53A-2-118.1.   Option for school district creation.
     (1) (a) After conducting a feasibility study, a city with a population of at least 50,000, as determined by the lieutenant governor using the process described in Subsection 67-1a-2(3), may by majority vote of the legislative body, submit for voter approval a measure to create a new school district with boundaries contiguous with that city's boundaries, in accordance with Section 53A-2-118.
     (b) (i) The determination of all matters relating to the scope, adequacy, and other aspects of a feasibility study under Subsection (1)(a) is within the exclusive discretion of the city's legislative body.
     (ii) An inadequacy of a feasibility study under Subsection (1)(a) may not be the basis of a legal action or other challenge to:
     (A) an election for voter approval of the creation of a new school district; or
     (B) the creation of the new school district.
     (2) (a) By majority vote of the legislative body, a city of any class, a town, or a county, may, together with one or more other cities, towns, or the county enter into an interlocal agreement, in accordance with Title 11, Chapter 13, Interlocal Cooperation Act, for the purpose of submitting for voter approval a measure to create a new school district.
     (b) (i) In accordance with Section 53A-2-118, interlocal agreement participants under Subsection (2)(a) may submit a proposal for voter approval if:
     (A) the interlocal agreement participants conduct a feasibility study prior to submitting the proposal to the county;
     (B) the combined population within the proposed new school district boundaries is at least 50,000;
     (C) the new school district boundaries:
     (I) are contiguous;
     (II) do not completely surround or otherwise completely geographically isolate a portion of an existing school district that is not part of the proposed new school district from the remaining part of that existing school district, except as provided in Subsection (2)(d)(iii);
     (III) include the entire boundaries of each participant city or town, except as provided in Subsection (2)(d)(ii); and
     (IV) subject to Subsection (2)(b)(ii), do not cross county lines; and
     (D) the combined population within the proposed new school district of interlocal agreement participants that have entered into an interlocal agreement proposing to create a new school district is at least 80% of the total population of the proposed new school district.
     (ii) The determination of all matters relating to the scope, adequacy, and other aspects of a feasibility study under Subsection (2)(b)(i)(A), including whether to conduct a new feasibility study or revise a previous feasibility study due to a change in the proposed new school district boundaries, is within the exclusive discretion of the legislative bodies of the interlocal agreement participants that enter into an interlocal agreement to submit for voter approval a measure to create a new school district.
     (iii) An inadequacy of a feasibility study under Subsection (2)(b)(i)(A) may not be the basis of a legal action or other challenge to:
     (A) an election for voter approval of the creation of a new school district; or
     (B) the creation of the new school district.
     (iv) For purposes of determining whether the boundaries of a proposed new school

district cross county lines under Subsection (2)(b)(i)(C)(IV):
     (A) a municipality located in more than one county and entirely within the boundaries of a single school district is considered to be entirely within the same county as other participants in an interlocal agreement under Subsection (2)(a) if more of the municipality's land area and population is located in that same county than outside the county; and
     (B) a municipality located in more than one county that participates in an interlocal agreement under Subsection (2)(a) with respect to some but not all of the area within the municipality's boundaries on the basis of the exception stated in Subsection (2)(d)(ii)(B) may not be considered to cross county lines.
     (c) (i) A county may only participate in an interlocal agreement under this Subsection (2) for the unincorporated areas of the county.
     (ii) Boundaries of a new school district created under this section may include:
     (A) a portion of one or more existing school districts; and
     (B) a portion of the unincorporated area of a county, including a portion of a township.
     (d) (i) As used in this Subsection (2)(d):
     (A) "Isolated area" means an area that:
     (I) is entirely within the boundaries of a municipality that, except for that area, is entirely within a school district different than the school district in which the area is located; and
     (II) would, because of the creation of a new school district from the existing district in which the area is located, become completely geographically isolated.
     (B) "Municipality's school district" means the school district that includes all of the municipality in which the isolated area is located except the isolated area.
     (ii) Notwithstanding Subsection (2)(b)(i)(C)(III), a municipality may be a participant in an interlocal agreement under Subsection (2)(a) with respect to some but not all of the area within the municipality's boundaries if:
     (A) the portion of the municipality proposed to be included in the new school district would, if not included, become an isolated area upon the creation of the new school district; or
     (B) (I) the portion of the municipality proposed to be included in the new school district is within the boundaries of the same school district that includes the other interlocal agreement participants; and
     (II) the portion of the municipality proposed to be excluded from the new school district is within the boundaries of a school district other than the school district that includes the other interlocal agreement participants.
     (iii) (A) Notwithstanding Subsection (2)(b)(i)(C)(II), a proposal to create a new school district may be submitted for voter approval pursuant to an interlocal agreement under Subsection (2)(a), even though the new school district boundaries would create an isolated area, if:
     (I) the potential isolated area is contiguous to one or more of the interlocal agreement participants;
     (II) the interlocal participants submit a written request to the municipality in which the potential isolated area is located, requesting the municipality to enter into an interlocal agreement under Subsection (2)(a) that proposes to submit for voter approval a measure to create a new school district that includes the potential isolated area; and
     (III) 90 days after a request under Subsection (2)(d)(iii)(A)(II) is submitted, the municipality has not entered into an interlocal agreement as requested in the request.

