An Act To Amend School Funding Laws I °
Maine Legislature, Session 123, LD 2314
House Amendment HA_A_H1000 (House)
Amends: Title 20-A, Section 15681, 20-A MRSA §1452, 20-A MRSA §1472, 20-A MRSA §1472-A, 20-A MRSA §1478, 20-A MRSA §1481-A, 20-A MRSA §1482-B, 20-A MRSA §1506, 20-A MRSA §1512, 20-A MRSA §1701-C, 20-A MRSA §2303, 20-A MRSA §5203, 20-A MRSA §5204, 20-A MRSA §6051, 20-A MRSA §15688, 20-A MRSA §1

HOUSE AMENDMENT "II-" to H.P. 1675, L.D. 2314, Bill, "An Act To Amend 
School Funding Laws" 
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Amend the bill by striking out everything after the enacting clause and before the 
II 
emergency clause and inserting the following: 
'PART A 
Sec. A-l. 20-A MRS A §1305-C, as enacted by PL 2007, c. 240, Pt. XXXX, § II, 
is amended to read: 
§1305-C. Mandatory budget validation and cost center summary budget form 
Notwithstanding any other law, school administrative district budgets developed after 
January 1, 2008 must conform to the format and referendum procedures for regional 
school units as set forth in sections 1305 A and 1305 B 1485 and 1486. 
A school 
administrative district is deemed to be a regional school unit solely for the purpose of 
developing a budget pursuant to sections 1485 and 1486. 
Sec. A-2. 20-A MRSA §1452, as enacted by PL 2007, c. 240, Pt. XXXX, §13, is 
amended to read: 
§1452. Application of general law; core functions of a regional school unit 
Notwithstanding any provision of law to the contrary, schools operated by the 
regional school units established in accordance with this chapter are the official schools 
of the participating municipalities. The provisions of general law relating to public 
education apply to these schools. State funds for public schools must be paid directly to 
the treasurer of a regional school unit. The core functions for which a regional school unit 
is responsible include without limitation: 
1. Employment of superintendent. Employment and discharge of a superintendent 
pursuant to section 1001, subsection 3 and chapter 10 1, subchapter 2; 
2. 
Performance of business functions. 
Administration of accounting, payroll, 
financial management, purchasing insurance and auditing; 
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3. Special education administration. Administration of special education duties of 
school administrative units under chapter 303; 
4. Transportation. Administration of transportation; 
5. 
Core curriculum. Adoption of a core curriculum, standardized testing and 
assessments aligned with the system of learning results established in section 6209; 
6. Budget. Adoption of the regional school unit budget; 
7. Reporting. Reporting required by state or federal law or regulation; 
8. Employment. Functioning as the employer of all employees working within the 
regional school unit for collective bargaining purposes and for all other purposes, 
including but not limited to those contained in section 1464, in Title 26, chapter 9-A and 
in all state and federal laws regulating the rights and duties of employers and employees; 
9. School calendar. Establishment of a common school calendar, subject to local 
variations permitted by the regional school unit board; and -- -
10. Adoption of policies. Adoption of policies for alI schools in the regional school 
unit pursuant to section 1001, subsection I-A, except that the local school committee may 
adopt policies not in contlict with the regional school unit policies. 
Sec. A-3. 20-A MRS A §1461-A is enacted to read: 
§1461-A. Transitional powers and duties of initial regional school unit board 
As used in this section, unless the context indicates otherwise, "regional school unit 
board" means the initial regional school unit board elected pursuant to section 1472-A. 
From the time of election of the regional school unit board to July 1st of the regional 
school unit's first operational year, the regional school unit board shall establish interim 
rules of procedures and shall elect officers who shall serve until officers are elected at a 
meeting following the operational date of the regional school unit. The regional school 
unit board's powers and duties during this period are governed by this section. 
1. 
Selection of superintendent. The regional school unit board shaH select a 
superintendent for the regional school unit in accordance with section 1051 to carry out 
the duties specified in section 1055. During the interim period, the salary, office and other 
expenses of the superintendent, as weB as the costs of the regional school unit board, 
including insurance, must be allocated to the school administrative units by the cost-
sharing formula established in accordance with section 1481-A and included in the 
reorganization plan for the regional school unit. 
2. Budget preparation and approval. The regional school unit board shall prepare 
the annual budget for the first operational year of the regional school unit in time for its 
presentation to and consideration by the regional school unit board in accordance with 
subchapter 4. Specific duties may be assigned to existing personnel with the approval of 
the employing school administrative unit. The regional school unit board shall complete 
the budget development process and recommend a budget for consideration by the 
legislative body responsible for final budget approval and the residents of the regional 
school unit. The budget format, approval procedures and assessments for the regional 
school unit's first operational year budget must be in accordance with this chapter. 
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3. Authorization. The regional school unit board is authorized to take all other 
actions provided under state law to prepare the regional school unit to become operational 
on July 1st for the first operational year, including the authority to open and maintain 
accounts, to incur expenses to be allocated among the regional school unit's member 
school administrative units in accordance with the reorganization plan for the regional 
school unit and to file applications for school construction projects and revolving 
renovation fund loans and other available funding. 
4. Fiscal agent. The regional school unit board is authorized to expend start-up 
funds for the regional school unit. 
A school administrative unit within the regional 
school unit may serve as a fiscal agent and may expend any start-up funds on behalf of 
the new regional school unit prior to the regional school unit's operational date without 
calling for a special meeting of the local legislative body. 
Sec. A-4. 20-A MRSA §1472, sub-§2, ~C, as enacted by PL 2007, c. 240, Pt. 
XXXX, § 13, is amended to read: 
C. A plan may not permit the voting power of any director to exceed by more than 
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5% the percentage of voting power the director would have if all 1,000 votes 
were apportioned equally among the directors. 
Sec. A-S. 20-A MRSA §1472-A is enacted to read: 
§1472-A. Election of initial regional school unit board 
1. 
Election; interim secretarY: duties. 
Within 30 days of the issuance of a 
certificate of organization for the regional school unit by the state board pursuant to 
section 1461, subsection 7, the members of the school boards of the school administrative 
units within the regional school unit shall conduct a joint meeting for the purposes of 
electing an interim secretary of the regional school unit and determining a date for the 
election of the initial regional school unit board. The interim secretary shall notify the 
municipal officers of the member municipalities of the regional school unit of the date of 
the election. The election must be conducted in accordance with section 1473, subsection 
2, except that the election duties of the secretary and the regional school unit board must 
be performed by the interim secretary. The duties of the interim secretary include: 
A. Notifying the municipal officers of the date of the election; 
B. 
Furnishing nomination papers at least 10 days before the deadline for filing 
nomination papers; 
C. 
Receiving completed nomination papers in accordance with section 1473, 
subsection 2; 
D. 
Preparing and distributing election ballots in accordance with section 1473, 
subsection 2; 
E. 
Receiving the town clerk's certification of the results of the voting in each 
member municipality; 
F. 
Tabulating the town clerk's certification of the results of the voting III each 
member municipality; 
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G. Accepting any recount petitions that may have been filed pursuant to section 
1473, subsection 2, paragraph C; and 
H. 
Totaling the votes cast for each candidate and notifying the clerk in each 
municipality, the candidates and the commissioner of the final results of the voting 
and the names and addresses of the persons elected as directors. 
2. Initial meeting. In accordance with section 1473, subsection 1, the clerk of each 
municipality within the regional school unit shall forward the names and addresses of the 
directors elected to represent that municipality to the state board with other data regarding 
their election as the state board may require. On receipt of the names and addresses of all 
of the directors, the state board shall set a time, place and date for the first meeting of the 
directors and give notice to the directors in writing, sent by registered or certified mail, 
return receipt requested, to the addresses provided by the municipalities. 
Sec. A-6. 20-A MRS A §1472-B is enacted to read: 
§1472-B. Staggered initial terms 
Notwithstanding section 1471, subsection 2, the initial directors elected to a regional 
school unit board shall meet and draw lots for their term lengths as specified in this 
section. 
1. Municipalities with annual elections. In municipalities with annual elections, 
1/3 of the directors serve one-year terms, 1/3 of the directors serve 2-year terms and 1/3 
ofthe directors serve 3-year terms. Ifthe number of directors is not evenly divisible by 3, 
the first remaining director serves a 3-year term and the 2nd remaining director serves a 
2-year term. 
2. Municipalities with biennial elections. In municipalities with biennial elections, 
half of the directors serve 4-year terms and half ofthe directors serve 2-year terms. If the 
number of directors is not divisible by 2, the remaining director serves a 4-year term. 
The directors shall serve their terms as determined under this section and any 
additional period until the next regular election of the municipalities. Thereafter, the 
directors' terms of office are as established in section 1471. 
Sec. A-7. 20-A MRSA §1478, as enacted by PL 2007, c. 240, Pt. XXXX, § 13, is 
repealed and the following enacted in its place: 
§1478. Local school committees 
1. Formation. A reorganization plan under section 1461 or a regional school unit 
board may authorize the formation of a local school committee for a member 
municipality established in accordance with chapter Ill, subchapter 1. 
2. 
Delegation of functions. 
