Second Substitute S.B. 71

Senator Carlene M. Walker proposes the following substitute bill:

1 SCHOOL DISTRICT AMENDMENTS
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Carlene M. Walker
5 House Sponsor: Gregory H. Hughes
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to the creation of a new school district.
10 Highlighted Provisions:
11 This bill:
12 . enacts definitions;
13 . lengthens the time in which transition teams must be appointed;
14 . extends the deadline for the existing school district to prepare an inventory of
15 existing school district property;
16 . defines a date at which existing school district property and liabilities are to be
17 determined;
18 . extends the deadline by which the transition teams are to determine the allocation of
19 existing school district property;
20 . requires transition teams to prepare a written report setting forth the property
21 allocation;
22 . modifies the required content of an inventory that an existing district is required to
23 provide;
24 . requires transition teams to consider the value of school buildings and associated
25 property in making the allocation of other existing district property;

26 . requires an existing school district to make money available to the remaining
27 district and the new district, provides for who can access and spend that money, and
28 requires transition teams to consider that money in allocating existing district
29 property;
30 . requires an existing school district to transfer title of property to the new district
31 within a certain time, except upon the mutual agreement of the school district
32 boards;
33 . prohibits an existing school district from transferring title to school district property
34 without the consent of specified boards or bodies; and
35 . makes technical changes.
36 Monies Appropriated in this Bill:
37 None
38 Other Special Clauses:
39 This bill provides an immediate effective date.
40 Utah Code Sections Affected:
41 AMENDS:
42 53A-2-117, as last amended by Laws of Utah 2007, Chapters 215 and 297
43 53A-2-118, as last amended by Laws of Utah 2007, First Special Session, Chapter 1
44 53A-2-118.1, as last amended by Laws of Utah 2007, First Special Session, Chapters 1,
45 2, and 4
46
47 Be it enacted by the Legislature of the state of Utah:
48 Section 1. Section 53A-2-117 is amended to read:
49 53A-2-117. Definitions.
50 As used in Sections 53A-2-117 through 53A-2-121 :
51 (1) "Allocation date" means October 31 immediately before the creation election date.
52 (2) "Canvass date" means the date of the canvass of an election under Subsection
53 53A-2-118 (5) at which voters approve the creation of a new school district under Section
54 53A-2-118.1 .
55 (3) "Creation election date" means the date of the election under Subsection
56 53A-2-118 (5) at which voters approve the creation of a new school district under Section

57 53A-2-118.1 .
58 [(1)] (4) "Existing district" or "existing school district" means a school district from
59 which a new district is created.
60 [(2)] (5) "New district" or "new school district" means a school district created under
61 Section 53A-2-118 or 53A-2-118.1 .
62 [(3)] (6) "Remaining district" or "remaining school district" means an existing district
63 after the creation of a new district.
64 Section 2. Section 53A-2-118 is amended to read:
65 53A-2-118. Creation of new school district -- Initiation of process -- Procedures
66 to be followed.
67 (1) A new school district may be created from one or more existing school districts, as
68 provided in this section.
69 (2) (a) The process to create a new school district may be initiated:
70 (i) through a citizens' initiative petition;
71 (ii) at the request of the board of the existing district or districts to be affected by the
72 creation of the new district; or
73 (iii) at the request of a city within the boundaries of the school district or at the request
74 of interlocal agreement participants, pursuant to Section 53A-2-118.1 .
75 (b) (i) Each petition submitted under Subsection (2)(a)(i) shall be signed by qualified
76 electors residing within the geographical boundaries of the proposed new school district equal
77 in number to at least 15% of the number of electors in the area who voted for the office of
78 governor at the last regular general election.
79 (ii) Each request or petition submitted under Subsection (2)(a) shall:
80 (A) be filed with the clerk of each county in which any part of the proposed new school
81 district is located;
82 (B) indicate the typed or printed name and current residence address of each governing
83 board member making a request, or registered voter signing a petition, as the case may be;
84 (C) describe the proposed new school district boundaries; and
85 (D) designate up to five signers of the petition or request as sponsors, one of whom
86 shall be designated as the contact sponsor, with the mailing address and telephone number of
87 each.

