AN ACT relating to independent school districts.

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AN ACT relating to independent school districts. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 160 IS CREATED TO 3
READ AS FOLLOWS: 4
As used in Sections 1 to 6 of this Act: 5
(1) "Interim school board" or "interim board" means the local board of education 6
of a new independent school district that is elect ed under to Section 2 of this Act 7
or any successor board elected, either of which are serving prior to the deadline 8
to be fully operational established in subsection (4)(h) of Section 4 of this Act; 9
(2) "Local legislative body" means the: 10
(a) Legislative body of a consolidated local government or urban -county 11
government in a county where those governments exist; or 12
(b) County fiscal court in a county where no consolidated local government or 13
urban-county government exists; 14
(3) "New independent school district" or "new independent district" means an 15
independent school district that is established under Section 2 of this Act; 16
(4) "Originating school district" or "originating district" means the school district 17
from which new independent school dis tricts are established under Section 2 of 18
this Act; and 19
(5) "Persistently underperforming school district" means a school district that 20
contains more than fifty percent (50%) of the schools identified for 21
comprehensive support and improvement under KRS 160 .346 during a school 22
year. 23
SECTION 2. A NEW SECTION OF KRS CHAPTER 160 IS CREATED TO 24
READ AS FOLLOWS: 25
(1) Each year upon the identification of schools for comprehensive support and 26
improvement, the Kentucky Department of Education shall determine if any 27
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school district is a persistently underperforming school district and provide notice 1
of the fact to the local legislative body of the county in which the school district is 2
located. 3
(2) Within thirty (30) days of the local legislative body receiving notice of the 4
persistently underperforming school district, the local legislative body shall hold a 5
public hearing to receive public comment on the state of the persistently 6
underperforming school district, whether the persistently underperforming school 7
district should be divided, and where the boundaries of any new independent 8
school districts derived from the persistently underperforming school district 9
should be located. All persons desiring to be heard shall be given an oppo rtunity 10
to present oral testimony. The local legislative body may set reasonable time limits 11
for testimony. The local legislative body shall advertise the hearing by causing the 12
following to be published at least twice for two (2) consecutive weeks, in the 13
newspaper of largest circulation in the county, a display type advertisement of not 14
less than twelve (12) column inches: 15
(a) The purpose of the hearing under this subsection; and 16
(b) The time and place for the hearing which shall be held not less than 17
seven (7) days nor more than ten (10) days after the day that the 18
second advertisement is published. 19
(3) (a) No sooner than thirty (30) days and no later than ninety (90) days after the 20
public hearing, the local legislative body shall hold a specially called 21
meeting to consider whether the question of dividing the persistently 22
underperforming school districts into two (2) or more new independent 23
school districts shall be submitted to the voters. 24
(b) To submit the question of division to the voters, the local l egislative body 25
shall adopt by majority vote a map detailing the boundaries of the proposed 26
new independent school districts. The local legislative body shall only 27
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submit one (1) proposed map to the voters. The proposed map shall: 1
1. Divide the persistentl y underperforming school district into at least 2
two (2) new independent school districts of substantially similar area, 3
population, and property assessment value; 4
2. Completely divide the area of the persistently underperforming school 5
district and affect no other school districts; 6
3. Contain integral voting precincts insofar as is practical; and 7
4. Include streets, highways, political boundaries, and other similar 8
landmarks that make understanding the proposed map easier to read. 9
(c) If the local legislati ve body either does not adopt a proposed map under 10
paragraph (a) of this subsection or determines to not propose division by a 11
majority vote at the meeting, the question shall not be submitted to the 12
voters. 13
(d) If the local legislative body adopts a propo sed map under subsection (3)(a) 14
of this section, the proposed map and notice of the adoption of the proposed 15
map shall be delivered to the county clerk within five (5) days of the 16
adoption. 17
(4) Upon receipt of the proposed map and the notice under subsecti on (3) of this 18
section, the county clerk shall: 19
(a) Direct that the questions in subsections (8)(a) and (b) of this section shall be 20
placed on the ballot for the next regular election to be held in that county; 21
(b) Begin to accept petitions for nomination for the provisional election of 22
members of the interim boards of education that would be established upon 23
the establishment of the new independent school districts as provided in 24
subsection (9) of this section; and 25
