Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 188 (2025GS)

Sponsor

Sen. Grover, Keith

Final action

Senate/ to Governor 3/17/2025

Outcome

Senate/ to Governor

Summary

What it does

• This bill:
• defines terms;
• enacts dates regarding the redistricting of local school board districts after the creation of certain new school districts;
• amends the duties of the Office of the Legislative Auditor General to include receiving and providing certain information during the transition process from divided to new school districts;
• extends, by an additional year, the rights of transferred employees regarding salary and benefits;
• reduces the body of voters whose approval is required to create a new school district to voters within the proposed new school district;
• reduces the threshold for interlocal participants to propose a new school district to a majority of municipalities that are participants in the interlocal agreement;
• amends certain dates regarding election cycles following the creation of a new school district;
• amends certain deadlines for the duties of municipal legislative bodies, county legislative bodies, local school boards, and other entities under certain circumstances after the creation of a new school district;
• enacts provisions regarding the transition from a divided school district to new and reorganized new school districts, including:
• school district employee and other personnel issues;
• records of the divided school district;
• the actual transfer of funds, property, assets, and liabilities;
• retrospectively voiding certain agreements or policies; and

Every vote on this bill

Bill text

58
20A-14-201
36-12-15
53G-3-102
53G-3-202
53G-3-205
53G-3-301
53G-3-301.1
53G-3-301.3
53G-3-301.4
53G-3-301.5
53G-3-301.6
53G-3-302
53G-3-303
53G-3-305
53G-3-307
63G-2-203
67-3-1
School District Modifications
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Keith Grover
House Sponsor: 
LONG TITLE
General Description:
This bill addresses creation of new school districts and the transition process from divided 
to new school districts.
Highlighted Provisions:
This bill:
defines terms;
enacts dates regarding the redistricting of local school board districts after the creation of 
certain new school districts;
amends the duties of the Office of the Legislative Auditor General to include certain 
involvement in the transition process from divided to new school districts;
extends, by an additional year, the rights of transferred employees regarding salary and 
benefits;
reduces the body of voters whose approval is required to create a new school district to 
voters within the proposed new school district;
reduces the threshold for interlocal participants to propose a new school district to a 
majority of municipalities that are participants in the interlocal agreement;
allows municipal legislative bodies to create a new school district from within the area of 
a divided school district remaining after an election that created a new school district;
amends certain dates regarding election cycles following the creation of a new school 
district;
amends certain deadlines for the duties of municipal legislative bodies, county legislative 
bodies, local school boards, and other entities under certain circumstances after the 
creation of a new school district;
enacts provisions regarding the transition from a divided school district to new and 
reorganized new school districts, including:
oversight from the state auditor;
school district employee and other personnel issues;
records of the divided school district;
certain feasibility studies and seismic safety evaluations;
certain reports and plans regarding the transition and the allocation of funds, property, 
assets, and liabilities;
the actual transfer of funds, property, assets, and liabilities;
retrospectively voiding certain agreements or policies; and
resolution of disputes between school districts through the Office of the Legislative 
Auditor General;
prohibits a government entity from charging a fee for certain requests related to the 
school district creation and transition processes;
requires a government entity to send an invoice before requiring payment of past fees 
before processing a new request; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
20A-14-201
, (Effective upon governor's approval) as last amended by Laws of Utah 
2024, Third Special Session, Chapter 3
36-12-15
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Third Special Session, Chapter 3
53G-3-102
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Third Special Session, Chapter 3
53G-3-202
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Third Special Session, Chapter 3
53G-3-205
, (Effective upon governor's approval) as renumbered and amended by Laws 
of Utah 2018, Chapter 3
53G-3-301
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Third Special Session, Chapter 3
53G-3-301.1
, (Effective upon governor's approval) as last amended by Laws of Utah 
2024, Third Special Session, Chapter 3
53G-3-301.3
, (Effective upon governor's approval) as last amended by Laws of Utah 
2024, Third Special Session, Chapter 3
53G-3-301.4
, (Effective upon governor's approval) as last amended by Laws of Utah 
2024, Third Special Session, Chapter 3
53G-3-302
, (Effective upon governor's approval) (Applies beginning 11/04/24) as last 
amended by Laws of Utah 2024, Third Special Session, Chapter 3
53G-3-303
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Third Special Session, Chapter 3
53G-3-305
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Third Special Session, Chapter 3
53G-3-307
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Chapter 526
63G-2-203
, (Effective upon governor's approval) as last amended by Laws of Utah 2022, 
Chapter 128
67-3-1
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Chapters 3, 158
ENACTS:
53G-3-301.5
, (Effective upon governor's approval) Utah Code Annotated 1953
53G-3-301.6
, (Effective upon governor's approval) Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
20A-14-201
 is amended to read:
20A-14-201 (Effective upon governor's approval). Boards of education -- School 
board districts -- Creation -- Redistricting.
(1)
The county legislative body, for local school districts whose boundaries encompass 
more than a single municipality, and the municipal legislative body, for local school 
districts contained completely within a municipality, shall divide the local school district 
into local school board districts as required under Subsection 
20A-14-202
(1)
.
(2)
The county and municipal legislative bodies shall divide the school district so that the 
local school board districts are substantially equal in population and are as contiguous 
and compact as practicable.
(3)
County and municipal legislative bodies shall redistrict local school board districts to 
meet the population, compactness, and contiguity requirements of this section:
(a)
at least once every 10 years;
(b)
for a new school district or a reorganized new school district that is approved by the 
voters at a regular general election under Section 
53G-3-301.1
, 
53G-3-301.3
, or 
53G-3-301.4
, before April 1 of the following year;
(c)
for a new school district or a reorganized new school district that is created by 
municipal legislative bodies or interlocal agreement participants from within a 
reorganized new school district resulting from the 2024 regular general election 
under Section 
53G-3-301.5
 or 53G-301.6, before 75 days after the effective date of 
this bill;
(c)
(d)
whenever school districts are consolidated;
(d)
(e)
whenever a school district loses more than 20% of the population of the entire 
school district to another school district;
(e)
(f)
whenever a school district loses more than 50% of the population of a local 
school board district to another school district;
(f)
(g)
whenever a school district receives new residents equal to at least 20% of the 
population of the school district at the time of the last redistricting because of a 
transfer of territory from another school district; and
(g)
(h)
whenever it is necessary to increase the membership of a board as a result of 
changes in student membership under Section 
20A-14-202
.
(4)
If a school district receives territory containing less than 20% of the population of the 
transferee district at the time of the last redistricting, the local school board may assign 
the new territory to one or more existing school board districts.
(5)
Except as provided in Subsection 
53G-3-302(1)(b)(ii)
, redistricting does not affect the 
right of any school board member to complete the term for which the member was 
elected.
(6)
(a)
After redistricting, representation in a local school board district shall be 
determined as provided in this Subsection 
(6)
.
(b)
If, after redistricting, only one board member whose term extends beyond 
redistricting lives within a local school board district, that board member shall 
represent that local school board district.
(c)
If, after redistricting, two or more members whose terms extend beyond redistricting 
live within a local school board district, the members involved shall select one 
member by lot to represent the local school board district.
(d)
The other members shall serve at-large for the remainder of their terms.
(e)
The at-large board members shall serve in addition to the designated number of 
board members for the board in question for the remainder of their terms.
(f)
If there is no board member living within a local school board district whose term 
extends beyond redistricting, the seat shall be treated as vacant and filled as provided 
in this part.
(7)
(a)
If, before an election affected by redistricting, the county or municipal legislative 
body that conducted the redistricting determines that one or more members shall be 
elected to terms of two years to meet this part's requirements for staggered terms, the 
legislative body shall determine by lot which of the redistricted local school board 
districts will elect members to two-year terms and which will elect members to 
four-year terms.
(b)
All subsequent elections are for four-year terms.
(8)
Within 10 days after any local school board district boundary change, the county or 
municipal legislative body making the change shall send an accurate map or plat of the 
boundary change to the Utah Geospatial Resource Center created under Section 
63A-16-505
.
(9)
Subsections 
(4)
 through 
(7)
 do not apply to a redistricting that occurs under Subsection 
(3)(b)
.
Section 2, Section 
36-12-15
 is amended to read:
36-12-15 (Effective upon governor's approval). Office of the Legislative Auditor 
General established -- Qualifications -- Powers, functions, and duties -- Reporting -- 
Criminal penalty -- Employment.
(1)
As used in this section:
(a)
"Audit action" means an audit, examination, investigation, or review of an entity 
conducted by the office.
(b)
"Entity" means:
(i)
a government organization; or
(ii)
a receiving organization.
(c)
"Government organization" means:
(i)
a state branch, department, or agency; or
(ii)
a political subdivision, including a county, municipality, special district, special 
service district, school district, interlocal entity as defined in Section 
11-13-103
, 
or any other local government unit.
(d)
"Office" means the Office of the Legislative Auditor General.
(e)
"Receiving organization" means an organization that receives public funds that is not 
a government organization.
(2)
There is created the Office of the Legislative Auditor General as a permanent staff 
office for the Legislature.
(3)
The legislative auditor general shall be a licensed certified public accountant or certified 
internal auditor with at least seven years of experience in the auditing or public 
accounting profession, or the equivalent, prior to appointment.
(4)
The legislative auditor general shall appoint and develop a professional staff within 
budget limitations.
(5)
The office shall exercise the constitutional authority provided in Utah Constitution, 
Article VI, Section 33.
(6)
Under the direction of the legislative auditor general, the office shall:
(a)
conduct comprehensive and special purpose audits, examinations, investigations, or 
reviews of entity funds, functions, and accounts;
(b)
prepare and submit a written report on each audit action to the Audit Subcommittee 
created in Section 
36-12-8
 and make the report available to all members of the 
Legislature within 75 days after the audit action is completed;
(c)
monitor, conduct a risk assessment of, or audit any efficiency evaluations that the 
legislative auditor general determines necessary, in accordance with Title 63J, 
Chapter 1, Part 9, Government Performance Reporting and Efficiency Process, and 
legislative rule;
(d)
create, manage, and report to the Audit Subcommittee a list of high risk programs 
and operations that:
(i)
threaten public funds or programs;
(ii)
are vulnerable to inefficiency, waste, fraud, abuse, or mismanagement; or
(iii)
require transformation;
(e)
monitor and report to the Audit Subcommittee the health of a government 
organization's internal audit functions;
(f)
make recommendations to increase the independence and value added of internal 
audit functions throughout the state;
(g)
implement a process to track, monitor, and report whether the subject of an audit has 
implemented recommendations made in the audit report;
(h)
establish, train, and maintain individuals within the office to conduct investigations 
and represent themselves as lawful investigators on behalf of the office;
(i)
establish policies, procedures, methods, and standards of audit work and 
investigations for the office and staff;
(j)
prepare and submit each audit and investigative report independent of any influence 
external of the office, including the content of the report, the conclusions reached in 
the report, and the manner of disclosing the legislative auditor general's findings;
(k)
prepare and submit the annual budget request for the office; and
(l)
perform other duties as prescribed by the Legislature.
(7)
In conducting an audit action of an entity, the office may include a determination of any 
or all of the following:
(a)
the honesty and integrity of any of the entity's fiscal affairs;
(b)
the accuracy and reliability of the entity's internal control systems and specific 
financial statements and reports;
(c)
whether or not the entity's financial controls are adequate and effective to properly 
record and safeguard the entity's acquisition, custody, use, and accounting of public 
funds;
(d)
whether the entity's administrators have complied with legislative intent;
(e)
whether the entity's operations have been conducted in an efficient, effective, and 
cost efficient manner;
(f)
whether the entity's programs have been effective in accomplishing intended 
objectives; and
(g)
whether the entity's management control and information systems are adequate and 
effective.
(8)
(a)
If requested by the office, each entity that the legislative auditor general is 
authorized to audit under Utah Constitution, Article VI, Section 33, or this section 
shall, notwithstanding any other provision of law except as provided in Subsection 
(8)(b), provide the office with access to information, materials, or resources the office 
determines are necessary to conduct an audit, examination, investigation, or review, 
including:
(i)
the following in the possession or custody of the entity in the format identified by 
the office:
(A)
a record, document, and report; and
(B)
films, tapes, recordings, and electronically stored information;
(ii)
entity personnel; and
(iii)
each official or unofficial recording of formal or informal meetings or 
conversations to which the entity has access.
(b)
To the extent compliance would violate federal law, the requirements of Subsection 
(8)(a) do not apply.
(9)
(a)
In carrying out the duties provided for in this section and under Utah Constitution, 
Article VI, Section 33, the legislative auditor general may issue a subpoena to access 
information, materials, or resources in accordance with Chapter 14, Legislative 
Subpoena Powers.
(b)
The legislative auditor general may issue a subpoena, as described in Subsection 
(9)(a), to a financial institution or any other entity to obtain information as part of an 
investigation of fraud, waste, or abuse, including any suspected malfeasance, 
misfeasance, or nonfeasance involving public funds.
(10)
To preserve the professional integrity and independence of the office:
(a)
no legislator or public official may urge the appointment of any person to the office; 
and
(b)
the legislative auditor general may not be appointed to serve on any board, authority, 
commission, or other agency of the state during the legislative auditor general's term 
as legislative auditor general.
(11)
(a)
The following records in the custody or control of the legislative auditor general 
are protected records under Title 63G, Chapter 2, Government Records Access and 
Management Act:
(i)
records and audit work papers that would disclose information relating to 
allegations of personal misconduct, gross mismanagement, or illegal activity of a 
past or present governmental employee if the information or allegation cannot be 
corroborated by the legislative auditor general through other documents or 
evidence, and the records relating to the allegation are not relied upon by the 
legislative auditor general in preparing a final audit report;
(ii)
records and audit workpapers that would disclose the identity of a person who, 
during the course of a legislative audit, communicated the existence of:
(A)
unethical behavior;
(B)
waste of public funds, property, or personnel; or
(C)
a violation or suspected violation of a United States, Utah state, or political 
subdivision law, rule, ordinance, or regulation, if the person disclosed on the 
condition that the identity of the person be protected;
(iii)
before an audit is completed and the final audit report is released, records or 
drafts circulated to a person who is not an employee or head of an entity for 
review, response, or information;
(iv)
records that would disclose:
(A)
an outline;
(B)
all or part of an audit survey, audit risk assessment plan, or audit program; or
(C)
other procedural documents necessary to fulfill the duties of the office; and
(v)
requests for audits, if disclosure would risk circumvention of an audit.
