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H.B. 29

             1     

SCHOOL DISTRICT DIVISION AMENDMENTS

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Laura Black

             5     
Senate Sponsor: Howard A. Stephenson

             6     
             7      LONG TITLE
             8      Committee Note:
             9          The Education Interim Committee recommended this bill.
             10      General Description:
             11          This bill modifies procedures for establishing a new school district following voter
             12      approval of the proposal.
             13      Highlighted Provisions:
             14          This bill:
             15          .    requires the election, at the next general election following voter approval of the
             16      proposal to create a new school district, of:
             17              .    the school board members for the existing school district whose terms are
             18      expiring;
             19              .    all members to the school board of the new school district; and
             20              .    all members to the school board of the remaining school district;
             21          .    modifies the effective date for the new school district;
             22          .    modifies certain provisions relating to the allocation of school district property; and
             23          .    makes technical corrections.
             24      Monies Appropriated in this Bill:
             25          None
             26      Other Special Clauses:
             27          None


             28      Utah Code Sections Affected:
             29      AMENDS:
             30          53A-2-118, as last amended by Laws of Utah 2009, Chapter 350
             31          53A-2-118.1, as last amended by Laws of Utah 2009, Chapter 350
             32          53A-2-119, as last amended by Laws of Utah 2007, Chapter 215
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 53A-2-118 is amended to read:
             36           53A-2-118. Creation of new school district -- Initiation of process -- Procedures
             37      to be followed.
             38          (1) A new school district may be created from one or more existing school districts, as
             39      provided in this section.
             40          (2) (a) The process to create a new school district may be initiated:
             41          (i) through a citizens' initiative petition;
             42          (ii) at the request of the board of the existing district or districts to be affected by the
             43      creation of the new district; or
             44          (iii) at the request of a city within the boundaries of the school district or at the request
             45      of interlocal agreement participants, pursuant to Section 53A-2-118.1 .
             46          (b) (i) Each petition submitted under Subsection (2)(a)(i) shall be signed by qualified
             47      electors residing within the geographical boundaries of the proposed new school district equal
             48      in number to at least 15% of the number of electors in the area who voted for the office of
             49      governor at the last regular general election.
             50          (ii) Each request or petition submitted under Subsection (2)(a) shall:
             51          (A) be filed with the clerk of each county in which any part of the proposed new school
             52      district is located;
             53          (B) indicate the typed or printed name and current residence address of each governing
             54      board member making a request, or registered voter signing a petition, as the case may be;
             55          (C) describe the proposed new school district boundaries; and
             56          (D) designate up to five signers of the petition or request as sponsors, one of whom
             57      shall be designated as the contact sponsor, with the mailing address and telephone number of
             58      each.


             59          (c) A signer of a petition under Subsection (2)(a)(i) may withdraw or, once withdrawn,
             60      reinstate the signer's signature at any time before the filing of the petition by filing a written
             61      withdrawal or reinstatement with the county clerk.
             62          (d) The process under Subsection (2)(a)(i) may only be initiated once during any
             63      four-year period.
             64          (e) A new district may not be formed pursuant to Subsection (2)(a) if the student
             65      population of the proposed new district is less than 3,000 or the existing district's student
             66      population would be less than 3,000 because of the creation of the new school district.
             67          (f) Within 45 days after the filing of a petition under Subsection (2)(a)(i) or five
             68      business days after the filing of a request under Subsection (2)(a)(ii) or (iii), the clerk of each
             69      county with which a request or petition is filed shall:
             70          (i) determine whether the request or petition complies with Subsections (2)(a), (b), (d),
             71      and (e), as applicable; and
             72          (ii) (A) if the county clerk determines that the request or petition complies with the
             73      applicable requirements:
             74          (I) certify the request or petition and deliver the certified request or petition to the
             75      county legislative body; and
             76          (II) mail or deliver written notification of the certification to the contact sponsor; or
             77          (B) if the county clerk determines that the request or petition fails to comply with any
             78      of the applicable requirements, reject the request or petition and notify the contact sponsor in
             79      writing of the rejection and reasons for the rejection.
             80          (g) If the county clerk fails to certify or reject a request or petition within the time
             81      specified in Subsection (2)(f), the request or petition shall be considered to be certified.
             82          (h) (i) If the county clerk rejects a request or petition, the request or petition may be
             83      amended to correct the deficiencies for which it was rejected and then refiled.
             84          (ii) Subsection (2)(d) does not apply to a request or petition that is amended and refiled
             85      after having been rejected by a county clerk.
             86          (i) If a county legislative body receives a request from a school board under Subsection
             87      (2)(a)(ii) or a petition under Subsection (2)(a)(i) which is certified by the county clerk on or
             88      before December 1:
             89          (i) the county legislative body shall appoint an ad hoc advisory committee, as provided


