "to COMMITTEE AMENDMENT "An to H.P. 383. L.D. 499 
bargaining agent prior to the merger. The procedures for merger of separate local 
affiliates of the same state labor organization described in subparagraph (5) must 
be followed if applicable. If prior to the merger a bargaining agent did not 
represent a majority of employees who compose the merged unit a bargaining 
agent election must be conducted by the Maine Labor Relations Board pursuant 
to subPm:agraph (8). 
(7) When there are unexpired collective bargaining agreements with different 
expiration dates in the merged bargaining units described in subparagraphs (4), 
(5) and (6), all contracts must be honored to their expiration dates unless 
mutually agreed to otherwise by the public employer and the bargaining agent. 
Collective bargaining agreements must be bargained on an interim basis in any 
merged bargaining unit so that all collective bargaining agreements expire on the 
same date. 
(8) When bargaining units with different bargaining agents must be merged into 
a single regional school unit-wide bargaining unit pursuant to this subsection. the 
bargaining agent of the merged bargaining unit must be selected in accordance 
with Title 26. section 967. except as modified in this subparagraph. 
(a) A petition for an election to determine the bargaining agent must be filed 
with the Maine Labor Relations Board by any of the current bargaining 
agents or the regional school unit. 
Cb) The petition must be filed not more than 90 days prior to the expiration 
date of the agreement having the latest expiration date among the bargaining 
units that will be merged into the regional school unit-wide bargaining unit. 
(c) The election ballot may contain only the names of the bargaining agents 
of bargaining units that will be merged into the regional school unit-wide 
bargaining unit and the choice of "no representative," but no other choices. 
No showing of interest is required from any such bargaining agent other than 
its current status as representative. 
(d) The obligation to bargain with existing bargaining agents continues from 
the operational date until the determination of the bargaining agent of the 
regional school unit-wide bargaining unit under this subsection; but in no 
event may any collective bargaining agreement that is executed after the 
operational date extend beyond the expiration date of the agreement having 
the latest expiration date among the bargaining units that will be merged into 
the regional school unit-wide bargaining unit that was in effect on . the 
operational date. 
(e) The Maine Labor Relations Board shall expedite to the extent practicable 
all petitions for determination of the bargaining agent in the regional school 
unit-wide bargaining unit filed pursuant to this subsection. 
(1) The bargaining units must be merged into a regional school unit-wide 
bargaining unit as of the date of certification of the results of the election by 
HOUSE AMENDMENT 
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HOUSE AMENDMENT~" to COMMITTEE AMENDMENT "A" to H.P. 383. L.D. 499 
the Maine Labor Relations Board.· or the expiration of the collective 
bargaining agreements in the unit whichever oCcurs later. 
C. After the merger of bargaining units into a regional school unit-wide bargaining 
unit. the bargaining agent of a regional school unit-wide bargaining unit and the 
regional school unit shall engage in collective bargaining for a collective bargaining 
agreement for the regional school unit-wide bargaining unit. In the collective 
bargaining agreement for each regional school unit-wide· bargaining unit the 
employment relations. policies. practices. salary schedules. hours and working 
conditions throughout the regional school unit must be made uniform and consistent 
as soon as practicable. 
In the event that the parties are unable to agree upon an initial regional school unit-
wide 'collective bargaining agreement they must, use the dispute resolution 
procedures pursuant to Title 26. section 965 to resolve their differences. 
§1464. Superintendent contracts 
The contracts between the superintendents and school administrative units and school 
unions within the new school administrative unit or school union are transferred to the 
new school administrative unit or school union's governing body. 
The new school 
administrative unit or school union's governing body shall detennine their duties within 
the new school administrative unit or school union. 
§1465. Addition of a school administrative unit to an existing regional school unit 
A school administrative unit not originally a member of a regional school unit may be 
included in the regional school unit in accordance with this section. 
