Struck = removed from the bill ยท
added = the amendment's new text.
FirstSB183_H_ED.001 RegularNOT SessionAMENDED Seventy-secondHOUSE GeneralCOMMITTEE Assembly STATE OF COLORADOREFERENCE REENGROSSEDREPORT This_______________________________ VersionApril Includes2, All2019 AmendmentsChair Adoptedof inCommittee theDate HouseCommittee ofon IntroductionEducation LLS. NO.
19-0235.01After Julieconsideration Pelegrinon x2700the SENATEmerits, BILLthe 19-183Committee SENATErecommends SPONSORSHIPthe Priolafollowing: and Todd, Bridges, Crowder, Moreno, Tate HOUSE SPONSORSHIP Michaelson Jenet and Wilson, Senate Committees House Committees Education A BILL FOR AN ACT C ONCERNING CREATION OF A VOLUNTARY ALTERNATE PROCESS FOR DISSOLUTION AND ANNEXATION OF THE TERRITORY OF A SCHOOL DISTRICT UNDER SPECIFIED CIRCUMSTANCES .
BillSB19-183 Summarybe dreferred (Note:to the Committee of the Whole with favorable recommendation.
This** summary*** applies** to*** this** bill*SB183_H_ED.001* as introduced and does d e 1 notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill E a 2 passes third reading in the house of introduction, a bill summary that T U 0 N g 2 applies to the reengrossed version of this bill will be available at S d r http://leg.colorado.gov.) e a d M The bill creates an alternate process for the dissolution and annexation of a school district.
Pursuant to the bill, if a school district meets specified criteria, the board of education of the school district d (local school board) may seek dissolution and annexation of the school d e 1 district by convening an organization planning committee (committee) E a 2 A U 9 N n 1 Shading denotes HOUSE amendment.
Double underlining denotes SENATE amendment.
S a r Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute.
d M that consists of representation from the local school board of the dissolving school district and the local school boards of the contiguous school districts.
The local school board of the dissolving school district must notify the commissioner of education (commissioner) when a committee is formed.
The committee must create a proposed plan of organization (plan) that dissolves the convening school district and annexestheterritoryofthedissolvedschooldistricttooneormoreof the contiguous school districts.
The bill specifies the issues that the committee must consider in creating the plan.
After adopting the proposed plan, the committee must submit the proposed plan to the commissioner and the local school boards of the affected school districts and provide notice of public hearings on the proposed plan.
After holding public hearings, the committee must work with the commissioner to develop and adopt a final plan of organization.
Within a set time after the final plan is adopted, the local school board of each affected school district must adopt the final plan by written resolution.
If a local school board does not adopt the plan and there are only 2 affected school districts, or if the plan is not approved by at least 2oftheaffectedschooldistricts,thecommitteeisdissolved.Iffewerthan all but at least 2 of the affected school districts approve the plan, the committee may continue and prepare a new plan that involves only the school districts of the local school boards that approved the final approved plan.
Followingapprovalofafinalplanbythelocalschoolboardsofall of the affected school districts, the county clerk and recorder for each affected county must file a map and legal description of the annexing school districts with the commissioner.
The final plan takes effect on the date specified in the plan, and the final plan must be available for public review upon request.
If the dissolved district has a certain level of indebtednessthatisnotbondedindebtedness,anannexingschooldistrict, after the effective date of the annexation and subject to voter approval, maylevya temporarytax of a specified amount on the annexed property to retire the indebtedness.
The bill clarifies that, if the dissolving school district has bonded indebtednessexistingasofthedateofthedissolutionandannexationand the annexing school district or school districts do not vote to assume the amount of the bonded indebtedness, the bonded indebtedness continues tobepaidbytheexistinglevyagainstthepropertyofthedissolvedschool district, collected by the annexing school district or school districts.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1.
In Colorado Revised Statutes, 22-30-103, amend -2- 183 the introductory portion and (6);
and add (13.5) as follows:
22-30-103.
Definitions.AsusedinthisarticleICLE30,unless the context otherwise requires:
(6) "Dissolution and annexation" means the discontinuance of a schooldistrictandannexationofitsterritorytoanotheristingschool districtR SCHOOL DISTRICT.
(13.5) "SCHOOL DISTRICT BOARD OF EDUCATION " OR "LOCAL SCHOOLBOARD "MEANSTHEELECTEDBOARDOFEDUCATIONOFASCHOOL DISTRICT.
SECTION 2.
In Colorado Revised Statutes, add 22-30-129 as follows:
22-30-129.
