S.B. 91

             1     

SCHOOL DISTRICT MODIFICATIONS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne A. Harper

             5     
House Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends certain provisions related to school districts.
             10      Highlighted Provisions:
             11          This bill:
             12          .    provides that a qualifying city or interlocal agreement participant may not submit
             13      for voter approval a measure to create a new school district unless the qualifying
             14      city or interlocal agreement participant files a petition signed by the registered
             15      voters in the proposed new school district equal in number to 10% of the number of
             16      voters within each voting precinct;
             17          .    extends the sunset date for capital local levy equalization provisions in a county of
             18      the first class to December 31, 2020;
             19          .    defines terms; and
             20          .    makes technical and conforming changes.
             21      Money Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          None
             25      Utah Code Sections Affected:
             26      AMENDS:
             27           53A-2-117 , as last amended by Laws of Utah 2011, Chapters 300 and 369


             28           53A-2-118 , as last amended by Laws of Utah 2010, Chapter 230
             29           53A-2-118.1 , as last amended by Laws of Utah 2011, Chapter 300
             30           53A-2-120 , as last amended by Laws of Utah 2011, Chapter 295
             31           63I-1-253 , as last amended by Laws of Utah 2012, Chapter 369
             32     
             33      Be it enacted by the Legislature of the state of Utah:
             34          Section 1. Section 53A-2-117 is amended to read:
             35           53A-2-117. Definitions.
             36          As used in Sections 53A-2-117 through 53A-2-122 , except Section 53A-2-118.4 :
             37          (1) "Allocation date" means:
             38          (a) June 30 of the second calendar year after the local school board general election
             39      date described in Subsection 53A-2-118.1 [(3)](7)(a)(i); or
             40          (b) another date that the transition teams under Section 53A-2-118.1 mutually agree to.
             41          (2) "Canvass date" means the date of the canvass of an election under Subsection
             42      53A-2-118 (5) at which voters approve the creation of a new school district under Section
             43      53A-2-118.1 .
             44          (3) "Creation election date" means the date of the election under Subsection
             45      53A-2-118 (5) at which voters approve the creation of a new school district under Section
             46      53A-2-118.1 .
             47          (4) "Divided school district, "existing district," or "existing school district" means a
             48      school district from which a new district is created.
             49          (5) "New district" or "new school district" means a school district created under
             50      Section 53A-2-118 or 53A-2-118.1 .
             51          (6) "Remaining district" or "remaining school district" means an existing district after
             52      the creation of a new district.
             53          Section 2. Section 53A-2-118 is amended to read:
             54           53A-2-118. Creation of new school district -- Initiation of process -- Procedures
             55      to be followed.
             56          (1) A new school district may be created from one or more existing school districts, as
             57      provided in this section.
             58          (2) (a) The process to create a new school district may be initiated:


             59          (i) through a citizens' initiative petition;
             60          (ii) at the request of the board of the existing district or districts to be affected by the
             61      creation of the new district; or
             62          (iii) at the request of a city within the boundaries of the school district or at the request
             63      of interlocal agreement participants, pursuant to Section 53A-2-118.1 .
             64          (b) (i) Each petition submitted under Subsection (2)(a)(i) shall be signed by qualified
             65      electors residing within the geographical boundaries of the proposed new school district equal
             66      in number to at least 15% of the number of electors in the area who voted for the office of
             67      governor at the last regular general election.
             68          (ii) Each request or petition submitted under Subsection (2)(a) shall:
             69          (A) be filed with the clerk of each county in which any part of the proposed new school
             70      district is located;
             71          (B) indicate the typed or printed name and current residence address of each governing
             72      board member making a request, or registered voter signing a petition, as the case may be;
             73          (C) describe the proposed new school district boundaries; and
             74          (D) designate up to five signers of the petition or request as sponsors, one of whom
             75      shall be designated as the contact sponsor, with the mailing address and telephone number of
             76      each.
             77          (c) A signer of a petition under Subsection (2)(a)(i) may withdraw or, once withdrawn,
             78      reinstate the signer's signature at any time before the filing of the petition by filing a written
             79      withdrawal or reinstatement with the county clerk.
             80          (d) The process under Subsection (2)(a)(i) may only be initiated once during any
             81      four-year period.
             82          (e) A new district may not be formed pursuant to Subsection (2)(a) if the student
             83      population of the proposed new district is less than 3,000 or the existing district's student
             84      population would be less than 3,000 because of the creation of the new school district.
             85          (f) Within 45 days after the filing of a petition under Subsection (2)(a)(i) or five
             86      business days after the filing of a request under Subsection (2)(a)(ii) or (iii), the clerk of each
             87      county with which a request or petition is filed shall:
             88          (i) determine whether the request or petition complies with Subsections (2)(a), (b), (d),
             89      and (e), as applicable; and


