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7 LONG TITLE
8 General Description:
9 This bill amends and creates certain processes and requirements regarding school
10 district creation.
11 Highlighted Provisions:
12 This bill:
13 ▸ defines terms;
14 ▸ amends and creates certain processes, timelines, and requirements regarding school
15 district creation;
16 ▸ requires a feasibility study before a school district creation;
17 ▸ requires a feasibility study to be posted online and for public comment;
18 ▸ allows for the use of a special election to elect certain school board members;
19 ▸ allows for a legislative body to assist a new school district in securing funds for
20 startup costs;
21 ▸ increases the distribution amount of funds allowed for a new school district; and
22 ▸ makes technical and conforming changes.
23 Money Appropriated in this Bill:
24 None
25 Other Special Clauses:
26 None
27 Utah Code Sections Affected:
28 AMENDS:
29 20A-1-203, as last amended by Laws of Utah 2020, Chapter 47
30 36-12-15, as last amended by Laws of Utah 2023, Chapter 21
31 53G-3-102, as renumbered and amended by Laws of Utah 2018, Chapter 3
32 53G-3-202, as last amended by Laws of Utah 2023, Chapter 252
33 53G-3-203, as renumbered and amended by Laws of Utah 2018, Chapter 3
34 53G-3-303, as renumbered and amended by Laws of Utah 2018, Chapter 3
35 53G-3-304, as last amended by Laws of Utah 2023, Chapter 7
36 53G-3-305, as last amended by Laws of Utah 2022, Chapter 265
37 53G-3-306, as last amended by Laws of Utah 2019, Chapter 293
38 53G-3-307, as last amended by Laws of Utah 2019, Chapter 293
39 53G-3-308, as last amended by Laws of Utah 2019, Chapter 293
40 ENACTS:
41 53G-3-301.1, Utah Code Annotated 1953
42 53G-3-301.2, Utah Code Annotated 1953
43 53G-3-301.3, Utah Code Annotated 1953
44 53G-3-301.4, Utah Code Annotated 1953
45 REPEALS AND REENACTS:
46 53G-3-301, as last amended by Laws of Utah 2023, Chapter 116
47 53G-3-302, as last amended by Laws of Utah 2019, Chapter 293
48
49 Be it enacted by the Legislature of the state of Utah:
50 Section 1. Section 20A-1-203 is amended to read:
51 20A-1-203. Calling and purpose of special elections -- Two-thirds vote
52 limitations.
53 (1) Statewide and local special elections may be held for any purpose authorized by
54 law.
55 (2) (a) Statewide special elections shall be conducted using the procedure for regular
56 general elections.
57 (b) Except as otherwise provided in this title, local special elections shall be conducted
58 using the procedures for regular municipal elections.
59 (3) The governor may call a statewide special election by issuing an executive order
60 that designates:
61 (a) the date for the statewide special election; and
62 (b) the purpose for the statewide special election.
63 (4) The Legislature may call a statewide special election by passing a joint or
64 concurrent resolution that designates:
65 (a) the date for the statewide special election; and
66 (b) the purpose for the statewide special election.
67 (5) (a) The legislative body of a local political subdivision may call a local special
68 election only for:
69 (i) a vote on a bond or debt issue;
70 (ii) a vote on a voted local levy authorized by Section 53F-8-402 or 53F-8-301;
71 (iii) an initiative authorized by Chapter 7, Part 5, Local Initiatives - Procedures;
72 (iv) a referendum authorized by Chapter 7, Part 6, Local Referenda - Procedures;
73 (v) if required or authorized by federal law, a vote to determine whether Utah's legal
74 boundaries should be changed;
75 (vi) a vote authorized or required by Title 59, Chapter 12, Sales and Use Tax Act;
76 (vii) a vote to elect members to school district boards for a new school district and a
77 [
78 creation of a new school district under Section 53G-3-302;
79 (viii) a vote on a municipality providing cable television services or public
80 telecommunications services under Section 10-18-204;
81 (ix) a vote to create a new county under Section 17-3-1;
82 (x) a vote on a special property tax under Section 53F-8-402;
83 (xi) a vote on the incorporation of a municipality in accordance with Section
84 10-2a-210; or
85 (xii) a vote on incorporation or annexation as described in Section 10-2a-404.
86 (b) The legislative body of a local political subdivision may call a local special election
87 by adopting an ordinance or resolution that designates:
88 (i) the date for the local special election as authorized by Section 20A-1-204; and
89 (ii) the purpose for the local special election.
90 (c) A local political subdivision may not call a local special election unless the
91 ordinance or resolution calling a local special election under Subsection (5)(b) is adopted by a
92 two-thirds majority of all members of the legislative body, if the local special election is for:
93 (i) a vote on a bond or debt issue as described in Subsection (5)(a)(i);
94 (ii) a vote on a voted leeway or levy program as described in Subsection (5)(a)(ii); or
95 (iii) a vote authorized or required for a sales tax issue as described in Subsection
96 (5)(a)(vi).
97 Section 2. Section 36-12-15 is amended to read:
98 36-12-15. Office of the Legislative Auditor General established -- Qualifications --
99 Powers, functions, and duties -- Reporting -- Criminal penalty -- Employment.
100 (1) As used in this section:
101 (a) "Entity" means:
102 (i) a government organization; or
103 (ii) a receiving organization.
104 (b) "Government organization" means:
105 (i) a state branch, department, or agency; or
106 (ii) a political subdivision, including a county, municipality, special district, special
107 service district, school district, interlocal entity as defined in Section 11-13-103, or any other
108 local government unit.
109 (c) "Receiving organization" means an organization that receives public funds that is
110 not a government organization.
111 (2) There is created the Office of the Legislative Auditor General as a permanent staff
112 office for the Legislature.
113 (3) The legislative auditor general shall be a licensed certified public accountant or
114 certified internal auditor with at least seven years of experience in the auditing or public
115 accounting profession, or the equivalent, prior to appointment.
116 (4) The legislative auditor general shall appoint and develop a professional staff within
117 budget limitations.
118 (5) The Office of the Legislative Auditor General shall exercise the constitutional
119 authority provided in Utah Constitution, Article VI, Section 33.
120 (6) Under the direction of the legislative auditor general, the Office of the Legislative
121 Auditor General shall:
122 (a) conduct comprehensive and special purpose audits, examinations, investigations, or
123 reviews of entity funds, functions, and accounts;
124 (b) prepare and submit a written report on each audit, examination, investigation, or
125 review to the Audit Subcommittee created in Section 36-12-8 and make the report available to
126 all members of the Legislature within 75 days after the audit, examination, investigation, or
127 review is completed;
128 (c) monitor, conduct a risk assessment of, or audit any efficiency evaluations that the
129 legislative auditor general determines necessary, in accordance with Title 63J, Chapter 1, Part
130 9, Government Performance Reporting and Efficiency Process, and legislative rule;
131 (d) create, manage, and report to the Audit Subcommittee a list of high risk programs
132 and operations that:
133 (i) threaten public funds or programs;
134 (ii) are vulnerable to inefficiency, waste, fraud, abuse, or mismanagement; or
135 (iii) require transformation;
136 (e) monitor and report to the Audit Subcommittee the health of a government
137 organization's internal audit functions;
138 (f) make recommendations to increase the independence and value added of internal
139 audit functions throughout the state;
140 (g) implement a process to track, monitor, and report whether the subject of an audit
141 has implemented recommendations made in the audit report;
142 (h) establish, train, and maintain individuals within the office to conduct investigations
143 and represent themselves as lawful investigators on behalf of the office;
144 (i) establish policies, procedures, methods, and standards of audit work and
145 investigations for the office and staff;
146 (j) prepare and submit each audit and investigative report independent of any influence
147 external of the office, including the content of the report, the conclusions reached in the report,
148 and the manner of disclosing the legislative auditor general's findings;
149 (k) prepare and submit the annual budget request for the office; and
150 (l) perform other duties as prescribed by the Legislature.
