LD 2314
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LR 3647
Item 3

Amend the bill by striking out everything after the enacting clause and before the emergency clause and inserting the following:

PART A

Sec. A-1. 20-A MRSA §1305-C,  as enacted by PL 2007, c. 240, Pt. XXXX, §11, is amended to read:

§ 1305-C. Mandatory budget validation and cost center summary budget form

Notwithstanding any other law, school administrative district budgets developed after January 1, 2008 must conform to the format and referendum procedures for regional school units as set forth in sections 1305-A and 1305-B 1485 and 1486. A school administrative district is deemed to be a regional school unit solely for the purpose of developing a budget pursuant to sections 1485 and 1486.

Sec. A-2. 20-A MRSA §1452,  as enacted by PL 2007, c. 240, Pt. XXXX, §13, is amended to read:

§ 1452. Application of general law; core functions of a regional school unit

Notwithstanding any provision of law to the contrary, schools operated by the regional school units established in accordance with this chapter are the official schools of the participating municipalities. The provisions of general law relating to public education apply to these schools. State funds for public schools must be paid directly to the treasurer of a regional school unit. The core functions for which a regional school unit is responsible include without limitation:

1 Employment of superintendent.   Employment and discharge of a superintendent pursuant to section 1001, subsection 3 and chapter 101, subchapter 2;
2 Performance of business functions.   Administration of accounting, payroll, financial management, purchasing insurance and auditing;
3 Special education administration.   Administration of special education duties of school administrative units under chapter 303;
4 Transportation.   Administration of transportation;
5 Core curriculum.   Adoption of a core curriculum, standardized testing and assessments aligned with the system of learning results established in section 6209;
6 Budget.   Adoption of the regional school unit budget;
7 Reporting.   Reporting required by state or federal law or regulation;
8 Employment.   Functioning as the employer of all employees working within the regional school unit for collective bargaining purposes and for all other purposes, including but not limited to those contained in section 1464, in Title 26, chapter 9-A and in all state and federal laws regulating the rights and duties of employers and employees;
9 School calendar.   Establishment of a common school calendar, subject to local variations permitted by the regional school unit board; and
10 Adoption of policies.   Adoption of policies for all schools in the regional school unit pursuant to section 1001, subsection 1-A, except that the local school committee may adopt policies not in conflict with the regional school unit policies.

Sec. A-3. 20-A MRSA §1461, sub-§3, ¶B,  as enacted by PL 2007, c. 240, Pt. XXXX, §13, is amended to read:

B. In order for the plan to be approved by the commissioner, the governing bodies of school administrative units shall work within the following parameters.

(1) The proposed regional school unit must serve not fewer than 2,500 students, except where circumstances relating to the following factors justify an exception:

(a) Geography, including physical proximity and the size of the current school administrative unit;

(b) Demographics, including student enrollment trends and the composition and nature of communities in the regional school unit;

(c) Economics, including existing collaborations to be preserved or enhanced and opportunities to deliver commodities and services to be maximized;

(d) Transportation;

(e) Population density; or

(f) Other unique circumstances including the need to preserve existing or developing relationships, meet the needs of students, maximize educational opportunities for students and ensure equitable access to rigorous programs for all students.

When circumstances justify an exception to the size requirement of 2,500 students, the unit must serve as close to 2,500 students as possible and in no case, except for coastal islands and schools operated by tribal school committees, may it serve fewer than 1,200 students.

In addition to the exceptions provided in this subparagraph to the requirement that a unit serve at least 1,200 students, the commissioner must lower the 1,200-student requirement in previous education units in which the commissioner finds that a population density of less than 50 residents per square mile makes a 1,200-student unit impractical.

(2) The plan must provide comprehensive programming for all students from kindergarten to grade 12 and must include at least one publicly supported secondary school.

(3) The plan must be consistent with the policies set forth in section 1451.

(4) The plan may not displace teachers or students or close any schools existing and operating during the school year immediately preceding reorganization, except as permitted under section 1512.

Sec. A-4. 20-A MRSA §1461-A  is enacted to read:

§ 1461-A Transitional powers and duties of initial regional school unit board

As used in this section, unless the context indicates otherwise, "regional school unit board" means the initial regional school unit board elected pursuant to section 1472-A. From the time of election of the regional school unit board to July 1st of the regional school unit's first operational year, the regional school unit board shall establish interim rules of procedures and shall elect officers who shall serve until officers are elected at a meeting following the operational date of the regional school unit. The regional school unit board's powers and duties during this period are governed by this section.

1 Selection of superintendent.   The regional school unit board shall select a superintendent for the regional school unit in accordance with section 1051 to carry out the duties specified in section 1055. During the interim period, the salary, office and other expenses of the superintendent, as well as the costs of the regional school unit board, including insurance, must be allocated to the school administrative units by the cost-sharing formula established in accordance with section 1481-A and included in the reorganization plan for the regional school unit.
2 Budget preparation and approval.   The regional school unit board shall prepare the annual budget for the first operational year of the regional school unit in time for its presentation to and consideration by the regional school unit board in accordance with subchapter 4. Specific duties may be assigned to existing personnel with the approval of the employing school administrative unit. The regional school unit board shall complete the budget development process and recommend a budget for consideration by the legislative body responsible for final budget approval and the residents of the regional school unit. The budget format, approval procedures and assessments for the regional school unit's first operational year budget must be in accordance with this chapter.
3 Authorization.   The regional school unit board is authorized to take all other actions provided under state law to prepare the regional school unit to become operational on July 1st for the first operational year, including the authority to open and maintain accounts, to incur expenses to be allocated among the regional school unit's member school administrative units in accordance with the reorganization plan for the regional school unit and to file applications for school construction projects and revolving renovation fund loans and other available funding.
4 Fiscal agent.   The regional school unit board is authorized to expend start-up funds for the regional school unit. A school administrative unit within the regional school unit may serve as a fiscal agent and may expend any start-up funds on behalf of the new regional school unit prior to the regional school unit's operational date without calling for a special meeting of the local legislative body.

