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First Substitute H.B. 22
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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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