             90      by Subsection (3), on or before January 1;
             91          (ii) the ad hoc advisory committee shall submit its report and recommendations to the
             92      county legislative body, as provided by Subsection (3), on or before July 1; and
             93          (iii) if the legislative body of each county with which a request or petition is filed
             94      approves a proposal to create a new district, the proposal shall be submitted to the respective
             95      county clerk to be voted on by the electors of each existing district at the regular general or
             96      municipal general election held in November.
             97          (3) (a) The legislative body of each county with which a request or petition is filed
             98      shall appoint an ad hoc advisory committee to review and make recommendations on a request
             99      for the creation of a new school district submitted under Subsection (2)(a)(i) or (ii).
             100          (b) The advisory committee shall:
             101          (i) seek input from:
             102          (A) those requesting the creation of the new school district;
             103          (B) the school board and school personnel of each existing school district;
             104          (C) those citizens residing within the geographical boundaries of each existing school
             105      district;
             106          (D) the State Board of Education; and
             107          (E) other interested parties;
             108          (ii) review data and gather information on at least:
             109          (A) the financial viability of the proposed new school district;
             110          (B) the proposal's financial impact on each existing school district;
             111          (C) the exact placement of school district boundaries; and
             112          (D) the positive and negative effects of creating a new school district and whether the
             113      positive effects outweigh the negative if a new school district were to be created; and
             114          (iii) make a report to the county legislative body in a public meeting on the committee's
             115      activities, together with a recommendation on whether to create a new school district.
             116          (4) For a request or petition submitted under Subsection (2)(a)(i) or (2)(a)(ii):
             117          (a) The county legislative body shall provide for a 45-day public comment period on
             118      the report and recommendation to begin on the day the report is given under Subsection
             119      (3)(b)(iii).
             120          (b) Within 14 days after the end of the comment period, the legislative body of each


             121      county with which a request or petition is filed shall vote on the creation of the proposed new
             122      school district.
             123          (c) The proposal is approved if a majority of the members of the legislative body of
             124      each county with which a request or petition is filed votes in favor of the proposal.
             125          (d) If the proposal is approved, the legislative body of each county with which a
             126      request or petition is filed shall submit the proposal to the county clerk to be voted on:
             127          (i) by the legal voters of each existing school district;
             128          (ii) in accordance with the procedures and requirements applicable to a regular general
             129      election under Title 20A, Election Code; and
             130          (iii) at the next regular general election or municipal general election, whichever is
             131      first.
             132          (e) Creation of the new school district shall occur if a majority of the electors within
             133      both the proposed school district and each remaining school district voting on the proposal vote
             134      in favor of the creation of the new district.
             135          (f) Each county legislative body shall comply with the requirements of Section
             136      53A-2-101.5 .
             137          (g) If a proposal submitted under Subsection (2)(a)(i) or (ii) to create a new district is
             138      approved by the electors, the existing district's documented costs to study and implement the
             139      proposal shall be reimbursed by the new district.
             140          (5) (a) If a proposal submitted under Subsection (2)(a)(iii) is certified under Subsection
             141      (2)(f) or (g), the legislative body of each county in which part of the proposed new school
             142      district is located shall submit the proposal to the respective clerk of each county to be voted
             143      on:
             144          (i) by the legal voters residing within the proposed new school district boundaries;
             145          (ii) in accordance with the procedures and requirements applicable to a regular general
             146      election under Title 20A, Election Code; and
             147          (iii) at the next regular general election or municipal general election, whichever is
             148      first.
             149          (b) (i) If a majority of the legal voters within the proposed new school district
             150      boundaries voting on the proposal at an election under Subsection (5)(a) vote in favor of the
             151      creation of the new district:


             152          (A) each county legislative body shall comply with the requirements of Section
             153      53A-2-101.5 ; and
             154          (B) upon the lieutenant governor's issuance of the certificate under Section 67-1a-6.5 ,
             155      the new district is created.
             156          (ii) Notwithstanding the creation of a new district as provided in Subsection
             157      (5)(b)(i)(B):
             158          (A) a new school district may not begin to provide educational services to the area
             159      within the new district until July 1 of the second calendar year following the [creation] school
             160      board general election date described in Subsection 53A-2-118.1 (3)(a)(i);
             161          (B) a remaining district may not begin to provide educational services to the area
             162      within the remaining district until the time specified in Subsection (5)(b)(ii)(A); and
             163          (C) each existing district shall continue, until the time specified in Subsection
             164      (5)(b)(ii)(A), to provide educational services within the entire area covered by the existing
             165      district.
             166          Section 2. Section 53A-2-118.1 is amended to read:
             167           53A-2-118.1. Option for school district creation.
             168          (1) (a) After conducting a feasibility study, a city with a population of at least 50,000,
             169      as determined by the lieutenant governor using the process described in Subsection 67-1a-2 (3),
             170      may by majority vote of the legislative body, submit for voter approval a measure to create a
             171      new school district with boundaries contiguous with that city's boundaries, in accordance with
             172      Section 53A-2-118 .
             173          (b) (i) The determination of all matters relating to the scope, adequacy, and other
             174      aspects of a feasibility study under Subsection (1)(a) is within the exclusive discretion of the
             175      city's legislative body.
             176          (ii) An inadequacy of a feasibility study under Subsection (1)(a) may not be the basis of
             177      a legal action or other challenge to:
             178          (A) an election for voter approval of the creation of a new school district; or
             179          (B) the creation of the new school district.
             180          (2) (a) By majority vote of the legislative body, a city of any class, a town, or a county,
             181      may, together with one or more other cities, towns, or the county enter into an interlocal
             182      agreement, in accordance with Title 11, Chapter 13, Interlocal Cooperation Act, for the purpose


             183      of submitting for voter approval a measure to create a new school district.
             184          (b) (i) In accordance with Section 53A-2-118 , interlocal agreement participants under
             185      Subsection (2)(a) may submit a proposal for voter approval if:
             186          (A) the interlocal agreement participants conduct a feasibility study prior to submitting
             187      the proposal to the county;
             188          (B) the combined population within the proposed new school district boundaries is at
             189      least 50,000;
             190          (C) the new school district boundaries:
             191          (I) are contiguous;
             192          (II) do not completely surround or otherwise completely geographically isolate a
             193      portion of an existing school district that is not part of the proposed new school district from
             194      the remaining part of that existing school district, except as provided in Subsection (2)(d)(iii);
             195          (III) include the entire boundaries of each participant city or town, except as provided
             196      in Subsection (2)(d)(ii); and
             197          (IV) subject to Subsection (2)(b)(ii), do not cross county lines; and
             198          (D) the combined population within the proposed new school district of interlocal
             199      agreement participants that have entered into an interlocal agreement proposing to create a new
             200      school district is at least 80% of the total population of the proposed new school district.
             201          (ii) The determination of all matters relating to the scope, adequacy, and other aspects
             202      of a feasibility study under Subsection (2)(b)(i)(A), including whether to conduct a new
             203      feasibility study or revise a previous feasibility study due to a change in the proposed new
             204      school district boundaries, is within the exclusive discretion of the legislative bodies of the
             205      interlocal agreement participants that enter into an interlocal agreement to submit for voter
             206      approval a measure to create a new school district.
             207          (iii) An inadequacy of a feasibility study under Subsection (2)(b)(i)(A) may not be the
             208      basis of a legal action or other challenge to:
             209          (A) an election for voter approval of the creation of a new school district; or
             210          (B) the creation of the new school district.
             211          (iv) For purposes of determining whether the boundaries of a proposed new school
             212      district cross county lines under Subsection (2)(b)(i)(C)(IV):
             213          (A) a municipality located in more than one county and entirely within the boundaries


