An Act To Encourage Voluntary Efficiency in Maine's School Systems and Related Costs Savings
Maine Legislature, Session 121, LD 1921
Committee Amendment CA_A-SA_C_S558 (Senate)

SENATE 
AMENDMENT "C-" to COMMITTEE 
AMENDMENT 
"A" to H. P. 
1422, L.D. 1921, Bill, "An Act To Encourage Voluntary Efficiency 
in Maine's School Systems and Related Costs Savings" 
Amend the amendment in section 2 by striking out all of the 
subchapter 1 headnote (page 1, lines 44 to 47 in amendment) and 
inserting in its place the following: 
'SUBCHAPTER 1 
REGIOHAL SCHOOL DISTRI(4S ARD REGIOHAL 
COOPERATIVES' 
Further 
amend 
the 
amendment 
in section 2 
in that part 
designated "§3701." in the first paragraph in the 4th to 6th 
lines (page 2, lines 5 to 7 in amendment) by striking out the 
following: 
"and provision of assistance by consulting school 
units to school administrative units seeking to reduce their 
education costs" 
Further 
amend 
the 
amendment 
in section 2 
in that part 
designated "§3702." by striking out a11 of subsection 1. 
Further 
amend the 
amendment in 
designated 
"S3702." by striking out 
inserting in its place the following: 
section 
all of 
in that 
subsection 2 
part 
and 
'2. 
Exceptional circumstances. 
"Exceptional circumstances" 
means an unforeseen condition or conditions regarding which a 
regional 
school 
district 
or 
regional 
cooperative 
lacks 
discretion, authority or other means of control.' 
Page l-LR2782(10) 
SENATE AMENDMENT 
SENATE AMENDMENT ,~" to COMMITTEE AMENDMENT "A" to H. P. 
L.D. 1921 
Further 
amend 
designated 
"§370Z." 
consecutively. 
the 
by 
amendment 
in 
renumbering 
section 
in that 
the 
subsections 
to 
1422, 
part 
read 
Further amend the amendment in section 2 by striking out all 
of that part designated "§3703." and inserting in its place the 
following: 
'§3703. 
Authorization for regional delive~ of public education 
services 
A school administrative unit may enter into an agreement 
with another school administrative unit or units to 
form or 
intend to form a regional school district or regional cooperative 
and otherwise cooperate and participate in the development and 
formation of a regional school district or regional cooperative 
under this chapter. 
A school administrative unit may also enter 
into an agreement with a municipality or county to form or intend 
to form a regional cooperative. 
An agreement pursuant to this 
section 
must 
provide 
that 
each 
school 
administrative 
unit 
combined to form a regional school district retains all its debt 
obligations that existed on the effective date of the agreement. 
An 
agreement 
pursuant 
to 
this 
section to 
form 
a 
regional 
cooperative 
under 
this 
chapter 
must 
specify 
the 
date 
for 
commencement 
of 
operations, 
subject 
to 
and 
following 
final 
approval by the commissioner under section 3705, subsection 3.' 
Further 
amend the 
amendment 
in section 
in that part 
designated "§3704." by striking out all of subsections 4 to 7. 
Further 
amend 
the 
amendment in 
designated "§3705." by striking out 
inserting in its place the following: 
section 
all of 
in that 
subsection 3 
part 
and 
'3. 
Final approval. 
The commissioner shall grant final 
approval of a regional cooperative if: 
A. 
The participating entities request final approval under 
this subsection; 
B. 
The commissioner determines that the proposed regional 
cooperative meets the criteria of subsection 1; and 
C. 
The school administrative units to be combined to form 
the regional cooperative have each approved an agreement 
that 
addresses 
continuity 
of 
employment 
and 
employment 
benefits and rights of all bargaining units within the 
proposed regional cooperative. 
SENATE AMENDMENT 
SENATE AMENDMENT 
,,~, to COMMITTEE AMENDMENT "A" to H.P. 1422, 
L.D. 1921 
At 
the 
time 
the 
commissioner 
issues 
final 
approval, 
the 
commissioner 
shall set the date designated in the 
agreement 
pursuant to section 3703 to commence operations of the regional 
cooperative as the date for initiation of operations by the 
regional cooperative.' 