A reorganization plan that has been approved in 
accordance with subchapter 2 or a regional school unit board may delegate a local school 
committee to perform any duties, functions and services other than those reserved to the 
regional school unit under subchapter I. The core functions provided by a regional 
school unit pursuant to section 1452 may be supplemented at the expense of any member 
municipality. 
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3. 
Budget responsibility. 
A reorganization plan that has been approved in 
accordance with subchapter 2 or a regional school unit board may authorize a local school 
committee to present to the board a proposed budget for the local school in a form that is 
consistent with section 1485. The proposed local school budget must be submitted in 
time to be included in the budget for the regional school unit. Proposed expenditures that 
are not included in the regional school unit budget may be separately appropriated by the 
municipality to be expended by the regional school unit in accordance with the 
appropriation. Supplemental municipal appropriations for education are not subject to 
section 1486. 
4. Title to property. School property overseen by a local school committee may be 
owned either by the municipality or by the regional school unit as long as there is a clear 
allocation of responsibilities for management of all of the school property in the regional 
school unit. 
Sec. A-8. 20-A MRS A §1481, as enacted by PL 2007, c. 240, Pt. XXXX, § 13, is 
-- ~pealed. 
Sec. A-9. 20-A MRSA §1481-A is enacted to read: 
§1481-A. Finances 
1. Apportionment of costs for regional school unit. 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 for educational purposes. The additional costs of operating a regional school 
unit must be shared among all municipalities within the regional school unit by the same 
local share percentages for each municipality resulting from the determination of the local 
contribution under section 15688. 
2. Existing cost-sharing agreement. Notwithstanding subsection 1, a cost-sharing 
agreement in existence on June 7, 2007 that was adopted pursuant to Public Law 2005, 
chapter 2 or pursuant to a private and special law remains in existence unless the parties 
to the agreement modifY or terminate the agreement: 
A. As part of a reorganization to regional school units under this chapter; or 
B. As a result of a negotiated agreement between the parties to the cost-sharing 
agreement. 
3. Method included in reorganization plan. Notwithstanding subsection 1, a 
regional school unit may use a method of cost sharing that was included in a 
reorganization plan developed pursuant to section 1461 or Public Law 2007, chapter 240, 
Part XXXX, section 36 as long as the method complies with this subsection. 
A. 
The costs of operating a regional school unit must be shared among all 
municipalities within the unit in one of the following ways. 
(I) Under a property valuation method, municipalities in a unit shall share costs 
in the same proportion as each municipality's property fiscal capacity as defined 
in section 15672, subsection 23 is to the unit's property fiscal capacity. 
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(2) Under an alternate method of cost sharing, municipalities in a unit shall share 
costs based on: 
(a) The number of resident pupils in each town; 
(b) The property fiscal capacity of each member municipality as defined in 
section 15672, subsection 23; 
(c) Any combination of divisions (a) and (b); or 
(d) Any other factor or combination of factors that may, but need not, 
include divisions (a) or (b). 
B. 
A process of amending the cost-sharing formula must be included in the 
reorganization plan. 
Notwithstanding any provision of law to the contrary, a cost-sharing agreement in 
existence on June 7, 2007 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 June 
7, 2007 that was adopted prior to June 7, 2007 may not be construed to preempt the 
formation of a regional school unit under this chapter. 
Notwithstanding any provisions of law to the contrary, a municipality within a 
regional school unit may raise money and direct the spending of the funds to any school 
within the regional school unit. 
Sec. A-lO. 20-A MRSA §l482-A is enacted to read: 
§1482-A. Budget meeting 
A regional school unit board shall hold a regional school unit budget meeting at a 
time it determines. 
1. Warrant. The budget meeting must be called by a warrant. The warrant must: 
A. Be signed by a majority of the regional school unit board; 
B. Specify the time and place of the meeting; 
C. Include the proposed school budget and other articles the regional school unit 
board chooses to place before the voters, excluding authorization to borrow money 
for school construction purposes; 
D. Specify the state and local shares of the state-local allocation and local leeway 
and additional expenditures without state participation; and 
E. Be directed to a resident of the regional school unit by name ordering the resident 
to notify all voters within the regional school unit to assemble at the time and place 
appointed. 
2. Notice. An attested copy of the warrant must be posted by the person to whom it 
is directed in some conspicuous public place in each of the municipalities within the 
regional school unit at least 7 days before the meeting. The person who gives notice of 
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the meeting shall make a return of the posting on the warrant stating the manner of notice 
in each municipality and the time when it was given. 
3. Requested articles. If requested by a written petition of at least 10% of the 
number of voters voting for the gubernatorial candidates in the last gubernatorial election 
in each municipality within the regional school unit, the regional school unit board shall 
place specific articles, not in conflict with existing state statutes, in the warrants for 
consideration at the next annual regional school unit budget meeting. To be included in 
the warrant, a petition must be received by the regional school unit board at least 15 days 
before the date set for the budget meeting. When placed on the warrant, the articles must 
be considered before action relating to the appropriation of money for the operation of 
schools may be taken. 
Sec. A-1t. 20-A MRSA §1482-B is enacted to read: 
§1482-B. Annual budget meeting procedures 
The following procedures must be used at a regional school unit annual budget 
meeting. 
1. Election of moderator. The secretary of the regional school unit board or the 
chair of the regional school unit board when the secretary is absent shall open the annual 
budget meeting and call for the election of a moderator, receive and count votes for the 
moderator and swear in the moderator. 
2. Appointing ballot clerks. The moderator shall appoint from the certified voting 
list the ballot clerks necessary for the efficient operation of the annual budget meeting. 
The moderator shall swear in the clerks. 
3. Budget consideration. The superintendent of the regional school unit shall 
thoroughly explain the bUdget. The voters must have an opportunity to be heard. The 
voters may change only items dealing with: 
A. The expenses necessary to operate the regional school unit; 
B. Appropriations for the reserve fund; and 
C. Appropriations for the contingency fund and school construction purposes. 
4. Approval. A majority vote of those voters present and voting is necessary for the 
approval of the annual budget 
5. Voting lists. Registration of voters for the annual budget meeting must be held in 
each member municipality in accordance with Title 21-A, section 122_ 
A. 
Prior to the annual budget meeting, the municipal clerks of the member 
municipalities shall supply to the regional school unit board certified corrected copies 
of the registered voters of their municipalities. 
B. The certified corrected copies under paragraph A must be used in determining the 
voters who are eligible to vote at the annual budget meeting. 
6. Written ballot. An article must be voted on by written ballot if at least 10% of 
those present and voting vote to use a written ballot. The department, in consultation 
with municipal and school officials and with organizations representing those officials, 
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shall develop and distribute guidelines to assist regional school unit annual budget 
meeting moderators in explaining and implementing this subsection. 
Sec. A-12. 20-A MRSA §1506, sub-§l, ~A, as enacted by PL 2007, c. 240, Pt. 
XXXX, § 13, is amended to read: 
A. "Existing debt" means any bond, note, loan agreement, lease-purchase agreement 
or other debt instrument issued prior to July 1,2008 1st of the first operational year of 
the new 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. 
Sec. A-13. 20-A MRSA §1506, sub-§4, as enacted by PL 2007, c. 240, Pt. 
XXXX, §13, is amended to read: 
4. Debt of original education units. After July 1, 2008, 1 st of the first operational 
year of the new unit 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 regional school unit board shall serve as agent for purposes of that 
existing debt and has full authority to: 
A. Sue and be sued in the name of the original education unit with respect to the 
existing debt; 
R Determine the debt service due each fiscal 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 with respect to 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 formula of the original 
education unit in effect on July 1, 2007, 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 regional school unit board of a new unit submits for approval. If the 
original education unit is divided between different new units that have not agreed to 
assume liability to pay the existing debt, the commissioner shall 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 the new unit shall notify the 
other new units containing members of the original education unit of the amounts they 
must assess and collect from their members who were members of the original education 
unit, and those other new units shall perform the functions in subsection 4, paragraphs C 
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and 0 with respect to their members, and shall pay the appropriate amounts over to the 
new unit serving as agent. 
Sec. A-14. 20-A MRSA §1512, sub-§6, as enacted by PL 2007, c. 240, Pt. 
XXXX, § 13, is amended to read: 
6. Multiple municipalities. If a school proposed for closure is an elementary ~ 
school that serves students from more than one municipality, the article set forth in 
subsection 1 must be submitted to the voters in each of the municipalities that sent all 
elementary students from that municipality to the school. If the article is approved by a 
majority of the voters in each of the municipalities, the school is not closed and the 
municipalities share in the costs under this section in the same proportion as they share 
the current operating costs of the school. 
Sec. A-15. 20-A MRSA §1701-C, as enacted by PL 2007, c. 240, Pt. XXXX, 
§ 16, is amended to read: 
§1701-C. Mandatory budget validation and-cost center summary budget form 
Notwithstanding any other law, community school district budgets developed after 
January 1, 2008 must conform to the format and referendum procedures for regional 
school units as set forth in sections 1701 1\ and 1701 B 1485 and 1486. A community 
school district is deemed to be a regional school unit solely for the purpose of developing 
a budget pursuant to sections 1485 and 1486. 