Sec. A-5. 20-A MRSA §1472, sub-§2, ¶C,  as enacted by PL 2007, c. 240, Pt. XXXX, §13, is amended to read:

C. A plan may not permit the voting power of any director to exceed by more than 2% 5% the percentage of voting power the director would have if all 1,000 votes were apportioned equally among the directors.

Sec. A-6. 20-A MRSA §1472-A  is enacted to read:

§ 1472-A Election of initial regional school unit board

1 Election; interim secretary; duties.   Within 30 days of the issuance of a certificate of organization for the regional school unit by the state board pursuant to section 1461, subsection 7, the members of the school boards of the school administrative units within the regional school unit shall conduct a joint meeting for the purposes of electing an interim secretary of the regional school unit and determining a date for the election of the initial regional school unit board. The interim secretary shall notify the municipal officers of the member municipalities of the regional school unit of the date of the election. The election must be conducted in accordance with section 1473, subsection 2, except that the election duties of the secretary and the regional school unit board must be performed by the interim secretary. The duties of the interim secretary include:
A Notifying the municipal officers of the date of the election;
B Furnishing nomination papers at least 10 days before the deadline for filing nomination papers;
C Receiving completed nomination papers in accordance with section 1473, subsection 2;
D Preparing and distributing election ballots in accordance with section 1473, subsection 2;
E Receiving the town clerk's certification of the results of the voting in each member municipality;
F Tabulating the town clerk's certification of the results of the voting in each member municipality;
G Accepting any recount petitions that may have been filed pursuant to section 1473, subsection 2, paragraph C; and
H Totaling the votes cast for each candidate and notifying the clerk in each municipality, the candidates and the commissioner of the final results of the voting and the names and addresses of the persons elected as directors.
2 Initial meeting.   In accordance with section 1473, subsection 1, the clerk of each municipality within the regional school unit shall forward the names and addresses of the directors elected to represent that municipality to the state board with other data regarding their election as the state board may require. On receipt of the names and addresses of all of the directors, the state board shall set a time, place and date for the first meeting of the directors and give notice to the directors in writing, sent by registered or certified mail, return receipt requested, to the addresses provided by the municipalities.

Sec. A-7. 20-A MRSA §1472-B  is enacted to read:

§ 1472-B Staggered initial terms

Notwithstanding section 1471, subsection 2, the initial directors elected to a regional school unit board shall meet and draw lots for their term lengths as specified in this section.

1 Municipalities with annual elections.   In municipalities with annual elections, 1/3 of the directors serve one-year terms, 1/3 of the directors serve 2-year terms and 1/3 of the directors serve 3-year terms. If the number of directors is not evenly divisible by 3, the first remaining director serves a 3-year term and the 2nd remaining director serves a 2-year term.
2 Municipalities with biennial elections.   In municipalities with biennial elections, half of the directors serve 4-year terms and half of the directors serve 2-year terms. If the number of directors is not divisible by 2, the remaining director serves a 4-year term.

The directors shall serve their terms as determined under this section and any additional period until the next regular election of the municipalities. Thereafter, the directors' terms of office are as established in section 1471.

Sec. A-8. 20-A MRSA §1478,  as enacted by PL 2007, c. 240, Pt. XXXX, §13, is repealed and the following enacted in its place:

§ 1478 Local school committees

1 Formation.   A reorganization plan under section 1461 or a regional school unit board may authorize the formation of a local school committee for a member municipality established in accordance with chapter 111, subchapter 1.
2 Delegation of functions.   A reorganization plan that has been approved in accordance with subchapter 2 or a regional school unit board may delegate a local school committee to perform any duties, functions and services other than those reserved to the regional school unit under subchapter 1. The core functions provided by a regional school unit pursuant to section 1452 may be supplemented at the expense of any member municipality.
3 Budget responsibility.   A reorganization plan that has been approved in accordance with subchapter 2 or a regional school unit board may authorize a local school committee to present to the board a proposed budget for the local school in a form that is consistent with section 1485. The proposed local school budget must be submitted in time to be included in the budget for the regional school unit. Proposed expenditures that are not included in the regional school unit budget may be separately appropriated by the municipality to be expended by the regional school unit in accordance with the appropriation. Supplemental municipal appropriations for education are not subject to section 1486.
4 Title to property.   School property overseen by a local school committee may be owned either by the municipality or by the regional school unit as long as there is a clear allocation of responsibilities for management of all of the school property in the regional school unit.

Sec. A-9. 20-A MRSA §1481,  as enacted by PL 2007, c. 240, Pt. XXXX, §13, is repealed.

Sec. A-10. 20-A MRSA §1481-A  is enacted to read:

§ 1481-A Finances

1 Apportionment of costs for regional school unit.   A regional school unit may raise money, in addition to the local contribution pursuant to section 15690, subsection 1, for establishing and maintaining public schools, erecting buildings and providing equipment for educational purposes. The additional costs of operating a regional school unit must be shared among all municipalities within the regional school unit by the same local share percentages for each municipality resulting from the determination of the local contribution under section 15688.
2 Existing cost-sharing agreement.   Notwithstanding subsection 1, a cost-sharing agreement in existence on June 7, 2007 that was adopted pursuant to Public Law 2005, chapter 2 or pursuant to a private and special law remains in existence unless the parties to the agreement modify or terminate the agreement:
A As part of a reorganization to regional school units under this chapter; or
B As a result of a negotiated agreement between the parties to the cost-sharing agreement.
3 Method included in reorganization plan.   Notwithstanding subsection 1, a regional school unit may use a method of cost sharing that was included in a reorganization plan developed pursuant to section 1461 or Public Law 2007, chapter 240, Part XXXX, section 36 as long as the method complies with this subsection.
A The costs of operating a regional school unit must be shared among all municipalities within the unit in one of the following ways.