(c) Advertise the proposed map approved by the local legislative body under 26
subsection (3) of this section by causing the proposed map to be published 27
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as a display type advertisement of not less than twelve (12) column inches at 1
least twice for two (2) consecutive weeks in the newspaper of large st 2
circulation in the county during the thirty (30) days prior to the next regular 3
election. 4
(5) The eligibility requirements, number of members, and election requirements 5
applied to other independent school districts under KRS Chapter 160 shall apply 6
to t he provisional election of the interim boards as though the proposed new 7
independent districts were already in existence. 8
(6) The general election laws, including penalties for violations, shall apply to the 9
election for the proposed new independent districts and the provisional election of 10
an interim board of the proposed new independent districts required in this 11
section, except where these laws are inconsistent with this section. 12
(7) No later than the fourth Tuesday preceding an election at which the pro position 13
under this section is to be submitted to the voters, any committee that in good 14
faith advocates or opposes the establishment of the new independent districts may 15
file a petition with the county clerk asking that the petitioners be recognized as 16
the committee entitled to nominate challengers for the question in subsection 17
(8)(a) of this section to serve at the election at which the question of division is to 18
be voted on. The requirements and procedures regarding challengers under this 19
subsection shall be the same as provided in KRS 117.315(4), (5), and (6), 117.316, 20
117.317, and 117.318. 21
(8) The proposition of establishing new independent school districts under this 22
section shall submit two (2) questions to the voters as follows: 23
(a) The first question shall be on the division of the persistently 24
underperforming school district and shall be su bmitted to all voters residing 25
in the school district. The question to be voted upon shall be stated without 26
emblems and voters shall designate a "Yes" or a "No" vote. The form of the 27
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question shall be: "Are you in favor of the dissolution of (name of scho ol 1
district) and the establishment of new independent school districts as 2
proposed by (name of local legislative body) to serve the residents of the new 3
districts and be governed by elected local boards of education with authority 4
to raise taxes for educational purposes?"; and 5
(b) The second question shall be on the provisional membership of the interim 6
boards of education of the new independent districts and shall be submitted 7
to the voters residing in the proposed new independent school districts 8
independently. The form of the proposition for the provisional election of 9
the interim board members shall be: "If a new independent school district is 10
established, who should serve as the members of the interim board of 11
education for the district?" 12
(9) If the maj ority of votes cast in the election on establishing a new independent 13
district under subsection (8)(a) of this section are: 14
a. "No," then the election of the members of the interim board of education 15
shall be void; or 16
b. "Yes," then the election of the in terim board of education shall be binding 17
and the five (5) candidates receiving the most votes shall be elected to the 18
board. 19
(10) The ballot containing an election establishing a new independent school district 20
and a provisional election of an interim boa rd of education for the proposed new 21
independent school district shall have the question of the establishment of the 22
new independent district appear on the ballot before the provisional election of an 23
interim board of education. The two (2) questions shall appear on the ballot in 24
proximity to each other. 25
(11) The county clerk shall conspicuously post the proposed map approved by the 26
local legislative body under subsection (3) of this section at each precinct polling 27
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place and make copies available to voters at each polling place upon request. 1
(12) The results of the election shall be certified by the county board of elections. The 2
certificate of the result shall be immediately filed with the county clerk and the 3
certificate, or an attested copy thereof, shal l be prima facie evidence of the result 4
of the election. 5
(13) The questions in subsection (8) of this section shall be subject to the same 6
recount, contest, canvass, and recanvass provisions and procedures as set forth in 7
KRS 242.120. 8
(14) (a) Any interim board members elected under subsection (8)(b) of this section 9
shall assume office upon certification of the election results and serve on 10
the interim board until January 1 following the next regular election in an 11
even year. 12
(b) Notwithstanding KRS 160.200 , upon the end of the term of any members 13
elected under subsection (8)(b) of this section, as set out in paragraph (a) of 14
this subsection, the three (3) members elected during the regular election in 15
an even year with the most votes shall then take office and serve four (4) 16
year terms. The remaining members elected during that election shall serve 17
an initial two (2) year term, with subsequent terms being for four (4) years. 18
