Amendment ASA1-AB400

ASSEMBLY SUBSTITUTE AMENDMENT 1, To 1995 ASSEMBLY BILL 400

January 11, 1996 - Offered by Committee on Education.

AB400-ASA1,1,14 An Act to renumber 121.07 (6) (e) and 121.07 (7) (e); to renumber and amend 117.30 (1), 121.90 (2), 121.905 (3) (a) and 121.905 (3) (b); to amend 67.12 (12) (e) 2., 117.05 (1m), 117.05 (2) (a), 117.05 (4) (a) (intro.), 117.05 (5) (a), 117.05 (8), 117.05 (9) (title), 117.05 (9) (a) (intro.), 117.05 (9) (b), 117.05 (10), 117.14 (1) (b), 117.17 (1) (a), 117.20 (1), 117.22 (2) (a) 1., 121.84 (1) (b) and 121.905 (4); and to create 67.05 (6a) (bg), 67.05 (7) (j), 67.12 (12) (e) 2r., 67.12 (12) (h), 117.05 (4) (d), 117.05 (9) (a) 1. and 2., 117.105, 117.17 (1) (bm), 117.22 (2) (bm), 117.25 (4), 117.30 (1) (b), 121.07 (6) (e) 2., 121.07 (7) (e) 2., 121.78 (2) (bm), 121.78 (2) (br), 121.90 (2) (b), 121.905 (3) (a) 2., 121.905 (3) (b) 2., 121.91 (2m) (e), 121.91 (4) (c) 3. and 121.91 (4) (f) of the statutes; relating to: procedures to create a school district out of the territory of one or more existing school districts and information provided to persons filing a petition for a referendum on the detachment of large territory from one school district and its attachment to another school district.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB400-ASA1, s. 1 Section 1. 67.05 (6a) (bg) of the statutes is created to read:

AB400-ASA1,2,5 67.05 (6a) (bg) For a school district from which territory is detached to create a new school district under s. 117.105, the amounts specified and calculated under par. (b) shall be increased, for the construction of a building or an addition to a building only, by the amount determined as follows:

AB400-ASA1,2,11 1. Determine the number of pupils in each grade level who attended school in the previous school year in a building that was then owned by the school district and has been allocated to another school district by the reorganization and who resided in the previous school year in territory that was not transferred to the other school district. The number shall be the average of such pupils enrolled on the 3rd Friday of September and the 2nd Friday of January.

AB400-ASA1,2,16 2. The department of industry, labor and human relations shall determine for each grade level in which pupils attended school in a building described in subd. 1., the average cost per square foot for, and the average number of square feet per pupil included in, 2 recently constructed school buildings that were designed to serve pupils of that grade level, as selected by that department.

AB400-ASA1,2,18 3. For each grade level, multiply the number determined under subd. 1. by the product of the 2 numbers determined under subd. 2., and total the results.

AB400-ASA1, s. 2 Section 2. 67.05 (7) (j) of the statutes is created to read:

AB400-ASA1,2,25 67.05 (7) (j) An initial resolution adopted by the school board of a school district created by a reorganization under s. 117.105, or adopted by the school board of a school district from which territory is detached to create a school district under s. 117.105, for the purpose of financing any assets or liabilities apportioned to the school district or assets apportioned to another school district under s. 117.105 (1m) or (2m), is not subject to a referendum.

AB400-ASA1, s. 3 Section 3. 67.12 (12) (e) 2. of the statutes is amended to read:

AB400-ASA1,3,22 67.12 (12) (e) 2. Unless the purpose and amount of the borrowing have been approved by the electors under s. 67.05 (6a) or deemed approved by the electors under s. 67.05 (7) (d) 3., the purpose is to refund any outstanding municipal obligation or would not be subject to a referendum as a bond issue under s. 67.05 (7) (cc), (h) or (i), or subd. 2g. or par. (f) or (h) applies, the school district clerk shall, within 10 days after a school board adopts a resolution under subd. 1. to issue a promissory note in excess of $5,000, publish notice of such adoption as a class 1 notice, under ch. 985. Alternatively, the notice may be posted as provided under s. 10.05. The notice need not set forth the full contents of the resolution, but shall state the maximum amount proposed to be borrowed, the purpose thereof, that the resolution was adopted under this subsection, and the place where, and the hours during which, the resolution may be inspected. If, within 15 days after publication or posting, a petition conforming to the requirements of s. 8.40 is filed with the school district clerk for a referendum on the resolution signed by at least 7,500 electors of the district or at least 20% of the number of district electors voting for governor at the last general election, as determined under s. 115.01 (13), whichever is the lesser, then the resolution shall not be effective unless adopted by a majority of the district electors voting at the referendum. The referendum shall be called in the manner provided under s. 67.05 (6a), except that the question which appears on the ballot shall be "Shall .... (name of district) borrow the sum of $.... for (state purpose) by issuing its general obligation promissory note (or notes) under section 67.12 (12) of the Wisconsin Statutes?".

AB400-ASA1, s. 4 Section 4. 67.12 (12) (e) 2r. of the statutes is created to read:

AB400-ASA1,4,2 67.12 (12) (e) 2r. For a school district from which territory is detached to create a new school district under s. 117.105, the amounts specified and calculated under subd. 2g. shall be increased, for the construction of a building or an addition to a building only, by the amount determined as follows:

AB400-ASA1,4,8 a. Determine the number of pupils in each grade level who attended school in the previous school year in a building that was then owned by the school district and has been allocated to another school district by the reorganization and who resided in the previous school year in territory that was not transferred to the other school district. The number shall be the average of such pupils enrolled on the 3rd Friday of September and the 2nd Friday of January.

AB400-ASA1,4,13 b. The department of industry, labor and human relations shall determine, for each grade level in which pupils attended school in a building described in subd. 2r. a., the average cost per square foot for, and the average number of square feet per pupil included in, 2 recently constructed school buildings that were designed to serve pupils of that grade level, as selected by that department.

AB400-ASA1,4,15 c. For each grade level, multiply the number determined under subd. 2r. a. by the product of the 2 numbers determined under subd. 2r. b., and total the results.

AB400-ASA1, s. 5 Section 5. 67.12 (12) (h) of the statutes is created to read:

AB400-ASA1,4,21 67.12 (12) (h) Paragraph (e) 2. does not apply to borrowing by the school board of a school district created by a reorganization under s. 117.105, or by the school board from which territory is detached to create a school district under s. 117.105, for the purpose of financing any assets or liabilities apportioned to the school district or assets apportioned to another school district under s. 117.105 (1m) or (2m).

AB400-ASA1, s. 6 Section 6. 117.05 (1m) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB400-ASA1,5,3 117.05 (1m) Board and appeal panel meetings. The secretary shall set the time and place for meetings of the board under ss. 117.10, 117.105 (2m), 117.12 (5) and 117.132 and for meetings of appeal panels under ss. 117.12 (4) and 117.13.

AB400-ASA1, s. 7 Section 7. 117.05 (2) (a) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB400-ASA1,5,12 117.05 (2) (a) Board. The secretary shall appoint 7 members of the board to perform any review under ss. 117.10, 117.105 (2m), 117.12 (5) and 117.132. The 7 members shall include the secretary or his or her designee on the board, 2 board members from school districts with small enrollments, 2 board members from school districts with medium enrollments and 2 board members from school districts with large enrollments. Any action of the board under this chapter requires the affirmative vote of at least 4 of the 7 members appointed under this paragraph.

AB400-ASA1, s. 8 Section 8. 117.05 (4) (a) (intro.) of the statutes is amended to read:

AB400-ASA1,5,18 117.05 (4) (a) Pending proceedings. (intro.) A reorganization proceeding is pending from the date that a petition is filed under s. 117.105 (1) (a), 117.11 (2) or 117.12 (2) or a resolution is adopted under s. 117.08 (1), 117.09 (1), 117.10 (1), 117.105 (1) (b), 117.13 (2) or 117.132 (2) until the date on which the latest of any of the following occurs:

AB400-ASA1, s. 9 Section 9. 117.05 (4) (d) of the statutes is created to read:

AB400-ASA1,5,25 117.05 (4) (d) Four-year limitation on consideration of creation of a school district. 1. Except as provided in subd. 2., no petition may be filed or resolution adopted for the creation of a new school district under s. 117.105 (1) (a) or (b) before the 5th July 1 following the filing of a petition under s. 117.105 (1) (a) or the adoption of a resolution under s. 117.105 (1) (b) for any reorganization that includes any of the same territory.

