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) "Altered originating school district" or "altered originating district" means the 6
originating school district as it exists afte r a new independent school district is 7
removed from its boundaries and that shall continue as the same legal entity as 8
the originating school district; 9
(2) "Interim school board" or "interim board" means the local board of education 10
of the new independent school district that is elected under to Section 2 of this Act 11
or any successor board elected, either of which are serving prior to the deadline 12
to be fully operational established in subsection (4)(h) of Section 4 of this Act; 13
(3) "New independent school district" or "new independent district" means an 14
independent school district that is created under Section 2 of this Act; 15
(4) "Originating school district" or "originating district" means a school district 16
from which a new independe nt school district and an altered originating school 17
district is created under Section 2 of this Act; and 18
(5) "Qualifying city" means an incorporated city: 19
(a) That has no independent school district currently in existence within the 20
city's boundaries; 21
(b) With boundaries that do not contain the entirety of the county in which the 22
city is located; and 23
(c) That has a population based on the most recent decennial census conducted 24
by the United States Bureau of the Census of at least five thousand (5,000) 25
people. 26
SECTION 2. A NEW SECTION OF KRS CHAPTER 160 IS CREATED TO 27
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READ AS FOLLOWS: 1
(1) The qualified voters of a qualifying city may petition to require an election on 2
establishing a new independent school district within th e boundaries of the 3
qualifying city. 4
(2) A petition for an election establishing a new independent district shall be signed 5
by the number of constitutionally qualified voters of the qualifying city equal to 6
twenty-five percent (25%) of the votes cast in th e city at the last preceding regular 7
election. The petition may consist of one (1) or more separate units, and shall be 8
filed with the county clerk. The petition shall be in accordance with the 9
following: 10
(a) Before a petition for an election may be presen ted for signatures, an intent 11
to circulate the petition, including a copy of the unsigned petition, shall be 12
filed with the county clerk by any person or group of persons seeking the 13
establishment of a new independent district; 14
(b) After a petition for an election has received no fewer than the number of 15
qualifying signatures required by this subsection, the signed petition shall 16
be filed with the county clerk; 17
(c) A petition for an election shall include, in addition to the signature and 18
legibly printed na me of each voter, the voter's residence address, year of 19
birth, and the correct date upon which the voter's name was signed; 20
(d) No signer of a petition for an election may withdraw his or her name or 21
have it taken from the petition after the petition has been filed. If the name 22
of any person has been placed on the petition for an election without that 23
person's authority, the person may appear before the county clerk before 24
the election is ordered and upon proof that the person's name was placed on 25
the peti tion without his or her authority, the person's name and personal 26
information shall be eliminated by the county clerk. When the person's 27
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name and personal information has been eliminated, he or she shall not be 1
counted as a petitioner; 2
(e) A petition for an election under this subsection shall state: 3
1. "We the undersigned registered voters hereby petition for an election 4
on the following question: 'Are you in favor of the establishment of a 5
new independent school district in (name of city) to serve the res idents 6
of the city and be governed by an elected local board of education with 7
authority to tax for educational purposes?'"; and 8
2. The projected date of the election; 9
(f) No petition for an election shall be circulated for more than six (6) months 10
prior to its filing; 11
(g) Substantial compliance with the wording designated under this subsection 12
for the petition is sufficient to validate the actual wording of the petition; 13
and 14
(h) In order for the election to be held on the day fixed by law for a regular 15
election, the petition shall be filed not later than the first Tuesday following 16
the first Monday in June preceding the day fixed by law for holding the 17
regular election. 18
(3) After a petition for an election has been filed in conformity with this section, the 19
county clerk shall direct that the questions in subsection (8)(a) and (b)1. of this 20
section shall be placed on the ballot for the next regular election to be held in that 21
city. 22
(4) (a) Upon the determination by the county clerk that a petition for an elec tion 23
has satisfied the requirements of this section, the county clerk shall begin to 24
accept petitions for nomination for the provisional election of members of 25
the interim board of education that would be established upon the creation 26
of the new independen t school district as provided in subsection (8) of this 27
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section. 1
(b) The eligibility requirements, number of board members, and election 2
requirements applied to other independent school districts under this 3