SECTION 3. A NEW SECTION OF KRS CHAPTER 160 IS C REATED TO 19
READ AS FOLLOWS: 20
(1) Upon the certification of an election result that establishes new independent 21
school districts and interim boards of education under Section 2 of this Act, the 22
interim boards shall have all the powers, authority, and responsi bilities of any 23
other local board of education, except for the transitional provisions provided in 24
this section and Sections 4, 5, and 6 of this Act. Any vacancy in membership of an 25
interim board shall be filled in the same manner as KRS 160.190. 26
(2) The board of education of the originating district shall continue serving as the 27
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board of education of the originating district until the district's dissolution. 1
(3) Upon the certification of an election result that establishes new independent 2
districts and interim boards under Section 2 of this Act, the Kentucky Department 3
of Education shall conduct a calculation of the total assets and liabilities held by 4
the originating district. The calculation shall comply with the following: 5
(a) The calculation shall be a n amount in dollars for both total assets and total 6
liabilities; 7
(b) The department shall develop a list of assets and liabilities and the values 8
assigned to each. Classes of individual items may collectively be given an 9
assigned value based on an average valuation; 10
(c) The liabilities shall include all the debt service of the originating district, 11
including debt for construction and the purchase of equipment for the 12
originating district; 13
(d) The department shall then calculate the projected tax assessments for each 14
of the new independent districts. Based on the proportion of each of the new 15
independent district's projected tax assessments, the department shall assign 16
an amount in dollars of both assets and liabilities. These shall be the initial 17
assigned value of assets and liabilities for each district; 18
(e) Until the transfer of assets and liabilities outlined in subsection (8) of this 19
section, and excluding any required funds transferred in Section 4 of this 20
Act, the originating district shall maintain con trol and use of its the assets 21
and shall be responsible for their maintenance. An amount of assets 22
assigned to the new independent district in paragraph (d) of this subsection 23
shall be restricted and shall only be used, disposed of, or expended to 24
provide essential education services for currently enrolled students. The 25
originating district's use of these funds shall require approval of the 26
department; and 27
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(f) Prior to the deadline for the new independent districts to be fully 1
operational established in sub section (4)(h) of Section 4 of this Act, as the 2
originating district continues to make any payments on debts, the amounts 3
shall be attributed in the same proportional manner as in paragraph (d) of 4
this subsection. 5
(4) The interim board of education of the new independent districts shall conduct 6
negotiations to agree to the division of the originating district's assets and 7
liabilities. Each new independent district shall be entitled to an amount of assets 8
assigned by the department under subsection (3) of th is section. The negotiation 9
shall resolve: 10
(a) The disposition of any of the originating district's real property that is 11
located within the boundaries of the new independent districts; 12
(b) The division of any liquid assets, accounts receivable, and intang ible assets 13
held by or owed to the originating district; 14
(c) The specific liabilities each district shall receive individually or shall share 15
between the districts; 16
(d) The division, in bulk or individually, of the originating district's desks, 17
books, computers, projectors, televisions, phones, school buses, 18
automobiles, furniture, equipment, supplies, and other tangible personal 19
property owned by the originating school district; and 20
(e) The continuation, modification, assignment, or termination of 21
nonemployment contracts agreed to by the originating district. 22
(5) The boards of education shall conclude negotiations and enter an agreed division 23
of the originating district's assets and liabilities by November 1 following the 24
establishing of the new independent districts. The agreement may provide a 25
timeline for the general transfer of assets and liabilities and may also provide for 26
a timeline for the transfer of specific asse ts. If any matter remains unresolved 27
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after the deadline established in this subsection, the matters shall be presented to 1
the commissioner of education or designee for resolution pursuant to subsection 2
(6) of this section. Any proposed agreement to the div ision of the originating 3
district's assets shall be agreed to by a majority vote of each district's board of 4
education. 5
(6) On issues the boards cannot come to agreement under subsections (4) and (5) of 6
this section, a board may appeal to the commissioner of education or designee to 7
determine an equitable resolution of the disagreement. In any determination, the 8
decision shall prioritize the successful operation of each district. The matter shall 9
be decided within thirty (30) days of the submission. The com missioner or 10
designee shall notify the districts of the decision. The decision may be appealed to 11
