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H.B. 207

             1     

REQUIREMENTS TO CREATE SCHOOL DISTRICTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: John Dougall

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies a population requirement for political subdivisions initiating the
             10      creation of a new school district.
             11      Highlighted Provisions:
             12          This bill:
             13          .    requires a city seeking to create a new school district contiguous with the city
             14      boundaries to have a minimum population of 30,000; and
             15          .    requires interlocal agreement participants seeking to create a new school district to
             16      have a combined minimum population of 30,000 within the proposed new school
             17      district boundaries.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          53A-2-118.1, as last amended by Laws of Utah 2011, Chapter 300
             25     
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 53A-2-118.1 is amended to read:


             28           53A-2-118.1. Proposal initiated by a city or interlocal agreement participants to
             29      create a school district -- Boundaries -- Election of local school board members --
             30      Allocation of assets and liabilities -- Startup costs -- Transfer of title.
             31          (1) (a) After conducting a feasibility study, a city with a population of at least [50,000]
             32      30,000, as determined by the lieutenant governor using the process described in Subsection
             33      67-1a-2 (3), may by majority vote of the legislative body, submit for voter approval a measure
             34      to create a new school district with boundaries contiguous with that city's boundaries, in
             35      accordance with Section 53A-2-118 .
             36          (b) (i) The determination of all matters relating to the scope, adequacy, and other
             37      aspects of a feasibility study under Subsection (1)(a) is within the exclusive discretion of the
             38      city's legislative body.
             39          (ii) An inadequacy of a feasibility study under Subsection (1)(a) may not be the basis of
             40      a legal action or other challenge to:
             41          (A) an election for voter approval of the creation of a new school district; or
             42          (B) the creation of the new school district.
             43          (2) (a) By majority vote of the legislative body, a city of any class, a town, or a county,
             44      may, together with one or more other cities, towns, or the county enter into an interlocal
             45      agreement, in accordance with Title 11, Chapter 13, Interlocal Cooperation Act, for the purpose
             46      of submitting for voter approval a measure to create a new school district.
             47          (b) (i) In accordance with Section 53A-2-118 , interlocal agreement participants under
             48      Subsection (2)(a) may submit a proposal for voter approval if:
             49          (A) the interlocal agreement participants conduct a feasibility study prior to submitting
             50      the proposal to the county;
             51          (B) the combined population within the proposed new school district boundaries is at
             52      least [50,000] 30,000;
             53          (C) the new school district boundaries:
             54          (I) are contiguous;
             55          (II) do not completely surround or otherwise completely geographically isolate a
             56      portion of an existing school district that is not part of the proposed new school district from
             57      the remaining part of that existing school district, except as provided in Subsection (2)(d)(iii);
             58          (III) include the entire boundaries of each participant city or town, except as provided


             59      in Subsection (2)(d)(ii); and
             60          (IV) subject to Subsection (2)(b)(ii), do not cross county lines; and
             61          (D) the combined population within the proposed new school district of interlocal
             62      agreement participants that have entered into an interlocal agreement proposing to create a new
             63      school district is at least 80% of the total population of the proposed new school district.
             64          (ii) The determination of all matters relating to the scope, adequacy, and other aspects
             65      of a feasibility study under Subsection (2)(b)(i)(A), including whether to conduct a new
             66      feasibility study or revise a previous feasibility study due to a change in the proposed new
             67      school district boundaries, is within the exclusive discretion of the legislative bodies of the
             68      interlocal agreement participants that enter into an interlocal agreement to submit for voter
             69      approval a measure to create a new school district.
             70          (iii) An inadequacy of a feasibility study under Subsection (2)(b)(i)(A) may not be the
             71      basis of a legal action or other challenge to:
             72          (A) an election for voter approval of the creation of a new school district; or
             73          (B) the creation of the new school district.
             74          (iv) For purposes of determining whether the boundaries of a proposed new school
             75      district cross county lines under Subsection (2)(b)(i)(C)(IV):
             76          (A) a municipality located in more than one county and entirely within the boundaries
             77      of a single school district is considered to be entirely within the same county as other
             78      participants in an interlocal agreement under Subsection (2)(a) if more of the municipality's
             79      land area and population is located in that same county than outside the county; and
             80          (B) a municipality located in more than one county that participates in an interlocal
             81      agreement under Subsection (2)(a) with respect to some but not all of the area within the
             82      municipality's boundaries on the basis of the exception stated in Subsection (2)(d)(ii)(B) may
             83      not be considered to cross county lines.
             84          (c) (i) A county may only participate in an interlocal agreement under this Subsection
             85      (2) for the unincorporated areas of the county.
             86          (ii) Boundaries of a new school district created under this section may include:
             87          (A) a portion of one or more existing school districts; and
             88          (B) a portion of the unincorporated area of a county, including a portion of a township.
             89          (d) (i) As used in this Subsection (2)(d):