(1) Under a property valuation method, municipalities in a unit shall share costs in the same proportion as each municipality's property fiscal capacity as defined in section 15672, subsection 23 is to the unit's property fiscal capacity.

(2) Under an alternate method of cost sharing, municipalities in a unit shall share costs based on:

(a) The number of resident pupils in each town;

(b) The property fiscal capacity of each member municipality as defined in section 15672, subsection 23;

(c) Any combination of divisions (a) and (b); or

(d) Any other factor or combination of factors that may, but need not, include divisions (a) or (b).

B A process of amending the cost-sharing formula must be included in the reorganization plan.

Notwithstanding any provision of law to the contrary, a cost-sharing agreement in existence on June 7, 2007 that was adopted pursuant to Public Law 2005, chapter 2 or pursuant to a private and special law may not be construed to preempt the formation of a regional school unit under this chapter. Notwithstanding any provision of law to the contrary, a cost-sharing agreement between 2 or more municipalities in existence on June 7, 2007 that was adopted prior to June 7, 2007 may not be construed to preempt the formation of a regional school unit under this chapter.

Notwithstanding any provisions of law to the contrary, a municipality within a regional school unit may raise money and direct the spending of the funds to any school within the regional school unit.

Sec. A-11. 20-A MRSA §1482-A  is enacted to read:

§ 1482-A Budget meeting

A regional school unit board shall hold a regional school unit budget meeting at a time it determines.

1 Warrant.   The budget meeting must be called by a warrant. The warrant must:
A Be signed by a majority of the regional school unit board;
B Specify the time and place of the meeting;
C Include the proposed school budget and other articles the regional school unit board chooses to place before the voters, excluding authorization to borrow money for school construction purposes;
D Specify the state and local shares of the state-local allocation and local leeway and additional expenditures without state participation; and
E Be directed to a resident of the regional school unit by name ordering the resident to notify all voters within the regional school unit to assemble at the time and place appointed.
2 Notice.   An attested copy of the warrant must be posted by the person to whom it is directed in some conspicuous public place in each of the municipalities within the regional school unit at least 7 days before the meeting. The person who gives notice of the meeting shall make a return of the posting on the warrant stating the manner of notice in each municipality and the time when it was given.
3 Requested articles.   If requested by a written petition of at least 10% of the number of voters voting for the gubernatorial candidates in the last gubernatorial election in each municipality within the regional school unit, the regional school unit board shall place specific articles, not in conflict with existing state statutes, in the warrants for consideration at the next annual regional school unit budget meeting. To be included in the warrant, a petition must be received by the regional school unit board at least 15 days before the date set for the budget meeting. When placed on the warrant, the articles must be considered before action relating to the appropriation of money for the operation of schools may be taken.

Sec. A-12. 20-A MRSA §1482-B  is enacted to read:

§ 1482-B Annual budget meeting procedures

The following procedures must be used at a regional school unit annual budget meeting.

1 Election of moderator.   The secretary of the regional school unit board or the chair of the regional school unit board when the secretary is absent shall open the annual budget meeting and call for the election of a moderator, receive and count votes for the moderator and swear in the moderator.
2 Appointing ballot clerks.   The moderator shall appoint from the certified voting list the ballot clerks necessary for the efficient operation of the annual budget meeting. The moderator shall swear in the clerks.
3 Budget consideration.   The superintendent of the regional school unit shall thoroughly explain the budget. The voters must have an opportunity to be heard. The voters may change only items dealing with:
A The expenses necessary to operate the regional school unit;
B Appropriations for the reserve fund; and
C Appropriations for the contingency fund and school construction purposes.
4 Approval.   A majority vote of those voters present and voting is necessary for the approval of the annual budget.
5 Voting lists.   Registration of voters for the annual budget meeting must be held in each member municipality in accordance with Title 21-A, section 122.
A Prior to the annual budget meeting, the municipal clerks of the member municipalities shall supply to the regional school unit board certified corrected copies of the registered voters of their municipalities.
B The certified corrected copies under paragraph A must be used in determining the voters who are eligible to vote at the annual budget meeting.
6 Written ballot.   An article must be voted on by written ballot if at least 10% of those present and voting vote to use a written ballot. The department, in consultation with municipal and school officials and with organizations representing those officials, shall develop and distribute guidelines to assist regional school unit annual budget meeting moderators in explaining and implementing this subsection.

Sec. A-13. 20-A MRSA §1506, sub-§1, ¶A,  as enacted by PL 2007, c. 240, Pt. XXXX, §13, is amended to read:

A. "Existing debt" means any bond, note, loan agreement, lease-purchase agreement or other debt instrument issued prior to July 1, 2008 1st of the first operational year of the new unit for the purposes of funding public schools, or for refinancing such debt, that remains outstanding at the time of a reorganization pursuant to this chapter. "Existing debt" does not include routine payables or commercial contract obligations.

Sec. A-14. 20-A MRSA §1506, sub-§4,  as enacted by PL 2007, c. 240, Pt. XXXX, §13, is amended to read:

4. Debt of original education units.   After July 1, 2008, 1st of the first operational year of the new unit for each original education unit with existing debt that has reorganized into a new unit, if the new unit has not agreed to assume liability to pay that existing debt, the regional school unit board shall serve as agent for purposes of that existing debt and has full authority to:
A. Sue and be sued in the name of the original education unit with respect to the existing debt;
B. Determine the debt service due each fiscal year on any existing debt;
C. As applicable, allocate to each member of the original education unit the member's share of the annual debt service for the existing debt of the original education unit in addition to each member's share of costs of the new unit;
D. Collect the allocation for debt service on the existing debt from the original education unit or, as applicable, from each member of the original education unit in addition to each member's share of costs of the new unit;
E. Pay the debt service on the existing debt of the original education unit when due; and
F. Take all other actions necessary and proper with respect to the existing debt.

