All Roll Calls
Yes: 270 • No: 0
UtahS.B. 1882025 General SessionSenateWALLET
School District Modifications
Sponsored By: Keith Grover (Republican)
Signed by Governor
EducationK-12 EducationInterlocal CooperationLegislative OperationsLegislative OrganizationMunicipalitiesPolitical Subdivisions (Local Issues)Government Operations (State Issues)Interlocal AgreementsLegislative Staff OfficesSchool Districts
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Bill Overview
Analyzed Economic Effects
17 provisions identified: 6 benefits, 4 costs, 7 mixed.
Job and pay protections for schoolworkers
Successor districts must give eligible contracted school employees written job offers at least six months before the allocation date. Offers follow student population shares, and transfers take effect on the allocation date; duties and titles may change. First-year pay cannot fall below what employees would have received without the transfer. Receiving districts must credit recognized leave and tenure, or pay unmatched leave benefits as if the employee retired. These protections exclude administrative-schedule, provisional, and at-will employees.
Shared schools for students with disabilities
New and reorganized districts must make a shared-services agreement unless both school boards agree to skip it. Agreements allow access to schools serving students with disabilities inside or outside the student's district. Access can last up to five years after the new district begins educational services. Payments between districts reflect actual service costs, and the arrangement cannot reduce services for other students.
Property owners still cover district debt
For new districts created on or after May 10, 2011, successor districts must levy enough tax for qualifying annual bond payments. Covered debt includes specified general obligation and lease revenue bonds issued before creation or under mutual board agreements, with statutory exceptions. The State Tax Commission determines adjusted assessed property values as of creation to set the levy. A new district can reduce its levy only when it has money to pay the matching amount to the reorganized district.
Limits on schoolworker raises and payouts
Starting on the creation date, the divided district cannot grant new severance, bonuses, retirement packages, or buyouts. Earlier written agreements or policies remain allowed, as do yearly cost-of-living raises and previously established pay increases. Successor boards may jointly approve exceptions; conflicting agreements or policies, including those made after November 4, 2024, are void. Employment agreements must state that they do not bind successor districts. The divided district also cannot destroy district records.
Property taxes wait for district instruction
New and reorganized districts cannot impose property taxes before the fiscal year they take responsibility for teaching students. If their territory already has the covered levy when instruction begins, boards can end it or impose it under state law. They can also continue it under a capped option. That option cannot exceed the rate or duration voters authorized at the relevant district-creation vote.
Schools keep operating during district splits
Counties hold successor-board elections the next year on the applicable regular or municipal schedule; initial terms are roughly half three years and half five years, chosen by lot. Until the allocation date—normally July 1 of the second calendar year after board elections, unless mutually changed—the divided board keeps providing education. Dual board service is allowed; terms ending within one year of allocation extend until then, when the divided district and board end. School closures need the affected successor board's consent once its members take office; covered isolated areas keep existing services until joining their municipality's district on that July 1. The board-election and continuity rules apply retroactively beginning November 4, 2024.
Students keep former secondary school access
For six school years after district creation, eligible students can choose their former secondary school outside the successor district. Students must have lived in the new or reorganized district at creation and within that school's boundaries the day before. They must also have qualified to attend that school without the district split. The school's district must provide education and any busing it provided before creation. This rule applies retroactively beginning November 4, 2024.
Public review of district financial plans
An interlocal proposal's contact sponsor must request a feasibility study within 30 days after request certification. The Legislative Auditor General conducts requested studies, subject to audit-subcommittee priorities, including financial viability and taxpayer burdens. After receiving the study, participating bodies and municipalities inside the proposed district must allow 30 days for comments and hold two public hearings. Participating bodies must vote within 14 days after comments close. Approval requires support from a majority of participating municipalities' legislative bodies.