1. Notice of intent. A school administrative unit shall file with the commissioner a 
notice of intent to engage in planning and negotiations to join with a regional school unit 
under this chapter. The commissioner shall res.pond to each notice of intent and provide 
information regarding the process and whether the intended action complies with the 
requirements of this chapter. 
2. Process to join a regional school unit. A school administrative unit may join an 
existing regional school unit in the same manner reguired for the fonnation of a regional 
school unit under section 1461. except that section 1458. subsections S. 6 and 7 do not 
rum!Y:. 
3. Referendum for a school administrative unit to join an existing regional· 
school unit. The municipal officers of each municipality in a proposed reorganized 
school administrative unit shall place a warrant article substantially as follows on the 
ballot of a municipal referendum in accordance with, the referendum procedures 
applicable to the school administrative unit of which the municipality is a member: 
"Article: Do you favor approving the school reorganization plan prepared by the 
(insert name) Reorganization Planning Committee for school administrative unit 
(insert name of affected school administrative unit) to join the regional school unit 
(name of regional school unit). with an effective date of (insert date)? 
Yes No" 
HOUSE AMENDMENT 
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HOUSE AMENDMENT.:5 "~o COMMITTEE AMENDM~NT "A" to H.P. 383, LD. 499 
The following statement must accompany the article: 
"Explanation: 
A "YES" vote means that you approve of the (municipality or school 
administrative unit) joining the proposed regional school unit. n 
4. Referendum on the admission of an additional school administrative' unit to 
an existine reeional school nnit. If the vote to join a regional school unit under 
subsection 3 was in the affirmative. the existing regional school unit shall call a regional 
school unit referendum to vote on the following article: 
"Article: Do you favor approving the school reorganization plan prepared by the 
(insert name) Reorganization Planning Committee for school administrative unit 
(insert name of affected school administrative unit) to join the regional school unit 
(name of regional school unit). with an effective date of (insert date)? 
. Yes'" No·i . 
The following statement must accompany the article: 
"Explanation: 
A "YES" vote means that you .approve of the (municipality or school 
administrative unit) joining the proposed regional school unit." . 
S. Results of referendum. A school administrative unit shall report the results of 
the referendum to the department following the referendum election. 
A. For a referendum conducted pursuant to subsection 3: 
(1) A reorganization plan is approved by a kindergarten to grade 12 school 
administrative district or kindergarten to grade 12 community school district if 
the majority of votes cast in the district is in favor of approval of the plan; . 
(2) A reorganization plan is approved by a regional school unit if the majority of 
votes cast in the regional school unit is in favor of approval of the plan: 
(3) 
A reorganization plan is approved by' the member municipalities of a 
community school district that does not provide public education for the entire 
span of kindergarten to grade 12 if the majority of votes cast in the member 
municipalities is in favor of approval of the plan. Approval results in all member 
municipalities joining the regional school unit for all purposes for kindergarten to 
grade 12: and 
(4) A municipal school unit. including a municipal school unit that is a member 
of a schoo] union. approves a reorganization plan if the majority of the votes cast 
in that municipality is in favor of approval of the plan. 
B. For a referendum conducted pursuant to subsection 4. a reorganization plim is 
approved by a regional school unit if the majority of votes cast in the regional school 
unit is in favor of approval of the plan. 
If a reorganization plan is approved by the affected schoo] administrative unit. the 
commissioner shall file notice of approval of the unit with the state board. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT:5 .. to COMMITTEE AMENDMENT "A" to H.P. 383, L.D. 499 
6. Amended certificate ·of ()n:anization. If a plan for reorgani"iation has been 
approved by the commIssioner and approved by voters at the referendum under . 