151 (7) In conducting an audit, examination, investigation, or review of an entity, the
152 Office of the Legislative Auditor General may include a determination of any or all of the
153 following:
154 (a) the honesty and integrity of any of the entity's fiscal affairs;
155 (b) the accuracy and reliability of the entity's internal control systems and specific
156 financial statements and reports;
157 (c) whether or not the entity's financial controls are adequate and effective to properly
158 record and safeguard the entity's acquisition, custody, use, and accounting of public funds;
159 (d) whether the entity's administrators have complied with legislative intent;
160 (e) whether the entity's operations have been conducted in an efficient, effective, and
161 cost efficient manner;
162 (f) whether the entity's programs have been effective in accomplishing intended
163 objectives; and
164 (g) whether the entity's management control and information systems are adequate and
165 effective.
166 (8) (a) If requested by the Office of the Legislative Auditor General, each entity that the
167 legislative auditor general is authorized to audit under Utah Constitution, Article VI,
168 Section 33, or this section shall, notwithstanding any other provision of law except as provided
169 in Subsection (8)(b), provide the office with access to information, materials, or resources the
170 office determines are necessary to conduct an audit, examination, investigation, or review,
171 including:
172 (i) the following in the possession or custody of the entity in the format identified by
173 the office:
174 (A) a record, document, and report; and
175 (B) films, tapes, recordings, and electronically stored information;
176 (ii) entity personnel; and
177 (iii) each official or unofficial recording of formal or informal meetings or
178 conversations to which the entity has access.
179 (b) To the extent compliance would violate federal law, the requirements of Subsection
180 (8)(a) do not apply.
181 (9) (a) In carrying out the duties provided for in this section and under Utah
182 Constitution, Article VI, Section 33, the legislative auditor general may issue a subpoena to
183 access information, materials, or resources in accordance with Chapter 14, Legislative
184 Subpoena Powers.
185 (b) The legislative auditor general may issue a subpoena, as described in Subsection
186 (9)(a), to a financial institution or any other entity to obtain information as part of an
187 investigation of fraud, waste, or abuse, including any suspected malfeasance, misfeasance, or
188 nonfeasance involving public funds.
189 (10) To preserve the professional integrity and independence of the office:
190 (a) no legislator or public official may urge the appointment of any person to the office;
191 and
192 (b) the legislative auditor general may not be appointed to serve on any board,
193 authority, commission, or other agency of the state during the legislative auditor general's term
194 as legislative auditor general.
195 (11) (a) The following records in the custody or control of the legislative auditor
196 general are protected records under Title 63G, Chapter 2, Government Records Access and
197 Management Act:
198 (i) records and audit work papers that would disclose information relating to
199 allegations of personal misconduct, gross mismanagement, or illegal activity of a past or
200 present governmental employee if the information or allegation cannot be corroborated by the
201 legislative auditor general through other documents or evidence, and the records relating to the
202 allegation are not relied upon by the legislative auditor general in preparing a final audit report;
203 (ii) records and audit workpapers that would disclose the identity of a person who,
204 during the course of a legislative audit, communicated the existence of:
205 (A) unethical behavior;
206 (B) waste of public funds, property, or personnel; or
207 (C) a violation or suspected violation of a United States, Utah state, or political
208 subdivision law, rule, ordinance, or regulation, if the person disclosed on the condition that the
209 identity of the person be protected;
210 (iii) before an audit is completed and the final audit report is released, records or drafts
211 circulated to a person who is not an employee or head of an entity for review, response, or
212 information;
213 (iv) records that would disclose:
214 (A) an outline;
215 (B) all or part of an audit survey, audit risk assessment plan, or audit program; or
216 (C) other procedural documents necessary to fulfill the duties of the office; and
217 (v) requests for audits, if disclosure would risk circumvention of an audit.
218 (b) The provisions of Subsection (11)(a) do not prohibit the disclosure of records or
219 information to a government prosecutor or peace officer if those records or information relate
220 to a violation of the law by an entity or entity employee.
221 (c) A record, as defined in Section 63G-2-103, created by the Office of the Legislative
222 Auditor General in a closed meeting held in accordance with Section 52-4-205:
223 (i) is a protected record, as defined in Section 63G-2-103;
224 (ii) to the extent the record contains information:
225 (A) described in Section 63G-2-302, is a private record; or
226 (B) described in Section 63G-2-304, is a controlled record; and
227 (iii) may not be reclassified by the office.
228 (d) The provisions of this section do not limit the authority otherwise given to the
229 legislative auditor general to maintain the private, controlled, or protected record status of a
230 shared record in the legislative auditor general's possession or classify a document as public,
231 private, controlled, or protected under Title 63G, Chapter 2, Government Records Access and
232 Management Act.
233 (12) The legislative auditor general shall:
234 (a) be available to the Legislature and to the Legislature's committees for consultation
235 on matters relevant to areas of the legislative auditor general's professional competence;
236 (b) conduct special audits as requested by the Audit Subcommittee;
237 (c) report immediately to the Audit Subcommittee any apparent violation of penal
238 statutes disclosed by the audit of an entity and furnish to the Audit Subcommittee all
239 information relative to the apparent violation;
240 (d) report immediately to the Audit Subcommittee any apparent instances of
241 malfeasance or nonfeasance by an entity officer or employee disclosed by the audit of an entity;
242 and
243 (e) make any recommendations to the Audit Subcommittee with respect to the
244 alteration or improvement of the accounting system used by an entity.
245 (13) If the legislative auditor general conducts an audit of an entity that has previously
246 been audited and finds that the entity has not implemented a recommendation made by the
247 legislative auditor general in a previous audit, the legislative auditor general shall, upon release
248 of the audit:
249 (a) report immediately to the Audit Subcommittee that the entity has not implemented
250 that recommendation; and
251 (b) shall report, as soon as possible, that the entity has not implemented that
252 recommendation to an appropriate legislative committee designated by the Audit
253 Subcommittee.
254 (14) Before each annual general session, the legislative auditor general shall:
255 (a) prepare an annual report that:
256 (i) summarizes the audits, examinations, investigations, and reviews conducted by the
257 office since the last annual report; and
258 (ii) evaluate and report the degree to which an entity that has been the subject of an
259 audit has implemented the audit recommendations;
260 (b) include in the report any items and recommendations that the legislative auditor
261 general believes the Legislature should consider in the annual general session; and
262 (c) deliver the report to the Legislature and to the appropriate committees of the
263 Legislature.
264 (15) (a) If the chief officer of an entity has actual knowledge or reasonable cause to
265 believe that there is misappropriation of the entity's public funds or assets, or another entity
266 officer has actual knowledge or reasonable cause to believe that the chief officer is
267 misappropriating the entity's public funds or assets, the chief officer or, alternatively, the other
268 entity officer, shall immediately notify, in writing:
269 (i) the Office of the Legislative Auditor General;
270 (ii) the attorney general, county attorney, or district attorney; and
271 (iii) (A) for a state government organization, the chief executive officer;
272 (B) for a political subdivision government organization, the legislative body or
273 governing board; or
274 (C) for a receiving organization, the governing board or chief executive officer unless
275 the chief executive officer is believed to be misappropriating the funds or assets, in which case
276 the next highest officer of the receiving organization.
