D.__The professional development needed to integrate technology into classroom teaching;

E.__Assessment of the strategy and goals for improving and equalizing access to and the use of learning technology in all schools;

F.__A plan for implementing the plan in several phases;

G.__Strategies that coordinate the resources and goals of the endowment and the plan with a network of schools and libraries in the State administered by the Public Utilities Commission and the telecommunications education access fund;

H.__Strategies that coordinate learning technology in kindergarten to grade 12 education with initiatives and resources of the State's postsecondary education institutions; and

I.__Data tracking and assessment of the progress of implementing the goals of the endowment and the plan.

3.__Guiding principles for plan.__The plan must be consistent with the following guiding principles:

A.__Equity.__The plan must promote equal opportunity for and provide meaningful access to learning technology resources for students who are economically disadvantaged or have special needs;

B.__Integration with the system of learning results established in section 6209.__The plan must support student achievement of the system of learning results through the integration of learning technologies that are content- focused and that add value to existing instructional methods;

C.__Sustainability and avoidance of obsolescence.__The plan must provide future sustainability of learning technology resources to adapt to future educational needs and to avoid obsolescence of learning technology resources;

D.__Teacher preparation and professional development.__The plan must provide effective preparation, professional development and training programs for teachers and other

educators in the use and integration of learning technology tools in curriculum development, instructional methods and student assessment systems; and

E.__Economic development.__The plan must foster economic development across all regions of the State and the preparation of students for an economy that is dependent upon technology.

Sec. 4. 20-A MRSA §19103, as enacted by PL 1999, c. 731, Pt. FFF, §1, is repealed and the following enacted in its place:

§19103. Finances of endowment

1.__Endowment assets.__The endowment includes all assets, funds and holdings held in the name of, on behalf of or for the benefit of the endowment.__This is a nonlapsing fund the sources of which include all appropriations and allocations by the Legislature to the endowment; money from any other source, whether public or private, designated for deposit into or credited to the endowment; and interest or other income or assets of the endowment.

2.__Fundraising plan.__The commissioner and the Commissioner of Administrative and Financial Services shall, for the duration of the endowment, identify and submit grant and fundraising proposals in support of the priorities of the learning technology plan to federal, corporate, foundation and other 3rd-party sources as appropriate.

In conjunction with the advisory board established under section 19109, the commissioner and the Commissioner of Administrative and Financial Services shall develop a plan for fundraising and identifying grant sources that is designed to raise sufficient funds to enable the learning technology plan to expand to the secondary school level.__The fundraising plan must identify specific funding sources, timelines and an assessment of the probability of success.

All fundraising and grant proposals must be consistent with the goals and terms of the learning technology plan.__The commissioner and the Commissioner of Administrative and Financial Services in conjunction with the advisory board established under section 19109 shall develop any necessary guidelines for fundraising and grant proposals in order to carry out this requirement.

Sec. 5. 20-A MRSA §19104, as enacted by PL 1999, c. 731, Pt. FFF, §1, is amended to read:

§19104. Fiduciary roles and responsibilities

The Commissioner of Administrative and Financial Services, referred to in this section as the "commissioner," shall act as fiduciary and fiscal agent with respect to the management and administration of the endowment. The commissioner shall ensure that deposits into the endowment are segregated and separately accounted for as funds held in trust on behalf of the State for the purposes specified in this chapter and for no other purpose. The commissioner shall enter into and administer an investment contract for the investment of endowment funds by an appropriate entity, including, but not limited to, the Board of Trustees of the Maine State Retirement System.

1. Investment of endowment. The If the commissioner determines that the Board of Trustees of the Maine State Retirement System is the appropriate entity to provide for the investment of endowment funds, the board shall invest the endowment in the same manner and according to the same investment policy and practices by which the board invests the assets of the Maine State Retirement System. The board shall treat the endowment as held in trust on behalf of the State for the purposes specified in this chapter and no other and shall separately account for the endowment as investment assets, attributing to the endowment its proportional share of investment returns and of investment management costs and expenses, including costs and expenses of the retirement system arising because of its investment of the endowment. The commissioner and the board shall develop jointly a memorandum of understanding, setting out their mutual understanding of the investment of the endowment, the related investment accounting and investment return and expense attribution.