subsections 3 and 4. the commissioner shall issue an amended certificate of organization 
to the reorganized regional school unit 
Sec. XXXX-6. 20-A MRSA c. 112 is enacted to read: 
CHAPTER 112 
SCHOOL BUDGET TRANSPARENCY 
§2401. Cost center summary budget format 
After JanUary 31. 2008. the format of the annual budget of a school administrative 
unit consists of the following cost centers and supporting data: 
1. Expenditures. The following expenditures: 
A. Prekindergarten to grade 12 instruction. excluding special education; 
B. Instructional support. excluding special education: 
C. Special education; 
D. Leadership; 
E. Facilities maintenance: 
F. Transportation and buses; 
G. Debt service: and 
H. Other commitments: 
2. Revenue sources. The following revenue sources: 
_. A.. Total education costs 8Rpropriated pursuant to section 15690. subsection 1: 
B. 
Non-state-funded debt service costs approved pursuant to section 15690. 
subsection 2. if any; and 
C. Additional local funds. if any. approved pursuant to section 15690. subsection 3. 
paragraph A; 
. 
3. Summary. A summaI)' of total school administrative unit expenditures; and 
4. 
Optional local data. 
Other optional local data showing the amount and 
percentage of changes proposed in the state allocation. the local share and the total school 
administrative unit budget and related information determined appropriate by the 
governing body of the school administrative unit 
The warrant articles presented to the legislative body of the school administrative unit 
for approval of the school administrative unit budget must correspond to the categories of 
the cost center summary budget described in subsection 1. In addition to expenditure and 
revenue cost center sumrruny totals. the governing body shall provide to voters a 
reasonably detailed breakdown for each major subcategory within each budget category .. 
The department shall adopt routine technical rules pursuant to Title 5. chapter 375. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT -5" to COMMITTEE AMENDMENT "A" to H.P. 383, L.D. 499 
. subchapter 2-A defining and establishing the content of those infonnational 
subcategories. 
During the year for which the budget is approved using the cost center summary 
budget fonnat, the governing body may transfer an amount not exceeding 5% of the total 
appropriation for any cost center to another cost center or among other cost centers 
without voter approval. 
§2402. Budget adoption procedures 
Except as otherwise provided in section 15671-A with respect to proposed school 
budgets that exceed the maximum state and local spending targets. school budget 
adoption procedures must be controlled by municipal charter. municipal ordinance and 
municipal election laws for municipal school units by sections 1304 to 1309 for school 
administrative districts and. sections 1701 to-1701-B for community school districts. 
System administration budgets for school unions must be adopted pursuant to section 
1903. 
Sec. XXXX-7. 20-A MRSA c.114is enacted to read: 
CHAPTER1l4 
EDUCATIONAL SERVICE COLLABORATIVES 
§2601. Purpose and goals 
It is the policy of the State to encourage school boards of school administrative units 
and school unionS to form educational service conaboratives to provide joint or shared 
school administrative and noninstructional services. and where appropriate. to encourage 
municipalities. counties and other quasi-municipal corporations· to participate in 
educational service collaboratives. The pur.pose of educational service collaboratives is to 
achieve efficiencies in school administrative. noninstructional and specialized services. 
including purchasing. finance and payron. facilities. human resources and technology. 
transportation. food service. safety and security. health services and special education. 
When nonschool units of loea:! government and quasi-municipa:! corporations are 
participants in an educational service collaborative. the educationa:! service conaborative 
may provide corresponding services for such nonschool participants in order to achieve 
efficiencies for a:!l the participants. 
§2602. Educational service collaboratives authorized 
The governing bodies of school administrative units. school unions. municipalities. 
counties and other quasi-municipal cmporations may form and participate in educational 
service collaboratives in accordance with the procedures of section 2603. 
§2603. Formation of educational service collaboratives 
1. Submission of plan. A plan for an educational service collaborative may be 
developed and approved by the governing bodies of school administrative units. school 
unions. municipalities. counties and other quasi-municipal corporations. 