277 (b) As described in Subsection (15)(a), the entity chief officer or, if applicable, another
278 entity officer, is subject to the protections of Title 67, Chapter 21, Utah Protection of Public
279 Employees Act.
280 (c) If the Office of the Legislative Auditor General receives a notification under
281 Subsection (15)(a) or other information of misappropriation of public funds or assets of an
282 entity, the office shall inform the Audit Subcommittee.
283 (d) The attorney general, county attorney, or district attorney shall notify, in writing,
284 the Office of the Legislative Auditor General whether the attorney general, county attorney, or
285 district attorney pursued criminal or civil sanctions in the matter.
286 (16) (a) An actor commits interference with a legislative audit if the actor uses force,
287 violence, intimidation, or engages in any other unlawful act with a purpose to interfere with:
288 (i) a legislative audit, examination, investigation, or review of an entity conducted by
289 the Office of the Legislative Auditor General; or
290 (ii) the Office of the Legislative Auditor General's decisions relating to:
291 (A) the content of the office's report;
292 (B) the conclusions reached in the office's report; or
293 (C) the manner of disclosing the results and findings of the office.
294 (b) A violation of Subsection (16)(a) is a class B misdemeanor.
295 (17) (a) Beginning July 1, 2020, the Office of the Legislative Auditor General may
296 require any current employee, or any applicant for employment, to submit to a
297 fingerprint-based local, regional, and criminal history background check as an ongoing
298 condition of employment.
299 (b) An employee or applicant for employment shall provide a completed fingerprint
300 card to the office upon request.
301 (c) The Office of the Legislative Auditor General shall require that an individual
302 required to submit to a background check under this Subsection (17) also provide a signed
303 waiver on a form provided by the office that meets the requirements of Subsection
304 53-10-108(4).
305 (d) For a noncriminal justice background search and registration in accordance with
306 Subsection 53-10-108(13), the office shall submit to the Bureau of Criminal Identification:
307 (i) the employee's or applicant's personal identifying information and fingerprints for a
308 criminal history search of applicable local, regional, and national databases; and
309 (ii) a request for all information received as a result of the local, regional, and
310 nationwide background check.
311 (18) Subject to prioritization of the Legislative Audit Subcommittee, the Office of the
312 Legislative Auditor General shall conduct a feasibility study under Section 53G-3-301.1,
313 53G-3-301.2, 53G-3-301.3, or 53G-3-301.4.
314 Section 3. Section 53G-3-102 is amended to read:
315 53G-3-102. Definitions.
316 [
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337 As used in this chapter:(1) "Allocation date" means:
338 (a) July 1 of the second calendar year following the local school board general election
339 date or special election date as described in Section 53G-3-302; or
340 (b) another date to which the new local school board and reorganized school board
341 agree.
342 (2) "Creation date" means the date on which voters approve the creation of a new
343 school district under Section 53G-3-301.1, 53G-3-301.2, 53G-3-301.3, or 53G-3-301.4.
344 (3) "Divided school district" means:
345 (a) an existing school district from which a new school district is created under Section
346 53G-3-301.1, 53G-3-301.2, 53G-3-301.3, or 53G-3-301.4; and
347 (b) an existing school district from which a reorganized new school district is created.
348 (4) (a) "Feasibility study" means a study:
349 (i) conducted by:
350 (A) a school district, municipality legislative body, or interlocal agreement participants
351 before July 31, 2024; or
352 (B) the Office of the Legislative Auditor General, subject to prioritization by the
353 Legislative Audit Subcommittee; and
354 (ii) to determine:
355 (A) the financial viability for a new school district and reorganized new school district
356 that is contained within the boundaries of a divided school district;
357 (B) the financial impact on a new school district and reorganized new school district
358 that is contained within the boundaries of a divided school district; and
359 (C) the impact of the tax burden on taxpayers within the boundaries of the proposed
360 new school district.
361 (5) "Interlocal agreement participant" means a public agency, as that term is defined in
362 Section 11-13-103, that enters into an agreement with one or more other public agencies for the
363 purpose described in and in accordance with Title 11, Chapter 13, Interlocal Cooperation Act.
364 (6) "Isolated area" means an area that:
365 (a) is entirely within the boundaries of an existing school district;
366 (b) is contiguous to the proposed new school district;
367 (c) has a combined student population of fewer than 5,000 students; and
368 (d) because of the creation of a new school district from the existing district in which
369 the area is located, would become completely geographically isolated.
370 (7) "Municipality" means the same as that term is defined in Section 10-1-104.
371 (8) "New school district" means a school district created under Section 53G-3-301.1,
372 53G-3-301.2, 53G-3-301.3, or 53G-3-301.4.
373 (9) "Reorganized new school district" means the remaining portion of the divided
374 school district after the creation of a new school district under Subsection 53G-3-301.1,
375 53G-3-301.2, 53G-3-301.3, or 53G-3-301.4.
376 Section 4. Section 53G-3-202 is amended to read:
377 53G-3-202. School districts independent of municipal and county governments --
378 School district name -- Control of property.
379 (1) (a) Each school district shall be controlled by its local school board and shall be
380 independent of municipal and county governments.
381 (b) The name of each school district created after May 1, 2000, including a reorganized
382 new school district, shall comply with [
383 (2) The local school board shall have direction and control of all school property in the
384 district and may enter into cooperative agreements with other local school boards to provide
385 educational services that best utilize resources for overall operation of the public school
386 system.
387 (3) (a) On or before 30 days following the day on which the creation of a new school
388 district occurs under Section 53G-3-301.1, 53G-3-301.2, 53G-3-301.3, or 53G-3-301.4, and in
389 accordance with Section 67-1a-15, a new school district shall be registered as a limited purpose
390 entity by:
391 (i) the municipal legislative body in which the boundaries for the new school district is
392 entirely located; or
393 (ii) the legislative body of interlocal agreement participants in which the new school
394 district is located.
395 [
396 as a limited purpose entity[
397 [
398 (b) or Section 67-1a-15 is subject to enforcement by the state auditor[
399 Section 67-3-1.
400 Section 5. Section 53G-3-203 is amended to read:
401 53G-3-203. Filing of notice and plat relating to school district boundary changes
402 including creation, consolidation, division, or dissolution -- Recording requirements --
403 Effective date.
404 (1) The county legislative body shall[
405 on which the creation, consolidation, division, or dissolution of a school district occurs, file
406 with the lieutenant governor:
407 [
408 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
409 [
410 plat, as defined in Section 67-1a-6.5[
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412 certificate of boundary action under Section 67-1a-6.5, shall:
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414 boundary of a single county, submit to the recorder of that county:
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422 boundaries of more than a single county:
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433 67-1a-6.5, the creation, consolidation, division, dissolution, or other change affecting the
434 boundary of a new or [
435 action has legal effect.
436 (b) (i) As used in this Subsection [
437 (A) in the case of the creation of a school district, the area within the school district's
438 boundary;
439 (B) in the case of the consolidation of multiple school districts, the area within the
440 boundary of each school district that is consolidated into another school district;
441 (C) in the case of the division of a school district, the area within the boundary of the
442 school district created by the division; and
443 (D) in the case of an addition to an existing school district, the area added to the school
444 district.
445 (ii) [
446 date of a boundary action, as that term is defined in Section 17-23-20, [
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448 [
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451 (iii) A school district may not levy or collect a property tax on property within the
452 affected area until the county legislative body records the documents listed in Subsection (2) in
453 the office of the recorder of each county in which the property is located.
454 Section 6. Section 53G-3-301 is repealed and reenacted to read:
455 53G-3-301. Creation of new school district -- Initiation of process -- Procedures to
456 be followed.
457 (1) A new school district may be created from one or more existing school districts, as
458 provided in this chapter.