             90          (A) "Isolated area" means an area that:
             91          (I) is entirely within the boundaries of a municipality that, except for that area, is
             92      entirely within a school district different than the school district in which the area is located;
             93      and
             94          (II) would, because of the creation of a new school district from the existing district in
             95      which the area is located, become completely geographically isolated.
             96          (B) "Municipality's school district" means the school district that includes all of the
             97      municipality in which the isolated area is located except the isolated area.
             98          (ii) Notwithstanding Subsection (2)(b)(i)(C)(III), a municipality may be a participant in
             99      an interlocal agreement under Subsection (2)(a) with respect to some but not all of the area
             100      within the municipality's boundaries if:
             101          (A) the portion of the municipality proposed to be included in the new school district
             102      would, if not included, become an isolated area upon the creation of the new school district; or
             103          (B) (I) the portion of the municipality proposed to be included in the new school
             104      district is within the boundaries of the same school district that includes the other interlocal
             105      agreement participants; and
             106          (II) the portion of the municipality proposed to be excluded from the new school
             107      district is within the boundaries of a school district other than the school district that includes
             108      the other interlocal agreement participants.
             109          (iii) (A) Notwithstanding Subsection (2)(b)(i)(C)(II), a proposal to create a new school
             110      district may be submitted for voter approval pursuant to an interlocal agreement under
             111      Subsection (2)(a), even though the new school district boundaries would create an isolated
             112      area, if:
             113          (I) the potential isolated area is contiguous to one or more of the interlocal agreement
             114      participants;
             115          (II) the interlocal participants submit a written request to the municipality in which the
             116      potential isolated area is located, requesting the municipality to enter into an interlocal
             117      agreement under Subsection (2)(a) that proposes to submit for voter approval a measure to
             118      create a new school district that includes the potential isolated area; and
             119          (III) 90 days after a request under Subsection (2)(d)(iii)(A)(II) is submitted, the
             120      municipality has not entered into an interlocal agreement as requested in the request.