Allocations between members of the original education unit to pay the debt service for the existing debt must be made on the basis of the cost-sharing formula of the original education unit in effect on July 1, 2007, as applied to the year of allocation. In the case of state-subsidized debt service, the provisions of subsection 3 apply. Amounts to pay the debt service on the existing debt of the original education units must be included in the budget that the regional school unit board of a new unit submits for approval. If the original education unit is divided between different new units that have not agreed to assume liability to pay the existing debt, the commissioner shall require that the reorganization plan of one of those new units provide for that new unit to serve as agent for purposes of the existing debt of the original education unit. That new unit, as agent, has the authority provided by this subsection, except that the new unit shall notify the other new units containing members of the original education unit of the amounts they must assess and collect from their members who were members of the original education unit, and those other new units shall perform the functions in subsection 4, paragraphs C and D with respect to their members, and shall pay the appropriate amounts over to the new unit serving as agent.

Sec. A-15. 20-A MRSA §1512, sub-§6,  as enacted by PL 2007, c. 240, Pt. XXXX, §13, is amended to read:

6. Multiple municipalities.   If a school proposed for closure is an elementary a school that serves students from more than one municipality, the article set forth in subsection 1 must be submitted to the voters in each of the municipalities that sent all elementary students from that municipality to the school. If the article is approved by a majority of the voters in each of the municipalities, the school is not closed and the municipalities share in the costs under this section in the same proportion as they share the current operating costs of the school.

Sec. A-16. 20-A MRSA c. 103-A, sub-c. 7  is enacted to read:

SUBCHAPTER 7

REORGANIZATION OF REGIONAL SCHOOL UNITS

§ 1516 Dissolution of a district

1 Ten percent petition.   Upon receipt of a petition that seeks to dissolve a regional school unit and establishes a maximum figure for the cost of preparing a dissolution agreement signed by 10% of the number of voters in a municipality who voted at the last gubernatorial election, the municipal officers of the municipality within the regional school unit shall call and hold a special election, in the manner provided for the calling and holding of town meetings or city elections, to vote on the dissolution of the regional school unit.
A At least 10 days before the election, a posted or otherwise advertised public hearing on the petition must be held by the municipal officers.
B The petition must be approved by secret ballot by a 2/3 vote of the voters present and voting before it may be presented to the board of directors and the commissioner. Voting in towns must be conducted in accordance with Title 30-A, sections 2528 and 2529, even if the towns have not accepted the provisions of Title 30-A, section 2528, and voting in cities must be conducted in accordance with Title 21-A.
2 Form.   The article to be voted upon must be in substantially the following form:

"Article: Do you favor filing a petition for dissolution with the directors of regional school unit (name of regional school unit) and with the Commissioner of Education, authorizing the dissolution committee to expend $ (insert amount) and authorizing the (municipal officers; i.e., selectmen, town council, etc.) to issue notes in the name of the (name of the municipality) or otherwise pledge the credit of the (name of the municipality) in an amount not to exceed $ (insert amount) for this purpose?

Yes No"

3 Notice of vote; finding by commissioner.   If residents of a municipality within the regional school unit vote favorably on a petition for dissolution, the clerk shall immediately give written notices, by registered mail, to the secretary of the regional school unit and the commissioner that must include:
A The petition adopted by the voters, including the positive and negative votes cast; and
B An explanation by the municipal officers, stating to the best of their knowledge the reason or reasons why the municipality seeks to dissolve the regional school unit.
4 Agreement for dissolution; notice; changes in agreement; final agreement.   The agreement for dissolution must comply with the following.
A The commissioner, after consultation with the regional school unit board of directors, municipal officers of each municipality within the regional school unit and representatives of the group that filed the petition with the municipality, shall direct the municipal officers of each municipality to select representatives to a committee as follows: one member from the municipal officers, the group filing the petition; and one member from the general public; and one member from the group filing the petition if the group is represented in the municipality, otherwise an additional one member of the general public. The commissioner shall also direct the directors representing each municipality to select one member of the board of directors who represents that municipality to serve on the committee. The municipal officer and the member of the board of directors shall serve on the committee only so long as they hold their respective offices. Vacancies must be filled by the municipal officers and board of directors. The chair of the board of directors shall call a meeting of the committee within 30 days of the filing of the notice of the vote in subsection 3. The chair of the board of directors shall open the meeting by presiding over the election of a chair of the committee. The responsibility for the preparation of the agreement rests with the committee, subject to the approval of the commissioner. The committee may draw upon the resources of the department for information not readily available at the local level and employ competent advisors within the fiscal limit authorized by the voters. The agreement must be submitted to the commissioner within 90 days after the committee is formed. Extensions of time may be granted by the commissioner upon the request of the committee.

(1) The agreement must contain provisions to provide educational services for all students in the regional school unit. The agreement must provide that during the first year following the dissolution, students may attend the school they would have attended if the regional school unit had not dissolved. The allowable tuition rate for students sent from one municipality to another in the former regional school unit must be determined under section 5805, subsection 1, except that it is not subject to the state per pupil average limitation in section 5805, subsection 2.

(2) The agreement must establish the dissolution to take effect at the end of the regional school unit's fiscal year.

(3) The agreement must establish that the dissolution will not cause a need within 5 years from the effective date of dissolution for school construction projects that would be eligible for state funds. This limitation does not apply when a need for school construction existed prior to the effective date of the dissolution or when a need for school construction would have arisen even if the regional school unit had not dissolved.