Further 
amend 
the 
amendment 
in section 2 
in that part 
designated "§3705." in subsection 4 in paragraph B in the last 2 
lines (page 8, lines 46 and 47 in amendment) by striking out the 
following: "section 3707, subsection 3, paragraphs Band C" and 
inserting in its place the following: 'section 3706, subsection 
1, paragraphs Band C' 
Further 
amend 
the 
amendment 
in section 2 
in that part 
designated "§3705." in subsection 4 in the last blocked paragraph 
in the last line (page 9, line 4 in amendment) by striking out 
the following: "section 3707, subsection 3" and inserting in its 
place the following: 'section 3706, subsection l' 
Further amend the amendment in section 2 by striking out all 
of that part designated "§3706." 
Further amend the amendment in section 2 by striking out all 
of that part designated "§3707." and inserting in its place the 
following: 
'§3707. 
Financial incentives 
1. 
Regional cooperatives. 
Except as otherwise provided by 
section 3705, subsection 4, a regional cooperative for which the 
commissioner 
has 
issued 
final 
approval 
under 
section 
3705, 
subsection 3: 
A. 
Has legal authority as 
a fiscal entity functionally 
equivalent to that of a school administrative unit; 
B. 
Is entitled to receive reimbursement from the State for 
consecutive years of an amount equal to a percentage of 
the total cost of salary and benefits of 
one 
1/4-time 
equivalent regional staff member for a regional cooperative 
wi th an aggregate resident student population of 1,500 or 
more or equal to a percentage of the total cost of salary 
and benefits of 
one 
1/2-time equivalent 
regional staff 
member for a regional cooperative with an aggregate resident 
student population of 2,500 or more in accordance with the 
following schedule: 
(1) 
In the first year, 100%; 
(2) 
In the 2nd year, 80%; 
SENATE AMENDMENT 
SENATE AMENDMENT 
,,~, to COMMITTEE AMENDMENT "A" to H.P. 1422, 
L.D. 1921 
(3) 
In the 3rd year. 60%; 
(4) 
In the 4th year, 40%; and 
(5) 
In the 5th year, 20%; 
C. 
Is eligible to receive assistance in the purchase of 
regionwide services software: 
D. 
Is eligible to receive state assistance for providing 
regional services training programs; and 
E. 
If located in a geographically isolated area as defined 
by the state board, may be eligible to receive incentives 
under paragraphs B, C and D if approved by the commissioner. 
2. 
Funding 
priority. 
Regional 
cooperatives 
that 
have 
received final approval under this subchapter are eligible for 
funding in priority order according to their respective dates of 
final approval as follows: 
A. 
At the beginning of fiscal years 2004-05 and 2005-06, 
the department shall calculate the amount available from the 
Fund for the Efficient Delivery of Education Services for 
the aggregate 5-year 
commitment to regional cooperatives 
under 
subsection I. 
paragraph 
B. 
The 
department 
shall 
provide 
its 
calculations 
and 
determination 
under 
this 
paragraph to the state board by September 15th of each 
fiscal year; 
B. In issuing final approval under section 3705, subsection 
3, the commissioner shall notify the regional cooperative 
whether, 
based 
on 
the 
department's 
calculations 
and 
determination pursuant to paragraph A, 
the Fund for the 
Efficient Delivery of Education Services has adeguate funds 
to 
provide 
the 
aggregate 
5-year 
amount 
of 
financial 
assistance 
for 
which 
the 
regional 
cooperative 
would 
otherwise be eligible under subsection 1, paragraph B; 
c. 
Except as otherwise provided by paragraph D. a regional 
cooperative is eligible to 
receive only that amount of 
assistance that is available after 
prov~s~on of funds to 
previously approved regional cooperatives; and 
D. In no event may the amount disbursed or committed from 
the Fund for the· Efficient Delivery of Education Services 
for approved regional cooperatives exceed 1/3 of the total 
amount transferred to the fund pursuant to section 3724.' 