(b)
The provisions of Subsection (11)(a) do not prohibit the disclosure of records or 
information to a government prosecutor or peace officer if those records or 
information relate to a violation of the law by an entity or entity employee.
(c)
A record, as defined in Section 
63G-2-103
, created by the office in a closed meeting 
held in accordance with Section 
52-4-205
:
(i)
is a protected record, as defined in Section 
63G-2-103
;
(ii)
to the extent the record contains information:
(A)
described in Section 
63G-2-302
, is a private record; or
(B)
described in Section 
63G-2-304
, is a controlled record; and
(iii)
may not be reclassified by the office.
(d)
The provisions of this section do not limit the authority otherwise given to the 
legislative auditor general to maintain the private, controlled, or protected record 
status of a shared record in the legislative auditor general's possession or classify a 
document as public, private, controlled, or protected under Title 63G, Chapter 2, 
Government Records Access and Management Act.
(12)
The legislative auditor general shall:
(a)
be available to the Legislature and to the Legislature's committees for consultation on 
matters relevant to areas of the legislative auditor general's professional competence;
(b)
conduct special audits as requested by the Audit Subcommittee;
(c)
report immediately to the Audit Subcommittee any apparent violation of penal 
statutes disclosed by the audit of an entity and furnish to the Audit Subcommittee all 
information relative to the apparent violation;
(d)
report immediately to the Audit Subcommittee any apparent instances of 
malfeasance or nonfeasance by an entity officer or employee disclosed by the audit of 
an entity; and
(e)
make any recommendations to the Audit Subcommittee with respect to the alteration 
or improvement of the accounting system used by an entity.
(13)
If the legislative auditor general conducts an audit of an entity that has previously been 
audited and finds that the entity has not implemented a recommendation made by the 
legislative auditor general in a previous audit report, the legislative auditor general shall 
report to the Audit Subcommittee that the entity has not implemented the 
recommendation.
(14)
Before each annual general session, the legislative auditor general shall:
(a)
prepare an annual report that:
(i)
summarizes the audits, examinations, investigations, and reviews conducted by the 
office since the last annual report; and
(ii)
evaluate and report the degree to which an entity that has been the subject of an 
audit has implemented the audit recommendations;
(b)
include in the report any items and recommendations that the legislative auditor 
general believes the Legislature should consider in the annual general session; and
(c)
deliver the report to the Legislature and to the appropriate committees of the 
Legislature.
(15)
(a)
If the chief officer of an entity has actual knowledge or reasonable cause to 
believe that there is misappropriation of the entity's public funds or assets, or another 
entity officer has actual knowledge or reasonable cause to believe that the chief 
officer is misappropriating the entity's public funds or assets, the chief officer or, 
alternatively, the other entity officer, shall immediately notify, in writing:
(i)
the office;
(ii)
the attorney general, county attorney, or district attorney; and
(iii)
(A)
for a state government organization, the chief executive officer;
(B)
for a political subdivision government organization, the legislative body or 
governing board; or
(C)
for a receiving organization, the governing board or chief executive officer 
unless the chief executive officer is believed to be misappropriating the funds 
or assets, in which case the next highest officer of the receiving organization.
(b)
As described in Subsection (15)(a), the entity chief officer or, if applicable, another 
entity officer, is subject to the protections of Title 67, Chapter 21, Utah Protection of 
Public Employees Act.
(c)
If the Office of the Legislative Auditor General receives a notification under 
Subsection (15)(a) or other information of misappropriation of public funds or assets 
of an entity, the office shall inform the Audit Subcommittee.
(d)
The attorney general, county attorney, or district attorney shall notify, in writing, the 
Office of the Legislative Auditor General whether the attorney general, county 
attorney, or district attorney pursued criminal or civil sanctions in the matter.
(16)
(a)
An actor commits interference with a legislative audit if the actor uses force, 
violence, intimidation, or engages in any other unlawful act with a purpose to 
interfere with:
(i)
a legislative audit action; or
(ii)
the office's decisions relating to:
(A)
the content of the office's report;
(B)
the conclusions reached in the office's report; or
(C)
the manner of disclosing the results and findings of the office.
(b)
A violation of Subsection (16)(a) is a class B misdemeanor.
(17)
(a)
The office may require any current employee, or any applicant for employment, 
to submit to a fingerprint-based local, regional, and criminal history background 
check as an ongoing condition of employment.
(b)
An employee or applicant for employment shall provide a completed fingerprint card 
to the office upon request.
(c)
The office shall require that an individual required to submit to a background check 
under this Subsection (17) also provide a signed waiver on a form provided by the 
office that meets the requirements of Subsection 
53-10-108
(4).
(d)
For a noncriminal justice background search and registration in accordance with 
Subsection 
53-10-108
(13), the office shall submit to the Bureau of Criminal 
Identification:
(i)
the employee's or applicant's personal identifying information and fingerprints for 
a criminal history search of applicable local, regional, and national databases; and
(ii)
a request for all information received as a result of the local, regional, and 
nationwide background check.
(18)
Subject to prioritization of the Legislative Audit Subcommittee, the Office of the 
Legislative Auditor General shall
:
(a)
conduct a feasibility study 
under Section 
53G-3-301.1
, 
53G-3-301.3
, or 
53G-3-301.4
.
that an entity requests under Title 53G, Chapter 3, Part 3, Creating a New School 
District; and
(b)
accept and maintain submissions and resolve disputes between local school boards in 
accordance with Section 53G-3-302.
Section 3, Section 
53G-3-102
 is amended to read:
53G-3-102 (Effective upon governor's approval). Definitions.
As used in this chapter:
(1)
"Allocation date" means:
(a)
July 1 of the second calendar year following the local school board election date as 
described in Section 
53G-3-302
; or
(b)
another date to which the new local school board and reorganized school board agree.
(2)
"Creation date" means
:
(a)
the date on which voters approve the creation of a new school district under Section 
53G-3-301.1
, 
53G-3-301.3
, or 
53G-3-301.4
.
, for any new school district and any 
reorganized new school district resulting from the election that created the new 
school district;
(b)
the date on which a municipal legislative body creates a new school district under 
Section 
53G-3-301.5
; or
(c)
the date on which participants in an interlocal agreement create a new school district 
under Section 
53G-3-301.6
.
(3)
"Divided school district" means:
(a)
an existing school district from which a new school district is created under Section 
53G-3-301.1
, 
53G-3-301.3
, 
or 
53G-3-301.4
, 
53G-3-301.5
, or 
53G-3-301.6
; and
(b)
an existing school district from which a reorganized new school district is created.
(4)
(a)
"Feasibility study" means a study:
(i)
(a)
conducted by
that one of the following conducts
:
(A)
(i)
a school district, municipal legislative body, or interlocal agreement 
participants
 before July 1, 2024
; or
(B)
(ii)
the Office of the Legislative Auditor General, subject to prioritization by the 
Legislative Audit Subcommittee; and
(ii)
(b)
to determine:
(A)
(i)
the financial viability for a new school district and reorganized new school 
district that is contained within the boundaries of a divided school district;
(B)
(ii)
the financial impact on a new school district and reorganized new school 
district that is contained within the boundaries of a divided school district; and
(C)
(iii)
the impact of the tax burden on taxpayers within the boundaries of the 
proposed new school district.
(5)
"Interlocal agreement participant" means a public agency, as that term is defined in 
Section 
11-13-103
, that enters into an agreement with one or more other public agencies 
for the purpose described in and in accordance with 
Title 11, Chapter 13, Interlocal 
Cooperation Act
.
(6)
"Isolated area" means an area that:
(a)
is entirely within the boundaries of an existing school district;
(b)
is contiguous to the proposed new school district;
(c)
has a combined student population of fewer than 5,000 students; and
(d)
because of the creation of a new school district from the existing district in which the 
area is located, would become completely geographically isolated.
(7)
"Municipality" means the same as that term is defined in Section 
10-1-104
.
(8)
"New school district" means a school district created under Section 
53G-3-301.1
, 
53G-3-301.3
, 
or 
53G-3-301.4
, 
53G-3-301.5
, or 
53G-3-301.6
.
(9)
"Public hearing" means the same as that term is defined in Section 
10-9a-103
.
(9)
(10)
"Reorganized new school district" means the remaining portion of the divided 
school district after
:
(a)
voters approve 
the creation of a new school district under 
Subsection
Section
53G-3-301.1
, 
53G-3-301.3
, or 
53G-3-301.4
.
, when:
(i)
the entire geographical area of the reorganized new school district is not included 
in a proposal for the new school district; or
(ii)
the entire geographical area of the reorganized new school district is:
(A)
included in a proposal for a new school district that voters do not approve; and
(B)
within the boundaries of an existing district that contains an area that is 
included in the new district for which voters approve the creation; or
(b)
the creation of a new school district from a reorganized new school district under 
Section 
53G-3-301.5
 or 
53G-3-301.6
.
Section 4, Section 
53G-3-202
 is amended to read:
53G-3-202 (Effective upon governor's approval). School districts independent of 
municipal and county governments -- School district name -- Control of property.
(1)
(a)
Each school district shall be controlled by its
Except for the duties described in 
Section 
53G-3-302
, each school district is:
(i)
under the control of the district's 
local school board
;
 and
 shall be 
(ii)
independent of municipal and county governments.
(b)
The name of each school district created after May 1, 2000, including a reorganized 
new school district, shall
:
(i)
comply with Section 
17-50-103
.
; and
(ii)
be a name that another school district has not previously chosen and recorded.
(2)
The local school board
 shall have
:
(a)
has 
direction and control of all school property in the district
;
 and
(b)
may enter into cooperative agreements with other local school boards to provide 
educational services that best 
utilize
use
 resources for overall operation of the public 
school system.
(3)
(a)
On or before 
30
60
 days following the day on which the creation of a new school 
district occurs under Section 
53G-3-301
.1, 
53G-3-301.3
, 
or 
53G-3-301.4
, 
53G-3-301.5
, or 
53G-3-301.6
, 
and in accordance with Section 
67-1a-15
, 
the 
following shall register 
a new school district
 shall be registered
 as a limited purpose 
entity
 by
:
(i)
the municipal legislative body 
of the municipality 
in which the boundaries for the 
new school district 
is
are
 entirely located; or
(ii)
the legislative body of interlocal agreement participants in which the new school 
district is located.
(b)
Each school district shall 
register and 
maintain the school district's registration as a 
limited purpose entity in accordance with Section 
67-1a-15
.
(c)
A school district that fails to comply with Subsections 
(3)(a)
 and 
(b)
 or Section 
67-1a-15
 is subject to enforcement by the state auditor in accordance with Section 
67-3-1
.
Section 5, Section 
53G-3-205
 is amended to read:
53G-3-205 (Effective upon governor's approval). Rights of transferred 
employees -- Salary during first two years -- Leave and tenure benefits.
(1)
If a school employee is transferred from one district to another because of district 
consolidation
, creation,
 or restructuring, the employee's salary may not be less, during 
the first 
year
two years
 after the transfer, than 
it
the employee's salary
 would have 
been had the transfer not taken place.
(2)
The district to which an employee is transferred under Subsection 
(1)
 shall credit the 
employee with all accumulated leave and tenure recognized by the district from which 
the employee was transferred.
(3)
If the district to which an employee is transferred does not have a leave benefit which 
reasonably corresponds to one the employee seeks to transfer, that district shall 
compensate the employee for the benefit on the same basis as would have been done had 
the employee retired.
Section 6, Section 
53G-3-301
 is amended to read:
53G-3-301 (Effective upon governor's approval). Creation of new school district 
-- Initiation of process -- Procedures to be followed.
(1)
A new school district may be created from one or more existing school districts, as 
provided in this chapter.
(2)
The process to create a new school district may be initiated:
(a)
through a citizens' petition in accordance with Section 
53G-3-301.1
;
(b)
at the request of a municipality within the boundaries of the school district in 
accordance with Section 
53G-3-301.3
;
 or
(c)
at the request of interlocal agreement participants in accordance with Section 
53G-3-301.4
.
;
(d)
through an action of a municipal legislative body within a reorganized new school 
district under Section 
53G-3-301.5
; or
(e)
through an action of interlocal agreement participants within a reorganized new 
school district under Section 
53G-10-301.6
.
(3)
Except as provided in Sections 
53G-3-301.3
 and 
53G-3-301.4
, a
A
 request or petition 
under Subsection 
(2)
 may not form a new school district unless the new school district 
boundaries
 and the reorganized new school district boundaries
:
(a)
are contiguous;
(b)
do not create an isolated area, as defined in Section 
53G-3-102
; and
(c)
include the entire boundaries of each participant municipality or town
, unless the 
excluded portion of the municipality or town is not within the divided school district
.
(4)
For each new school district, each county legislative body shall comply with the notice 
and plat filing requirements of Section 
53G-3-203
.
(5)
If a new school district is created, the new district shall reimburse the reorganized new 
district's documented costs to study and implement the proposal in proportion to the 
student population of each school district.
(5)
Each new school district shall reimburse each relevant reorganized new school district 
described in Subsection 
53G-3-102(10)(a)(i)
 for the reorganized new school district 
startup costs, as defined in Section 
53G-3-302
, in proportion to the percentage of the 
student population of each new school district and each reorganized new school district 
as of the creation date.
(6)
An inadequacy of a feasibility study, as defined in Section 
53G-3-102
, may not be the 
basis 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.
(7)
Notwithstanding the creation of a new district as provided in this part:
(a)
a new school district and a reorganized new school district may not begin to provide 
educational services to the area within the new school district and reorganized new 
school district until July 1 of the second calendar year following the local school 
board election date as described in Section 
53G-3-301.1
, 
53G-3-301.3
, 
or 
53G-3-301.4
, 
53G-3-301.5
, or 
53G-3-301.6
; and
(b)
the divided school district shall continue, until the time specified in Subsection 
(7)(a)
, 
to provide educational services within the entire area covered by the divided school 
district.
(8)
A new school district and a reorganized new school district shall enter into a shared 
services agreement that permits students residing in each 
new 
school district access to 
attend a school that serves students with disabilities within or outside of each school 
district boundary:
(a)
for up to five years
 after the day on which the new school district commences 
educational services
;
(b)
for actual costs of services provided to students; and
(c)
without affecting services provided to other students.
(9)
The process described in Subsection 
(2)
 may 
not be initiated more than once during 
any two-year period.
only be initiated within a divided school district in the year of the 
allocation date.
Section 7, Section 
53G-3-301.1
 is amended to read:
53G-3-301.1 (Effective upon governor's approval). Creation of a new school 
district -- Citizens' petition -- Procedures to be followed.