(4) The agreement must establish how transportation services will be provided.

(5) The agreement must provide for administration of the new administrative units, which should not include the creation of new supervisory units if at all possible.

(6) The agreement must make provision for the distribution of financial commitments arising from outstanding bonds, notes and any other contractual obligations that extend beyond the proposed date of dissolution.

(7) The agreement must make appropriate provision for the distribution of any outstanding financial commitments to the superintendent of the regional school unit.

(8) The agreement must provide for the assumption and assignment of all obligations, duties, liabilities and rights related to collective bargaining as described in this section. Immediately following the dissolution, each municipal school unit shall assume all of the obligations, duties, liabilities and rights of the regional school unit for all purposes under Title 26, chapter 9-A with respect to the employees who are transferred and assigned to the municipal school unit. Notwithstanding any other provision of law, the responsibilities of a municipal school unit include:

(a) Continued recognition of all bargaining agents that represented any bargaining units of employees who were employed by the regional school unit and any successor or successors to such bargaining agents that are created as a consequence of the dissolution of the regional school unit and the division of the regional bargaining unit into municipal school unit bargaining units; and

(b) Assumption and continued observance of all collective bargaining agreements between such bargaining agents and the regional school unit, which agreements continue in effect for the remainder of their unexpired terms unless the bargaining agent and a municipal school unit mutually agree otherwise.

(9) The agreement must provide for the transfer and assignment of teachers and other school employees as described in this section. Except as limited by division (a), all teachers and school employees who are employed by the regional school unit on the effective date of the dissolution must be immediately transferred to and employed by a municipal school unit. Each municipal school unit shall assume all of the legal obligations and duties that the regional school unit owed to its employees, including but not limited to those obligations and duties arising under federal law, state law, collective bargaining agreements and individual employment contracts. It is the intent of this chapter to neither decrease nor increase the rights and benefits of transferred employees or the employers. The municipal school units shall also maintain and honor any agreements, contracts or policies regarding the rights and benefits of retirees and former employees of the regional school unit that is dissolved.

(a) Teachers or other employees whose employment terminates by application of law or contract or by action of the regional school unit before the effective date of the dissolution may not be transferred.

(b) Teachers and other employees who are transferred from the regional school unit to an individual municipal school unit prior to the completion of the applicable probationary period for their position have the length of their probationary period calculated from the date of their most recent date of employment by the regional school unit.

(10) The agreement must provide for the disposition of all real and personal property and other monetary assets.

(11) The agreement must provide for the transition of administration and governance of the schools to properly elected governing bodies of the newly created administrative units and must provide that the governing bodies may not be elected simultaneously with the vote on the article to dissolve unless the commissioner finds there are extenuating circumstances that necessitate simultaneous elections.

B Within 60 days of the receipt of the agreement, the commissioner shall either give it conditional approval or recommend changes. The changes must be based upon the standards set forth in paragraph A and the commissioner's findings of whether the contents of the plan will provide for appropriate educational and related services to the students of the regional school unit and for the orderly transition of assets, governance and other matters related to the regional school unit.
C If the commissioner gives conditional approval of the agreement, the commissioner shall notify the board of directors and the municipal officers by registered mail of the time and place of a public hearing at least 20 days prior to the date set for the hearing to discuss the merits of the proposed agreement of dissolution. The chair of the board of directors shall conduct the hearing.

(1) The board of directors shall post a public notice in each municipality of the time and location of the hearing at least 10 days before the hearing.

(2) Within 30 days following the hearing, the committee shall forward the final agreement to the commissioner.

D If the commissioner recommends changes, the commissioner shall:

(1) Send the agreement back to the committee for necessary corrections;

(2) Establish a maximum time within which to make the corrections; and

(3) Indicate that the corrected agreement must be returned to the commissioner for conditional approval before it goes to public hearing as set forth in paragraph C.

5 Date of vote; notice; warrant; polling hours.   The date and time for voting is as set forth in this subsection.
A The commissioner must determine the date upon which all municipalities must vote upon the dissolution agreement submitted to them. The election must be held as soon as practicable and the commissioner shall attempt to set the date of the vote to coincide with a statewide election.
B At least 35 days before the date set in paragraph A, the board of directors shall give written notice by registered or certified mail to the town or city clerk of each municipality having a right to vote on the dissolution agreement.
C The town or city clerk shall immediately notify the municipal officers upon receipt of the notice, and the municipal officers shall meet and immediately issue a warrant for a special town meeting or city election, as the case may be, to be held on the date designated by the commissioner. No other date may be used.
D In the respective warrants, the municipal officers shall direct that the polls open at 10 a.m. and remain open until 8 p.m.
6 Public hearing; voting procedures.   The following requirements apply to the voting procedures.
A At least 10 days before the election, the municipal officers shall hold a posted or otherwise advertised public hearing on the dissolution question.
B Except as otherwise provided in this section, the voting at the meetings held in towns must be conducted in accordance with Title 30-A, sections 2528 and 2529, even if the towns have not accepted the provisions of Title 30-A, section 2528.
C The voting at the meeting held in cities must be conducted in accordance with Title 21-A.
7 Article.   The article to be voted on must be in the following form.

"Article: Do you favor the dissolution of regional school unit (name of regional school unit) subject to the terms and conditions of the dissolution agreement dated (insert date)?