SENATE AMENDMENT 
SENATE AMENDMENT "c.." to COMMITTEE AMENDMENT "A" to H.P. 1422, 
L.D. 1921 
Further 
amend 
the 
amendment 
in section 
in that part 
designated "§3709." in the first paragraph in the 3rd and 4th 
lines (page 15, lines 44 and 45 in amendment) by striking out the 
following: 
"3708 and certification of consulting school units 
pursuant 
to 
section 
3706" 
and 
inserting 
in its 
place 
the 
following: 
'3707' 
Further 
amend 
the 
amendment 
in section 
in that part 
designated "§3722." in the first paragraph in the 2nd and 3rd 
lines (page 16, lines 16 and 17 in amendment) by striking out the 
following: 
any funds 
reimbursed to the fund pursuant to 
section 3704, subsection 5" 
Further amend the amendment in section 2 by striking out all 
of those parts designated "§3724.", 
"§3725." and "§3726." and 
inserting in their place the following: 
'§3724. 
Transfers to fund 
The 
State 
Controller 
shall 
transfer 
from 
the 
amount 
appropriated for general purpose aid for local schools to the 
fund the following amounts on the first day of each of the 
following state fiscal years: 
1.. 
Fiscal. year 2004-05. 
In fiscal year 2004-05, $1,000,000 
of the total amount appropriated for general purpose aid for 
local schools: and 
2. 
Fiscal. year 2005-06. 
In fiscal year 2005-06, $2,000,000 
of the total amount appropriated for general purpose aid for 
local schools. 
§3725. 
DisburSement 
1. 
Regional 
cooperatives. 
The 
department 
shall 
make 
disbursements on the first day of initiation of operation from 
the fund to eligible regional coo:eeratives in amounts provided 
for and for the period specified by section 3706, subsection 1. 
Those amounts must be determined by the commissioner in an annual 
statement provided to the State Controller prior to disbursement. 
2. 
Technjcal assistance. 
The department shall annually 
make disbursements from the fund to school administrative units 
that have entered into agreements to form 
a 
regional school 
district or regional cooperative under section 3703 for which the 
state board has issued preliminary certification under section 
3704, subsection 2 or preliminary approval under section 3705, 
subsection 2, in amounts provided for in and in accordance with 
rules 
developed 
under 
section 
3708. 
Those 
amounts 
must 
be 
SENATE AMENDMENT 
SENATE AMENDMENT ·G" to COMMITTEE AMENDMENT "A" to H.P. 
L.D. 1921 
1422, 
determined by the commissioner in an annual statement provided to 
the State Controller prior to disbursement. 
§3726. 
Uses of fund 
1. 
Pub1ic education services. 
Except as otherwise provided 
by subsections 2 and 3, the fund may be used only by a regional 
school district or regional cooperative for delivery of public 
education services for kindergarten to grade 12. 
2. 
Technica1 assistance. 
The fund may be used to contract 
with t,hg gepartment, or another public or private entity for 
technics~,l assistance 
in the 
formatiQn 
of 
a 
regional 
school 
di§t,rict, Qr regional cooperative in accordance with §ection 3707. 
3. 
Other assistance for regiona1 schoo1 district 5-year 
p1ans. 
The fund may be used to assist one or more regional 
school districts that have received final certification under 
sect,iQn 3704, in carrying out their 5-year plan§.· 
Further amend the amendment in section 2 by renumbering the 
sections to read consecutively. 
Further amend the amendment by striking out all of section 3 
and inserting in its place the following: 
. Sec. 3. Reporting. 
No 
later than December 
1, 
2004, 
the 
Department 
of 
Education, 
in consultation with 
the 
Executive 
Department, State Planning Office, shall develop for presentation 
to and consideration by the First Regular Session of the 122nd 
Legislature 
any 
additional 
proposed legislation necessary to 
further 
clarify 
and 
govern 
the 
procedures 
for 
formation, 
governance, financing and administration and reorganization of a 
regional school district or regional cooperative under the Maine 
Revised Statutes, Title 20-A, chapter 123, including, but not 
limited 
to, 
legislation 
regarding 
the 
procedures 
governing 
formation and selection of boards of directors, asset transfer, 
budget development and approval, district referenda and a school 
administrative unit' s addition to or withdrawal from a regional 
school district or regional cooperative. 
Legislation developed 
pursuant to this section must be substantially similar to that 
regarding 
school 
administrative 
districts 
under 
Title 
20-A, 
chapter 103 and must be consistent with the intents, purposes and 
provisions of this Act. 
