53A-2-118.1 - Option for school district creation.

UTAH STATUTES AND CODES

53A-2-118.1 - Option for school district creation.

53A-2-118.1. Option for school district creation.
(1) (a) After conducting a feasibility study, a city with a population of at least 50,000, asdetermined by the lieutenant governor using the process described in Subsection 67-1a-2(3), mayby majority vote of the legislative body, submit for voter approval a measure to create a newschool district with boundaries contiguous with that city's boundaries, in accordance with Section53A-2-118.
(b) (i) The determination of all matters relating to the scope, adequacy, and other aspectsof a feasibility study under Subsection (1)(a) is within the exclusive discretion of the city'slegislative body.
(ii) An inadequacy of a feasibility study under Subsection (1)(a) may not be the basis of alegal action or other challenge to:
(A) an election for voter approval of the creation of a new school district; or
(B) the creation of the new school district.
(2) (a) By majority vote of the legislative body, a city of any class, a town, or a county,may, together with one or more other cities, towns, or the county enter into an interlocalagreement, in accordance with Title 11, Chapter 13, Interlocal Cooperation Act, for the purposeof submitting for voter approval a measure to create a new school district.
(b) (i) In accordance with Section 53A-2-118, interlocal agreement participants underSubsection (2)(a) may submit a proposal for voter approval if:
(A) the interlocal agreement participants conduct a feasibility study prior to submittingthe proposal to the county;
(B) the combined population within the proposed new school district boundaries is atleast 50,000;
(C) the new school district boundaries:
(I) are contiguous;
(II) do not completely surround or otherwise completely geographically isolate a portionof an existing school district that is not part of the proposed new school district from theremaining part of that existing school district, except as provided in Subsection (2)(d)(iii);
(III) include the entire boundaries of each participant city or town, except as provided inSubsection (2)(d)(ii); and
(IV) subject to Subsection (2)(b)(ii), do not cross county lines; and
(D) the combined population within the proposed new school district of interlocalagreement participants that have entered into an interlocal agreement proposing to create a newschool district is at least 80% of the total population of the proposed new school district.
(ii) The determination of all matters relating to the scope, adequacy, and other aspects ofa feasibility study under Subsection (2)(b)(i)(A), including whether to conduct a new feasibilitystudy or revise a previous feasibility study due to a change in the proposed new school districtboundaries, is within the exclusive discretion of the legislative bodies of the interlocal agreementparticipants that enter into an interlocal agreement to submit for voter approval a measure tocreate a new school district.
(iii) An inadequacy of a feasibility study under Subsection (2)(b)(i)(A) may not be thebasis of a legal action or other challenge to:
(A) an election for voter approval of the creation of a new school district; or
(B) the creation of the new school district.
(iv) For purposes of determining whether the boundaries of a proposed new school

district cross county lines under Subsection (2)(b)(i)(C)(IV):
(A) a municipality located in more than one county and entirely within the boundaries ofa single school district is considered to be entirely within the same county as other participants inan interlocal agreement under Subsection (2)(a) if more of the municipality's land area andpopulation is located in that same county than outside the county; and
(B) a municipality located in more than one county that participates in an interlocalagreement under Subsection (2)(a) with respect to some but not all of the area within themunicipality's boundaries on the basis of the exception stated in Subsection (2)(d)(ii)(B) may notbe considered to cross county lines.
(c) (i) A county may only participate in an interlocal agreement under this Subsection (2)for the unincorporated areas of the county.
(ii) Boundaries of a new school district created under this section may include:
(A) a portion of one or more existing school districts; and
(B) a portion of the unincorporated area of a county, including a portion of a township.
(d) (i) As used in this Subsection (2)(d):
(A) "Isolated area" means an area that:
(I) is entirely within the boundaries of a municipality that, except for that area, is entirelywithin a school district different than the school district in which the area is located; and
(II) would, because of the creation of a new school district from the existing district inwhich the area is located, become completely geographically isolated.
(B) "Municipality's school district" means the school district that includes all of themunicipality in which the isolated area is located except the isolated area.
(ii) Notwithstanding Subsection (2)(b)(i)(C)(III), a municipality may be a participant inan interlocal agreement under Subsection (2)(a) with respect to some but not all of the areawithin the municipality's boundaries if:
(A) the portion of the municipality proposed to be included in the new school districtwould, if not included, become an isolated area upon the creation of the new school district; or
(B) (I) the portion of the municipality proposed to be included in the new school districtis within the boundaries of the same school district that includes the other interlocal agreementparticipants; and
(II) the portion of the municipality proposed to be excluded from the new school districtis within the boundaries of a school district other than the school district that includes the otherinterlocal agreement participants.
(iii) (A) Notwithstanding Subsection (2)(b)(i)(C)(II), a proposal to create a new schooldistrict may be submitted for voter approval pursuant to an interlocal agreement underSubsection (2)(a), even though the new school district boundaries would create an isolated area,if:
(I) the potential isolated area is contiguous to one or more of the interlocal agreementparticipants;
(II) the interlocal participants submit a written request to the municipality in which thepotential isolated area is located, requesting the municipality to enter into an interlocal agreementunder Subsection (2)(a) that proposes to submit for voter approval a measure to create a newschool district that includes the potential isolated area; and
(III) 90 days after a request under Subsection (2)(d)(iii)(A)(II) is submitted, themunicipality has not entered into an interlocal agreement as requested in the request.

