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Amend the amendment in Part XXXX by striking out all of section 32 and inserting the following:
‘Sec. XXXX-32. 20-A MRSA §15696  is enacted to read:
§ 15696.  Incentives and penalties for school administrative units
 
1.  Incentives for conforming units.     Notwithstanding any other provision of this Title, each regional school unit that implements an approved reorganization plan by July 1, 2009 is entitled to a full value mill rate under section 15671-A that is 5% less than the rate established for the State at large for the fiscal year that begins July 1, 2008.
 
2.  Penalties for nonconforming units.     Notwithstanding any other provision of this Title, the following adjustments to the calculation of subsidy under chapter 606-B are required beginning July 1, 2009 for a school administrative unit that is not a conforming school administrative unit:
 
A.  The school administrative unit is not eligible for the minimum state allocation under Title 20-A, 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 to zero;
 
C.  The school administrative unit is not eligible for:
 
(1) The isolated small school adjustment under section 15683, subsection 1, paragraph F; or
 
(2) A transition adjustment under section 15686 or any comparable year-over-year transition amount;
 
D.  The school administrative unit's mill rate under section 15671-A is increased by 5% over the full-value education mill rate; and
 
E. The school administrative unit receives less favorable consideration for approval and funding for school construction pursuant to rules of the state board.’
Amend the amendment by relettering or renumbering any nonconsecutive Part letter or section number to read consecutively.
 
SUMMARY
This amendment creates an incentive for early formation of a regional school unit.