the Kentucky Board of Education at its next regular meeting. 12
(7) If any disagreement between the boards remains unresolved after the passage of 13
the deadlines in subsections (5) and (6) of this section, the Kentucky Department 14
of Education shall assess a fine to the districts in the amount of the dispute in 15
question with the fine divided proportionally in the same manner as in subsection 16
(3)(d) of this section and the fine shall be placed in the fund to support education 17
excellence in Kentucky. 18
(8) By the second June 30 following the establishment of the new independent 19
districts, the transfer of all assets and debts identified in the agreement made 20
under subsect ion (5) of this section or resolved under subsection (6) of this 21
section shall be determined and completed and the originating school district 22
shall be dissolved. 23
(9) The originating district shall continue to exercise taxing authority over the new 24
independent districts and shall collect revenues. For the tax year in which the 25
deadline to be fully operational established in subsection (4)(h) of Section 4 of 26
this Act occurs, the amounts collected by the originating district shall be 27
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distributed proportionall y between the new independent districts in the same 1
manner as in subsection (3)(d) of this section. Upon the close of that tax year, the 2
new independent districts shall be responsible for collecting the taxes within the 3
boundaries of the districts as otherwise provided by law thereafter. 4
SECTION 4. A NEW SECTION OF KRS CHAPTER 160 IS CREATED TO 5
READ AS FOLLOWS: 6
(1) When a new independent school district is established under Section 2 of this Act, 7
the county judge/executiv e of the county in which it is established shall call the 8
interim local board of education to meet within ten (10) days. 9
(2) At the first meeting, the interim board shall only: 10
(a) Take the oath of office; 11
(b) Elect a chair and vice chair; 12
(c) Discuss potential policies of the interim board; 13
(d) Discuss the appointment of a superintendent, secretary, and treasurer under 14
KRS Chapter 160; and 15
(e) Determine whether the board shall seek assistance from the commissioner 16
of education pursuant to subsection (3) of this section. 17
(3) An interim board may request technical assistance from the Kentucky 18
Department of Education by submitting a request to the commissioner of 19
education. Upon receiving a request, the commissioner shall direct department 20
staff to provide tec hnical assistance to the board in developing the transition 21
required under subsection (4) of this section. 22
(4) In transitioning the new independent district into a fully functional district, the 23
interim board and new independent district shall conform with the following: 24
(a) The interim board shall develop, adopt, maintain, and comply with the 25
transition plan required under Section 6 of this Act; 26
(b) By January 1 after its establishment, the interim board shall develop an 27
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interim budget for the operations o f the new independent district for the 1
remainder of the fiscal year that will only include the costs of critical 2
operations of the board, such as salaries, supplies, offices, and other 3
expenses necessary for the board to function. The chair of the board sh all 4
submit the interim budget to the commissioner of education for approval. 5
Within five (5) days, the commissioner shall approve or disapprove the 6
proposed budget. If the proposed budget is disapproved, the interim board 7
may resubmit an amended budget or appeal the commissioner's decision to 8
the Kentucky Board of Education at its next regular meeting. Once a budget 9
has been approved, the department shall require the originating district to 10
transfer the approved amounts to the new independent district in re gular 11
installments. If the originating district fails to transfer the funds, the 12
amounts shall be deducted from the funds transferred to the originating 13
district from the fund to support education excellence in Kentucky. These 14
amounts shall be deducted fro m the new independent district's assets 15
assigned in subsection (3) of Section 3 of this Act; 16
(c) In a timely manner, the interim board shall: 17
1. Appoint an interim superintendent for the new independent district to 18
assist the board in executing the transi tion. Any contract between an 19
interim superintendent and an interim board shall not extend past the 20
deadline for the new independent district to be fully operational 21
established in paragraph (h) of this subsection, but may subsequently 22
be renewed by the board; 23
2. Appoint a secretary and a treasurer for the board; and 24
3. Select counsel for the board; 25
(d) Upon the direction of the interim board, the interim superintendent shall 26
hire district staff critical for the operations of the interim board, including 27
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but not limited to a district finance officer. Notwithstanding any statute to 1
the contrary, any hiring or termination made by the interim superintendent 2
prior to the deadline established in paragraph (h) of this subsection shall be 3
subject to ratification by the interim board; 4
(e) By May 1 following the establishment of the new independent district, the 5
interim board shall develop a budget for the operations of the district for the 6
