Sec. 1. 20-A MRSA §5401, sub-§15, ¶A, as amended by PL 1985, c. 781, is further amended to read:

A. The commissioner may not approve, in one year, more than $5,000,000 in expenditures for school bus purchases, excluding bus purchases made in accordance with paragraph C of this subsection. Annually, the Legislature shall review this limitation.

Sec. 2. 20-A MRSA §5401, sub-§15, ¶C, as enacted by PL 1981, c. 693, §§5 and 8, is amended to read:

C. A school board may obtain a short-term loan or a lease- purchase to purchase acquire school buses if it is approved by the unit's legislative body. The term of a loan or a lease-purchase may not exceed 3 years, except in a community school district a loan during the district's first year of operation may not exceed 5 years. The commissioner shall establish a maximum amount for annual-term purchases in excess of the amount established in paragraph A.__Beginning in fiscal year 2003-04, these expenditures must be subsidized in accordance with section 15603, subsection 26- A.

Sec. 3. 20-A MRSA §6051, sub-§1, ¶E, as corrected by RR 1993, c. 1, §45, is amended to read:

E. A determination as to whether the school administrative unit has complied with applicable provisions of the School Finance Act of 1985 and the School Finance Act of 1995; and

Sec. 4. 20-A MRSA §6051, sub-§4, as repealed and replaced by PL 1985, c. 797, §36, is amended to read:

4. Initial report to commissioner. On or before December 1st, the school board shall provide the commissioner with:

A. A copy of the audit; and

B. Written assurance that the audit has been conducted in accordance with applicable state and federal law relating to financial and compliance audits.

C.__Written determination of whether or not proper budgetary controls are in place;

D.__A written determination of whether or not the annual financial report submitted to the department is correct, including submission of an audited reconciliation of the