chapter shall apply to the provisional election of an interim board as though 4
the proposed new independent district were already in existence. 5
(5) The general election laws, including penalties for violations, shall apply to the 6
election for the proposed new independent district and the provisional elect ion of 7
an interim board of the proposed new independent district required in this 8
section, except where these laws are inconsistent with this section. 9
(6) No election to establish a new independent district under this section shall be held 10
in the same city more than once every three (3) years. 11
(7) No later than the fourth Tuesday preceding an election at which the proposition 12
under this section is to be submitted to the voters, any committee that in good 13
faith advocates or opposes the establishment of the n ew independent district may 14
file a petition with the county clerk asking that the petitioners be recognized as 15
the committee entitled to nominate challengers for the question in subsection 16
(8)(a) of this section to serve at the election at which the propos ition is to be voted 17
on. The requirements and procedures regarding challengers under this 18
subsection shall be the same as provided in KRS 117.315(4), (5), and (6), 117.316, 19
117.317, and 117.318. 20
(8) The proposition under this section shall submit two (2) questions to the voters of 21
the city as follows: 22
(a) The first question shall be on the establishment of the new independent 23
school district. The question to be voted upon shall be stated without 24
emblems and voters shall designate a "Yes" or a "No" vote. The form of the 25
question shall be: "Are you in favor of the establishment of a new 26
independent school district in (name of city) to serve the residents of the city 27
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and be governed by an elected local bo ard of education with authority to 1
raise taxes for educational purposes?"; and 2
(b) The second question shall be on the provisional membership of the interim 3
board of education of the new independent district and shall be subject to 4
the following: 5
1. The fo rm of the question for the provisional election of the interim 6
board members shall be: "If a new independent school district is 7
established, who should serve as the members of the interim board of 8
education for the district?"; 9
2. The five (5) candidates re ceiving the most votes shall be provisionally 10
elected to the board, dependent on subparagraph 3. of this paragraph; 11
and 12
3. If the majority of votes cast in the election on establishing a new 13
independent district under paragraph (a) of this subsection are: 14
a. "No," then the provisional election of the members of the 15
interim board of education shall be void; or 16
b. "Yes," then the provisional election of the members of the 17
interim board of education shall be binding and the board shall 18
serve as an interim board. 19
(9) The ballot containing an election establishing a new independent school district 20
and a provisional election of an interim board 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
(10) The results of the election shall be certified by the county board o f elections. The 26
certificate of the result shall be immediately filed with the county clerk and the 27
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certificate, or an attested copy thereof, shall be prima facie evidence of the result 1
of the election. 2
(11) The questions in subsection (8) of this section shall be subject to the same 3
recount, contest, canvass, and recanvass provisions and procedures as set forth in 4
KRS 242.120. 5
(12) (a) Any members elected under subsection (8)(b) of this section shall assume 6
office upon certification of the election results and serve on the interim 7
board until January 1 following the next regular election in an even year. 8
(b) Notwithstanding KRS 160.200, upon the end of the term of any members 9
elected under subsection (8)(b) of this section, as set out in paragraph (a) of 10
this subsection, the three (3) members elected during the regular election in 11
an even year with the most votes shall then take office and serve four (4) 12
year terms. The remaining members elected during that election shall serve 13
an initial two (2) year term, with subsequent terms being for four (4) years. 14
SECTION 3. A NEW SECTION OF KRS CHAPTER 160 IS CREATED TO 15
READ AS FOLLOWS: 16
(1) Upon the certification of an election result that creates a new independent school 17
district and establishes the district's interim board of education under Section 2 18
of this Act, the interim board shall have all the powers, authority, and 19
responsibilities of any other local board of education, except for the transitional 20
provisions provided in th is section and Sections 4, 5, and 6 of this Act. Any 21
vacancy in membership of an interim board shall be filled in the same manner as 22
KRS 160.190. 23
(2) The board of education of the originating district shall continue serving as the 24
board of education of the altered originating district. The board of education of 25
the altered originating district shall conduct the process for dividing the district 26
into new election divisions under KRS 160.210. In dividing the altered originating 27
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district, if more than one (1) of its members reside in one (1) division, or if any of 1
