Representative Craig Hall proposes the following substitute bill:


1     
SCHOOL DISTRICT AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Craig Hall

5     
Senate Sponsor: Karen Mayne

6     

7     LONG TITLE
8     General Description:
9          This bill amends certain provisions related to the creation of a new school district.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     provides that, under certain circumstances, a qualifying city or interlocal agreement
14     participant may not submit for voter approval a measure to create a new school
15     district if the results of a feasibility study show that the five-year projected average
16     annual revenue of the proposed new school district exceeds the five-year projected
17     average annual cost of the proposed new school district by more than 5%; and
18          ▸     makes technical and conforming changes.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          None
23     Utah Code Sections Affected:
24     AMENDS:
25          53A-2-117, as last amended by Laws of Utah 2011, Chapters 300 and 369
26          53A-2-118, as last amended by Laws of Utah 2010, Chapter 230
27          53A-2-118.1, as last amended by Laws of Utah 2011, Chapter 300
28          53A-2-120, as last amended by Laws of Utah 2011, Chapter 295
29     

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 53A-2-117 is amended to read:
32          53A-2-117. Definitions.
33          As used in Sections 53A-2-117 through 53A-2-122, except Section 53A-2-118.4:
34          (1) "Allocation date" means:
35          (a) June 30 of the second calendar year after the local school board general election
36     date described in Subsection 53A-2-118.1[(3)](5)(a)(i); or
37          (b) another date that the transition teams under Section 53A-2-118.1 mutually agree to.
38          (2) "Canvass date" means the date of the canvass of an election under Subsection
39     53A-2-118(5) at which voters approve the creation of a new school district under Section
40     53A-2-118.1.
41          (3) "Creation election date" means the date of the 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          (4) "Divided school district, "existing district," or "existing school district" means a
45     school district from which a new district is created.
46          (5) "New district" or "new school district" means a school district created under
47     Section 53A-2-118 or 53A-2-118.1.
48          (6) "Remaining district" or "remaining school district" means an existing district after
49     the creation of a new district.
50          Section 2. Section 53A-2-118 is amended to read:
51          53A-2-118. Creation of new school district -- Initiation of process -- Procedures
52     to be followed.
53          (1) A new school district may be created from one or more existing school districts, as
54     provided in this section.
55          (2) (a) The process to create a new school district may be initiated:
56          (i) through a citizens' initiative petition;
57          (ii) at the request of the board of the existing district or districts to be affected by the
58     creation of the new district; or
59          (iii) at the request of a city within the boundaries of the school district or at the request
60     of interlocal agreement participants, pursuant to Section 53A-2-118.1.
61          (b) (i) Each petition submitted under Subsection (2)(a)(i) shall be signed by qualified
62     electors residing within the geographical boundaries of the proposed new school district equal
63     in number to at least 15% of the number of electors in the area who voted for the office of
64     governor at the last regular general election.
65          (ii) Each request or petition submitted under Subsection (2)(a) shall:
66          (A) be filed with the clerk of each county in which any part of the proposed new school
67     district is located;
68          (B) indicate the typed or printed name and current residence address of each governing
69     board member making a request, or registered voter signing a petition, as the case may be;
70          (C) describe the proposed new school district boundaries; and
71          (D) designate up to five signers of the petition or request as sponsors, one of whom
72     shall be designated as the contact sponsor, with the mailing address and telephone number of
73     each.
74          (c) A signer of a petition under Subsection (2)(a)(i) may withdraw or, once withdrawn,
75     reinstate the signer's signature at any time before the filing of the petition by filing a written
76     withdrawal or reinstatement with the county clerk.
77          (d) The process under Subsection (2)(a)(i) may only be initiated once during any
78     four-year period.
79          (e) A new district may not be formed pursuant to Subsection (2)(a) if the student
80     population of the proposed new district is less than 3,000 or the existing district's student
81     population would be less than 3,000 because of the creation of the new school district.