Yes No"

8 Ballots; posting of agreement.   The dissolution agreement need not be printed on the ballot. Copies of the agreement must be posted in each participating municipality in the same manner as specimen ballots are posted under Title 30-A, section 2528.
9 Restriction on dissolution petitions.   A municipality within a regional school unit may not petition for dissolution within 2 years after the date of:
A A municipal vote on a petition for dissolution if the petition received less than 60% of the votes cast; or
B A regional school unit vote on a dissolution agreement if the agreement received less than 45% of the votes cast.
10 Costs of dissolution agreements.   If the regional school unit votes to permit dissolution, then the regional school unit shall reimburse the petitioning municipality for the authorized expenses incurred by the dissolution committee. If the regional school unit votes not to permit dissolution, then the regional school unit will not be required to reimburse the petitioning municipality for those expenses.
11 Determination of vote.   The town and city clerks shall, within 24 hours of determination of the result of the vote in their respective municipalities, certify the total number of votes cast in the affirmative and the total number of votes cast in the negative on the article to the board of directors.
12 Determination of results; notification of commissioner; execution of agreement.   Determination of results must comply with the following.
A Upon receipt of the results of the voting from all municipalities, the board of directors shall meet and shall compute and record the total number of votes cast in the municipalities in the affirmative and in the negative on the article.
B The board of directors shall notify the commissioner by registered mail or by hand delivery of the results of the vote.
C If the commissioner finds that a majority of the voters voting on the article have voted in the affirmative, the commissioner shall notify the directors of the regional school unit to take steps to dissolve the regional school unit in accordance with the terms of the agreement for dissolution.
13 Recount; checklists and ballots; disputed ballots.   The following provisions apply to recounts, checklists, ballots and disputed ballots.
A If, within 7 days of the computation and recording of the results of the voting from all municipalities, the municipal officers of any participating municipality request to the commissioner in writing a recount of the votes in the regional school unit, the commissioner shall immediately cause the checklists and all the ballots cast in all of the participating municipalities to be collected and kept at the commissioner's office so they may be recounted by interested municipalities.
B The town clerks of the participating municipalities are authorized to deliver the checklists and ballots to the commissioner, notwithstanding any other provision of law to the contrary.
C The commissioner shall resolve any question with regard to disputed ballots.
14 Execution of agreement; certified record; certificate of withdrawal.   When the agreement for dissolution has been put into effect by the directors of the regional school unit, the directors shall notify the commissioner by certified mail that the agreement of dissolution has been executed.
A A complete certified record of the transaction involved in the dissolution must be filed with the commissioner.
B The commissioner shall immediately issue a certificate of dissolution to be sent by certified mail for filing with the directors of the regional school unit and shall file a copy in the office of the Secretary of State.
15 Indebtedness; indebtedness defined; indebtedness after dissolution.   The following provisions apply to outstanding indebtedness.
A Whenever a regional school unit having outstanding indebtedness dissolves, the regional school unit remains intact for the purpose of securing and retiring the indebtedness. The dissolution agreement may provide for alternate means for retiring outstanding indebtedness.
B For the purposes of this subsection, "outstanding indebtedness" means bonds or notes for school construction projects issued by the board of directors pursuant to the authorization established under chapter 609 or Title 20, sections 3457 to 3460 or obligations to the Maine School Building Authority pursuant to any contract, lease or agreement made by the board of directors pursuant to approval thereof in a meeting of the regional school unit, but does not include any indebtedness of any municipality assumed by the regional school unit at the time of formation nor any contract, lease or agreement of the Maine School Building Authority to which by operation of law the regional school unit has become the assignee.
16 General purpose aid.   When a regional school unit dissolves, the general purpose aid for the individual municipalities must be computed in accordance with chapter 606-B.
17 Committee recall.   If the commissioner determines that the dissolution committee has failed to comply with the requirements of this section, the commissioner may authorize the municipal officers and the board of directors of the regional school unit to recall their representatives and to appoint new representatives to the committee.

§ 1517 Withdrawal of a single municipality from a regional school unit

1 Petition.   The residents of a municipality within a regional school unit may petition to withdraw from the regional school unit as follows.
A Ten percent of the number of voters in the municipality who voted at the last gubernatorial election must sign the petition to withdraw from the regional school unit.
B At least 10 days before the special election called pursuant to this paragraph, the municipal officers of the municipality within the regional school unit shall hold a posted or otherwise advertised public hearing on the petition and shall call and hold the special election, in the manner provided for the calling and holding of town meetings or city elections to vote on the withdrawal of the regional school unit.
C The petition to withdraw from the regional school unit must be approved by secret ballot by a majority vote of the voters present and voting before it may be presented to the board of directors and the commissioner. Voting in towns must be conducted in accordance with Title 30-A, sections 2528 and 2529, even if the towns have not accepted the provisions of Title 30-A, section 2528, and voting in cities must be conducted in accordance with Title 21-A.
2 Form.   The article to be voted upon must be in substantially the following form:

"Article: Do you favor filing a petition for withdrawal with the directors of regional school unit (name of regional school unit) and with the Commissioner of Education, authorizing the withdrawal committee to expend $ (insert amount) and authorizing the (municipal officers; i.e., selectmen, town council, etc.) to issue notes in the name of the (name of the municipality) or otherwise pledge the credit of the (name of the municipality) in an amount not to exceed $ (insert amount) for this purpose?

Yes No"

3 Notice of vote; finding by commissioner.   If residents of the municipality vote favorably on a petition for withdrawal, the clerk shall immediately give written notices, by registered mail, to the secretary of the regional school unit and the commissioner that must include:
A The petition adopted by the voters, including the positive and negative votes cast; and
B An explanation by the municipal officers, stating to the best of their knowledge the reason or reasons why the municipality seeks to withdraw from the regional school unit.
4 Agreement for withdrawal; notice; changes in agreement; final agreement.   The agreement for withdrawal must comply with the following.
A The commissioner shall direct the municipal officers of the petitioning municipality to select representatives to a committee as follows: one member from the municipal officers, the group filing the petition; and one member from the general public; and one member from the group filing the petition if the group is represented in the municipality, otherwise an additional one member of the general public. The commissioner shall also direct the directors representing the petitioning municipality to select one member of the board of directors who represents that municipality to serve on the committee. The municipal officer and the member of the board of directors serve on the committee only so long as they hold their respective offices. Vacancies must be filled by the municipal officers and board of directors. The chair of the board of directors shall call a meeting of the committee within 30 days of the filing of the notice of the vote in subsection 3. The chair of the board of directors shall open the meeting by presiding over the election of a chair of the committee. The responsibility for the preparation of the agreement rests with the committee, subject to the approval of the commissioner. The committee may draw upon the resources of the department for information not readily available at the local level and employ competent advisors within the fiscal limit authorized by the voters. The agreement must be submitted to the commissioner within 90 days after the committee is formed. Extensions of time may be granted by the commissioner upon the request of the committee.