             121          (B) Each municipality receiving a request under Subsection (2)(d)(iii)(A)(II) shall hold
             122      one or more public hearings to allow input from the public and affected school districts
             123      regarding whether or not the municipality should enter into an interlocal agreement with
             124      respect to the potential isolated area.
             125          (C) (I) This Subsection (2)(d)(iii)(C) applies if:
             126          (Aa) a new school district is created under this section after a measure is submitted to
             127      voters based on the authority of Subsection (2)(d)(iii)(A); and
             128          (Bb) the creation of the new school district results in an isolated area.
             129          (II) The isolated area shall, on July 1 of the second calendar year following the local
             130      school board general election date described in Subsection (3)(a)(i), become part of the
             131      municipality's school district.
             132          (III) Unless the isolated area is the only remaining part of the existing district, the
             133      process described in Subsection (4) shall be modified to:
             134          (Aa) include a third transition team, appointed by the local school board of the
             135      municipality's school district, to represent that school district; and
             136          (Bb) require allocation of the existing district's assets and liabilities among the new
             137      district, the remaining district, and the municipality's school district.
             138          (IV) The existing district shall continue to provide educational services to the isolated
             139      area until July 1 of the second calendar year following the local school board general election
             140      date described in Subsection (3)(a)(i).
             141          (3) (a) If a proposal under this section is approved by voters:
             142          (i) an election shall be held at the next regular general election to elect:
             143          (A) members to the local school board of the existing school district whose terms are
             144      expiring;
             145          (B) all members to the local school board of the new school district; and
             146          (C) all members to the local school board of the remaining district;
             147          (ii) the assets and liabilities of the existing school district shall be divided between the
             148      remaining school district and the new school district as provided in Subsection (5) and Section
             149      53A-2-121 ;
             150          (iii) transferred employees shall be treated in accordance with Sections 53A-2-116 and
             151      53A-2-122 ;


             152          (iv) (A) an individual residing within the boundaries of a new school district at the
             153      time the new school district is created may, for six school years after the creation of the new
             154      school district, elect to enroll in a secondary school located outside the boundaries of the new
             155      school district if:
             156          (I) the individual resides within the boundaries of that secondary school as of the day
             157      before the new school district is created; and
             158          (II) the individual would have been eligible to enroll in that secondary school had the
             159      new school district not been created; and
             160          (B) the school district in which the secondary school is located shall provide
             161      educational services, including, if provided before the creation of the new school district,
             162      busing, to each individual making an election under Subsection (3)(a)(iv)(A) for each school
             163      year for which the individual makes the election; and
             164          (v) within one year after the new district begins providing educational services, the
             165      superintendent of each remaining district affected and the superintendent of the new district
             166      shall meet, together with the Superintendent of Public Instruction, to determine if further
             167      boundary changes should be proposed in accordance with Section 53A-2-104 .
             168          (b) (i) The terms of the initial members of the local school board of the new district and
             169      remaining district shall be staggered and adjusted by the county legislative body so that
             170      approximately half of the local school board is elected every two years.
             171          (ii) The term of a member of the existing local school board, including a member
             172      elected under Subsection (3)(a)(i)(A), terminates on July 1 of the second year after the local
             173      school board general election date described in Subsection (3)(a)(i), regardless of when the
             174      term would otherwise have terminated.
             175          (iii) Notwithstanding the existence of a local school board for the new district and a
             176      local school board for the remaining district under Subsection (3)(a)(i), the local school board
             177      of the existing district shall continue, until the time specified in Subsection
             178      53A-2-118 (5)(b)(ii)(A), to function and exercise authority as a local school board to the extent
             179      necessary to continue to provide educational services to the entire existing district.
             180          (iv) A person may simultaneously serve as or be elected to be a member of the local
             181      school board of an existing district and a member of the local school board of:
             182          (A) a new district; or


             183          (B) a remaining district.
             184          (4) (a) Within 45 days after the canvass date for the election at which voters approve
             185      the creation of a new district:
             186          (i) a transition team to represent the remaining district shall be appointed by the
             187      members of the existing local school board who reside within the area of the remaining district,
             188      in consultation with:
             189          (A) the legislative bodies of all municipalities in the area of the remaining district; and
             190          (B) the legislative body of the county in which the remaining district is located, if the
             191      remaining district includes one or more unincorporated areas of the county; and
             192          (ii) another transition team to represent the new district shall be appointed by:
             193          (A) for a new district located entirely within the boundaries of a single city, the
             194      legislative body of that city; or
             195          (B) for each other new district, the legislative bodies of all interlocal agreement
             196      participants.
             197          (b) The local school board of the existing school district shall, within 60 days after the
             198      canvass date for the election at which voters approve the creation of a new district:
             199          (i) prepare an inventory of the existing district's:
             200          (A) assets, both tangible and intangible, real and personal; and
             201          (B) liabilities; and
             202          (ii) deliver a copy of the inventory to each of the transition teams.
             203          (c) The transition teams appointed under Subsection (4)(a) shall:
             204          (i) determine the allocation of the existing district's assets and, except for indebtedness
             205      under Section 53A-2-121 , liabilities between the remaining district and the new district in
             206      accordance with Subsection (5);
             207          (ii) prepare a written report detailing how the existing district's assets and, except for
             208      indebtedness under Section 53A-2-121 , liabilities are to be allocated; and
             209          (iii) deliver a copy of the written report to:
             210          (A) the local school board of the existing district;
             211          (B) the local school board of the remaining district; and
             212          (C) the local school board of the new district.
             213          (d) The transition teams shall determine the allocation under Subsection (4)(c)(i) and