             90          (ii) (A) if the county clerk determines that the request or petition complies with the
             91      applicable requirements:
             92          (I) certify the request or petition and deliver the certified request or petition to the
             93      county legislative body; and
             94          (II) mail or deliver written notification of the certification to the contact sponsor; or
             95          (B) if the county clerk determines that the request or petition fails to comply with any
             96      of the applicable requirements, reject the request or petition and notify the contact sponsor in
             97      writing of the rejection and reasons for the rejection.
             98          (g) If the county clerk fails to certify or reject a request or petition within the time
             99      specified in Subsection (2)(f), the request or petition shall be considered to be certified.
             100          (h) (i) If the county clerk rejects a request or petition, the request or petition may be
             101      amended to correct the deficiencies for which it was rejected and then refiled.
             102          (ii) Subsection (2)(d) does not apply to a request or petition that is amended and refiled
             103      after having been rejected by a county clerk.
             104          (i) If a county legislative body receives a request from a school board under Subsection
             105      (2)(a)(ii) or a petition under Subsection (2)(a)(i) which is certified by the county clerk on or
             106      before December 1:
             107          (i) the county legislative body shall appoint an ad hoc advisory committee, as provided
             108      by Subsection (3), on or before January 1;
             109          (ii) the ad hoc advisory committee shall submit its report and recommendations to the
             110      county legislative body, as provided by Subsection (3), on or before July 1; and
             111          (iii) if the legislative body of each county with which a request or petition is filed
             112      approves a proposal to create a new district, the proposal shall be submitted to the respective
             113      county clerk to be voted on by the electors of each existing district at the regular general or
             114      municipal general election held in November.
             115          (3) (a) The legislative body of each county with which a request or petition is filed
             116      shall appoint an ad hoc advisory committee to review and make recommendations on a request
             117      for the creation of a new school district submitted under Subsection (2)(a)(i) or (ii).
             118          (b) The advisory committee shall:
             119          (i) seek input from:
             120          (A) those requesting the creation of the new school district;


             121          (B) the school board and school personnel of each existing school district;
             122          (C) those citizens residing within the geographical boundaries of each existing school
             123      district;
             124          (D) the State Board of Education; and
             125          (E) other interested parties;
             126          (ii) review data and gather information on at least:
             127          (A) the financial viability of the proposed new school district;
             128          (B) the proposal's financial impact on each existing school district;
             129          (C) the exact placement of school district boundaries; and
             130          (D) the positive and negative effects of creating a new school district and whether the
             131      positive effects outweigh the negative if a new school district were to be created; and
             132          (iii) make a report to the county legislative body in a public meeting on the committee's
             133      activities, together with a recommendation on whether to create a new school district.
             134          (4) For a request or petition submitted under Subsection (2)(a)(i) or (2)(a)(ii):
             135          (a) The county legislative body shall provide for a 45-day public comment period on
             136      the report and recommendation to begin on the day the report is given under Subsection
             137      (3)(b)(iii).
             138          (b) Within 14 days after the end of the comment period, the legislative body of each
             139      county with which a request or petition is filed shall vote on the creation of the proposed new
             140      school district.
             141          (c) The proposal is approved if a majority of the members of the legislative body of
             142      each county with which a request or petition is filed votes in favor of the proposal.
             143          (d) If the proposal is approved, the legislative body of each county with which a
             144      request or petition is filed shall submit the proposal to the county clerk to be voted on:
             145          (i) by the legal voters of each existing school district;
             146          (ii) in accordance with the procedures and requirements applicable to a regular general
             147      election under Title 20A, Election Code; and
             148          (iii) at the next regular general election or municipal general election, whichever is
             149      first.
             150          (e) Creation of the new school district shall occur if a majority of the electors within
             151      both the proposed school district and each remaining school district voting on the proposal vote


