An Act To Eliminate the Penalty for School Administrative Units That Did Not Consolidate and Eliminate State Funding of Local Administrative Costs
Maine Legislature, Session 125, LD 0786
Committee: Education and Cultural Affairs
Sponsors: LOVEJOY, JOHNSON, NELSON, SANBORN, WAGNER
Amends: 20-A MRSA §1461-B, 20-A MRSA §1465, 20-A MRSA §1466, 20-A MRSA §15690, 20-A MRSA §15696

Legislative Document 
No. 786 
H.P. 593 
House of Representatives, March 1, 2011 
An Act To Eliminate the Penalty for School Administrative Units 
That Did Not Consolidate and Eliminate State Funding of Local 
Administrative Costs 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative LOVEJOY of Portland. 
Cosponsored by Representatives: JOHNSON of Greenville, NELSON of Falmouth, 
SANBORN of Gorham, WAGNER of Lewiston. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  20-A MRSA §1461-B, sub-§6, ¶A, as enacted by PL 2009, c. 580, §5, is 
repealed. 
Sec. 2.  20-A MRSA §1461-B, sub-§6, ¶B, as enacted by PL 2009, c. 580, §5, is 
repealed. 
Sec. 3.  20-A MRSA §1461-B, sub-§6, ¶C, as enacted by PL 2009, c. 580, §5, is 
repealed. 
Sec. 4.  20-A MRSA §1465, sub-§3, as enacted by PL 2007, c. 240, Pt. XXXX, 
§13, is amended to read: 
3.  Referendum for a school administrative unit to join an existing regional 
school unit.  The municipal officers of each municipality in a proposed reorganized 
school administrative unit shall place a warrant article substantially as follows on the 
ballot of a municipal referendum in accordance with the referendum procedures 
applicable to the school administrative unit of which the municipality is a member. 
"Article:  Do you favor approving the school reorganization plan prepared by the 
(insert name) Reorganization Planning Committee for school administrative unit 
(insert name of affected school administrative unit) to join the regional school unit 
(name of regional school unit), with an effective date of (insert date)? 
Yes No" 
The following statement must accompany the article: 
"Explanation: 
A "YES" vote means that you approve of the (municipality or school 
administrative unit) joining the proposed regional school unit.  The financial 
penalties under the Maine Revised Statutes, Title 20-A, section 15696 to the 
existing school administrative unit will no longer apply to the proposed regional 
school unit." 
Sec. 5.  20-A MRSA §1465, sub-§4, as enacted by PL 2007, c. 240, Pt. XXXX, 
§13, is amended to read: 
4.  Referendum on the admission of an additional school administrative unit to 
an existing regional school unit.  If the vote to join a regional school unit under 
subsection 3 was in the affirmative, the existing regional school unit shall call a regional 
school unit referendum to vote on the following article. 
"Article:  Do you favor approving the school reorganization plan prepared by the 
(insert name) Reorganization Planning Committee for school administrative unit 
(insert name of affected school administrative unit) to join the regional school unit 
(name of regional school unit), with an effective date of (insert date)? 
Yes No" 
The following statement must accompany the article: 
"Explanation: 
A "YES" vote means that you approve of the (municipality or school 
administrative unit) joining the proposed regional school unit.  The financial 
penalties under the Maine Revised Statutes, Title 20-A, section 15696 to the 
existing school administrative unit will no longer apply to the proposed regional 
school unit." 
Sec. 6.  20-A MRSA §1466, sub-§20, as enacted by PL 2009, c. 580, §9, is 
repealed. 
Sec. 7.  20-A MRSA §15690, sub-§7 is enacted to read: 
7.  Administrative costs paid with local funds.  Notwithstanding this chapter, a 
school administrative unit shall pay local administrative costs using local funds.  State 
funds may not be appropriated or allocated to pay local administrative costs. 
Sec. 8.  20-A MRSA §15696, as amended by PL 2009, c. 455, §1, is repealed. 
Sec. 9.  PL 2007, c. 240, Pt. XXXX, §36, sub-§11, as amended by PL 2009, c. 
571, Pt. VVV, §1, is further amended to read: 
11.  Result of disapproval at January 2008 referendum or subsequent 
referendum on or before January 30, 2009.  A school administrative unit that rejects a 
proposed reorganization plan at the January 15, 2008 referendum or at a subsequent 
referendum on or before January 30, 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 
timelines 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 January 
30, 2009 and to implement that plan by July 1, 2009, including those school 
administrative districts that are reformulated under subsection 12.  These penalties do 
not apply to any school administrative unit that implements a reorganization plan by 
July 1, 2011 in accordance with subsection 11-A. 
Sec. 10.  PL 2007, c. 240, Pt. XXXX, §36, sub-§11-A, as amended by PL 2009, 
c. 571, Pt. VVV, §2, is further amended to read: 
11-A.  Result for school administrative unit that approves plan at referendum on 
or before January 30, 2010 but is unable to implement plan.  A school administrative 
unit that approves a proposed reorganization plan at the January 15, 2008 referendum or 
at a subsequent referendum on or before January 30, 2010 but is unable to implement the 
plan because the plan was rejected at referendum by one or more of its proposed partner 
school administrative units under the plan 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 
timelines are adjusted to reflect a July 1,  2011 reorganization date. 
B.  The penalties set forth in Title 20-A, section 15696 apply, as of July 1, 2011, to 
any school administrative unit that fails to approve a reorganization plan on or before 
January 30, 2011 and to implement that plan by July 1, 2011. 
Sec. 11.  PL 2007, c. 240, Pt. XXXX, §44 is repealed. 
SUMMARY 
This bill amends the laws governing school administrative unit reorganization to 
eliminate the penalties set forth for nonconforming school administrative units.  It also 
requires that a school administrative unit pay local administrative costs using local funds 
and provides that state funds may not be appropriated or allocated to pay local 
administrative costs.