             214      deliver the report required under Subsection (4)(c)(ii) before August 1 of the year following the
             215      election at which voters approve the creation of a new district, unless that deadline is extended
             216      by the mutual agreement of:
             217          (i) the local school board of the existing district; and
             218          (ii) (A) the legislative body of the city in which the new district is located, for a new
             219      district located entirely within a single city; or
             220          (B) the legislative bodies of all interlocal agreement participants, for each other new
             221      district.
             222          (e) (i) All costs and expenses of the transition team that represents a remaining district
             223      shall be borne by the remaining district.
             224          (ii) All costs and expenses of the transition team that represents a new district shall
             225      initially be borne by:
             226          (A) the city whose legislative body appoints the transition team, if the transition team
             227      is appointed by the legislative body of a single city; or
             228          (B) the interlocal agreement participants, if the transition team is appointed by the
             229      legislative bodies of interlocal agreement participants.
             230          (iii) The new district may, to a maximum of $500,000, reimburse the city or interlocal
             231      agreement participants for:
             232          (A) transition team costs and expenses; and
             233          (B) startup costs and expenses incurred by the city or interlocal agreement participants
             234      on behalf of the new district.
             235          (5) (a) As used in this Subsection (5):
             236          (i) "Associated property" means furniture, equipment, or supplies located in or
             237      specifically associated with a physical asset.
             238          (ii) (A) "Discretionary asset or liability" means, except as provided in Subsection
             239      (5)(a)(ii)(B), an asset or liability that is not tied to a specific project, school, student, or
             240      employee by law or school district accounting practice.
             241          (B) "Discretionary asset or liability" does not include a physical asset, associated
             242      property, a vehicle, or bonded indebtedness.
             243          (iii) (A) "Nondiscretionary asset or liability" means, except as provided in Subsection
             244      (5)(a)(iii)(B), an asset or liability that is tied to a specific project, school, student, or employee


             245      by law or school district accounting practice.
             246          (B) "Nondiscretionary asset or liability" does not include a physical asset, associated
             247      property, a vehicle, or bonded indebtedness.
             248          (iv) "Physical asset" means a building, land, or water right together with revenue
             249      derived from the lease or use of the building, land, or water right.
             250          (b) Except as provided in Subsection (5)(c), the transition teams appointed under
             251      Subsection (4)(a) shall allocate all assets and liabilities the existing district owns on the
             252      allocation date, both tangible and intangible, real and personal, to the new district and
             253      remaining district as follows:
             254          (i) a physical asset and associated property shall be allocated to the school district in
             255      which the physical asset is located;
             256          (ii) a discretionary asset or liability shall be allocated between the new district and
             257      remaining district in proportion to the student populations of the school districts;
             258          (iii) a nondiscretionary asset shall be allocated to the school district where the project,
             259      school, student, or employee to which the nondiscretionary asset is tied will be located;
             260          (iv) vehicles used for pupil transportation shall be allocated:
             261          (A) according to the transportation needs of schools, as measured by the number and
             262      assortment of vehicles used to serve transportation routes serving schools within the new
             263      district and remaining district; and
             264          (B) in a manner that gives each school district a fleet of vehicles for pupil
             265      transportation that is equivalent in terms of age, condition, and variety of carrying capacities;
             266      and
             267          (v) other vehicles shall be allocated:
             268          (A) in proportion to the student populations of the school districts; and
             269          (B) in a manner that gives each district a fleet of vehicles that is similar in terms of age,
             270      condition, and carrying capacities.
             271          (c) By mutual agreement, the transition teams may allocate an asset or liability in a
             272      manner different than the allocation method specified in Subsection (5)(b).
             273          (6) (a) As used in this Subsection (6):
             274          (i) "New district startup costs" means:
             275          (A) costs and expenses incurred by a new district in order to prepare to begin providing