(1)
Citizens may file a petition to create a new school district in accordance with this 
section and Section 
53G-3-301
.
(2)
(a)
The county clerk shall ensure that a petition described in Subsection 
(1)
 is signed 
by registered voters residing within the geographical boundaries of the proposed new 
school district in an amount equal to at least 10% of all votes cast within the 
geographic boundaries of the proposed new school district for all candidates for 
president of the United States at the last regular general election at which a president 
of the United States was elected.
(b)
The sponsors of a petition described in Subsection 
(1)
 shall file the petition with the 
clerk of each county in which any part of the proposed new school district is located.
(c)
The petition sponsors shall ensure that the petition described in Subsection 
(1)
:
(i)
indicates the typed or printed name and current residence address of each voter 
who signs the petition;
(ii)
describes the proposed new school district boundaries; and
(iii)
designates up to five signers of the petition as sponsors, designating one as the 
contact sponsor, with the mailing address and telephone number of each.
(3)
(a)
(i)
A signer of a petition described in Subsection 
(1)
 may withdraw or, once 
withdrawn, reinstate the signer's signature by filing a written statement requesting 
for withdrawal or reinstatement with the county clerk no later than three business 
days after the day on which the petition is filed with the county clerk.
(ii)
A statement described in Subsection 
(3)(a)(i)
 shall comply with the requirements 
described in Subsection 
20A-1-1003
(2)
.
(iii)
The county clerk shall use the procedures described in Subsection 
20A-1-1003
(3)
to determine whether to remove or reinstate an individual's signature from a 
petition after receiving a timely, valid statement.
(b)
The county clerk shall use the procedures described in Section 
20A-1-1002
 to 
determine whether the petition has been signed by the required number of registered 
voters residing within the geographical boundaries of the proposed new school 
district.
(4)
Within 14 days after the day on which a petition described in Subsection 
(1)
 is filed, the 
clerk of each county with which the request or petition is filed shall:
(a)
determine whether the petition complies with Subsections 
(2)
 and 
(3)
, as applicable, 
and Section 
53G-3-301
; and
(b)
(i)
if the county clerk determines that the request or petition complies with the 
applicable requirements:
(A)
certify the petition and deliver the certified petition to the county legislative 
body; and
(B)
mail or deliver written notification of the certification to the contact sponsor; 
or
(ii)
if the county clerk determines that the petition fails to comply with any of the 
applicable requirements, reject the petition and notify the contact sponsor in 
writing of the rejection and reasons for the rejection.
(5)
(a)
If the county clerk fails to certify or reject a petition within the time specified in 
Subsection 
(4)
, the petition is considered to be certified.
(b)
If the county clerk rejects a petition, the individual who submitted the petition may 
amend the petition to correct the deficiencies for which the county clerk rejected the 
petition and refile the petition.
(6)
Within 10 days after the day on which a county legislative body receives a certified 
petition as described in Subsection 
(4)
 or 
(5)
, the county legislative body shall request
that the Legislative Audit Subcommittee consider prioritizing
 a feasibility study
, as 
that term is defined in Section 
53G-3-102
.
(7)
(a)
The county legislative body shall:
(i)
provide for a 
45-day
30-day
 public comment period to begin on the day the 
county legislative body receives the study under Subsection (6); and
(ii)
hold at least two public hearings
, as defined in Section 
10-9a-103
,
 on the study 
and recommendations.
(b)
Within five business days after the day on which the public comment period ends, 
the legislative body of each county with which a petition is filed shall vote on the 
creation of the proposed new school district.
(c)
A county legislative body approves a petition proposing a new school district if a 
majority of the members of the legislative body vote in favor of the petition.
(8)
(a)
Within five business days after the day on which a county legislative body 
approves a petition proposing a new school district under Subsection 
(7)
, the county 
legislative body shall provide notice of the approval and a copy of the petition to 
which the approval relates to the county clerk of each county described in Subsection 
(2)(b)
.
(b)
If each county described in Subsection 
(2)(b)
 approves a petition proposing a new 
school district, the county clerks of the counties shall submit the proposal for the 
creation of a new school district to all legal voters in the 
existing school district
proposed new school district
 for approval or rejection at the next regular general 
election that is at least 65 days after the day on which all of the counties described in 
Subsection 
(2)(b)
 have complied with Subsection 
(8)(a)
.
(c)
The new school district proposed in the petition and the reorganized new school 
district are created if a majority of the voters in the 
existing
proposed new
 school 
district vote in favor of creating the new school district.
Section 8, Section 
53G-3-301.3
 is amended to read:
53G-3-301.3 (Effective upon governor's approval). Creation of a new school 
district -- Request by a municipality -- Procedures to be followed.
(1)
A
Except for the creation of a new school district within a reorganized new school 
district in accordance with Section 
53G-3-301.5
, a
 municipality located within the 
boundaries of a school district may file a request to create a new school district in 
accordance with this section and Section 
53G-3-301
.
(2)
(a)
The municipality shall file the request to create a new school district with the 
clerk of each county in which any part of the proposed new school district is located.
(b)
The filing municipality shall ensure that the request described in Subsection 
(2)(a)
:
(i)
indicates the typed or printed and current residence address of each governing 
board member making the request;
(ii)
describes the proposed new school district boundaries; and
(iii)
designates up to five signers of the request as sponsors, including one as the 
contact sponsor, with the mailing address and telephone number of each.
(3)
Within five business days after the day on which a request described in Subsection 
(2)
 is 
filed, the clerk of each county with which the request is filed shall:
(a)
determine whether the request complies with Subsection 
(2)
 and Section 
53G-3-301
; 
and
(b)
(i)
if the county clerk determines that the request complies with the applicable 
requirements:
(A)
certify the request and deliver the certified request to the municipality and 
each county legislative body; and
(B)
mail or deliver written notification of the certification to the contact sponsor; 
or
(ii)
if the county clerk determines that the request fails to comply with any of the 
applicable requirements, reject the request and notify the contact sponsor in 
writing of the rejection and reasons for the rejection.
(4)
(a)
If the county clerk fails to certify or reject the request within the time specified in 
Subsection 
(3)
, the request is considered to be certified.
(b)
If the county clerk rejects the request, the municipality that submitted the request 
may amend the request to correct the deficiencies for which the county clerk rejected 
the request and refile the request.
(5)
(a)
Within 10 days after the day on which a municipal legislative body receives a 
certification as described in Subsection 
(3)
 or 
(4)
, a municipal legislative body shall 
request 
that the Legislative Audit Subcommittee consider prioritizing 
a feasibility 
study
, as that term is defined in Section 
53G-3-102
.
(b)
For the year 2024, the municipal legislative body may use a feasibility study that the 
municipal legislative body conducted before July 1, 2024, if:
(i)
the feasibility study contains the determinations described in Section 
53G-3-102
; 
and
(ii)
the municipality receives a report and recommendation regarding the feasibility 
study in a public meeting.
(6)
(a)
The municipal legislative body shall:
(i)
provide for a 30-day public comment period to begin 
 :
(A)
on the day the study is presented to the municipal legislative body under 
Subsection (5); 
or
and
(B)
if the municipal legislative body uses a feasibility study described in 
Subsection (5)(b), on July 1, 2024; and
(ii)
hold at least two public hearings
, as defined in Section 
10-9a-103
,
 on the study 
and recommendation.
(b)
Within 14 days after the day on which the public comment period ends, the 
municipal legislative body shall vote on the creation of the proposed new school 
district.
(c)
A municipal legislative body approves a proposal if a majority of the municipal 
legislative body vote in favor of the proposal.
(d)
Within five business days after the day on which the municipal legislative body 
approves a request proposing the creation of a new school district, the municipal 
legislative body shall notify the legislative body and the county clerk of each county 
described in Subsection 
(2)(a)
.
(7)
The county clerks of the counties described in Subsection 
(2)(a)
 shall submit the 
proposal for the creation of a new school district to all legal voters residing within the 
proposed new school district boundaries for approval or rejection at the next regular 
general election that is a least 65 days after the day on which the municipal legislative 
body complies with Subsection 
(6)(d)
.
(8)
The new school district described in the request and the reorganized new school district 
are created if a majority of the voters in the proposed new school district boundaries 
vote in favor of creating the new school district.
(9)
Nothing in this section prevents a municipality from assisting the new school district or 
reorganized new school district, including by:
(a)
entering into a loan agreement with the new school district or reorganized new 
school district; or
(b)
assisting the new school district or reorganized new school district in securing a line 
of credit.
Section 9, Section 
53G-3-301.4
 is amended to read:
53G-3-301.4 (Effective upon governor's approval). Creation of a new school 
district -- By interlocal agreement participants -- Procedures to follow.
(1)
(a)
On or after April 30, 2024, interlocal agreement participants may file a request 
proposing the creation of a new school district in accordance with this section and 
Section 
53G-3-301
.
(b)
A municipality may not:
(i)
enter into more than one interlocal agreement for the purpose of submitting for 
voter approval, in the same election, a proposal to create a new school district 
under this part; or
(ii)
participate in a request under this section and submit a request under Section 
53G-3-301.3
 for the same election.
(c)
A municipality may not withdraw from an interlocal agreement under this part, 
unless, before August 1 of the year in which the interlocal agreement participants file 
the request under Subsection 
(1)(a)
:
(i)
the municipality votes, via the legislative body of the municipality, to withdraw 
from the interlocal agreement; and
(ii)
a majority of all municipalities that are participants in the interlocal agreement 
vote to withdraw from the interlocal agreement, via a separate vote of the 
legislative body of each municipality.
(d)
If a majority of all municipalities that are participants in the interlocal agreement 
vote to withdraw from the interlocal agreement under Subsection 
(1)(a)
, the request is 
void and the interlocal agreement participants may not participate in a new or a 
revised request until the following year.
(2)
(a)
Except as provided in Subsection 
(3)
, by a majority vote of each legislative body, 
the legislative body of a municipality, together with at least one other municipality, 
may enter into an interlocal agreement in accordance with 
Title 11, Chapter 13, 
Interlocal Cooperation Act
, for the purpose of submitting for voter approval a 
measure to create a new school district if the new school district boundaries comply 
with the requirements of Section 
53G-3-301
.
(b)
A county may only participate in an interlocal agreement under this Subsection 
(2)
for the unincorporated areas of the county.
(c)
Boundaries of a new school district created under this section may include:
(i)
a portion of one or more existing school districts; and
(ii)
a portion of the unincorporated area of a county.
(3)
(a)
As used in this Subsection 
(3)
, "municipality's school district" means the school 
district that includes all of the municipality in which the isolated area is located 
except the isolated area
, as that term is defined in Section 
53G-3-102
.
(b)
Notwithstanding Subsection 
53G-3-301
(3)
, a municipality may be a participant in an 
interlocal agreement under Subsection 
(2)(a)
 with respect to some but not all of the 
area within the municipality's boundaries if:
(i)
the portion of the municipality proposed to be included in the new school district 
would, if not included, become an isolated area upon the creation of the new 
school district; or
(ii)
(A)
the portion of the municipality proposed to be included in the new school 
district is within the boundaries of the same school district that includes the 
other interlocal agreement participants; and
(B)
the portion of the municipality proposed to be excluded from the new school 
district is within the boundaries of a school district other than the school 
district that includes the other interlocal agreement participants.
(c)
(i)
Notwithstanding Subsection 
53G-3-301
(3)
, interlocal agreement participants 
may submit a proposal to the legal voters residing within the proposed new school 
district boundaries to create a new school district in accordance with an interlocal 
agreement under Subsection 
(2)(a)
, even though the new school district 
boundaries would create an isolated area, 
as that term is defined in Section 
53G-3-102
, 
if:
(A)
the potential isolated area is contiguous to one or more of the interlocal 
agreement participants;
(B)
the interlocal participants submit a written request to the municipality in 
which the potential isolated area is located, requesting the municipality to enter 
into an interlocal agreement under Subsection 
(2)(a)
 that proposes to submit for 
voter approval a proposal to create a new school district that includes the 
potential isolated area; and
(C)
the municipality, to which the interlocal agreement participants submitted a 
request under Subsection 
(3)(c)(i)(B)
, did not respond to the written request 
within 30 days after the day on which the request was submitted.
(ii)
Each municipality receiving a request under Subsection 
(3)(c)(i)
 shall hold at 
least two public hearings to allow input from the public and affected school 
districts regarding whether the municipality should enter into an interlocal 
agreement with respect to the potential isolated area.
(iii)
A municipal legislative body approves a proposal to enter into an interlocal 
agreement with respect to the potential isolated area if a majority of the municipal 
legislative body votes in favor of the proposal.
(d)
(i)
The isolated area described in this Subsection 
(3)
 shall, on July 1 of the second 
calendar year following the local school board general election date described in 
Section 
53G-3-302
, become part of the municipality's school district.
(ii)
The divided 
school 
district shall continue to provide educational services to the 
isolated area until July 1 of the second calendar year following the local school 
board general election date described in Section 
53G-3-302
.
(4)
(a)
Interlocal agreement participants shall file a request described in Subsection 
(1)
with the clerk of each county in which any part of the proposed new school district is 
located.
(b)
The filing interlocal agreement participants shall ensure that the request described in 
Subsection 
(4)(a)
:
(i)
indicates the typed or printed and current residence address of each governing 
board member making a request;
(ii)
describes the proposed new school district boundaries; and
(iii)
designates up to five signers of the request as sponsors, including as the contact 
sponsor, with the mailing address and telephone number of each.
(5)
Within five business days after the day on which a request described in Subsection 
(4)(a)
is filed, the clerk of each county with which the request is filed shall:
(a)
determine whether the request complies with this section and Section 
53G-3-301
; and
(b)
(i)
if the county clerk determines that the request complies with the applicable 
requirements:
(A)
certify the request and deliver the certified request to the legislative bodies of 
the interlocal agreement participants; and
(B)
mail or deliver written notification of the certification to the contact sponsor; 
or
(ii)
if the county clerk determines that the request fails to comply with any of the 
applicable requirements, reject the request and notify the contact sponsor in 
writing of the rejection and reasons for the rejection.
(6)
(a)
If the county clerk fails to certify or reject a request within the time specified in 
Subsection 
(5)
, the request is considered to be certified.
(b)
If the county clerk rejects a request, the interlocal agreement participants that 
submitted the request may amend the request to correct the deficiencies for which the 
county clerk rejected the request, and refile the request.