459 (2) The process to create a new school district may be initiated:
460 (a) through a citizens' initiative petition in accordance with Section 53G-3-301.1;
461 (b) at the request of the local school board of the divided district or districts to be
462 affected by the creation of the new district in accordance with Section 53G-3-301.2;
463 (c) at the request of a municipality within the boundaries of the school district in
464 accordance with Section 53G-3-301.3; or
465 (d) at the request of interlocal agreement participants in accordance with Section
466 53G-3-301.4.
467 (3) Except as provided in Sections 53G-3-301.3 and 53G-3-301.4, a request or petition
468 under Subsection (2) may not form a new school district unless the new school district
469 boundaries:
470 (a) are contiguous;
471 (b) do not completely surround or otherwise completely geographically isolate a
472 portion of the existing school district that is not part of the proposed new school district from
473 the remaining part of that existing school district; or
474 (c) include the entire boundaries of each participant municipality or town.
475 (4) For each new school district, each county legislative body shall comply with the
476 notice and plat filing requirements of Section 53G-3-203.
477 (5) If a new school district is created, the new district shall reimburse the reorganized
478 new district's documented costs to study and implement the proposal in proportion to the
479 student population of each school district.
480 (6) An inadequacy of a feasibility study, as defined in Section 53G-3-102, may not be
481 the basis of a legal action or other challenge to:
482 (a) an election for voter approval of the creation of a new school district; or
483 (b) the creation of the new school district.
484 (7) Notwithstanding the creation of a new district as provided in this part:
485 (a) a new school district and a reorganized new school district may not begin to
486 provide educational services to the area within the new school district and reorganized new
487 school district until July 1 of the second calendar year following the local school board election
488 date as described in Section 53G-3-301.1, 53G-3-301.2, 53G-3-301.3, or 53G-3-301.4; and
489 (b) the divided school district shall continue, until the time specified in Subsection
490 (7)(a), to provide educational services within the entire area covered by the divided school
491 district.
492 (8) A new school district and a reorganized new school district shall enter into a shared
493 services agreement that permits students residing in each new school district access to attend a
494 school that serves students with disabilities within or outside of each school district boundary:
495 (a) for up to five years;
496 (b) for actual costs of services provided to students; and
497 (c) without affecting services provided to other students.
498 (9) The process described in Subsection (2) may not be initiated more than once during
499 any two-year period.
500 Section 7. Section 53G-3-301.1 is enacted to read:
501 53G-3-301.1. Creation of a new school district -- Citizen's initiative petition --
502 Procedures to be followed.
503 (1) Citizens may initiate the creation of a new school district through a citizens'
504 initiative petition in accordance with this section and Section 53G-3-301.
505 (2) (a) The county clerk shall ensure that an initiative petition submitted under this
506 section is signed by registered voters residing within the geographical boundaries of the
507 proposed new school district in an amount equal to at least 10% of all votes cast within the
508 geographic boundaries of the proposed new school district for all candidates for president of
509 the United States at the last regular general election at which a president of the United States
510 was elected.
511 (b) The sponsors of a petition submitted under Subsection (2)(a) shall file a petition
512 with the clerk of each county in which any part of the proposed new school district is located.
513 (c) The petition sponsors shall ensure that the petition described in Subsection (2)(b):
514 (i) indicates the typed or printed name and current residence address of each governing
515 board member making a request, or registered voter signing a petition, as the case may be;
516 (ii) describes the proposed new school district boundaries; and
517 (iii) designates up to five signers of the petition or request as sponsors, designating one
518 as the contact sponsor, with the mailing address and telephone number of each.
519 (3) (a) (i) A signer of a petition described in Subsection (1) may withdraw or, once
520 withdrawn, reinstate the signer's signature by filing a written statement requesting for
521 withdrawal or reinstatement with the county clerk no later than three business days after the
522 day on which the petition is filed with the county clerk.
523 (ii) A statement described in Subsection (3)(a)(i) shall comply with the requirements
524 described in Subsection 20A-1-1003(2).
525 (iii) The county clerk shall use the procedures described in Subsection 20A-1-1003(3)
526 to determine whether to remove or reinstate an individual's signature from a petition after
527 receiving a timely, valid statement.
528 (b) The county clerk shall use the procedures described in Section 20A-1-1002 to
529 determine whether the petition has been signed by the required number of registered voters
530 residing within the geographical boundaries of the proposed new school district.
531 (4) Within 14 days after the day on which a petition described in Subsection (1) is
532 filed, the clerk of each county with which the request or petition is filed shall:
533 (a) determine whether the petition complies with Subsections (2) and (3), as applicable,
534 and Section 53G-3-301; and
535 (b) (i) if the county clerk determines that the request or petition complies with the
536 applicable requirements:
537 (A) certify the petition and deliver the certified petition to the county legislative body;
538 and
539 (B) mail or deliver written notification of the certification to the contact sponsor; or
540 (ii) if the county clerk determines that the petition fails to comply with any of the
541 applicable requirements, reject the petition and notify the contact sponsor in writing of the
542 rejection and reasons for the rejection.
543 (5) (a) If the county clerk fails to certify or reject a petition within the time specified in
544 Subsection (4), the petition is considered to be certified.
545 (b) If the county clerk rejects a petition, the individual who submitted the petition may
546 amend the petition to correct the deficiencies for which the county clerk rejected the petition
547 and refile the petition.
548 (6) Within 10 days after the day on which a county legislative body receives a certified
549 petition as described in Subsection (4) or (5), the county legislative body shall request that the
550 Legislative Audit Subcommittee consider prioritizing a feasibility study, as that term is defined
551 in Section 53G-3-102.
552 (7) (a) The county legislative body shall:
553 (i) provide for a 45-day public comment period to begin on the day the county
554 legislative body receives the study under Subsection (6); and
555 (ii) hold at least two public hearings, as defined in Section 10-9a-103, on the study and
556 recommendations.
557 (b) Within five business days after the day on which the public comment period ends,
558 the legislative body of each county with which a petition is filed shall vote on the creation of
559 the proposed new school district.
560 (c) A county legislative body approves an initiative proposal if a majority of the
561 members of the legislative body vote in favor of the proposal.
562 (8) (a) If each county legislative body approves an initiative proposal under this
563 section, each county legislative body shall submit the proposal to the county clerk of each
564 county described in Subsection (2)(b) for a vote:
565 (i) by the legal voters of each existing school district the proposal affects;
566 (ii) in accordance with the procedures and requirements applicable to a regular general
567 election under Title 20A, Election Code; and
568 (iii) at the next regular general election or municipal general election, whichever is
569 first.
570 (b) A new school district is created if a majority of the legal voters within the proposed
571 new school district and each existing school district voting on the proposal vote in favor of the
572 creation of the new district.
573 Section 8. Section 53G-3-301.2 is enacted to read:
574 53G-3-301.2. Creation of a new school district -- Request by a local school board
575 of an existing district -- Procedures to be followed.
576 (1) A local school board of an existing district that the creation of a new school district
577 would affect may initiate the process to create a new school district in accordance with this
578 section and Section 53G-3-301.
579 (2) (a) To initiate the school district creation process under Subsection (1), the local
580 school board shall file a request with the clerk of each county in which any part of the proposed
581 new school district is located.
582 (b) The local school board shall ensure that the request described in Subsection (2)(a):
583 (i) indicates the typed or printed and current residence address of each governing board
584 member making a request;
585 (ii) describes the proposed new school district boundaries; and
586 (iii) designates up to five signers of the request as sponsors, including one as the
587 contact sponsor, with the mailing address and telephone number of each.
