An Act To Provide Flexibility for Efficient and Effective Management of School Management and Leadership Centers
Maine Legislature, Session 129, LD 1341
Committee: Education and Cultural Affairs
Sponsors: KORNFIELD, GRATWICK, CARDONE, PERRY, SCHNECK
Amends: 20-A MRSA §1051, 20-A MRSA §5205, 20-A MRSA §13025, 20-A MRSA §15683-C, 20-A MRSA §15689

Legislative Document
No. 1341
H.P. 969
House of Representatives, March 21, 2019
An Act To Provide Flexibility for Efficient and Effective 
Management of School Management and Leadership Centers
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative KORNFIELD of Bangor.
Cosponsored by Senator GRATWICK of Penobscot and
Representatives: CARDONE of Bangor, PERRY of Bangor, SCHNECK of Bangor.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  20-A MRSA §1051, sub-§6, ¶D, as repealed and replaced by PL 2017, c. 
475, Pt. A, §23, is amended to read:
D.  A group of school administrative units that have an interlocal agreement pursuant 
to Title 30-A, chapter 115 in order to establish a school management and leadership 
regional service center to jointly purchase the services of a superintendent may elect 
the superintendent in the manner prescribed in their interlocal agreement.
Sec. 2.  20-A MRSA §§3801 to 3806, as enacted by PL 2017, c. 284, Pt. 
VVVVV, §6, are amended to read:
§3801.  General provisions
1.  Definitions.  As used in this chapter, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Municipality" means a city, town or organized plantation.
B.  "School management and leadership Regional service center" means a 
multiservice agency established and operated exclusively for the purposes of 
developing, managing and providing services or programs to 2 or more members 
pursuant to section 3802, subsection 2 and may include associate members pursuant 
to section 3802, subsection 3.  A "school management and leadership regional service 
center" is a political subdivision pursuant to section 3802, subsection 7.
2.  Establishment.  A school administrative unit as described in section 3802, 
subsection 2 may become a member of a school management and leadership regional 
service center through an interlocal agreement pursuant to Title 30-A, chapter 115 and the 
agreement may include associate members as described in section 3802, subsection 3.
3.  Interlocal agreement.  An interlocal agreement establishing a school 
management and leadership regional service center must include the structure and 
governance of the school management and leadership regional service center and its 
functions, programs and services.
A.  An interlocal agreement must include the specifications required pursuant to Title 
30-A, section 2203, subsection 2 and a description of:
(1)  The school management and leadership regional service center board 
composition, election or appointment of officers, board member terms and 
method of voting;
(2)  An approval process for a new school administrative unit to join the school 
management and leadership regional service center;
(3)  An approval process for an existing member to transfer to another school 
management and leadership regional service center;
(4)  The process for determining the sharing of costs for and the assessments of 
or payments to the school management and leadership regional service center;
(5)  The budget process that requires a school management and leadership 
regional service center budget be adopted by a date established in order to meet 
local school administrative unit budget deadlines.  The budget process must 
include a contingency plan for a budget failure and must be in the cost center 
summary budget format pursuant to section 1485;
(6)  The process for a balanced budget as required by section 3802, subsection 10 
and the method of determining the return of any excess funds to the members of 
the school management and leadership regional service center; and
(7)  The process for the disposition of indebtedness and property including by 
sale or lease, transferred to or from or administered by the school management 
and leadership regional service center.
B.  An interlocal agreement may include but is not limited to a description of the 
following:
(1)  The approval process for the formation of a school management and 
leadership regional service center;
(2)  Any associate members, the process for including associate members and 
their roles in the school management and leadership regional service center;
(3)  The process to authorize the school management and leadership regional 
service center to borrow funds for school construction purposes including bonds 
and notes;
(4)  The process to approve the purchase or lease of buildings or land by the 
school management and leadership regional service center;
(5)  The process by which a school management and leadership regional service 
center may establish, maintain and expend funds from a reserve fund or 
contingency fund;
(6)  The process of hiring an executive director or contracting services for 
leadership for the school management and leadership regional service center; and
(7)  A transition plan to move authorized programs and services from a member 
to the school management and leadership regional service center.
An interlocal agreement cannot transfer a school administrative unit's responsibility for 
providing the opportunity of a free public education to each of its students or a free, 
appropriate education to each of its students with a disability as required by this Title or 
by federal law.