(7)
(a)
Within 30 days after the day on which the contact sponsor receives certification 
as described in Subsection 
(5)
 or 
(6)
, the contact sponsor shall request
 that the 
Legislative Audit Subcommittee consider prioritizing
 a feasibility study
, as that 
term is defined in Section 
53G-3-102
.
(b)
For the year 2024, the interlocal agreement participants may use a feasibility study 
that interlocal agreement participants conducted before July 1, 2024, if:
(i)
the feasibility study contains the determinations described in Section 
53G-3-102
; 
and
(ii)
the legislative bodies of the interlocal agreement participants receive a report and 
recommendation regarding the feasibility study in a public meeting.
(8)
(a)
The legislative bodies of the interlocal agreement participants
,
and each 
municipality within the geographic boundaries of the proposed new school district, 
shall:
(i)
provide for a 30-day public comment period to begin 
 :
(A)
on the day on which the legislative bodies of the interlocal agreement 
participants receive 
the report under
a feasibility study described in
Subsection (7); 
or
and
(B)
on July 1, 2024, if the municipal legislative body uses a feasibility study 
described in Subsection (7)(b), regardless of whether the municipal legislative 
body provided all or a portion of a public comment period in relation to the 
feasibility study before July 1, 2024; and
(ii)
except as provided in Subsection 
(8)(d)
, 
hold at least two public hearings
, as 
defined in Section 
10-9a-103
,
 on the study and recommendation.
(b)
Within 14 days after the day on which the public comment period ends, the 
legislative bodies of the interlocal agreement participants shall vote on the creation of 
the proposed new school district.
(c)
The interlocal agreement participants approve a proposal if a majority of 
each of 
the legislative bodies of 
municipalities that are participants in 
the interlocal agreement
 participants' members
 vote in favor of the proposal.
(d)
If the municipal legislative body uses a feasibility study described in Subsection 
(7)(b), the number of public hearings required under Subsection (8)(a)(ii) is reduced 
by the number of public hearings the municipal legislative body held on the 
feasibility study before July 1, 2024.
(9)
Within five business days after the day on which the interlocal agreement participants 
approve a request proposing the creation of a new school district, the interlocal 
agreement participants shall notify the legislative body and the county clerk of each 
county described in Subsection 
(4)(a)
.
(10)
(a)
The county clerks of the counties described in Subsection 
(4)(a)
 shall submit the 
proposal for the creation of a new school district to all legal voters residing within the 
proposed new school district boundaries for approval or rejection at the next regular 
general election that is at least 65 days after the day on which the interlocal 
agreement participants comply with Subsection 
(9)
.
(b)
The new school district described in the request and the reorganized new school 
district are created if a majority of the voters in the proposed new school district 
boundaries vote in favor of creating the new school district.
(11)
Nothing in this section prevents an interlocal agreement participant from assisting the 
new school district or reorganized new school district, including by:
(a)
entering into a loan agreement with the new school district or reorganized new 
school district; or
(b)
assisting the new school district or reorganized new school district in securing a line 
of credit.
Section 10, Section 
53G-3-301.5
 is enacted to read:
53G-3-301.5 (Effective upon governor's approval). Creation of a new school 
district within a reorganized new school district by a municipality.
(1)
(a)
Except as provided in Subsection 
(6)
, no later than 21 days after the creation date 
of a reorganized new school district, a municipality within the reorganized new 
school district may begin creating a new school district by:
(i)
a majority vote of the legislative body; and
(ii)
filing a request to create a new school district with the clerk of each county in 
which any part of the proposed new school district is located.
(b)
The filing municipality shall ensure that the request described in Subsection 
(1)(a)
:
(i)
indicates the typed or printed and current residence address of each governing 
board member making the request;
(ii)
describes the proposed new school district boundaries; and
(iii)
designates up to five signers of the request as sponsors, including one as the 
contact sponsor, with the mailing address and telephone number of each.
(c)
Within five business days after the day on which a municipality files a request 
described in Subsection 
(1)(a)
, the clerk of each county in which the request is filed 
shall determine whether the request complies with Subsection 
(2)
 and Section 
53G-3-301
 and:
(i)
if the county clerk determines that the request complies with the applicable 
requirements:
(A)
certify the request;
(B)
deliver the certified request to the municipality and each relevant county 
legislative body; and
(C)
mail or deliver written notification of the certification to the contact sponsor; 
or
(ii)
if the county clerk determines that the request fails to comply with any of the 
applicable requirements:
(A)
reject the request; and
(B)
notify the contact sponsor in writing of the rejection and the reasons for the 
rejection.
(d)
(i)
If the county clerk fails to certify or reject a request described in Subsection 
(1)(a)
 within the time specified in Subsection 
(1)(c)
, the request is certified.
(ii)
If the county clerk rejects the request, the interlocal participants that submitted 
the request may, within 21 days after day on which the county clerk provides 
notice of the rejection:
(A)
amend the request to correct the deficiencies for which the county clerk 
rejected the request; and
(B)
file the amended request.
(2)
(a)
Within five days after the day on which the clerk mails or delivers the certified 
request to the contact sponsor representing the municipality under Subsection 
(1)(c)(i)
, 
the municipal legislative bodies shall request a feasibility study.
(b)
Within 10 days after the finalization of the determinations and recommendations of 
the feasibility study, the municipal legislative bodies shall receive the determinations 
and recommendations in a public meeting.
(3)
(a)
The legislative body receiving the feasibility study shall:
(i)
except as provided in Subsection 
(6)
, provide for a 30-day public comment period 
to begin on the day of the public meeting in which the municipal legislative body 
receives the study under Subsection (2); and
(ii)
hold at least two public hearings on the study and recommendation.
(b)
(i)
Within seven days after the day on which the public comment period described 
in Subsection 
(3)(a)
 ends, the municipal legislative body shall vote on the creation 
of the proposed new school district.
(ii)
A municipality creates a new school district if a majority of the members the 
municipal legislative body votes in favor of the proposal.
(iii)
Within five business days after the day on which the municipality creates a new 
school district under this Subsection 
(3)
, the municipality shall notify the clerk of 
each county described in Subsection 
(1)
.
(4)
A municipality may not file a request under Subsection 
(1)
 if the proposed new school 
district has boundaries that are identical to the boundaries of a proposed new school 
district that voters rejected in the immediately previous general election.
(5)
Except as provided in Subsection 
(6)
, a municipality may not create a new school 
district under this section unless the municipality completes the process described in this 
section on or before March 15 of the year immediately following the general election 
that resulted in the creation of the reorganized new school district.
(6)
For the municipal creation of a new school district within a reorganized new school 
district resulting from the 2024 general election under Subsection 
(3)(b)(ii)
:
(a)
notwithstanding Subsection 
(1)(a)
, the deadline for the municipality to file a request 
under Subsection 
(1)(a)
 is 10 days after the effective date of this bill;
(b)
notwithstanding Subsection 
(3)(a)(i)
, the municipality shall provide a 10-day public 
comment period;
(c)
notwithstanding Subsection 
(5)
, the deadline for the creation of the new school 
district under this section is 60 days after the effective date of this bill; and
(d)
in accordance with Section 
20A-14-201
, the deadline to redistrict local school board 
districts is 75 days after the effective date of this bill.
Section 11, Section 
53G-3-301.6
 is enacted to read:
53G-3-301.6 (Effective upon governor's approval). Creation of a new school 
district with a reorganized new school district by interlocal participants.
(1)
(a)
Except as provided in Subsection 
(6)
, no later than 21 days after the creation date 
of a reorganized new school district, more than one municipality within the 
reorganized new school district may begin creating a new school district under an 
interlocal agreement:
(i)
if the new school district:
(A)
includes the entire boundaries of each participant municipality within the 
proposed new school district, unless the excluded portion of the municipality is 
not within the reorganized new school district;
(B)
has contiguous boundaries; and
(C)
does not create an isolated area; and
(ii)
by:
(A)
a majority vote of the legislative body of each participant municipality within 
the proposed new school district boundaries; and
(B)
filing a request to create a new school district with the clerk of each county in 
which any part of the proposed new school district is located.
(b)
The filing interlocal participants shall ensure that the request described in Subsection 
(1)(a)
:
(i)
indicates the typed or printed and current residence address of each governing 
board member making the request;
(ii)
describes the proposed new school district boundaries; and
(iii)
designates up to five signers of the request as sponsors, including one as the 
contact sponsor, with the mailing address and telephone number of each.
(c)
Within five business days after the day on which interlocal participants file a request 
described in Subsection 
(1)(a)
, the clerk of each county in which the request is filed 
shall determine whether the request complies with Subsection 
(2)
 and Section 
53G-3-301
 and:
(i)
if the county clerk determines that the request complies with the applicable 
requirements:
(A)
certify the request;
(B)
deliver the certified request to the contact sponsor and each relevant county 
legislative body; and
(C)
mail or deliver written notification of the certification to the contact sponsor; 
or
(ii)
if the county clerk determines that the request fails to comply with any of the 
applicable requirements:
(A)
reject the request; and
(B)
notify the contact sponsor in writing of the rejection and the reasons for the 
rejection.
(d)
(i)
If the county clerk fails to certify or reject a request described in Subsection 
(1)(a)
 within the time specified in Subsection 
(1)(c)
, the request is certified.
(ii)
If the county clerk rejects the request, the interlocal participants that submitted 
the request may, within 21 days after the day on which the county clerk provides 
notice of the rejection:
(A)
amend the request to correct the deficiencies for which the county clerk 
rejected the request; and
(B)
file the amended request.
(2)
(a)
Within 5 days after the day on which the clerk mails or delivers the certified 
request to the contact sponsor representing the interlocal participants under 
Subsection 
(1)(c)(i)
, the municipal legislative body of each interlocal participant shall 
request a feasibility study.
(b)
Within 10 days of the finalization of the determinations and recommendations of the 
feasibility study, the municipal legislative body of each interlocal participant shall 
receive the determinations and recommendations in a public meeting.
(3)
(a)
The legislative body receiving the feasibility study shall:
(i)
except as provided in Subsection 
(6)
, provide for a 30-day public comment period 
to begin on the day of the public meeting in which the municipal legislative bodies 
receive the study under Subsection (2); and
(ii)
hold at least two public hearings on the study and recommendation.
(b)
(i)
Within seven days after the day on which the public comment period described 
in Subsection 
(3)(a)
 ends, the municipal legislative bodies shall vote on the 
creation of the proposed new school district.
(ii)
Interlocal participants create a new school district if a majority of the municipal 
legislative body votes in favor of the proposal.
(iii)
Within five business days after the day on which the interlocal participants create 
a new school district under this Subsection 
(3)
, the municipal legislative body 
shall notify the clerk of each county described in Subsection 
(1)
.
(4)
Interlocal participants may not file a request under Subsection 
(1)
 if the proposed new 
school district has boundaries that are identical to the boundaries of a proposed new 
school district that voters rejected in the immediately previous general election.
(5)
Except as provided in Subsection 
(6)
, interlocal participants may not create a new 
school district under this section unless the municipality completes the process described 
in this section on or before March 15 of the year immediately following the general 
election that resulted in the creation of the reorganized new school district.
(6)
For the interlocal creation of a new school district within a reorganized new school 
district resulting from the 2024 general election under Subsection 
(3)(b)(ii)
:
(a)
notwithstanding Subsection 
(1)(a)
, the deadline for interlocal participants to file a 
request under Subsection 
(1)(a)
 is 10 days after the effective date of this bill;
(b)
notwithstanding Subsection 
(3)(a)(i)
, interlocal participants shall provide a 10-day 
public comment period;
(c)
notwithstanding Subsection 
(5)
, the deadline for the creation of the new school 
district under this section is 45 days after the effective date of this bill; and
(d)
in accordance with Section 
20A-14-201
, the deadline to redistrict local school board 
districts is 75 days after the effective date of this bill.
Section 12, Section 
53G-3-302
 is amended to read:
53G-3-302 (Effective upon governor's approval) (Applies beginning 11/04/24). 
Election of local school board members -- Allocation of assets and liabilities -- Startup 
costs -- Transfer of title.
(1)
As used in this section:
(a)
"Associated property" means furniture, equipment, or supplies located in or 
specifically associated with a physical asset.
(b)
"Director" means the individual the municipal legislative body or mayoral board 
selects under Subsection 
(3)
.
(c)
(i)
"Discretionary asset or liability" means an asset or liability that is not tied to a 
specific project, school, student, or employee by law or school district accounting 
practice.
(ii)
"Discretionary asset or liability" does not include a physical asset, associated 
property, a vehicle, an employee, or bonded indebtedness.
(d)
(i)
"New school district startup costs" means the costs and expenses a new school 
district incurs from the date of creation until the allocation date to prepare to begin 
providing educational services on July 1 of the second calendar year following the 
local school board election date described in Subsection 
(2)
, including costs of the 
director, contractors, and employees.
(ii)
"New school district startup costs" does not include the purchase of a physical 
asset or vehicle.
(e)
(i)
"Nondiscretionary asset or liability" means an asset or liability that is tied to a 
specific project, school, student, or employee by law or school district accounting 
practice.
(ii)
"Nondiscretionary asset or liability" does not include a physical asset, associated 
property, a vehicle, or bonded indebtedness.
(f)
"Physical asset" means a building, land, or water right together with revenue derived 
from the lease or use of the building, land, or water right.
(g)
"Physical liability" means a liability associated with a physical asset.
(h)
(i)
"Reorganized new school district startup costs" means the costs and expenses 
that a reorganized new school district incurs from the date of creation until the 
allocation date to make necessary adjustments to deal with the impacts resulting 
from the creation of the new school district and to prepare to provide educational 
services within the reorganized new school district once the reorganized new 
school district begins providing educational services within the new school 
district, including costs of the director, contractors, and employees.
(ii)
"Reorganized new school district startup costs" does not mean the purchase of a 
physical asset or a vehicle.