588 (3) Within five business days after the day on which a request described in Subsection
589 (2) is filed, the clerk of each county with which the request is filed shall:
590 (a) determine whether the request complies with Subsection (2) and Section
591 53G-3-301; and
592 (b) (i) if the county clerk determines that the request complies with the applicable
593 requirements:
594 (A) certify the request and deliver the certified request to the county legislative body;
595 and
596 (B) mail or deliver written notification of the certification to the contact sponsor; or
597 (ii) if the county clerk determines that the request fails to comply with any of the
598 applicable requirements, reject the request and notify the contact sponsor in writing of the
599 rejection and reasons for the rejection.
600 (4) (a) If the county clerk fails to certify or reject a request within the time specified in
601 Subsection (3), the request is considered to be certified.
602 (b) If the county clerk rejects a request, the local school board that submitted the
603 request may amend the request to correct the deficiencies for which the county clerk rejected
604 the request and refile the request.
605 (5) (a) Within 14 days after the day the local school board receives certification as
606 described in Subsection (3) or (4), the local school board shall request that the Legislative
607 Audit Subcommittee consider prioritizing a feasibility study, as that term is defined in Section
608 53G-3-102.
609 (b) For the year 2024, the local school board may use a feasibility study conducted
610 before July 31, 2024, if:
611 (i) the feasibility study contains the determinations described in Section 53G-3-102;
612 and
613 (ii) the local school board receives a report and recommendation regarding the
614 feasibility study in a public meeting.
615 (6) (a) The local school board shall:
616 (i) provide for a 45-day public comment period to begin on the day the local school
617 board receives the report under Subsection (5); and
618 (ii) hold at least two public hearings, as defined in Section 10-9a-103, on the report and
619 recommendations.
620 (b) Within 14 days after the day on which the public comment period ends, the local
621 school board shall vote on the creation of the proposed new school district.
622 (c) A local school board approves a proposal if a majority of the local school board
623 members vote in favor of the proposal.
624 (d) Within five business days after the day on which the local school board approves a
625 proposal, the local school board shall notify the legislative body of each county described in
626 Subsection (2)(a).
627 (7) (a) The legislative body of each county described in Subsection (2) shall submit the
628 proposal to the county clerk to be voted on:
629 (i) by the legal voters of each existing school district the proposal affects;
630 (ii) in accordance with the procedures and requirements applicable to a regular general
631 election under Title 20A, Election Code; and
632 (iii) at the next regular general election or municipal general election, whichever is
633 first.
634 (b) A new school district is created if a majority of the legal voters within the proposed
635 new school district and each existing school district voting on the proposal vote in favor of the
636 creation of the new district.
637 Section 9. Section 53G-3-301.3 is enacted to read:
638 53G-3-301.3. Creation of a new school district -- Request by a municipality --
639 Procedures to be followed.
640 (1) A municipality located within the boundaries of a school district may initiate the
641 process to create a new school district in accordance with this section and Section 53G-3-301.
642 (2) (a) To initiate the school district creation process under Subsection (1), a
643 municipality shall file a request with the clerk of each county in which any part of the proposed
644 new school district is located.
645 (b) The filing municipality shall ensure that the request described in Subsection (2)(a):
646 (i) indicates the typed or printed and current residence address of each governing board
647 member making a request;
648 (ii) describes the proposed new school district boundaries; and
649 (iii) designates up to five signers of the request as sponsors, including one as the
650 contact sponsor, with the mailing address and telephone number of each.
651 (3) Within five business days after the day on which a request described in Subsection
652 (2) is filed, the clerk of each county with which the request is filed shall:
653 (a) determine whether the request complies with Subsection (2) and Section
654 53G-3-301; and
655 (b) (i) if the county clerk determines that the request complies with the applicable
656 requirements:
657 (A) certify the request and deliver the certified request to the municipality and each
658 county legislative body; and
659 (B) mail or deliver written notification of the certification to the contact sponsor; or
660 (ii) if the county clerk determines that the request fails to comply with any of the
661 applicable requirements, reject the request and notify the contact sponsor in writing of the
662 rejection and reasons for the rejection.
663 (4) (a) If the county clerk fails to certify or reject a request within the time specified in
664 Subsection (3), the request is considered to be certified.
665 (b) If the county clerk rejects a request, the municipality that submitted the request may
666 amend the request to correct the deficiencies for which the county clerk rejected the request and
667 refile the request.
668 (5) (a) Within 10 days after the day on which a municipal legislative body receives a
669 certification as described in Subsection (3) or (4), a municipal legislative body shall request
670 that the Legislative Audit Subcommittee consider prioritizing a feasibility study, as that term is
671 defined in Section 53G-3-102.
672 (b) For the year 2024, the municipal legislative body may use a feasibility study that
673 the municipal legislative body conducted before July 31, 2024, if:
674 (i) the feasibility study contains the determinations described in Section 53G-3-102;
675 and
676 (ii) the municipality receives a report and recommendation regarding the feasibility
677 study in a public meeting.
678 (6) (a) The municipal legislative body shall:
679 (i) provide for a 45-day public comment period to begin on the day the study is
680 presented to the municipal legislative body under Subsection (5); and
681 (ii) hold at least two public hearings, as defined in Section 10-9a-103, on the study and
682 recommendation.
683 (b) Within 14 days after the day on which the public comment period ends, the
684 municipal legislative body shall vote on the creation of the proposed new school district.
685 (c) A municipal legislative body approves a proposal if a majority of the municipal
686 legislative body vote in favor of the proposal.
687 (d) Within five business days after the day on which the municipal legislative body
688 approves a proposal, the municipal legislative body shall notify the legislative body of each
689 county described in Subsection (2)(a).
690 (7) (a) The legislative body of each county described in Subsection (2) shall submit the
691 proposal to the county clerk to be voted on:
692 (i) by the legal voters residing within the proposed new school district boundaries;
693 (ii) in accordance with the procedures and requirements applicable to a regular general
694 election under Title 20A, Election Code; and
695 (iii) at the next regular general election or municipal general election, whichever is
696 first.
697 (b) A new school district is created if a majority of the legal voters within the proposed
698 new school district boundaries voting on the proposal vote in favor of the creation of the new
699 district.
700 (8) Nothing in this section prevents a municipality from assisting the new school
701 district or reorganized new school district, including by:
702 (a) entering into a loan agreement with the new school district or reorganized new
703 school district; or
704 (b) assisting the new school district or reorganized new school district in securing a
705 line of credit.
706 Section 10. Section 53G-3-301.4 is enacted to read:
707 53G-3-301.4. Creation of a new school district -- By interlocal agreement
708 participants -- Procedures to follow.
709 (1) Interlocal agreement participants may initiate the process to create a new school
710 district in accordance with this section and with Section 53G-3-301.
711 (2) (a) By a majority vote of each legislative body, the legislative body of a
712 municipality, together with at least one other municipality, may enter into an interlocal
713 agreement in accordance with Title 11, Chapter 13, Interlocal Cooperation Act, for the purpose
714 of submitting for voter approval a measure to create a new school district if:
715 (i) except as provided in Subsection (3), the new school district boundaries comply
716 with the requirements of Section 53G-3-301; and
717 (ii) the combined population within the proposed new school district of the interlocal
718 agreement participants is at least 80% of the total population of the proposed new school
719 district.
720 (b) A county may only participate in an interlocal agreement under this Subsection (2)
721 for the unincorporated areas of the county.
722 (c) Boundaries of a new school district created under this section may include:
723 (i) a portion of one or more existing school districts; and
724 (ii) a portion of the unincorporated area of a county.