(B) Each municipality receiving a request under Subsection (2)(d)(iii)(A)(II) shall holdone or more public hearings to allow input from the public and affected school districts regardingwhether or not the municipality should enter into an interlocal agreement with respect to thepotential isolated area.
(C) (I) This Subsection (2)(d)(iii)(C) applies if:
(Aa) a new school district is created under this section after a measure is submitted tovoters based on the authority of Subsection (2)(d)(iii)(A); and
(Bb) the creation of the new school district results in an isolated area.
(II) The isolated area shall, on July 1 of the second calendar year following the schoolboard general election date described in Subsection (3)(a)(i), become part of the municipality'sschool district.
(III) Unless the isolated area is the only remaining part of the existing district, the processdescribed in Subsection (4) shall be modified to:
(Aa) include a third transition team, appointed by the school district board of themunicipality's school district, to represent that school district;
(Bb) require allocation of the existing district's property among the new district, theremaining district, and the municipality's school district;
(Cc) require each of the three transition teams to appoint one member to thethree-member arbitration panel, if an arbitration panel is established; and
(Dd) require the municipality's school district to bear 1/3 of the costs of arbitration.
(IV) The existing district shall continue to provide educational services to the isolatedarea until July 1 of the second calendar year following the school board general election datedescribed in Subsection (3)(a)(i).
(3) (a) If a proposal under this section is approved by voters:
(i) an election shall be held at the next regular general election to elect:
(A) members to the board of the existing school district whose terms are expiring;
(B) all members to the board of the new school district; and
(C) all members to the board of the remaining district;
(ii) school district property shall be divided between the existing school district and thenew school district as provided in Subsection (4);
(iii) transferred employees shall be treated in accordance with Sections 53A-2-116 and53A-2-122;
(iv) (A) an individual residing within the boundaries of a new school district at the timethe new school district is created may, for six school years after the creation of the new schooldistrict, elect to enroll in a secondary school located outside the boundaries of the new schooldistrict if:
(I) the individual resides within the boundaries of that secondary school as of the daybefore the new school district is created; and
(II) the individual would have been eligible to enroll in that secondary school had thenew school district not been created; and
(B) the school district in which the secondary school is located shall provide educationalservices, including, if provided before the creation of the new school district, busing, to eachindividual making an election under Subsection (3)(a)(iv)(A) for each school year for which theindividual makes the election; and
(v) within one year after the new district begins providing educational services, the