88 (c) A signer of a petition under Subsection (2)(a)(i) may withdraw or, once withdrawn,
89 reinstate the signer's signature at any time before the filing of the petition by filing a written
90 withdrawal or reinstatement with the county clerk.
91 (d) The process under Subsection (2)(a)(i) may only be initiated once during any
92 four-year period.
93 (e) A new district may not be formed pursuant to Subsection (2)(a) if the student
94 population of the proposed new district is less than 3,000 or the existing district's student
95 population would be less than 3,000 because of the creation of the new school district.
96 (f) Within 45 days after the filing of a petition under Subsection (2)(a)(i) or five
97 business days after the filing of a request under Subsection (2)(a)(ii) or (iii), the clerk of each
98 county with which a request or petition is filed shall:
99 (i) determine whether the request or petition complies with Subsections (2)(a), (b), (d),
100 and (e), as applicable; and
101 (ii) (A) if the county clerk determines that the request or petition complies with the
102 applicable requirements:
103 (I) certify the request or petition and deliver the certified request or petition to the
104 county legislative body; and
105 (II) mail or deliver written notification of the certification to the contact sponsor; or
106 (B) if the county clerk determines that the request or petition fails to comply with any
107 of the applicable requirements, reject the request or petition and notify the contact sponsor in
108 writing of the rejection and reasons for the rejection.
109 (g) If the county clerk fails to certify or reject a request or petition within the time
110 specified in Subsection (2)(f), the request or petition shall be considered to be certified.
111 (h) (i) If the county clerk rejects a request or petition, the request or petition may be
112 amended to correct the deficiencies for which it was rejected and then refiled.
113 (ii) Subsection (2)(d) does not apply to a request or petition that is amended and refiled
114 after having been rejected by a county clerk.
115 (i) If a county legislative body receives a request from a school board under Subsection
116 (2)(a)(ii) or a petition under Subsection (2)(a)(i) which is certified by the county clerk on or
117 before December 1:
118 (i) the county legislative body shall appoint an ad hoc advisory committee, as provided

119 by Subsection (3), on or before January 1;
120 (ii) the ad hoc advisory committee shall submit its report and recommendations to the
121 county legislative body, as provided by Subsection (3), on or before July 1; and
122 (iii) if the legislative body of each county with which a request or petition is filed
123 approves a proposal to create a new district, the proposal shall be submitted to the respective
124 county clerk to be voted on by the electors of each existing district at the regular general or
125 municipal general election held in November.
126 (3) (a) The legislative body of each county with which a request or petition is filed
127 shall appoint an ad hoc advisory committee to review and make recommendations on a request
128 for the creation of a new school district submitted under Subsection (2)(a)(i) or (ii).
129 (b) The advisory committee shall:
130 (i) seek input from:
131 (A) those requesting the creation of the new school district;
132 (B) the school board and school personnel of each existing school district;
133 (C) those citizens residing within the geographical boundaries of each existing school
134 district;
135 (D) the State Board of Education; and
136 (E) other interested parties;
137 (ii) review data and gather information on at least:
138 (A) the financial viability of the proposed new school district;
139 (B) the proposal's financial impact on each existing school district;
140 (C) the exact placement of school district boundaries; and
141 (D) the positive and negative effects of creating a new school district and whether the
142 positive effects outweigh the negative if a new school district were to be created; and
143 (iii) make a report to the county legislative body in a public meeting on the committee's
144 activities, together with a recommendation on whether to create a new school district.
145 (4) For a request or petition submitted under Subsection (2)(a)(i) or (2)(a)(ii):
146 (a) The county legislative body shall provide for a 45-day public comment period on
147 the report and recommendation to begin on the day the report is given under Subsection
148 (3)(b)(iii).
149 (b) Within 14 days after the end of the comment period, the legislative body of each