These 
participants sha:!1 submit the plan to the commissioner. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT :5 " 
to COMMITTEE AMENDMENT" A" to H.P. 383, LD. 499 
2. Plan contents. The plan for an educational service collaborative must include: 
A. The school administrative units and school unions to be included: 
B. The composition of the governing body; 
C The method of voting; 
D .. The proposed method of sharing costs; 
E. The designation of a member school administrativetlIiit or school union as fiscal 
agent: 
F. The type of services that the educational service collaborative intends to provide: 
G. Provisions for the addition and withdrawal of participants and for dissolution; and 
H. Provisions for amendment of the plan. 
3. 
Action by commissioner. 
Within 30 days of submission of a plan under 
subsection 1. the commissioner shall agprove the plan upon a finding that the plan is 
consistent with the purposes and goals of this chapter and. in cases where there is a 
nonschool participant that the plan is consistent with the education and education 
funding laws of this State. Alternatively, if the commissioner determines that a plan is 
not consistent with the goals and purposes of this chapter or that the plan is not consistent 
with the education and education funding laws of this State. the commissioner shall return 
the plan to the governing bodies of the participants with Sjlecific suggeStions for 
modification. If the commissioner does not approve a plan or return the plan with 
specific suggestions for modification within 30 days. the commissioner is deemed to have 
approved the plan. 
. 
4. Certificate of oreanizatioli. If the commissioner approves or is deemed to have 
approved the plan under subsection 3. the commissioner shall issue a certificate of 
organization for the educational service collaborative. The certificate of organization for 
an educational service collaborative must bear the official name of the educational service 
collaborative. the date of organization and the names of the participants. 
The 
commissioner shall file an attested copy of the certificate of organization with the 
Secretary of State. The issuance of a certificate of organization is conclusive evidence of 
the lawful organization of the educational service collaborative. 
62604. Representatives 
1. Appointment. The governing body of each school administrative unit. school 
union and nonschool participant of an educational service collaborative shall appoint one 
representative to the governing body of the educational service collaborative. 
The 
representative of each participant must be a member of its governing body or its 
superintendent or designee. Each representative serves at the will of the appointing 
governing body. 
2. Vacancies. The appointing governing body shall fill any vacancy that occurs. 
HOUSE AMENDMENT 
HOUSE AMENDMENT 6" t~ COMMITTEE AMENDMENT "A" to H.P. 383, L.D. 499 
§260S. Legal status 
An educational service- collaborative is a quasi-municipal corporation within the 
meaning of Title 30-A. section 2604, subsection 3 and a political subdivision within the 
.. _. 4 . 
.. meaning of Title 30-A. section 2252. 
§2606. Authority and powers 
The governing body of an educational service collaborative has the power and 
authori1y: 
1. Contracts. To enter into contracts and accept assignment of contracts by its 
-9 
participants subject to the requirements of Title 30-A. section 2605. 
2. Services. To hire staff or enter into agreements with its members for staff 
II 
services; 
3. Real estate. To acquire and to convey real estate and interests in real estate, 
including leases: 
4. Budget and cost sharing. To adopt an annual budget to expend funds and to 
share costs among its participants: 