Sec. A-16. 20-A MRSA §2303, as amended by PL 1987, c. 737, Pt. C, §§52 and 
and PL 1989, c. 6; c. 9, §2; and c. 104, Pt. C, § §8 and 10, is further amended to read: 
§2303. Additional school committee members 
Notwithstanding section 2302, a municipality may vote at its annual meeting to have 
~ up to 7 members on the school committee. 
1. Vote. The municipality may vote to have a 5 member board expand its school 
committee at: 
A. 
Its annual meeting; or 
B. 
At-a A special town meeting held at least 30 days before the annual meeting, if a 
municipality has accepted Title 30-A, section 2528, relative to secret ballot. 
2. Election of additional members. The municipality may, at its annual meeting, 
elect by ballot;; additional school committee members to serve with the ~ members 
whose terms have not expired. 
Sec. A-17. 20-A MRS A §2307, as enacted by PL 2007, c. 240, Pt. XXXX, §21, is 
amended to read: 
§2307. School budgets 
Notwithstanding any other law, municipal school budgets developed after January 1, 
2008 must follow the same school budget requirements as regional school units pursuant 
to chapter 103-A, except as described in subsections 1 and 2. A municipal school unit is 
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deemed to be a regional school unit solely for the purpose of developing a budget 
pursuant to chapter 103-A. 
1. Budget meeting. In charter municipalities the budget meeting required by section 
1485, subsection 3 must be a meeting of the municipal council or other municipal 
legislative body established by the charter with authority to approve the budget. 
2. Municipal charter. In charter municipalities where the municipal charter confers 
upon a municipal council or other municipal legislative body the authority to determine 
the total amount of the school budget and confers upon the school committee or school 
board the authority to direct the expenditure of those funds for school purposes, the 
municipal councilor other municipal legislative body shall determine the total amount of 
the school budget to be submitted to a budget validation referendum and the school 
committee or school board shall determine the allocation of the approved school budget 
among the cost centers of the cost center summary budget format. 
Sec. A-IS. 20-A MRSA §5203, sub-§4, as enacted by PL 1981, c. 693, §§5 and 
8, is repealed and the following enacted in its place: 
4. Exception; no elementary school. A school administrative unit that neither 
maintains an elementary school nor contracts for elementary school privileges pursuant to 
chapter 115 shall pay the tuition, in accordance with chapter 219, at the public school or 
the approved private school ofthe parent's choice at which the student is accepted. 
Sec. A-19. 20-A MRSA §5204, sub-§4, as amended by PL 1985, c. 797, §32, is 
further amended to read: 
4. No secondary school. SesOI'ldary students whose parents reside in a A school 
administrative unit whieh that neither maintains a secondary school nor contracts for 
secondary school privileges may attend a private school approved for tl:lition pl:lFfJoses, a 
pl:lblic school in an adjoining l:Init v,'hich ascepts tl:lition stl:ldents, or a school approved for 
tHition pl:lFposes in another state or country Hpon permission of officials of the receiving 
school. The school administrative unit where the students' parents reside shall pay mition 
in the amount Hp to the legal tuition rate as defined in chapter 219 pursuant to chapter 115 
shall pay the tuition, in accordance with chapter 219, at the public school or the approved 
private school of the parent's choice at which the student is accepted. 
Sec. A-20. 20-A MRS A §6051, sub-§I, 'lfC, as enacted by PL 1985, c. 797, §36, 
is amended to read: 
C. 
A determination of whether or not the annual financial repert data submitted to 
the department is correct; 
Sec. A-21. 20-A MRSA §6051, sub-§4, as amended by PL 2005, c. 683, Pt. A, 
§25, is further amended to read: 
4. Initial report to commissioner. On or before December November 1 st, the 
school board shall provide the commissioner with: 
C. 
Written determination of whether or not proper budgetary controls are in place; 
D. 
A written determination of whether or not the annual financial repeFt data 
submitted to the department is correct, including submission of an audited 
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reconciliation of the annual financial repeft data prepared and certified by the auditor; 
and 
E. 
A written determination as to whether the school administrative unit has 
complied with applicable provisions of the Essential Programs and Services Funding 
Act. 
Sec. A-22. 20-A MRSA §6051, sub-§6, as enacted by PL 2001, c. 344, §9, is 
amended to read: 
6. Report to commissioner. Within 9 Q months after the end of the audit period, the 
school board shall provide the commissioner with: 
A. 
A copy of the audit report; 
B. 
Accountability of all revenues and expenditures; 
C. 
Written assurance that the audit has been conducted in accordance with 
applicable state and federal laws relating to financial and compliance audits; and 
D. 
Any other information that the commissioner may require. 
Sec. A-23. 20-A MRSA §15688, sub-§3-A, ~-1, as enacted by PL 2007, c. 
240, Pt. XXXX, §30, is repealed. 
Sec. A-24. 20-A MRS A §15688, sub-§3-A, ~C, as amended by PL 2007, c. 
240, Pt. XXXX, §30, is further amended to read: 
C. For a school administrative district, community school district or regional school 
unit composed of more than one municipality, the unit's contribution to the total cost 
of education is the lesser of: 
(I) The total cost as described in subsection I; and 
(2) The sum of the totals calculated for each member municipality pursuant to 
paragraph B, subparagraph (2), plus the total calculated pursuaflt to paragraph B 
I ifapplieable. 
Sec. A-25. 20-A MRS A §15689, sub-§l-B is enacted to read: 
I-B. Adjustments to state contributions to member municipalities in regional 
school units. The minimum state allocation provisions of subsection 1, paragraph Bare 
applicable for each case in which the school administrative units in existence prior to the 
operational date of the new regional school unit received an adjustment under subsection 
1, paragraph B for fiscal year 2007-08 or fiscal year 2008-09. For each regional school 
unit eligible under this subsection, the minimum state allocation provisions of subsection 
I, paragraph B are applicable for each member municipality that was a member of the 
eligible school administrative units in existence prior to the operational date of the new 
regional school unit. 
Sec. A-26. PL 2007, c. 240, Pt. XXXX, §36, sub-§6, ~A-l is enacted to read: 
A-I. Notwithstanding the requirements of paragraph A, the Commissioner of 
Education may authorize a unit to serve 1,200 or fewer students but not less than 
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1,000 students in an isolated rural community if the proposed regional school unit 
meets at least one of the following criteria: 
(1) The proposed regional school unit comprises 3 or more school administrative 
units in existence prior to July 1, 2008; 
(2) The member municipalities of the proposed regional school unit are 
surrounded by approved regional school units and there are no other school 
administrative units available to join the proposed regional school unit; or 
(3) The member municipalities of the proposed regional school unit include 2 or 
more isolated small schools that are eligible for an isolated small school 
adjustment pursuant to the Maine Revised Statutes, Title 20-A, section 15683, 
subsection l, paragraph F. 
In cases where the Commissioner of Education denies the creation of a regional 
school unit that serves 1,200 or fewer students but not less than 1,000 students, the 
school administrative units may appeal to the State Board ofEducatian. _ 
Sec. A-27. Delay of budget validation referendum process for fiscal year 
2008-09. Notwithstanding the Maine Revised Statutes, Title 20-A, sections 1305-C, 
1701-C and 2307 and the provisions of Title 20-A, section 1486, subsections 1 to 3, the 
use of the budget validation referendum in regional school unit budgets is delayed until 
the development of school budgets after January 1, 2009 for 2009-2010 school budgets. 
The municipal school unit's municipal officers or the governing body of a school 
administrative district or community school district shall determine whether the school 
administrative unit may use the budget validation referendum process for their 2008-2009 
school budgets. 
Sec. A-28. 
Retroactivity. Those sections of this Act that amend the Maine 
Revised Statutes, Title 20-A, sections 1305-C, 1701-C and 2307 apply retroactively to 
January 1,2008. 
PARTB 
Sec. B-l. PL 2007, c. 240, Pt. XXXX, §36, sub-§l1 is amended to read: 
11. Result of disapproval at January 2008 referendum. A school administrative 
unit that rejects a proposed reorganization plan at the January 15,2008 referendum or at a 
subsequent referendum on or before November 4, 2008 January 15, 2009 may restart the 
process to form a regional school unit with the same or other school administrative units 
and may seek assistance from the Department of Education to prepare another 
reorganization plan. 
A. 
Subsequent reorganization plans must meet the same requirements as for 
reorganization plans filed prior to the January 2008 referendum, except that the 
time lines are adjusted to reflect a July 1, 2009 reorganization date. 
B. 
The penalties set forth in Title 20-A, section 15696 apply to any school 
administrative unit that fails to approve a reorganization plan on or before November 
4,2008 January 15,2009 and to implement that plan by July 1,2009. 
Sec. B-2. PL 2007, c. 240, Pt. XXXX, §36, sub-§12 is amended to read: 
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12. Reformulation of SAD as RSU. Not later than Deoember 1,2008 February 15, 
2009, the Commissioner of Education shall notify any school administrative district that 
has not voted to form a regional school unit on or before November 4, 2008 January 15, 
2009 that the school administrative district must be recreated as a regional school unit 
under Title 20-A, chapter 103-A, effective July 1, 2009. 
Notwithstanding any other 
provision of law, a school administrative district may be changed to a regional school unit 
upon notice to the State Board of Education without dissolving the school administrative 
district. 