AB400-ASA1,6,4 2. The limitation under subd. 1. does not apply if the school board of each affected school district adopts a resolution waiving the limitation. If a school board denies a request for a waiver under this subdivision, the denial may not be appealed under this chapter.

AB400-ASA1, s. 10 Section 10. 117.05 (5) (a) of the statutes is amended to read:

AB400-ASA1,6,13 117.05 (5) (a) Territory in district. All territory within this state shall be included in a school district operating elementary school grades and a school district operating high school grades or in a school district operating both elementary and high school grades. No territory may be detached from a school district unless by the same order it is attached to another school district or included in a new school district created by the order. No territory may be detached from a school district that operates high school grades unless by the same order it is attached to or included in another school district that operates high school grades.

AB400-ASA1, s. 11 Section 11. 117.05 (8) of the statutes is amended to read:

AB400-ASA1,6,20 117.05 (8) Information on reorganization procedures. The department shall prepare a written description of the procedures for school district reorganizations under ss. 117.08 to 117.132 and distribute copies to school district clerks. A school district clerk shall give a copy of the description to any person, upon request, and to any person filing a petition with the clerk under s. 117.08 (3) (a) 2., 117.09 (3) (a) 2., 117.105 (1) (a), 117.11 (2) or (4) (a) 2. or 117.12 (2), at the time the petition is filed.

AB400-ASA1, s. 12 Section 12. 117.05 (9) (title) of the statutes is amended to read:

AB400-ASA1,6,22 117.05 (9) (title) Appeal Board and appeal panel fees.

AB400-ASA1, s. 13 Section 13. 117.05 (9) (a) (intro.) of the statutes is amended to read:

AB400-ASA1,7,3 117.05 (9) (a) (intro.) The department may charge the following persons a fee sufficient to reimburse the department for the costs of the board under ss. 117.10, 117.105 and 117.132:

AB400-ASA1, s. 14 Section 14. 117.05 (9) (a) 1. and 2. of the statutes are created to read:

AB400-ASA1,7,6 117.105 (9) (a) 1. The school boards of the affected school districts under s. 117.105 if they fail to reach agreement under s. 117.105 (1m) (b).

AB400-ASA1,7,8 2. A person who files a petition requesting review by the board under s. 117.105 (2m).

AB400-ASA1, s. 15 Section 15. 117.05 (9) (b) of the statutes is amended to read:

AB400-ASA1,7,16 117.05 (9) (b) The clerk of the school district ordering the dissolution or requesting review shall pay the fee under par. (a) 3. or 4. to the department. The clerk of each affected school district shall pay the fee under par. (a) 1. to the department. The department shall allocate the fee under par. (a) 1. among the school districts from which territory is being detached to create a new school district if there is more than one such school district. The secretary of the board shall forward the fee fees collected under par. (a) 1. and 5. to the department.

AB400-ASA1, s. 16 Section 16. 117.05 (10) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB400-ASA1,7,23 117.05 (10) Secretary to advise. The secretary shall advise and consult with school boards regarding school district organization and reorganization. If, in the secretary's opinion, one or more school districts should be created, altered, consolidated or dissolved, he or she may make recommendations to the school boards of the affected school districts.

AB400-ASA1, s. 17 Section 17. 117.105 of the statutes is created to read:

AB400-ASA1,8,3 117.105 Creation of a school district. (1) Initiation of procedures. Procedures to create a school district from the territory of one or more existing school districts may be initiated by any of the following methods:

AB400-ASA1,8,12 (a) Before July 1 of any year, a written petition requesting the creation of a school district may be filed with the clerk of the school district that has the highest equalized valuation of the affected school districts. The petition shall be signed by at least 20% of the total number of electors residing in the affected school districts and by at least 5% of the number of electors residing in each affected school district. The school district clerk with whom the petition is filed shall immediately send a certified notice of the petition to the school board of each affected school district and to the secretary of the board. The petition shall include the approximate boundaries of the proposed school district.