5. Investment. To invest funds through its treasurer in accordance with Title 30-A. 
chapter 223, subchapter 3-A: 
6. Gifts and grants. To accept conditional and unconditional gifts and grants, 
--19 - . outright or in trust. Conditional gifts requiring ongoing commitment of funds must be 
authorized by the participants in accordance with applicable law: 
7. Lease-purchase financing. To issue municipal lease-purchase agreements to 
vendors or 3rd-party .lease-fmance companies to fmance equipment facilities, 
furnishings. instructional materials, software and related professional services and costs 
of issuance for school purposes and. when the educational service collaborative includes 
nonschool participants, for corresponding governmental purposes of such nonschool 
participants. The tenn of a lease-purchase agreement may not exceed the anticipated 
useful life of the property and in any case may not exceed 10 years. For purposes of and 
to the extent permitted by federal tax law. an educational service collaborative is 
considered a· subordinate entity controlled by the school administrative units, the 
members of the school unions and the nonschool participants who belong to the 
educational service collaborative. The participants may not delegate their taxing, eminent 
domain and police powers to the educational service collaborative; and 
8. Omanizational powers. To organize any corporate or other legally recognized 
entity, including nonprofit corporations and educational foundations under the United 
States Internal Revenue Code. Section 501(c)(3), and to enter into any other legally 
recognized arrangement for shared or joint provision of services for the pUIJ?ose of 
promoting the obiectives of this chapter. This. chapter does not limit the authority of 
public agencies. including school administrative units. to enter into agreements under 
Title 30-A. chapter 115 to exercise powers jointly. or the authority of school 
administrative units or school unions to enter into any other agreements pursuant to 
applicable law. 
. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT:) "to COMMITTEE AMENDMENT "A" to H.P. 383,L.D. 499 
§2607. Prohibited employment 
A member of the governing body of an educational service collaborative or spouse of 
a member may not be an employee of the educational service collaborative. " 
Sec. XXXX-8. 20-A MRSA §4102, sub-§5 is enacted to read: 
5. Approval required. The affirmative vote of at least two-thirds" of the elected 
membership or voting power of the board of directors of a school administrative district 
or a district school committee is required in order to close a school building in a member 
municipality. 
Sec. XXXX-9. 20-A MRSA §15680, sub-§l, ,A, as enacted by PL 2003, c. 
504, Pt. A, §6, is amended to read: 
A. System administration. The per-pupil amount for "system administration" is the 
actual system administration expenditures, as defined in the State's accounting 
handbook for local school systems, for the most recent year available excluding 
expenditures for leases and the purchase of land and buildings, less revenues to 
system administration for services to other governments and refunds from a ~tewide " 
school management association, divided by the average October and April enrollment 
counts for that fiscal year and then inflated to an estimated allocation year level by a 
10-year average increase in the Consumer Price Index or other comparable index ... 
Beginning in school year 2008-2009. this per-pupil amount must be based on school 
year 2005-2006 system administration expenditures then reduced by 50% and 
inflated to an estimated allocation year level by a 10-year average increase in the 
Consumer Price Index or other comparable index; 
Sec. XXXX-IO. 20-A MRSA §15680, sub-§l, ~, as enacted by PL 2003, c. 
504, Pt. A, §6, is amended to read: 
B. Operation and maintenance of plant. The per-pupil amount for "operation and 
maintenance of plant" is the actual operation and maintenance" of plant expenditures, 
as defined in the State's accounting handbook for local school systems, for the most 
recent year available excluding expenditures for leases and the purchase orland and 
buildings, divided by the average October and April enrollment counts for that fiscal 
year and then inflated to an estimated allocation year level by a 10-year average 
increase in the Consumer "Price Index or other comparable index. For school year 
2008-2009. the resulting per-pupil amount must be reduced by 5%; 
Sec. XXXX-ll. 20~A MRSA §15681-A, sub-§2-A is enacted to read: 
2-A. Reduction for fiscal year 2008-09. For fiscal year 2008-09: the commissioner 
shall reduce by 5% the allocation for special education costs as described in subsection 2. 
·These calculated special education costs for school administrative units for fiscal year 
2008-09 are subject to the appeals procedure described in subsection 2 . 
Sec. XXXX-12. 20-A MRSA §15681-A, sub-§3-A is enacted to read: 
" 
3-A. Reduction for fIScal year 2008-09. For fiscal year 2008-09. the commissioner 
shall reduce by 5% the allocation for transportation costs as described in subsection 3. 
These calculated transportation Costs for school administrative units for fiscal year 
2008-09 are subject to the appeals procedure described in subsection 3. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT:S "to COMMITTEE AMENDMENT "A" to H.P.383, L.D. 499 
Sec. XXXX-13. 30-A MRSA §5724, sub-§8, as enacted byPL 1987,c.737, Pt. 