     (B) Each municipality receiving a request under Subsection (2)(d)(iii)(A)(II) shall hold one or more public hearings to allow input from the public and affected school districts regarding whether or not the municipality should enter into an interlocal agreement with respect to the potential isolated area.
     (C) (I) This Subsection (2)(d)(iii)(C) applies if:
     (Aa) a new school district is created under this section after a measure is submitted to voters based on the authority of Subsection (2)(d)(iii)(A); and
     (Bb) the creation of the new school district results in an isolated area.
     (II) The isolated area shall, on July 1 of the second calendar year following the creation election date, become part of the municipality's school district.
     (III) Unless the isolated area is the only remaining part of the existing district, the process described in Subsection (4) shall be modified to:
     (Aa) include a third transition team, appointed by the school district board of the municipality's school district, to represent that school district;
     (Bb) require allocation of the existing district's property among the new district, the remaining district, and the municipality's school district;
     (Cc) require each of the three transition teams to appoint one member to the three-member arbitration panel, if an arbitration panel is established; and
     (Dd) require the municipality's school district to bear 1/3 of the costs of arbitration.
     (IV) The existing district shall continue to provide educational services to the isolated area until July 1 of the second calendar year following the creation election date.
     (3) (a) If a proposal under this section is approved by voters:
     (i) (A) subject to Subsection (3)(e):
     (I) each member of the board of the existing district who resides within the boundary of the new school district shall serve as an initial member of the new district board; and
     (II) each member of the board of the existing district who resides within the boundary of the remaining school district shall serve as an initial member of the remaining district board; and
     (B) an election shall be held on the June special election date, as provided in Section 20A-1-204, in the year following the creation election date, to elect:
     (I) all other members to the board of the new school district; and
     (II) all other members to the board of the remaining district;
     (ii) school district property shall be divided between the existing school district and the new school district as provided in Subsection (4);
     (iii) transferred employees shall be treated in accordance with Sections 53A-2-116 and 53A-2-122;
     (iv) (A) an individual residing within the boundaries of a new school district at the time the new school district is created may, for six school years after the creation of the new school district, elect to enroll in a secondary school located outside the boundaries of the new school district if:
     (I) the individual resides within the boundaries of that secondary school as of the day before the new school district is created; and
     (II) the individual would have been eligible to enroll in that secondary school had the new school district not been created; and
     (B) the school district in which the secondary school is located shall provide educational services, including, if provided before the creation of the new school district, busing, to each

individual making an election under Subsection (3)(a)(iv)(A) for each school year for which the individual makes the election; and
     (v) within one year after the new district begins providing educational services, the superintendent of each remaining district affected and the superintendent of the new district shall meet, together with the Superintendent of Public Instruction, to determine if further boundary changes should be proposed in accordance with Section 53A-2-104.
     (b) Each member of a school district board of a new district and remaining district under Subsection (3)(a)(i) shall take office on July 15 immediately following the election under Subsection (3)(a)(i)(B).
     (c) (i) Subject to Subsection (3)(c)(ii), the terms of the initial members of the school district board of the new district and remaining district shall be staggered and adjusted by the county legislative body so that:
     (A) the school district board members' successors are elected at a future regular general election; and
     (B) the terms of their successors coincide with the schedule of terms for school district board members established in Section 20A-14-202.
     (ii) (A) The term of a member under Subsection (3)(a)(i) may not be less than 17 months.
     (B) In order to comply with the requirements of Subsection (3)(c)(i), the term of a member elected to a school district board at an election under Subsection (3)(a)(i)(B) held in an even-numbered year may exceed four years but may not exceed five years.
     (d) (i) The term of each member of the school district board of the existing district terminates on July 1 of the second year after the creation election date, regardless of when the term would otherwise have terminated.
     (ii) Notwithstanding the existence of a board for the new district and a board for the remaining district under Subsection (3)(a)(i), the board of the existing district shall continue, until the time specified in Subsection 53A-2-118(5)(b)(ii)(A), to function and exercise authority as a board to the extent necessary to continue to provide educational services to the entire existing district.
     (iii) A person may simultaneously serve as a member of the board of an existing district and a member of the board of:
     (A) a new district; or
     (B) a remaining district.
     (e) If two or more members of an existing school district board reside within the same local school board district, as established by the county legislative body under Section 20A-14-201, of the new district or remaining district:
     (i) those board members shall stand for election at the same election at which the other board members are elected under Subsection (3)(a)(i)(B); and
     (ii) the board member receiving the highest number of votes is elected to the board of the new district or remaining district, as the case may be, for the local school board district in which the board member resides.
     (4) (a) Within 45 days after the canvass date:
     (i) a transition team to represent the remaining district shall be appointed by the members of the existing district board who reside within the area of the remaining district, in consultation with:
     (A) the legislative bodies of all municipalities in the area of the remaining district; and

