An Act To
Maine Legislature, Session 129, LD 1918
Committee Amendment CA_A_H681 (House)
Amends: 20-A MRSA §1312, 20-A MRSA §1491, 20-A MRSA §1706, 20-A MRSA §8468

COMMITTEE AMENDMENT .. IJ" to H.P. 1366, L.D. 1918, Bill, "An Act To 
Amend the Laws Regarding the Reserve Funds of Certain School Organizational 
Structures" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'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 er,. financing the acquisition of a specific item or type of 
capital equipment or any of the expenditures listed under section 1485. subsection 1, 
paragraph A 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 !§_ 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 in accordance with the procedure in subsection 
4: 
A. In the event of an emergency that requires the immediate expenditure of funds 
and when. in responding to the emergency, a vote of the district for permission is 
cost-prohibitive; or 
B. When such an expenditure is required by law. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT '/1" to H.P. 1366, L.D. 1918 
Sec. 3. 20-A MRSA §1312, sub-§4 is enacted to read: 
4. Procedure for expending money from reserve funds by vote of board. The 
procedure for the board of directors to expend funds from the reserve fund pursuant to 
subsection 3, paragraph A or B must be as follows. 
A. 
The board of directors shall provide public notice of the regular or special 
meeting at which the vote to expend funds from the reserve fund will be taken. 
B. The board of directors shall hold a public hearing prior to the vote to expend 
funds from the reserve fund. 
C. The vote to expend funds from the reserve fund must be recorded in the meeting 
minutes of the board of directors. 
Sec. 4. 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 el'~ financing the acquisition of a specific item or type of capital 
equipment or any of the expenditures listed under section 1485, subsection 1, paragraph 
A 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. 5. 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 in accordance with the procedure in subsection 4: 
A. In the event of an emergency that reguires the immediate expenditure of funds 
and when, in responding to the emergency, a vote of the regional school unit for 
permission is cost-prohibitive: or 
B. When such an expenditure is reguired by law. 
Sec. 6. 20-A MRSA §1491, sub-§4 is enacted to read: 
4. Procedure for expending money from reserve funds by vote of board. The 
procedure for the regional school unit board to expend funds from the reserve fund 
pursuant to subsection 3, paragraph A or B must be as follows. 
A. The regional school unit board shall provide public notice of the regular or special 
meeting at which the vote to expend funds from the reserve fund will be taken. 
B. The regional school unit board shall hold a public hearing prior to the vote to 
expend funds from the reserve fund. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "If," to H.P. 1366, L.D. 1918 
C. The vote to expend funds from the reserve fund must be recorded in the meeting 
minutes of the regional school unit board. 
Sec. 7. 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 01'.,_ financing the acquisition of a specific item or type of 
capital equipment or any of the expenditures listed under section 1485, subsection 1, 
paragraph A 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 !§ 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. 8. 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 in accordance with the procedure in 
subsection 4: 
A. In the event of an emergency that requires the immediate expenditure of funds 
and when, in responding to the emergency, a vote of the district for permission is 
cost-prohibitive; or 
B. When the expenditure is required by law. 
Sec, 9, 20-A MRSA §1706, sub-§4 is enacted to read: 
4. Procedure for expending money from reserve funds by vote of committee. 
The procedure for the district school committee to expend funds from the reserve fund 
pursuant to subsection 3, paragraph A or B must be as follows. 
A. The district school committee shall provide public notice of the regular or special 
meeting at which the vote to expend funds from the reserve fund will be taken. 
B. The district school committee shall hold a public hearing prior to the vote to 
expend funds from the reserve fund. 
C. The vote to expend funds from the reserve fund must be recorded in the meeting 
minutes of the dis11'ict school committee. 
Sec. 10. 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 01'.,_ the acquisition of a specific item or type of capital 
equipment or any of the expenditures listed under section 1485, subsection 1. paragraph 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT"//" to H.P. 1366, L.D. 1918 
A by establishing sueh 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. 11. 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 HHHI funds. The cooperative board may 
expend a sum in a reserve fund if pe1mitted 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 the reserve fund by a vote of the board without the expenditure's 
having to be included in the region budget or region budget proposal in accordance with 
the procedure in subsection 4: 
A In the event of an emergency that requires the immediate expenditure of funds 
and when, in responding to the emergency, a vote of the region for permission is cost-
prohibitive; or 
B. When the expenditure is required by law. 
Sec. 12. 20-A MRSA §8468, sub-§4 is enacted to read: 
4. Procedure for expending money from reserve funds by vote of board. The 
procedure for the cooperative board to expend funds from the reserve fund pursuant to 
subsection 3, paragraph A or B must be as follows. 
A 
The cooperative board shall provide public notice of the regular or special 
meeting at which the vote to expend funds from the reserve fund will be taken. 
B. The cooperative board shall hold a public hearing prior to the vote to expend 
funds from the reserve fund. 
C. The vote to expend funds from the reserve fund must be recorded in the meeting 
minutes of the cooperative board.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment adds to what a reserve fund may be established for to include 
providing funds for expenditures such as regular instruction, special education, career and 
technical education, other instruction including summer school and extracurricular 
instruction, student and staff support, system administration, school administration, 
transportation and buses, facilities maintenance, debt service and other commitments and 
other expenditures, including school lunch. 
The amendment also adds that, in order to expend funds by a vote of the boards or 
committees of school administrative districts, regional school units, community school 
districts and career and technical education regions, the respective boards and committees 
must provide public notice of the meeting at which the vote to expend funds from the 
COMMITTEE AMENDMENT 
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COMMITTEEAMENDMENT'A "toH.P.1366,L,D, 1918 
reserve fund will be taken and hold a public hearing prior to the vote to expend funds 
from the reserve fund. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 02/04/20 frac 
LD 1918 
LR 2676(02) 
An Act To Amend the Laws Regarding the Reserve Funds of Certain School Organizational 
Structures 
Fiscal Note for Bill as Amended by Committee Amendment ,,1( If-' r j 
Committee: Education and Cultural Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - certain school units 
Fiscal Detail and Notes 
Additional costs to those school administrative districts, regional school units, community school districts and career 
and technical education regions that have a reserve fund to implement the requirements of this legislation can be 
absorbed within existing budgeted resources. 
LR2676(02) - Fiscal Note - Page 1 of 1