Sec. B-3. PL 2007, c. 240, Pt. XXXX, §42, first, is amended to read: 
Sec. XXXX-42. Transfer of property and assets; regional school units 
approved after January 15, 2008. This section applies to a regional school unit that 
is approved after January 15,2008 and before November 5,2008 January 16,2009. 
Sec. B-4. PL 2007, c. 240, Pt. XXXX, §43 is amended to read: 
Sec. XXXX-43. Operational date and transfer of authority. 
1. Operational date. A regional school unit board of directors becomes operational 
on the date set by the State Board of Education as provided in the Maine Revised 
Statutes, Title 20-A, chapter 103-A. 
2. Transfer of governing authority; regional school units approved prior to 
January 16, 2008. This subsection applies to regional school units approved prior to 
January 16,2008. The regional school unit board of directors, on the date established in 
subsection 1, shall assume responsibility for the management and control of the public 
schools and programs within the school administrative units in existence prior to July 1, 
2008 that are within the regional school unit. 
Those school administrative units in 
existence prior to July 1, 2008, on the date established in subsection 1, have no further 
responsibility for the operation or control of the public schools and programs within the 
school administrative unit except those pursuant to section 1481. 
3. 
Transfer of governing authority; regional school units approved after 
January 15, 2008. This subsection applies to regional school units approved after 
January 15, 2008 and before November 5, 2008 January 16, 2009. The regional school 
unit board of directors, on the date established in subsection 1, shall assume responsibility 
for the management and control of the public schools and programs within the school 
administrative units in existence prior to July 1, 2009 that are within the regional school 
unit. Those school administrative units in existence prior to July 1, 2009, on the date 
established in subsection 1, have no further responsibility for the operation or control of 
the public schools and programs within the school administrative unit except those 
pursuant to section 1481. 
4. Transfer of school accounts. Notwithstanding Title 20-A, section 15004 or any 
charter of a municipal school unit, school administrative district or community school 
district, the balance remaining in the school accounts of the former municipal school unit, 
school administrative district or community school district within the regional school unit 
must be paid to the treasurer of the regional school unit and verified through the annual 
audit process pursuant to Title 20-A, chapter 221, subchapter 2. The balance from each of 
the former municipal school unit, school administrative district or community school 
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district must be used to reduce that unit's or district's local contribution to the regional 
school unit. 
Payment may be made in equal monthly installments during the 
implementation year. 
5. Transfer 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 :No'vember 5, 2008 January 16, 2009, 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 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. It is the 
intent of this Part to neither decrease nor increase the rights and benefits of transferred 
employees or the employer. The regional school unit shall also 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. For regional school units approved prior to January 16, 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, 2008 may not be 
transferred. For regional school units approved after January 15, 2008 and before 
Noyember 5, 2008 January 16,2009, 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. Teachers and other employees who are transferred to the regional school unit 
prior to the completion of the applicable probationary period for their position have 
the length of their probationary period calculated from the date of their most recent 
date of employment by the participating school administrative unit. 
6. Collective bargaining. The following provisions apply: 
A. On July 1, 2008 for regional school units approved prior to January 16, 2008 and 
on July 1, 2009 for regional school units approved after January 15, 2008 and before 
Noyember 5, 2008 January 16,2009, 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 purposes under Title 26, chapter 9-A. 
The regional 
school unit is considered a single employer. Notwithstanding any other provision of 
law, the responsibilities ofthe 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 
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administrative unit, which agreements continue in effect for the remainder of 
their unexpired term unless the bargaining agent and regional school unit 
mutually agree otherwise; and 
(3) 
Collective 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 15,2008 and no later than August 31,2012 for regional 
school units approved after January 15, 2008 and before Novombor 2, 2QQ8 January 
16, 2009, 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 accordance with the procedures and criteria in this section. Merger into 
regional. sc.;hool 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 than the latest 
expiration date of any collective bargaining agreement that was in effect on the 
operational date, which 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 follows: 
(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 regional 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 I 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 selected by the existing bargaining agents and the state labor 
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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) Where 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 
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 subparagraph (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. 
(b) 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 trom 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 
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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. 
(f) 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 
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. 
(I) 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. 
7. Superintendent contracts. The contracts between the superintendents and school 
administrative units within the regional school unit are transferred to the regional school 
unit board of directors. The regional school unit board of directors shall determine the 
superintendents' duties within the regional school unit. 
PARTC 
Sec. C-l. 20-A MRSA §1, sub-§16-A is enacted to read: 
16-A. Local education unit. "Local education unit" means a state-approved unit of 
school governance responsible for operating or constructing public schools, but is not 
responsible for administration of public schools, that is a member of a regional school 
union. A local education unit is a school administrative unit for all purposes except the 
core functions identified in section 2001 and any additional functions delegated to the 
regional school union committee as authorized in section 2001. 
Sec. C-2. 20-A MRSA §1, sub-§24, as enacted by PL 1981, c. 693, §§5 and 8, is 
amended to read: 
24. Public school. "Public school" means a school that is governed by a school 
board of a school administrative unit or local education unit and funded primarily with 
public funds. 
Sec. C-3. 20-A MRS A §1, sub-§24-B, as enacted by PL 2007, c. 240, Pt. 
XXXX, §3, is amended to read: 
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24-B. Regional school unit. "Regional school unit" means tHe ~ state-approved unit 
of school administration as established pursuant to chapter 103-A. 
Sec. C-4. 20-A MRSA §1, sub-§24-D is enacted to read: 
24-D. Regional school union. "Regional school union" means a state-approved unit 
of school administration composed of local education units as established pursuant to 
chapter 108. 
Sec. C-S. 20-A MRSA §1, sub-§24-E is enacted to read: 
24-E. 
Regional school union committee. 
"Regional school union committee" 
means the governing body with statutory powers and duties for a regional school union. 
Sec. C-6. 20-A MRSA §1, sub-§26, as amended by PL 2007, c. 240, Pt. XXXX, 
§5, is further amended to read: 
26. 
School administrative unit. 
"School administrative unit" means the state-
approved unit of school administration and includes a municipal school unit, school 
administrative district, community school district, regional school unit. regional school 
union or any other municipal or quasi-municipal corporation responsible for operating or 
constructing public schools, except that it does not include a career and technical 
education region. Beginning July 1,2009, "school administrative unit" means the state-
approved unit of school administration and includes only a municipal school unit and, a 
regional school unit formed pursuant to chapter 103-A and a regional school union 
formed pursuant to chapter 108. 
Sec. C-7. 20-A MRSA §1, sub-§28, as enacted by PL 1981, c. 693, §§5 and 8, is 
amended to read: 
28. School board. "School board" means the governing body with statutory powers 
and duties for a school administrative unit or a local education unit. 
Sec. C-8. 20-A MRS A §1, sub-§29, as enacted by PL 1981, c. 693, §§5 and 8, is 
amended to read: 
29. 
School committee. 
"School committee" means the governing body with 
statutory powers and duties for a municipal school unit or a municipal local education 
unit. 
Sec. C-9. 20-A MRSA c. 108 is enacted to read: 
CHAPTER 108 
REGIONAL SCHOOL UNIONS 
SUBCHAPTER 1 
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GENERAL PROVISIONS 
§2001. Regional school union 
1. Formation. A regional school union composed of school administrative units 
may be formed pursuant to a reorganization plan. A municipal school unit, a school 
administrative district, a community school district or any other municipal or quasi-
municipal corporation responsible for operating or constructing public schools, except a 
career and technical education region, may be a local education unit within a regional 
school union. 
2. Laws governing local education units. Except as otherwise provided in this 
chapter, a local education unit that is part of a regional school union is subject to the laws 
set forth in this Title governing that local education unit, including but not limited to laws 
governing budget format and budget adoption procedures. 
3. Regional school union committee. The governin,g body of a regional school 
union is the regional school union committee, which must be made up of representatives 
from the school boards of member local education units and must be apportioned in 
accordance with one-person, one-vote principles. 
4. Core functions. The regional school union committee's core functions, which 
may not be delegated to a local education unit except as provided in this subsection, are: 
A. 
Employment and discharge of a superintendent pursuant to section 1001, 
subsection 3 and chapter 101, subchapter 2; 
B. 
Administration of accounting, payroll, financial management, purchasing 
insurance and auditing; 
C. Administration of special education duties of local education units under chapter 
303; 
D. Administration of transportation; 
E. Adoption of a core curriculum, standardized testing and assessment aligned with 
the system of learning results established in section 6209; 
F. Preparation of the regional school union budget; 
G. Reporting required by state or federal law, rule or regulation; 
H. Functioning as the employer of all employees perfonning the core functions and 
performance of any additional functions delegated to the regional school union; 
I. The establishment of a common school calendar, except that local education units 
may adopt local variations from the regional school union calendar; 
J. Adoption of common policies for all schools in the regional school union pursuant 
to section 1001, subsection I-A, except that the local education units may adopt local 
variations from the regional school union policies; and 
K. Apportionment of costs of the regional school union among its local education 
units in accordance with a cost-sharing formula established by its approved 
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reorganization plan and certification to the treasurer of each local education unit and 
to the commissioner ohhe amounts to be paid. 
5. Delegation of additional functions. 
A reorganization plan or the legislative 
bodies of the local education units in a regional school union may delegate functions in 
addition to those set out in subsection 4 to the regional school union committee. 
6. 