2. Audit of endowment. The commissioner shall ensure adequate audit of the investment management of the endowment and the expenditures of the endowment each state fiscal year within the scope of the annual audit of the Maine State Retirement System or through separate audit as considered appropriate by the Board of Trustees of the Maine State Retirement System. Any separate audit must be reported to the Governor, the Legislature, the commissioner and the State Controller in as timely a manner as possible after the close of each state fiscal year.

3. Use of endowment. Until otherwise provided by the Legislature, The endowment must be managed and invested to ensure the perpetual maintenance of the principal amount of General Fund money appropriated by the State.__In addition to the budgeting guidelines pursuant to section 19105, in accordance with a state the learning technology plan, the proceeds of the endowment may

be used for necessary audit services, legal expenses, investment management fees and services and general administrative expenses related to the management and administration of the endowment.

Sec. 6. 20-A MRSA §§19105 to 19110 are enacted to read:

§19105.__Commissioner's recommendation for annual learning

technology plan; guidelines and funding level

1.__Annual plan recommendation.__Prior to December 15th of each year, the commissioner, after consultation with the advisory board established under section 19109 and the Commissioner of Administrative and Financial Services and after receiving the approval of the state board, shall recommend to the Governor and the Department of Administrative and Financial Services, Bureau of the Budget the funding level for implementing the annual learning technology plan.

2.__Budget development.__The commissioner, with the assistance of the Commissioner of Administrative and Financial Services, shall prepare an annual budget for the implementation of the annual learning technology plan and exercise budgetary responsibility to carry out the plan.__Annually, by January 1st, beginning on January 1, 2002, in addition to complying with the provisions of Title 5, sections 1665 and 1666, the commissioner shall present the operating budget for the endowment to the Governor and the Legislature for review by the joint standing committee of the Legislature having jurisdiction over education matters and the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs.__ The commissioner may make expenditures only in accordance with an allocation approved by the Legislature, and any liability or obligation may not be incurred under this chapter beyond the amount allocated by the Legislature.

3.__Guidelines.__The recommended funding level for the annual learning technology plan must include the known obligations and estimates of the following:

A.__The level of expenditure for purchases of portable computing devices or the anticipated principal and interest costs for the year of allocation for leases and other appropriate financing arrangements, including leases under which the learning technology plan may apply the lease payments to the purchase of those devices;

B.__The level of expenditures for software and services such as technical support and education intranet services;

C.__Funds designated by the commissioner for professional development programs and services;

D.__Funds designated by the commissioner for the expenditures for the alternative equivalent value factor.__ For purposes of this paragraph, "alternative equivalent value factor" means the ratio of funding provided to school administrative units that choose to provide an alternative equivalent learning technology plan that meets the guiding principles described in section 19102, subsection 3;

E.__Funds designated by the commissioner for the purchase of kindergarten to grade 12 educational materials, including library databases; and

F.__Funds designated by the commissioner for the purpose of making adjustments to the cash flow of revenues generated from the endowment.

4.__Funding level. The Governor shall include in the Governor's biennial or supplemental budget submission, as applicable, an allocation from the endowment necessary to implement the learning technology plan.

§19106.__Governor's funding level recommendation

The Department of Administrative and Financial Services, Bureau of the Budget shall annually certify to the Legislature the funding level that the Governor recommends for the annual learning technology plan.__The Governor's recommendations must be transmitted to the Legislature within the time schedules set forth by Title 5, section 1666.

§19107.__Actions by Legislature

The Legislature annually, prior to March 15th, shall enact legislation to allocate the funding level necessary to implement the annual learning technology plan.__The Legislature may allocate for expenditure by the commissioner for eligible kindergarten to grade 12 schools and eligible programs under the commissioner's jurisdiction all the resources available for the programs involved in the annual learning technology plan.

§19108.__Actions by department

Within the annual allocation, the department shall follow the procedures established under this section.

1.__Cash flow.__For the purpose of cash flow, the commissioner may pay the full payment amounts due on leases under which the learning technology plan may apply the lease payments to the purchase of portable computing devices, and the required

amount to offset the payments may be transferred to the debt service portion of the account from other operating accounts.

2.__Report by commissioner.__The commissioner annually shall provide the advisory board with evaluation and outcome data relative to the implementation of the learning technology plan.