(1)
(2)
(a)
If voters approve a proposal to create a new school district under this part
, if a 
municipal legislative body creates a new school district under Section 
53G-3-301.5
, 
or if interlocal agreement participants create a new school district under Section 
53G-3-301.6
:
(i)
the legislative body of each county where all or a part of the new school district 
and the reorganized new school district are located shall hold elections
,
 during the 
year immediately following the year in which the voters approve the proposal 
or 
municipal legislative bodies or interlocal agreement participants create a new 
school district, 
to elect members to the local school board of the new school 
district and 
to the local school board of 
the reorganized new school district, as 
follows:
(A)
the filing period for a declaration of candidacy 
will be
is
 the same as the 
filing period for 
a
the next regular or
 municipal 
general 
election
 for the given 
year
;
(B)
the primary election 
will be
is
 held on the same day as the 
municipal 
primary election
 for the next regular or municipal general election for the given 
year
; and
(C)
the general election 
will be
is
 held on the same day as the 
municipal
next 
regular or municipal
 general election
 for the given year
;
(ii)
the
any
 new school district and reorganized new school district shall divide the 
assets and liabilities of the divided school district between the 
new school district 
and the reorganized new school district as provided in Subsection (3)
school 
districts in accordance with Subsection 
(4)
 and Section 
53G-3-307
;
(iii)
transferred employees shall be treated
any new school district and reorganized 
new school district shall treat the employment of transferred employees from the 
divided school district
 in accordance with Sections 
53G-3-205
 and 
53G-3-308
;
(iv)
an individual residing within the boundaries of a new school district or 
reorganized new school district at the time the new school district is created may, 
for six school years following the creation of the new school district, elect to 
enroll in a secondary school located outside the boundaries of the 
reorganized 
new 
school district if:
(A)
the individual resides within the boundaries of 
that
the
 secondary school 
as 
of
on
 the day before 
the creation of 
the new school district
 is created
; and
(B)
the individual would have been eligible to enroll in 
that
the
 secondary school 
had
if not for the creation of
 the new school district
 not been created
;
(v)
the 
reorganized 
new school district 
in which the secondary school is located 
shall provide educational services, including, if provided before the creation of the 
new school district, busing to each individual making an election under 
Subsection 
(1)(a)(iv)
(2)(a)(iv)
 for each school year for which the individual 
makes the election; and
(vi)
within one year following the date on which the new school district begins 
providing educational services, the superintendent of each affected school district 
shall meet, together with the state superintendent, to determine if further boundary 
changes should take place in accordance with Section 
53G-3-501
.
(b)
(i)
The county or municipal legislative bodies that conduct redistricting for the 
new school district and the reorganized new school district shall, at the meeting 
where the county or municipal legislative bodies adopt the final redistricting 
maps, adjust the initial terms of the board members for the new school district and 
the reorganized new school district, by lot, so that approximately half of the board 
members on each board will have an initial term of three years with the other 
members having an initial term of five years.
(ii)
The term of a member of the divided school district local school board 
terminates on January 1 of the year following the allocation date.
(iii)
(ii)
Notwithstanding the existence of the new school district local school board 
and the reorganized new school district local school board under Subsection 
(1)(a)(i)
(2)(a)(i)
, the divided school district local school board shall continue to 
function and exercise authority as a local school board until the allocation date to 
the extent necessary to continue to provide educational services to the entire 
divided school district.
(iv)
(iii)
An individual may simultaneously serve as or be elected to be a member of 
the local school board of a divided school district and a member of the local 
school board of:
(A)
a new school district; or
(B)
a reorganized new school district.
(iv)
On the allocation date, the divided school district and the associated local school 
board cease to exist.
(3)
(a)
Upon creation of a new school district or a reorganized new school district, the 
following shall commence the start-up phase:
(i)
for a new school district or a reorganized new school district located entirely 
within the boundaries of a single municipality, the legislative body of the 
municipality; or
(ii)
for a new school district or reorganized new school district that is not located 
entirely within the boundaries of a single municipality, the legislative bodies of 
the municipalities within which the new school district or reorganized new school 
district is located, through an interlocal agreement.
(b)
Participants to the interlocal agreement described in Subsection 
(3)(a)
 shall ensure 
that the interlocal agreement:
(i)
establishes a board composed of the mayors of each municipality; and
(ii)
includes a provision that requires that each municipality represented on the board 
described in Subsection 
(3)(b)(i)
 has weighted representation in decision-making 
based on the percentage of the tax value of each municipality within the relevant 
new school district or reorganized new school district as of the creation date.
(c)
Within the later of 45 days of the creation date or 30 days after the effective date of 
this bill, the legislative body described in Subsection 
(3)(a)(i)
 or the board described 
in Subsection 
(3)(b)
 shall:
(i)
to reimburse costs after the creation date:
(A)
enter into a loan agreement with the new school district or reorganized new 
school district; or
(B)
assist the new school district or reorganized new school district in securing a 
line of credit;
(ii)
select an individual to serve as the director as described in this section who has:
(A)
outstanding professional qualifications in the field of education;
(B)
a doctorate degree in education;
(C)
experience teaching in a classroom in a public school within the state; and
(D)
experience in administration in a public school or school district within the 
state; and
(iii)
assist the director in establishing a budget.
(d)
Upon selection of the director:
(i)
the mayoral board described in Subsection 
(3)(b)(i)
 dissolves and the interlocal 
agreement described in Subsection 
(3)(a)
 terminates;
(ii)
the state auditor:
(A)
shall oversee the director until members of the local school board of the new 
school district or reorganized new school district appoints a district 
superintendent;
(B)
shall enter into a written employment agreement that sets compensation and 
benefits at an amount not less than the average compensation of a 
superintendent of a school district of a size that is similar to the relevant new 
school district or reorganized new school district and that includes a term of 
employment with the relevant new school district through the allocation date;
(C)
shall assist the director in establishing a budget; and
(D)
may terminate the director for malfeasance in office, as that term is defined in 
Section 
63A-14-102
, at any time before the local school board election date 
described in Subsection 
(2)(a)
.
(e)
The following may not be the director, be an employee of or under retention by the 
director, or interfere with or impede the duties of the director:
(i)
an appointed or elected official of:
(A)
the divided school district; or
(B)
a municipality within the divided school district while in office;
(ii)
a current employee of a municipality within the divided school district; or
(iii)
a current employee of the divided school district.
(f)
Until the relevant local school board takes office, the director, on behalf of a new 
school district or a reorganized new school district, has sole authority to:
(i)
establish and maintain a sufficient budget that encompasses the estimated new 
school district or reorganized new school district startup costs;
(ii)
expend funds for payroll, professional services, leases, software, hardware, and 
other operating expenses;
(iii)
select, employ, or otherwise engage the services of employees and contractors, 
including lobbyists, certified public accountants, accountants, architects, 
attorneys, information technology professionals, construction contractors, 
education professionals, teacher training or retention professionals, and other 
consultants;
(iv)
set compensation for each employee and contractor;
(v)
establish payroll services, employee benefits, insurance, health savings accounts, 
flexible spending accounts, and retirement accounts through public and other 
retirement and investment services;
(vi)
lease office space;
(vii)
open bank and depository accounts;
(viii)
temporarily exercise the rights of a local school board to bring and maintain 
actions under Section 
53G-3-306
; and
(ix)
obtain a copy of the inventory described in Subsection 
(4)(a)
 from the Office of 
the Legislative Auditor General.
(g)
The local school board of the new school district or reorganized new school district 
shall ratify any agreement into which the director enters.
(h)
When the members of the local school board of the new school district or 
reorganized new school district begin the members' terms of office:
(i)
the state auditor shall transfer oversight and employment of the director to the 
local school board;
(ii)
by mutual agreement, the local school board of the new school district or 
reorganized new school district may revise the employment agreement of the 
director and the employees or contractors of the school district; and
(iii)
the local school board shall appoint a district superintendent.
(i)
Upon appointment of a district superintendent:
(i)
the director has no further authority or duties; and
(ii)
the director position dissolves.
(2)
(4)
(a)
The divided school district local school board shall
, 
:
(i)
within 60 days after the creation date
:
(i)
prepare an 
initial 
inventory of the divided school district's:
(A)
assets, both tangible and intangible, real and personal; and
(B)
liabilities;
 and
(ii)
deliver a copy of the inventory to the Office of the Legislative Auditor General.
(ii)
on or before May 10 of the year following the creation date:
(A)
prepare a detailed asset inventory, with records, of the divided school district's 
assets and the location of each associated property, discretionary asset, 
nondiscretionary asset, and physical asset; and
(B)
prepare a detailed inventory of the divided school district's liabilities, with 
records, that includes a description of any liability, including an estimate cost 
to resolve the liability, for each associated property, discretionary asset, 
nondiscretionary asset, physical asset, and unresolved demands, claims, or suits 
with an estimated cost to resolve each liability;
(iii)
mutually agree with the local school board of each relevant district or the 
directors for each relevant district to establish a regular schedule for the divided 
school district local school board to, between the creation date and the allocation 
date, prepare regular updates including any change in the information required in 
the inventory and liability reports described in this Subsection 
(4)(a)
; and
(iv)
deliver the reports described in this Subsection 
(4)(a)
 to:
(A)
the Office of the Legislative Auditor General; and
(B)
each relevant director or the local school board of each relevant new school 
district and reorganized new school district.
(b)
Following the local school board election date described in Subsection 
(1)(a)
(2)(a)
, 
the new school district and reorganized new school district local school boards shall:
(i)
request a copy of the inventory described in Subsection (2)(a) from the Office of 
the Legislative Auditor General;
(ii)
(i)
in cooperation with the local school board of each new school district and 
reorganized new school district, 
determine the allocation of the divided school 
district's assets and, except for indebtedness under Section 
53G-3-307
, liabilities 
of the new school district and reorganized new school district in accordance with 
Subsection 
(3)
(5)
;
(iii)
(ii)
prepare a written report detailing the allocation under Subsection 
(2)(b)(ii); 
and
(4)(b)(i)
;
(iii)
prepare a written report of the disposition of assets and liabilities upon which the 
local school boards could not agree; and
(iv)
deliver a copy of the written report to the Office of the Legislative Auditor 
General and the 
local school board of the 
divided school district
 local board
.
(c)
The new school district and reorganized new school district local boards shall 
determine the allocation under Subsection 
(2)(b)
(4)(b)
 and deliver the report 
required under Subsection 
(2)(b)
(4)(b)
 on or before July 1 of the year following the 
school board election date
 described in Subsection 
(2)(a)
, unless that deadline is 
extended by mutual agreement of the 
local school boards of the 
new school district 
and reorganized new school district
 local boards
.
(3)
(5)
(a)
As used in this Subsection (3):
(i)
"Associated property" means furniture, equipment, or supplies located in or 
specifically associated with a physical asset.
(ii)
(A)
"Discretionary asset or liability" means, except as provided in Subsection 
(3)(a)(ii)(B), an asset or liability that is not tied to a specific project, school, 
student, or employee by law or school district accounting practice.
(B)
"Discretionary asset or liability" does not include a physical asset, associated 
property, a vehicle, or bonded indebtedness.
(iii)
(A)
"Nondiscretionary asset or liability" means, except as provided in 
Subsection (3)(a)(iii)(B), an asset or liability that is tied to a specific project, 
school, student, or employee by law or school district accounting practice.
(B)
"Nondiscretionary asset or liability" does not include a physical asset, 
associated property, a vehicle, or bonded indebtedness.
(iv)
"Physical asset" means a building, land, or water right together with revenue 
derived from the lease or use of the building, land, or water right.
(b)
(a)
Except as provided under Subsection 
(3)(c)
(5)(b)
, the new school district and 
reorganized new school district local school boards shall allocate all assets and 
liabilities the divided school district owns on the allocation date, both tangible and 
intangible, real and personal
 as follows
, allocating
:
(i)
a physical asset
, physical liability,
 and associated property asset 
shall be allocated 
to the school district in which the physical asset is located;
(ii)
a discretionary asset or liability 
shall be allocated 
between the new school 
district and reorganized new school district in proportion to the student population 
of the school districts;
(iii)
vehicles used for pupil transportation
 shall be allocated
:
(A)
according to the transportation needs of schools, as measured by the number 
and assortment of vehicles used to serve eligible state supported transportation 
routes serving schools within the new school district and the reorganized new 
school district; and
(B)
in a manner that gives each school district a fleet of vehicles for pupil 
transportation that is equivalent in terms of age, condition, and variety of 
carrying capacities; and
(iv)
other vehicles
 shall be allocated
:
(A)
in proportion to the student population of the school districts; and
(B)
in a manner that gives each district a fleet of vehicles that is similar in terms 
of age, condition, and carrying capacities.
(c)
(b)
By mutual agreement, the new school district and reorganized new school 
district local school boards may allocate an asset or liability in a manner different 
than the allocation method specified in Subsection 
(3)(b)
(5)(a)
.
(4)
(6)
(a)
As used in this Subsection (4):
(i)
"New school district startup costs" means the costs and expenses incurred by a 
new school district in order to prepare to begin providing educational services on 
July 1 of the second calendar year following the local school board election date 
described in Subsection (1)(a)(i).
(ii)
"Reorganized new school district startup costs" means the costs and expenses 
that a reorganized new school district incurs to make necessary adjustments to 
deal with the impacts resulting from the creation of the new school district and to 
prepare to provide educational services within the reorganized new school district 
once the new school district begins providing educational services within the new 
school district.
(b)
On or before January 1 of the year following the new local school board election 
date described in Subsection (1)(a)(i), the divided school district shall make the 
unassigned reserve funds from the divided school district's general fund available for 
the use of the reorganized new school district and the new school district in 
proportion to the student enrollment of each new school district.
(c)
The divided school district may make additional funds available for the use of the 
reorganized new school district and the new school district beyond the amount 
specified in Subsection (4)(b) through an interlocal agreement.
(d)
The following may access and spend money made available under Subsection (4)(b):
(i)
the reorganized new school district local school board; and
(ii)
the new school district local school board.
(e)
The new school district and the reorganized new school district may use the money 
made available under Subsection (4)(b) to pay for the new school district and 
reorganized new school district startup costs.
(a)
The divided school district board shall:
(i)
budget for and distribute a per-student amount, based on the most recent October 1 
student enrollment count described in Section 
53F-2-302
 immediately preceding 
the date of each payment, to each new school district and reorganized new school 
district in proportion to the student enrollment within the geographical boundaries 
of each district, in the amount of:
(A)
$40 per student, paid on or before July 1 of the year following the creation 
date;
(B)
$40 per student, paid on or before January 1 of the year following the local 
school board election date described in Subsection 
(2)(a)
; and
(C)
$40 per student, paid on or before January 1 of the second year following the 
local school board election date described in Subsection 
(2)(a)
; and
(ii)
beginning January 1, 2028, annually adjust the amounts described in Subsection 
(6)(a)(i)
 to reflect the official inflation rate that the U.S. Bureau of Labor Statistics 
establishes.