A, §2 and Pt. C, §106 and amended by PL 1989, c. 6; c. 9, §2; and c. 104, Pt. C, §§8 and 
10, is further amended to read: 
. 
8. Tests and scoring services. Provide for the use by pupils attending nonpublic 
elementary and secondary schools within the municipality or a district the standardized 
tests and scoring services wffieB. that are in use in the public schools serving that 
municipality or district; and 
Sec. XXXX-14. 30-A MRSA §5724, sub-§9, as amended by PL 2003, c. 75, §3, 
is further amended to read: 
9. 
Advisory organizations. 
Obtain the services of educational advisory 
organizations. The Legislature recognizes the Maine School Management Association 
and the Maine School Boards Association as nonprofit advisory organizations and 
declares these associations to be instrumentalities of their member school administrative 
units, municipal and quasi-municipal corporations with their assets upon their dissolution 
to be delivered to the Treasurer of State to be held in custody for the municipalities of the 
State. An educational advisory organization may receive federal grants or contributions 
for their activities with respect to the solution of local problems. 
A municipality may provide health or remedial services to nonpublic school pupils as 
authorized by this section only .if those services are available to pupils attending the 
public school serving the municipality. 
Health and remedial services and instructional materials and equipment provided for the 
benefit of nonpublic school pupils under this section and the admission of pupils to the 
nonpublic schools must be provided without distinction as to race, creed, color, the 
national origin of the pupils or of their teachers. 
No instructional materials or 
instructional equipment may be loaned to pupils in nonpublic schools or their parents 
unless similar instructional material or instructional equipment is available for pupils in a 
public school served by a municipality. 
A recognized educational advisory organization may contract with a school 
administrative unit with fewer than 200 resident pupils for administrative services as 
pennitted by section 1051. subsection 7. 
Sec. XXXX .. 15. Reorganization planning committee responsibilities. The 
reorganization planning committees established pursuant to the Maine Revised Statutes, 
Title 20-A, chapter 103-A are responsible for developing plans for the reorganization of 
Maine school administrative units and school unions in accordance with Title 20-A, 
chapter 103-A and this section. 
1. Initial plans for consolidation. Initial plans for consolidation must comply with 
this subsection. 
A.· On or before March 1,2008, each reorganIzation planning committee shall submit 
to the Commissioner of Education a reorganization plan that meets the parameters for 
reorganization in Title 20-A, section 1455, subsection 1. The plan serves as an initial 
notification of intention to reorganize those affected school administrative units and 
school unions. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT? " to COMMITTEE AMENDMENT" A" to H.P. 383, L.D. 499 
B. The commissioner shall review each preliminary plan for school reorganization 
submitted pursuant to paragraph A and approve that plan by March 30, 2008· if the 
commissioner finds that the plan is consistent with the purposes and goals of Title 
20-A, chapter I03-A. 
Alternatively, if the commissioner determines that the 
preliminary plan is not consistent with the goals and purposes of chapter 103-A, the 
"6 
commissioner shall return the preliminary plan to the reorganization planning 
committee with specific suggestions for modification. 
In that event, the 
" 
reorganization planning committee shall revise the preliminary plan to address the 
commissioner's concerns and shall submit a revised plan to the commissioner no later 
than December 15, 2007. The commissioner shall approve or disapprove the revised 
plan by December 31, 2007. 
