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H.B. 169

             1     

PROCESS FOR CREATION OF NEW SCHOOL

             2     
DISTRICTS

             3     
2003 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: David N. Cox

             6      This act modifies provisions related to school districts to provide a process for creating
             7      new school districts. The act provides for the transfer of school property to the new
             8      school district, a tax on property within the new school district to pay for the new
             9      district's proportionate share of the existing district's debt, and for the election of new
             10      school board members. The act takes effect July 1, 2003.
             11      This act affects sections of Utah Code Annotated 1953 as follows:
             12      ENACTS:
             13          53A-2-117, Utah Code Annotated 1953
             14          53A-2-118, Utah Code Annotated 1953
             15          53A-2-119, Utah Code Annotated 1953
             16          53A-2-120, Utah Code Annotated 1953
             17          53A-2-121, Utah Code Annotated 1953
             18          53A-2-122, Utah Code Annotated 1953
             19      Be it enacted by the Legislature of the state of Utah:
             20          Section 1. Section 53A-2-117 is enacted to read:
             21          53A-2-117. Definitions.
             22          As used in Sections 53A-2-117 through 53A-2-121 :
             23          (1) "Existing district" means a school district from which a new district is created.
             24          (2) "New district" means a school district created under Section 53A-2-118 .
             25          Section 2. Section 53A-2-118 is enacted to read:
             26          53A-2-118. Creation of new school district by county legislative body -- Initiation
             27      of process -- Procedures to be followed.



             28          (1) A county legislative body may create a new school district from an existing school
             29      district within the geographical boundaries of the county.
             30          (2) (a) The process may be initiated:
             31           h [ (i) at the request of the county legislative body;
             32          (ii)
] (i) h
through a citizens' initiative petition; h OR h
             33           h [ (iii) at the request of the State Board of Education;
             34          (iv) at the request of the Legislature or the governor; or
             35          (v)
] (ii) h
at the request of the board of the existing district or districts to be affected by the
             36      creation of the new district.
             37          (b) A petition submitted under Subsection (2)(a)(ii) must be signed by qualified
             38      electors residing within the geographical boundaries of the proposed new school district equal
             39      in number to at least h [ 25% ] 15% h of the number of electors in the area who voted for the office of
             40      governor at the last regular general election.
             41          (c) The process may only be initiated once h [ for each of the procedures referred to in
             42      Subsection (2)(a)
] h
during any four-year period.
             43          (d) A new district may not be formed if the student population of the proposed new
             44      district is less than h [ 1,000 ] 5,000 h or the existing district's student population would be less than h
             44a      [ 1,000 ] 5,000 h
             45      because of the creation of the new school district.
             45a           h (e) IF A COUNTY LEGISLATIVE BODY RECEIVES A REQUEST OR PETITION TO CREATE A
             45b      NEW DISTRICT ON OR BEFORE DECEMBER 1:
             45c          (i) THE COUNTY LEGISLATIVE BODY SHALL APPOINT AN AD HOC ADVISORY COMMITTEE,
             45d      AS PROVIDED BY SUBSECTION (3), ON OR BEFORE JANUARY 1;
             45e          (ii) THE AD HOC ADVISORY COMMITTEE SHALL SUBMIT ITS REPORT AND
             45f      RECOMMENDATIONS TO THE COUNTY LEGISLATIVE BODY, AS PROVIDED BY SUBSECTION (3), ON
             45g      OR BEFORE JULY 1; AND
             45h          (iii) IF THE COUNTY LEGISLATIVE BODY APPROVES A PROPOSAL TO CREATE A NEW
             45i      DISTRICT, THE PROPOSAL SHALL BE SUBMITTED TO THE COUNTY CLERK TO BE VOTED ON BY
             45j      THE ELECTORS OF THE EXISTING DISTRICT AT THE REGULAR GENERAL OR MUNICIPAL GENERAL
             45k      ELECTION HELD IN NOVEMBER. h
             46          (3) (a) The county legislative body shall appoint an ad hoc advisory committee to
             47      review and make recommendations on a request for the creation of a new school district
             48      submitted under Subsection (2)(a).


             49          (b) The advisory committee shall:
             50          (i) seek input from:


             51          (A) those requesting the creation of the new school district;
             52          (B) the school board and school personnel of the existing school district;
             53          (C) those citizens residing within the geographical boundaries of the existing school
             54      district;
             55          (D) the State Board of Education; and
             56          (E) other interested parties;
             57          (ii) review data and gather information on at least:
             58          (A) the financial viability of the proposed new school district;


