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First Substitute H.B. 22

Senator Millie M. Peterson proposes to substitute the following bill:


             1     
SCHOOL DISTRICT SIZE

             2     
2000 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: David N. Cox

             5      AN ACT RELATING TO PUBLIC EDUCATION; PROVIDING A MECHANISM FOR THE
             6      CREATION OF A NEW SCHOOL DISTRICT; PROVIDING FOR THE TRANSFER OF
             7      PROPERTY TO AND THE ASSUMPTION OF INDEBTEDNESS BY THE NEW SCHOOL
             8      DISTRICT; AND PROVIDING FOR THE ELECTION OF BOARD MEMBERS.
             9      This act affects sections of Utah Code Annotated 1953 as follows:
             10      ENACTS:
             11          53A-2-102.5, Utah Code Annotated 1953
             12          53A-2-102.7, Utah Code Annotated 1953
             13          53A-2-102.9, Utah Code Annotated 1953
             14      Be it enacted by the Legislature of the state of Utah:
             15          Section 1. Section 53A-2-102.5 is enacted to read:
             16          53A-2-102.5. Creation of new school district -- Resolution by school board members
             17      -- Petition by electors -- Election.
             18          (1) A new school district may be created from an existing school district if:
             19          (a) (i) a majority of the school board members of an existing school district with an
             20      enrollment of at least 50,000 students approve and present to the county legislative body of the
             21      affected county a resolution to divide the district into two new school districts of not less than
             22      20,000 students per district; or
             23          (ii) 10% of the qualified electors from each of the local school board districts within a
             24      school district with an enrollment of at least 50,000 students sign and present a petition to the
             25      county legislative body of the affected county to divide the school district into two new school


             26      districts of not less than 20,000 students per district;
             27          (b) a copy of the petition or resolution is filed with the State Board of Education for review
             28      and assessment by the board, and the findings are published prior to the next general election; and
             29          (c) the resolution or petition is voted on at the next general election, beginning with the
             30      general election held in the year 2002.
             31          (2) The election required under Subsection (1)(c) shall be conducted in accordance with
             32      Title 20A, Election Code.
             33          (3) Creation of a new school district from an existing district shall occur if a majority of
             34      the electors within the existing school district voting on the question favor the creation of a new
             35      district.
             36          (4) The petition or resolution voted on at the election shall include the following
             37      information:
             38          (a) an accurate description of the proposed geographical boundaries of the new school
             39      districts;
             40          (b) the assessed valuation of property within the affected districts; and
             41          (c) the district's current bonded indebtedness.
             42          (5) An election may not be held under this section if the existing school district has unused
             43      voter authorization for bonds.
             44          Section 2. Section 53A-2-102.7 is enacted to read:
             45          53A-2-102.7. Transfer of property to new school district -- Rights and obligations
             46      of new school board -- Outstanding indebtedness.
             47          (1) (a) On July 1 following the approval of the creation of a new school district under
             48      Section 53A-2-102.5 , the local school board of the district from which the new district was created
             49      shall convey and deliver to the school board of the new district all school property which the new
             50      district is entitled to.
             51          (b) Title vests in the new school board, including all rights, claims, and causes of action
             52      to or for the property, for the use or the income from the property, for conversion, disposition, or
             53      withholding of the property, or for any damage or injury to the property.
             54          (c) The new board may bring and maintain actions to recover, protect, and preserve the
             55      property and rights of the district's schools and to enforce contracts.
             56          (d) The new board shall assume and be liable for all outstanding debts and obligations that


             57      attach to the transferred property.
             58          (e) The intangible property of the existing school district shall be prorated between it and
             59      the new district on the same basis used to determine the amount of bonded indebtedness to be
             60      assumed by the new district.
             61          (2) (a) If the existing school district has outstanding bonded indebtedness for the payment
             62      of principal and interest on the indebtedness at the time the new district is established, the
             63      indebtedness shall be prorated between the existing district and the new district in the same
             64      proportion as the assessed valuation of taxable property in the existing district bears to the assessed
             65      valuation of taxable property in the new district.
             66          (b) The valuation shall be determined according to the assessment rolls of the county in
             67      which the existing school district is located as they exist at the time of the establishment of the new
             68      district.
             69          (c) The new district shall levy a tax on the property within the new district for the payment
             70      of its portion of the principal and interest on the indebtedness.
             71          (d) Voter approval of the creation of the new district constitutes an approval of the
             72      assumption of indebtedness under this section.
             73          Section 3. Section 53A-2-102.9 is enacted to read:
             74          53A-2-102.9. School board membership -- Elections -- Terms.
             75          (1) Upon the creation of a new school district under this chapter, the county legislative
             76      body, or municipal legislative body in a city district, shall reapportion the affected school districts
             77      pursuant to Section 20A-14-201 .
             78          (2) (a) Except as otherwise provided in this section, board membership in the affected
             79      school districts is determined under Sections 20A-1-511 , 20A-14-201 , and 20A-14-202 .
             80          (b) If there are less than two school board members who reside in a newly created
             81      five-member school district or less than three school board members who reside in a
             82      seven-member district, then the county legislative body in a five-member district or the municipal
             83      legislative body in a seven-member district shall call a special election for the purpose of electing
             84      additional members to the school board.
             85          (c) (i) Three members of a five-member board and four members of a seven-member board
             86      in the affected districts shall serve initial terms of four years.
             87          (ii) Two members of a five-member board and three members of a seven-member board


             88      in the affected districts shall serve initial terms of two years.
             89          (iii) All subsequent terms are for four years.


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