An Act To Allow Municipalities To Establish Foundations To Support Education
Maine Legislature, Session 123, LD 0702
Committee: State and Local Government
Sponsors: HOLMAN, McCORMICK, CROSTHWAITE, CUMMINGS, FAIRCLOTH, FLOOD, JOY, TARDY, BENOIT, BRANNIGAN
Amends: 30-A MRSA §5652

Legislative Document 
No. 702 
H.P.533 
House of Representatives, February 12,2007 
An Act To Allow Municipalities To Establish Foundations To 
Support Education 
Reference to the Committee on State and Local Government suggested and ordered printed. 
Presented by Representative HOLMAN of Fayette. 
Cosponsored by Senator McCORMICK of Kennebec and 
'111~ /17. 7f/d£~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: CROSTHWAITE of Ellsworth, Speaker CUMMINGS of Portland, 
FAIRCLOTH of Bangor, FLOOD of Winthrop, JOY of Crystal, TARDY of Newport, 
Senators: BENOIT of Sagadahoc, BRANNIGAN of Cumberland. 
Pnnted on recyl.: led paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 30-A MRSA §5652, first ~, as enacted by PL 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: 
The municipal officers may accept a donation of money to the municipality to 
supplement a specific appropriation already made, to reduce the tax assessment, to endow 
a municipal education foundation pursuant to section 5724, subsection 10 or to reduce the 
permanent debt. 
Sec. 2. 30-A MRSA §5652, sub-§2 is enacted to read: 
2. 
Funding municipal education foundations. 
A municipality may accept 
endowment funds from citizens, estates, municipal contributions and bond money to fund 
a municipal education foundation to support local education pursuant to section 5724, 
subsection 10. The foundation may not spend the funds until it meets certain growth 
standards recommended by the Executive Department, State Planning Office. 
Sec. 3. 30-A MRSA §S724, sub-§10 is enacted to read: 
10. 
Municipal education foundations. 
A municipal education foundation is 
established with the assistance of the Executive Department, State Planning Office and 
must contain the following provisions. 
A. The endowment of a municipal education foundation is funded by contributions 
by citizens, estates, municipalities and bond money if the foundation meets the 
Executive Department, State Planning Office standards pursuant to section 5652, 
subsection 2. 
B. Trustees of a municipal education foundation must be citizens of the municipality 
and contain at least one member who is a teacher or administrator in the 
municipality's education system to be a liaison between the school system and the 
municipal education foundation. 
Sec. 4. 
Executive Department, State Planning Office to create template. 
The Executive Department, State Planning Office shall create a template for 
municipalities to use in establishing municipal education foundations pursuant to the 
Maine Revised Statutes, Title 30-A, section 5724, subsection 10. The template must 
include: 
1. 
Recommendations for the structure of the board and bylaws of the municipal 
education foundation; 
2. Standards for a municipality to have reached in order to qualify for endowment 
funds from any dedicated bond proceeds to act as seed money of at least $20,000 to 
begin the municipal education foundation; and· 
3. Recommendations of investment standards to the municipalities. 
Page I - 123LR0543(OI)-1 
SUMMARY 
This bill authorizes the establishment of municipal education foundations to support 
education. The bill directs the Executive Department, State Planning Office to establish a 
template for municipalities to use to establish a foundation and authorizes municipalities 
to accept funds to endow the municipal education foundations.