Title to property. A reorganization plan may provide that title to real and 
personal property in local education units may be either transferred to the regional school 
union or retained by the local education unit, as long as the plan clearly allocates the 
responsibilities for the management of school property under section 1001, subsection 2 
between the regional school union committee and the school board of the local education 
unit. 
§2002. Regional school union committee 
1. Formation. In accordance with an approved reorganization plan, the school 
boards of the local education units composing a regional school union shall form a 
regional school union committee. The school board of a local education unit in a regional 
school union shall designate one or more of its members to serve on the regional school 
union committee as provided in the reorganization plan. 
2. Term of office. The term of office of regional school union committee members 
must be determined by the approved reorganization plan. 
3. 
Compensation. Compensation for attendance at a regional school union 
committee meeting must be between $10 and $25 per meeting for each member. 
Whenever the committee members recommend increasing their compensation, they shall 
submit their recommendation to the voters in the regional school union for approval. 
A. On notification by the regional school union committee, the municipal officers 
shall, at the next regular or special town meeting or city election, prepare a warrant or 
ballot for the purpose of voting on the proposed increase. The question must be in the 
following form. 
"Do you favor paying a member of the regional school union committee 
compensation at the rate of $ ....... for each meeting that member attends?" 
S. An increase in compensation is not effective unless approved by a majority of the 
voters voting on the question set out in paragraph A. 
4. Secretary and treasurer. The superintendent serves as secretary and treasurer of 
the regional school union committee and shall give a bond to the regional school union 
committee of a sum and with the sureties as the regional school union determines. The 
bond must be deposited with the chair of the regional school union committee. The 
expense of that bond must be paid by the regional school union. The bond premium, 
compensation paid committee members for attendance at meetings and expenses of the 
regional school union must be paid from funds of the regional school union by the 
treasurer on vouchers presented and certified by the superintendent and approved by a 
majority of the regional school union committee or a finance committee duly elected 
annually by that committee. Notwithstanding section 1055, a superintendent of a regional 
school union may designate another person with State of Maine administrative 
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certification to perform the duties of secretary of the school board of a local education 
unit. 
5. Oath of office. Before a newly elected member's first regional school union 
committee meeting, that member must take the following oath or affirmation before a 
dedimus justice or notary public. 
"I ..................... do swear that I will faithfully discharge to the best of my abilities the 
duties incumbent on me as a regional school union committee member of (name of 
regional school union) according to the Constitution of Maine and laws of this State, so 
help me God. " 
A. A member shall take the oath or affirmation and return a certificate documenting 
that the oath or affirmation has been taken to the secretary of the regional school 
union committee to place in the regional school union committee records. 
B. 
If a member is conscientiously scrupulous of taking an oath, the word "affirm" 
may be used instead of "swear" and the words "this I do under the pains and penalty 
of perjury" may be used instead of the words "so help me God." 
6. Election of officers. The regional school union committee shall elect a chair and 
vice-chair and other officers as may be necessary. 
§2003. Methods of apportionment 
1. Method B: weighted votes. Under the method of representation referred to as 
"Method B," members cast weighted votes. 
A. 
The reapportionment committee under section 2024 shall apportion 1,000 votes 
among all the members of the committee. The ratio of the number of votes cast by the 
members representing a school administrative unit or municipality in relation to the 
number 1,000 must be the same ratio to the nearest whole number as the population 
of the school administrative unit or municipality is in relation to the population of all 
the school administrative units and municipalities in the regional school union, as 
determined by the latest Federal Decennial Census or Federal Estimated Census. 
B. 
To ensure the use of whole numbers, the 1,000 votes apportioned among the 
committee members may not be increased or decreased by more than 5 votes. 
C. 
A plan may not permit the voting power of any member to exceed by more than 
5% the percentage of voting power the member would have if all 1,000 votes were 
apportioned equally among the members. 
D. For a local education unit represented by 2 or more members, the votes cast by 
them must be divided equally among them. 
2. Method D: other. Under the method of representation referred to as "Method D," 
members are selected by any method other than that set forth in subsection 1 that meets 
the requirements of the one-person, one-vote principle. 
§2004. Appropriation for regional school union expenses 
Local education units shall appropriate for regional school union expenses their share 
of the costs of the regional school union in accordance with a cost-sharing formula 
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established by its approved reorganization plan. The proportion to be paid by a local 
education unit must be paid out of the appropriation made for the support or maintenance 
of public schools. 
§2005. Rules 
The state board may adopt rules to carry out this chapter. Rules adopted under this 
section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. 
SUBCHAPTER 2 
FORMATION OF REGIONAL SCHOOL UNION 
§2011. Formation of a regional school union; reorganization planning and approval 
The residents of 2 or more school administrative units may form a regional school 
union that is a body politic and corporate pursuant to this section. 
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1. Notice of intent. Each school administrative unit shall file with the commissioner 
a notice of intent to engage in planning and negotiations with other school administrative 
units for the purpose of developing a reorganization plan to form a regional school union 
under this chapter. The commissioner shall respond to each notice of intent providing 
information regarding the process and whether the intended action complies with the 
requirements of this chapter. 
2. Reorganization planning committee. The school administrative units that intend 
to engage in planning and negotiation to create a regional school union shall form a 
reorganization planning committee. 
A. 
For each proposed regional school union, the commissioner shall provide 
guidelines for the formation of a reorganization planning committee including 
representation from the school administrative units included in the notice of intent, 
member municipalities and members of the general public who are residents of the 
proposed regional 
school 
union. The guidelines must include roles 
and 
responsibilities ofthe committee, time lines for submission of the plan, the format for 
reporting the reorganization plan and evaluation criteria for approval of the plan. 
B. Reorganization planning committees shall hold one or more public meetings to 
gather input from community members and to determine the sentiment of the public. 
3. 
Submission of plans. 
Each school administrative unit shall submit to the 
commissioner its proposed reorganization plan for consolidation into a regional school 
union that meets the requirements of paragraphs A and B. 
A. A reorganization plan must include: 
(1) The local education units to be included in the proposed reorganized regional 
school union; 
(2) The size, composition and apportionment of the governing body; 
(3) The method of voting of the governing body; 
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(4) The powers and duties of the regional school union; 
(5) The disposition of real and personal school property; 
(6) 
The disposition of existing school indebtedness and lease-purchase 
obligations; 
(7) The assignment of school personnel contracts, school collective bargaining 
agreements and other school contractual obligations; 
(8) The disposition of existing school funds and existing financial obligations, 
including undesignated fund balances, trust funds, reserve funds and other funds 
appropriated for school purposes; 
(9) A transition plan that addresses the development of a budget for the first 
school year of the regional school union and interim personnel policies; 
(10) Documentation of the public meeting or public meetings held to prepare or 
review the reorganization plan; 
(11) An explanation of how units that approve the reorganization plan will 
proceed if one or more of the proposed members of the regional school union fail 
to approve the plan; 
(12) An estimate of the cost savings to be achieved by the formation of a 
regional school union and how these savings will be achieved; 
(13) A method of sharing regional school union costs among its member local 
education units and a process of amending the cost-sharing formula; and 
(14) Such other matters as the governing bodies of the school administrative 
units in existence on the effective date of this chapter may determine to be 
necessary. 
B. In order for the plan to be approved by the commissioner, the governing bodies of 
school administrative units must work within the parameters set out in this paragraph. 
(1) 
The proposed regional school union must serve not fewer than 2,500 
students, except when circumstances relating to the following factors justifY an 
exception: 
Ca) 
Geography, including physical proximity and the size of the current 
school administrative units; 
Cb) Demographics, including student enrollment trends and the composition 
and nature of communities in the regional school union; 
Cc) Economics, including existing collaborations to be preserved or enhanced 
and opportunities to deliver commodities and services to be maximized; 
Cd) Transportation; 
Ce) Population density; or 
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CD Other unique circumstances including the need to preserve existing or 
developing relationships, meet the needs of students, maximize educational 
opportunities for students and ensure equitable access to rigorous programs 
for all students. 
(2) When circumstances justify an exception to the size requirement of 2,500 
students set forth in subparagraph (1), the regional school union must serve as 
close to 2,500 students as possible and, except for coastal islands and schools 
operated by tribal school committees, it may not serve fewer than 1,200 students, 
except that, the commissioner may authorize a regional school union to serve 
fewer than 1,200 students but not less than 1,000 students in isolated rural 
communities if the proposed regional school union meets one of the following 
criteria: 
(a) 
The proposed regional school union comprises 3 or more school 
administrative units in existence prior to July 1, 2008; 
(b) The member local education units of the proposed regional school union 
are surrounded by approved regional school units and there are no other 
school administrative units available to join the proposed regional school 
union; or 
(c) The member local education units of the proposed regional school union 
include 2 or more isolated small schools that are eligible for an isolated small 
school adjustment pursuant to section 15683, subsection 1, paragraph F.ln 
cases in which the commissioner denies the creation of a regional school 
union that has fewer than 1,200 but more than 1,000 students, the school 
administrative units may appeal to the state board. 
(3) 
The plan must provide for a core curriculum for all students from 
kindergarten to grade 12 and must include at least one publicly supported 
secondary school. 
(4) The plan must include provisions for implementing section 2002. 