150 county with which a request or petition is filed shall vote on the creation of the proposed new
151 school district.
152 (c) The proposal is approved if a majority of the members of the legislative body of
153 each county with which a request or petition is filed votes in favor of the proposal.
154 (d) If the proposal is approved, the legislative body of each county with which a
155 request or petition is filed shall submit the proposal to the county clerk to be voted on:
156 (i) by the legal voters of each existing school district;
157 (ii) in accordance with the procedures and requirements applicable to a regular general
158 election under Title 20A, Election Code; and
159 (iii) at the next regular general election or municipal general election, whichever is
160 first.
161 (e) Creation of the new school district shall occur if a majority of the electors within
162 both the proposed school district and each remaining school district voting on the proposal vote
163 in favor of the creation of the new district.
164 (f) Each county legislative body shall provide notice of the action as required in Section
165 53A-2-101.5 .
166 (g) If a proposal submitted under Subsection (2)(a)(i) or (ii) to create a new district is
167 approved by the electors, the existing district's documented costs to study and implement the
168 proposal shall be reimbursed by the new district.
169 (5) (a) If a proposal submitted under Subsection (2)(a)(iii) is certified under Subsection
170 (2)(f) or (g), the legislative body of each county in which part of the proposed new school
171 district is located shall submit the proposal to the respective clerk of each county to be voted
172 on:
173 (i) by the legal voters residing within the proposed new school district boundaries;
174 (ii) in accordance with the procedures and requirements applicable to a regular general
175 election under Title 20A, Election Code; and
176 (iii) at the next regular general election or municipal general election, whichever is
177 first.
178 (b) (i) If a majority of the legal voters within the proposed new school district
179 boundaries voting on the proposal at an election under Subsection (5)(a) vote in favor of the
180 creation of the new district:

181 (A) each county legislative body shall, within [30] 60 days after the canvass [of the
182 election] date, file with the lieutenant governor the written notice, with the accompanying map
183 or plat, required under Section 53A-2-101.5 ; and
184 (B) upon the lieutenant governor's issuance of the certificate under Section 67-1a-6.5 ,
185 the new district is created.
186 (ii) Notwithstanding the creation of a new district as provided in Subsection
187 (5)(b)(i)(B):
188 (A) a new school district may not begin to provide educational services to the area
189 within the new district until July 1 of the second calendar year following the creation election
190 [at which voters approve creation of the new school district] date;
191 (B) a remaining district may not begin to provide educational services to the area
192 within the remaining district until the time specified in Subsection (5)(b)(ii)(A); and
193 (C) each existing district shall continue, until the time specified in Subsection
194 (5)(b)(ii)(A), to provide educational services within the entire area covered by the existing
195 district [as though the new district had not been created].
196 Section 3. Section 53A-2-118.1 is amended to read:
197 53A-2-118.1. Option for school district creation.
198 (1) (a) After conducting a feasibility study, a city with a population of at least 50,000,
199 as determined by the lieutenant governor using the process described in Subsection
200 10-2-302 (2), may by majority vote of the legislative body, submit for voter approval a measure
201 to create a new school district with boundaries contiguous with that city's boundaries, in
202 accordance with Section 53A-2-118 .
203 (b) (i) The determination of all matters relating to the scope, adequacy, and other
204 aspects of a feasibility study under Subsection (1)(a) is within the exclusive discretion of the
205 city's legislative body.
206 (ii) An inadequacy of a feasibility study under Subsection (1)(a) may not be the basis of
207 a legal action or other challenge to:
208 (A) an election for voter approval of the creation of a new school district; or
209 (B) the creation of the new school district.
210 (2) (a) By majority vote of the legislative body, a city of any class, a town, or a county,
211 may, together with one or more other cities, towns, or the county enter into an interlocal

212 agreement, in accordance with Title 11, Chapter 13, Interlocal Cooperation Act, for the purpose
213 of submitting for voter approval a measure to create a new school district.
214 (b) (i) In accordance with Section 53A-2-118 , interlocal agreement participants under
215 Subsection (2)(a) may submit a proposal for voter approval if:
216 (A) the interlocal agreement participants conduct a feasibility study prior to submitting
217 the proposal to the county;
218 (B) the combined population within the proposed new school district boundaries
219 [meets the minimum population threshold for a city of the second class] is at least 50,000;
220 (C) the new school district boundaries:
221 (I) are contiguous;
222 (II) do not completely surround or otherwise completely geographically isolate a
223 portion of an existing school district that is not part of the proposed new school district from
224 the remaining part of that existing school district, except as provided in Subsection (2)(d)(iii);
225 (III) include the entire boundaries of each participant city or town, except as provided
226 in Subsection (2)(d)(ii); and
227 (IV) subject to Subsection (2)(b)(ii), do not cross county lines; and
228 (D) the combined population within the proposed new school district of interlocal
229 agreement participants that have entered into an interlocal agreement proposing to create a new
230 school district is at least 80% of the total population of the proposed new school district.
231 (ii) The determination of all matters relating to the scope, adequacy, and other aspects
232 of a feasibility study under Subsection (2)(b)(i)(A), including whether to conduct a new
233 feasibility study or revise a previous feasibility study due to a change in the proposed new
234 school district boundaries, is within the exclusive discretion of the legislative bodies of the
235 interlocal agreement participants that enter into an interlocal agreement to submit for voter
236 approval a measure to create a new school district.
237 (iii) An inadequacy of a feasibility study under Subsection (2)(b)(i)(A) may not be the
238 basis of a legal action or other challenge to:
239 (A) an election for voter approval of the creation of a new school district; or
240 (B) the creation of the new school district.
241 (iv) For purposes of determining whether the boundaries of a proposed new school
242 district cross county lines under Subsection (2)(b)(i)(C)(IV):