Successor districts retain free records access
On July 1 of the second year after successor-board elections, the district receiving the main office becomes the records keeper. The boards can agree on a different records keeper. Each successor district gets free access through an interlocal agreement for one year after the allocation date. The Legislative Auditor General must keep board submissions to support transition disputes. Boards use an agreed arbiter, or one appointed by the State Board when they cannot agree.
Public records can require upfront payment
Utah government offices can require payment before processing a public-record request when expected fees exceed $50. They can also require payment when a requester has unpaid fees from an earlier invoiced request. Required payment can include past fees and estimated new fees. This rule sets payment timing, not the underlying fee amount.
Districts must document property and debts
The divided board must prepare an initial asset-and-debt inventory within 60 days after creation. Detailed recorded inventories, including related property and estimated settlement costs, are due December 1 of the following year. Regular updates go to successor boards and the Legislative Auditor General; these inventory rules apply retroactively beginning November 4, 2024. Successor boards must decide allocations and report them by December 15 of the year after their election, unless jointly extended. Reports must address disputed items and go to the divided board and Legislative Auditor General.
Cities gain district options with limits
A city cannot join multiple interlocal district proposals or also use the separate municipal route for the same election. Withdrawal requires separate votes by its council and most participating cities before August 1 of the filing year; majority withdrawal voids the request until next year. Cities working with another city can include partial territory to avoid isolation or follow existing district boundaries. Participants can include a neighboring isolated area after its city leaves a written invitation unanswered for 30 days. The invited city must hold two public hearings and can join for that area by majority council vote.
School boards control newly formed districts
An area left after an approved split is treated as a reorganized new district when excluded from the approved proposal. This also covers an area in a rejected proposal within an existing district that contains approved new-district territory. Once elected, successor school boards control their districts independently of city and county governments. The responsible city or interlocal public bodies must register each new district within 60 days of creation. Districts must keep registration current, subject to state auditor enforcement.
Voters decide district splits within limits
Proposed district boundaries must connect, avoid isolated areas, and include whole participating towns or cities except portions outside the divided district. Creation efforts can start no more than once in two years, and within divided districts only in the allocation-date year. For citizen petitions, every county containing proposed territory must first approve the petition. Then voters inside the proposed district—not the whole existing district—decide by majority vote. Voter approval sets the creation date.
District property transfers need local approval
At allocation, physical assets and related liabilities follow their location; discretionary assets and debts follow student population shares. School buses follow transportation needs and fleet parity; other vehicles follow student shares with parity, unless boards agree otherwise. Each successor keeps local buildings, land, and water rights unless both boards agree to another allocation. Title transfers follow the allocation report by the allocation date, with agreed timing changes allowed for real estate and vehicles. From creation, covered transfers outside these rules need consent from relevant municipal or interlocal bodies before successor elections, then from the board where the property sits.
New district borrowing brings repayment duties
After creation, divided districts can issue lease revenue bonds for successors, sharing proceeds by property-tax value; seated successor boards must consent in writing. General obligation bonds under interlocal agreements require majority approval among divided-district voters voting on the bond and proportional proceeds and repayment. The divided district pays until allocation, then successors assume their shares; these bonds do not count toward its outstanding bonded debt. These financing rules apply retrospectively to bonds issued after November 4, 2024. A lease revenue bond is required, exempt from the stated combined-total limit, when a bond failed districtwide within three years but won majority support in the successor's area.
Startup money and costs for districts
On January 1 in each of the first two years after board elections, the divided district must distribute transition money. Total funding is the greater of 1% of its total weighted-pupil-unit funding or $60 per student, divided using the latest October student count. Successor districts must repay covered municipal legal and administrative costs by July 1 of the second year after inaugural elections. Otherwise, each district pays its own formation and compliance costs. Career-education property sale proceeds can fund the next year's program project and must be distributed by student population two years after inaugural elections.