By January 15, 2005, the Commissioner of 
Education shall report to the Legislature and the Governor on the 
efficacy of the financial incentives provided under this Act and 
shall recommend any changes in law governing these incentives 
that 
may 
be 
needed 
to 
facilitate 
and 
encourage 
voluntary 
identification and implementation of efficiencies in delivering 
educational services. 
Any such recommendations made under this 
SENATE AMENDMENT 
SENATE 
AMENDMENT 
.. c...:.' to COMMITTEE AMENDMENT 
"A" to H.P. 1422, 
L.D. 1921 
section may not propose to diminish the 
regional 
school 
district 
or 
regional 
determined eligible pursuant to this Act.' 
incentives for which a 
cooperative 
has 
been 
Further amend the amendment in section 5 in the 3rd line 
(page 19, line 14 in amendment) by striking out the following: 
"3709" and inserting in its place the following: 
'3708' 
Further amend the amendment by striking out all of section 6 
and inserting in its place the following: 
, Sec. 
6. 
Appropriations 
and 
allocations. 
The 
following 
appropriations and allocations are made. 
EDUCATION, DEPARTMENT OF 
Fund for the Efficient Delivery of Education Services 
Initiative: 
Allocates funds to be transferred from the General 
Purpose 
Aid 
for 
Local 
Schools 
account 
to 
provide 
financial 
incentives and technical assistance to regional school districts 
and regional cooperatives. 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
2003-04 
$0 
$0 
2004-05 
$1,000,000 
$1,000,000' 
SUMMARY 
This amendment makes the following changes to the bill, as 
amended by Committee Amendment "A." 
1. 
It 
removes 
provisions 
regarding 
"consulting 
school 
units." 
2. 
It 
removes 
prov~s~ons 
regarding 
incentives 
and 
accountability components for regional school districts. 
3. 
It 
retains 
prov~s~ons 
regarding 
incentives 
and 
accountabili ty components for regional cooperatives. 
It limits 
the 
amount 
of 
funds 
that 
can 
be 
dedicated 
to 
regional 
cooperatives to 1/3 of the amount transferred to the Fund for the 
Efficient Delivery of Education Services in each year. 
4. 
It reduces transfers to the Fund for the Efficient 
Delivery of Education Services in fiscal year 2004-05 from .5% of 
general purpose aid for local schools to $1,000,000. 
SENATE AMENDMENT 
SENATE AMENDMENT "C,," to COMMITTEE AMENDMENT "A" to H.P. 1422, 
L.D. 1921 
5. 
It reduces transfers to the Fund for the Efficient 
Delivery of Education Services in fiscal year 2005-06 from 1.00,0 
of general purpose aid for local schools to $2,000,000. 
6. 
It eliminates 
the 
transfers 
to 
the 
Fund 
for 
the 
Efficient Delivery of Education Services specified for fiscal 
years 2006-07, 2007-08, 2008-09 and 2009-10. 
7. 
It changes 
Education must report 
January 2005. 
the 
date 
by 
which 
to the Legislature 
the 
from 
FISCAL NOTE REQillRED 
Commissioner 
January 2007 
SPONSORED BY: ~A.-~ 
(Senator DAMON) 
COUNTY: 
Hancock 
SENATE AMENDMENT 
of 
to 
Appropriations/Allocations 
Other Special Revenue Funds 
Transfers 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Approved: 04127/04 Mac:.. 
Office of Fiscal and Program Review 
LD 1921 
An Act to Encourage Voluntary Efficiency in Maine's School Systems 
and Related Costs Savings 
LR 2782(10) 
Fiscal Note for Senate Amendment 'c: to Committee Amendment 1\" 
Sponsor: Sen: Damon 
Fiscal Note Required: Yes 
Fiscal Note 
2003-04 
$0 
$0 
2004-05 
Projections 
2005-06 
Projections 
2006-07 
($2,627,053) 
($5,532,280) 
($15,945,964) 
($2,627,053) 
($5,532,280) 
($15,945,964) 
This amendment reduces the Other Special Revenue Funds cost of the bill by $2,627,053 in fiscal year 2004-05. 
As amended, this bill transfers $1,000,000 in fIScal year 2004-05 and $2,000,000 in fiscal year 2005-06 from the 
General Purpose Aid for Local Schools program to the Fund for the Efficient Delivery of Education Services. 
LR2782(10) - Fiscal Note - Page 1 of 1