2. Plans for school unit and school union reorganization. On or before June 30, 
2008, each reorganization planning committee shall submit to the commissioner a fmal 
plan for the reorganization of school administrative units and school unions within the 
region with a goal of ensuring that each school union and each school administrative unit 
not a member of a school union serves at least 2,500 resident pupils if located within 
York County or Cumberland County, except that regional school units in those counties 
with fewer than 100 people per square mile as determined by the most recent Federal 
Decennial Census must serve at least 1,200 students, and "each regional school unit "in all" 
other counties must serve at least 1,200 students, with approved exceptions pursuant to 
Title iO-A, section 1455, subsection 1, paragraphs C and D. The plans for reorganization 
must address at a minimum the following matters consistent with the requirements 
established in Title 20-A, section 1455: 
A. The school administrative units to be inCluded in the proposed reorganized school 
2S 
administrative unit or school union; 
B. The size, composition and apportionment of the governing body; 
C. The method of voting of the governing body; 
D. The method of sharing costs; 
E. The disposition of real and personal school property in accordance with Title 
20-A, section 1460; 
F. The disposition of existing school indebtedness and lease-purchase obligations in 
accordance with Title 20-A, section 1461; 
G. 
The assignment of school personnel contracts, school collective bargaining 
agreements and other school contractual obligations in accordance with Title 20-A, 
section 1462; 
H. The disposition of existing school funds, including undesignated fund balances, 
trust funds, reserve funds and other funds appropriated for school purposes; 
I. A plan that ensures the timely development of a budget for " the 2009-2010 school 
year and interim personnel policies; 
J. Documentation of the public meeting or public meetings held to prepare or review 
the reorganization plan; 
HOUSE AMENDMENT 
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HOUSE AMENDMENT:5 " to COMMITTEE AMENDMENT "A" to H.P. 383, L.D. 499 
K. An explanation of how units that approve the reorganization plan will proceed if 
. one or more of the proposed members of the regional school unit fail to approve the 
plan; 
L. An estimate of the cost savings to be achieved through fonnation of a regional 
school unit and how costs will be reduced or increased, as applicable; and 
M .. Such other matters as the governing bodies of the existing school administrative 
units and school unions detennine to be necessary. 
Sec. XXXX-16. Submission of reports. The Department of Education shaH 
submit annual reports to the Legislature no later than January 1, 2008 and January 1, 
2009 that describe the progress of the reorganization planning committees and 
participating school administrative units with the requirements of the Maine Revised 
Statutes, Title 20-A, chapter 103-A. The report submitted by January 1, 2008 must· 
include a description of those proposed regional school units that have opted to hold a 
referendum vote on consolidation in January 2008 as well as a description of the progress 
in planning of all other proposed reiional school units and th~_ existing o~stacles to 
consolidation in those proposed units. 
Elements of the plans for mUltimunicipal school administrative units related to the 
size, composition, apportionment and method of voting of the governing body must 
confonn to the requirements of Title 20-A, chapter 103, subchapter 3 and chapter 105, 
subchapter 2, as applicable. 
Sec. XXXX-17. 
Notification of allocation of funding to . school 
administrative units. Notwithstanding the Maine Revised Statutes, Title 20-A, section 
IS689-B, subsection 2, paragraph A, the notice by the Commissioner of Education to 
school boards of the estimated amount of state funds to be allocated to the school 
administrative unit for school years 2008-2009 and 2009-2010 must be provided not later 
than March 31st. 
Sec. XXXX-18. Adjustment for regional school unit start-up costs. The 
Commissioner of Education shall establish an adjustment for fiscal year 2008-09 to 
support the start-up costs associated with the reorganization of school administrative units 
to regional school units in accordance with the Maine Revised Statutes, Title 20-A, 
chapter 103-A. 