82          (f) Within 45 days after the filing of a petition under Subsection (2)(a)(i) or five
83     business days after the filing of a request under Subsection (2)(a)(ii) or (iii), the clerk of each
84     county with which a request or petition is filed shall:
85          (i) determine whether the request or petition complies with Subsections (2)(a), (b), (d),
86     and (e), as applicable; and
87          (ii) (A) if the county clerk determines that the request or petition complies with the
88     applicable requirements:
89          (I) certify the request or petition and deliver the certified request or petition to the
90     county legislative body; and
91          (II) mail or deliver written notification of the certification to the contact sponsor; or
92          (B) if the county clerk determines that the request or petition fails to comply with any
93     of the applicable requirements, reject the request or petition and notify the contact sponsor in
94     writing of the rejection and reasons for the rejection.
95          (g) If the county clerk fails to certify or reject a request or petition within the time
96     specified in Subsection (2)(f), the request or petition shall be considered to be certified.
97          (h) (i) If the county clerk rejects a request or petition, the request or petition may be
98     amended to correct the deficiencies for which it was rejected and then refiled.
99          (ii) Subsection (2)(d) does not apply to a request or petition that is amended and refiled
100     after having been rejected by a county clerk.
101          (i) If a county legislative body receives a request from a school board under Subsection
102     (2)(a)(ii) or a petition under Subsection (2)(a)(i) which is certified by the county clerk on or
103     before December 1:
104          (i) the county legislative body shall appoint an ad hoc advisory committee, as provided
105     by Subsection (3), on or before January 1;
106          (ii) the ad hoc advisory committee shall submit its report and recommendations to the
107     county legislative body, as provided by Subsection (3), on or before July 1; and
108          (iii) if the legislative body of each county with which a request or petition is filed
109     approves a proposal to create a new district, the proposal shall be submitted to the respective
110     county clerk to be voted on by the electors of each existing district at the regular general or
111     municipal general election held in November.
112          (3) (a) The legislative body of each county with which a request or petition is filed
113     shall appoint an ad hoc advisory committee to review and make recommendations on a request
114     for the creation of a new school district submitted under Subsection (2)(a)(i) or (ii).
115          (b) The advisory committee shall:
116          (i) seek input from:
117          (A) those requesting the creation of the new school district;
118          (B) the school board and school personnel of each existing school district;
119          (C) those citizens residing within the geographical boundaries of each existing school
120     district;
121          (D) the State Board of Education; and
122          (E) other interested parties;
123          (ii) review data and gather information on at least:
124          (A) the financial viability of the proposed new school district;
125          (B) the proposal's financial impact on each existing school district;
126          (C) the exact placement of school district boundaries; and
127          (D) the positive and negative effects of creating a new school district and whether the
128     positive effects outweigh the negative if a new school district were to be created; and
129          (iii) make a report to the county legislative body in a public meeting on the committee's
130     activities, together with a recommendation on whether to create a new school district.
131          (4) For a request or petition submitted under Subsection (2)(a)(i) or (2)(a)(ii):
132          (a) The county legislative body shall provide for a 45-day public comment period on
133     the report and recommendation to begin on the day the report is given under Subsection
134     (3)(b)(iii).
135          (b) Within 14 days after the end of the comment period, the legislative body of each
136     county with which a request or petition is filed shall vote on the creation of the proposed new
137     school district.
138          (c) The proposal is approved if a majority of the members of the legislative body of
139     each county with which a request or petition is filed votes in favor of the proposal.
140          (d) If the proposal is approved, the legislative body of each county with which a
141     request or petition is filed shall submit the proposal to the county clerk to be voted on:
142          (i) by the legal voters of each existing school district;
143          (ii) in accordance with the procedures and requirements applicable to a regular general
144     election under Title 20A, Election Code; and
145          (iii) at the next regular general election or municipal general election, whichever is
146     first.
147          (e) Creation of the new school district shall occur if a majority of the electors within
148     both the proposed school district and each remaining school district voting on the proposal vote
149     in favor of the creation of the new district.
150          (f) Each county legislative body shall comply with the requirements of Section
151     53A-2-101.5.
152          (g) If a proposal submitted under Subsection (2)(a)(i) or (ii) to create a new district is
153     approved by the electors, the existing district's documented costs to study and implement the
154     proposal shall be reimbursed by the new district.