             214      of a single school district is considered to be entirely within the same county as other
             215      participants in an interlocal agreement under Subsection (2)(a) if more of the municipality's
             216      land area and population is located in that same county than outside the county; and
             217          (B) a municipality located in more than one county that participates in an interlocal
             218      agreement under Subsection (2)(a) with respect to some but not all of the area within the
             219      municipality's boundaries on the basis of the exception stated in Subsection (2)(d)(ii)(B) may
             220      not be considered to cross county lines.
             221          (c) (i) A county may only participate in an interlocal agreement under this Subsection
             222      (2) for the unincorporated areas of the county.
             223          (ii) Boundaries of a new school district created under this section may include:
             224          (A) a portion of one or more existing school districts; and
             225          (B) a portion of the unincorporated area of a county, including a portion of a township.
             226          (d) (i) As used in this Subsection (2)(d):
             227          (A) "Isolated area" means an area that:
             228          (I) is entirely within the boundaries of a municipality that, except for that area, is
             229      entirely within a school district different than the school district in which the area is located;
             230      and
             231          (II) would, because of the creation of a new school district from the existing district in
             232      which the area is located, become completely geographically isolated.
             233          (B) "Municipality's school district" means the school district that includes all of the
             234      municipality in which the isolated area is located except the isolated area.
             235          (ii) Notwithstanding Subsection (2)(b)(i)(C)(III), a municipality may be a participant in
             236      an interlocal agreement under Subsection (2)(a) with respect to some but not all of the area
             237      within the municipality's boundaries if:
             238          (A) the portion of the municipality proposed to be included in the new school district
             239      would, if not included, become an isolated area upon the creation of the new school district; or
             240          (B) (I) the portion of the municipality proposed to be included in the new school
             241      district is within the boundaries of the same school district that includes the other interlocal
             242      agreement participants; and
             243          (II) the portion of the municipality proposed to be excluded from the new school
             244      district is within the boundaries of a school district other than the school district that includes


             245      the other interlocal agreement participants.
             246          (iii) (A) Notwithstanding Subsection (2)(b)(i)(C)(II), a proposal to create a new school
             247      district may be submitted for voter approval pursuant to an interlocal agreement under
             248      Subsection (2)(a), even though the new school district boundaries would create an isolated
             249      area, if:
             250          (I) the potential isolated area is contiguous to one or more of the interlocal agreement
             251      participants;
             252          (II) the interlocal participants submit a written request to the municipality in which the
             253      potential isolated area is located, requesting the municipality to enter into an interlocal
             254      agreement under Subsection (2)(a) that proposes to submit for voter approval a measure to
             255      create a new school district that includes the potential isolated area; and
             256          (III) 90 days after a request under Subsection (2)(d)(iii)(A)(II) is submitted, the
             257      municipality has not entered into an interlocal agreement as requested in the request.
             258          (B) Each municipality receiving a request under Subsection (2)(d)(iii)(A)(II) shall hold
             259      one or more public hearings to allow input from the public and affected school districts
             260      regarding whether or not the municipality should enter into an interlocal agreement with
             261      respect to the potential isolated area.
             262          (C) (I) This Subsection (2)(d)(iii)(C) applies if:
             263          (Aa) a new school district is created under this section after a measure is submitted to
             264      voters based on the authority of Subsection (2)(d)(iii)(A); and
             265          (Bb) the creation of the new school district results in an isolated area.
             266          (II) The isolated area shall, on July 1 of the second calendar year following the
             267      [creation] school board general election date described in Subsection (3)(a)(i), become part of
             268      the municipality's school district.
             269          (III) Unless the isolated area is the only remaining part of the existing district, the
             270      process described in Subsection (4) shall be modified to:
             271          (Aa) include a third transition team, appointed by the school district board of the
             272      municipality's school district, to represent that school district;
             273          (Bb) require allocation of the existing district's property among the new district, the
             274      remaining district, and the municipality's school district;
             275          (Cc) require each of the three transition teams to appoint one member to the