243 (A) a municipality located in more than one county and entirely within the boundaries
244 of a single school district is considered to be entirely within the same county as other
245 participants in an interlocal agreement under Subsection (2)(a) if more of the municipality's
246 land area and population is located in that same county than outside the county; and
247 (B) a municipality located in more than one county that participates in an interlocal
248 agreement under Subsection (2)(a) with respect to some but not all of the area within the
249 municipality's boundaries on the basis of the exception stated in Subsection (2)(d)(ii)(B) may
250 not be considered to cross county lines.
251 (c) (i) A county may only participate in an interlocal agreement under this Subsection
252 (2) for the unincorporated areas of the county.
253 (ii) Boundaries of a new school district created under this section may include:
254 (A) a portion of one or more existing school districts; and
255 (B) a portion of the unincorporated area of a county, including a portion of a township.
256 (d) (i) As used in this Subsection (2)(d):
257 (A) "Isolated area" means an area that:
258 (I) is entirely within the boundaries of a municipality that, except for that area, is
259 entirely within a school district different than the school district in which the area is located;
260 and
261 (II) would, because of the creation of a new school district from the existing district in
262 which the area is located, become completely geographically isolated.
263 (B) "Municipality's school district" means the school district that includes all of the
264 municipality in which the isolated area is located except the isolated area.
265 (ii) Notwithstanding Subsection (2)(b)(i)(C)(III), a municipality may be a participant in
266 an interlocal agreement under Subsection (2)(a) with respect to some but not all of the area
267 within the municipality's boundaries if:
268 (A) the portion of the municipality proposed to be included in the new school district
269 would, if not included, become an isolated area upon the creation of the new school district; or
270 (B) (I) the portion of the municipality proposed to be included in the new school
271 district is within the boundaries of the same school district that includes the other interlocal
272 agreement participants; and
273 (II) the portion of the municipality proposed to be excluded from the new school

274 district is within the boundaries of a school district other than the school district that includes
275 the other interlocal agreement participants.
276 (iii) (A) Notwithstanding Subsection (2)(b)(i)(C)(II), a proposal to create a new school
277 district may be submitted for voter approval pursuant to an interlocal agreement under
278 Subsection (2)(a), even though the new school district boundaries would create an isolated
279 area, if:
280 (I) the potential isolated area is contiguous to one or more of the interlocal agreement
281 participants;
282 (II) the interlocal participants submit a written request to the municipality in which the
283 potential isolated area is located, requesting the municipality to enter into an interlocal
284 agreement under Subsection (2)(a) that proposes to submit for voter approval a measure to
285 create a new school district that includes the potential isolated area; and
286 (III) 90 days after a request under Subsection (2)(d)(iii)(A)(II) is submitted, the
287 municipality has not entered into an interlocal agreement as requested in the request.
288 (B) Each municipality receiving a request under Subsection (2)(d)(iii)(A)(II) shall hold
289 one or more public hearings to allow input from the public and affected school districts
290 regarding whether or not the municipality should enter into an interlocal agreement with
291 respect to the potential isolated area.
292 (C) (I) This Subsection (2)(d)(iii)(C) applies if:
293 (Aa) a new school district is created under this section after a measure is submitted to
294 voters based on the authority of Subsection (2)(d)(iii)(A); and
295 (Bb) the creation of the new school district results in an isolated area.
296 (II) The isolated area shall, on July 1 of the second calendar year following the creation
297 election [at which voters approve the creation of a new school district] date, become part of the
298 municipality's school district.
299 (III) Unless the isolated area is the only remaining part of the existing district, the
300 process described in Subsection (4) shall be modified to:
301 (Aa) include a third transition team, appointed by the [local] school district board of
302 the municipality's school district, to represent that school district;
303 (Bb) require allocation of the existing district's property among the new district, the
304 remaining district, and the municipality's school district;

