Sec. D-18. 20-A MRSA §5401, sub-§15, śC, as amended by PL 2001, c. 667, Pt. C, §11, is further amended to read:

C. A school board may obtain a short-term loan or enter into a lease-purchase agreement to acquire school buses if the loan is approved by the unit's legislative body or if funds that can be used for the initial lease-purchase payment have been appropriated by the unit's legislative body. The term of a loan or a lease-purchase agreement 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 2005-06, these expenditures must be subsidized in accordance with section 15603, subsection 26-A chapter 606- B.

Sec. D-19. 20-A MRSA §6303, as enacted by PL 1995, c. 427, §1, is amended to read:

§6303. Medicaid for health and human services

A school administrative unit may receive funds from the Medicaid program pursuant to the United States Social Security Act, 42 United States Code, for the provision of preventive health, health, habilitation, rehabilitation and social services to eligible students in accordance with section 15613, subsection 16.

Sec. D-20. 20-A MRSA §6651, sub-§3, as amended by PL 1989, c. 414, §16, is repealed.

Sec. D-21. 20-A MRSA §6654, as amended by PL 1991, c. 550 and PL 2003, c. 689, Pt. B, §6, is further amended to read:

§6654. School-based child care grants

The department and the Department of Health and Human Services are authorized to provide assistance to school administrative units to assist the units in establishing school-based child care services. Any assistance provided must provide funds for 2 years and expenditure of those funds is considered expenditure of local funds in computing the unit's educational program costs in chapter 606. The department has full authority to administer any grant program that it operates under this section.