155          (5) (a) If a proposal submitted under Subsection (2)(a)(iii) is certified under Subsection
156     (2)(f) or (g), the legislative body of each county in which part of the proposed new school
157     district is located shall submit the proposal to the respective clerk of each county to be voted
158     on:
159          (i) by the legal voters residing within the proposed new school district boundaries;
160          (ii) in accordance with the procedures and requirements applicable to a regular general
161     election under Title 20A, Election Code; and
162          (iii) at the next regular general election or municipal general election, whichever is
163     first.
164          (b) (i) If a majority of the legal voters within the proposed new school district
165     boundaries voting on the proposal at an election under Subsection (5)(a) vote in favor of the
166     creation of the new district:
167          (A) each county legislative body shall comply with the requirements of Section
168     53A-2-101.5; and
169          (B) upon the lieutenant governor's issuance of the certificate under Section 67-1a-6.5,
170     the new district is created.
171          (ii) Notwithstanding the creation of a new district as provided in Subsection
172     (5)(b)(i)(B):
173          (A) a new school district may not begin to provide educational services to the area
174     within the new district until July 1 of the second calendar year following the school board
175     general election date described in Subsection 53A-2-118.1[(3)](5)(a)(i);
176          (B) a remaining district may not begin to provide educational services to the area
177     within the remaining district until the time specified in Subsection (5)(b)(ii)(A); and
178          (C) each existing district shall continue, until the time specified in Subsection
179     (5)(b)(ii)(A), to provide educational services within the entire area covered by the existing
180     district.
181          Section 3. Section 53A-2-118.1 is amended to read:
182          53A-2-118.1. Proposal initiated by a city or interlocal agreement participants to
183     create a school district -- Boundaries -- Election of local school board members --
184     Allocation of assets and liabilities -- Startup costs -- Transfer of title.
185          (1) As used in this section a "qualifying city" means a city with a population of at least
186     50,000, as determined by the lieutenant governor using the process described in Subsection
187     67-1a-2(3).
188          [(1)] (2) (a) [After conducting a feasibility study, a city with a population of at least
189     50,000, as determined by the lieutenant governor using the process described in Subsection
190     67-1a-2(3),] A qualifying city may, by majority vote of the legislative body, submit for voter
191     approval a [measure] proposal to create a new school district with boundaries contiguous with
192     that city's boundaries, in accordance with Section 53A-2-118.
193          (b) Prior to submitting for voter approval a proposal to create a new school district, a
194     qualifying city shall conduct a feasibility study in accordance with Subsection (4).
195          (c) Except as provided in Subsection (2)(d), a qualifying city may not submit for voter
196     approval a proposal to create a new school district if the results of a feasibility study described
197     in Subsection (2)(b) show that the five-year projected average annual revenue calculated under
198     Subsection (4)(a) exceeds the five-year projected average annual cost under Subsection (4)(b)
199     by more than 5%.
200          (d) Subsection (2)(c) does not apply to a proposal submitted by a qualifying city if the
201     qualifying city has entered into an interlocal cooperation agreement:
202          (i) (A) with the existing school district and all municipalities within the existing school
203     district regarding mutual goals for the governance of the school district; and
204          (B) in accordance with Title 11, Chapter 13, Interlocal Cooperation Act; and
205          (ii) on or before January 1, 2016.
206          [(b)] (e) (i) [The] Subject to Subsections (2)(c) and (4), the determination of all matters
207     relating to the scope, adequacy, and other aspects of a feasibility study [under Subsection
208     (1)(a)] is within the exclusive discretion of the city's legislative body.
209          (ii) An inadequacy of a feasibility study under Subsection [(1)(a)] (4) may not be the
210     basis of a legal action or other challenge to:
211          (A) an election for voter approval of the creation of a new school district; or
212          (B) the creation of the new school district.