             152      in favor of the creation of the new district.
             153          (f) Each county legislative body shall comply with the requirements of Section
             154      53A-2-101.5 .
             155          (g) If a proposal submitted under Subsection (2)(a)(i) or (ii) to create a new district is
             156      approved by the electors, the existing district's documented costs to study and implement the
             157      proposal shall be reimbursed by the new district.
             158          (5) (a) If a proposal submitted under Subsection (2)(a)(iii) is certified under Subsection
             159      (2)(f) or (g), the legislative body of each county in which part of the proposed new school
             160      district is located shall submit the proposal to the respective clerk of each county to be voted
             161      on:
             162          (i) by the legal voters residing within the proposed new school district boundaries;
             163          (ii) in accordance with the procedures and requirements applicable to a regular general
             164      election under Title 20A, Election Code; and
             165          (iii) at the next regular general election or municipal general election, whichever is
             166      first.
             167          (b) (i) If a majority of the legal voters within the proposed new school district
             168      boundaries voting on the proposal at an election under Subsection (5)(a) vote in favor of the
             169      creation of the new district:
             170          (A) each county legislative body shall comply with the requirements of Section
             171      53A-2-101.5 ; and
             172          (B) upon the lieutenant governor's issuance of the certificate under Section 67-1a-6.5 ,
             173      the new district is created.
             174          (ii) Notwithstanding the creation of a new district as provided in Subsection
             175      (5)(b)(i)(B):
             176          (A) a new school district may not begin to provide educational services to the area
             177      within the new district until July 1 of the second calendar year following the school board
             178      general election date described in Subsection 53A-2-118.1 [(3)](7)(a)(i);
             179          (B) a remaining district may not begin to provide educational services to the area
             180      within the remaining district until the time specified in Subsection (5)(b)(ii)(A); and
             181          (C) each existing district shall continue, until the time specified in Subsection
             182      (5)(b)(ii)(A), to provide educational services within the entire area covered by the existing


             183      district.
             184          Section 3. Section 53A-2-118.1 is amended to read:
             185           53A-2-118.1. Proposal initiated by a city or interlocal agreement participants to
             186      create a school district -- Boundaries -- Election of local school board members --
             187      Allocation of assets and liabilities -- Startup costs -- Transfer of title.
             188          [(1) (a) After conducting a feasibility study, a city with a population of at least 50,000,
             189      as determined by the lieutenant governor using the process described in Subsection
             190      67-1a-2 (3),]
             191          (1) As used in this section:
             192          (a) "Interlocal agreement participant" means a city of any class, a town, or a county,
             193      together with one or more other cities, towns, or a county that have entered into an interlocal
             194      agreement, in accordance with Title 11, Chapter 13, Interlocal Cooperation Act, for the purpose
             195      of submitting for voter approval a measure to create a new school district.
             196          (b) "Qualifying city" means a city with a population of at least 50,000, as determined
             197      by the lieutenant governor using the process described in Subsection 67-1a-2 (3).
             198          (2) (a) A qualifying city may by majority vote of the legislative body, submit for voter
             199      approval a measure to create a new school district with boundaries contiguous with that city's
             200      boundaries, in accordance with Section 53A-2-118 [.] if:
             201          (i) the qualifying city files a petition with the clerk of each county in which any part of
             202      the proposed new school district is located, in accordance with Subsection (5); and
             203          (ii) prior to filing the petition, the qualifying city conducts a feasibility study.
             204          (b) (i) The determination of all matters relating to the scope, adequacy, and other
             205      aspects of a feasibility study [under Subsection (1)(a)] is within the exclusive discretion of the
             206      city's legislative body.
             207          (ii) An inadequacy of a feasibility study under Subsection [(1)(a)] (2)(a)(ii) may not be
             208      the 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          [(2) (a) By majority vote of the legislative body, a city of any class, a town, or a county,
             212      may, together with one or more other cities, towns, or the county enter into an interlocal
             213      agreement, in accordance with Title 11, Chapter 13, Interlocal Cooperation Act, for the purpose