725 (3) (a) As used in this Subsection (3), "municipality's school district" means the school
726 district that includes all of the municipality in which the isolated area is located except the
727 isolated area, as that term is defined in Section 53G-3-102.
728 (b) Notwithstanding Subsection 53G-3-301(3), a municipality may be a participant in
729 an interlocal agreement under Subsection (2)(a) with respect to some but not all of the area
730 within the municipality's boundaries if:
731 (i) the portion of the municipality proposed to be included in the new school district
732 would, if not included, become an isolated area upon the creation of the new school district; or
733 (ii) (A) the portion of the municipality proposed to be included in the new school
734 district is within the boundaries of the same school district that includes the other interlocal
735 agreement participants; and
736 (B) the portion of the municipality proposed to be excluded from the new school
737 district is within the boundaries of a school district other than the school district that includes
738 the other interlocal agreement participants.
739 (c) (i) Notwithstanding Subsection 53G-3-301(3), interlocal agreement participants
740 may submit a proposal to the legal voters residing within the proposed new school district
741 boundaries to create a new school district in accordance with an interlocal agreement under
742 Subsection (2)(a), even though the new school district boundaries would create an isolated
743 area, as that term is defined in Section 53G-3-102, if:
744 (A) the potential isolated area is contiguous to one or more of the interlocal agreement
745 participants;
746 (B) the interlocal participants submit a written request to the municipality in which the
747 potential isolated area is located, requesting the municipality to enter into an interlocal
748 agreement under Subsection (2)(a) that proposes to submit for voter approval a measure to
749 create a new school district that includes the potential isolated area; and
750 (C) the municipality, to which the interlocal agreement participants submitted a request
751 under Subsection (3)(c)(i)(B), did not respond to the written request within 30 days after the
752 day on which the request was submitted.
753 (ii) Each municipality receiving a request under Subsection (3)(c)(i) shall hold at least
754 two public hearings to allow input from the public and affected school districts regarding
755 whether or not the municipality should enter into an interlocal agreement with respect to the
756 potential isolated area.
757 (iii) A municipal legislative body approves a proposal to enter into an interlocal
758 agreement with respect to the potential isolated area if a majority of the municipal legislative
759 body votes in favor of the proposal.
760 (d) (i) The isolated area described in this Subsection (3) shall, on July 1 of the second
761 calendar year following the local school board general election date described in Section
762 53G-3-302, become part of the municipality's school district.
763 (ii) The divided district shall continue to provide educational services to the isolated
764 area until July 1 of the second calendar year following the local school board general election
765 date described in Section 53G-3-302.
766 (4) (a) To initiate the school district creation process under Subsection (1), interlocal
767 agreement participants shall file a request with the clerk of each county in which any part of the
768 proposed new school district is located.
769 (b) The filing interlocal agreement participants shall ensure that the request described
770 in Subsection (4)(a):
771 (i) indicates the typed or printed and current residence address of each governing board
772 member making a request;
773 (ii) describes the proposed new school district boundaries; and
774 (iii) designates up to five signers of the request as sponsors, including as the contact
775 sponsor, with the mailing address and telephone number of each.
776 (5) Within five business days after the day on which a request described in Subsection
777 (4)(a) is filed, the clerk of each county with which the request is filed shall:
778 (a) determine whether the request complies with this section and Section 53G-3-301;
779 and
780 (b) (i) if the county clerk determines that the request complies with the applicable
781 requirements:
782 (A) certify the request and deliver the certified request to the legislative bodies of the
783 interlocal agreement participants; and
784 (B) mail or deliver written notification of the certification to the contact sponsor; or
785 (ii) if the county clerk determines that the request fails to comply with any of the
786 applicable requirements, reject the request and notify the contact sponsor in writing of the
787 rejection and reasons for the rejection.
788 (6) (a) If the county clerk fails to certify or reject a request within the time specified in
789 Subsection (5), the request is considered to be certified.
790 (b) (i) If the county clerk rejects a request, the interlocal agreement participants that
791 submitted the request may amend the request to correct the deficiencies for which the county
792 clerk rejected the request, and refile the request.
793 (7) (a) Within 30 days after the day on which the contact sponsor receives certification
794 as described in Subsection (5) or (6), the contact sponsor shall request that the Legislative
795 Audit Subcommittee consider prioritizing a feasibility study, as that term is defined in Section
796 53G-3-102.
797 (b) For the year 2024, the interlocal agreement participants may use a feasibility study
798 that interlocal agreement participants conducted before July 31, 2024, if:
799 (i) the feasibility study contains the determinations described in Section 53G-3-102;
800 and
801 (ii) the legislative bodies of the interlocal agreement participants receive a report and
802 recommendation regarding the feasibility study in a public meeting.
803 (8) (a) The legislative bodies of the interlocal agreement participants shall:
804 (i) provide for a 45-day public comment period to begin on the day on which the
805 legislative bodies of the interlocal agreement participants receive the report under Subsection
806 (7); and
807 (ii) hold at least two public hearings, as defined in Section 10-9a-103, on the study and
808 recommendation.
809 (b) Within 14 days after the day on which the public comment period ends, the
810 legislative bodies of the interlocal agreement participants shall vote on the creation of the
811 proposed new school district.
812 (c) The interlocal agreement participants approve a proposal if a majority of each of the
813 legislative bodies of the interlocal agreement participants' members vote in favor of the
814 proposal.
815 (9) (a) Within five business days after the day on which the interlocal agreement
816 participants approve a proposal, the interlocal agreement participants shall notify the legislative
817 body of each county described in Subsection (4)(a).
818 (b) The legislative body of each county described in Subsection (4) shall submit the
819 proposal to the respective clerk of each county to be voted on:
820 (i) by the legal voters residing within the proposed new school district boundaries;
821 (ii) in accordance with the procedures and requirements applicable to a regular general
822 election under Title 20A, Election Code; and
823 (iii) at the next regular general election or municipal general election, whichever is
824 first.
825 (10) A new school district is created if a majority of the legal voters residing within the
826 proposed new district boundaries voting on the proposal vote in favor of the creation of the
827 new school district.
828 (11) Nothing in this section prevents an interlocal agreement participant from assisting
829 the new school district or reorganized new school district, including by:
830 (a) entering into a loan agreement with the new school district or reorganized new
831 school district; or
832 (b) assisting the new school district or reorganized new school district in securing a
833 line of credit.
834 Section 11. Section 53G-3-302 is repealed and reenacted to read:
835 53G-3-302. Election of local school board members -- Allocation of assets and
836 liabilities -- Startup costs -- Transfer of title.
837 (1) (a) If voters approve a proposal to create a new school district under this part:
838 (i) the legislative body of the county in which the new school district and reorganized
839 new school district are located shall hold an election at the next general election, or at a special
840 election in accordance with Section 20A-1-204, to elect:
841 (A) members to the local school board of the divided school district whose terms are
842 expiring;
843 (B) all members to the local school board of the new school district; and
844 (C) all members to the local school board of the reorganized new school district;
845 (ii) the new school district and reorganized new school district shall divide the assets
846 and liabilities of the divided school district between the new school district and the reorganized
847 new school district as provided in Subsection (3) and Section 53G-3-307;
848 (iii) transferred employees shall be treated in accordance with Sections 53G-3-205 and
849 53G-3-308;
850 (iv) an individual residing within the boundaries of a new school district or reorganized
851 new school district at the time the new school district is created may, for six school years
852 following the creation of the new school district, elect to enroll in a secondary school located
853 outside the boundaries of the reorganized new school district if:
854 (A) the individual resides within the boundaries of that secondary school as of the day
855 before the new school district is created; and
856 (B) the individual would have been eligible to enroll in that secondary school had the
857 new school district not been created;
858 (v) the reorganized new school district in which the secondary school is located shall
859 provide educational services, including, if provided before the creation of the new school
860 district, busing to each individual making an election under Subsection (1)(a)(iv) for each
861 school year for which the individual makes the election; and
862 (vi) within one year following the date on which the new school district begins
863 providing educational services, the superintendent of each affected school district shall meet,
864 together with the state superintendent, to determine if further boundary changes should take
865 place in accordance with Section 53G-3-501.