its members reside in the new independent district, then representation of over - 2
and under -represented divisions shall be determined by lot and the selected 3
members shall represent those divisions unt il their terms expire. Thereafter, 4
members from those divisions shall be nominated and elected as provided in KRS 5
160.200, 160.220, 160.230, 160.240, 160.250, and 160.260. 6
(3) Upon the certification of an election result that creates a new independent dist rict 7
and establishes the district's interim board under Section 2 of this Act, the 8
Kentucky Department of Education shall conduct a calculation of the total assets 9
and liabilities held by the originating district from which the territory of the new 10
independent district was established based on the election date the new 11
independent district. The calculation shall comply with the following: 12
(a) The calculation shall be an amount in dollars for both total assets and total 13
liabilities; 14
(b) The department shall develop a list of assets and liabilities and the values 15
assigned to each. Classes of individual items may collectively be given an 16
assigned value based on an average valuation. The list shall be governed by 17
the following: 18
1. The assets shall exclude: 19
a. Any federal funds or grant funds given to the originating district 20
when division would violate restrictions or conditions of the 21
funds; and 22
b. Any property purchased with funds when division would violate 23
restrictions or condition of the funds or the property; and 24
2. The liabilities shall include all the debt service of the originating 25
district, including debt for construction and the purchase of 26
equipment for the originating district; and 27
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(c) The department shall then calculate the projected tax assessments for both 1
the new independent district and the altered originating district. Based on 2
the proportion of the new independent district's and altered originating 3
district's projected tax assessments to the originating district's overall tax 4
assessments, the de partment shall assign an amount in dollars of both 5
assets and liabilities. These shall be the initial assigned value of assets and 6
liabilities for each district; 7
(4) Until the transfer of assets and liabilities outlined in subsection (10) of this 8
section, and excluding any required funds transferred in Section 4 of this Act, the 9
altered originating district shall maintain control and use of the new independent 10
district's assets and shall be responsible for their maintenance. An amount of 11
assets assigned to the new independent district in subsection (5) of this section 12
shall be restricted and shall only be used, disposed of, or expended to provide 13
essential education services for currently enrolled students. The altered 14
originating district's use of any new i ndependent district funds shall require 15
approval of the department. Any new debt acquired by the altered originating 16
district shall not be assigned to the new independent district. 17
(5) Prior to the deadline for the new independent district to be fully operational 18
established in subsection (4)(h) of Section 4 of this Act, as the altered originating 19
district continues to make any payments on debts of the originating district, the 20
amounts s hall be attributed in the same proportional manner as in subsection 21
(3)(c) of this section. 22
(6) The interim board of education of the new independent district and the board of 23
education of the altered originating district shall conduct negotiations to agre e to 24
the division of the originating district's assets and liabilities. Each district shall be 25
entitled to an amount of assets assigned by the department under subsection (3) 26
of this section. The negotiation shall resolve: 27
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(a) The disposition of any of the originating district's real property that is 1
located within the boundaries of the new independent district; 2
(b) The division of any liquid assets, accounts receivable, and intangible assets 3
of the originating district; 4
(c) The specific liabilities each di strict shall receive individually or shall share 5
between the districts; 6
(d) The division, in bulk or individually, of the originating district's desks, 7
books, computers, projectors, televisions, phones, school buses, 8
automobiles, furniture, equipment, supp lies, and other tangible personal 9
property owned by the originating school district; and 10
(e) The continuation, modification, assignment, or termination of 11
nonemployment contracts agreed to by the originating district. 12
(7) The boards of education shall conclude negotiations and enter an agreed division 13
of the originating district's assets and liabilities by November 1 following the 14
establishing of the new independent district. The agreement may provide a 15
timeline for the general transfer of assets and liabil ities and may also provide for 16
a timeline for the transfer of specific assets. If any matter remains unresolved 17
after the deadline established in this subsection, the matters shall be presented to 18
the commissioner of education or designee for resolution pu rsuant to subsection 19
(8) of this section. Any proposed agreement to the division of the originating 20
district's assets shall be agreed to by a majority vote of each district's board of 21
education. 22
(8) On issues the boards cannot come to agreement under subse ction (6) or (7) of 23