             59          (B) the proposal's financial impact on the existing school district;
             60          (C) the exact placement of school district boundaries; and
             61          (D) the positive and negative effects of creating a new school district and whether the
             62      positive effects outweigh the negative if a new school district were to be created; and
             63          (iii) make a report to the county legislative body in a public meeting on the committee's
             64      activities, together with a recommendation on whether to create a new school district.
             65          (4) (a) The county legislative body shall provide for a 45-day public comment period
             66      on the report and recommendation to begin on the day the report is given under Subsection
             67      (3)(b)(iii).
             68          (b) Within 14 days after the end of the comment period, the county legislative body
             69      shall vote on the creation of the proposed new school district.
             70          (c) The proposal is approved if a majority of the members of the county legislative
             71      body votes in favor of the proposal.
             72          (d) If the proposal is approved, the county legislative body shall submit the proposal to
             73      the county clerk to be voted on:
             74          (i) by the electors of the existing school district;
             75          (ii) in accordance with Title 20A, Election Code; and
             76          (iii) at the next regular general election or municipal general election, whichever is
             77      first.
             78          (e) Creation of the new school district shall occur if a majority of the electors within
             78a      h BOTH h
             79      the h [ existing ] PROPOSED h school district h AND THE REMAINING SCHOOL DISTRICT h voting
             79a      on the proposal vote in favor of the creation of the new
             80      district.
             81          (f) (i) The county legislative body shall, within 45 days of the creation of the new
             82      school district, file a written notice of the action with the State Tax Commission.
             83          (ii) The notice shall be accompanied by a map showing the boundaries of the affected
             84      school districts, prepared and certified by a local surveyor.
             84a           h (5) IF A PROPOSAL TO CREATE A NEW DISTRICT IS APPROVED BY THE ELECTORS, THE
             84b      EXISTING DISTRICT'S DOCUMENTED COSTS TO STUDY AND IMPLEMENT THE PROPOSAL SHALL
             84c      BE REIMBURSED BY THE NEW DISTRICT. h
             85          Section 3. Section 53A-2-119 is enacted to read:
             86          53A-2-119. Reapportionment -- Local school board membership.
             87          (1) Upon the creation of a new school district, the county legislative body shall
             88      reapportion the affected school districts pursuant to Section 20A-14-201 .


             89          (2) (a) Except as provided in Subsection (2)(b), school board membership in the


             90      affected school districts shall be determined under Title 20A, Chapter 14, Part 2, Nomination
             91      and Election of Members of Local Boards of Education.
             92          (b) (i) If, as a result of a reapportionment conducted following the creation of a new
             93      school district, a local school board district is created in which no board member whose term
             94      extends beyond reapportionment resides, the first board member for the local school board
             95      district shall be elected at the next regular general election or municipal general election,
             96      whichever occurs first, after the election at which the creation of the new school district is
             97      approved.
             98          (ii) (A) The initial term of office of a board member elected under Subsection (2)(b)(i)
             99      shall be three years, except as provided in Subsection (2)(b)(ii)(B).
             100          (B) If more than one position on a local school board needs to be filled pursuant to
             101      Subsection (2)(b)(i), the initial term of the board members elected shall be staggered. The
             102      county legislative body shall determine by lot which of the reapportioned local school board
             103      districts will elect members to three-year terms and which will elect members to one-year
             104      terms.
             105          Section 4. Section 53A-2-120 is enacted to read:
             106          53A-2-120. Transfer of school property to new school district.
             107           h [ (1) (a) Following the creation of a new school district, the boards of the existing and
             108      new districts shall work together to convey and deliver to the board of the new district all
             109      school property which the new district is entitled to receive.
]

             109a          (1)(a) ON THE JULY 1 FOLLOWING THE SCHOOL BOARD ELECTIONS FOR THE NEW AND
             109b      EXISTING DISTRICTS AS PROVIDED IN SECTION 53A-1-119, THE BOARD OF THE EXISTING
             109c      DISTRICT SHALL CONVEY AND DELIVER TO THE BOARD OF THE NEW DISTRICT ALL SCHOOL
             109d      PROPERTY WHICH THE NEW DISTRICT IS ENTITLED TO RECEIVE. h
             110          (b) Any disagreements as to the disposition of school property shall be resolved by the
             111      county legislative body.
             112          (2) Title vests in the new school board, including all rights, claims, and causes of
             113      action to or for the property, for the use or the income from the property, for conversion,
             114      disposition, or withholding of the property, or for any damage or injury to the property.
             115          (3) The new school board may bring and maintain actions to recover, protect, and
             116      preserve the property and rights of the district's schools and to enforce contracts.
             117          (4) The intangible property of the existing school district shall be prorated between it
             118      and the new district on the same basis used to determine the new district's proportionate share
             119      of the existing district's indebtedness under Section 53A-2-121 .
             120          Section 5. Section 53A-2-121 is enacted to read:



             121          53A-2-121. Indebtedness on property within new school district.
             122          (1) (a) The boards of the existing and new districts shall determine the portion of the
             123      existing district's bonded indebtedness and other indebtedness for which the property within the
             124      new district remains subject to the levy of taxes to pay a proportionate share of the existing
             125      district's outstanding indebtedness.
             126          (b) The proportionate share of the existing district's outstanding indebtedness for which
             127      property within the new district remains subject to the levy of taxes shall be calculated by
             128      determining the proportion that the total assessed valuation of the property within the new
             129      district bears to the total assessed valuation of the existing district in the year immediately
             130      preceding the date the new district was created.
             131          (c) The agreement reflecting the determinations made under this Subsection (1) shall
             132      take effect upon being filed with the county legislative body and the State Board of Education.
             133          (2) The board of the new district shall levy a tax on property within the new district
             134      sufficient to pay the proportionate share of the indebtedness determined under this section, and
             135      shall turn over the proceeds of the tax to the business administrator of the existing district.
             136          (3) The boards of the existing and new districts shall determine by mutual agreement
             137      the disposition of bonds approved but not issued by the existing district before the creation of
             138      the new district based primarily on the representation made to the voters at the time of the bond
             139      election.
             140          Section 6. Section 53A-2-122 is enacted to read:
             141          53A-2-122. Rights of employees transferring to a new district.
             142          An employee of a school district from which a new district is created who becomes an
             143      employee of the new district shall receive the same considerations as are provided to
             144      transferred employees by Section 53A-2-116 h AND SHALL RETAIN THE SAME STATUS AS A
             144a      CAREER OR PROVISIONAL EMPLOYEE WITH ACCRUED SENIORITY h .
             145          Section 7. Effective date.
             146          This act takes effect on July 1, 2003.





Legislative Review Note
    as of 11-12-02 8:43 AM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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