(5) The plan may not displace teachers or students or close any schools existing 
and operating during the school year immediately preceding reorganization. 
4. 
Review and approval of plans. If the commissioner finds that a plan for 
reorganization meets the requirements of this chapter, the commissioner shall notify the 
municipalities and school administrative units, and they shall proceed with referendum as 
set out in subsections 5 and 6. 
5. 
Referendum on reorganization plan. 
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 to reorganize (insert names of 
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affected school administrative units) into a regional school union, with an effective 
date of (insert date )7 
Yes No" 
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 union, which will be provided with the 
following incentives: 
More favorable consideration in approval and funding of school construction 
projects; and 
Eligibility for additional financial support for reorganization costs. 
A "NO" vote means that you do not approve of the (municipality or school 
administrative unit) jpilling a regional school union, which will result in the existing 
(municipality or school administrative unit) receiving the following penalties: 
Less favorable consideration in approval and funding of school construction projects; 
and 
A reduction in state funding of education costs in an amount estimated to be 
$ ............. for school year 20 .... and $ ............. for school year 20 .... , with ongoing 
penalties for continued failure to join an approved regional school union. Reductions 
in state education funding will result in an increased mill rate expectation to meet the 
local share of education costs. " 
6. Results of referendum. Each school administrative unit shall report the results of 
the referendum to the department following the referendum election. 
A. 
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. 
B. 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 union. 
C. A municipal school unit, including a municipal school unit that is a member of a 
school union, approves a reorganization plan if the majority of the votes cast in that 
municipality is in favor of approval ofthe plan. 
If a reorganization plan is approved by all of the affected school administrative units, or 
by the school administrative units considered sufficient under the proposed reorganization 
plan, the commissioner shall file notice of approval of the regional school union with the 
state board. 
7. Certificate of organization. If a plan or revised plan for reorganization has been 
approved by the commissioner and approved by voters at the referendum, the state board 
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shall issue a certificate of organization to the school administrative units that are 
reorganized into a regional school union. 
§2012. Transitional powers and duties ofthe regional school union committee 
Within 30 days of the issuance of a certificate of organization for the regional school 
union by the state board, the school boards of the local education units shall appoint 
members of the regional school union committee in accordance with the approved 
reorganization plan. 
As used in this section, unless the context otherwise indicates, 
"regional school union committee" means the initial regional school union committee 
appointed pursuant to section 2002. From the time of appointment of the regional school 
union committee to July 1st of the regional school union's first operational year, the 
regional school union committee shall establish interim rules of procedure and shall elect 
officers who shall serve until officers are elected at a meeting following the operational 
date of the regional school union. The regional school union committee's powers and 
duties during this period are governed by this section. 
1. Selection of superintendent. The regional school union committee shall select a 
superintendent for the regional school union in accordance with section 1051 to carry out 
the duties specified in section 1055. During the interim period, the salary, office and 
other expenses of the superintendent, as well as the costs of the regional school union 
committee, including insurance, must be allocated to the local education units by the cost-
sharing formula included in the reorganization plan for the regional school union. 
2. Budget preparation and approval. The regional school union committee shall 
prepare the annual budget for the first operational year of the regional school union in 
accordance with section 2001. Specific duties may be assigned to existing personnel with 
the approval of the employing school administrative unit. The regional school union 
committee shall complete the budget development process and approve a regional school 
union budget. The budget format and assessments for the regional school union's first 
operational year budget must be in accordance with this chapter. 
3. Authorization. The regional school union committee is authorized to take all 
other actions provided under state law to prepare the regional school union to become 
operational on July 1 st for the first operational year, including the authority to open and 
maintain accounts, to incur expenses to be allocated among the regional school union's 
member local education units in accordance with the reorganization plan for the regional 
school union and to file applications for school construction projects and revolving 
renovation fund loans and other available funding. 
4. Fiscal agent. The regional school union committee is authorized to expend start-
up funds for the regional school union. A local education unit within the regional school 
union may serve as a fiscal agent and may expend any start-up funds on behalf of the new 
regional school union prior to the regional school union's operational date without calling 
for a special meeting of the local legislative body. 
§2013. Transfer of property and assets 
Upon the formation of a regional school union pursuant to this subchapter, the 
transfer of school property and assets is governed by this section. 
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1. 
Regional school union committee. 
Except as otherwise provided in a 
reorganization plan, a regional school union committee established in this chapter shall 
determine what school property of the municipal school units in existence prior to the 
operational date of the new regional school union and of the school administrative units 
in existence prior to the operational date of the new regional school union is necessary to 
carry out the functions of the regional school union and shall request in writing that the 
school board of each such school administrative unit or the municipal officers transfer 
title of their school property and buildings to the regional school union committee. 
2. 
Transfer. 
The municipal officers and school 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. 
§2014. Operational date and transfer of authority 
1. Operational date. A regional school union committee becomes operational on 
the date set by the state board as provided in this--coopter. 
2. Transfer of governing authority. The regional school union committee, on the 
date established pursuant to subsection 1, shall assume responsibility for the governance 
of the regional school union. 
3. Transfer employees. Except as limited by paragraph A, all school employees 
who are employed by a school administrative unit that becomes a local education unit 
within the regional school union and employees of a school administrative unit 
performing the core functions and any delegated functions of a regional school union as 
identified in the reorganization plan on the day prior to the date established pursuant to 
subsection 1 must be transferred to and employed by the regional school union as of the 
date established pursuant to subsection 1. 
Those employees not transferred to the 
regional school union continue to be employed by the local education units under the 
same terms and conditions under which they were employed prior to the operational date. 
The regional school union shall assume all of the legal obligations and duties that the 
participating school administrative units owed to the transferred 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, the employees employed by the local education units or the employer. 
A. 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. Teachers and other employees who are transferred to the regional school union 
prior to the completion of the applicable probationary period for their position have 
the length of their probationary period calculated from the date of their most recent 
date of employment by the participating school administrative unit. 
4. Superintendent contracts. The contracts between the superintendents and any 
school union whose members become local education units within the regional school 
union and school administrative units that become local education units within the 
regional school union are transferred on the date established pursuant to subsection I to 
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the regional school union committee. The regional school union committee shall 
determine the superintendents' duties within the regional school unit. 
§2015. Addition of a school administrative unit to an existing regional school union 
A school administrative unit not originally a member of a regional school union may 
be included in the regional school union 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 
union under this chapter. The commissioner shall respond to each notice of intent and 
provide information regarding the process and whether the intended action complies with 
the requirements ofthis chapter. 
2. Process to join a regional school union. A school administrative unit may join 
an existing regional school union in the same manner required for the formation of a 
regional school union under section 2011, except that section 2011, subsections 5, 6 and 7 
do not apply. 
3. Referendum for a school administrative unit to join an existing regional 
school union. The municipal officers of each municipality in a proposed reorganized 
school administrative union 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 union 
(insert name of regional school union), with an effective date of (insert date)? 
Yes No" 
The following statement must accompany the article: 
"Explanation: 
A "YES" vote means that you approve of the (insert name of municipality or school 
administrative unit) joining the proposed regional school union. The financial 
penalties under the Maine Revised Statutes, Title 20-A, section 15696 to the existing 
school administrative unit will no longer apply. " 
4. Referendum on the admission of an additional school administrative unit to 
an existing regional school union. 
If the vote to join a regional school union under 
subsection 3 was in the affirmative, the existing regional school union shall call a 
regional school union 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 union 
(insert name of regional school union), with an effective date of(insert date)? 
Yes No" 
The following statement must accompany the article: 
"Explanation: 
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A "YES" vote means that you approve of the (insert name of municipality or school 
administrative unit) joining the proposed regional school union. The financial 
penalties under the Maine Revised Statutes, Title 20-A, section 15696 will no longer 
apply to the existing school administrative unit." 
The referendum must be conducted in accordance with the referendum procedures 
applicable to regional school units, except that the duties of the regional school unit board 
must be performed by the regional school union committee. 
5. 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 union if the majority 
of votes cast in the regional school union is in favor of approval ofthe 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 union; and 
(4) A municipal school unit, including a municipal school unit that is a member 
of a school 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 plan is 
approved by a regional school union if the majority of votes cast in the regional 
school union is in favor of approval of the plan. 
If a reorganization plan is approved by the affected school administrative unit, the 
commissioner shall file notice of approval with the state board. 
6. Amended certificate of organization. If a plan for reorganization has been 
approved by the commissioner and approved by voters at the referendum under 
subsections 3 and 4, the state board shall issue an amended certificate of organization to 
the reorganized regional school union. 
SUBCHAPTER 3 
REGIONAL SCHOOL UNION GOVERNANCE 
§2021. Powers and duties 
The regional school union committee: 
1. Regional school union name. May select an unofficial name for the regional 
school union; 
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2. Finance committee. May elect a finance committee of 3 or more members, who 
must be regional school union committee members; 
3. Bylaws. Shall adopt bylaws for the regulation of the affairs of the regional school 
union committee and the conduct of its business; and 
4. Gifts. May accept and receive money or other property, outright or in trust, for 
any specified benevolent or educational purpose. The regional school union committee 
shall comply with this subsection in accepting gifts. 
