An Act To II
Maine Legislature, Session 125, LD 0139
Committee Amendment CA_B_H549 (House)
Amends: 20-A MRSA §15696

COMMITTEE AMENDMENT "./3" to H.P. 121, L.D. 
Eliminate the Penalty for Schools That Did Not Reorganize" 
139, Bill, "An Act To 
II 
Amend the bill by striking out the title and substituting the following: 
'An Act To Reduce the Amount of the Penalty for Schools That Did Not Reorganize' 
Amend the bill by striking out everything after the title and before the summary and 
inserting the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the State has school districts that have exhausted all reasonable 
alternatives for consolidation; and 
Whereas, these school districts are being penalized by the State for not complying 
with the consolidation laws; and 
Whereas, the State has failed to comply with the requirements in the Essential 
Programs and Services Funding Act that the State fund at least 55% of the total cost of 
funding public education from kindergarten to grade 12 by fiscal year 2008-09; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 20-A MRSA §15696, as amended by PL 2009, c. 455, §I, is further 
amended to read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENTj3,. (0 H.P. 121, LD. 139 
§15696. Penalties for nonconforming school administrative units 
1. Authorized adjustments. Notwithstanding any other provision of this Title, the 
following adjustments to the calculation of subsidy under chapter 606-B are required 
beginning July 1, WW 2011 for a school administrative unit that is not a conforming 
school administrative unit: 
A. The school administrative unit is eligible for only 50% of the minimum state 
allocation under section 15689, subsection 1; 
B. The school administrative unit's total cost of education is reduced by adjusting the 
cost component for system administration under section 15680, subsection 1, 
paragraph A by half; 
C. The school administrative unit is not eligible for a transition adjustment under 
section 15686 or any comparable year-over-year transition amount; 
D. The school administrative unit receives less favorable consideration for approval 
and funding for school construction pursuant to rules of the state board; and 
E. The school administrative unit's full-value education mill rate pursuant to section 
15671-A is increased by 2% for the purpose of calculating the school administrative 
unit's required contribution to meet the local share of education costs established 
pursuant to section 15688, subsection 3-A. 
2. Reduction of penalties. Beginning with fiscal year 2011-12 and each succeeding 
fiscal year, if the state share of the total cost of funding public education from 
kindergarten to grade 12, as described in section 15671, is less than 55% for that fiscal 
year, the penalties established under subsection I for a school administrative unit that is 
not a conforming school administrative unit must be reduced by an amount equal to the 
difference between the state subsidy that the school administrative unit would have 
received if the state share was 55% of the total cost of funding public education from 
kindergarten to grade 12 and the amount of state subsidy that the school administrative 
unit actually received for that fiscal year. The amount of the reduction in penalties must 
be reimbursed to the school administrative unit in the next fiscal year. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved.' 
SUMMARY 
This amendment is the minority report of the Joint Standing Committee on Education 
and Cultural Affairs. The amendment changes the title and replaces the bill to provide 
that, beginning in fiscal year 2011-12, the penalties established under the Maine Revised 
Statutes, Title 20-A, section 15696 that may be assessed to a school administrative unit 
that is a nonconforming school administrative unit with regard to the school district 
reorganization laws must be reduced if the state share of the total cost of funding public 
education from kindergarten to grade 12, as described by the Essential Programs and 
Services Funding Act, is less than 55% for that fiscal year. The amendment also provides 
that the penalties for a nonconforming school administrative unit must be reduced by an 
amount equal to the difference between the state subsidy that the school administrative 
unit would have received if the state share was 55% of the total cost of funding public 
COMMITTEE AMENDMENT 
COMMITIEE AMENDMENT~"to H.P. 121, L.D. 139 
education from kindergarten to grade 12 and the amount of state subsidy that the school 
administrative unit actually received for that fiscal year. Finally, the amendment provides 
that the amount of the reduction in penalties must be reimbursed to the school 
administrative unit in the next fiscal year. 
The amendment adds an emergency preamble and an emergency clause. 
FISCAL NOTE REQUIRED 
(See Attached) 
COMMITTEE AMENDMENT 
Approved: 06/0411 I 
~ac-
LD 139 
LR 128(03) 
An Act To Eliminate the Penalty for Schools That Did Not Reorganize 
Fiscal Note for Bill as Amended by Committee Amendmentj, 
Committee: Education and Cultural Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
No state fiscal impact 
Fiscal Detail and Notes 
This legislation will not impact the total cost of K-12 public education or the state's share of that cost. This legislation 
will result in a redistribution of approximately $2.9 million in state subsidy beginning in fiscal year 2012-13 with 
those school administrative units who complied with the laws governing school administrative unit reorganization 
receiving less subsidy than they would have had this provision not been in place and non-conforming school 
administrative units receiving more. The impact to individual school administrative units can not be determined at 
this time. 
LROI28(03) - Fiscal Note - Page I of I