305 (Cc) require each of the three transition teams to appoint one member to the
306 three-member arbitration panel, if an arbitration panel is established; and
307 (Dd) require the municipality's school district to bear 1/3 of the costs of arbitration.
308 (IV) The existing district shall continue to provide educational services to the isolated
309 area until July 1 of the second calendar year following the creation election [at which voters
310 approve the creation of a new school district] date.
311 (3) (a) If a proposal under this section is approved by voters:
312 (i) an election shall be held on the June special election date, as provided in Section
313 20A-1-204 , in the year following the creation election [at which voters approved the creation of
314 a new school district] date, to elect:
315 (A) all members to the board of the new school district; and
316 (B) all members to the board of the remaining district;
317 (ii) school district property shall be divided between the existing school district and the
318 new school district as provided in Subsection (4);
319 (iii) transferred employees shall be treated in accordance with Sections 53A-2-116 and
320 53A-2-122 ;
321 (iv) (A) an individual residing within the boundaries of a new school district at the
322 time the new school district is created may, for six school years after the creation of the new
323 school district, elect to enroll in a secondary school located outside the boundaries of the new
324 school district if:
325 (I) the individual resides within the boundaries of that secondary school as of the day
326 before the new school district is created; and
327 (II) the individual would have been eligible to enroll in that secondary school had the
328 new school district not been created; and
329 (B) the school district in which the secondary school is located shall provide
330 educational services, including, if provided before the creation of the new school district,
331 busing, to each individual making an election under Subsection (3)(a)(iv)(A) for each school
332 year for which the individual makes the election; and
333 (v) within one year after the new district begins providing educational services, the
334 superintendent of each remaining district affected and the superintendent of the new district
335 shall meet, together with the Superintendent of Public Instruction, to determine if further

336 boundary changes should be proposed in accordance with Section 53A-2-104 [or Subsection
337 53A-2-118 (2)].
338 (b) Each member elected to a school district board of a new district and remaining
339 district at an election under Subsection (3)(a)(i) shall take office on July 15 immediately
340 following the election.
341 (c) (i) Subject to Subsection (3)(c)(ii), the terms of the initial members of the school
342 district board of the new district and remaining district who are elected at an election under
343 Subsection (3)(a)(i) shall be staggered and adjusted by the county legislative body so that:
344 (A) the school district board members' successors are elected at a future regular general
345 election; and
346 (B) the terms of their successors coincide with the schedule of terms for school district
347 board members established in Section 20A-14-202 .
348 (ii) (A) The term of a member elected to a school district board at an election under
349 Subsection (3)(a)(i) may not be less than 17 months.
350 (B) In order to comply with the requirements of Subsection (3)(c)(i), the term of a
351 member elected to a school district board at an election under Subsection (3)(a)(i) held in an
352 even-numbered year may exceed four years but may not exceed five years.
353 (d) (i) The term of each member of the school district board of the existing district
354 terminates on July [15] 1 of the second year after the creation election [at which voters approve
355 the creation of a new district] date, regardless of when the term would otherwise have
356 terminated.
357 (ii) Notwithstanding the election of a board for the new district and a board for the
358 remaining district under Subsection (3)(a)(i), the board of the existing district shall continue,
359 until the time specified in Subsection 53A-2-118 (5)(b)(ii)(A), to function and exercise
360 authority as a board to the extent necessary to continue to provide educational services to the
361 entire existing district [as though the new district had not been created].
362 (iii) A person may simultaneously serve as a member of the board of an existing
363 district and a member of the board of:
364 (A) a new district; or
365 (B) a remaining district.
366 (4) (a) Within [30] 45 days after the canvass [of an election at which voters approve the