(b)
(i)
After the creation date, the local school board of the divided district may issue 
one or more lease revenue bonds, in accordance with Section 
11-14-103
, through 
an interlocal agreement that:
(A)
records the date, terms, and amount of the lease revenue bond the divided 
school district provides;
(B)
designates the new school district or reorganized new school district that is the 
recipient of the bond proceeds as the local political subdivision receiving the 
bond proceeds;
(C)
obligates the new school district or reorganized new school district receiving 
the bond proceeds to repay the bond;
(D)
evidences the written consent of the applicable local school board of the 
divided school district and the local school board or the director for the new 
school district or reorganized new school district;
(E)
prohibits the bond from inclusion in the outstanding bond indebtedness of the 
divided school district, in accordance with Section 
53G-3-307
; and
(F)
provides that the divided school district makes the bond payments until the 
allocation date and that the amounts the divided school district be allocated to 
the new school district or reorganized new school district receiving the bond 
proceeds in accordance with this section.
(ii)
This Subsection 
(6)(b)
 applies retrospectively to a lease revenue bond that a 
divided school district issued after November 4, 2024.
(c)
(i)
After the creation date, the local school board of the divided school district may 
issue a general obligation bond for a local political subdivision that is specific to a 
new school district or a reorganized new school district within the divided school 
district, in accordance with Section 
11-14-103
.
(ii)
The local school board shall ensure that the resolution submitting the question of 
the issuance of the bond by the divided school district, in accordance with Section 
11-14-201
:
(A)
designates the new school district or reorganized new school district that is the 
recipient of the bond proceeds as the local political subdivision receiving the 
bond proceeds;
(B)
obligates the local political subdivision receiving the bond proceeds to repay 
the bond;
(C)
occurs with the written consent of the applicable local school board or the 
relevant director;
(D)
prohibits the bond from inclusion in the outstanding bonded indebtedness of 
the divided school district, in accordance with Section 
53G-3-307
;
(E)
provides that the divided school district may not issue the bond unless the 
majority of the qualified voters of the divided school district who vote on the 
bond proposition approve the issuance of the bond; and
(F)
provides that the divided school district is responsible for the bond payments 
until the allocation date and that the amounts the divided school district paid be 
allocated to the local political subdivision receiving the bond proceeds under 
Section 
53G-3-302
.
(iii)
(A)
Only qualified voters within the divided school district may vote on the 
bond proposition described in this Subsection 
(6)(c)
; and
(B)
The divided school district may not issue the bond unless the majority of the 
qualified voters who vote on the bond proposition approve the issuance of the 
bond.
(iv)
This Subsection 
(6)(c)
 applies retrospectively to a general obligation bond that a 
divided school district issued after November 4, 2024.
(d)
The following may access and spend funds made available under Subsections 
53G-3-301.3(9)
 and 
53G-3-301.4(11)
 and under this Subsection 
(6)
:
(i)
for each reorganized new school district, the director and the local school board; 
and
(ii)
for each new school district, the director and the local school board.
(5)
(7)
(a)
The divided school district shall transfer title or, if applicable, partial title of 
property to the new school district and the reorganized new school district in 
accordance with the allocation of property as stated in the report under Subsection 
(2)(b)(iii)
(4)(b)(ii)
.
(b)
The divided school district shall complete each transfer of title or, if applicable, 
partial title to real property and vehicles on or before one calendar year from the date 
of the local school board election date described in Subsection 
(1)(a)(i)
(2)(a)
, 
except as that date is changed by the mutual agreement of:
(i)
the local school board of the divided school district;
(ii)
the local school board of the reorganized new school district; and
(iii)
the local school board of the new school district.
(c)
The divided school district shall complete the transfer of all property not included in 
Subsection 
(5)(b)
(7)(b)
 on or before November 1 of the
 calendar
 year following 
the local school board election date described in Subsection 
(1)(a)(i)
(2)(a)
.
(6)
(d)
Except as provided in 
this 
Subsection 
(5)
(7)
, a divided school district may not 
transfer or agree to transfer title to district property
, including a vehicle, a 
discretionary asset, a non-discretionary asset, or associated property,
 beginning on 
the 
day the new school district or reorganized new school district is created
creation 
date,
 without the prior consent of
:
 the director or the local school board of each new 
school district or reorganized new school district.
(a)
the legislative body of the municipality in which the boundaries for the new school 
district or reorganized new school district are entirely located; or
(b)
the legislative bodies of all interlocal agreement participants in which the 
boundaries of the new school district or reorganized new school district are located.
(8)
(a)
Each director appointed under Subsection 
(3)
 shall:
(i)
issue the following written reports:
(A)
an asset and liability report that includes a proposed allocation of assets and 
liabilities, as described in Subsection 
(8)(b)
; and
(B)
a local school assessment report, as described in Subsection 
(8)(c)
;
(ii)
complete the reports in cooperation with each other relevant director;
(iii)
on or before February 15 of the year following the local school board election 
date, as described in Subsection 
(2)(a)
, present a copy of each report to the local 
school board of each new school district and reorganized new school district; and
(iv)
deliver a copy of each report to the Office of the Legislative Auditor General.
(b)
Each director shall ensure that an asset and liability report includes:
(i)
the location of, a description of, and applicable records for:
(A)
each physical asset;
(B)
each associated property; 
(C)
each non-discretionary asset or liability;
(D)
each discretionary asset or liability;
(E)
each vehicle within the divided school district, as described in Subsection 
(5)(a)(iii)
;
(F)
each interlocal agreement between the divided school district and other 
governmental entities;
(G)
each vendor agreement for the divided school district;
(H)
each employment or other agreement involving compensation, benefits, 
bonuses, or severance of the divided school district;
(I)
all known and unresolved claims, rights, or causes of action or liabilities that a 
party has made or asserted against the divided school district, including each 
unresolved Title IX claim;
(J)
the policies and procedures of the divided school district and the district's local 
school board, including school and student safety plans;
(K)
the divided school district's policies and practices regarding personnel, 
including salary schedules, benefits, and COBRA administration; and
(L)
any other item or record the director deems necessary;
(ii)
any cooperative agreements between each new local school board and other local 
school boards to provide educational services to use resources for the overall 
operation of the public school system, as described in Section 
53G-3-202
;
(iii)
a valuation from an independent third party, whom the director selects, of:
(A)
each discretionary asset or liability; and 
(B)
each bus and vehicle within the divided school district;
(iv)
a proposed allocation of the:
(A)
divided school district's assets and liabilities;
(B)
divided school district's outstanding bonded indebtedness, as described in 
Section 
53G-3-307
;
(C)
divided school district's outstanding and ongoing legal liabilities;
(D)
COBRA and other legal obligations related to employees of the divided 
school district;
(E)
retirement funds for employees of the divided school district;
(F)
disposition of bonds the divided school district approved but did not issue 
before the creation of the new school district or reorganized new school district 
based primarily on the representation made to the voters at the time of the bond 
election as described in Section 
53G-3-307
;
(G)
vehicles as described in Subsection 
(6)(b)
;
(H)
funds in any related divided school district foundation;
(I)
funds of the divided school district; and
(J)
any other remaining assets or liability of the divided school district; and
(v)
an overview of the disposition of assets and liabilities upon which the directors 
could not agree.
(c)
Each director shall ensure that a local school assessment report includes the records 
for each school within the divided school district, including:
(i)
a list of each school containing the school's address and description;
(ii)
a list of employees who are currently assigned to each school within the divided 
school district, including employment description, compensation, and any 
promised employment incentives;
(iii)
a list of all employment or other agreements involving compensation, benefits, 
bonuses, or severance for each person assigned to each school within the divided 
school district;
(iv)
the grades, classes, and courses that each school provides, including specialty 
classes;
(v)
the estimated number of students in each class in each school; and
(vi)
any other item or record the director deems necessary.
(d)
On or before June 1 of the year following the creation date. the divided school 
district shall provide records associated with each report described in this section to 
the director for each new school district and reorganized new school district.
(9)
(a)
(i)
On July 1 of the second year following the local school board election date 
described in Subsection 
(2)(a)
, the new school district or the reorganized new 
school district that receives title to the physical asset of the divided school district 
main office that existed at the creation date shall become the successor district to 
the records of the divided school district, unless the local school boards of any 
relevant new school district and reorganized new school district agree to a chosen 
successor district.
(ii)
As described in Subsection 
63G-2-206(1)(a)
, the successor district shall serve as a 
repository of archives for purposes of historical preservation, administrative 
maintenance, or destruction of all the divided school district's books, accounts, 
and records.
(iii)
After the allocation date, each new school district or reorganized new school 
district within the divided school district may access the records of the divided 
school district through an interlocal agreement and without cost.
(b)
(i)
A director, a new school district, or a reorganized new school district that 
makes a request for records of the divided school district, except for records 
described in Subsection 
(8)
, shall make a written request to the superintendent of 
the divided school district.
(ii)
After receiving a request for a record under Subsection 
(9)(b)(i)
, the divided 
school district shall, as soon as reasonably possible but no later than 10 business 
days after receiving the request unless the parties mutually agree on a different 
date:
(A)
approve the request and provide a copy of the record in each format the 
divided school district possesses; or
(B)
if the divided school district or the divided school district's successor does not 
maintain the requested record, notify the requester of the lack of the record and 
provide, if known, the name and address of the governmental entity that 
maintains the record.
(c)
On or before May 15 of the year following the creation date, the divided school 
district and the directors for each new school district and reorganized new school 
district shall establish a joint policy relating to the production of private, controlled, 
and protected records.
(10)
(a)
Upon the creation date, a divided school district may not, except by mutual 
agreement of the local school boards or directors of the new school district and 
reorganized new school district:
(i)
destroy a school district record;
(ii)
enter into any employment agreement without including a statement providing 
that the contract does not bind any new school district or reorganized new school 
district;
(iii)
pay any severance or bonuses, issue a retirement package, or provide buy-out 
compensation to any employee unless under a written agreement or policy that 
was executed before the creation date; or
(iv)
increase compensation, other than a yearly cost-of-living adjustment for any 
school district employee.
(b)
Notwithstanding Subsection 
53G-4-402(24)
, upon the creation of a new school 
district or a reorganized new school district, a divided school district may not, except 
by mutual agreement of the directors or local school boards of the new school district 
and reorganized new school district:
(i)
close a school;
(ii)
change the boundaries of a school;
(iii)
create, change, relocate, or close a special enrollment program; or
(iv)
alter, terminate, or change a bus route.
(c)
Any agreement or policy contrary to this Subsection 
(10)
 is void, including 
retrospective operation to any agreement or policy that a divided school district 
created after November 4, 2024.
(11)
(a)
The local school boards of each new school district and reorganized new school 
district, with the assistance of the divided school district, shall:
(i)
jointly prepare a written transition plan for the divided school district;
(ii)
on or before August 15 in the year following the local school board election date 
described in Subsection (2)(a), adopt a transition plan; and
(iii)
within five days after the date of the adoption of the transition plan, submit a 
copy to:
(A)
the local school board of the divided school district; and
(B)
the Office of the Legislative Auditor General.
(b)
The divided school district shall:
(i)
cooperate with the local school board of each new school district and reorganized 
new school district in preparing the transition plan; and
(ii)
comply with the adopted transition plan.
(c)
The local school boards described in Subsection (11)(a) shall ensure that the 
transition plan:
(i)
includes required dates and methods regarding:
(A)
according to the approved allocation of assets, the transfer of title to and the 
preservation, sharing, and transfer of the divided school district's records, data, 
financial accounts, software, software licenses, passwords, codes, security 
measures, insurance, payroll services, discretionary assets, non-discretionary 
assets, associated property, physical property, bond indebtedness, and vehicles;
(B)
according to the approved allocation of liabilities, the liabilities and debts of 
the divided school district to the new school district or the reorganized new 
school district; and
(C)
employee protections, legally required notices, and the holding and 
disbursements of employee-related retirement funds;
(ii)
ensures that each new school district and reorganized new district has adequate 
insurance coverage to prevent a lapse of coverage for unresolved claims remaining 
at the allocation date; and
(iii)
includes a five to 10-year capital plan for each new school district and 
reorganized new school district.
(d)
If the local school boards of each new school district and reorganized new school 
district do not reach an agreement for a transition plan under this Subsection (11), 
each local school board shall:
(i)
present the board's plan to the Office of the Legislative Auditor General on or 
before July 15 in the year following the local school board election date described 
in Subsection (2)(a); and
(ii)
include a description of the issues on which the local school boards could not 
agree.
(12)
(a)
If a school district has not conducted a seismic safety evaluation in accordance 
with Section 
53G-4-608
 within 10 years before the creation date, on or before 
December 31 of the year following the creation date, the state auditor shall perform 
the seismic safety study and evaluation of each school district building within the 
divided school district:
(i)
with a construction date before the year 2000; and
(ii)
that the divided school district uses as a school.
(b)
The state auditor shall ensure that:
(i)
a licensed structural engineer familiar with seismic codes conducts the seismic 
safety evaluation described in Subsection 
(12)(a)
; and
(ii)
that the seismic safety evaluation provides an estimated cost for remediation or 
replacement of each school district building that the evaluation determines to have 
a seismic issue.
(c)
On or before December 31 of the year following the creation date, the state auditor 
shall perform a deferred maintenance study of the divided school district to determine:
(i)
a description and location of each deferred maintenance item within the divided 
school district; and
(ii)
the estimated cost to remediate each deferred maintenance item.
(d)
The state auditor shall deliver the studies described in this Subsection 
(12)
 to:
(i)
the local school board of each new school district and reorganized new school 
district;
(ii)
the Office of the Legislative Auditor General; and
(iii)
each director.
(13)
Unless otherwise specified in this section, the following bear all costs and expenses to 
create a new school district or a reorganized new school district and to comply with this 
section:
(a)
for costs that a new school district incurs, the new school district;
(b)
for costs that a reorganized new school district incurs, the reorganized new school 
district;
(c)
for costs that a divided school district incurs, the divided school district; and
(d)
for actual expenses a municipality or interlocal agreement participants incur to a 
third party after the creation date and before the appointment of the director under 
Subsection 
(3)
, the relevant school district associated with the municipality or the 
interlocal agreement participants.
(14)
The Office of the Legislative Auditor General shall resolve any disagreements 
regarding:
(a)
the disposition of assets and liabilities of the divided school district;
(b)
the transition plan described in Subsection 
(11)
; and
(c)
the obligations of any party under this section.
(15)
Upon the appointment of the director, the divided school district shall:
(a)
identify space, if any, in a building within each new school district and each 
reorganized school district within the divided school district that could serve as the 
office of the relevant new school district; and
(b)
provide the space described in Subsection 
(15)(a)
 to the new school district or 
reorganized new school district at no cost.