4.  Duties of regional service center.  A school management and leadership regional 
service center's functions, programs and services may include but are not limited to the 
following:
A.  Accounting, payroll and financial management services and procurement;
B.  Transportation, transportation routing and vehicle maintenance;
C.  Reporting functions;
D.  Special education programs and administration;
E.  Gifted and talented programs and administration;
F.  Alternative education programs and administration;
G.  Substitute teachers and staff augmentation;
H.  Technology and technology support;
I.  Food service planning and purchasing;
J.  Energy management and facilities maintenance;
K.  Regional school leadership academies;
L.  Staff training and professional development;
M.  Shared educational programs or staff;
N.  Shared support service programs;
O.  Educational programs such as summer school, extended school year, tutoring, 
advanced placement and other programs that serve students and improve student 
achievement;
P.  Shared extracurricular or cocurricular programs; and
Q.  Superintendent services.
§3802.  Regional service center authorized
A school management and leadership regional service center shall provide 
administrative and education functions in accordance with this chapter and shall function 
as an extension of the member school administrative units and associate members of the 
school management and leadership regional service center.  A member school 
administrative unit of the school management and leadership regional service center 
cannot transfer the responsibility for providing the opportunity of a free public education 
to each of its students or a free, appropriate education to each of its students with a 
disability as required by this Title or by federal law.
1.  Geographic boundaries.  The commissioner shall determine 9 to 12 geographic 
areas for the establishment of each school management and leadership regional service 
center.  Membership in a particular school management and leadership regional service 
center does not require the member to be physically located in the school management 
and leadership regional service center's geographic boundary.
2.  Members.  Members in a school management and leadership regional service 
center must be determined by interlocal agreement pursuant to Title 30-A, chapter 115 
and may include the following types of school administrative units:
A.  Community school districts pursuant to chapter 105;
B.  Municipal school units pursuant to chapter 111;
C.  Regional school units pursuant to chapter 103-A;
D.  School administrative districts pursuant to chapter 103; and
E.  Schools established on tribal lands pursuant to Title 30, chapter 601.
3.  Associate members.  Associate members for a school management and leadership 
regional service center may include the following through a contractual agreement or 
memorandum of understanding with the members of the school management and 
leadership regional service center:
A.  Career and technical education regions pursuant to chapter 313, subchapter 4;
B.  Public charter schools as defined in chapter 112;
C.  Providers of child development services pursuant to chapter 303;
D.  Magnet schools pursuant to chapters 312 and 312-A;
E.  The Maine Educational Center for the Deaf and Hard of Hearing and the 
Governor Baxter School for the Deaf pursuant to chapter 304;
F.  Providers of education in the unorganized territory pursuant to chapter 119; or
G.  Municipalities and counties pursuant to Title 30-A.
4.  Provision of services to or from other public entities or nonprofit entities.  A 
school management and leadership regional service center may provide services to or 
purchase services from other types of political subdivisions, public entities or nonprofit 
organizations or associations.
5.  Purchase of services from another regional service center.  A member of a 
school management and leadership regional service center may purchase services from 
another school management and leadership regional service center if not provided by the 
member's school management and leadership regional service center.
6.  Validation.  A school management and leadership regional service center 
authorized and organized under this chapter is validated, confirmed, approved and 
declared legal in all respects, notwithstanding any defect or irregularity that may have 
occurred in the organization of the school management and leadership regional service 
center or in the selection of the board of that school management and leadership regional 
service center.
7.  Political subdivision.  A school management and leadership regional service 
center is a political subdivision within the meaning of Title 5, section 19002, subsection 6 
and a quasi-municipal corporation within the meaning of Title 30-A, section 5701, and all 
the provisions of those sections apply to it.  Notwithstanding Title 30-A, section 2203, 
subsection 8, paragraph B, the members of a school management and leadership regional 
service center may delegate eminent domain power to the school management and 
leadership regional service center by agreement.  A school management and leadership 
regional service center is considered a tax-exempt governmental entity for the purposes of 
Title 36, section 1760, subsection 2.
8.  Executive director; leadership services.  A school management and leadership 
regional service center shall employ an executive director or contract for leadership 
services, and the interlocal agreement under section 3801, subsection 3 must specify that 
the executive director or the provider of leadership services shall administer, in 
compliance with this chapter, the provisions of the interlocal agreement in the school 
management and leadership regional service center.