             214      of submitting for voter approval a measure to create a new school district.]
             215          [(b) (i) In accordance with Section 53A-2-118 ,]
             216          (3) (a) Interlocal agreement participants may, by majority vote of the legislative bodies
             217      of each of the interlocal agreement participants [under Subsection (2)(a) may], submit a
             218      proposal for voter approval, in accordance with Section 53A-2-118 if:
             219          [(A) the interlocal agreement participants conduct a feasibility study prior to submitting
             220      the proposal to the county;]
             221          (i) the interlocal agreement participants file a petition with the clerk of each county in
             222      which any part of the proposed new school district is located, in accordance with Subsection
             223      (5);
             224          (ii) prior to filing a petition, the interlocal agreement participants conduct a feasibility
             225      study;
             226          [(B)] (iii) the combined population within the proposed new school district boundaries
             227      is at least 50,000;
             228          [(C)] (iv) the new school district boundaries:
             229          [(I)] (A) are contiguous;
             230          [(II)] (B) do not completely surround or otherwise completely geographically isolate a
             231      portion of an existing school district that is not part of the proposed new school district from
             232      the remaining part of that existing school district, except as provided in Subsection (2)(d)(iii);
             233          [(III)] (C) include the entire boundaries of each participant city or town, except as
             234      provided in Subsection [(2)(d)(ii)] (4)(b); and
             235          [(IV)] (D) subject to Subsection [(2)(b)(ii)] (3)(d), do not cross county lines; and
             236          [(D)] (v) the combined population within the proposed new school district of interlocal
             237      agreement participants that have entered into an interlocal agreement proposing to create a new
             238      school district is at least 80% of the total population of the proposed new school district.
             239          [(ii)] (b) The determination of all matters relating to the scope, adequacy, and other
             240      aspects of a feasibility study [under Subsection (2)(b)(i)(A)], including whether to conduct a
             241      new feasibility study or revise a previous feasibility study due to a change in the proposed new
             242      school district boundaries, is within the exclusive discretion of the legislative bodies of the
             243      interlocal agreement participants that enter into an interlocal agreement to submit for voter
             244      approval a measure to create a new school district.


             245          [(iii)] (c) An inadequacy of a feasibility study under Subsection [(2)(b)(i)(A)] (3)(a)(ii)
             246      may not be the basis of a legal action or other challenge to:
             247          [(A)] (i) an election for voter approval of the creation of a new school district; or
             248          [(B)] (ii) the creation of the new school district.
             249          [(iv)] (d) For purposes of determining whether the boundaries of a proposed new
             250      school district cross county lines under Subsection [(2)(b)(i)(C)(IV)] (3)(a)(iv)(D):
             251          [(A)] (i) a municipality located in more than one county and entirely within the
             252      boundaries of a single school district is considered to be entirely within the same county as
             253      other participants in an interlocal agreement under this Subsection [(2)(a)] (3) if more of the
             254      municipality's land area and population is located in that same county than outside the county;
             255      and
             256          [(B)] (ii) a municipality located in more than one county that participates in an
             257      interlocal agreement under this Subsection [(2)(a)] (3) with respect to some but not all of the
             258      area within the municipality's boundaries on the basis of the exception stated in Subsection
             259      [(2)(d)(ii)(B)] (4)(b)(ii) may not be considered to cross county lines.
             260          [(c)] (e) (i) A county may only participate in an interlocal agreement under this
             261      Subsection [(2)] (3) for the unincorporated areas of the county.
             262          (ii) Boundaries of a new school district created under this [section] Subsection (3) may
             263      include:
             264          (A) a portion of one or more existing school districts; and
             265          (B) a portion of the unincorporated area of a county, including a portion of a township.
             266          [(d) (i)] (4) (a) As used in this Subsection [(2)(d)] (4):
             267          [(A)] (i) "Isolated area" means an area that:
             268          [(I)] (A) is entirely within the boundaries of a municipality that, except for that area, is
             269      entirely within a school district different than the school district in which the area is located;
             270      and
             271          [(II)] (B) would, because of the creation of a new school district from the existing
             272      district in which the area is located, become completely geographically isolated.
             273          [(B)] (ii) "Municipality's school district" means the school district that includes all of
             274      the municipality in which the isolated area is located except the isolated area.
             275          [(ii)] (b) Notwithstanding Subsection [(2)(b)(i)(C)(III)] (3)(a)(iv)(C), a municipality