213          [(2)] (3) (a) By majority vote of the legislative body, a city of any class, a town, or a
214     county, may, together with one or more other cities, towns, or the county enter into an
215     interlocal agreement, in accordance with Title 11, Chapter 13, Interlocal Cooperation Act, for
216     the purpose of submitting for voter approval a [measure] proposal to create a new school
217     district.
218          (b) (i) In accordance with Section 53A-2-118, interlocal agreement participants under
219     Subsection [(2)] (3)(a) may submit a proposal for voter approval if:
220          (A) the interlocal agreement participants conduct a feasibility study, in accordance with
221     Subsection (4), prior to submitting the proposal [to the county] for voter approval;
222          (B) except as provided in Subsection (3)(b)(ii), the results of the feasibility study
223     described in Subsection (3)(b)(i)(A) show that the five-year projected average annual revenue
224     calculated under Subsection (4)(a) does not exceed the five-year projected average annual cost
225     calculated under Subsection (4)(b) by more than 5%;
226          [(B)] (C) the combined population within the proposed new school district boundaries
227     is at least 50,000;
228          [(C)] (D) the new school district boundaries:
229          (I) are contiguous;
230          (II) 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)]
233     (3)(d)(iii);
234          (III) include the entire boundaries of each participant city or town, except as provided
235     in Subsection [(2)] (3)(d)(ii); and
236          (IV) subject to Subsection [(2)] (3)(b)[(ii)](v), do not cross county lines; and
237          [(D)] (E) the combined population within the proposed new school district of interlocal
238     agreement participants that have entered into an interlocal agreement proposing to create a new
239     school district is at least 80% of the total population of the proposed new school district.
240          (ii) Subsection (3)(b)(i)(B) does not apply to a proposal submitted by interlocal
241     agreement participants if the interlocal agreement participants have entered into an interlocal
242     cooperation agreement:
243          (A) (I) with the existing school district and all municipalities within the existing school
244     district regarding mutual goals for the governance of the school district; and
245          (II) in accordance with Title 11, Chapter 13, Interlocal Cooperation Act; and
246          (B) on or before January 1, 2016.
247          [(ii) The] (iii) Subject to Subsections (3)(b)(i)(A) and (4), the determination of all
248     matters relating to the scope, adequacy, and other aspects of a feasibility study [under
249     Subsection (2)(b)(i)(A)], including whether to conduct a new feasibility study or revise a
250     previous feasibility study due to a change in the proposed new school district boundaries, is
251     within the exclusive discretion of the legislative bodies of the interlocal agreement participants
252     that enter into an interlocal agreement to submit for voter approval a measure to create a new
253     school district.
254          [(iii)] (iv) An inadequacy of a feasibility study under Subsection [(2)(b)(i)(A)] (4) may
255     not be the basis of a legal action or other challenge to:
256          (A) an election for voter approval of the creation of a new school district; or
257          (B) the creation of the new school district.
258          [(iv)] (v) For purposes of determining whether the boundaries of a proposed new
259     school district cross county lines under Subsection [(2)(b)(i)(C)(IV)] (3)(b)(i)(D)(IV):
260          (A) a municipality located in more than one county and entirely within the boundaries
261     of a single school district is considered to be entirely within the same county as other
262     participants in an interlocal agreement under Subsection [(2)] (3)(a) if more of the
263     municipality's land area and population is located in that same county than outside the county;
264     and
265          (B) a municipality located in more than one county that participates in an interlocal
266     agreement under Subsection [(2)] (3)(a) with respect to some but not all of the area within the
267     municipality's boundaries on the basis of the exception stated in Subsection [(2)] (3)(d)(ii)(B)
268     may not be considered to cross county lines.
269          (c) (i) A county may only participate in an interlocal agreement under this Subsection
270     [(2)] (3) for the unincorporated areas of the county.
271          (ii) Boundaries of a new school district created under this section may include:
272          (A) a portion of one or more existing school districts; and
273          (B) a portion of the unincorporated area of a county, including a portion of a township.
274          (d) (i) As used in this Subsection [(2)] (3)(d):
275          (A) "Isolated area" means an area that:
276          (I) is entirely within the boundaries of a municipality that, except for that area, is
277     entirely within a school district different than the school district in which the area is located;
278     and
279          (II) would, because of the creation of a new school district from the existing district in
280     which the area is located, become completely geographically isolated.