     (B) the legislative body of the county in which the remaining district is located, if the remaining district includes one or more unincorporated areas of the county; and
     (ii) another transition team to represent the new district shall be appointed by:
     (A) for a new district located entirely within the boundaries of a single city, the legislative body of that city; or
     (B) for each other new district, the legislative bodies of all interlocal agreement participants.
     (b) The school district board of the existing school district shall, within 60 days after the canvass date:
     (i) prepare an inventory of the existing district's:
     (A) property, both tangible and intangible, real and personal; and
     (B) liabilities; and
     (ii) deliver a copy of the inventory to each of the transition teams.
     (c) (i) (A) The transition teams appointed under Subsection (4)(a) shall, subject to Subsection (4)(c)(iii):
     (I) determine the allocation of the existing district's property and, except for indebtedness under Section 53A-2-121, liabilities between the remaining district and the new district in accordance with Subsection (4)(c)(ii);
     (II) prepare a written report detailing how the existing district's property and, except for indebtedness under Section 53A-2-121, liabilities are to be allocated, including:
     (Aa) a designation of the property that should be transferred to the new district;
     (Bb) a designation of any property that should be shared between the remaining district and the new district; and
     (Cc) a designation of any property that will need to be allocated by arbitration under Subsection (4)(d); and
     (III) deliver a copy of the written report to:
     (Aa) the school district board of the existing district;
     (Bb) the school district board of the remaining district; and
     (Cc) the school district board of the new district.
     (B) The transition teams shall determine the allocation under Subsection (4)(c)(i)(A)(I) and deliver the report required under Subsection (4)(c)(i)(A)(II) before August 1 of the year following the election at which voters approve the creation of a new district, unless that deadline is extended by the mutual agreement of:
     (I) if the agreement is made before July 15 of the year following the creation election date:
     (Aa) the school district board of the existing district; and
     (Bb) (Ii) the legislative body of the city in which the new district is located, for a new district located entirely within a single city; or
     (IIii) the legislative bodies of all interlocal agreement participants, for each other new district; or
     (II) if the agreement is made on or after July 15 of the year following the creation election date:
     (Aa) the school district board of the remaining district; and
     (Bb) the school district board of the new district.
     (ii) Subject to Subsection (4)(c)(iii), all property, assets, and liabilities that the existing

district owns on the allocation date, both tangible and intangible, real and personal, shall be allocated between the remaining district and the new district in a way that is fair and equitable to both the remaining district and the new district, taking into account:
     (A) the relative student populations between the remaining district and new district;
     (B) the relative assessed value of taxable property between the remaining district and the new district;
     (C) the historical amount of property used to deliver educational services to students in the remaining district and the new district;
     (D) any money made available for the use of the new district under Subsection (5);
     (E) the agreed value of school buildings and associated property allocated to the remaining district and the new district under Subsection (4)(c)(iii)(A); and
     (F) any other factors that the transition teams consider relevant in dividing the property in a fair and equitable manner.
     (iii) (A) The transition teams shall allocate each school building and associated property used primarily to provide educational services to local residents and not serving district-wide purposes to the school district that would best serve the existing student population of that school building and associated property.
     (B) Except as provided in Subsection (4)(c)(iii)(A), nothing in this Subsection (4)(c) may be construed to limit the ability of the transition teams to:
     (I) provide that an existing district's property be shared by a remaining district and new district;
     (II) determine, by mutual agreement, that the value of the school buildings and associated property described in Subsection (4)(c)(iii)(A) may be excluded from consideration in the property allocation process under this Subsection (4)(c); or
     (III) provide for any other arrangement with respect to existing district property that is beneficial to and in the best interests of the remaining district and new district.
     (d) (i) Each disagreement between the transition teams about the proper allocation of property between the districts shall be resolved by binding arbitration to a three-member arbitration panel.
     (ii) Each transition team shall, no later than September 1 of the year after the creation election date, appoint one qualified, independent arbitrator to an arbitration panel under this Subsection (4)(d), and those two arbitrators shall, within 15 days after their appointment, appoint a third qualified, independent arbitrator.
     (iii) In the process of resolving a dispute between the transition teams, the arbitration panel may engage the services of one or more professionals to provide technical advice to the panel.
     (iv) The costs of arbitration shall initially be borne entirely by the existing district, but the new district shall reimburse the existing district half of those costs within one year after the new district begins providing educational services.
     (e) Each decision of the transition teams and of the arbitration panel resolving a disagreement between the transition teams is final and binding on the boards of the existing district, remaining district, and new district.
     (f) (i) All costs and expenses of the transition team that represents a remaining district shall be borne by the remaining district.
     (ii) All costs and expenses of the transition team that represents a new district shall