             276      three-member arbitration panel, if an arbitration panel is established; and
             277          (Dd) require the municipality's school district to bear 1/3 of the costs of arbitration.
             278          (IV) The existing district shall continue to provide educational services to the isolated
             279      area until July 1 of the second calendar year following the [creation] school board general
             280      election date described in Subsection (3)(a)(i).
             281          (3) (a) If a proposal under this section is approved by voters:
             282          [(i) (A) subject to Subsection (3)(e):]
             283          [(I) each member of the board of the existing district who resides within the boundary
             284      of the new school district shall serve as an initial member of the new district board; and]
             285          [(II) each member of the board of the existing district who resides within the boundary
             286      of the remaining school district shall serve as an initial member of the remaining district board;
             287      and]
             288          [(B)] (i) an election shall be held [on the June special election date, as provided in
             289      Section 20A-1-204 , in the year following the creation election date,] at the next regular general
             290      election to elect:
             291          (A) members to the board of the existing school district whose terms are expiring;
             292          [(I) all other] (B) all members to the board of the new school district; and
             293          [(II) all other] (C) all members to the board of the remaining district;
             294          (ii) school district property shall be divided between the existing school district and the
             295      new school district as provided in Subsection (4);
             296          (iii) transferred employees shall be treated in accordance with Sections 53A-2-116 and
             297      53A-2-122 ;
             298          (iv) (A) an individual residing within the boundaries of a new school district at the
             299      time the new school district is created may, for six school years after the creation of the new
             300      school district, elect to enroll in a secondary school located outside the boundaries of the new
             301      school district if:
             302          (I) the individual resides within the boundaries of that secondary school as of the day
             303      before the new school district is created; and
             304          (II) the individual would have been eligible to enroll in that secondary school had the
             305      new school district not been created; and
             306          (B) the school district in which the secondary school is located shall provide


             307      educational services, including, if provided before the creation of the new school district,
             308      busing, to each individual making an election under Subsection (3)(a)(iv)(A) for each school
             309      year for which the individual makes the election; and
             310          (v) within one year after the new district begins providing educational services, the
             311      superintendent of each remaining district affected and the superintendent of the new district
             312      shall meet, together with the Superintendent of Public Instruction, to determine if further
             313      boundary changes should be proposed in accordance with Section 53A-2-104 .
             314          [(b) Each member of a school district board of a new district and remaining district
             315      under Subsection (3)(a)(i) shall take office on July 15 immediately following the election under
             316      Subsection (3)(a)(i)(B).]
             317          [(c)] (b) (i) [Subject to Subsection (3)(c)(ii), the] The terms of the initial members of
             318      the school district board of the new district and remaining district shall be staggered and
             319      adjusted by the county legislative body so that[:] approximately half of the board is elected
             320      every two years.
             321          [(A) the school district board members' successors are elected at a future regular
             322      general election; and]
             323          [(B) the terms of their successors coincide with the schedule of terms for school district
             324      board members established in Section 20A-14-202 .]
             325          (ii) [(A)] The term of a member of the existing school board, including a member
             326      elected under Subsection (3)(a)(i)(A), [may not be less than 17 months. (B) In order to comply
             327      with the requirements of Subsection (3)(c)(i), the term of a member elected to a school district
             328      board at an election under Subsection (3)(a)(i)(B) held in an even-numbered year may exceed
             329      four years but may not exceed five years. (d) (i) The term of each member of the school district
             330      board of the existing district] terminates on July 1 of the second year after the [creation] school
             331      board general election date described in Subsection (3)(a)(i), regardless of when the term
             332      would otherwise have terminated.
             333          [(ii)] (iii) Notwithstanding the existence of a board for the new district and a board for
             334      the remaining district under Subsection (3)(a)(i), the board of the existing district shall
             335      continue, until the time specified in Subsection 53A-2-118 (5)(b)(ii)(A), to function and
             336      exercise authority as a board to the extent necessary to continue to provide educational services
             337      to the entire existing district.