866 (b) (i) The county legislative body shall stagger and adjust the terms of the initial
867 members of the local school boards of the new school district and the reorganized new school
868 district so that approximately half of the local school board is elected every two years following
869 the allocation date in accordance with Section 20A-1-104.
870 (ii) The term of a member of the divided school district local school board terminates
871 on January 1 of the year following the allocation date, or as determined under Subsection
872 (1)(b)(i).
873 (iii) Notwithstanding the existence of the new school district local school board and the
874 reorganized new school district local school board under Subsection (1)(a)(i), the divided
875 school district local school board shall continue to function and exercise authority as a local
876 school board until the allocation date to the extent necessary to continue to provide educational
877 services to the entire divided school district.
878 (iv) An individual may simultaneously serve as or be elected to be a member of the
879 local school board of a divided school district and a member of the local school board of:
880 (A) a new school district; or
881 (B) a reorganized new school district.
882 (2) (a) The divided school district local school board shall, within 60 days after the
883 creation date:
884 (i) prepare an inventory of the divided school district's:
885 (A) assets, both tangible and intangible, real and personal; and
886 (B) liabilities; and
887 (ii) deliver a copy of the inventory to the Office of the Legislative Auditor General.
888 (b) Following the local school board election date described in Subsection (1)(a), the
889 new school district and reorganized new school district local school boards shall:
890 (i) request a copy of the inventory described in Subsection (2)(a) from the Office of the
891 Legislative Auditor General;
892 (ii) determine the allocation of the divided school district's assets and, except for
893 indebtedness under Section 53G-3-307, liabilities of the new school district and reorganized
894 new school district in accordance with Subsection (3);
895 (iii) prepare a written report detailing the allocation under Subsection (2)(b)(ii); and
896 (iv) deliver a copy of the written report to the Office of the Legislative Auditor General
897 and the divided school district local board.
898 (c) The new school district and reorganized new school district local boards shall
899 determine the allocation under Subsection (2)(b) and deliver the report required under
900 Subsection (2)(b) on or before July 1 of the year following the school board election date,
901 unless that deadline is extended by mutual agreement of the new school district and
902 reorganized new school district local boards.
903 (3) (a) As used in this Subsection (3):
904 (i) "Associated property" means furniture, equipment, or supplies located in or
905 specifically associated with a physical asset.
906 (ii) (A) "Discretionary asset or liability" means, except as provided in Subsection
907 (3)(a)(ii)(B), an asset or liability that is not tied to a specific project, school, student, or
908 employee by law or school district accounting practice.
909 (B) "Discretionary asset or liability" does not include a physical asset, associated
910 property, a vehicle, or bonded indebtedness.
911 (iii) (A) "Nondiscretionary asset or liability" means, except as provided in Subsection
912 (3)(a)(iii)(B), an asset or liability that is tied to a specific project, school, student, or employee
913 by law or school district accounting practice.
914 (B) "Nondiscretionary asset or liability" does not include a physical asset, associated
915 property, a vehicle, or bonded indebtedness.
916 (iv) "Physical asset" means a building, land, or water right together with revenue
917 derived from the lease or use of the building, land, or water right.
918 (b) Except as provided under Subsection (3)(c), the new school district and reorganized
919 new school district local school boards shall allocate all assets and liabilities the divided school
920 district owns on the allocation date, both tangible and intangible, real and personal as follows:
921 (i) a physical asset and associated property asset shall be allocated to the school district
922 in which the physical asset is located;
923 (ii) a discretionary asset or liability shall be allocated between the new school district
924 and reorganized new school district in proportion to the student population of the school
925 districts;
926 (iii) vehicles used for pupil transportation shall be allocated:
927 (A) according to the transportation needs of schools, as measured by the number and
928 assortment of vehicles used to serve eligible state supported transportation routes serving
929 schools within the new school district and the reorganized new school district; and
930 (B) in a manner that gives each school district a fleet of vehicles for pupil
931 transportation that is equivalent in terms of age, condition, and variety of carrying capacities;
932 and
933 (iv) other vehicles shall be allocated:
934 (A) in proportion to the student population of the school districts; and
935 (B) in a manner that gives each district a fleet of vehicles that is similar in terms of age,
936 condition, and carrying capacities.
937 (c) By mutual agreement, the new school district and reorganized new school district
938 local school boards may allocate an asset or liability in a manner different than the allocation
939 method specified in Subsection (3)(b).
940 (4) (a) As used in this Subsection (4):
941 (i) "New school district startup costs" means the costs and expenses incurred by a new
942 school district in order to prepare to begin providing educational services on July 1 of the
943 second calendar year following the local school board general election or special election date
944 described in Subsection (1)(a)(i).
945 (ii) "Reorganized new school district startup costs" means the costs and expenses that a
946 reorganized new school district incurs to make necessary adjustments to deal with the impacts
947 resulting from the creation of the new school district and to prepare to provide educational
948 services within the reorganized new school district once the new school district begins
949 providing educational services within the new school district.
950 (b) On or before January 1 of the year following the new local school board general
951 election or special election date described in Subsection (1)(a)(i), the divided school district
952 shall make the unassigned reserve funds from the divided school district's general fund
953 available for the use of the reorganized new school district and the new school district in
954 proportion to the student enrollment of each new school district.
955 (c) The divided school district may make additional funds available for the use of the
956 reorganized new school district and the new school district beyond the amount specified in
957 Subsection (4)(b) through an interlocal agreement.
958 (d) The following may access and spend money made available under Subsection
959 (4)(b):
960 (i) the reorganized new school district local school board; and
961 (ii) the new school district local school board.
962 (e) The new school district and the reorganized new school district may use the money
963 made available under Subsection (4)(b) to pay for the new school district and reorganized new
964 school district startup costs.
965 (5) (a) The divided school district shall transfer title or, if applicable, partial title of
966 property to the new school district and the reorganized new school district in accordance with
967 the allocation of property as stated in the report under Subsection (2)(b)(iii).
968 (b) The divided school district shall complete each transfer of title or, if applicable,
969 partial title to real property and vehicles on or before one calendar year from the date of the
970 local school board election date described in Subsection (1)(a)(i), except as that date is changed
971 by the mutual agreement of:
972 (i) the local school board of the divided school district;
973 (ii) the local school board of the reorganized new school district; and
974 (iii) the local school board of the new school district.
975 (c) The divided school district shall complete the transfer of all property not included
976 in Subsection (5)(b) on or before November 1 of the calendar year following the local school
977 board election date described in Subsection (1)(a)(i).
978 (6) Except as provided in Subsection (5), a divided school district may not transfer or
979 agree to transfer title to district property beginning on the day the new school district or
980 reorganized new school district is created without the prior consent of:
981 (a) the legislative body of the municipality in which the boundaries for the new school
982 district or reorganized new school district are entirely located; or
983 (b) the legislative bodies of all interlocal agreement participants in which the
984 boundaries of the new school district or reorganized new school district are located.
985 Section 12. Section 53G-3-303 is amended to read:
986 53G-3-303. New school district property tax -- Limitations.