Dissolution and annexation - exemptions from the schooldistrictorganizationplanningprocess.(1) NWITHSTANDING ANY PROVISION OF THIS ARTICLE 30 TO THE CONTRARY ,A SCHOOL DISTRICT BOARD OF EDUCATION AND ONE OR MORE OF THE CONTIGUOUS SCHOOLDISTRICTS'BOARDSOFEDUCATIONMAYFOLLOWTHEPROCEDURES ANDREQUIREMENTSSPECIFIEDINTHISSECTIONFORTHEDISSOLUTIONAND ANNEXATIONOFTHETERRITORYOFTHESCHOOLDISTRICTIFATLEASTONE OF THE FOLLOWING CONDITIONS EXIS:
(a) TE STATE BOARD,PURSUANTTOTHE PROVISIONSOFSECTION 22-11-209,DECLARES THE SCHOOL DISTRICT IS NO LONGER ACCREDITED OR DIRECTS THE SCHOOL DISTRICT TO REORGANI;E (b) TESCHOOLDISTRICTDOESNOTPROVIDEWITHINTHESCHOOLS OFTHESCHOOLDISTRICTAFULLTWELVE -GRADEEDUCATIONALPROGRAM ;
OR (c) TESCHOOLDISTRICTENROLLSFEWERTHANFIFTYSTUDENTS .
(2) THE LOCAL SCHOOL BOARD OF THE SCHOOL DISTRICT TO BE -3- 183 DISSOLVED AND ANNEXED SHALL FORM AN ORGANIZATION PLANNING COMMITTEE CONSISTING OF REPRESENTATION FROM THE LOCAL SCHOOL BOARD OF THE DISSOLVING SCHOOL DISTRICT AND THE LOCAL SCHOOL BOARDS OF EACH SCHOOL DISTRICT THAT IS CONTIGUOUS TO THE DISSOLVING SCHOOL DISTRICT.
THE LOCAL SCHOOL BOARD OF THE DISSOLVING SCHOOL DISTRICT SHALL NOTIFY THE COMMISSIONER WHEN ANORGANIZATIONPLANNINGCOMMITTEEISCREATEDPURSUANTTOTHIS SECTION.
WITHIN SIXTY DAYS AFTER CONVENING, THE ORGANIZATION PLANNINGCOMMITTEESHALLADOPTAPROPOSEDPLANOFORGANIZATION THAT DISSOLVESTHE SCHOOLDISTRICT AND ANNEXESTHE TERRITORYOF THE SCHOOL DISTRICT TO ONE OR MORE OF THE CONTIGUOUS SCHOOL DISTRICTS.
(3) A PLAN OF ORGANIZATION ADOPTED PURSUANT TO THIS SECTION MUST AT A MINIMUM ADDRESS THE FOLLOWING ISSUE:
(a) THE EDUCATIONAL NEEDS OF STUDENTS IN THE AFFECTED SCHOOL DISTRICTS, INCLUDING THE CONVENIENCE AND WELFARE OF STUDENTS ;
(b) TEPROVISIONOFDIVERSEEDUCATIONALOPPORTUNITIESFOR STUDENTS ;
(c) FACILITY US;
(d) ESTABLISHMENT OF BOUNDARIES BY LEGAL DESCRIPTION FOR THE SCHOOL DISTRICTS THAT ANNEX PORTIONS OF THE DISSOLVING SCHOOL DISTRICT PURSUANT TO THE PLAN OF ORGANIZATIO;
(e) E QUITABLE DISTRIBUTION OF THE PROPERTIES AND CASH ASSETS OF THE DISSOLVING SCHOOL DISTRICT TO THE ANNEXING SCHOOL DISTRICTS.
N CONSIDERING AN EQUITABLE DISTRIBUTION OF THE PROPERTIESANDCASHASSETSOFTHEDISSOLVINGSCHOOLDISTRICT ,THE -4- 183 COMMITTEE SHALL CONSIDER :
(I) THEOUTSTANDINGGENERALLIABILITIESANDOBLIGATIONSOF THE ANNEXING SCHOOL DISTRICTS ;
(II) THE NUMBER OF STUDENTS ATTENDING PUBLIC SCHOOL IN EACH ANNEXING SCHOOL DISTRICT BEFORE AND AFTER THE DISSOLUTION AND ANNEXATION ;
(III) TE VALUATION FOR ASSESSMENT OFTAXABLE PROPERTY IN EACH AFFECTED SCHOOL DISTRICT ;
(IV) T HE AMOUNT OF OUTSTANDING BONDED INDEBTEDNESS OF EACH AFFECTED SCHOOL DISTRICT ;
(V) THEPURPOSEFORWHICHTHEBONDEDINDEBTEDNESSINEACH AFFECTED SCHOOL DISTRICT WAS INCURRED ;AND (VI) T HE VALUE , LOCATION ,AND DISPOSITION OF ALL REAL PROPERTIES LOCATED IN THE DISSOLVING SCHOOL DISTRIC.