following fiscal year. The chair of the board shall submit the budget to the 7
commissioner of education for approval. The budget under this paragraph 8
shall be subject to the same provisions as the interim budget in paragraph 9
(b) of this subsection but shall include additional district staff required for 10
the continued development of district operations; 11
(f) By the second January 1 following the establishment of the new 12
independent district, the interim board shall: 13
1. Identify the schools that the board intends to establish within the 14
district at the start of the next school year, the grades and programs to 15
be operated within those schools, and the number of staff and the staff 16
positions that will be placed at those schools; and 17
2. Develop a special budget designed to build up the district's operations 18
necessary to provide a minimum school term as defined in KRS 19
158.070 during the following school year. The budget under this 20
subparagraph shall be subject to the same prov isions as the interim 21
budget in paragraph (b) of this subsection but shall include funds 22
needed prior to the beginning of the next school year for: 23
a. The hiring of principals and other school staff required for 24
preparations; 25
b. District and school facilit ies and additional supplies or tangible 26
personal property not provided for in the agreement in 27
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subsection (4) of Section 3 of this Act; and 1
c. Contract services that are needed to support district and school 2
operations; 3
(g) Notwithstanding KRS 160.345, upon the authorization by the interim board: 4
1. The interim superintendent shall select and hire the principals for the 5
district's schools, subject to the ratification of the interim board; and 6
2. The principals shall begin hiring school staff for the followi ng school 7
year, with the hiring subject to the ratification of the interim 8
superintendent; and 9
(h) The second July 1 following the establishment of the new independent 10
school district shall be the deadline for the district to be fully operational 11
and the i nterim board shall ensure the district is prepared to provide full 12
services to the students of the new independent school district for the 13
coming school year. 14
(5) An interim board of a new independent district may request a waiver of the 15
timeline establish ed in subsection (4) of this section to the commissioner of 16
education or designee, except that no waiver shall be granted to alter the deadline 17
established in subsection (4)(h) of this section. The commissioner or designee 18
shall approve or deny the request within five (5) days of the submission. In 19
approving a waiver, the commissioner or designee shall establish a new deadline 20
that would reasonably ensure the new independent school district is fully 21
operational by the second July 1 following the establishme nt of the new 22
independent school district. A denial may be appealed to the Kentucky Board of 23
Education at its next regular meeting. 24
(6) If during the transition established under this section the interim board identifies 25
a statute or administrative regulat ion that inhibits the new independant district's 26
ability to be fully operational as required under subsection (4)(h) of this section, 27
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the interim board may submit a request to the Kentucky Board of Education to 1
temporarily waive the statute or administrati ve regulation. The request shall 2
identify the specific statute or administrative regulation, the rationale for the 3
needed waiver, and the duration the waiver is needed. The Kentucky Board of 4
Education shall consider the request at its next regular meeting and, if the 5
request is approved, the state board shall identify the duration of the waiver that 6
shall not extend past the conclusion of the first fully operational school year. 7
(7) The interim board may enter into a contract with another board of education to 8
provide support services for the new independent district, including financial 9
management and payroll services. The contract shall not extend beyond the 10
deadline established in subsection (4)(h) of this section. However, the contract 11
may subsequently be renewed by the board. 12
(8) Notwithstanding any other provision of Sections 1 to 6 of this Act, if, prior to the 13
deadline established in subsection (4)(h) of this section, each of the interim 14
boards of new independent districts within an originating school district 15
determines by a four -fifths (4/5) vote that the establishment of the new 16
independent district is not financially viable, then the chair of each interim board 17
shall submit notice of the vote to the board of education of the originating district 18
and the commissioner of education and the commissioner shall establish the 19
timeline and the process for the new independent districts and interim boards to 20
cease functions and merge back into the originating school district. 21
SECTION 5. A NEW SECTION OF KRS CHAPTER 160 IS CREATED TO 22
READ AS FOLLOWS: 23
(1) Upon the deadline to become fully functional in subsection (4)(h) of Section 4 of 24
this Act, the new independent district shall be prepared to provide services to the 25
students of the district and the interim board shall no longer serve as an interim 26
but shall exercise the full authorities of a local board of education, except for the 27