             276      may be a participant in an interlocal agreement under Subsection [(2)(a)] (3) with respect to
             277      some but not all of the area within the municipality's boundaries if:
             278          [(A)] (i) the portion of the municipality proposed to be included in the new school
             279      district would, if not included, become an isolated area upon the creation of the new school
             280      district; or
             281          [(B) (I)] (ii) (A) the portion of the municipality proposed to be included in the new
             282      school district is within the boundaries of the same school district that includes the other
             283      interlocal agreement participants; and
             284          [(II)] (B) the portion of the municipality proposed to be excluded from the new school
             285      district is within the boundaries of a school district other than the school district that includes
             286      the other interlocal agreement participants.
             287          [(iii) (A)] (c) (i) Notwithstanding Subsection [(2)(b)(i)(C)(II)] (3)(a)(iv)(B), a proposal
             288      to create a new school district may be submitted for voter approval pursuant to an interlocal
             289      agreement under Subsection [(2)(a)] (3), even though the new school district boundaries would
             290      create an isolated area, if:
             291          [(I)] (A) the potential isolated area is contiguous to one or more of the interlocal
             292      agreement participants;
             293          [(II)] (B) the interlocal participants submit a written request to the municipality in
             294      which the potential isolated area is located, requesting the municipality to enter into an
             295      interlocal agreement under Subsection [(2)(a)] (3) that proposes to submit for voter approval a
             296      measure to create a new school district that includes the potential isolated area; and
             297          [(III)] (C) 90 days after a request under Subsection [(2)(d)(iii)(A)(II)] (4)(c)(i)(B) is
             298      submitted, the municipality has not entered into an interlocal agreement as requested in the
             299      request.
             300          [(B)] (ii) Each municipality receiving a request under Subsection [(2)(d)(iii)(A)(II)]
             301      (4)(c)(i)(B) shall hold one or more public hearings to allow input from the public and affected
             302      school districts regarding whether or not the municipality should enter into an interlocal
             303      agreement with respect to the potential isolated area.
             304          [(C) (I)] (iii) (A) This Subsection [(2)(d)(iii)(C)] (4)(c)(iii) applies if:
             305          [(Aa)] (I) a new school district is created under this section after a measure is
             306      submitted to voters based on the authority of Subsection [(2)(d)(iii)(A)] (4)(c)(i); and


             307          [(Bb)] (II) the creation of the new school district results in an isolated area.
             308          [(II)] (B) The isolated area shall, on July 1 of the second calendar year following the
             309      local school board general election date described in Subsection [(3)] (7)(a)(i), become part of
             310      the municipality's school district.
             311          [(III)] (C) Unless the isolated area is the only remaining part of the existing district, the
             312      process described in Subsection [(4)] (8) shall be modified to:
             313          [(Aa)] (I) include a third transition team, appointed by the local school board of the
             314      municipality's school district, to represent that school district; and
             315          [(Bb)] (II) require allocation of the existing district's assets and liabilities among the
             316      new district, the remaining district, and the municipality's school district.
             317          [(IV)] (D) The existing district shall continue to provide educational services to the
             318      isolated area until July 1 of the second calendar year following the local school board general
             319      election date described in Subsection [(3)] (7)(a)(i).
             320          (5) A qualifying city or interlocal agreement participant shall ensure that a petition
             321      under this section:
             322          (a) has been signed by the registered voters residing within the geographical boundaries
             323      of the proposed new school district equal in number to at least 10% of the number of voters
             324      within each voting precinct, according to the official voter registration list maintained by the
             325      county on the date the petition is filed;
             326          (b) indicates the typed or printed name and current residence address of each registered
             327      voter signing the petition;
             328          (c) describes the proposed new school district boundaries and includes an accurate plat
             329      or map, prepared by a licensed surveyor, showing the boundaries of the proposed new school
             330      district;
             331          (d) describes the results of the feasibility study under Subsection (2)(a)(ii) or (3)(a)(ii);
             332          (e) designates up to five signers of the petition as sponsors, one of whom shall be
             333      designated as the contact sponsor, with the mailing address and telephone number of each; and
             334          (f) substantially complies with and is circulated in the following form:
             335          PETITION FOR THE CREATION OF A NEW SCHOOL DISTRICT
             336          We, the undersigned registered voters within the area described in this petition,
             337      respectfully petition the county legislative body to submit to the registered voters residing


             338      within the area described in this petition, at the next regular general election, the question of
             339      whether the area should become a new school district. Each of the undersigned affirms that
             340      each has personally signed this petition and is a registered voter within the described area, and
             341      that the current residence address of each is correctly written after the signer's name. The area
             342      proposed to become a new school district is described as follows: (insert an accurate
             343      description of the area).
             344          (6) (a) A county clerk that receives a petition under Subsection (2)(a)(i) or (3)(a)(i)
             345      shall review the petition within 45 days of filing to determine whether the petition meets the
             346      requirements under Subsection (5).
             347          (b) If the county clerk fails to certify or reject a petition within the time specified in
             348      Subsection (6)(a), the petition shall be considered to be certified.
             349          [(3)] (7) (a) If a proposal under this section is approved by voters in accordance with
             350      Section 53A-2-118 :
             351          (i) an election shall be held at the next regular general election to elect:
             352          (A) members to the local school board of the existing school district whose terms are
             353      expiring;
             354          (B) all members to the local school board of the new school district; and
             355          (C) all members to the local school board of the remaining district;
             356          (ii) the assets and liabilities of the existing school district shall be divided between the
             357      remaining school district and the new school district as provided in Subsection [(5)] (9) and
             358      Section 53A-2-121 ;
             359          (iii) transferred employees shall be treated in accordance with Sections 53A-2-116 and
             360      53A-2-122 ;
             361          (iv) (A) an individual residing within the boundaries of a new school district at the
             362      time the new school district is created may, for six school years after the creation of the new
             363      school district, elect to enroll in a secondary school located outside the boundaries of the new
             364      school district if:
             365          (I) the individual resides within the boundaries of that secondary school as of the day
             366      before the new school district is created; and
             367          (II) the individual would have been eligible to enroll in that secondary school had the
             368      new school district not been created; and


