An Act To Allow an Alternative Organizational Structure To Act as a Fiscal Agent for Each Member or Municipality in That Alternative Organizational Structure
Maine Legislature, Session 124, LD 0158
Committee: Education and Cultural Affairs
Sponsors: SCHATZ, DAMON, CLEARY, EATON, GIFFORD, JOHNSON
Amends: 20-A MRSA §1461

MAINE STATE LEGISLATURE 
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124th MAl E LEGISLATURE 
FIRST REGULAR SESSIOt~-2009 
Legislative Document 
No. 158 
H.P, 137 
House of Representatives, January 20,2009 
An Act To Allow an Alternative Organizational Structure To Act as 
a Fiscal Agent for Each Member or Municipality in That 
Alternative Organizational Structure 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
plinted. 
Presented by Representative SCHATZ of Blue Hill. 
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111· 77!tJ£~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Senator DAMON of Hancock and Representatives: CLEARY of Houlton, 
EATON of Sullivan, GIFFORD of Lincoln, JOHNSON of Greenville. 
Printed on n.!t.:ydt:d pnpL'r 
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Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 20-A MRSA §1461, sub-§3, ,A, as enacted by PL 2007, c. 240, Pt. 
XXXX, § 13, is amended to read: 
A. A reorganization plan must include: 
(I) The units of school administration to be included in the proposed reorganized 
regional school unit; 
(2) The size, composition and apportionment of the governing body; 
(3) The method of voting of the governing body; 
(4) The composition, powers and duties of any local school committees to be 
created; 
(5) The disposition of real and personal school property; 
(6) 
The disposition of existing school indebtedness and lease-purchase 
obligations if the parties elect not to use the provisions of section 1506 regarding 
the disposition of debt 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; 
(8-A) For a reorganization plan to form an alternative organizational structure, a 
designated fiscal agent or agents for each of the member entities and 
municipalities of the alternative organizational structure. The plan may designate 
the alternative organizational structure as the fiscal agent for its member entities 
and municipalities; 
(9) A transition plan that addresses the development .of a budget for the first 
school year of the reorganized unit and interim personnel policies; 
(10) Documentation of the public meeting or public meetings held to prepare or 
review the reorganization plan; 
(II) An explanation of how units that approve the reorganization plan will 
proceed if one or more of the proposed members of the regional school unit fail 
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to approve the plan; 
(12) 
An estimate of the cost savings to be achieved by the formation of a 
regional school unit and how these savings will be achieved; and 
(13) 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. 
Sec. 2. PL 2007, c. 240, Pt. XXXX, §36, sub-§2, ,C, as enacted by PL 2007, c. 
668, §42, is amended to read: 
Page I - 124LR0231(Ol)-1 
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C. 
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 an 
alternative organizational structure in accordance with this paragraph. 
(1) A school administrative unit may be designated by the commissioner as part 
of an alternative organizational structure. The commissioner may designate a 
school administrative unit as part of an alternative organizational structure if the 
commissioner finds that the proposed organizational structure will result in: 
(a) Consolidation of system administration; 
(b) Consolidation of special education 
administration, transportation 
administration and administration of business functions including accounting, 
reporting, payroll, financial management, purchasing insurance and auditing; 
(c) Adoption of a core curriculum and procedures for standardized testing 
and assessment aligned with the system of learning results established in 
Title 20-A, section 6209; and 
(d) Adoption of consistent school policies and school calendars and a plan 
for consistent collective bargaining agreements. 
A plan for an alternative organizational structure may include a collaborative 
·agreement under chapter 114 and must include an interlocal agreement under 
Title 30-A, chapter 115. The plan must include procedures for conducting a 
kindergalien through grade 12 budget approval pursuant to subparagraph (2). 
(2) The budget procedures of members of an alternative organizational structure 
must conform to the format and referendum procedures set forth in sections 1485 
and 1486 for regional school units except for the time limits pursuant to section 
1486, subsection 2. The budget validation referendum for all members of the 
alternative organizational structure must be conducted on the same day. 
(3) A plan for an alternative organizational structure must designate a fiscal 
agent or agents for each of the member entities and municipalities of the 
alternative organizational structure. 
The plan may designate the alternative 
organizational structure as the fiscal agent for its member entities and 
municipalities. 
SUMMARY 
This bill provides that a reorganization plan to form an alternative organizational 
structure must designate a fiscal agent or agents for each of the member entities and 
municipalities of the alternative organizational structure. The bill also provides that the 
reorganization plan may designate the alternative organizational structure as the fiscal 
agent for its member entities and municipalities.