987 [
988
989
990 [
991
992
993 (1) A new school district, created under Section 53G-3-301.1, 53G-3-301.2,
994 53G-3-301.3, or 53G-3-301.4, and a reorganized new school district may not impose a property
995 tax before the fiscal year in which the new school district and reorganized new school district
996 assume responsibility for providing student instruction.
997 (2) (a) If at the time a new school district created [
998
999 assumes responsibility for student instruction any portion of the territory within the new school
1000 district was subject to a levy pursuant to Section 53F-8-301, the new school district's board
1001 may:
1002 (i) discontinue the levy for the new school district;
1003 (ii) impose a levy on the new school district as provided in Section 53F-8-301; or
1004 (iii) impose the levy on the new school district, subject to Subsection (2)(b).
1005 (b) If the new school district's local school board applies a levy to the new school
1006 district [
1007 maximum duration or rate authorized by the voters of the [
1008
1009 Section 13. Section 53G-3-304 is amended to read:
1010 53G-3-304. Property tax levies in new district and reorganized new district --
1011 Distribution of property tax revenue.
1012 [
1013 [
1014
1015 [
1016
1017 [
1018
1019 [
1020 [
1021 [
1022 [
1023
1024 [
1025 [
1026 (a) "Property tax levy" means a property tax levy that a school district is authorized to
1027 impose, except:
1028 (i) the minimum basic tax rate imposed under Section 53F-2-301;
1029 (ii) a debt service levy imposed under Section 11-14-310;
1030 (iii) a judgment levy imposed under Section 59-2-1330; or
1031 (iv) charter school tax rate.
1032 (b) "Qualifying taxable year" means the calendar year in which a new district begins to
1033 provide educational services.
1034 (2) A new school district and [
1035 continue to impose property tax levies that were imposed by the divided school district in the
1036 taxable year [
1037 (3) Except as provided in Subsection (6), a property tax levy that a new school district
1038 and [
1039 shall be set at a rate that:
1040 (a) is uniform in the new school district and [
1041 district; and
1042 (b) generates the same amount of revenue that was generated by the property tax levy
1043 within the divided school district in the taxable year [
1044 year.
1045 (4) The county treasurer of the county in which a property tax levy is imposed under
1046 Subsection (2) shall distribute revenues generated by the property tax levy to the new school
1047 district and [
1048 divided school district's enrollment on the October 1 [
1049 [
1050 enrolled in schools currently located in the new school district or [
1051 school district.
1052 (5) On or before March 31, a county treasurer shall distribute revenues generated by a
1053 property tax levy imposed under Subsection (2) in the [
1054 school district and [
1055 (6) (a) Subject to the notice and public hearing requirements of Section 59-2-919, a
1056 new school district or [
1057 higher than the rate required by Subsection (3), up to:
1058 (i) the maximum rate, if any, allowed by law; or
1059 (ii) the maximum rate authorized by voters for a voted local levy under Section
1060 53F-8-301.
1061 (b) The revenues generated by the portion of a property tax rate in excess of the rate
1062 required by Subsection (3) shall be retained by the district that imposes the higher rate.
1063 Section 14. Section 53G-3-305 is amended to read:
1064 53G-3-305. Redistricting -- Local school board membership.
1065 (1) Upon the creation of a new school district in accordance with Section 53G-3-301.1,
1066 53G-3-301.2, 53G-3-301.3, or 53G-3-301.4, the applicable legislative body shall redistrict the
1067 affected school districts in accordance with Section 20A-14-201.
1068 (2) Except as provided in Section 53G-3-302, local school board membership in the
1069 affected school districts shall be determined under Title 20A, Chapter 14, Part 2, Election of
1070 Members of Local Boards of Education.
1071 Section 15. Section 53G-3-306 is amended to read:
1072 53G-3-306. Transfer of school property to new school district and reorganized
1073 new school district.
1074 [
1075
1076
1077
1078
1079 [
1080
1081 [
1082
1083 [
1084
1085 [
1086 elections for a new school district and a reorganized new school district under this part, the
1087 divided school district's local school board shall convey and deliver to the new school district
1088 local school board and the reorganized new school district local school board all school
1089 property to which each new school district is entitled.
1090 (2) Title vests in the new local school board, including all rights, claims, and causes of
1091 action to or for the property, for the use or the income from the property, for conversion,
1092 disposition, or withholding of the property, or for any damage or injury to the property.
1093 (3) The new local school board may bring and maintain actions to recover, protect, and
1094 preserve the property and rights of the district's schools and to enforce contracts.
1095 Section 16. Section 53G-3-307 is amended to read:
1096 53G-3-307. Tax to pay for indebtedness of divided school district.
1097 [
1098
1099
1100
1101
1102 [
1103
1104
1105
1106 [
1107 [
1108
1109 [
1110
1111 [
1112
1113
1114
1115 [
1116
1117
1118 [
1119 indebtedness" means debt owed for a general obligation bond or lease revenue bond issued by
1120 the divided school district:
1121 (a) [
1122 (b) in accordance with a mutual agreement of the local school boards of the
1123 [
1124 Subsection [
1125 [
1126 the new school district and the [
1127 levy of a tax to pay the divided school district's outstanding bonded indebtedness as provided in
1128 Subsection [
1129 [
1130 the new school district and the local school board of the [
1131 district shall impose a tax levy at a rate that:
1132 (i) generates from the combined districts the amount of revenue required each year to
1133 meet the outstanding bonded indebtedness of the divided school district; and
1134 (ii) is [
1135 and [
1136 (b) A local school board of a new school district may abate a property tax required to
1137 be imposed under Subsection [
1138 available to pay to the [
1139 would be generated within the new school district from the tax rate specified in Subsection
1140 [
1141 [
1142
1143 disposition of bonds approved but not issued by the divided school district before the creation
1144 of the new school district and reorganized new school district based primarily on the
1145 representation made to the voters at the time of the bond election.
1146 (b) Before a determination is made under Subsection [
1147 reorganized new school district may not issue bonds approved but not issued before the
1148 creation of the new school district and reorganized new school district if property in the new
1149 school district would be subject to the levy of a tax to pay the bonds.
1150 Section 17. Section 53G-3-308 is amended to read:
1151 53G-3-308. Employees of a new district.
1152 (1) Upon the [
1153 educational services:
1154 (a) an employee of [
1155 that is transferred to [
1156 in which the school is located; and
1157 (b) the local school board of [
1158 (i) have discretion in the hiring of all other staff;
1159 (ii) adopt the personnel policies and practices of the [
1160 including salary schedules and benefits; and
1161 (iii) enter into agreements with employees of the new school district, or [
1162 school district, employees' representatives, that have the same terms as those in the negotiated
1163 agreements between the [
1164 employees that existed on or before the creation date.
1165 (2) (a) Subject to Subsection (2)(b), an employee of a school district from which a new
1166 district is created who becomes an employee of [
1167 status as a career or provisional employee with accrued seniority and accrued benefits.
1168 (b) Subsection (2)(a) applies to:
1169 (i) employees of [
1170 school district [
1171 (ii) employees of a school district from which a new school district is created who are
1172 hired by the new school district within one year of the date of the creation of the new school
1173 district.
1174 (3) An employee who is transferred to a new school district [
1175 with Subsection (1)(a) and is [
1176 district within one year of the date of the creation of the new school district shall, when
1177 [
1178 career or provisional employee with accrued seniority and accrued benefits.
1179 (4) Before the new school district commences educational services, the reorganized
1180 new school district's local school board may not dismiss an employee of the reorganized new
1181 school district who is transferred to the new school district for the sole reason that the
1182 employee becomes an employee of the new school district.
1183 Section 18. Effective date.
1184 This bill takes effect on May 1, 2024.