AB400-ASA1,8,19 (b) Before July 1 of any year, the school board of each school district from which territory will be detached to create the proposed school district may adopt a resolution stating that the school board will consider the creation of the school district. The resolution shall include the approximate boundaries of the proposed school district. The school district clerk of each school board adopting a resolution under this paragraph shall send a certified copy of the resolution to the school boards of each of the other affected school districts and to the secretary of the board.

AB400-ASA1,8,24 (1m) Hearing; boundaries; assets and liabilities. (a) Upon receipt of a petition or notice under sub. (1) (a), or upon the adoption of a resolution and the receipt of copies of resolutions adopted by the school board of each of the other affected school districts under sub. (1) (b), the school board shall hold a public hearing on the proposed reorganization.

AB400-ASA1,9,11 (b) Before the November 1 following the receipt of a petition or notice under sub. (1) (a) or the adoption of resolutions under sub. (1) (b), the school boards of the affected school districts may agree on the precise boundaries of the proposed school district and the apportionment of the assets and liabilities between the affected school districts and the proposed school district according to the criteria under s. 66.03 (2c). The school boards may establish an alternative method to govern the assignment of assets and liabilities as provided in s. 66.03 (2c) (b). In determining the precise boundaries, the school boards may not detach territory from any additional school districts. The clerk of the school district that has the highest equalized valuation of the affected school districts shall notify the board of their agreement or their failure to reach agreement.

AB400-ASA1,9,16 (c) If the school boards of the affected school districts fail to agree on the precise boundaries or on the apportionment of assets and liabilities by November 1 under par. (b), the board shall issue an order doing so by the following March 1. In determining the precise boundaries of the proposed school district, the board may not detach territory from any additional school districts.

AB400-ASA1,9,25 (2) School board action. Before the February 1 following the determination of the precise boundaries of the proposed school district and the apportionment of assets and liabilities under sub. (1m) (b), or before the May 1 following an order issued by the board under sub. (1m) (c), the school board of each affected school district shall adopt a resolution ordering or denying the creation of the school district. The resolution shall state the school board's rationale for ordering or denying the reorganization and include an evaluation of each of the factors specified in s. 117.15. The school district clerk of each school board adopting a resolution under this subsection, either ordering or denying the reorganization, shall, within 5 days after the adoption of the resolution, send a certified copy of the resolution to the school boards of each of the other affected school districts and file a certified copy of the resolution as provided in s. 117.17 (2).

AB400-ASA1,10,5 (2m) Board review. (a) The board shall review a proposed reorganization under this section if any of the following occurs:

AB400-ASA1,10,12 1. The school board of each affected school district issues an order under sub. (2) granting the proposed reorganization, and a petition for board review of the proposed reorganization, signed by at least 10% of the number of electors residing in the territory of the affected school districts that is not within the proposed school district, is filed with the secretary of the board. The petition shall be filed by March 1 following the school board action under sub. (2), or by June 1 following the school board action under sub. (2) if the board issued an order under sub. (1m) (c).

AB400-ASA1,10,19 2. The school board of any of the affected school districts issues an order under sub. (2) denying the proposed reorganization, and a petition for board review of the proposed reorganization, signed by at least 10% of the number of electors residing in each affected school district, is filed with the secretary of the board. The petition shall be filed by March 1 following the school board action under sub. (2), or by June 1 following the school board action under sub. (2) if the board issued an order under sub. (1m) (c).

AB400-ASA1,11,3 (b) Upon receipt of a petition for review under par. (a), the secretary of the board shall immediately notify the school board of each affected school district and the board shall hold a public hearing on the proposed reorganization. After the hearing and after consulting with the school boards of the affected school districts, but before July 1, the board may modify the boundaries of the proposed school district and the apportionment of assets and liabilities between the affected school districts and the proposed school district unless the board determined the boundaries and apportionment under sub. (1m) (c). The board may not modify the boundaries by detaching territory from any additional school districts.