§19109.__Advisory board

The Advisory Board of the Maine Learning Technology Endowment, referred to in this chapter as the "advisory board," is established to advise the commissioner and the Legislature on matters related to the development of policies for the learning technology plan and the deployment of endowment proceeds to implement the learning technology plan.

1.__Membership.__In appointing the initial public members to the advisory board, the Governor, the President of the Senate and the Speaker of the House shall give proper consideration to the appointment of members of the Task Force on the Maine Learning Technology Endowment so that there may be continuity of policy development.__In the appointment of public members to the advisory board the Governor, the President of the Senate and the Speaker of the House shall give proper consideration to members with experience or special knowledge in one or more of the following areas:__education, business or economic development, technology, finance, library services and postsecondary education.__Proper consideration also must be given to achieving statewide geographical representation, cultural equity and gender equity.__The advisory board consists of 12 voting members as follows:

A.__Eight public members, 4 of whom must be appointed by the Governor, 2 of whom must be appointed by the President of the Senate and 2 of whom must be appointed by the Speaker of the House;

B.__One member who is a member of the state board, appointed by the chair of the state board;

C.__ One member representing public postsecondary education institutions who is employed by a public postsecondary education institution, appointed by the Governor;

D.__One member representing the Maine State Library, appointed by the Director of the Maine State Library; and

E.__One member representing the Public Utilities Commission, appointed by the chair of the Public Utilities Commission.

2.__Chair.__The advisory board shall choose annually one of its members to serve as chair.__The chair may be elected to no more than 3 consecutive terms.

3.__Meetings.__The advisory board shall meet at least 3 times each year.

4.__Quorum.__Each member of the advisory board is entitled to one vote.__A majority of voting members of the advisory board constitutes a quorum for the transaction of any official business.

5.__Terms of members.__Except as provided by the terms of initial appointments in this section, the terms of the members of the advisory board are for 3 years.__Members may be appointed for consecutive terms.__New members must be appointed consistent with subsection 1, paragraphs A to E.__Members representing the state board, public postsecondary education institutions, the Maine State Library and the Public Utilities Commission may serve on the advisory board only as long as they hold office in the respective entity.__Terms of__the initial appointments must be staggered as follows:

A.__Terms expiring January 1, 2004 include one member appointed by the Speaker of the House, one member appointed by the President of the Senate, one member appointed by the Governor and the member representing the Maine State Library;

B.__Terms expiring January 1, 2005 include one member appointed by the Speaker of the House, one member appointed by the President of the Senate, one member appointed by the Governor and the member representing public postsecondary education institutions; and

C.__Terms expiring January 1, 2006 include 2 members appointed by the Governor, the member representing the state board and the member representing the Public Utilities Commission.

6.__Expenses.__Members of the advisory board must be compensated according to the provisions of Title 5, chapter 379.

7.__Appointment.__When a member leaves the advisory board, the appropriate appointing authority shall appoint a new member to serve out the remainder of the term.

8.__Staffing assistance.__The commissioner and the Commissioner of Administrative and Financial Services shall provide appropriate staff support to the advisory board.

§19110.__Powers and duties of advisory board

The powers and duties of the advisory board include the following.

1.__Annual learning technology plan.__The advisory board shall advise the commissioner in developing an annual learning technology plan as described in section 19102, which must provide the basis for the annual allocation of funds by the Legislature from the endowment.

2.__Learning technology standards and measurements.__To measure the effectiveness of the learning technology plan, the advisory board may establish standards and methods of measuring progress in the levels of academic achievement for students who participate in the learning technology plan.__The advisory board may also establish standards and methods of measuring progress in the professional development of teachers who participate in the learning technology programs funded by the learning technology plan, as well as the impact of the learning technology plan on parents and lifelong learners and the economic impact on communities across the State.__The advisory board may assess the impacts of the learning technology plan according to these standards and measurements.

3.__Scope of assessment role.__As part of its assessment role, the advisory board also may consider relevant strategic issues necessary to develop, maintain and support the achievement of the goals of the learning technology plan.__These issues may include, but are not limited to, collaboration with the state board regarding the implications of the learning technology plan for pre-service teacher preparation and for standards-based teacher certification in the State as well as collaboration with other state agencies and state policymakers related to other strategic issues necessary to ensure the most cohesive system possible for planning, action and service in providing kindergarten to grade 12 educational opportunities.