this section, a board may appeal to the commissioner of education or designee to 24
determine an equitable resolution of the disagreement. In any determination, the 25
decision shall prioritize the successful operation of both districts. The matter 26
shall be decided within thirty (30) days of the submission. The commissioner or 27
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designee shall notify the districts of the decision. The decisions may be appealed 1
to the Kentucky Board of Education at its next regular meeting. 2
(9) If any disagreement between the boards remains unresolved after the passage of 3
the deadlines in subsections (7) and (8) of this section, the Kentucky Department 4
of Education shall assess a fine to the districts in the amount of the dispute in 5
question with the fine divided proportionally in the same manner as in subsection 6
(3)(c) of this section and shall be placed in the fund to support education 7
excellence in Kentucky. 8
(10) By the second June 30 following the establishment of the new independent 9
district, the transfer of a ll assets and debts identified in the agreement made 10
under subsection (7) of this section or resolved under subsection (6) of this 11
section shall be determined and completed. 12
(11) The altered originating district shall continue to exercise taxing authority over 13
both the altered originating district and the new independent district and shall 14
collect revenues in the same manner as the originating district. For the tax year 15
in which the deadline to be fully operational established in subsection (4)(h) of 16
Section 4 of this Act occurs, the amounts collected by the altered originating 17
district shall first be divided by two (2). The quotient shall then be distributed 18
proportionally between the two districts in the same manner as in subsection 19
(3)(c) of this section. Upon the close of that tax year, the new independent district 20
shall be responsible for collecting the taxes within the boundaries of the district 21
as otherwise provided by law. 22
SECTION 4. A NEW SECTION OF KRS CHAPTER 160 IS CREATED TO 23
READ AS FOLLOWS: 24
(1) When a new independent school district is established under Section 2 of this Act, 25
the mayor of the qualifying city in which it is established shall call the interim 26
board to meet within ten (10) days. 27
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(2) At the first meeting, the interim board shall only: 1
(a) Take the oath of office; 2
(b) Elect a chair and vice chair; 3
(c) Discuss potential policies of the interim board; 4
(d) Discuss the appointment of a superintendent, secretary, and treasurer under 5
this chapter; and 6
(e) Determine whether the board shall seek assistance from the commissioner 7
of education pursuant to subsection (3) of this section. 8
(3) An interim board may request technical assistance from the Kentucky 9
Department of Education by submitting a request to the commissioner of 10
education. Upon receiving a request, the commissioner shall direct department 11
staff to provide technical assistance to the board in developing the transition 12
required under subsection (4) of this section. 13
(4) In transitioning the new indepe ndent district into a fully functional district, the 14
interim board and new independent district shall conform with the following: 15
(a) Develop, adopt, maintain, and comply with the transition plan required 16
under Section 6 of this Act; 17
(b) By January 1 after its establishment, develop an interim budget for the 18
operations of the new independent district for the remainder of the fiscal 19
year that will only include the costs of critical operations of the interim 20
board, such as salaries, supplies, offices, and oth er expenses necessary for 21
the interim board to function. The chair of the interim board shall submit 22
the interim budget to the commissioner of education for approval. Within 23
five (5) days, the commissioner shall approve or disapprove the proposed 24
budget. I f the proposed budget is disapproved, the interim board may 25
resubmit an amended budget or appeal the commissioner's decision to the 26
Kentucky Board of Education at its next regular meeting. Once a budget 27
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has been approved, the department shall require the a ltered originating 1
district to transfer the approved amounts to the new independent district in 2
regular installments. If the altered originating district fails to transfer the 3
funds, the amounts shall be deducted from the funds transferred to the 4
altered originating district from the fund to support education excellence in 5
Kentucky. These amounts shall be deducted from the new independent 6
district's assets assigned in subsection (3) of Section 3 of this Act; 7
(c) In a timely manner, the interim board shall: 8
1. Appoint an interim superintendent for the new independent district to 9
assist the interim board in executing the transition. Any contract 10
between an interim superintendent and an interim board shall not 11
extend past the deadline for the new independent d istrict to be fully 12
operational established in paragraph (h) of this subsection, but may 13
subsequently be renewed by the board; 14
2. Appoint a secretary and a treasurer for the interim board; and 15
3. Select counsel for the interim board; 16
(d) Upon the direction of the interim board, the interim superintendent shall 17
hire district staff critical for the operations of the interim board, including 18
