1. (1) A new school district may be created from one or more existing school districts, as provided in this chapter.

2. (2) The process to create a new school district may be initiated:

   1. (a) through a citizens' petition in accordance with Section 53G-3-301.1;
   2. (b) at the request of a municipality within the boundaries of the school district in accordance with Section 53G-3-301.3; or
   3. (c) at the request of interlocal agreement participants in accordance with Section 53G-3-301.4.

3. (3) A request or petition under Subsection (2) may not form a new school district unless the new school district boundaries and the reorganized new school district boundaries:

   1. (a) are contiguous;
   2. (b) do not create an isolated area, as defined in Section 53G-3-102; and
   3. (c) include the entire boundaries of each participant municipality or town, unless the excluded portion of the municipality or town is not within the divided school district.
4. (4) For each new school district, each county legislative body shall comply with the notice and plat filing requirements of Section 53G-3-203.
5. (5) No later than July 1 of the second year following the inaugural local school board election of the new and reorganized new school districts, each new school district and each reorganized new school district shall reimburse the municipalities in which the school districts are located for any legal or administrative costs the municipality incurs relating to compliance with Sections 53G-3-202, 53G-3-203, 53G-3-301, 53G-3-301.3, and 53G-3-301.4.

6. (6) On January 1 of each of the first and second years following the local school board election for new and reorganized new school districts following the division of a school district, the relevant divided district shall provide to each relevant new and reorganized new school districts, the greater of the following amounts, distributed based on student population in the new and reorganized new school districts, using the most recent October student count:

   1. (a) 1% of the divided district's total WPU funding; or
   2. (b) $60 per student.

7. (7) An inadequacy of a feasibility study, as defined in Section 53G-3-102, may not be the basis of a legal action or other challenge to:

   1. (a) an election for voter approval of the creation of a new school district; or
   2. (b) the creation of the new school district.

8. (8) Notwithstanding the creation of a new district as provided in this part:

   1. (a) a new school district and a reorganized new school district may not begin to provide educational services to the area within the new school district and reorganized new school district until July 1 of the second calendar year following the local school board election date as described in Section 53G-3-301.1, 53G-3-301.3, or 53G-3-301.4; and
   2. (b) the divided school district shall continue, until the time specified in Subsection (8)(a), to provide educational services within the entire area covered by the divided school district.

9. (9) A new school district and a reorganized new school district shall enter into a shared services agreement, except if the local school boards of the districts mutually agree to not enter into an agreement, that permits students residing in each school district access to attend a school that serves students with disabilities within or outside of each school district boundary:

   1. (a) for up to five years after the day on which the new school district commences educational services;
   2. (b) for actual costs of services provided to students; and
   3. (c) without affecting services provided to other students.

10. (10) The process described in Subsection (2):

    1. (a) may not be initiated more than once during any two-year period; and
    2. (b) may only be initiated within a divided school district in the year of the allocation date.

Amended by Chapter 33, 2025 General Session