An Act To Amend the Laws Regarding the Reserve Funds of Certain School Organizational Structures
Maine Legislature, Session 129, LD 1918
Committee: Education and Cultural Affairs
Sponsors: CLOUTIER, LIBBY, CRAVEN, DODGE, FECTEAU, HANDY, HUBBELL, TEPLER
Amends: 20-A MRSA §1312, 20-A MRSA §1491, 20-A MRSA §1706, 20-A MRSA §8468

Legislative Document
No. 1918
H.P. 1366
House of Representatives, January 6, 2020
An Act To Amend the Laws Regarding the Reserve Funds of 
Certain School Organizational Structures
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203.
Received by the Clerk of the House on January 2, 2020.  Referred to the Committee on 
Education and Cultural Affairs pursuant to Joint Rule 308.2 and ordered printed pursuant to 
Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative CLOUTIER of Lewiston.
Cosponsored by Senator LIBBY of Androscoggin and
Representatives: CRAVEN of Lewiston, DODGE of Belfast, FECTEAU of Biddeford, 
HANDY of Lewiston, HUBBELL of Bar Harbor, TEPLER of Topsham.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  20-A MRSA §1312, sub-§1, as amended by PL 1989, c. 132, §2, is 
further amended to read:
1.  Establishment.  A school administrative district may establish a reserve fund for 
school construction projects, financing the acquisition or reconstruction of a specific or 
type of capital improvement or financing the acquisition of a specific item or type of 
capital equipment any direct instruction or instructional support purpose by including a 
request in the district budget, which must include a description of the purpose of the 
reserve fund, and receiving voter approval.  The board of directors shall be is the trustee 
of the reserve fund.  The reserve fund shall must be deposited or invested by the treasurer 
under the direction of the board.
Sec. 2.  20-A MRSA §1312, sub-§3, as enacted by PL 1981, c. 693, §§5 and 8, is 
amended to read:
3.  Expending moneys money from reserve funds.  The board of directors may 
expend the sum in the reserve fund when authorized to do so by a vote of the district at a 
district meeting or a district budget meeting, when an article for that purpose is set out in 
the warrant calling the meeting., except that the board of directors may expend funds 
from a reserve fund by a vote of the board:
A.  In the event of an emergency that requires the immediate expenditure of funds 
and when, in responding to the emergency, returning to the voters for permission is 
cost-prohibitive; or
B.  When such an expenditure is required by law.
The vote to expend funds from the reserve fund pursuant to paragraph A or B must be 
recorded in the meeting minutes of the board of directors.
Sec. 3.  20-A MRSA §1491, sub-§1, as enacted by PL 2007, c. 240, Pt. XXXX, 
§13, is amended to read:
1.  Establishment.  A regional school unit may establish a reserve fund for school 
construction projects, financing the acquisition or reconstruction of a specific or type of 
capital improvement or financing the acquisition of a specific item or type of capital 
equipment any direct instruction or instructional support purpose by including a request 
in the regional school unit budget, which must include a description of the purpose of the 
reserve fund, and receiving voter approval. The regional school unit board is the trustee 
of the reserve fund. The reserve fund must be deposited or invested by the treasurer of the 
regional school unit under the direction of the regional school unit board.
Sec. 4.  20-A MRSA §1491, sub-§3, as enacted by PL 2007, c. 240, Pt. XXXX, 
§13, is amended to read:
3.  Expending money from reserve funds.  The regional school unit board may 
expend the sum in the reserve fund when authorized to do so by a vote of the regional 
school unit at a regional school unit meeting or a regional school unit budget meeting 
when an article for that purpose is set out in the warrant calling the meeting., except that 
the regional school unit board may expend funds from a reserve fund by a vote of the 
board:
A.  In the event of an emergency that requires the immediate expenditure of funds 
and when, in responding to the emergency, returning to the voters for permission is 
cost-prohibitive; or
B.  When such an expenditure is required by law.
The vote to expend funds from the reserve fund pursuant to paragraph A or B must be 
recorded in the meeting minutes of the regional school unit board.
Sec. 5.  20-A MRSA §1706, sub-§1, as enacted by PL 1989, c. 132, §3, is 
amended to read:
1.  Establishment.  A community school district may establish a reserve fund for 
school construction projects, financing the acquisition or reconstruction of a specific or 
type of capital improvement or financing the acquisition of a specific item or type of 
capital equipment any direct instruction or instructional support purpose by including a 
request in the district budget, which must include a description of the purpose of the 
reserve fund, and receiving voter approval.
The district school committee shall be is the trustee of the reserve fund.  The reserve fund 
shall must be deposited or invested by the treasurer under the direction of the school 
committee.
Sec. 6.  20-A MRSA §1706, sub-§3, as enacted by PL 1989, c. 132, §3, is 
amended to read:
3.  Expending money from reserve funds.  The district school committee may 
expend the sum in the reserve fund when authorized to do so by a vote of the district at a 
district meeting or a district budget meeting, when an article for that purpose is set out in 
the warrant calling the meeting., except that the district school committee may expend 
funds from a reserve fund by a vote of the committee:
A.  In the event of an emergency that requires the immediate expenditure of funds 
and when, in responding to the emergency, returning to the voters for permission is 
cost-prohibitive; or
B.  When the expenditure is required by law.
The vote to expend funds from the reserve fund pursuant to paragraph A or B must be 
recorded in the meeting minutes of the district school committee.
Sec. 7.  20-A MRSA §8468, sub-§1, as corrected by RR 1991, c. 2, §64 and 
amended by PL 2003, c. 545, §5, is further amended to read:
1.  Establishment.  A career and technical education region may establish a reserve 
fund for a school construction project, the acquisition or reconstruction of a specific item 
or type of capital improvement or the acquisition of a specific item or type of capital 
equipment any direct instruction or instructional support purpose by establishing such a 
reserve fund including a request in the region budget, which must include a description of 
the purpose of the reserve fund, pursuant to this chapter.  The cooperative board is the 
trustee of such a reserve fund.
Sec. 8.  20-A MRSA §8468, sub-§3, as amended by PL 1991, c. 518, §32, is 
further amended to read:
3.  Expending money from a reserve fund.  The cooperative board may expend a 
sum in a reserve fund if permitted by the conditions of any indebtedness secured by the 
reserve fund and if approved in the region budget.  A separate article for that purpose 
must be included in the region budget proposal.  The cooperative board may expend 
funds from a reserve fund by a vote of the board without the expenditure's having to be 
included in the region budget or region budget proposal:
A.  In the event of an emergency that requires the immediate expenditure of funds 
and when, in responding to the emergency, returning to the voters for permission is 
cost-prohibitive; or
B.  When the expenditure is required by law.
The vote to expend funds from the reserve fund pursuant to paragraph A or B must be 
recorded in the meeting minutes of the cooperative board.
SUMMARY
This bill allows boards of school administrative districts, regional school units, 
community school districts and career and technical education regions to expend reserve 
funds by a vote of the board for emergencies necessitating immediate expenditures when 
obtaining voter permission would be cost-prohibitive or when the expenditures are 
required by law.
It also changes what a reserve fund may be established for, from funding school 
construction projects, financing the acquisition or reconstruction of a specific type of 
capital improvement or financing the acquisition of a specific item or type of capital 
equipment, to providing funds for any direct instruction or instructional support purpose.