superintendent of each remaining district affected and the superintendent of the new district shallmeet, together with the Superintendent of Public Instruction, to determine if further boundarychanges should be proposed in accordance with Section 53A-2-104.
(b) (i) The terms of the initial members of the school district board of the new district andremaining district shall be staggered and adjusted by the county legislative body so thatapproximately half of the board is elected every two years.
(ii) The term of a member of the existing school board, including a member electedunder Subsection (3)(a)(i)(A), terminates on July 1 of the second year after the school boardgeneral election date described in Subsection (3)(a)(i), regardless of when the term wouldotherwise have terminated.
(iii) Notwithstanding the existence of a board for the new district and a board for theremaining district under Subsection (3)(a)(i), the board of the existing district shall continue,until the time specified in Subsection 53A-2-118(5)(b)(ii)(A), to function and exercise authorityas a board to the extent necessary to continue to provide educational services to the entireexisting district.
(iv) A person may simultaneously serve as or be elected to be a member of the board ofan existing district and a member of the board of:
(A) a new district; or
(B) a remaining district.
(4) (a) Within 45 days after the canvass date for the election at which voters approve thecreation of a new district:
(i) a transition team to represent the remaining district shall be appointed by the membersof the existing district board who reside within the area of the remaining district, in consultationwith:
(A) the legislative bodies of all municipalities in the area of the remaining district; and
(B) the legislative body of the county in which the remaining district is located, if theremaining district includes one or more unincorporated areas of the county; and
(ii) another transition team to represent the new district shall be appointed by:
(A) for a new district located entirely within the boundaries of a single city, thelegislative body of that city; or
(B) for each other new district, the legislative bodies of all interlocal agreementparticipants.
(b) The school district board of the existing school district shall, within 60 days after thecanvass date for the election at which voters approve the creation of a new district:
(i) prepare an inventory of the existing district's:
(A) property, both tangible and intangible, real and personal; and
(B) liabilities; and
(ii) deliver a copy of the inventory to each of the transition teams.
(c) (i) (A) The transition teams appointed under Subsection (4)(a) shall, subject toSubsection (4)(c)(iii):
(I) determine the allocation of the existing district's property and, except for indebtednessunder Section 53A-2-121, liabilities between the remaining district and the new district inaccordance with Subsection (4)(c)(ii);
(II) prepare a written report detailing how the existing district's property and, except forindebtedness under Section 53A-2-121, liabilities are to be allocated, including:

(Aa) a designation of the property that should be transferred to the new district;
(Bb) a designation of any property that should be shared between the remaining districtand the new district; and
(Cc) a designation of any property that will need to be allocated by arbitration underSubsection (4)(d); and
(III) deliver a copy of the written report to:
(Aa) the school district board of the existing district;
(Bb) the school district board of the remaining district; and
(Cc) the school district board of the new district.
(B) The transition teams shall determine the allocation under Subsection (4)(c)(i)(A)(I)and deliver the report required under Subsection (4)(c)(i)(A)(II) before August 1 of the yearfollowing the election at which voters approve the creation of a new district, unless that deadlineis extended by the mutual agreement of:
(I) the school district board of the existing district; and
(II) (Aa) the legislative body of the city in which the new district is located, for a newdistrict located entirely within a single city; or
(Bb) the legislative bodies of all interlocal agreement participants, for each other newdistrict.
(ii) Subject to Subsection (4)(c)(iii), all property, assets, and liabilities that the existingdistrict owns on the allocation date, both tangible and intangible, real and personal, shall beallocated between the remaining district and the new district in a way that is fair and equitable toboth the remaining district and the new district, taking into account:
(A) the relative student populations between the remaining district and new district;
(B) the relative assessed value of taxable property between the remaining district and thenew district;
(C) the historical amount of property used to deliver educational services to students inthe remaining district and the new district;
(D) any money made available for the use of the new district under Subsection (5); and
(E) any other factors that the transition teams consider relevant in dividing the propertyin a fair and equitable manner.
(iii) (A) The transition teams shall allocate each school building and associated propertyused primarily to provide educational services to local residents and not serving district-widepurposes to the school district that would best serve the existing student population of that schoolbuilding and associated property.
(B) Except as provided in Subsection (4)(c)(iii)(A), nothing in this Subsection (4)(c) maybe construed to limit the ability of the transition teams to:
(I) provide that an existing district's property be shared by a remaining district and newdistrict;
(II) determine, by mutual agreement, that the value of the school buildings and associatedproperty described in Subsection (4)(c)(iii)(A) may be excluded from consideration in theproperty allocation process under this Subsection (4)(c); or
(III) provide for any other arrangement with respect to existing district property that isbeneficial to and in the best interests of the remaining district and new district.
(d) (i) Each disagreement between the transition teams about the proper allocation ofproperty between the districts shall be resolved by binding arbitration to a three-member