(1) The agreement must contain provisions to provide educational services for all students in the regional school unit. The agreement must provide that during the first year following the withdrawal, students may attend the school they would have attended if the petitioning municipality had not withdrawn. The allowable tuition rate for students sent from one municipality to another in the former regional school unit must be determined under section 5805, subsection 1, except that it is not subject to the state per pupil average limitation in section 5805, subsection 2.

(2) The agreement must establish the withdrawal to take effect at the end of the regional school unit's fiscal year.

(3) The agreement must establish that the withdrawal will not cause a need within 5 years from the effective date of withdrawal for school construction projects that would be eligible for state funds. This limitation does not apply when a need for school construction existed prior to the effective date of the withdrawal or when a need for school construction would have arisen even if the municipality had not withdrawn.

(4) The agreement must establish how transportation services will be provided.

(5) The agreement must provide for administration of the new municipal administrative unit, which should not include the creation of new supervisory units if at all possible.

(6) The agreement must make provision for the distribution of financial commitments arising from outstanding bonds, notes and any other contractual obligations that extend beyond the proposed date of withdrawal.

(7) The agreement must make appropriate provision for the distribution of any outstanding financial commitments to the superintendent of the regional school unit.

(8) The agreement must provide for the assumption and assignment of all obligations, duties, liabilities and rights related to collective bargaining as described in this section. Immediately following the withdrawal, the municipal school unit shall assume all of the obligations, duties, liabilities and rights of the regional school unit for all purposes under Title 26, chapter 9-A with respect to the employees who are transferred and assigned to the municipal school unit. Notwithstanding any other provision of law, the responsibilities of the municipal school unit include:

(a) Continued recognition of all bargaining agents that represented any bargaining units of employees who were employed by the regional school unit and any successor or successors to such bargaining agents that are created as a consequence of the withdrawal of the municipality from the regional school unit and the division of the regional bargaining unit; and

(b) Assumption and continued observance of all collective bargaining agreements between such bargaining agents and the regional school unit, which agreements continue in effect for the remainder of their unexpired terms unless the bargaining agent and the municipal school unit mutually agree otherwise.

(9) The agreement must provide for the continuation or transfer and assignment of teachers and other school employees as described in this section. Except as limited by division (a), all teachers and school employees who are employed by the regional school unit on the effective date of the withdrawal must be either continued in employment by the regional school unit or immediately transferred to and employed by the withdrawing municipal school unit. The withdrawing municipal school unit shall assume all of the legal obligations and duties that the regional school unit owed to its employees, including but not limited to those obligations and duties arising under federal law, state law, collective bargaining agreements and individual employment contracts. It is the intent of this chapter to neither decrease nor increase the rights and benefits of transferred employees or the employer. The municipal school unit shall also maintain and honor any agreements, contracts or policies regarding the rights and benefits of retirees and former employees of the regional school unit.

(a) Teachers or other employees whose employment terminates by application of law or contract or by action of the regional school unit before the effective date of the withdrawal may not be transferred or continued.

(b) Teachers and other employees who are transferred from the regional school unit to an individual municipal school unit prior to the completion of the applicable probationary period for their position have the length of their probationary period calculated from the date of their most recent date of employment by the regional school unit.

(10) The agreement must provide for the disposition of all real and personal property and other monetary assets.

(11) The agreement must provide for the transition of administration and governance of the schools to properly elected governing bodies of the newly created municipal administrative unit and must provide that the governing body may not be elected simultaneously with the vote on the article to withdraw unless the commissioner finds there are extenuating circumstances that necessitate simultaneous elections.

B Within 60 days of the receipt of the agreement, the commissioner shall either give it conditional approval or recommend changes. The changes must be based upon the standards set forth in paragraph A and the commissioner's findings of whether the contents of the plan will provide for appropriate educational and related services to the students of the municipality and the regional school unit and for the orderly transition of assets, governance and other matters related to the municipality and the regional school unit.
C If the commissioner gives conditional approval of the agreement, the commissioner shall notify the board of directors and the municipal officers by registered mail of the time and place of a public hearing at least 20 days prior to the date set for the hearing to discuss the merits of the proposed agreement of withdrawal. The chair of the board of directors shall conduct the hearing.

(1) The board of directors shall post a public notice in each municipality of the time and location of the hearing at least 10 days before the hearing.

(2) Within 30 days following the hearing, the committee shall forward the final agreement to the commissioner.

D If the commissioner recommends changes, the commissioner shall:

(1) Send the agreement back to the committee for necessary corrections;

(2) Establish a maximum time within which to make the corrections; and

(3) Indicate that the corrected agreement must be returned to the commissioner for conditional approval before it goes to public hearing as set forth in paragraph C.