9.  Personnel.  The executive director or the provider of leadership services of a 
school management and leadership regional service center may employ a chief financial 
officer and may employ additional staff necessary or hire a fiscal agent to administer the 
functions assigned to the school management and leadership regional service center 
through the provisions of the interlocal agreement under section 3801, subsection 3.
10.  Balanced budget.  A school management and leadership regional service center 
must have a balanced budget and return excess funds to the members as prescribed by the 
interlocal agreement under section 3801, subsection 3.
11.  Authority to borrow, expend and accept funds.  A school management and 
leadership regional service center may:
A.  Borrow funds in anticipation of a member's payment of its share of the school 
management and leadership regional service center budget. Such borrowing:
(1)  Must be repaid within one year; and
(2)  May not at any time exceed 3/4 of the school management and leadership 
center's annual approved budget;
B.  Expend available funds to pay debt service, security and maintenance costs; and
C.  Accept and expend funds from state, federal and other sources and expend those 
funds on behalf of the members.
12.  Bonding authority.  A school management and leadership regional service 
center may issue bonds and notes for school construction purposes. For purposes of this 
section, "school construction purposes" includes minor capital costs relating to 
maintenance of a school's physical plant. The school management and leadership regional 
service center board shall decide whether the issuance of bonds or notes by the school 
management and leadership regional service center for school construction purposes is 
necessary. The board shall determine whether the issuance of bonds or notes is 
authorized, and, if so, the board shall issue the bonds or notes and administer the proceeds 
of, and the payment of principal of and interest on, those bonds or notes after issuance. A 
school management and leadership regional service center may issue bonds and notes for 
school construction purposes only under the provisions of the interlocal agreement under 
section 3801, subsection 3.
13.  Withdrawal from regional service center.  If a single school administrative 
unit applies to withdraw, it must demonstrate to the commissioner that as a result of the 
school administrative unit's withdrawing that there will be no increase in costs or 
decrease in student programs and services for is in the best interests of the withdrawing 
school administrative unit and for of any of the remaining member school administrative 
units of the school management and leadership regional service center.
14.  Dissolution of regional service center.  A school management and leadership 
regional service center may not be dissolved unless it applies to the commissioner for 
approval and:
A.  All member school administrative units apply to transfer to another school 
management and leadership regional service center; or
B.  If all the member school administrative units of a school management and 
leadership regional service center apply to dissolve the school management and 
leadership regional service center, they demonstrate to the commissioner that there 
will be no increase in costs or decrease in student programs and services for any of 
the member school administrative units of the school management and leadership 
center it is in the best interests of the member school administrative units of the 
regional service center to dissolve the regional service center.
15.  Reporting requirements.  A school management and leadership regional service 
center must meet state and federal reporting requirements on behalf of each member 
school administrative unit.
§3803.  Oversight
The commissioner shall provide oversight of the school management and leadership 
regional service centers, and this oversight must include the following.
1.  Data collection; monitoring.  The commissioner or the commissioner's designee 
is responsible for collecting, analyzing and reporting data from school management and 
leadership regional service centers. The commissioner or the commissioner's designee 
shall monitor the performance and legal compliance of the school management and 
leadership regional service centers, including collecting and analyzing data to support 
ongoing evaluation of the school management and leadership regional service centers.
2.  Notification of unsatisfactory performance or compliance.  If a school 
management and leadership regional service center's performance or legal compliance 
appears unsatisfactory, the commissioner shall promptly provide written notice to the 
school management and leadership regional service center and its members of perceived 
problems and provide reasonable opportunity for the school management and leadership 
regional service center to remedy the problems.  The school management and leadership 
regional service center shall provide the commissioner a corrective action plan to remedy 
the problems.
§3804.  Audit
A school management and leadership regional service center shall adhere to generally 
accepted accounting principles and shall annually engage an external auditor to do an 
independent audit of the school management and leadership regional service center's 
finances. The school management and leadership regional service center shall submit the 
audit to its members and to the department. The audit must be conducted in the same 
manner as a school administrative unit audit in accordance with chapter 221, subchapter 
2.
§3805.  Application for and approval of a regional service center
1.  Application.  The commissioner shall establish an application process under this 
chapter for the formation of a school management and leadership regional service center.  
The application must be in a form and contain such information as required by the 
commissioner, including, but not limited to:
A.  The identification of the school administrative units that are applying to form the 
school management and leadership regional service center;
B.  The specified structure and governance of the school management and leadership 
regional service center and its purposes, functions, programs and services;
C.  How any savings resulting from the formation of the school management and 
leadership regional service center will be used; and
D.  A copy of the proposed interlocal agreement pursuant to section 3801, subsection 
3.