but not limited to a district finance officer. Notwithstandi ng any statute to 19
the contrary, any hiring or termination made by the interim superintendent 20
prior to the deadline established in paragraph (h) of this subsection shall be 21
subject to ratification by the interim board; 22
(e) By May 1 following the establishme nt of the new independent district, the 23
interim board shall develop a budget for the operations of the district for the 24
following fiscal year. The chair of the interim board shall submit the budget 25
to the commissioner of education for approval. The budget under this 26
paragraph shall be subject to the same provisions as the interim budget in 27
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paragraph (b) of this subsection but shall include additional district staff 1
required for the continued development of district operations; 2
(f) By the second January 1 fo llowing the establishment of the new 3
independent district, the interim board shall: 4
1. Identify one (1) or more schools that the interim board intends to 5
establish within the district at the start of the next school year, the 6
grades and programs to be oper ated within those schools, and the 7
number of staff and the staff positions that will be placed at those 8
schools; and 9
2. Develop a special budget designed to build up the district's operations 10
necessary to provide a minimum school term as defined in KRS 11
158.070 during the following school year. The budget under this 12
subparagraph shall be subject to the same provisions as the interim 13
budget in paragraph (b) of this subsection but shall include funds 14
needed prior to the beginning of the next school year for: 15
a. The hiring of principals and other school staff required for 16
preparations; 17
b. District and school facilities and additional supplies or tangible 18
personal property not provided for in the agreement in 19
subsection (6) of Section 3 of this Act; and 20
c. Contract services that are needed to support district and school 21
operations; 22
(g) Notwithstanding KRS 160.345, upon the authorization by the interim board: 23
1. The interim superintendent shall select and hire the principals for the 24
district's schools, subject to the ratification of the interim board; and 25
2. The principals shall begin hiring school staff for the following school 26
year, with the hiring subject to the ratification of the interim 27
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superintendent; and 1
(h) The second July 1 following the establishment of t he new independent 2
school district shall be the deadline for the district to be fully operational 3
and the interim board shall ensure the district is prepared to provide full 4
services to the students of the district for the coming school year. 5
(5) An interi m board of a new independent district may request a waiver of the 6
timeline established in subsection (4) of this section to the commissioner of 7
education or designee, except that no waiver shall be granted to alter the deadline 8
established in subsection (4 )(h) of this section. The commissioner or designee 9
shall approve or deny the request within five (5) days of the submission. A denial 10
may be appealed to the Kentucky Board of Education at its next regular meeting. 11
(6) If during the transition established u nder this section the interim board identifies 12
a statute or administrative regulation that inhibits the district's ability to be fully 13
operational as required under subsection (4)(h) of this section, the interim board 14
may submit a request to the Kentucky B oard of Education to temporarily waive 15
the statute or administrative regulation. The request shall identify the specific 16
statute or administrative regulation, the rationale for the needed waiver, and the 17
duration the waiver is needed. The Kentucky Board of Education shall consider 18
the request at its next regular meeting and, if approved, the state board shall 19
identify the duration of the waiver that shall not extend past the conclusion of the 20
first fully operational school year. 21
(7) The interim board may en ter into a contract with another board of education to 22
provide support services for the new independent district, including financial 23
management and payroll services. The contract shall not extend beyond the 24
deadline established in subsection (4)(h) of thi s section. However, the contract 25
may subsequently be renewed by the board. 26
(8) Notwithstanding any other provision of Sections 1 to 6 of this Act, if, prior to the 27
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deadline established in subsection (4)(h) of this section, the interim board 1
determines by a four-fifths (4/5) vote that the establishment of the new 2
independent district is not financially viable, then the chair of the interim board 3
shall submit notice of the vote to the board of education of the altered originating 4
district and the commissioner of education. The commissioner shall establish the 5
timeline and the process for the new independent district and interim board to 6
cease functions and merge back into the originating school district. 7
SECTION 5. A NEW SEC TION OF KRS CHAPTER 160 IS CREATED TO 8
READ AS FOLLOWS: 9
(1) Upon the deadline to become fully functional in subsection (4)(h) of Section 4 of 10
this Act, the new independent district shall be prepared to provide services to the 11