             338          [(iii)] (iv) A person may simultaneously serve as or be elected to be a member of the
             339      board of an existing district and a member of the board of:
             340          (A) a new district; or
             341          (B) a remaining district.
             342          [(e) If two or more members of an existing school district board reside within the same
             343      local school board district, as established by the county legislative body under Section
             344      20A-14-201 , of the new district or remaining district:]
             345          [(i) those board members shall stand for election at the same election at which the other
             346      board members are elected under Subsection (3)(a)(i)(B); and]
             347          [(ii) the board member receiving the highest number of votes is elected to the board of
             348      the new district or remaining district, as the case may be, for the local school board district in
             349      which the board member resides.]
             350          (4) (a) Within 45 days after the canvass date for the election at which voters approve
             351      the creation of a new district:
             352          (i) a transition team to represent the remaining district shall be appointed by the
             353      members of the existing district board who reside within the area of the remaining district, in
             354      consultation with:
             355          (A) the legislative bodies of all municipalities in the area of the remaining district; and
             356          (B) the legislative body of the county in which the remaining district is located, if the
             357      remaining district includes one or more unincorporated areas of the county; and
             358          (ii) another transition team to represent the new district shall be appointed by:
             359          (A) for a new district located entirely within the boundaries of a single city, the
             360      legislative body of that city; or
             361          (B) for each other new district, the legislative bodies of all interlocal agreement
             362      participants.
             363          (b) The school district board of the existing school district shall, within 60 days after
             364      the canvass date for the election at which voters approve the creation of a new district:
             365          (i) prepare an inventory of the existing district's:
             366          (A) property, both tangible and intangible, real and personal; and
             367          (B) liabilities; and
             368          (ii) deliver a copy of the inventory to each of the transition teams.


             369          (c) (i) (A) The transition teams appointed under Subsection (4)(a) shall, subject to
             370      Subsection (4)(c)(iii):
             371          (I) determine the allocation of the existing district's property and, except for
             372      indebtedness under Section 53A-2-121 , liabilities between the remaining district and the new
             373      district in accordance with Subsection (4)(c)(ii);
             374          (II) prepare a written report detailing how the existing district's property and, except for
             375      indebtedness under Section 53A-2-121 , liabilities are to be allocated, including:
             376          (Aa) a designation of the property that should be transferred to the new district;
             377          (Bb) a designation of any property that should be shared between the remaining district
             378      and the new district; and
             379          (Cc) a designation of any property that will need to be allocated by arbitration under
             380      Subsection (4)(d); and
             381          (III) deliver a copy of the written report to:
             382          (Aa) the school district board of the existing district;
             383          (Bb) the school district board of the remaining district; and
             384          (Cc) the school district board of the new district.
             385          (B) The transition teams shall determine the allocation under Subsection (4)(c)(i)(A)(I)
             386      and deliver the report required under Subsection (4)(c)(i)(A)(II) before August 1 of the year
             387      following the election at which voters approve the creation of a new district, unless that
             388      deadline is extended by the mutual agreement of:
             389          [(I) if the agreement is made before July 15 of the year following the creation election
             390      date:]
             391          [(Aa)] (I) the school district board of the existing district; and
             392          [(Bb) (Ii)] (II) (Aa) the legislative body of the city in which the new district is located,
             393      for a new district located entirely within a single city; or
             394          [(IIii)] (Bb) the legislative bodies of all interlocal agreement participants, for each other
             395      new district[; or].
             396          [(II) if the agreement is made on or after July 15 of the year following the creation
             397      election date:]
             398          [(Aa) the school district board of the remaining district; and]
             399          [(Bb) the school district board of the new district.]