(16)
(a)
An actor commits interference with a director if the actor uses force, violence, 
intimidation, or engages in any other unlawful act with a purpose to interfere with the 
director's duties.
(b)
A violation of Subsection 
(16)(a)
 is a class B misdemeanor.
Section 13, Section 
53G-3-303
 is amended to read:
53G-3-303 (Effective upon governor's approval). New school district property 
tax -- Limitations.
(1)
A new school district, created under Section 
53G-3-301.1
, 
53G-3-301.3
, 
or 
53G-3-301.4
, 
53G-3-301.5
, or 
53G-3-301.6
 and a reorganized new school district may 
not impose a property tax before the fiscal year in which the new school district and 
reorganized new school district assume responsibility for providing student instruction.
(2)
(a)
If at the time a new school district created in accordance with Section 
53G-3-301.1
, 
53G-3-301.3
, 
or 
53G-3-301.4
,
53G-3-301.5
, or 
53G-3-301.6
 assumes responsibility 
for student instruction any portion of the territory within the new school district was 
subject to a levy 
pursuant to
under
 Section 
53F-8-301
, the new school district's 
local 
school 
board may:
(i)
discontinue the levy for the new school district;
(ii)
impose a levy on the new school district as provided in Section 
53F-8-301
; or
(iii)
impose the levy on the new school district, subject to Subsection 
(2)(b)
.
(b)
If the new school district's local school board applies a levy to the new school district 
in accordance with Subsection 
(2)(a)(iii)
, the levy may not exceed the maximum 
duration or rate authorized by the voters of the divided school district at the time of 
the vote to create the new school district
 or that resulted in the creation of the 
reorganized new school district
.
Section 14, Section 
53G-3-305
 is amended to read:
53G-3-305 (Effective upon governor's approval). Redistricting -- Local school 
board membership.
(1)
Upon the creation of a new school district or a reorganized new school district in 
accordance with Section 
53G-3-301.1
, 
53G-3-301.3
, 
or 
53G-3-301.4
, 
53G-3-301.5
, or 
53G-3-301.6
, 
the applicable legislative body shall redistrict the affected school districts 
in accordance with Section 
20A-14-201
.
(2)
Except as provided in Section 
53G-3-302
, local school board membership in the 
affected school districts 
shall be determined under
is subject to
Title 20A, Chapter 14, 
Part 2
, Election of Members of Local Boards of Education.
Section 15, Section 
53G-3-307
 is amended to read:
53G-3-307 (Effective upon governor's approval). Tax to pay for indebtedness of 
divided school district.
(1)
As used in 
Subsections (2) and (3)
this section
, "outstanding bonded indebtedness" 
means
, except for a lease revenue bond or a general obligation bond described in 
Subsection 
53G-3-302(6)
,
 debt owed for a general obligation bond or lease revenue 
bond 
issued by
that
 the divided school district
 issues
:
(a)
before the creation of the new school district; or
(b)
in accordance with a mutual agreement of the local school boards of the reorganized 
new school district and the new school district under Subsection 
(4)
.
(2)
If 
the creation date of 
a new school district 
is created
occurs
 on or after May 10, 2011, 
property within the new school district and the reorganized new school district is subject 
to the levy of a tax to pay the divided school district's outstanding bonded indebtedness 
as provided in Subsection 
(3)
.
(3)
(a)
Except as provided in Subsection 
(3)(b)
, the local school board of the new school 
district and the local school board of the reorganized new school district shall impose 
a tax levy at a rate that:
(i)
generates from the combined districts the amount of revenue required each year to 
meet the outstanding bonded indebtedness of the divided school district; and
(ii)
is based on the 
yearly 
adjusted assessed value of the new school district and 
reorganized new school district
 as the State Tax Commission determines
.
(b)
A local school board of a new school district may abate a property tax 
required to be 
imposed under
that
 Subsection 
(3)(a)
requires the board to impose 
to the extent the 
new school district has money available to pay to the reorganized new school district 
the amount of revenue that 
would be generated
the tax rate described in Subsection 
(3)(a)
 would generate
 within the new school district
 from the tax rate specified in 
Subsection (3)(a)
.
(4)
(a)
The local school boards of the new school district and the reorganized new school 
district shall determine
,
 by mutual agreement
,
 the disposition of bonds 
approved but 
not issued by 
the divided school district 
approved but did not issue 
before the 
creation of the new school district and reorganized new school district based 
primarily on the representation made to the voters at the time of the bond election.
(b)
Before 
the local school boards make 
a determination
 is made
 under Subsection 
(4)(a)
, a reorganized new school district may not issue 
the approved and unissued 
bonds 
approved but not issued before the creation of the new school district and 
reorganized new school district
described in Subsection 
(4)(a)
 if property in the new 
school district would be subject to the levy of a tax to pay the bonds.
Section 16, Section 
63G-2-203
 is amended to read:
63G-2-203 (Effective upon governor's approval). Fees.
(1)
(a)
Subject to Subsection 
(5)
, a governmental entity may charge a reasonable fee to 
cover the governmental entity's actual cost of providing a record. 
(b)
A fee under Subsection 
(1)(a)
 shall be approved by the governmental entity's 
executive officer.
(2)
(a)
When a governmental entity compiles a record in a form other than that normally 
maintained by the governmental entity, the actual costs under this section may 
include the following:
(i)
the cost of staff time for compiling, formatting, manipulating, packaging, 
summarizing, or tailoring the record either into an organization or media to meet 
the person's request;
(ii)
the cost of staff time for search, retrieval, and other direct administrative costs for 
complying with a request; and
(iii)
in the case of fees for a record that is the result of computer output other than 
word processing, the actual incremental cost of providing the electronic services 
and products together with a reasonable portion of the costs associated with 
formatting or interfacing the information for particular users, and the 
administrative costs as set forth in Subsections 
(2)(a)(i)
 and 
(ii)
.
(b)
An hourly charge under Subsection 
(2)(a)
 may not exceed the salary of the lowest 
paid employee who, in the discretion of the custodian of records, has the necessary 
skill and training to perform the request.
(3)
(a)
Fees shall be established as provided in this Subsection 
(3)
.
(b)
A governmental entity with fees established by the Legislature:
(i)
shall establish the fees defined in Subsection 
(2)
, or other actual costs associated 
with this section through the budget process; and
(ii)
may use the procedures of Section 
63J-1-504
 to set fees until the Legislature 
establishes fees through the budget process.
(c)
Political subdivisions shall establish fees by ordinance or written formal policy 
adopted by the governing body.
(d)
The judiciary shall establish fees by rules of the judicial council.
(e)
A governmental entity may not charge a fee for:
(i)
a request related to a feasibility study, as defined in Section 
53G-3-102
, regarding 
a school district; or
(ii)
a request regarding a school district described in Section 
53G-3-302
.
(4)
A governmental entity may fulfill a record request without charge and is encouraged to 
do so if it determines that:
(a)
releasing the record primarily benefits the public rather than a person;
(b)
the individual requesting the record is the subject of the record, or an individual 
specified in Subsection 
63G-2-202(1)
 or 
(2)
; or
(c)
the requester's legal rights are directly implicated by the information in the record, 
and the requester is impecunious.
(5)
(a)
As used in this Subsection 
(5)
, "media representative":
(i)
means a person who requests a record to obtain information for a story or report 
for publication or broadcast to the general public; and
(ii)
does not include a person who requests a record to obtain information for a blog, 
podcast, social media account, or other means of mass communication generally 
available to a member of the public.
(b)
A governmental entity may not charge a fee for:
(i)
reviewing a record to determine whether it is subject to disclosure, except as 
permitted by Subsection 
(2)(a)(ii)
;
(ii)
inspecting a record; or
(iii)
the first quarter hour of staff time spent in responding to a request under Section 
63G-2-204
.
(c)
Notwithstanding Subsection 
(5)(b)(iii)
, a governmental entity is not prevented from 
charging a fee for the first quarter hour of staff time spent in responding to a request 
under Section 
63G-2-204
 if the person who submits the request:
(i)
is not a Utah media representative; and
(ii)
previously submitted a separate request within the 10-day period immediately 
before the date of the request to which the governmental entity is responding.
(6)
(a)
A person who believes that there has been an unreasonable denial of a fee waiver 
under Subsection 
(4)
 may appeal the denial in the same manner as a person appeals 
when inspection of a public record is denied under Section 
63G-2-205
.
(b)
The adjudicative body hearing the appeal:
(i)
shall review the fee waiver de novo, but shall review and consider the 
governmental entity's denial of the fee waiver and any determination under 
Subsection 
(4)
; and
(ii)
has the same authority when a fee waiver or reduction is denied as it has when the 
inspection of a public record is denied.
(7)
(a)
All fees received under this section by a governmental entity subject to Subsection 
(3)(b)
 shall be retained by the governmental entity as a dedicated credit.
(b)
Those funds shall be used to recover the actual cost and expenses incurred by the 
governmental entity in providing the requested record or record series.
(8)
(a)
A governmental entity may require payment of past fees and future estimated fees 
before beginning to process a request if:
(i)
fees are expected to exceed $50; or
(ii)
after the government entity has sent an invoice, 
the requester has not paid fees 
from 
a 
previous 
requests
request
.
(b)
Any prepaid amount in excess of fees due shall be returned to the requester.
(9)
This section does not alter, repeal, or reduce fees established by other statutes or 
legislative acts.
(10)
(a)
Notwithstanding Subsection 
(3)(c)
, fees for voter registration records shall be set 
as provided in this Subsection 
(10)
.
(b)
The lieutenant governor shall:
(i)
after consultation with county clerks, establish uniform fees for voter registration 
and voter history records that meet the requirements of this section; and
(ii)
obtain legislative approval of those fees by following the procedures and 
requirements of Section 
63J-1-504
.
Section 17, Section 
67-3-1
 is amended to read:
67-3-1 (Effective upon governor's approval). Functions and duties.
(1)
(a)
The state auditor is the auditor of public accounts and is independent of any 
executive or administrative officers of the state.
(b)
The state auditor is not limited in the selection of personnel or in the determination 
of the reasonable and necessary expenses of the state auditor's office.
(2)
The state auditor shall examine and certify annually in respect to each fiscal year, 
financial statements showing:
(a)
the condition of the state's finances;
(b)
the revenues received or accrued;
(c)
expenditures paid or accrued;
(d)
the amount of unexpended or unencumbered balances of the appropriations to the 
agencies, departments, divisions, commissions, and institutions; and
(e)
the cash balances of the funds in the custody of the state treasurer.
(3)
(a)
The state auditor shall:
(i)
audit each permanent fund, each special fund, the General Fund, and the accounts 
of any department of state government or any independent agency or public 
corporation as the law requires, as the auditor determines is necessary, or upon 
request of the governor or the Legislature;
(ii)
perform the audits in accordance with generally accepted auditing standards and 
other auditing procedures as promulgated by recognized authoritative bodies; and
(iii)
as the auditor determines is necessary, conduct the audits to determine:
(A)
honesty and integrity in fiscal affairs;
(B)
accuracy and reliability of financial statements;
(C)
effectiveness and adequacy of financial controls; and
(D)
compliance with the law.
(b)
If any state entity receives federal funding, the state auditor shall ensure that the 
audit is performed in accordance with federal audit requirements.
(c)
(i)
The costs of the federal compliance portion of the audit may be paid from an 
appropriation to the state auditor from the General Fund.
(ii)
If an appropriation is not provided, or if the federal government does not 
specifically provide for payment of audit costs, the costs of the federal compliance 
portions of the audit shall be allocated on the basis of the percentage that each 
state entity's federal funding bears to the total federal funds received by the state.
(iii)
The allocation shall be adjusted to reflect any reduced audit time required to 
audit funds passed through the state to local governments and to reflect any 
reduction in audit time obtained through the use of internal auditors working 
under the direction of the state auditor.
(4)
(a)
Except as provided in Subsection (4)(b), the state auditor shall, in addition to 
financial audits, and as the auditor determines is necessary, conduct performance and 
special purpose audits, examinations, and reviews of any entity that receives public 
funds, including a determination of any or all of the following:
(i)
the honesty and integrity of all the entity's fiscal affairs;
(ii)
whether the entity's administrators have faithfully complied with legislative intent;
(iii)
whether the entity's operations have been conducted in an efficient, effective, and 
cost-efficient manner;
(iv)
whether the entity's programs have been effective in accomplishing the intended 
objectives; and
(v)
whether the entity's management, control, and information systems are adequate, 
effective, and secure.
(b)
The auditor may not conduct performance and special purpose audits, examinations, 
and reviews of any entity that receives public funds if the entity:
(i)
has an elected auditor; and
(ii)
has, within the entity's last budget year, had the entity's financial statements or 
performance formally reviewed by another outside auditor.
(5)
The state auditor:
(a)
shall administer any oath or affirmation necessary to the performance of the duties of 
the auditor's office; and
(b)
may:
(i)
subpoena witnesses and documents, whether electronic or otherwise; and
(ii)
examine into any matter that the auditor considers necessary.
(6)
The state auditor may require all persons who have had the disposition or management 
of any property of this state or its political subdivisions to submit statements regarding 
the property at the time and in the form that the auditor requires.
(7)
The state auditor shall:
(a)
except where otherwise provided by law, institute suits in Salt Lake County in 
relation to the assessment, collection, and payment of revenues against:
(i)
persons who by any means have become entrusted with public money or property 
and have failed to pay over or deliver the money or property; and
(ii)
all debtors of the state;
(b)
collect and pay into the state treasury all fees received by the state auditor;
(c)
perform the duties of a member of all boards of which the state auditor is a member 
by the constitution or laws of the state, and any other duties that are prescribed by the 
constitution and by law;
(d)
stop the payment of the salary of any state official or state employee who:
(i)
refuses to settle accounts or provide required statements about the custody and 
disposition of public funds or other state property;
(ii)
refuses, neglects, or ignores the instruction of the state auditor or any controlling 
board or department head with respect to the manner of keeping prescribed 
accounts or funds; or
(iii)
fails to correct any delinquencies, improper procedures, and errors brought to the 
official's or employee's attention;
(e)
establish accounting systems, methods, and forms for public accounts in all taxing or 
fee-assessing units of the state in the interest of uniformity, efficiency, and economy;
(f)
superintend the contractual auditing of all state accounts;
(g)
subject to Subsection (8)(a), withhold state allocated funds or the disbursement of 
property taxes from a state or local taxing or fee-assessing unit, if necessary, to 
ensure that officials and employees in those taxing units comply with state laws and 
procedures in the budgeting, expenditures, and financial reporting of public funds;
(h)
subject to Subsection (9), withhold the disbursement of tax money from any county, 
if necessary, to ensure that officials and employees in the county comply with 
Section 
59-2-303.1
; and
(i)
withhold state allocated funds or the disbursement of property taxes from a local 
government entity or a limited purpose entity, as those terms are defined in Section 
67-1a-15
 if the state auditor finds the withholding necessary to ensure that the entity 
registers and maintains the entity's registration with the lieutenant governor, in 
accordance with Section 
67-1a-15
.