4.__Annual report.__The advisory board shall report annually to the joint standing committee of the Legislature having jurisdiction over education matters and the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs on the general status of the finances and operations of the endowment and the learning technology plan, including the results of the assessments pursuant to subsections 2 and 3.

Sec. 7. Annual learning technology plan. For the 2002-03 school year, notwithstanding the Maine Revised Statutes, Title

20-A, Chapter 801, and for the purposes of presenting the learning technology plan to be developed annually by the Commissioner of Education in consultation with the Advisory Board of the Maine Learning Technology Endowment pursuant to Title 20- A, chapter 801, the following components of the learning technology plan that were recommended by the Task Force on the Maine Learning Technology Endowment may be recommended by the Commissioner of Education and the Advisory Board of the Maine Learning Technology Endowment to be adopted, as appropriate, for implementation in the 2002-03 school year. This annual learning technology plan must include the following elements as described in the Final Report of the Task Force on the Maine Learning Technology Endowment.

1. Goal. The goal of the Maine Learning Technology Endowment is to ensure a necessary level of access to technology, the Internet and training and learning opportunities for all public school students in the 7th and 8th grades and their teachers.

2. Local participation. All school administrative units may participate in the learning technology plan by submitting a letter of intent indicating their willingness to participate. All students educated at public expense are eligible to participate in the program.

3. Phase-in approach. The learning technology plan must begin in school year 2002-03 with a phase-in approach that begins with 7th and 8th grade students in public schools and then, dependent on the availability of funds, encompasses a high school expansion. The initial phase of the recommended program over the first 2 years must target all schools, students and teachers at the 7th and 8th grade levels. Phase I must encompass approximately 242 schools with grade 7 or grade 8, 32,500 students and 2330 teachers. As soon as practicable, based on 3rd-party fundraising or improved revenue and cost projections, the program must expand to all schools, students and teachers in grades 9 to 12. The Commissioner of Education and the advisory board annually shall assess the feasibility and recommended strategy for the expansion of the program to the high school level.

4. Coordination, utilization and expansion of existing technology infrastructure. The learning technology plan requires the utilization of the Maine School and Library Network, the telecommunications education access fund and the federal E-rate program to enable and complement the technology components that are supported by the Maine Learning Technology Endowment. Appropriate policymaking entities shall collaborate to ensure that the overall learning technology infrastructure of the State functions and expands in a coordinated fashion. The Public

Utilities Commission shall enter appropriate orders or take appropriate actions to ensure that capacity is developed and expanded to provide external and internal network connections, technical support and toll-free home network access as recommended in the Final Report of the Task Force on the Maine Learning Technology Endowment.

5. Plan. The learning technology plan must provide for:

A. Portable computing devices for every student and teacher with functional software appropriate to grade level;

B. Obtaining basic research information and databases;

C. An alternative equivalent value factor option to school administrative units if they meet the standards of the learning technology plan;

D. Teacher technology and professional development;

E. External and internal networks and technical support;

F. Costs for replacement of portable computing devices, servers and other equipment; and

G. An evaluation component.

Sec. 8. Fundraising plan. The fundraising plan required by the Maine Revised Statutes, Title 20-A, section 19103 must be part of the learning technology plan submitted to the Second Regular Session of the 120th Legislature in accordance with Title 20-A, section 19102.

SUMMARY

This bill is introduced by the Joint Standing Committee on Education and Cultural Affairs to implement the recommendations of the Task Force on the Maine Learning Technology Endowment as authorized pursuant to Public Law 1999, chapter 731, Part FFF, section 2. The bill amends the governance and investment provisions of current law related to the Maine Learning Technology Endowment by providing for the establishment of the Advisory Board of the Maine Learning Technology Endowment and by clarifying the roles and responsibilities of the Commissioner of Education and the Commissioner of Administrative and Financial Services with respect to the Maine Learning Technology Endowment. The bill also provides a set of guiding principles for the Maine Learning Technology Endowment and provides that the components of the learning technology plan that were recommended

by the task force may be recommended by the Commissioner of Education and the Advisory Board of the Maine Learning Technology Endowment to the Legislature, as appropriate, for implementation of the learning technology plan using proceeds from the endowment beginning in the 2002-03 school year.