initially be borne by:
     (A) the city whose legislative body appoints the transition team, if the transition team is appointed by the legislative body of a single city; or
     (B) the interlocal agreement participants, if the transition team is appointed by the legislative bodies of interlocal agreement participants.
     (iii) The new district may, to a maximum of $500,000, reimburse the city or interlocal agreement participants for:
     (A) transition team costs and expenses; and
     (B) startup costs and expenses incurred by the city or interlocal agreement participants on behalf of the new district.
     (5) (a) As used in this Subsection (5):
     (i) "New district startup costs" means:
     (A) costs and expenses incurred by a new district in order to prepare to begin providing educational services on July 1 of the second calendar year following the creation election date; and
     (B) the costs and expenses of the transition team that represents the new district.
     (ii) "Remaining district startup costs" means:
     (A) costs and expenses incurred by a remaining district in order to:
     (I) make necessary adjustments to deal with the impacts resulting from the creation of the new district; and
     (II) prepare to provide educational services within the remaining district once the new district begins providing educational services within the new district; and
     (B) the costs and expenses of the transition team that represents the remaining district.
     (b) (i) By July 25 of the year following the creation election date, the existing district shall make half of the undistributed reserve from its General Fund, to a maximum of $9,000,000, available for the use of the remaining district and the new district, as provided in this Subsection (5).
     (ii) The existing district may make additional funds available for the use of the remaining district and the new district beyond the amount specified in Subsection (5)(b)(i) through an interlocal agreement.
     (c) The existing district shall make the money under Subsection (5)(b) available to the remaining district and the new district proportionately based on student population.
     (d) The money made available under Subsection (5)(b) may be accessed and spent by:
     (i) for the remaining district, the school district board of the remaining district; and
     (ii) for the new district, the school district board of the new district.
     (e) (i) The remaining district may use its portion of the money made available under Subsection (5)(b) to pay for remaining district startup costs.
     (ii) The new district may use its portion of the money made available under Subsection (5)(b) to pay for new district startup costs.
     (6) (a) The existing district shall transfer title or, if applicable, partial title of property to the new school district in accordance with the allocation of property by:
     (i) the transition teams, as stated in the report under Subsection (4)(c)(i)(A)(II); and
     (ii) the arbitration panel, if applicable.
     (b) The existing district shall complete each transfer of title or, if applicable, partial title to real property and vehicles by July 1 of the second calendar year following the creation election

date, except as that date is changed by the mutual agreement of:
     (i) the school district board of the existing district;
     (ii) the school district board of the remaining district; and
     (iii) the school district board of the new district.
     (c) The existing district shall complete the transfer of all property not included in Subsection (6)(b) by November 1 of the second calendar year after the creation election date.
     (7) Except as provided in Subsections (5) and (6), after the creation election date an existing school district may not transfer or agree to transfer title to district property without the prior consent of:
     (a) if the transfer or agreement to transfer is before July 15 of the year following the creation election date:
     (i) the legislative body of the city in which the new district is located, for a new district located entirely within a single city; or
     (ii) the legislative bodies of all interlocal agreement participants, for each other new district; or
     (b) if the transfer or agreement to transfer is on or after July 15 of the year following the creation election date but before July 15 of the second calendar year following the creation election date:
     (i) the school district board of the remaining district; and
     (ii) the school district board of the new district.
     (8) This section applies to and governs all actions and proceedings relating to and following the creation of a new district, whether the election under Subsection 53A-2-118(5) on the proposal to create a new school district occurs before or after May 5, 2008, including:
     (a) the election of school district board members; and
     (b) transition team duties and responsibilities, whether the transition team is appointed before or after May 5, 2008.

Amended by Chapter 350, 2009 General Session
Download Code Section Zipped WordPerfect 53A02_011801.ZIP 9,650 Bytes

Sections in this Chapter|Chapters in this Title|All Titles|Legislative Home Page

Last revised: Thursday, May 28, 2009