(f) T HE PLAN OF REPRESENTATION FOR THE MEMBERS OF THE LOCAL SCHOOL BOARDS OF THE ANNEXING SCHOOL DISTRICTS ;AND (g) IF THE DISSOLVING SCHOOL DISTRICT HAS BONDED INDEBTEDNESS OBLIGATIONS OR LIABILITIES , DESIGNATION OF EACH ANNEXING SCHOOL DISTRICT AS A SUCCESSOR FOR THE PURPOSE OF ADMINISTERING PAYMENT OF THE BONDED INDEBTEDNESS OBLIGATIONS OF THE DISSOLVED SCHOOL DISTRICT .
THE LOCAL BOARD OF EACH DESIGNATED SCHOOL DISTRICT HAS THE SAME POWERS ,RIGHTS, DUTIES, AND RESPONSIBILITIES OF THE BOARD OF EDUCATION OF THE DISSOLVING SCHOOLDISTRICTFORADMINISTERINGPAYMENTOFTHEPORTIONSOFTHE OUTSTANDING BONDED INDEBTEDNESS OBLIGATIONS AND LIABILITIES OF THE DISSOLVING SCHOOL DISTRICT THAT PERTAIN TO THE PROPERTY ANNEXED BY THE DESIGNATED SCHOOL DISTRICT .
THE LOCAL BOARD OF -5- 183 EACHDESIGNATEDSCHOOLDISTRICTSHALLHOLDINTRUSTALLREVENUE THAT ACCRUES FROM THE TAX LEVIES TO SATISFY THE OBLIGATIONS AND LIABILITIEANDALLINTERESTTHATMAYACCRUE TOTHE REVENUE ASA RESULTOFINVESTMENTSAUTHORIZEDBYLAW ,FORTHESOLEPURPOSEOF SATISFYINGTHEBONDEDINDEBTEDNESSOBLIGATIONSANDLIABILITIESOF THE DISSOLVING SCHOOL DISTRIC.
(4) AFTERTHEORGANIZATIONPLANNINGCOMMITTEEADOPTSTHE PROPOSED PLAN OF ORGANIZATION AS PROVIDED IN SUBSECTION(2)OF THIS SECTIO,THE COMMITTEE SHALL COMPLY WITH THE REQUIREMENTS OF SECTION 22-30-115CONCERNING FILING A COPY OF THE PROPOSED PLANOFORGANIZATIONWITHTHECOMMISSIONERANDTHELOCALSCHOOL BOARDSOFTHEAFFECTEDSCHOOLDISTRICTSANDGIVINGNOTICEOFAND HOLDING PUBLIC HEARINGS ON THE PROPOSED PLAN.
FTER THE PUBLIC HEARINGS ,THE ORGANIZATION PLANNING COMMITTEE SHALL COMPLY WITH THE REQUIREMENTS SPECIFIED IN SECTION22-30-116, AND THE COMMITTEEANDTHECOMMISSIONERSHALLWORKTOGETHERTODEVELOP AFINALPLANOFORGANIZATIONTHATISMUTUALLYACCEPTABLETOBOTH PARTIES AS PROVIDED IN SECTION 22-30-116.
THE ORGANIZATION PLANNING COMMITTEE AND THE COMMISSIONER SHALL FINALLY ADOPT THE PLAN OFORGANIZATION WITHIN SIXTY DAYS AFTER THE LAST PUBLIC HEARINGHELDPURSUANTTOTHISSUBSECTION (4ANDSHALLDESIGNATE THE PLAN AS THE FINAL PLAN OF ORGANIZATI.N (5) WITHINSIXTYDAYSAFTERTHEFINALPLANOFORGANIZATION IS DESIGNATED,THE LOCAL SCHOOL BOARDS OF THE AFFECTED SCHOOL DISTRICTS MUST EACH ADOPT THE DESIGNATED FINAL PLAN OF ORGANIZATION BY WRITTEN RESOLUTION .