             276      educational services on July 1 of the second calendar year following the local school board
             277      general election date described in Subsection (3)(a)(i); and
             278          (B) the costs and expenses of the transition team that represents the new district.
             279          (ii) "Remaining district startup costs" means:
             280          (A) costs and expenses incurred by a remaining district in order to:
             281          (I) make necessary adjustments to deal with the impacts resulting from the creation of
             282      the new district; and
             283          (II) prepare to provide educational services within the remaining district once the new
             284      district begins providing educational services within the new district; and
             285          (B) the costs and expenses of the transition team that represents the remaining district.
             286          (b) (i) By January 1 of the year following the local school board general election date
             287      described in Subsection (3)(a)(i), the existing district shall make half of the undistributed
             288      reserve from its General Fund, to a maximum of $9,000,000, available for the use of the
             289      remaining district and the new district, as provided in this Subsection (6).
             290          (ii) The existing district may make additional funds available for the use of the
             291      remaining district and the new district beyond the amount specified in Subsection (6)(b)(i)
             292      through an interlocal agreement.
             293          (c) The existing district shall make the money under Subsection (6)(b) available to the
             294      remaining district and the new district proportionately based on student population.
             295          (d) The money made available under Subsection (6)(b) may be accessed and spent by:
             296          (i) for the remaining district, the local school board of the remaining district; and
             297          (ii) for the new district, the local school board of the new district.
             298          (e) (i) The remaining district may use its portion of the money made available under
             299      Subsection (6)(b) to pay for remaining district startup costs.
             300          (ii) The new district may use its portion of the money made available under Subsection
             301      (6)(b) to pay for new district startup costs.
             302          (7) (a) The existing district shall transfer title or, if applicable, partial title of property
             303      to the new school district in accordance with the allocation of property by the transition teams,
             304      as stated in the report under Subsection (4)(c)(ii).
             305          (b) The existing district shall complete each transfer of title or, if applicable, partial
             306      title to real property and vehicles by July 1 of the second calendar year following the local


             307      school board general election date described in Subsection (3)(a)(i), except as that date is
             308      changed by the mutual agreement of:
             309          (i) the local school board of the existing district;
             310          (ii) the local school board of the remaining district; and
             311          (iii) the local school board of the new district.
             312          (c) The existing district shall complete the transfer of all property not included in
             313      Subsection (7)(b) by November 1 of the second calendar year after the local school board
             314      general election date described in Subsection (3)(a)(i).
             315          (8) Except as provided in Subsections (6) and (7), after the creation election date an
             316      existing school district may not transfer or agree to transfer title to district property without the
             317      prior consent of:
             318          (a) the legislative body of the city in which the new district is located, for a new district
             319      located entirely within a single city; or
             320          (b) the legislative bodies of all interlocal agreement participants, for each other new
             321      district.
             322          (9) This section does not apply to the creation of a new district initiated through a
             323      citizens' initiative petition or at the request of a local school board under Section 53A-2-118 .




Legislative Review Note
    as of 11-17-11 1:00 PM


Office of Legislative Research and General Counsel


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