arbitration panel.
(ii) Each transition team shall, no later than September 1 of the year after the creationelection date, appoint one qualified, independent arbitrator to an arbitration panel under thisSubsection (4)(d), and those two arbitrators shall, within 15 days after their appointment, appointa third qualified, independent arbitrator.
(iii) In the process of resolving a dispute between the transition teams, the arbitrationpanel may engage the services of one or more professionals to provide technical advice to thepanel.
(iv) The costs of arbitration shall initially be borne entirely by the existing district, butthe new district shall reimburse the existing district half of those costs within one year after thenew district begins providing educational services.
(e) Each decision of the transition teams and of the arbitration panel resolving adisagreement between the transition teams is final and binding on the boards of the existingdistrict, remaining district, and new district.
(f) (i) All costs and expenses of the transition team that represents a remaining districtshall be borne by the remaining district.
(ii) All costs and expenses of the transition team that represents a new district shallinitially be borne by:
(A) the city whose legislative body appoints the transition team, if the transition team isappointed by the legislative body of a single city; or
(B) the interlocal agreement participants, if the transition team is appointed by thelegislative bodies of interlocal agreement participants.
(iii) The new district may, to a maximum of $500,000, reimburse the city or interlocalagreement participants for:
(A) transition team costs and expenses; and
(B) startup costs and expenses incurred by the city or interlocal agreement participants onbehalf of the new district.
(5) (a) As used in this Subsection (5):
(i) "New district startup costs" means:
(A) costs and expenses incurred by a new district in order to prepare to begin providingeducational services on July 1 of the second calendar year following the school board generalelection date described in Subsection (3)(a)(i); and
(B) the costs and expenses of the transition team that represents the new district.
(ii) "Remaining district startup costs" means:
(A) costs and expenses incurred by a remaining district in order to:
(I) make necessary adjustments to deal with the impacts resulting from the creation of thenew district; and
(II) prepare to provide educational services within the remaining district once the newdistrict begins providing educational services within the new district; and
(B) the costs and expenses of the transition team that represents the remaining district.
(b) (i) By January 1 of the year following the school board general election datedescribed in Subsection (3)(a)(i), the existing district shall make half of the undistributed reservefrom its General Fund, to a maximum of $9,000,000, available for the use of the remainingdistrict and the new district, as provided in this Subsection (5).
(ii) The existing district may make additional funds available for the use of the remaining

district and the new district beyond the amount specified in Subsection (5)(b)(i) through aninterlocal agreement.
(c) The existing district shall make the money under Subsection (5)(b) available to theremaining district and the new district proportionately based on student population.
(d) The money made available under Subsection (5)(b) may be accessed and spent by:
(i) for the remaining district, the school district board of the remaining district; and
(ii) for the new district, the school district board of the new district.
(e) (i) The remaining district may use its portion of the money made available underSubsection (5)(b) to pay for remaining district startup costs.
(ii) The new district may use its portion of the money made available under Subsection(5)(b) to pay for new district startup costs.
(6) (a) The existing district shall transfer title or, if applicable, partial title of property tothe new school district in accordance with the allocation of property by:
(i) the transition teams, as stated in the report under Subsection (4)(c)(i)(A)(II); and
(ii) the arbitration panel, if applicable.
(b) The existing district shall complete each transfer of title or, if applicable, partial titleto real property and vehicles by July 1 of the second calendar year following the school boardgeneral election date described in Subsection (3)(a)(i), except as that date is changed by themutual agreement of:
(i) the school district board of the existing district;
(ii) the school district board of the remaining district; and
(iii) the school district board of the new district.
(c) The existing district shall complete the transfer of all property not included inSubsection (6)(b) by November 1 of the second calendar year after the school board generalelection date described in Subsection (3)(a)(i).
(7) Except as provided in Subsections (5) and (6), after the creation election date anexisting school district may not transfer or agree to transfer title to district property without theprior consent of:
(a) the legislative body of the city in which the new district is located, for a new districtlocated entirely within a single city; or
(b) the legislative bodies of all interlocal agreement participants, for each other newdistrict.
(8) This section applies to and governs all actions and proceedings relating to andfollowing the creation of a new district, whether the election under Subsection 53A-2-118(5) onthe proposal to create a new school district occurs before or after May 5, 2008, including:
(a) the election of school district board members; and
(b) transition team duties and responsibilities, whether the transition team is appointedbefore or after May 5, 2008.