             400          (ii) Subject to Subsection (4)(c)(iii), all property, assets, and liabilities that the existing
             401      district owns on the allocation date, both tangible and intangible, real and personal, shall be
             402      allocated between the remaining district and the new district in a way that is fair and equitable
             403      to both the remaining district and the new district, taking into account:
             404          (A) the relative student populations between the remaining district and new district;
             405          (B) the relative assessed value of taxable property between the remaining district and
             406      the new district;
             407          (C) the historical amount of property used to deliver educational services to students in
             408      the remaining district and the new district;
             409          (D) any money made available for the use of the new district under Subsection (5); and
             410          [(E) the agreed value of school buildings and associated property allocated to the
             411      remaining district and the new district under Subsection (4)(c)(iii)(A); and]
             412          [(F)] (E) any other factors that the transition teams consider relevant in dividing the
             413      property in a fair and equitable manner.
             414          (iii) (A) The transition teams shall allocate each school building and associated
             415      property used primarily to provide educational services to local residents and not serving
             416      district-wide purposes to the school district that would best serve the existing student
             417      population of that school building and associated property.
             418          (B) Except as provided in Subsection (4)(c)(iii)(A), nothing in this Subsection (4)(c)
             419      may be construed to limit the ability of the transition teams to:
             420          (I) provide that an existing district's property be shared by a remaining district and new
             421      district;
             422          (II) determine, by mutual agreement, that the value of the school buildings and
             423      associated property described in Subsection (4)(c)(iii)(A) may be excluded from consideration
             424      in the property allocation process under this Subsection (4)(c); or
             425          (III) provide for any other arrangement with respect to existing district property that is
             426      beneficial to and in the best interests of the remaining district and new district.
             427          (d) (i) Each disagreement between the transition teams about the proper allocation of
             428      property between the districts shall be resolved by binding arbitration to a three-member
             429      arbitration panel.
             430          (ii) Each transition team shall, no later than September 1 of the year after the creation


             431      election date, appoint one qualified, independent arbitrator to an arbitration panel under this
             432      Subsection (4)(d), and those two arbitrators shall, within 15 days after their appointment,
             433      appoint a third qualified, independent arbitrator.
             434          (iii) In the process of resolving a dispute between the transition teams, the arbitration
             435      panel may engage the services of one or more professionals to provide technical advice to the
             436      panel.
             437          (iv) The costs of arbitration shall initially be borne entirely by the existing district, but
             438      the new district shall reimburse the existing district half of those costs within one year after the
             439      new district begins providing educational services.
             440          (e) Each decision of the transition teams and of the arbitration panel resolving a
             441      disagreement between the transition teams is final and binding on the boards of the existing
             442      district, remaining district, and new district.
             443          (f) (i) All costs and expenses of the transition team that represents a remaining district
             444      shall be borne by the remaining district.
             445          (ii) All costs and expenses of the transition team that represents a new district shall
             446      initially be borne by:
             447          (A) the city whose legislative body appoints the transition team, if the transition team
             448      is appointed by the legislative body of a single city; or
             449          (B) the interlocal agreement participants, if the transition team is appointed by the
             450      legislative bodies of interlocal agreement participants.
             451          (iii) The new district may, to a maximum of $500,000, reimburse the city or interlocal
             452      agreement participants for:
             453          (A) transition team costs and expenses; and
             454          (B) startup costs and expenses incurred by the city or interlocal agreement participants
             455      on behalf of the new district.
             456          (5) (a) As used in this Subsection (5):
             457          (i) "New district startup costs" means:
             458          (A) costs and expenses incurred by a new district in order to prepare to begin providing
             459      educational services on July 1 of the second calendar year following the [creation] school board
             460      general election date described in Subsection (3)(a)(i); and
             461          (B) the costs and expenses of the transition team that represents the new district.