A. If the regional school union committee receives written notice from a prospective 
donor or a representative of the donor of a proposed gift, the regional school union 
committee shall submit the matter to its next regular meeting or shall call a special 
meeting and shall, within 10 days after the meeting, send written notice to the 
prospective donor or representative of its acceptance or rejection. 
B. If the gift is in trust, the regional school union committee shall cause the trust 
funds to be deposited or invested according to Title 3D-A, chapter 223, subchapter 3-
A. 
(1) Unless prohibited by a trust instrument, the regional school union may treat 
any 2 or more trust funds as a single fund for the purposes of investment. 
(2) After deduction for management expenses, any interest earned or capital 
gains realized must be prorated among the various trust funds. 
(3) Property or securities included in the corpus of a trust fund must be retained 
where the trust instrument so provides. 
(4) Unless otherwise specified in the trust instrument, only the annual income 
from the trust fund may be spent. 
(5) If the regional school union fails to comply with the tenus of the trust 
instrument, the trust fund is subject to reversion to the donor or the donor's heirs. 
C. If the money or other property is a conditional gift for any specified benevolent or 
educational purpose, this paragraph applies. 
(1) When the donor's part of the agreement respecting the execution of the 
conditional gift has been completed, the regional school union shall perpetually 
comply with, and may raise money to carry into effect, the conditions upon 
which it was made. 
(2) Unless otherwise specified by its terms, a conditional gift of money must be 
deposited or invested according to Title 30-A, chapter 223, subchapter 3-A. 
§2022. Quorum 
A majority of the regional school union committee in number and voting power 
constitutes a quorum. 
§2023. Regional school union committee vacancies 
1. Definition of vacancy. A vacancy on a regional school union committee occurs: 
HOUSE AMENDMENT 
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A. When the term of office of a regional school union committee member expires; 
B. When a regional school union committee member changes residency from the 
local education unit represented. Evidence that an individual is registered to vote in a 
municipality in a local education unit is prima facie evidence of that individual's 
residency; 
C. On the death of a regional school union committee member; or 
D. 
When a regional school union committee member resigns from the regional 
school union committee or from the school board of the local education unit the 
member represents. 
In addition to paragraphs A, B, C and D, except in municipalities having a municipal 
II 
charter, when a committee member is absent without excuse from 3 consecutive regular 
committee meetings, the regional school union committee may declare that a vacancy 
exists. 
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2. Regional school union committee. The regional school union committee shall 
notify the school board of the local education unit of a vacancy within 14 days after 
receiving notice of the vacancy. 
3. Filling vacancies. A vacancy on a regional school union committee must be filled 
by the school board whose member vacated the regional school union committee seat 
within 30 days afterreceiving notice of the vacancy. 
§2024. Reapportionment 
The commissioner shall determine the necessity for reapportionment. 
1. Duties of commissioner. The commissioner shall determine if a regional school 
union is apportioned in accordance with the one-person, one-vote principle if: 
A. The commissioner receives a request by the regional school union committee; or 
B. The commissioner receives a petition signed by a number of regional school 
union voters equal to at least 10% of the voters in the regional school union who 
voted in the last gubernatorial election. 
In addition to a determination initiated by a request pursuant to paragraph A or a petition 
pursuant to paragraph B, the commissioner may, of the commissioner's own accord, 
determine that a regional school union is not apportioned according to the one-person, 
one-vote principle. 
The commissioner shall make a determination under paragraph A or B within 30 days of 
receiving the request or the petition. 
2. Awaiting census results. If the commiSSIOner receives a request within 12 
months before a Federal Decennial Census or Federal Estimated Census, the 
commissioner may wait until after the new census figures are available to make a 
determination under subsection 1. 
3. 
Findings and order. 
If the commissioner finds the regional school union 
representation is not apportioned in accordance with the one-person, one-vote principle, 
the commissioner, within 7 days of that decision, shall notify the superintendent of the 
HOUSE AMENDMENT 
HOUSE AMENDMENT '(1<' to H.P. 1675, L.D. 2314 
regional school union of the finding and order the superintendent to notify the school 
board in each local education unit in the regional school union and the regional school 
union committee to create a reapportionment committee. The superintendent's notification 
must include the commissioner's notification, the information provided pursuant to 
subsection 6 and the time and place for the first meeting ofthe committee, which must be 
held not later than 20 days after the notification. 
4. Reapportionment committee membership. The reapportionment committee 
consists of2 members from each school board, chosen by the respective school boards. 
5. Quorum. A majority of the reapportionment committee constitutes a quorum. 
6. Duties of commissioner. The commissioner shall provide the superintendent of 
the regional school union with the most recent Federal Decennial Census or Federal 
Estimated Census figures for each local education unit in the regional school union and at 
least one recommended apportionment plan. 
7. Duties of the reapportionment committee. The reapportionment committee 
shall: 
A. Elect a chair and secretary and may adopt suitable rules of procedure; 
B. Consider and by majority vote adopt a reapportionment plan including the method 
of representation, total number of members and number of members representing 
each local education unit; and 
C. Within 90 days of the first meeting, send a report of its reapportionment plan to 
the state board for approval. It may, within the 90-day limit, submit alternative plans 
for apportionment. 
8. Commissioner approval. The commissioner shall approve or disapprove the 
reapportionment committee plan under subsection 7 within 30 days of receiving it. 
9. Failure to gain commissioner approval. If a reapportionment plan has not been 
adopted by the reapportionment committee or approved by the commissioner within the 
time limits of subsection 7, the commissioner shall prepare a suitable plan. 
10. Putting the approved plan into effect. On approval of a reapportionment plan, 
the commissioner shall send a certified copy to the local education units and regional 
school union committee. The original reapportionment plan must be retained in the 
department files. 
A. 
The reapportionment plan takes effect immediately upon approval. The 
reapportionment committee shall determine the terms of the members to be elected at 
the next annual municipal elections so as to comply with this chapter. 
B. 
If the approved reapportionment plan requires a reduction of the number of 
members to be elected in a municipality, the reduction must be achieved in 
accordance with this paragraph. 
(1) If possible, the reduction must be achieved by the voluntary resignation of 
one or more of the members. 
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(2) If the reduction cannot be achieved in accordance with subparagraph (1), all 
of the remaining existing members representing the local education unit shall 
choose by lot which members' terms must terminate. 
C. If the approved reapportionment plan requires that additional members be elected 
in a local education unit, the local school committee shall fill the vacancies by 
appointment. A new member serves until a successor is elected and qualified at the 
next annual municipal election. 
D. The reapportionment committee is dissolved after the approved reapportionment 
plan is implemented. 
11. Duties of present members during reapportionment. The regional school 
union committee, during the reapportionment of its membership, serves as the legal 
representative of the regional school union until the reapportionment is completed. The 
committee shall carry out all business of the regional school union, including the 
borrowing of fundi-that may be required during the period of reapportionment. 
12. State board review of commissioner's decisions. A regional school union 
committee or interested parties may request that the state board reconsider decisions 
made by the commissioner under this section. The state board has the authority to 
overturn a decision made by the commissioner. In exercising this power, the state board is 
limited by this section. 
SUBCHAPTER 4 
CONTRACTS 
§2031. Bid procedure 
1. Written bids. Bids must be in writing, sealed with the outside envelope or 
wrapper plainly marked "Bid, not to be opened until (appropriate date)" and mailed to or 
filed with the superintendent. 
2. Time of opening. A member of the regional school union committee or an 
employee ofthe regional school union may not open a bid until the appointed time. 
3. Public opening. At the time and place stated in the public notice, and open to the 
public, all bids must be opened by the superintendent or, in the superintendent's absence 
or disability, by any member of the regional school union committee designated for the 
purpose by the chair of the regional school union committee. 
4. Reading. If any citizens who are not members of the regional school union 
committee or employees of the regional school union are present or if any representatives 
of the press are present, bids must at the time of opening either be made available for 
examination by them or must be read aloud in a manner to be heard plainly by those in 
attendance. 
§2032. Void contracts 
A contract made by the regional school union committee during the term of a 
member who is pecuniarily interested in that contract, either directly or indirectly, is void, 
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unless the regional school union committee has advertised for sealed bids for that contract 
and that advertisement for sealed bids has been published at least 5 days prior to the date 
set for closing of bids in a newspaper having general circulation within the regional 
school union. 
Sec. C-IO. Reorganization planning. A regional school union, as established in 
the Maine Revised Statutes, Title 20-A, chapter 108, is deemed a regional school unit 
under Public Law 2007, chapter 240, Part XXXX, section 36 for all purposes including 
the goal for the number of regional units and the requirements with respect to the number 
of students in each regional unit. The Commissioner of Education shall apply the same 
criteria and shall allow the same exceptions for regional school unions as are applied to 
regional school units. A reorganization plan for a regional school union is also subject to 
the requirements of Public Law 2007, chapter 240, Part XXXX, section 36, subsection 6, 
paragraph F that the reorganization plan address how administrative functions, duties and 
noninstructional personnel will be reorganized so that the projected expenditures for 
system administration, transportation, special education and facilities and maintenance 
will not have an adverse impact on the instructional program. A reorganization plan for a 
regional school union is subject to the same approval and referendum requirements as 
provided in Public Law 2007, chapter 240, Part XXXX, section 36, subsections 8 and 9. 