367 creation of a new school district under this section] date:
368 (i) a transition team to represent the remaining district shall be appointed by the
369 members of the existing district board who reside within the area of the remaining district, in
370 consultation with:
371 (A) the legislative bodies of all municipalities in the area of the remaining district; and
372 (B) the legislative body of the county in which the remaining district is located, if the
373 remaining district includes one or more unincorporated areas of the county; and
374 (ii) another transition team to represent the new district shall be appointed by:
375 (A) for a new district located entirely within the boundaries of a single city, the
376 legislative body of that city; or
377 (B) for each other new district, the legislative bodies of all interlocal agreement
378 participants.
379 (b) The [local] school district board of the existing school district shall[: (i)], within
380 [30] 60 days after the canvass [of an election at which voters approve the creation of a new
381 school district under this section,] date:
382 (i) prepare an inventory of the existing district's [assets and]:
383 (A) property, both tangible and intangible, real and personal; and
384 (B) liabilities; and
385 (ii) [within 45 days after the canvass,] deliver a copy of the inventory to each of the
386 transition teams.
387 (c) (i) (A) The transition teams appointed under Subsection (4)(a) shall, subject to
388 Subsection (4)(c)(iii)[,]:
389 (I) determine the allocation of the existing district's property and, except for
390 indebtedness under Section 53A-2-121 , liabilities between the remaining district and the new
391 district in accordance with Subsection (4)(c)(ii)[.];
392 (II) prepare a written report detailing how the existing district's property and, except for
393 indebtedness under Section 53A-2-121 , liabilities are to be allocated, including:
394 (Aa) a designation of the property that should be transferred to the new district;
395 (Bb) a designation of any property that should be shared between the remaining district
396 and the new district; and
397 (Cc) a designation of any property that will need to be allocated by arbitration under

398 Subsection (4)(d); and
399 (III) deliver a copy of the written report to:
400 (Aa) the school district board of the existing district;
401 (Bb) the school district board of the remaining district; and
402 (Cc) the school district board of the new district.
403 (B) The transition teams shall determine the allocation under Subsection (4)(c)(i)(A)(I)
404 and deliver the report required under Subsection (4)(c)(i)(A)(II) before [July] August 1 of the
405 year following the election at which voters approve the creation of a new district, unless that
406 deadline is extended by the mutual agreement of:
407 (I) if the agreement is made before July 15 of the year following the creation election
408 date:
409 [(I)] (Aa) the school district board of the [remaining] existing district; and
410 [(II) (Aa)] (Bb) (aa) the legislative body of the city in which the new district is located,
411 for a new district located entirely within a single city; or
412 [(Bb)] (bb) the legislative bodies of all interlocal agreement participants, for each other
413 new district[.]; or
414 (II) if the agreement is made on or after July 15 of the year following the creation
415 election date:
416 (Aa) the school district board of the remaining district; and
417 (Bb) the school district board of the new district.
418 (ii) Subject to Subsection (4)(c)(iii), all property [of], assets, and liabilities that the
419 existing district owns on the allocation date, both tangible and intangible, real and personal,
420 shall be allocated between the [existing] remaining district and the new district in a way that is
421 fair and equitable to both the [existing] remaining district and the new district, taking into
422 account:
423 (A) the relative student populations between the [existing] remaining district and new
424 district;
425 (B) the relative assessed value of taxable property between the [existing] remaining
426 district and the new district;
427 (C) the historical amount of property used to deliver educational services to students in
428 the [existing] remaining district and the new district; [and]

429 (D) any money made available for the use of the new district under Subsection (5); and
430 (E) the agreed value of school buildings and associated property allocated to the
431 remaining district and the new district under Subsection (4)(c)(iii)(A); and
432 [(D)] (F) any other factors that the transition teams consider relevant in dividing the
433 property in a fair and equitable manner.
434 (iii) (A) The transition teams shall allocate each school building and associated
435 property used primarily to provide educational services to local residents and not serving
436 district-wide purposes to the school district that would best serve the existing student
437 population of that school building and associated property.
438 (B) Except as provided in Subsection (4)(c)(iii)(A), nothing in this Subsection (4)(c)
439 may be construed to limit the ability of the transition teams to:
440 (I) provide that an existing district's property be shared by a remaining district and new
441 district;
442 (II) determine, by mutual agreement, that the value of the school buildings and
443 associated property described in Subsection (4)(c)(iii)(A) may be excluded from consideration
444 in the [asset] property allocation process under this Subsection (4)(c); or
445 (III) provide for any other arrangement with respect to existing district property that is
446 beneficial to and in the best interests of the remaining district and new district.
447 (d) (i) Each disagreement between the transition teams about the proper allocation of
448 property between the districts shall be resolved by binding arbitration to a three-member
449 arbitration panel.
450 (ii) Each transition team shall, no later than September 1 of the year after the creation
451 election date, appoint one [member] qualified, independent arbitrator to an arbitration panel
452 under this Subsection (4)(d), and those two [members] arbitrators shall, within 15 days after
453 their appointment, appoint a third [member] qualified, independent arbitrator.
454 (iii) In the process of resolving a dispute between the transition teams, the arbitration
455 panel may engage the services of one or more professionals to provide technical advice to the
456 panel.
457 [(iii)] (iv) The costs of arbitration shall initially be borne entirely by the existing
458 district, but the new district shall reimburse the existing district half of those costs within one
459 year after the new district begins providing educational services.