             369          (B) the school district in which the secondary school is located shall provide
             370      educational services, including, if provided before the creation of the new school district,
             371      busing, to each individual making an election under Subsection [(3)] (7)(a)(iv)(A) for each
             372      school year for which the individual makes the election; and
             373          (v) within one year after the new district begins providing educational services, the
             374      superintendent of each remaining district affected and the superintendent of the new district
             375      shall meet, together with the Superintendent of Public Instruction, to determine if further
             376      boundary changes should be proposed in accordance with Section 53A-2-104 .
             377          (b) (i) The terms of the initial members of the local school board of the new district and
             378      remaining district shall be staggered and adjusted by the county legislative body so that
             379      approximately half of the local school board is elected every two years.
             380          (ii) The term of a member of the existing local school board, including a member
             381      elected under Subsection [(3)] (7)(a)(i)(A), terminates on July 1 of the second year after the
             382      local school board general election date described in Subsection [(3)] (7)(a)(i), regardless of
             383      when the term would otherwise have terminated.
             384          (iii) Notwithstanding the existence of a local school board for the new district and a
             385      local school board for the remaining district under Subsection [(3)] (7)(a)(i), the local school
             386      board of the existing district shall continue, until the time specified in Subsection
             387      53A-2-118 (5)(b)(ii)(A), to function and exercise authority as a local school board to the extent
             388      necessary to continue to provide educational services to the entire existing district.
             389          (iv) A person may simultaneously serve as or be elected to be a member of the local
             390      school board of an existing district and a member of the local school board of:
             391          (A) a new district; or
             392          (B) a remaining district.
             393          [(4)] (8) (a) Within 45 days after the canvass date for the election at which voters
             394      approve the creation of a new district:
             395          (i) a transition team to represent the remaining district shall be appointed by the
             396      members of the existing local school board who reside within the area of the remaining district,
             397      in consultation with:
             398          (A) the legislative bodies of all municipalities in the area of the remaining district; and
             399          (B) the legislative body of the county in which the remaining district is located, if the


             400      remaining district includes one or more unincorporated areas of the county; and
             401          (ii) another transition team to represent the new district shall be appointed by:
             402          (A) for a new district located entirely within the boundaries of a single city, the
             403      legislative body of that city; or
             404          (B) for each other new district, the legislative bodies of all interlocal agreement
             405      participants.
             406          (b) The local school board of the existing school district shall, within 60 days after the
             407      canvass date for the election at which voters approve the creation of a new district:
             408          (i) prepare an inventory of the existing district's:
             409          (A) assets, both tangible and intangible, real and personal; and
             410          (B) liabilities; and
             411          (ii) deliver a copy of the inventory to each of the transition teams.
             412          (c) The transition teams appointed under Subsection [(4)] (8)(a) shall:
             413          (i) determine the allocation of the existing district's assets and, except for indebtedness
             414      under Section 53A-2-121 , liabilities between the remaining district and the new district in
             415      accordance with Subsection [(5)] (9);
             416          (ii) prepare a written report detailing how the existing district's assets and, except for
             417      indebtedness under Section 53A-2-121 , liabilities are to be allocated; and
             418          (iii) deliver a copy of the written report to:
             419          (A) the local school board of the existing district;
             420          (B) the local school board of the remaining district; and
             421          (C) the local school board of the new district.
             422          (d) The transition teams shall determine the allocation under Subsection [(4)] (8)(c)(i)
             423      and deliver the report required under Subsection [(4)] (8)(c)(ii) before August 1 of the year
             424      following the election at which voters approve the creation of a new district, unless that
             425      deadline is extended by the mutual agreement of:
             426          (i) the local school board of the existing district; and
             427          (ii) (A) the legislative body of the city in which the new district is located, for a new
             428      district located entirely within a single city; or
             429          (B) the legislative bodies of all interlocal agreement participants, for each other new
             430      district.