F A LOCAL SCHOOL BOARD DOES NOT ADOPT THE FINAL PLAN OF ORGANIZATIO:
-6- 183 (a) THE PLANNING COMMITTEE IS DISSOLVE,IF THE FINAL PLAN OF ORGANIZATION INVOLVES ONLY TWO EXISTING SCHOOL DISTRICTS OR IS NOT APPROVED BY THE LOCAL SCHOOL BOARDS OF AT LEAST TWO OF THE AFFECTED SCHOOL DISTRICTS;OR (b) THEPLANNINGCOMMITTEEMAYCONTINUEANDPREPAREAND SUBMITTOTHECOMMISSIONERANEWPROPOSEDPLANOFORGANIZATION INVOLVING ONLY THOSE SCHOOL DISTRICTS THAT APPROVE THE FINAL PLAN OF ORGANIZATION IF THE FINAL PLAN OF ORGANIZATION INVOLVES THREE OR MORE EXISTING SCHOOL DISTRICTS AND IS APPROVED BY THE LOCAL SCHOOL BOARDS OF AT LEAST TWO OF THE AFFECTED SCHOOL DISTRICTS.
(6) FOLLOWING APPROVAL OF THE FINAL PLAN OF ORGANIZATION BY THE ALL OF THE LOCAL SCHOOL BOARDS OF THE AFFECTED SCHOOL DISTRICTS,THECOUNTYCLERKANDRECORDERINEACHCOUNTYINWHICH AN AFFECTED SCHOOL DISTRICT IS LOCATED SHALL SUBMIT TO THE COMMISSIONERAMAPANDLEGALDESCRIPTIONOFTHEANNEXINGSCHOOL DISTRICTS.
THE LOCAL SCHOOL BOARDS OF THE ANNEXING SCHOOL DISTRICTS SHALL MAKE THE FINAL PLAN OF ORGANIZATION AVAILABLE FOR INSPECTION BY MEMBERS OF THE PUBLIC UPON REQUES.
(7) THE DISSOLUTION AND ANNEXATIONOFA SCHOOLDISTRICT IS EFFECTIVE FOR ALL PURPOSES ON THE DATE SPECIFIED IN THE FINAL PLAN OF ORGANIZATION ;
EXCEPT THAT , FOR PURPOSES OF DETERMINING FUNDING PURSUANT TO THE "PUBLICS CHOOL FINANCE A CT OF1994", ARTICLE 54OFTHIS TITLE22,A FINALPLAN OFORGANIZATION APPROVED BY THE AFFECTED LOCAL SCHOOL BOARDS PURSUANT TO THIS SECTION TAKES EFFECT ON THE NEXTJULY 1FOLLOWING SUBMISSION OF THE MAP AND LEGAL DESCRIPTION OF THE ANNEXING SCHOOL DISTRICTS TO THE -7- 183 COMMISSIONER PURSUANT TO SUBSECTION (6)OF THIS SECTION.
THE ANNEXING SCHOOL DISTRICTS CONTINUE AS BODIES CORPORATE IN THE SAME MANNER AS BEFORE APPROVAL OF THE ORGANIZATION PLAN .
(8) IF A SCHOOL DISTRICT THAT IS DISSOLVED AND ANNEXED PURSUANT TO THIS SECTION HAS A WARRANT INDEBTEDNESS OR OUTSTANDINGLIABILITY ,OTHERTHANBONDEDINDEBTEDNESS ,INEXCESS OF THE EQUIVALENT OF ONE-HALF MILL ON THE TOTAL VALUATION FOR ASSESSMENT OF THE DISSOLVING SCHOOL DISTRICT ,THEN THE LOCAL SCHOOL BOARD OF A SCHOOL DISTRICT THAT ANNEXES ALL OR ANY PORTION OF THE DISSOLVING SCHOOL DISTRICT,AFTER THE EFFECTIVE DATE OF THE DISSOLUTION AND ANNEXATION AND SUBJECT TO VOTER APPROVAL ,MAYLEVYASPECIALTAX ,NOTTOEXCEEDONEMILL AGAINST THE TAXABLE PROPERTY OF THE DISSOLVING SCHOOL DISTRICT THAT IS ANNEXED BY THE SCHOOL DISTRICT,THE REVENUE FROM WHICH MUST BE APPLIED TO THE RETIREMENT OF THE WARRANT INDEBTEDNESS OR OUTSTANDING LIABILITIES OF THE DISSOLVING SCHOOL DISTR.
WHEN THEWARRANTINDEBTEDNESSOROUTSTANDINGLIABILITIESARERETIRED , THE ANNEXING SCHOOL DISTRICT SHALL DISCONTINUE THE LEVY .