281          (B) "Municipality's school district" means the school district that includes all of the
282     municipality in which the isolated area is located except the isolated area.
283          (ii) Notwithstanding Subsection [(2)(b)(i)(C)(III)] (3)(b)(i)(D)(III), a municipality may
284     be a participant in an interlocal agreement under Subsection [(2)] (3)(a) with respect to some
285     but not all of the area within the municipality's boundaries if:
286          (A) the portion of the municipality proposed to be included in the new school district
287     would, if not included, become an isolated area upon the creation of the new school district; or
288          (B) (I) the portion of the municipality proposed to be included in the new school
289     district is within the boundaries of the same school district that includes the other interlocal
290     agreement participants; and
291          (II) the portion of the municipality proposed to be excluded from the new school
292     district is within the boundaries of a school district other than the school district that includes
293     the other interlocal agreement participants.
294          (iii) (A) Notwithstanding Subsection [(2)(b)(i)(C)(II)] (3)(b)(i)(D)(II), a proposal to
295     create a new school district may be submitted for voter approval pursuant to an interlocal
296     agreement under Subsection [(2)] (3)(a), even though the new school district boundaries would
297     create an isolated area, if:
298          (I) the potential isolated area is contiguous to one or more of the interlocal agreement
299     participants;
300          (II) the interlocal participants submit a written request to the municipality in which the
301     potential isolated area is located, requesting the municipality to enter into an interlocal
302     agreement under Subsection [(2)] (3)(a) that proposes to submit for voter approval a measure to
303     create a new school district that includes the potential isolated area; and
304          (III) 90 days after a request under Subsection [(2)] (3)(d)(iii)(A)(II) is submitted, the
305     municipality has not entered into an interlocal agreement as requested in the request.
306          (B) Each municipality receiving a request under Subsection [(2)] (3)(d)(iii)(A)(II) shall
307     hold one or more public hearings to allow input from the public and affected school districts
308     regarding whether or not the municipality should enter into an interlocal agreement with
309     respect to the potential isolated area.
310          (C) (I) This Subsection [(2)] (3)(d)(iii)(C) applies if:
311          (Aa) a new school district is created under this section after a measure is submitted to
312     voters based on the authority of Subsection [(2)] (3)(d)(iii)(A); and
313          (Bb) the creation of the new school district results in an isolated area.
314          (II) The isolated area shall, on July 1 of the second calendar year following the local
315     school board general election date described in Subsection [(3)] (5)(a)(i), become part of the
316     municipality's school district.
317          (III) Unless the isolated area is the only remaining part of the existing district, the
318     process described in Subsection [(4)] (6) shall be modified to:
319          (Aa) include a third transition team, appointed by the local school board of the
320     municipality's school district, to represent that school district; and
321          (Bb) require allocation of the existing district's assets and liabilities among the new
322     district, the remaining district, and the municipality's school district.
323          (IV) The existing district shall continue to provide educational services to the isolated
324     area until July 1 of the second calendar year following the local school board general election
325     date described in Subsection [(3)] (5)(a)(i).
326          (4) A qualifying city or interlocal agreement participant shall ensure that a feasibility
327     study under this section:
328          (a) considers the present revenues of the area within the proposed new school district
329     and calculates the five-year projected average annual revenue for the proposed new school
330     district;
331          (b) considers the present costs of the area within the proposed new school district and
332     calculates the five-year projected average annual cost, including overhead, of governmental
333     services in the proposed new school district, including:
334          (i) operation and maintenance;
335          (ii) capital outlay;
336          (iii) debt service; and
337          (iv) school lunch;
338          (c) assumes a level and quality of school district services to be provided to the
339     proposed new school district in the future that fairly and reasonably approximates the level and
340     quality of school district services being provided to the existing school district at the time of
341     the feasibility study; and
342          (d) assumes the same tax categories and tax rates as currently imposed by the existing
343     school district.