             431          (e) (i) All costs and expenses of the transition team that represents a remaining district
             432      shall be borne by the remaining district.
             433          (ii) All costs and expenses of the transition team that represents a new district shall
             434      initially be borne by:
             435          (A) the city whose legislative body appoints the transition team, if the transition team
             436      is appointed by the legislative body of a single city; or
             437          (B) the interlocal agreement participants, if the transition team is appointed by the
             438      legislative bodies of interlocal agreement participants.
             439          (iii) The new district may, to a maximum of $500,000, reimburse the city or interlocal
             440      agreement participants for:
             441          (A) transition team costs and expenses; and
             442          (B) startup costs and expenses incurred by the city or interlocal agreement participants
             443      on behalf of the new district.
             444          [(5)] (9) (a) As used in this Subsection [(5)] (9):
             445          (i) "Associated property" means furniture, equipment, or supplies located in or
             446      specifically associated with a physical asset.
             447          (ii) (A) "Discretionary asset or liability" means, except as provided in Subsection [(5)]
             448      (9)(a)(ii)(B), an asset or liability that is not tied to a specific project, school, student, or
             449      employee by law or school district accounting practice.
             450          (B) "Discretionary asset or liability" does not include a physical asset, associated
             451      property, a vehicle, or bonded indebtedness.
             452          (iii) (A) "Nondiscretionary asset or liability" means, except as provided in Subsection
             453      [(5)] (9)(a)(iii)(B), an asset or liability that is tied to a specific project, school, student, or
             454      employee by law or school district accounting practice.
             455          (B) "Nondiscretionary asset or liability" does not include a physical asset, associated
             456      property, a vehicle, or bonded indebtedness.
             457          (iv) "Physical asset" means a building, land, or water right together with revenue
             458      derived from the lease or use of the building, land, or water right.
             459          (b) Except as provided in Subsection [(5)] (9)(c), the transition teams appointed under
             460      Subsection [(4)] (8)(a) shall allocate all assets and liabilities the existing district owns on the
             461      allocation date, both tangible and intangible, real and personal, to the new district and


             462      remaining district as follows:
             463          (i) a physical asset and associated property shall be allocated to the school district in
             464      which the physical asset is located;
             465          (ii) a discretionary asset or liability shall be allocated between the new district and
             466      remaining district in proportion to the student populations of the school districts;
             467          (iii) a nondiscretionary asset shall be allocated to the school district where the project,
             468      school, student, or employee to which the nondiscretionary asset is tied will be located;
             469          (iv) vehicles used for pupil transportation shall be allocated:
             470          (A) according to the transportation needs of schools, as measured by the number and
             471      assortment of vehicles used to serve transportation routes serving schools within the new
             472      district and remaining district; and
             473          (B) in a manner that gives each school district a fleet of vehicles for pupil
             474      transportation that is equivalent in terms of age, condition, and variety of carrying capacities;
             475      and
             476          (v) other vehicles shall be allocated:
             477          (A) in proportion to the student populations of the school districts; and
             478          (B) in a manner that gives each district a fleet of vehicles that is similar in terms of age,
             479      condition, and carrying capacities.
             480          (c) By mutual agreement, the transition teams may allocate an asset or liability in a
             481      manner different than the allocation method specified in Subsection [(5)] (9)(b).
             482          [(6)] (10) (a) As used in this Subsection [(6)] (10):
             483          (i) "New district startup costs" means:
             484          (A) costs and expenses incurred by a new district in order to prepare to begin providing
             485      educational services on July 1 of the second calendar year following the local school board
             486      general election date described in Subsection [(3)] (7)(a)(i); and
             487          (B) the costs and expenses of the transition team that represents the new district.
             488          (ii) "Remaining district startup costs" means:
             489          (A) costs and expenses incurred by a remaining district in order to:
             490          (I) make necessary adjustments to deal with the impacts resulting from the creation of
             491      the new district; and
             492          (II) prepare to provide educational services within the remaining district once the new