THE PROCEDURES TO BE FOLLOWED PURSUANT TO THIS SUBSECTION (8)ARE THE SAME AS PROVIDED IN THIS TITL22 FOR RETIREMENT OF BONDED INDEBTEDNESS .
SECTION 3.
In Colorado Revised Statutes, 22-30-124, amend (2) as follows:
22-30-124.
Existing bonded indebtedness.
(2) Whenever two or more old school districts, or portions of such school districts, have beenreorganizedandincludedwithinanewschooldistrictandwhenever an old school district has been dissolved and included in any other -8- 183 ANNEXED INTO A school district or school districts, under the provisions of this articleTICLE 30, and, at the time of such reorganization or dissolution and inclusionNNEXATION , one or more of saidTHE old schooldistrictshasoutstandingbondedindebtedness,whichindebtedness has not been assumed by saidTHE new school districOR ANNEXING SCHOOLDISTRICT pursuanttosection22-30-125,thefollowingdutiesand responsibilities shall be performed by the following officers:
(a) The board of education of sucTHE new school distriOR ANNEXING SCHOOL DISTRICT shall certify to the board of county commissioners under separate headings:
the following:
(I) The numbers of all old school districts which had any bondedindebtednessoutstandingatthetimesaid THE oldschooldistricts were reorganized and united into suchTHE new school districOR DISSOLVED AND ANNEXED INTO THE EXISTING SCHOOL DISTRICT ;
(II) The legal description of the property of suchd school districts, which property is liable for payment of all or a portion of the outstanding bonded indebtedness of suchE OLD school districts;
(III) The amount of suchHE OUTSTANDING indebtedness;
which is outstandingand (IV) The amount required for the ensuing calendar year to meet the interest and principal falling due therein.
(b) The board of county commissioners shall levy, segregated underseparateheadingsforthesaidoldschooldistrictsandforthewhole of saidTHE new school distriOR THE ANNEXING SCHOOL DISTRICT, the severalamountsproperlyapplicabletheretofortaxesatthesametimethat othertaxesare levied and atsuchrates,astoeachsuchdschooldistrict andastothewholeof said THE newschooldistrictORANNEXINGSCHOOL -9- 183 DISTRICT, for the payment of the moneMONEY required for saTHE amounts of either principal or interest, or both, and for the other funds needed by saidTHE new school distriOR ANNEXING SCHOOL DISTRICT, certifiedbytheboardofeducationaswillproducetheseveralamountsso certified.
(c) Theamountsofsaidtaxeswhichshallbe THETAXESTHATARE levied on the several portions of saidew school district and on the entire new school districtOR ON THE SEVERAL PORTIONS OF THE ANNEXING SCHOOL DISTRICT AND ON THE ENTIRE ANNEXING SCHOOL DISTRICT, shall be placed in separate columns in the tax book, which columnsshallbeheaded"specialschooltax"andshallbesubdividedinto separatecolumnsdesignatedbythenumbersoftheoldschooldistrictsby which saidTHE bonded indebtedness was issued, showing what portion ofsaid THEspecialtaxisforthepurposesoftheentirenewschooldistrict ORENTIREANNEXINGSCHOOLDISTRICT andwhatportionisforinterestor principal of bonded indebtedness of old school districts, to which indebtedness saidTHE old school districts were subject at the time of reorganization or dissolution, and inclusion of such old school districts in the new school disOR ANNEXATION OF THE OLD SCHOOL DISTRICT BY THE EXISTING SCHOOL DISTRIC.
(d) The county assessor and the countytreasurer shall soe their tax schedules and books as conform to the provisions of this section and with column headings respectivelyfor the entire new school districtR ENTIRE ANNEXING SCHOOL DISTRICT subdivided into columns designated by parentheses, with the number of the old school district by whichsuch THE bondedindebtednesswascreatedandwhichindebtedness is undischarged, and showing, as to each property listed, the amount of -10- 183 tax properlylevied on sTHE propertyon account of sTHE bonded indebtedness existing against saidproperty as a portion of the old school district reorganized or dissolved, and included within the new schooldistrictANNEXEDTOTHEEXISTINGSCHOOLDISTRICT atthetime of saidHE levy.
SECTION 4.
Act subject to petition - effective date.
This act takes effect at 12:01 a.m.
on the day following the expiration of the ninety-dayperiodafterfinaladjournmentofthegeneralassembly(August 2, 2019, if adjournment sine die is on May 3, 2019);
except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2020 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.
-11- 183