5 Date of municipal election; notice; warrant; polling hours.   The date and time for voting is as set forth in this subsection.
A The commissioner shall determine the date upon which the petitioning municipality must vote upon the agreement submitted to them. The election must be held as soon as practicable and the commissioner shall attempt to set the date of the vote to coincide with a statewide election.
B At least 35 days before the date set in paragraph A, the commissioner shall give written notice by registered or certified mail to the town or city clerk of the municipality petitioning to withdraw.
C The town or city clerk shall immediately notify the municipal officers upon receipt of the notice, and the municipal officers shall meet and immediately issue a warrant for a special town meeting or city election, as the case may be, to be held on the date designated by the commissioner. No other date may be used.
D In the respective warrants, the municipal officers shall direct that the polls open at 10 a.m. and remain open until 8 p.m.
6 Public hearing; voting procedures.   The following requirements apply to the voting procedures.
A At least 10 days before the election, the municipal officers shall hold a posted or otherwise advertised public hearing on the withdrawal question.
B Except as otherwise provided in this section, the voting at the meetings held in towns must be conducted in accordance with Title 30-A, sections 2528 and 2529, even if the towns have not accepted the provisions of Title 30-A, section 2528.
C The voting at the meeting held in cities must be conducted in accordance with Title 21-A.
7 Article.   The article to be voted on must be in the following form.

"Article: Do you favor the withdrawal of the (name of municipality) from the regional school unit (name of regional school unit) subject to the terms and conditions of the withdrawal agreement dated (insert date)?

Yes No"

8 Ballots; posting of agreement.   The withdrawal agreement need not be printed on the ballot. Copies of the agreement must be posted in the municipality in the same manner as specimen ballots are posted under Title 30-A, section 2528.
9 Restriction on withdrawal petitions.   A municipality within a regional school unit may not petition for withdrawal within 2 years after the date of:
A A municipal vote on a petition for withdrawal if the petition received less than 45% of the votes cast; or
B A municipal vote on a withdrawal agreement if the agreement received less than 60% of the votes cast.
10 Cost of advisors.   The expense of employing competent advisors by the municipality petitioning to withdraw must be borne by the municipality and the expense of employing competent advisors by the regional school unit must be borne by the regional school unit with the municipality bearing its share according to the regional school unit's cost-sharing agreement.
11 Determination of vote.   The town and city clerks shall, within 24 hours of determination of the result of the vote in the municipality, certify the total number of votes cast in the affirmative and the total number of votes cast in the negative on the article to the commissioner.
12 Determination of results; execution of agreement.   If the commissioner finds that a majority of the voters voting on the article have voted in the affirmative, the commissioner shall notify the municipal officers and the directors of the regional school unit to take steps for the withdrawal in accordance with the terms of the agreement for withdrawal.
13 Recount; checklists and ballots; disputed ballots.   The following provisions apply to recounts, checklists, ballots and disputed ballots.
A If, within 7 days of the computation and recording of the results of the voting, the municipality requests to the commissioner in writing a recount of the votes, the commissioner shall immediately cause the checklists and all the ballots cast in the municipality to be collected and kept at the commissioner's office so they may be recounted by the municipality.
B The town or city clerk of the municipality is authorized to deliver the checklists and ballots to the commissioner, notwithstanding any other provision of law to the contrary.
C The commissioner shall resolve any question with regard to disputed ballots.
14 Execution of agreement; certified record; certificate of withdrawal.   When the agreement for withdrawal has been put into effect by the municipality, the municipal officers shall notify the commissioner by certified mail that the agreement of withdrawal has been executed.
15 Indebtedness; indebtedness defined; indebtedness after withdrawal.   The following provisions apply to outstanding indebtedness.
A Whenever a municipality withdraws from a regional school unit having outstanding indebtedness, the regional school unit remains intact for the purpose of securing and retiring the indebtedness. The withdrawal agreement may provide for alternate means for retiring outstanding indebtedness.
B For purposes of this subsection, "outstanding indebtedness" means bonds or notes for school construction projects issued by the board of directors pursuant to the authorization established under chapter 609 or Title 20, sections 3457 to 3460 or obligations to the Maine School Building Authority pursuant to any contract, lease or agreement made by the board of directors pursuant to approval thereof in a meeting of the regional school unit, but does not include any indebtedness of the municipality assumed by the regional school unit at the time of formation nor any contract, lease or agreement of the Maine School Building Authority to which by operation of law the regional school unit has become the assignee.
16 General purpose aid.   When a municipality withdraws from a regional school unit, the general purpose aid for the municipality must be computed in accordance with chapter 606-B.
17 Committee recall.   If the commissioner determines that the withdrawal committee has failed to comply with the requirements of this section, the commissioner may authorize the municipal officers to appoint new representatives to the committee.
18 Commissioner recommended dissolution.   The commissioner's responsibilities to initiate dissolution proceedings are as follows.
A If a municipality representing more than 50% of the total population in a regional school unit votes to withdraw from the district, then the commissioner shall analyze the educational impact of the withdrawal upon the regional school unit. The regional school unit's board of directors and the municipal officers from the remaining municipalities must be consulted.
B If the commissioner finds that it is impractical for the remaining municipalities to continue as a regional school unit, then the commissioner shall initiate a dissolution process by having the regional school unit submit the following article to the voters at a regional school unit meeting.

"Article: Do you favor appointment of a dissolution committee for the dissolution of regional school unit (name of regional school unit) by the Commissioner of Education, authorizing the dissolution committee to expend $ (insert amount) and authorizing the (municipal officers; i.e., selectmen, town council, etc.) to issue notes in the name of the (name of the municipality) or otherwise pledge the credit of the (name of the municipality) in an amount not to exceed $ (insert amount) for this purpose?

Yes No"

C If the voters approve the article by a majority vote of those voting and present, then the rest of the dissolution process set forth in section 1516 applies except:

(1) A 2nd member from the general public must be selected by the municipal officers to fill the position on the dissolution committee normally held by a representative of the group that would have filed the dissolution petition; and

(2) Costs of preparing a dissolution agreement must be borne solely by the regional school unit.