2.  Commissioner's approval.  If an application under this section contains the 
information required pursuant to subsection 1, the commissioner shall notify each school 
administrative unit participating in the school management and leadership regional 
service center that, pending voter school board approval as set forth in subsection 3, the 
school management and leadership regional service center is approved pursuant to this 
chapter. The commissioner shall keep a register of school management and leadership 
regional service centers that have been approved pursuant to this chapter.
3.  School administrative unit approval.  If the commissioner approves an 
application for a school management and leadership regional service center pursuant to 
subsection 2, the school management and leadership regional service center must receive 
voter approval using the process specified in the interlocal agreement pursuant to section 
3801, subsection 3, paragraph B, subparagraph (1) school board approval.
§3806.  Direct state funding of a regional service center
A school management and leadership regional service center receives direct state 
funds for start-up costs in accordance with section 15689, subsection 9.  A school 
management and leadership regional service center that provides to members at least 2 
different services covering a total of at least 2 different categories as specified in section 
15683-C, subsection 2 must receive annual support for 55% of the executive director's 
salary and benefits or contracted leadership services, an accounting and payroll system or 
financial software to assist with the fiscal management for the regional service center and 
a student information system.
The school administrative units that are members of a school management and 
leadership regional service center must receive state funds in accordance with section 
15683-C.
Sec. 3.  20-A MRSA §5205, sub-§6-B, as enacted by PL 2017, c. 284, Pt. 
VVVVV, §7, is amended to read:
6-B.  Regional service center enrollment policies.  Members in a school 
management and leadership regional service center, as defined in section 3801, 
subsection 1, paragraph B, may adopt a mutual policy allowing the transfer of students, 
with parental approval, among the member school administrative units.  The mutual 
policy must set forth procedures and standards governing the transfers, including but not 
limited to the school year or years in which the policy applies, application procedures and 
standards of responsibility for transportation and special education.  Each member school 
board that adopts the mutual policy under this subsection shall post a copy of the mutual 
policy on the school administrative unit's publicly accessible website and shall provide 
timely notice of the policy to residents of the school administrative unit governed by that 
school board. For the purposes of chapter 606-B, a student transferred under this 
subsection is considered a resident of the school administrative unit to which the student 
transferred.
Sec. 4.  20-A MRSA §13025, sub-§1, ¶C, as enacted by PL 2017, c. 477, §1, is 
amended to read:
C.  "School entity" means an approved private school, school administrative unit, 
public charter school, school management and leadership regional service center, 
school in the unorganized territory or school operated by the State.
Sec. 5.  20-A MRSA §15683-C, as enacted by PL 2017, c. 284, Pt. VVVVV, §10, 
is amended to read:
§15683-C.  Regional service center members; calculation of regional service center 
administration allocation and state contribution
Beginning with fiscal year 2018-19, this This section applies to school administrative 
units that are members of school management and leadership regional service centers 
pursuant to chapter 123.
1.  Calculation of regional service center per-pupil rate.  The commissioner shall 
calculate a per-pupil amount for school management and leadership regional service 
center administration.  The per-pupil amount for school management and leadership 
regional service center administration is based on the actual General Fund expenditures 
for school administrative units with 2,500 students or more for the functions of school 
boards, elections and central offices, as defined in the State's accounting handbook for 
local school systems for the most recent year available, excluding expenditures for 
administrative technology-related software and less miscellaneous revenues from other 
local governments, divided by the average of October and April enrollment counts for 
that fiscal year and adjusted by appropriate trends in the Consumer Price Index or other 
comparable index.
2.  Categories of services of regional service center.  The following are the 
categories of services that a school administrative unit that is a member of a school 
management and leadership regional service center pursuant to chapter 123 may purchase 
for funding purposes under section 3806.
A.  Category 1, appropriate instructional services in the least restrictive settings that 
comply with federal regulations and state rules, including:
(1)  Special education programs and administration;
(2)  Gifted and talented programs and administration;
(3)  Alternative education programs and administration;
(4)  Shared educational programs or staff; and
(5)  Educational programs such as summer school, extended school year, 
tutoring, advanced placement and other programs that serve students and improve 
student achievement.
B.  Category 2, education support services, including the following services:
(1)  Substitute teachers and staff augmentation;
(2)  Technology and technology support;
(3)  Staff training and professional development;
(4)  Regional school leadership academies;
(5)  Shared support services programs; and
(6)  Shared extracurricular or cocurricular programs.