Sec. C-ll. Application. Notwithstanding any provision of law to the contrary, 
this Part applies to school administrative units and reorganization planning committees 
that, on the effective date of this Part, are engaged in or are required to be engaged in 
school reorganization planning pursuant to Public Law 2007, chapter 240, Part XXXX. 
PARTD 
Sec. D-l. Transitional school unions. Notwithstanding any law to the contrary, 
or more school administrative units may reorganize as a transitional school union that is 
a body politic and corporate in accordance with this Part. A municipal school unit, a 
school administrative district, a community school district or any other municipal or 
quasi-municipal corporation responsible for operating or constructing public schools, 
except a career and technical education region, may be a local education unit within a 
transitional school union. For purposes of the reorganization planning, formation and 
governance, transitional school units are deemed to be regional school unions formed 
pursuant to the Maine Revised Statutes, Title 20-A, chapter 108, are subject to the 
requirements of Title 20-A, chapter 108 for all purposes and enjoy the same rights, 
privileges, duties and obligations as regional school unions except as provided in this 
Part. 
1. Examination of transitional school unit efficiencies. No later than December 1, 
2010, and before the vote required pursuant to subsection 2, each transitional school 
union formed pursuant to this Part shall examine the efficiencies gained by formation as a 
transitional school union and make its findings available to the public for comment. 
2. Vote. By January 15, 2011, the municipal officers of each municipality in a 
transitional school union shall place a warrant article substantially as follows on the ballot 
of a municipal referendum in accordance with the referendum procedures applicable to 
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HOUSE AMENDMENT" ff; to H.P. 1675, L.D. 23]4 
the school administrative unit of which the municipality was a member prior to formation 
as a transitional school union. 
"Article: Do you favor maintaining the current organization of the school 
district by becoming a regional school union? 
Yes No" 
The following statement must accompany the article: 
"Explanation: 
A "YES" vote means that you approve of the current structure of the 
school union to which the (municipality or school administrative unit) is 
a member and want to change from a transitional school union to a 
regional school union to continue to avoid the financial penalties under 
the Maine Revised Statutes, Title 20-A, section 15696. 
A "NO" vote means that you do not approve of the (municipality or 
school administrative unit) becoming a regional school union but instead 
want to change from a transitional school union to a regional school 
unit." 
3. Results of referendum. Each school administrative unit shall report the results of 
the referendum under subsection 2 to the Department of Education following the 
referendum election. 
A. 
If the majority of votes cast in the transitional school union is in favor of 
becoming a regional school union, the transitional school union becomes a regional 
school union, subject to all the requirements specified in the Maine Revised Statutes, 
Title 20-A, chapter 108. 
B. If the majority of votes cast in the transitional school union is not in favor of 
becoming a regional school union, the transitional school union becomes a regional 
school unit, subject to the requirements of the Maine Revised Statutes, Title 20-A, 
chapter 103-A. 
The Commissioner of Education shall file notice of the results of the referendum with the 
State Board of Education. 
4. Repeal. This Part is repealed January 16,2011.' 
SUMMARY 
This amendment affects school reorganization in the following ways. 
Part A does the following. 
1. It delays the implementation of the budget validation referendum process for 
school administrative districts, community school districts and municipal school units 
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until fiscal year 2009-10 to coincide with the fonnation of the 2009-2010 school budgets 
for new regional school units that are organized pursuant to Public Law 2007, chapter 
240, Part XXXX. The amendment also allows school administrative districts, community 
school districts and municipal school units the option of using the budget validation 
referendum process for the fonnation of2008-2009 school budgets. 
2. It clarifies the authorization provided to regional planning committees to negotiate 
a cost-sharing agreement for those costs of a proposed regional school unit that are in 
addition to the local contribution required pursuant to the Maine Revised Statutes, Title 
20-A, section 15690. 
3. It repeals a cross-reference to the unit of law that is repealed in the bill regarding 
the requirement that each municipality that is a member of a new regional school unit 
contribute a minimum of 2 mills of the municipality's property fiscal capacity to the total 
cost of education 'ofthe new regional school unit. 
4. It includes language inadvertently left out of the bill regarding the requirement that 
the reorganization plan include a process for amending the cost-sharing fonnula. 
5. It clarifies the roles of the municipal officers and the school committee for 
municipal school units whose municipal charters give authority to approve the school 
budget to the municipal officers and establishes the requirements for calling a budget 
meeting and the procedures for the budget meeting. 
6. It clarifies the relationship between a regional school unit board and a local school 
that seeks to raise additional funds for an elementary school or a secondary school that is 
owned or managed by the member municipality. The amendment also removes 2 
references to "elementary" schools in the school closure provisions to clarify that 
secondary schools are also subject to these requirements. 
7. It pennits the Commissioner of Education to authorize so-called "doughnut hole" 
school units that have 1,200 or fewer students and no other available reorganization 
partners to fonn a regional school unit that serves at least 1,000 students if these isolated, 
rural school units meet certain criteria. 
8. It clarifies the assumption of existing debt that is transferred from an original 
education unit to a new regional school unit that is fonned after July 1, 2008. 
9. It provides regional school unit boards with the legal authority to receive and spend 
state and local funds, including funds for the election of regional school unit board 
members and to hire a superintendent prior to the operational date of the new regional 
school unit on July 1,2009. 
Part B of this amendment changes the deadline by which a referendum must be held 
to January 15, 2009 and changes dates that are linked to the referendum date by the same 
amount of time. 
Part C of this amendment authorizes regional school unions as an alternative to the 
regional school unit method of school reorganization. A regional school union must 
perfonn certain core functions, which include employment of a superintendent, 
perfonnance of all business functions, special education administration, transportation 
administration, adoption of a core curriculum and all state and federal reporting. A 
regional school union is fonned in the same manner as a regional school unit by means of 
HOUSE AMENDMENT 
I3 
HOUSE AMENDMENT .. f1< to H.P. 1675, L.D. 2314 
a reorganization plan prepared by a reorganization planning committee, with approval of 
the Commissioner of Education and approval at a referendum. Regional school unions are 
subject to the same requirements as regional school units with respect to minimum 
numbers of students, exceptions to minimum numbers of students, timelines for 
submission of reorganization plans, operational date and applicable penalties. School 
administrative units that form a regional school union become "local educational units" 
with no further responsibility for the administrative functions, which are taken over by 
the regional school union. 
Part D of this amendment authorizes the formation of transitional school unions using 
the same procedures for formation and governance as regional school unions. 
Each 
transitional school union is required to examine and report on the efficiencies created by 
the formation of the transitional school union and to make that report public no later than 
December 1,2010. By January 15,2011, each transitional school unit is required to vote 
on whether to become a regional school union or to change to a regional school unit. 
SPONSORED BY: ---l.~----t~~~+L-~~"::"':"::'----:'---
(Representative MAC / 
-_/ 
TOWN: Boothbay 
HOUSE AMENDMENT 
Fiscal Detail and Notes 
Approved: 04110/08 
~ac:. 
LD 2314 
LR 3647(02) 
An Act To Amend School Funding Laws 
Fiscal Note for House Amendment "fr" 
Sponsor: Rep. MacDonald of Boothb~y 
Fiscal Note Required: Yes 
Fiscal Note 
Potential future biennium cost increase - General Fund 
Providing school administrative units with the option of forming a regional school union that allows for the dispersion 
of decision making authority to local education units within the regional school union except for certain core functions 
may increase the total cost of K-12 public education in future biennia due to less savings being achieved versus what 
was anticipated in Public Law 2007, chapter 240, Part XXXX. The amount can not be determined at this time and 
will depend on the number of regional school unions established and the ability of regional school unions and local 
education units within the regional school union to implement efficiencies. Two areas which could impact future 
General Fund costs include special education and transportation. 
Title 20-A, §15681-A, sub-§2(D) requires that school administrative units receive sufficient funds for special 
education to ensure that the SAUs meet the federal maintenance of effort requirement for receiving federal Individuals 
with Disabilities Act funds. The maintenance of effort requirement states that the total amount of state and local funds 
budgeted by the local education agency for expenditures in a current fiscal year for the education of children with 
disabilities must be at least equal to the total amount of state and local school funds actually expended for the 
education of children with disabilities in the most recent preceding fiscal year. Less savings being achieved versus 
what was anticipated in Public Law 2007, chapter 240, Part XXXX may require a higher level of state and local 
funding in order to fulfill the maintenance of effort requirement. 
Title 20-A, § 15681-A, sub-§3 requires that school admin istrative units receive no less than 90% of the most recent 
year's reported net transportation expenditures. Less savings being achieved versus what was anticipated in Public 
Law 2007, chapter 240, Part XXX X may require a higher level of funding in order to meet the statutory requirement. 
Although this legislation will not impact the total state and local cost of funding K-12 public education, beginning in 
fiscal year 2008-09 it may affect the distribution of subsidy to local school administrative units with some units 
receiving more subsidy and some units receiving less subsidy. The impact to individual school administrative units 
can not be determined at this time. 
LR3647(02) - Fiscal Note - Page 1 of2 
Allowing for a one year delay in the implementation of tile cost center summary budget approval and validation 
process may result in savings to school administrative districts, community school districts and municipal school units. 
The amount can not be determined at this time. 
LR3647(02) - Fiscal Note - Page 2 of2