1. The State Planning Office shall develop a competitive process to select 2 groups of municipalities to participate in the pilot project as municipal service districts.

2. The State Planning Office shall convene an advisory board of state government and education officials and interested government and school officials from counties, municipalities and school administrative units. The advisory board shall establish guidelines for the pilot project that, at a minimum:

A. Establish a minimum grouping in each municipal service district of 3 municipalities;

B. Establish the structure of the school administrative unit that would serve each municipal service district;

C. Specify the authority that each municipal service district will have, including, but not limited to:

(1) Setting budgets and tax rates for the municipal service district;

(2) Establishing a joint system of land use planning and regulation consistent with the State's growth management program; and

(3) Administrating education from kindergarten to grade 12;

D. Establish the technical and financial assistance that will be available to assist municipalities in developing a proposal for participation in the pilot project as a municipal service district including the incentives available to assist the participating municipalities in implementing the municipal service district; and

E. Establish the technical and financial assistance that will be available to assist those municipalities that are chosen to participate in the pilot project, including the study and design of the municipal service district and the timelines and legal commitments required of the participating municipalities.