C.  Category 3, central office services, including the following services:
(1)  Accounting, payroll, financial management services and procurement;
(2)  Reporting functions;
(3)  Food service planning and purchasing; and
(4)  Superintendent services.
D.  Category 4, facilities and transportation system services, including the following 
services:
(1)  Transportation, transportation routing and vehicle maintenance; and
(2)  Energy management and facilities maintenance.
3.  Eligibility for regional service center allocation.  The commissioner shall 
determine that a school administrative unit is eligible for a school management and 
leadership regional service center allocation if according to its school management and 
leadership regional service center interlocal agreement pursuant to section 3801, 
subsection 3, the school administrative unit purchases at least 2 different services 
covering a total of at least 2 different categories from the school management and 
leadership regional service center as specified in subsection 2.
4.  Total allocation and state contribution.  The commissioner shall determine an 
eligible school administrative unit's total school management and leadership regional 
service center allocation under subsection 3 as the school management and leadership 
regional service center per-pupil rate in subsection 1 multiplied by the school 
administrative unit's subsidizable pupil count for October 1st of the most recent calendar 
year prior to the year of funding.  The state contribution for each school administrative 
unit's school management and leadership regional service center allocation is the 
allocation multiplied by the school administrative unit's state share percentage pursuant to 
section 15672, subsection 31, not to exceed 70% and not less than 30%.
Sec. 6.  20-A MRSA §15689, sub-§9, ¶¶B and C, as enacted by PL 2017, c. 
284, Pt. VVVVV, §11, are amended to read:
B.  For direct support to school management and leadership regional service centers 
established pursuant to chapter 123 including those costs specified in section 3806; 
and
C.  For department costs incurred for the review of applications and interlocal 
agreements for school management and leadership regional service centers under 
chapter 123.
Sec. 7.  Role of the Department of Education.  In order to provide for the 
orderly implementation of this Act, the Department of Education shall develop an 
application form for the formation of a regional service center under the Maine Revised 
Statutes, Title 20-A, section 3805 and convene an application review team.  Funds from 
Title 20-A, section 15689, subsection 9 may be used for the necessary expenses of the 
department in the development and administration of regional service centers.
Sec. 8.  Transition.  A school management and leadership center pursuant to Public 
Law 2017, chapter 284, Part VVVVV before the effective date of this Act is deemed to 
be a regional service center under this Act.
Sec. 9.  Maine Revised Statutes headnote amended; revision clause.  In the 
Maine Revised Statutes, Title 20-A, chapter 123, in the chapter headnote, the words 
"school management and leadership centers" are amended to read "regional service 
centers" and the Revisor of Statutes shall implement this revision when updating, 
publishing or republishing the statutes.
SUMMARY
This bill amends the Maine Revised Statutes, Title 20-A, chapter 123, regarding 
school management and leadership centers, and related laws to change the term "school 
management and leadership center" to the term "regional service center."  It amends the 
law governing the geographic boundaries of centers to remove the requirement that the 
Commissioner of Education must determine 9 to 12 geographic areas for the 
establishment of centers with the requirement that the commissioner must determine the 
geographic areas for the establishment of centers.  It also amends the law governing 
school management and leadership centers to allow a center to contract for leadership 
services and hire a fiscal agent.  It changes the law allowing a center to borrow funds by 
removing language requiring debts to be repaid within one year and limiting amounts 
borrowed to 3/4 of a center's annual approved budget.  It amends the law governing the 
withdrawal of a member school administrative unit from a center to replace the 
requirement that the member school administrative unit must demonstrate there will be no 
increases in costs or decrease in student programs or services with the requirement that 
the member school administrative unit must demonstrate that the withdrawal is in the best 
interests of the withdrawing school administrative unit and of any of the remaining 
member school administrative units.  It amends the law governing dissolution of centers 
to replace the requirement that member school administrative units must demonstrate to 
the Commissioner of Education that there will be no increase in costs or decrease in 
student programs and services for any of the member school administrative units of a 
center with the requirement that the school administrative units must demonstrate that it 
is in the best interests of the member school administrative units to dissolve the center.  It 
amends the law governing application for and approval of a center to replace voter 
approval with school board approval.  It amends the law governing state funding of a 
center that provides at least 2 different services to its members to include 55% funding 
support for contracted leadership services and financial software.