(8)
(a)
Except as otherwise provided by law, the state auditor may not withhold funds 
under Subsection (7)(g) until a state or local taxing or fee-assessing unit has received 
formal written notice of noncompliance from the auditor and has been given 60 days 
to make the specified corrections.
(b)
If, after receiving notice under Subsection (8)(a), a state or independent local 
fee-assessing unit that exclusively assesses fees has not made corrections to comply 
with state laws and procedures in the budgeting, expenditures, and financial reporting 
of public funds, the state auditor:
(i)
shall provide a recommended timeline for corrective actions;
(ii)
may prohibit the state or local fee-assessing unit from accessing money held by 
the state; and
(iii)
may prohibit a state or local fee-assessing unit from accessing money held in an 
account of a financial institution by filing an action in a court with jurisdiction 
under Title 78A, Judiciary and Judicial Administration, requesting an order of the 
court to prohibit a financial institution from providing the fee-assessing unit 
access to an account.
(c)
The state auditor shall remove a limitation on accessing funds under Subsection 
(8)(b) upon compliance with state laws and procedures in the budgeting, 
expenditures, and financial reporting of public funds.
(d)
If a local taxing or fee-assessing unit has not adopted a budget in compliance with 
state law, the state auditor:
(i)
shall provide notice to the taxing or fee-assessing unit of the unit's failure to 
comply;
(ii)
may prohibit the taxing or fee-assessing unit from accessing money held by the 
state; and
(iii)
may prohibit a taxing or fee-assessing unit from accessing money held in an 
account of a financial institution by:
(A)
contacting the taxing or fee-assessing unit's financial institution and 
requesting that the institution prohibit access to the account; or
(B)
filing an action in a court with jurisdiction under Title 78A, Judiciary and 
Judicial Administration, requesting an order of the court to prohibit a financial 
institution from providing the taxing or fee-assessing unit access to an account.
(e)
If the local taxing or fee-assessing unit adopts a budget in compliance with state law, 
the state auditor shall eliminate a limitation on accessing funds described in 
Subsection (8)(d).
(9)
The state auditor may not withhold funds under Subsection (7)(h) until a county has 
received formal written notice of noncompliance from the auditor and has been given 60 
days to make the specified corrections.
(10)
(a)
The state auditor may not withhold funds under Subsection (7)(i) until the state 
auditor receives a notice of non-registration, as that term is defined in Section 
67-1a-15
.
(b)
If the state auditor receives a notice of non-registration, the state auditor may 
prohibit the local government entity or limited purpose entity, as those terms are 
defined in Section 
67-1a-15
, from accessing:
(i)
money held by the state; and
(ii)
money held in an account of a financial institution by:
(A)
contacting the entity's financial institution and requesting that the institution 
prohibit access to the account; or
(B)
filing an action in a court with jurisdiction under Title 78A, Judiciary and 
Judicial Administration, requesting an order of the court to prohibit a financial 
institution from providing the entity access to an account.
(c)
The state auditor shall remove the prohibition on accessing funds described in 
Subsection (10)(b) if the state auditor received a notice of registration, as that term is 
defined in Section 
67-1a-15
, from the lieutenant governor.
(11)
Notwithstanding Subsection (7)(g), (7)(h), (7)(i), (8)(b), (8)(d), or (10)(b), the state 
auditor:
(a)
shall authorize a disbursement by a local government entity or limited purpose entity, 
as those terms are defined in Section 
67-1a-15
, or a state or local taxing or 
fee-assessing unit if the disbursement is necessary to:
(i)
avoid a major disruption in the operations of the local government entity, limited 
purpose entity, or state or local taxing or fee-assessing unit; or
(ii)
meet debt service obligations; and
(b)
may authorize a disbursement by a local government entity, limited purpose entity, 
or state or local taxing or fee-assessing unit as the state auditor determines is 
appropriate.
(12)
(a)
The state auditor may seek relief under the Utah Rules of Civil Procedure to take 
temporary custody of public funds if an action is necessary to protect public funds 
from being improperly diverted from their intended public purpose.
(b)
If the state auditor seeks relief under Subsection (12)(a):
(i)
the state auditor is not required to exhaust the procedures in Subsection (7) or (8); 
and
(ii)
the state treasurer may hold the public funds in accordance with Section 
67-4-1
 if 
a court orders the public funds to be protected from improper diversion from their 
public purpose.
(13)
The state auditor shall:
(a)
establish audit guidelines and procedures for audits of local mental health and 
substance abuse authorities and their contract providers, conducted pursuant to Title 
17, Chapter 43, Part 2, Local Substance Abuse Authorities, Title 17, Chapter 43, Part 
3, Local Mental Health Authorities, Title 26B, Chapter 5, Health Care - Substance 
Use and Mental Health, and Title 51, Chapter 2a, Accounting Reports from Political 
Subdivisions, Interlocal Organizations, and Other Local Entities Act; and
(b)
ensure that those guidelines and procedures provide assurances to the state that:
(i)
state and federal funds appropriated to local mental health authorities are used for 
mental health purposes;
(ii)
a private provider under an annual or otherwise ongoing contract to provide 
comprehensive mental health programs or services for a local mental health 
authority is in compliance with state and local contract requirements and state and 
federal law;
(iii)
state and federal funds appropriated to local substance abuse authorities are used 
for substance abuse programs and services; and
(iv)
a private provider under an annual or otherwise ongoing contract to provide 
comprehensive substance abuse programs or services for a local substance abuse 
authority is in compliance with state and local contract requirements, and state and 
federal law.
(14)
(a)
The state auditor may, in accordance with the auditor's responsibilities for 
political subdivisions of the state as provided in Title 51, Chapter 2a, Accounting 
Reports from Political Subdivisions, Interlocal Organizations, and Other Local 
Entities Act, initiate audits or investigations of any political subdivision that are 
necessary to determine honesty and integrity in fiscal affairs, accuracy and reliability 
of financial statements, effectiveness, and adequacy of financial controls and 
compliance with the law.
(b)
If the state auditor receives notice under Subsection 
11-41-104
(7) from the 
Governor's Office of Economic Opportunity on or after July 1, 2024, the state auditor 
may initiate an audit or investigation of the public entity subject to the notice to 
determine compliance with Section 
11-41-103
.
(15)
(a)
The state auditor may not audit work that the state auditor performed before 
becoming state auditor.
(b)
If the state auditor has previously been a responsible official in state government 
whose work has not yet been audited, the Legislature shall:
(i)
designate how that work shall be audited; and
(ii)
provide additional funding for those audits, if necessary.
(16)
The state auditor shall:
(a)
with the assistance, advice, and recommendations of an advisory committee 
appointed by the state auditor from among special district boards of trustees, officers, 
and employees and special service district boards, officers, and employees:
(i)
prepare a Uniform Accounting Manual for Special Districts that:
(A)
prescribes a uniform system of accounting and uniform budgeting and 
reporting procedures for special districts under Title 17B, Limited Purpose 
Local Government Entities - Special Districts, and special service districts 
under Title 17D, Chapter 1, Special Service District Act;
(B)
conforms with generally accepted accounting principles; and
(C)
prescribes reasonable exceptions and modifications for smaller districts to the 
uniform system of accounting, budgeting, and reporting;
(ii)
maintain the manual under this Subsection (16)(a) so that the manual continues to 
reflect generally accepted accounting principles;
(iii)
conduct a continuing review and modification of procedures in order to improve 
them;
(iv)
prepare and supply each district with suitable budget and reporting forms; and
(v)
(A)
prepare instructional materials, conduct training programs, and render other 
services considered necessary to assist special districts and special service 
districts in implementing the uniform accounting, budgeting, and reporting 
procedures; and
(B)
ensure that any training described in Subsection (16)(a)(v)(A) complies with 
Title 63G, Chapter 22, State Training and Certification Requirements; and
(b)
continually analyze and evaluate the accounting, budgeting, and reporting practices 
and experiences of specific special districts and special service districts selected by 
the state auditor and make the information available to all districts.
(17)
(a)
The following records in the custody or control of the state auditor are protected 
records under Title 63G, Chapter 2, Government Records Access and Management 
Act:
(i)
records that would disclose information relating to allegations of personal 
misconduct, gross mismanagement, or illegal activity of a past or present 
governmental employee if the information or allegation cannot be corroborated by 
the state auditor through other documents or evidence, and the records relating to 
the allegation are not relied upon by the state auditor in preparing a final audit 
report;
(ii)
records and audit workpapers to the extent the workpapers would disclose the 
identity of an individual who during the course of an audit, communicated the 
existence of any waste of public funds, property, or manpower, or a violation or 
suspected violation of a law, rule, or regulation adopted under the laws of this 
state, a political subdivision of the state, or any recognized entity of the United 
States, if the information was disclosed on the condition that the identity of the 
individual be protected;
(iii)
before an audit is completed and the final audit report is released, records or 
drafts circulated to an individual who is not an employee or head of a 
governmental entity for the individual's response or information;
(iv)
records that would disclose an outline or part of any audit survey plans or audit 
program; and
(v)
requests for audits, if disclosure would risk circumvention of an audit.
(b)
The provisions of Subsections (17)(a)(i), (ii), and (iii) do not prohibit the disclosure 
of records or information that relate to a violation of the law by a governmental entity 
or employee to a government prosecutor or peace officer.
(c)
The provisions of this Subsection (17) do not limit the authority otherwise given to 
the state auditor to classify a document as public, private, controlled, or protected 
under Title 63G, Chapter 2, Government Records Access and Management Act.
(d)
(i)
As used in this Subsection (17)(d), "record dispute" means a dispute between 
the state auditor and the subject of an audit performed by the state auditor as to 
whether the state auditor may release a record, as defined in Section 
63G-2-103
, 
to the public that the state auditor gained access to in the course of the state 
auditor's audit but which the subject of the audit claims is not subject to disclosure 
under Title 63G, Chapter 2, Government Records Access and Management Act.
(ii)
The state auditor may submit a record dispute to the State Records Committee, 
created in Section 
63G-2-501
, for a determination of whether the state auditor 
may, in conjunction with the state auditor's release of an audit report, release to 
the public the record that is the subject of the record dispute.
(iii)
The state auditor or the subject of the audit may seek judicial review of a State 
Records Committee determination under Subsection (17)(d)(ii), as provided in 
Section 
63G-2-404
.
(18)
If the state auditor conducts an audit of an entity that the state auditor has previously 
audited and finds that the entity has not implemented a recommendation made by the 
state auditor in a previous audit, the state auditor shall notify the Legislative 
Management Committee through the Legislative Management Committee's audit 
subcommittee that the entity has not implemented that recommendation.
(19)
The state auditor shall, with the advice and consent of the Senate, appoint the state 
privacy officer described in Section 
67-3-13
.
(20)
Except as provided in Subsection (21), the state auditor shall report, or ensure that 
another government entity reports, on the financial, operational, and performance 
metrics for the state system of higher education and the state system of public education, 
including metrics in relation to students, programs, and schools within those systems.
(21)
(a)
Notwithstanding Subsection (20), the state auditor shall conduct regular audits of:
(i)
the scholarship granting organization for the Carson Smith Opportunity 
Scholarship Program, created in Section 
53E-7-402
;
(ii)
the State Board of Education for the Carson Smith Scholarship Program, created 
in Section 
53F-4-302
; and
(iii)
the scholarship program manager for the Utah Fits All Scholarship Program, 
created in Section 
53F-6-402
, including an analysis of the cost effectiveness of the 
program, taking into consideration the amount of the scholarship and the amount 
of state and local funds dedicated on a per-student basis within the traditional 
public education system.
(b)
Nothing in this subsection limits or impairs the authority of the State Board of 
Education to administer the programs described in Subsection (21)(a).
(22)
The state auditor shall, based on the information posted by the Office of Legislative 
Research and General Counsel under Subsection 
36-12-12.1
(2), for each policy, track 
and post the following information on the state auditor's website:
(a)
the information posted under Subsections 
36-12-12.1
(2)(a) through (e);
(b)
an indication regarding whether the policy is timely adopted, adopted late, or not 
adopted;
(c)
an indication regarding whether the policy complies with the requirements 
established by law for the policy; and
(d)
a link to the policy.
(23)
(a)
A legislator may request that the state auditor conduct an inquiry to determine 
whether a government entity, government official, or government employee has 
complied with a legal obligation directly imposed, by statute, on the government 
entity, government official, or government employee.
(b)
The state auditor may, upon receiving a request under Subsection (23)(a), conduct 
the inquiry requested.
(c)
If the state auditor conducts the inquiry described in Subsection (23)(b), the state 
auditor shall post the results of the inquiry on the state auditor's website.
(d)
The state auditor may limit the inquiry described in this Subsection (23) to a simple 
determination, without conducting an audit, regarding whether the obligation was 
fulfilled.
(24)
The state auditor shall:
(a)
ensure compliance with Title 63G, Chapter 31, Distinctions on the Basis of Sex, in 
accordance with Section 
63G-31-401
; and
(b)
report to the Legislative Management Committee, upon request, regarding the state 
auditor's actions under this Subsection (24).
(25)
The state auditor shall report compliance with Sections 
67-27-107
, 
67-27-108
, and 
67-27-109
 by:
(a)
establishing a process to receive and audit each alleged violation; and
(b)
reporting to the Legislative Management Committee, upon request, regarding the 
state auditor's findings and recommendations under this Subsection (25).
(26)
The state auditor shall employ and oversee a director for the commencement of a new 
school district or reorganized new school district in accordance with Section 
53G-3-302
.
Section 18. 
Effective Date.
(1)
Except as provided in Subsection 
(2)
, this bill takes effect on May 7, 2025; or
(2)
if approved by two-thirds of all members elected to each house:
(a)
upon approval by the governor;
(b)
without the governor's signature, the day following the constitutional time limit of 
Utah Constitution, Article VII, Section 8; or
(c)
in the case of a veto, the date of veto override.
Section 19. 
Retrospective operation.
Section 53G-3-302 has retrospective operation to November 4, 2024.
1-28-25 2:04 PM