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provisions of this section and Section 6 of this Act. Both the originating district 1
and the loc al board of education of the originating district shall cease operation 2
and shall be dissolved. 3
(2) For any debts assessed to the new independent district under Section 3 of this Act, 4
any tax levied by the originating district that was authorized for the p urposes of 5
paying a specific debt or interest shall continue to be levied and collected within 6
the boundaries of the new independent district by the new independent district's 7
board in accordance with the laws under which the levies were originally made 8
until all the associated obligations of the originating district have been retired. 9
(3) Notwithstanding the requirements under KRS 160.345, the new independent 10
district shall not be required to implement school -based decision making in the 11
district for the first fully operational school year, but shall adopt a process to seek 12
the feedback of parents and school faculty during that year. The district shall be 13
subject to KRS 160.345 with the start of the second fully operational year. 14
SECTION 6. A NEW SECTION OF KRS CHAPTER 160 IS CREATED TO 15
READ AS FOLLOWS: 16
(1) The interim board shall develop, adopt, maintain, and comply with a transition 17
plan for the new independent district that shall guide the transition process for 18
the new independent district until the close of the first fully operational school 19
year. 20
(2) The interim board may request assistance in developing and maintaining the 21
transition plan from the commissioner of education who shall provide expertise 22
and guidance fro m the Kentucky Department of Education for the interim 23
board's plan. 24
(3) The transition plan shall include, at a minimum: 25
(a) The aspects required in subsection (4) of Section 4 of this Act; 26
(b) An assessment detailing the new independent district's number of school -27
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aged residents and projections for the first fully operational school year's 1
total enrollment and enrollment by grade; 2
(c) The schools, grades, and programs the district will offer; 3
(d) The facilities that the district will maintain to house tho se schools, grades, 4
and programs that includes a facilities plan for the first fully operational 5
year; 6
(e) The transportation services the district will provide to students that includes 7
a transportation plan for the first fully operational year; 8
(f) The food services the district will provide to students that includes a food 9
services plan for the first fully operational year; 10
(g) The process the district will follow in conforming to the Individuals with 11
Disabilities Education Act, the Americans with D isabilities Act, and the 12
Rehabilitation Act of 1973; 13
(h) The staffing plan for the district that includes teacher and staff assignments 14
to specific schools for the first fully operational year; 15
(i) The procedures and advisory bodies established to seek par ent and school 16
faculty feedback during the first fully operational year as required under 17
Section 5 of this Act; 18
(j) Notwithstanding the requirements in KRS 158.070 for a school district 19
calendar committee, establish the school calendar for the first fully 20
operational school year; 21
(k) A district technology plan that provides for the technological needs of the 22
district and schools throughout the transition and the first fully operational 23
school year; 24
(l) Transition services for high school students to ensure that students remain 25
on track to graduate during the transition and the first fully operational 26
school year; and 27
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(m) During the first fully operational school year, whether and how the new 1
independent district will offer the following: 2
1. Preschool and kindergarten; 3
2. Career and technical education; 4
3. Student health services; and 5
4. Family resource and youth service centers. 6
SECTION 7. A NEW SECTION OF KRS CHAPTER 157 IS CREATED TO 7
READ AS FOLLOWS: 8
(1) As used in this section, "originating school district" and "new independent 9
school district" have the same meanings as in Section 1 of this Act. 10
(2) Notwithstanding any provisions of this chapter to the contrary, when a new 11
independent school district is established under Sections 1 to 6 of this Act, the 12
calculation of the funds from the fund to support education excellence in 13
Kentucky that are due to new independent school districts for the first fully 14
operational school year shall: 15
(a) For purposes of average daily atten dance, be based on each districts' 16
projected enrollment and the originating district's average daily attendance 17
from the prior school year; and 18
(b) For purposes of aggregate daily attendance of students transported, be 19
based on each districts' projected en rollment and a transportation plan 20
submitted to the Kentucky Department of Education by the new independent 21
districts. 22
(3) The calculations required in subsection (2) of this section shall be adjusted by the 23
Kentucky Department of Education in January of t he first fully operational 24
school year to reflect the first semester's actual data. 25
(4) Following the first fully operational school year, funding for subsequent years of 26
operation shall be calculated as otherwise provided in this chapter. 27