460 (e) Each decision of the transition teams and of the arbitration panel resolving a
461 disagreement between the transition teams is final and binding on the boards of the existing
462 district, remaining district, and new district.
463 (f) (i) All costs and expenses of the transition team that represents a remaining district
464 shall be borne by the remaining district.
465 (ii) All costs and expenses of the transition team that represents a new district:
466 (A) shall[: (A)] initially be borne by:
467 (I) the city whose legislative body appoints the transition team, if the transition team is
468 appointed by the legislative body of a single city; or
469 (II) the interlocal agreement participants, if the transition team is appointed by the
470 legislative bodies of interlocal agreement participants; and
471 (B) may, to a maximum of $500,000, be reimbursed to the city or interlocal agreement
472 participants by the new district [within one year after the new district begins providing
473 educational services].
474 (5) (a) As used in this Subsection (5):
475 (i) "New district startup costs" means:
476 (A) costs and expenses incurred by a new district in order to prepare to begin providing
477 educational services on July 1 of the second calendar year following the creation election date;
478 and
479 (B) the costs and expenses of the transition team that represents the new district.
480 (ii) "Remaining district startup costs" means:
481 (A) costs and expenses incurred by a remaining district in order to:
482 (I) make necessary adjustments to deal with the impacts resulting from the creation of
483 the new district; and
484 (II) prepare to provide educational services within the remaining district once the new
485 district begins providing educational services within the new district; and
486 (B) the costs and expenses of the transition team that represents the remaining district.
487 (b) (i) By July 25 of the year following the creation election date, the existing district
488 shall make half of the undistributed reserve from its General Fund, to a maximum of
489 $9,000,000, available for the use of the remaining district and the new district, as provided in
490 this Subsection (5).

491 (ii) The existing district may make additional funds available for the use of the
492 remaining district and the new district beyond the amount specified in Subsection (5)(b)(i)
493 through an interlocal agreement.
494 (c) The existing district shall make the money under Subsection (5)(b) available to the
495 remaining district and the new district proportionately based on student population.
496 (d) The money made available under Subsection (5)(b) may be accessed and spent by:
497 (i) for the remaining district, the school district board of the remaining district; and
498 (ii) for the new district, the school district board of the new district.
499 (e) (i) The remaining district may use its portion of the money made available under
500 Subsection (5)(b) to pay for remaining district startup costs.
501 (ii) The new district may use its portion of the money made available under Subsection
502 (5)(b) to pay for new district startup costs.
503 (6) (a) The existing district shall transfer title or, if applicable, partial title of property
504 to the new school district in accordance with the allocation of property by:
505 (i) the transition teams, as stated in the report under Subsection (4)(c)(i)(A)(II); and
506 (ii) the arbitration panel, if applicable.
507 (b) The existing district shall complete each transfer of title or, if applicable, partial
508 title to real property and vehicles by July 1 of the second calendar year following the creation
509 election date, except as that date is changed by the mutual agreement of:
510 (i) the school district board of the existing district;
511 (ii) the school district board of the remaining district; and
512 (iii) the school district board of the new district.
513 (c) The existing district shall complete the transfer of all property not included in
514 Subsection (6)(b) by November 1 of the second calendar year after the creation election date.
515 (7) Except as provided in Subsections (5) and (6), after the creation election date an
516 existing school district may not transfer or agree to transfer title to district property without the
517 prior consent of:
518 (a) if the transfer or agreement to transfer is before July 15 of the year following the
519 creation election date:
520 (i) the legislative body of the city in which the new district is located, for a new district
521 located entirely within a single city; or

522 (ii) the legislative bodies of all interlocal agreement participants, for each other new
523 district; or
524 (b) if the transfer or agreement to transfer is on or after July 15 of the year following
525 the creation election date but before July 15 of the second calendar year following the creation
526 election date:
527 (i) the school district board of the remaining district; and
528 (ii) the school district board of the new district.
529 Section 4. Effective date.
530 If approved by two-thirds of all the members elected to each house, this bill takes effect
531 upon approval by the governor, or the day following the constitutional time limit of Utah
532 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
533 the date of veto override.