Sec. XXXX-19. Department to conduct review. The Department of Education 
shall conduct a review. of unfunded state mandates pertaining to school systems. In 
conducting its review, the department sh~l: 
I. List oCmandates. Prepare a comprehensive listing of the state mandates placed 
on school administrative units; 
2. Legal origin of mandate. Identify for each listed mandate the precise legal origin 
of the mandate, whether state law or rule or a combination of both, or any originating 
authority. The department also shall provide notice and analysis of federal mandates that 
contribute to or conflict with specific state mandates on school administrative units; 
3. Costs of mandates. Identify the statewide local government costs of each listed 
mandate within the limits of practicability; and 
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HOUSE AMENDMENT 
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. HOUSE AMENDMENT ~ 
"to COMMITTEE AMENDMENT "A" to H.P. 383,L.D. 499 
4. Characteristics of mandates. Identify the characteristics of each listed mandate. 
14e~tifi~ ,c}lar~!eristics may include, but are not limited to, the following: 
A. Archaic or unnecessary features or features lacking significant public purpose; 
B. Inadequate funding; 
C. Disproportionate efforts for the public policy benefit; 
D. Coordination between federal law and regulation and state law and rule; 
E. Subjection to excessive administrative oversight; and 
F. An insufficient structure to predict, measure or control local costs. 
No later than December 15, 2008, the department shall submit a report that includes 
its findings and recommendations, including suggested legislation, for presentation to the 
joint standing committee of the Legislature having jurisdiction over education matters. In 
its proposed implementing language, the department may include proposals to repeal, 
modify. redesign, effectively coordinate or delay the implementation of any of the listed 
mandates. as may be appropriate. 
Following receipt and review of the report, the 
conu:nittee may submit a bill to the First Regular Session of the 124th Legislature. 
Sec. XXXX-20. Report; additional necessary implementing legislation. 
No later than January 31,2008, the Commissioner of Education shall submit to the Joint 
Standing Committee on Education and Cultural Affairs a report that contains 
recommendations and any proposed legislation necessary to fully implement this Part. 
Following receipt and review of the report, the Joint Standing Committee on Education 
and Cuitural Affairs may submit legislation to the Second Regular Session of the 123rd 
Legislature. No later than January 31. 2009, the Commissioner of Education shall submit 
to the joint standing committee of the Legislature having jurisdiction over education 
matters a final report that contains recommendations and any proposed legislation 
necessary to fully implement this Part. Following receipt and review of the final report, 
the joint standing committee of the Legislature having jurisdiction over education matters 
may submit legislation to the First Regular Session of the 124th Legislature.' 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter 
or section number to read consecutively .. 
SUMMARY 
This amendment changes the framework for the reorganization of school 
administrative units as proposed in Committee Amendment "At> in the following ways: 
1. It provides for a January 2008 referendum as an option to a mandatory referendum 
required to be held in November 2008, which will allow certain school administrative 
districts to be fully consolidated by July 1, 2008; 
2. It establishes minimum sizes for regional school units in York County and 
Cumberland County of 2,500 resident students and 1,200 resident students in all other 
counties. with approved exceptions for both size requirements; and 
HOUSE AMENDMENT 
HOUSE AMENDMENT..:5 "to COMMITTEE AMENDMENT "A" to H.P. 383, LD. 499 
"I 
3. It authorizes school administrative units and school unions to fonn educational 
service collaboratives to provide joint or shared school administrative and 
noninstructional services. 
SPONSOREDBY: __ ~~ 
__ ~ 
__ ~ 
____ ~~ 
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(Representative FARRINGTON) 
TOWN: Gorham 
HOUSE AMENDMENT 
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Approved: 06/04/07 
~aC!. 
LD499 
LR2452(28) 
An Act Making Unified Appropriations and Allocations for the Expenditures of State Government, 
General Fund and Other Funds, and Changing Certain Provisions of the Law Nece~sary to the Proper 
Operations of State Government for the Fiscal Years Ending June 30, 2008 and June 30, 2009 
Fiscal Note for House Amendment::5 n to Committee Amendment "A" 
Sponsor: Rep. Farrington of Gorham 
Fiscal Note Required: Yes 
Fiscal Note 
No net fiscal impact 
Fiscal Detail and Notes 
This amendment does not affect General Fund appropriations during the 2008-2009 biennium and a balanced budget is 
maintained. 
LR2452(28) - Fiscal Note - Page 1 of I