344          [(3)] (5) (a) If a proposal under this section is approved by voters:
345          (i) an election shall be held at the next regular general election to elect:
346          (A) members to the local school board of the existing school district whose terms are
347     expiring;
348          (B) all members to the local school board of the new school district; and
349          (C) all members to the local school board of the remaining district;
350          (ii) the assets and liabilities of the existing school district shall be divided between the
351     remaining school district and the new school district as provided in Subsection [(5)] (7) and
352     Section 53A-2-121;
353          (iii) transferred employees shall be treated in accordance with Sections 53A-2-116 and
354     53A-2-122;
355          (iv) (A) an individual residing within the boundaries of a new school district at the
356     time the new school district is created may, for six school years after the creation of the new
357     school district, elect to enroll in a secondary school located outside the boundaries of the new
358     school district if:
359          (I) the individual resides within the boundaries of that secondary school as of the day
360     before the new school district is created; and
361          (II) the individual would have been eligible to enroll in that secondary school had the
362     new school district not been created; and
363          (B) the school district in which the secondary school is located shall provide
364     educational services, including, if provided before the creation of the new school district,
365     busing, to each individual making an election under Subsection [(3)] (5)(a)(iv)(A) for each
366     school year for which the individual makes the election; and
367          (v) within one year after the new district begins providing educational services, the
368     superintendent of each remaining district affected and the superintendent of the new district
369     shall meet, together with the Superintendent of Public Instruction, to determine if further
370     boundary changes should be proposed in accordance with Section 53A-2-104.
371          (b) (i) The terms of the initial members of the local school board of the new district and
372     remaining district shall be staggered and adjusted by the county legislative body so that
373     approximately half of the local school board is elected every two years.
374          (ii) The term of a member of the existing local school board, including a member
375     elected under Subsection [(3)] (5)(a)(i)(A), terminates on July 1 of the second year after the
376     local school board general election date described in Subsection [(3)] (5)(a)(i), regardless of
377     when the term would otherwise have terminated.
378          (iii) Notwithstanding the existence of a local school board for the new district and a
379     local school board for the remaining district under Subsection [(3)] (5)(a)(i), the local school
380     board of the existing district shall continue, until the time specified in Subsection
381     53A-2-118(5)(b)(ii)(A), to function and exercise authority as a local school board to the extent
382     necessary to continue to provide educational services to the entire existing district.
383          (iv) A person may simultaneously serve as or be elected to be a member of the local
384     school board of an existing district and a member of the local school board of:
385          (A) a new district; or
386          (B) a remaining district.
387          [(4)] (6) (a) Within 45 days after the canvass date for the election at which voters
388     approve the creation of a new district:
389          (i) a transition team to represent the remaining district shall be appointed by the
390     members of the existing local school board who reside within the area of the remaining district,
391     in consultation with:
392          (A) the legislative bodies of all municipalities in the area of the remaining district; and
393          (B) the legislative body of the county in which the remaining district is located, if the
394     remaining district includes one or more unincorporated areas of the county; and
395          (ii) another transition team to represent the new district shall be appointed by:
396          (A) for a new district located entirely within the boundaries of a single city, the
397     legislative body of that city; or
398          (B) for each other new district, the legislative bodies of all interlocal agreement
399     participants.
400          (b) The local school board of the existing school district shall, within 60 days after the
401     canvass date for the election at which voters approve the creation of a new district:
402          (i) prepare an inventory of the existing district's:
403          (A) assets, both tangible and intangible, real and personal; and
404          (B) liabilities; and
405          (ii) deliver a copy of the inventory to each of the transition teams.
406          (c) The transition teams appointed under Subsection [(4)] (6)(a)(i) shall:
407          (i) determine the allocation of the existing district's assets and, except for indebtedness
408     under Section 53A-2-121, liabilities between the remaining district and the new district in
409     accordance with Subsection [(5)] (7);
410          (ii) prepare a written report detailing how the existing district's assets and, except for
411     indebtedness under Section 53A-2-121, liabilities are to be allocated; and
412          (iii) deliver a copy of the written report to:
413          (A) the local school board of the existing district;
414          (B) the local school board of the remaining district; and
415          (C) the local school board of the new district.