Sponsors & Cosponsors
Sponsor
Keith Grover
Republican • Senate
Cosponsors
Stephanie Gricius
Republican • House
Roll Call Votes
Senate vote • 3/7/2025
Senate Motion to Adopt Joint Conference Comm Rpt
Yes: 0 • No: 0
House vote • 3/7/2025
House Conference Committee - Final Passage
Yes: 68 • No: 0
Senate vote • 3/7/2025
Senate/ refuse to concur with House amendments
Yes: 0 • No: 0
Senate vote • 3/7/2025
Senate Conference Committee - Final Passage
Yes: 24 • No: 0
House vote • 3/7/2025
House Motion to Adopt Joint Conference Comm Rpt
Yes: 0 • No: 0
House vote • 3/7/2025
House/ refused to recede from House amendment
Yes: 0 • No: 0
House vote • 3/6/2025
House/ passed 3rd reading
Yes: 70 • No: 0
House vote • 2/27/2025
House Comm - Amendment Recommendation
Yes: 12 • No: 0
House vote • 2/27/2025
House Comm - Substitute Recommendation
Yes: 12 • No: 0
House vote • 2/27/2025
House Comm - Favorable Recommendation
Yes: 12 • No: 0
House vote • 2/27/2025
House Comm - Amendment Recommendation
Yes: 12 • No: 0
Senate vote • 2/12/2025
Senate/ passed 3rd reading
Yes: 25 • No: 0
Senate vote • 2/12/2025
Senate/ floor amendment
Yes: 0 • No: 0
Senate vote • 2/11/2025
Senate/ passed 2nd reading
Yes: 25 • No: 0
Senate vote • 2/11/2025
Senate/ substituted
Yes: 0 • No: 0
Senate vote • 2/4/2025
Senate Comm - Favorable Recommendation
Yes: 5 • No: 0
Senate vote • 2/4/2025
Senate Comm - Substitute Recommendation
Yes: 5 • No: 0
Senate vote • Unknown
Senate/ refuse to concur with House amendments
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ floor amendment
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ substituted
Yes: 0 • No: 0
Senate vote • Unknown
Senate Motion to Adopt Joint Conference Comm Rpt
Yes: 0 • No: 0
House vote • Unknown
House Motion to Adopt Joint Conference Comm Rpt
Yes: 0 • No: 0
House vote • Unknown
House/ refused to recede from House amendment
Yes: 0 • No: 0
Actions Timeline
Senate/ to Governor
3/17/2025SenateSenate/ received enrolled bill from Printing
3/17/2025SenateGovernor Signed
3/17/2025Senate/ enrolled bill to Printing
3/13/2025SenateEnrolled Bill Returned to House or Senate
3/13/2025Draft of Enrolled Bill Prepared
3/7/2025Bill Received from Senate for Enrolling
3/7/2025Senate/ signed by President/ sent for enrolling
3/7/2025SenateSenate/ received from House
3/7/2025SenateHouse/ to Senate
3/7/2025HouseHouse/ signed by Speaker/ returned to Senate
3/7/2025HouseHouse/ received from Senate
3/7/2025HouseSenate/ to House
3/7/2025SenateSenate Conference Committee - Final Passage
3/7/2025SenateSenate Motion to Adopt Joint Conference Comm Rpt
3/7/2025SenateSenate/ received from House
3/7/2025SenateHouse/ to Senate
3/7/2025HouseHouse Conference Committee - Final Passage
3/7/2025HouseHouse Motion to Adopt Joint Conference Comm Rpt
3/7/2025HouseConference Committee Report
3/7/2025Bill Substituted by Conference Committee
3/7/2025Senate/ to House
3/7/2025SenateSenate Conference Committee Appointed
3/7/2025SenateSenate/ received from House
3/7/2025SenateHouse/ to Senate
3/7/2025House
Bill Text
Enrolled
3/13/2025
Substitute #5
3/7/2025
Amended 2/27/2025 11:02:228
2/27/2025
Substitute #4
2/26/2025
Substitute #3
2/21/2025
Amended 2/12/2025 12:02:712
2/12/2025
Substitute #2
2/11/2025
Substitute #1
2/4/2025
Introduced
1/28/2025