             493      district begins providing educational services within the new district; and
             494          (B) the costs and expenses of the transition team that represents the remaining district.
             495          (b) (i) By January 1 of the year following the local school board general election date
             496      described in Subsection [(3)] (7)(a)(i), the existing district shall make half of the undistributed
             497      reserve from its General Fund, to a maximum of $9,000,000, available for the use of the
             498      remaining district and the new district, as provided in this Subsection [(6)] (10).
             499          (ii) The existing district may make additional funds available for the use of the
             500      remaining district and the new district beyond the amount specified in Subsection [(6)]
             501      (10)(b)(i) through an interlocal agreement.
             502          (c) The existing district shall make the money under Subsection [(6)] (10)(b) available
             503      to the remaining district and the new district proportionately based on student population.
             504          (d) The money made available under Subsection [(6)] (10)(b) may be accessed and
             505      spent by:
             506          (i) for the remaining district, the local school board of the remaining district; and
             507          (ii) for the new district, the local school board of the new district.
             508          (e) (i) The remaining district may use its portion of the money made available under
             509      Subsection [(6)] (10)(b) to pay for remaining district startup costs.
             510          (ii) The new district may use its portion of the money made available under Subsection
             511      [(6)] (10)(b) to pay for new district startup costs.
             512          [(7)] (11) (a) The existing district shall transfer title or, if applicable, partial title of
             513      property to the new school district in accordance with the allocation of property by the
             514      transition teams, as stated in the report under Subsection [(4)] (8)(c)(ii).
             515          (b) The existing district shall complete each transfer of title or, if applicable, partial
             516      title to real property and vehicles by July 1 of the second calendar year following the local
             517      school board general election date described in Subsection [(3)] (7)(a)(i), except as that date is
             518      changed by the mutual agreement of:
             519          (i) the local school board of the existing district;
             520          (ii) the local school board of the remaining district; and
             521          (iii) the local school board of the new district.
             522          (c) The existing district shall complete the transfer of all property not included in
             523      Subsection [(7)] (11)(b) by November 1 of the second calendar year after the local school board


             524      general election date described in Subsection [(3)] (7)(a)(i).
             525          [(8)] (12) Except as provided in Subsections [(6)] (10) and [(7)] (11), after the creation
             526      election date an existing school district may not transfer or agree to transfer title to district
             527      property without the prior consent of:
             528          (a) the legislative body of the city in which the new district is located, for a new district
             529      located entirely within a single city; or
             530          (b) the legislative bodies of all interlocal agreement participants, for each other new
             531      district.
             532          [(9)] (13) This section does not apply to the creation of a new district initiated through
             533      a citizens' initiative petition or at the request of a local school board under Section 53A-2-118 .
             534          Section 4. Section 53A-2-120 is amended to read:
             535           53A-2-120. Transfer of school property to new school district.
             536          (1) (a) (i) On July 1 of the year following the school board elections for a new district
             537      created pursuant to a citizens' initiative petition or school board request under Section
             538      53A-2-118 and an existing district as provided in Section 53A-2-119 , the board of the existing
             539      district shall convey and deliver to the board of the new district all school property which the
             540      new district is entitled to receive.
             541          (ii) Any disagreements as to the disposition of school property shall be resolved by the
             542      county legislative body.
             543          (iii) Subsection (1)(a)(ii) does not apply to disagreements between transition teams
             544      about the proper allocation of property under Subsection 53A-2-118.1 [(4)](8).
             545          (b) An existing district shall transfer property to a new district created under Section
             546      53A-2-118.1 in accordance with Section 53A-2-118.1 .
             547          (2) Title vests in the new school board, including all rights, claims, and causes of
             548      action to or for the property, for the use or the income from the property, for conversion,
             549      disposition, or withholding of the property, or for any damage or injury to the property.
             550          (3) The new school board may bring and maintain actions to recover, protect, and
             551      preserve the property and rights of the district's schools and to enforce contracts.
             552          Section 5. Section 63I-1-253 is amended to read:
             553           63I-1-253. Repeal dates, Titles 53, 53A, and 53B.
             554          The following provisions are repealed on the following dates:


             555          (1) Section 53-3-232 , Conditional licenses, is repealed July 1, 2015.
             556          (2) Title 53A, Chapter 1a, Part 6, Public Education Job Enhancement Program is
             557      repealed July 1, 2020.
             558          (3) The State Instructional Materials Commission, created in Section 53A-14-101 , is
             559      repealed July 1, 2016.
             560          (4) Subsections 53A-16-113 (3) and (4) are repealed December 31, [2016] 2020.
             561          (5) Section 53A-16-114 is repealed December 31, [2016] 2020.
             562          (6) Section 53A-17a-163 , Performance-based Compensation Pilot Program is repealed
             563      July 1, 2016.
             564          (7) Subsection 53C-3-203 (4)(b)(vii), which provides for the distribution of money
             565      from the Land Exchange Distribution Account to the Geological Survey for test wells, other
             566      hydrologic studies, and air quality monitoring in the West Desert, is repealed July 1, 2020.




Legislative Review Note
    as of 1-29-14 2:42 PM


Office of Legislative Research and General Counsel


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