             462          (ii) "Remaining district startup costs" means:
             463          (A) costs and expenses incurred by a remaining district in order to:
             464          (I) make necessary adjustments to deal with the impacts resulting from the creation of
             465      the new district; and
             466          (II) prepare to provide educational services within the remaining district once the new
             467      district begins providing educational services within the new district; and
             468          (B) the costs and expenses of the transition team that represents the remaining district.
             469          (b) (i) By [July 25] January 1 of the year following the [creation] school board general
             470      election date described in Subsection (3)(a)(i), the existing district shall make half of the
             471      undistributed reserve from its General Fund, to a maximum of $9,000,000, available for the use
             472      of the remaining district and the new district, as provided in this Subsection (5).
             473          (ii) The existing district may make additional funds available for the use of the
             474      remaining district and the new district beyond the amount specified in Subsection (5)(b)(i)
             475      through an interlocal agreement.
             476          (c) The existing district shall make the money under Subsection (5)(b) available to the
             477      remaining district and the new district proportionately based on student population.
             478          (d) The money made available under Subsection (5)(b) may be accessed and spent by:
             479          (i) for the remaining district, the school district board of the remaining district; and
             480          (ii) for the new district, the school district board of the new district.
             481          (e) (i) The remaining district may use its portion of the money made available under
             482      Subsection (5)(b) to pay for remaining district startup costs.
             483          (ii) The new district may use its portion of the money made available under Subsection
             484      (5)(b) to pay for new district startup costs.
             485          (6) (a) The existing district shall transfer title or, if applicable, partial title of property
             486      to the new school district in accordance with the allocation of property by:
             487          (i) the transition teams, as stated in the report under Subsection (4)(c)(i)(A)(II); and
             488          (ii) the arbitration panel, if applicable.
             489          (b) The existing district shall complete each transfer of title or, if applicable, partial
             490      title to real property and vehicles by July 1 of the second calendar year following the [creation]
             491      school board general election date described in Subsection (3)(a)(i), except as that date is
             492      changed by the mutual agreement of:


             493          (i) the school district board of the existing district;
             494          (ii) the school district board of the remaining district; and
             495          (iii) the school district board of the new district.
             496          (c) The existing district shall complete the transfer of all property not included in
             497      Subsection (6)(b) by November 1 of the second calendar year after the [creation] school board
             498      general election date described in Subsection (3)(a)(i).
             499          (7) Except as provided in Subsections (5) and (6), after the creation election date an
             500      existing school district may not transfer or agree to transfer title to district property without the
             501      prior consent of:
             502          [(a) if the transfer or agreement to transfer is before July 15 of the year following the
             503      creation election date:]
             504          [(i)] (a) the legislative body of the city in which the new district is located, for a new
             505      district located entirely within a single city; or
             506          [(ii)] (b) the legislative bodies of all interlocal agreement participants, for each other
             507      new district[; or].
             508          [(b) if the transfer or agreement to transfer is on or after July 15 of the year following
             509      the creation election date but before July 15 of the second calendar year following the creation
             510      election date:]
             511          [(i) the school district board of the remaining district; and]
             512          [(ii) the school district board of the new district.]
             513          (8) This section applies to and governs all actions and proceedings relating to and
             514      following the creation of a new district, whether the election under Subsection 53A-2-118 (5)
             515      on the proposal to create a new school district occurs before or after May 5, 2008, including:
             516          (a) the election of school district board members; and
             517          (b) transition team duties and responsibilities, whether the transition team is appointed
             518      before or after May 5, 2008.
             519          Section 3. Section 53A-2-119 is amended to read:
             520           53A-2-119. Reapportionment -- Local school board membership.
             521          (1) Upon the creation of a new school district, the county legislative body shall
             522      reapportion the affected school districts pursuant to Section 20A-14-201 .
             523          (2) Except as provided in [Subsections (3) and ] Section 53A-2-118.1 [(3)(c)], school


             524      board membership in the affected school districts shall be determined under Title 20A, Chapter
             525      14, Part 2, Nomination and Election of Members of Local Boards of Education.
             526          [(3) (a) Subsection (3)(b) does not apply to a new school district created under Section
             527      53A-2-118.1 .]
             528          [(b) (i) If, as a result of a reapportionment conducted following the creation of a new
             529      school district, a local school board district is created in which no board member whose term
             530      extends beyond reapportionment resides, the first board member for the local school board
             531      district shall be elected at the next regular general election or municipal general election,
             532      whichever occurs first, after the election at which the creation of the new school district is
             533      approved.]
             534          [(ii) (A) The initial term of office of a board member elected under Subsection (3)(b)(i)
             535      shall be three years, except as provided in Subsection (3)(b)(ii)(B).]
             536          [(B) If more than one position on a local school board needs to be filled pursuant to
             537      Subsection (3)(b)(i), the initial term of the board members elected shall be staggered. The
             538      county legislative body shall determine by lot which of the reapportioned local school board
             539      districts will elect members to three-year terms and which will elect members to one-year
             540      terms.]




Legislative Review Note
    as of 10-26-09 10:19 AM


Office of Legislative Research and General Counsel


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