416          (d) The transition teams shall determine the allocation under Subsection [(4)] (6)(c)(i)
417     and deliver the report required under Subsection [(4)] (6)(c)(ii) before August 1 of the year
418     following the election at which voters approve the creation of a new district, unless that
419     deadline is extended by the mutual agreement of:
420          (i) the local school board of the existing district; and
421          (ii) (A) the legislative body of the city in which the new district is located, for a new
422     district located entirely within a single city; or
423          (B) the legislative bodies of all interlocal agreement participants, for each other new
424     district.
425          (e) (i) All costs and expenses of the transition team that represents a remaining district
426     shall be borne by the remaining district.
427          (ii) All costs and expenses of the transition team that represents a new district shall
428     initially be borne by:
429          (A) the city whose legislative body appoints the transition team, if the transition team
430     is appointed by the legislative body of a single city; or
431          (B) the interlocal agreement participants, if the transition team is appointed by the
432     legislative bodies of interlocal agreement participants.
433          (iii) The new district may, to a maximum of $500,000, reimburse the city or interlocal
434     agreement participants for:
435          (A) transition team costs and expenses; and
436          (B) startup costs and expenses incurred by the city or interlocal agreement participants
437     on behalf of the new district.
438          [(5)] (7) (a) As used in this Subsection [(5)] (7):
439          (i) "Associated property" means furniture, equipment, or supplies located in or
440     specifically associated with a physical asset.
441          (ii) (A) "Discretionary asset or liability" means, except as provided in Subsection [(5)]
442     (7)(a)(ii)(B), an asset or liability that is not tied to a specific project, school, student, or
443     employee by law or school district accounting practice.
444          (B) "Discretionary asset or liability" does not include a physical asset, associated
445     property, a vehicle, or bonded indebtedness.
446          (iii) (A) "Nondiscretionary asset or liability" means, except as provided in Subsection
447     [(5)] (7)(a)(iii)(B), an asset or liability that is tied to a specific project, school, student, or
448     employee by law or school district accounting practice.
449          (B) "Nondiscretionary asset or liability" does not include a physical asset, associated
450     property, a vehicle, or bonded indebtedness.
451          (iv) "Physical asset" means a building, land, or water right together with revenue
452     derived from the lease or use of the building, land, or water right.
453          (b) Except as provided in Subsection [(5)] (7)(c), the transition teams appointed under
454     Subsection [(4)] (6)(a)(i) shall allocate all assets and liabilities the existing district owns on the
455     allocation date, both tangible and intangible, real and personal, to the new district and
456     remaining district as follows:
457          (i) a physical asset and associated property shall be allocated to the school district in
458     which the physical asset is located;
459          (ii) a discretionary asset or liability shall be allocated between the new district and
460     remaining district in proportion to the student populations of the school districts;
461          (iii) a nondiscretionary asset shall be allocated to the school district where the project,
462     school, student, or employee to which the nondiscretionary asset is tied will be located;
463          (iv) vehicles used for pupil transportation shall be allocated:
464          (A) according to the transportation needs of schools, as measured by the number and
465     assortment of vehicles used to serve transportation routes serving schools within the new
466     district and remaining district; and
467          (B) in a manner that gives each school district a fleet of vehicles for pupil
468     transportation that is equivalent in terms of age, condition, and variety of carrying capacities;
469     and
470          (v) other vehicles shall be allocated:
471          (A) in proportion to the student populations of the school districts; and
472          (B) in a manner that gives each district a fleet of vehicles that is similar in terms of age,
473     condition, and carrying capacities.
474          (c) By mutual agreement, the transition teams may allocate an asset or liability in a
475     manner different than the allocation method specified in Subsection [(5)] (7)(b).
476          [(6)] (8) (a) As used in this Subsection [(6)] (8):
477          (i) "New district startup costs" means:
478          (A) costs and expenses incurred by a new district in order to prepare to begin providing
479     educational services on July 1 of the second calendar year following the local school board
480     general election date described in Subsection [(3)] (5)(a)(i); and
481          (B) the costs and expenses of the transition team that represents the new district.