AB400-ASA1,11,10 (bm) If the board modifies the boundaries or the apportionment of assets and liabilities under par. (b), it shall immediately notify the school board of each affected school district, and before August 15, the school board of each affected school district may proceed under sub. (2) to issue an order either granting or denying the proposed reorganization, as modified by the board. The board shall then proceed under par. (c) without the filing of a new petition under par. (a) but may not issue an order under par. (c) before August 21.

AB400-ASA1,11,17 (c) By October 1 following receipt of a petition for review under par. (a), the board shall issue an order either granting or denying the proposed reorganization. The order shall state the board's rationale and include an evaluation of each of the factors specified in s. 117.15. The board may overturn the decision of the school boards only if it finds that the school boards' conclusions regarding the factors specified in s. 117.15 are not supported by the facts or that the school boards did not properly apply these factors.

AB400-ASA1,11,19 (3) Referendum. (a) A referendum shall be held under par. (b) if any of the following occurs:

AB400-ASA1,11,21 1. The school boards of all of the affected school districts grant the proposed reorganization and there is no petition filed for board review.

AB400-ASA1,11,24 2. The school boards of all of the affected school districts grant the proposed reorganization, a petition for board review is filed and the board grants the proposed reorganization.

AB400-ASA1,12,3 3. The school board of one or more of the affected school districts denies the proposed reorganization, a petition for board review is filed and the board grants the proposed reorganization.

AB400-ASA1,12,8 (b) If a referendum is required under par. (a), the board shall immediately notify the school boards of each of the affected school districts and the clerk of each city, village or town, any part of which is contained within an affected school district. The referendum shall be held in the territory of the school district proposed to be created by the reorganization.

AB400-ASA1,12,17 (4) Order of reorganization if approved at referendum. If a majority of the votes cast in the territory of the school district proposed to be created by the reorganization is in favor of the creation of the proposed school district, at the time of canvassing the returns the school boards of the affected school districts shall make and file an order of school district reorganization under s. 117.17 (2). The reorganization shall take effect on the following July 1 unless the school board of the newly created school district adopts and files a resolution, as provided in s. 117.17 (2), stating that the reorganization shall take effect on the 2nd July 1 following the order of reorganization.

AB400-ASA1, s. 18 Section 18. 117.14 (1) (b) of the statutes is amended to read:

AB400-ASA1,12,24 117.14 (1) (b) If the order is issued under ss. 117.11 117.105 to 117.132, the appeal shall be filed with the circuit court of any county in which any of the territory proposed to be detached from one school district and attached to, or included in, another school district is located or with the circuit court of any county in which any territory of the school district to which the territory is proposed to be attached, or the school district that is proposed to be created, is located.

AB400-ASA1, s. 19 Section 19. 117.17 (1) (a) of the statutes is amended to read:

AB400-ASA1,13,14 117.17 (1) (a) Every order of school district reorganization under s. 117.08 or, 117.09 or 117.105 that creates a new school district shall state the school districts which are dissolved or from which territory is detached to create the new school district, name the new school district, state the type of school district and the grades to be taught by the new school district pursuant to s. 115.01 (2), (3) and (5), designate the number of school board members under s. 120.01 or 120.41, designate the terms of initial members of the school board under s. 120.02 (3) (a), designate the method of election of school board members under s. 120.06 or 120.42, direct the election of school board members under s. 120.06 or 120.42, insofar as applicable, designate the date of the first election of school board members, as provided under s. 117.22 (2) (b), and fix the time and place for the first annual meeting of the new school district, if one is to be held. The secretary of the board shall give notice of the first annual meeting, if one is to be held, under s. 120.08 (1) (c), and shall designate a person to act as temporary chairperson of the annual meeting until a chairperson is elected.

AB400-ASA1, s. 20 Section 20. 117.17 (1) (bm) of the statutes is created to read:

AB400-ASA1,13,19 117.17 (1) (bm) Every order of school district reorganization under s. 117.105 shall describe the territory of the school districts from which territory is detached to create the new school district, state the school district created by the order and describe the territory of the school district created by the order.

AB400-ASA1, s. 21 Section 21. 117.20 (1) of the statutes is amended to read:

AB400-ASA1,14,2 117.20 (1) If a referendum is required under ss. 117.08 to 117.11, it shall be held on the Tuesday after the first Monday in November following receipt of the petition or adoption of the resolution under s. 117.08 (3) (a), 117.09 (3) (a), 117.10 (3) (a) or 117.11 (4) (a). If a referendum is required under s. 117.105, it shall be held on the Tuesday after the first Monday in the 2nd November following receipt of the petition or adoption of the resolution under s. 117.105 (1).