students of the district and th e interim board shall no longer serve as an interim 12
but shall exercise the full authorities of a local board of education, except for the 13
provisions of this section and Section 6 of this Act. 14
(2) For any debts assessed to the new independent district under Section 3 of this Act, 15
any tax levied by the originating district that was authorized for the purposes of 16
paying a specific debt or interest shall continue to be levied and collected within 17
the boundaries of the new independent district by the new indepen dent district's 18
board in accordance with the laws under which the levies were originally made 19
until all the associated obligations of the originating district have been retired. 20
(3) Notwithstanding the requirements under KRS 160.345, the new independent 21
district shall not be required to implement school -based decision making in the 22
district for the first fully operational school year, but shall adopt a process to seek 23
the feedback of parents and school faculty during that year. The district shall be 24
subject to KRS 160.345 with the start of the second fully operational year. 25
SECTION 6. A NEW SECTION OF KRS CHAPTER 160 IS CREATED TO 26
READ AS FOLLOWS: 27
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(1) The interim board shall develop, adopt, maintain, and comply with a tran sition 1
plan for the new independent district that shall guide the transition process for 2
the new independent district until the close of the first fully operational school 3
year. 4
(2) The interim board may request assistance in developing and maintaining the 5
transition plan from the commissioner of education who shall provide expertise 6
and guidance from the Kentucky Department of Education for the interim 7
board's plan. 8
(3) The transition plan shall include, at a minimum: 9
(a) The aspects required in subsection (4) of Section 4 of this Act; 10
(b) An assessment detailing the new independent district's number of school -11
aged residents and projections for the first fully operational school year's 12
total enrollment and enrollment by grade and program; 13
(c) The schools, grades, and programs the district will offer; 14
(d) The facilities that the district will maintain to house those schools, grades, 15
and programs that includes a facilities plan for the first fully operational 16
year; 17
(e) The transportation services the district will provide to students that includes 18
a transportation plan for the first fully operational year; 19
(f) The food services the district will provide to students that includes a food 20
services plan for the first fully operational year; 21
(g) The process the district will follow in conforming to the Individuals with 22
Disabilities Education Act, the Americans with Disabilities Act, and the 23
Rehabilitation Act of 1973; 24
(h) The staffing plan for the district that includes teacher and s taff assignments 25
to specific schools for the first fully operational year; 26
(i) The procedures and advisory bodies established to seek parent and school 27
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faculty feedback during the first fully operational year as required under 1
Section 5 of this Act; 2
(j) Notwithstanding the requirements in KRS 158.070 for a school district 3
calendar committee, establish the school calendar for the first fully 4
operational school year; 5
(k) A district technology plan that provides for the technological needs of the 6
district and schools throughout the transition and the first fully operational 7
school year; 8
(l) Transition services for high school students to ensure that students remain 9
on track to graduate during the transition and the first fully operational 10
school year; and 11
(m) During the first fully operational school year, whether and how the new 12
independent district will offer the following: 13
1. Preschool and kindergarten; 14
2. Career and technical education; 15
3. Student health services; and 16
4. Family resource and youth service centers. 17
SECTION 7. A NEW SECTION OF KRS CHAPTER 157 IS CREATED TO 18
READ AS FOLLOWS: 19
(1) As used in this section, "altered originating school district" and "new 20
independent school district" have the same meanings as in Section 1 of this Act. 21
(2) Notwithstanding any provisions of this chapter to the contrary, when a new 22
independent school district is created under Sections 1 to 6 of this Act, the 23
calculation of the funds from the fund to support education excellence in 24
Kentucky that are due to both the new independent school district and the altered 25
originating school district for the first fully operational school year shall: 26
(a) For purposes of average daily attendance, be based on both districts' 27
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projected enrollment and the originating district's average daily attendance 1
from the prior school year; and 2
(b) For purposes of aggregate daily attendance of students transported, be 3
based on both districts' projected enrollment and a transportation plan 4
submitted to the Kentucky Department of Education by both districts. 5
(3) The calculations required in subsection (2) of this section shall be adjusted by the 6
Kentucky Department of Education in January of the first fully operational 7
school year to reflect the first semester's actual data. 8
(4) Following the first fully operational school year, funding for subsequent years of 9
operation shall be calculated as otherwise provided in this chapter. 10