482          (ii) "Remaining district startup costs" means:
483          (A) costs and expenses incurred by a remaining district in order to:
484          (I) make necessary adjustments to deal with the impacts resulting from the creation of
485     the new district; and
486          (II) prepare to provide educational services within the remaining district once the new
487     district begins providing educational services within the new district; and
488          (B) the costs and expenses of the transition team that represents the remaining district.
489          (b) (i) By January 1 of the year following the local school board general election date
490     described in Subsection [(3)] (5)(a)(i), the existing district shall make half of the undistributed
491     reserve from its General Fund, to a maximum of $9,000,000, available for the use of the
492     remaining district and the new district, as provided in this Subsection [(6)] (8).
493          (ii) The existing district may make additional funds available for the use of the
494     remaining district and the new district beyond the amount specified in Subsection [(6)] (8)(b)(i)
495     through an interlocal agreement.
496          (c) The existing district shall make the money under Subsection [(6)] (8)(b) available
497     to the remaining district and the new district proportionately based on student population.
498          (d) The money made available under Subsection [(6)] (8)(b) may be accessed and spent
499     by:
500          (i) for the remaining district, the local school board of the remaining district; and
501          (ii) for the new district, the local school board of the new district.
502          (e) (i) The remaining district may use its portion of the money made available under
503     Subsection [(6)] (8)(b) to pay for remaining district startup costs.
504          (ii) The new district may use its portion of the money made available under Subsection
505     [(6)] (8)(b) to pay for new district startup costs.
506          [(7)] (9) (a) The existing district shall transfer title or, if applicable, partial title of
507     property to the new school district in accordance with the allocation of property by the
508     transition teams, as stated in the report under Subsection [(4)] (6)(c)(ii).
509          (b) The existing district shall complete each transfer of title or, if applicable, partial
510     title to real property and vehicles by July 1 of the second calendar year following the local
511     school board general election date described in Subsection [(3)] (5)(a)(i), except as that date is
512     changed by the mutual agreement of:
513          (i) the local school board of the existing district;
514          (ii) the local school board of the remaining district; and
515          (iii) the local school board of the new district.
516          (c) The existing district shall complete the transfer of all property not included in
517     Subsection [(7)] (9)(b) by November 1 of the second calendar year after the local school board
518     general election date described in Subsection [(3)] (5)(a)(i).
519          [(8)] (10) Except as provided in Subsections [(6)] (8) and [(7)] (9), after the creation
520     election date an existing school district may not transfer or agree to transfer title to district
521     property without the prior consent of:
522          (a) the legislative body of the city in which the new district is located, for a new district
523     located entirely within a single city; or
524          (b) the legislative bodies of all interlocal agreement participants, for each other new
525     district.
526          [(9)] (11) This section does not apply to the creation of a new district initiated through
527     a citizens' initiative petition or at the request of a local school board under Section 53A-2-118.
528          Section 4. Section 53A-2-120 is amended to read:
529          53A-2-120. Transfer of school property to new school district.
530          (1) (a) (i) On July 1 of the year following the school board elections for a new district
531     created pursuant to a citizens' initiative petition or school board request under Section
532     53A-2-118 and an existing district as provided in Section 53A-2-119, the board of the existing
533     district shall convey and deliver to the board of the new district all school property which the
534     new district is entitled to receive.
535          (ii) Any disagreements as to the disposition of school property shall be resolved by the
536     county legislative body.
537          (iii) Subsection (1)(a)(ii) does not apply to disagreements between transition teams
538     about the proper allocation of property under Subsection 53A-2-118.1[(4)](6).
539          (b) An existing district shall transfer property to a new district created under Section
540     53A-2-118.1 in accordance with Section 53A-2-118.1.
541          (2) Title vests in the new school board, including all rights, claims, and causes of
542     action to or for the property, for the use or the income from the property, for conversion,
543     disposition, or withholding of the property, or for any damage or injury to the property.
544          (3) The new school board may bring and maintain actions to recover, protect, and
545     preserve the property and rights of the district's schools and to enforce contracts.