AB400-ASA1, s. 22 Section 22. 117.22 (2) (a) 1. of the statutes is amended to read:

AB400-ASA1,14,5 117.22 (2) (a) 1. The clerk of the affected school district that has the highest equalized valuation, if an order of reorganization is issued under s. 117.08 or 117.105.

AB400-ASA1, s. 23 Section 23. 117.22 (2) (bm) of the statutes is created to read:

AB400-ASA1,14,9 117.22 (2) (bm) If an order of reorganization is issued under s. 117.105, the first election of school board members shall be held at the spring election following the referendum under s. 117.105 (3).

AB400-ASA1, s. 24 Section 24. 117.25 (4) of the statutes is created to read:

AB400-ASA1,14,12 117.25 (4) Creations. When a school district is created under s. 117.105, all of the following apply:

AB400-ASA1,14,17 (a) Any employe of a school district from which territory is detached by the reorganization who is laid off as a result of the reorganization has priority over other persons for 3 years after the effective date of the reorganization for new positions and vacant positions for which he or she is qualified in the school district that is created by the reorganization.

AB400-ASA1,14,22 (b) Any person who wishes to exercise his or her priority under par. (a) shall notify the school district that is created by the reorganization, in writing, that he or she wishes to be considered for any new position or vacant position and shall include in the notice the address to be used by the school district to notify the person of such positions.

AB400-ASA1, s. 25 Section 25. 117.30 (1) of the statutes is renumbered 117.30 (1) (a) and amended to read:

AB400-ASA1,15,18 117.30 (1) (a) If Except as provided under par. (b), if a school district for 2 or more successive years has failed to operate a school as required by law sufficient classes at each grade level to provide all pupils who reside in the school district an opportunity to attend class at the appropriate grade level, the board shall attach the territory of the school district to one or more school districts that do operate schools so. Within 60 days of the date on which a school district becomes subject to this section, the department shall so notify the school district clerk and the clerk of each municipality in which part of the school district lies. Prior to August 30 of the year in which the school district becomes subject to this section, the board shall issue an order of school district reorganization attaching the school district to one or more operating school districts. Orders issued under this section take effect upon being filed as provided in s. 117.17 (2). The school board of each district to which any territory is attached under this section shall levy and collect a special tax against the property in the territory so attached for such amount as is payable for tuition and transportation, at the time of the attachment, by the school district in which the attached territory was located prior thereto, in the proportion that the equalized valuation of the attached territory bears to the total equalized valuation of the school district in which such territory was located prior to such attachment.

AB400-ASA1, s. 26 Section 26. 117.30 (1) (b) of the statutes is created to read:

AB400-ASA1,16,2 117.30 (1) (b) Before the end of the first school year beginning after the effective date of a reorganization under s. 117.105, the school board of the school district created by the reorganization may request the department to extend the 2-year time period under par. (a) by one year. The department may grant the extension, and may renew the extension for additional one-year periods, if the department determines that the school board has adequate plans and is making adequate progress toward operating sufficient classes at each grade level to provide all pupils who reside in the school district an opportunity to attend class at the appropriate grade level.

AB400-ASA1, s. 27 Section 27. 121.07 (6) (e) of the statutes, as affected by 1995 Wisconsin Act 27, is renumbered 121.07 (6) (e) 1.

AB400-ASA1, s. 28 Section 28. 121.07 (6) (e) 2. of the statutes is created to read:

AB400-ASA1,16,10 121.07 (6) (e) 2. For a school district from which territory was detached to create a school district under s. 117.105, in each of the 4 school years beginning on the July 1 following the effective date of the reorganization under s. 117.105, the amounts under par. (b) and (d) shall be multiplied by 1.1 and rounded to the next lower dollar.

AB400-ASA1, s. 29 Section 29. 121.07 (7) (e) of the statutes, as affected by 1995 Wisconsin Act 27, is renumbered 121.07 (7) (e) 1.