EDUCATION, DEPARTMENT OF

To purchase school buses for Maine $9,000,000

public schools. Funds must be expended

over a 3-year period after approval of

the bond. First-year funding is 40%

of total proceeds; 2nd-year funding is

40%; and 3rd-year funding is 20%.

Sec. A-7. Contingent upon ratification of bond issue. Sections 1 to 6 of this Part do not become effective unless the people of the State have ratified the issuance of bonds as set forth in this Part.

Sec. A-8. Appropriation balances at year-end. At the end of each fiscal year, all unencumbered appropriation balances representing state money carry forward. Bond proceeds that have not been expended within 10 years after the date of the sale of the bonds lapse to General Fund debt service.

Sec. A-9. Bonds authorized but not issued. Any bonds authorized but not issued, or for which bond anticipation notes are not issued within 5 years of ratification of this Part, are deauthorized and may not be issued; except that the Legislature may, within 2 years after the expiration of that 5-year period, extend the period for issuing any remaining unissued bonds or bond anticipation notes for an additional amount of time not to exceed 5 years.

Sec. A-10. Referendum for ratification; submission at statewide election; form of question; effective date. This Part must be submitted to the legal voters of the State of Maine at a statewide election held on the Tuesday following the first Monday of November following passage of this Part. The municipal officers of this State shall notify the inhabitants of their respective cities, towns and plantations to meet, in the manner prescribed by law for holding a statewide election, to vote on the acceptance or rejection of this Part by voting on the following question:

"Do you favor a $9,000,000 bond issue to purchase school buses for Maine's public schools?"

The legal voters of each city, town and plantation shall vote by ballot on this question and designate their choice by a cross or check mark placed within a corresponding square below the word "Yes" or "No." The ballots must be received, sorted, counted and declared in open ward, town and plantation meetings and returns made to the Secretary of State in the same manner as votes for members of the Legislature. The Governor shall review the returns and, if a majority of the legal votes are cast in favor of this Part, the Governor shall proclaim the result without delay, and this Part becomes effective 30 days after the date of the proclamation.

The Secretary of State shall prepare and furnish to each city, town and plantation all ballots, returns and copies of this Part necessary to carry out the purpose of this referendum.

PART B

Sec. B-1. Criteria for bus replacement. The Department of Education shall develop criteria for the disbursement of the proceeds of the bonds proposed in Part A of this Act. Rules must require that, at a minimum, buses to be replaced be at least 10 years old and have mileage in excess of 150,000 miles. Rules adopted pursuant to this section are routine technical rules as defined in the Maine Revised Statutes, Title 5, chapter 375, subchapter II-A.

Sec. B-2. Contingent effectiveness. This Part takes effect only if Part A takes effect.

SUMMARY

The funds provided by this bond issue, in the amount of $9,000,000, will be used to purchase school buses for Maine's public schools. Proceeds of the bond issue will be disbursed over a 3-year period.

The bill also requires the Department of Education to adopt rules to determine the criteria for bus replacement. At a minimum, buses that are to be replaced must be at least 10 years old and have mileage in excess of 150,000 miles.