CO Code § 22-30-114 (2021)
2021 Colorado Code|Title 22 - Education|Article 30 - School District Organization Act of 1992|Part 1 - New or Annexing School District Organization|§ 22-30-114. Requirements for Plan of Organization

  The plan of organization must include, but need not be limited to, consideration of the following:   The educational needs of pupils in the affected school districts, including the convenience and welfare of pupils;    The provision of diverse educational opportunities for students;    Equalization of the educational opportunities provided to students in the affected school districts;    Implementation of the actions required by the state board pursuant to section 22-11-209 (3);  (d.5) The reasons for which the school district was unable to improve its performance sufficiently to avoid removal of accreditation pursuant to section 22-11-209 ;     Facility utilization;    Establishment of boundaries for all existing or new school districts in the plan of organization by legal description;    Equitable adjustment and distribution of all or any part of the properties and cash assets of the school districts whose boundaries may be affected by the creation or dissolution of a school district or by the detachment and annexation of territory. The plan of organization may also provide for equitable adjustment of the liabilities of the school districts, other than bonded indebtedness, at the option of the committee. In considering an equitable adjustment of the assets of such school districts, the committee shall consider the outstanding general liabilities and obligations of the school districts that may be so affected, the number of children attending public school in each such school district, the valuation for assessment of taxable property in each such school district, the amount of outstanding bonded indebtedness of each such school district, the purpose for which such bonded indebtedness was incurred, and the value, location, and disposition of all real properties located in the school districts that may be affected by the creation or dissolution of a school district or the detachment and annexation of territory. In considering an equitable adjustment of the assets of such school districts, the plan of organization may provide for authorization of new bonded indebtedness or assumption of outstanding bonded indebtedness by any school district in such proportions and for such purposes as the committee deems appropriate to equitably adjust and distribute such assets.    Provision of a specific plan of representation for the members of the board of education of any proposed new school district. Each proposed new school district may be subdivided into five or seven director school districts or may have all directors elected at large or may have a combination thereof. The term of office of school directors in each proposed new school district shall be for four years.    Dates for one or more special school district elections to address the following:   Adoption of the final approved plan of organization;    Election of a board of directors if the plan of organization results in the creation of a new school district; except that such plan shall not interfere with the regular biennial election schedule; and    Financial issues, if necessary, including but not limited to an increase in the mill levy, which election shall be held in accordance with the requirements of section 20 of article X of the state constitution;       If the plan of organization results in the creation of a new school district, the estimated maximum increase in the mill levy to be imposed on property included within the new district considering the factors enumerated in section 22-54-106 (2)(c) or (2.1)(e), whichever is applicable. If the plan of organization results in the detachment and annexation of territory between existing school districts, the plan of organization must include the mill levy of the annexing district that will be imposed on the affected territory.    If the plan of organization results in the creation of a new school district, a source of operating funds to be used by the new school district prior to receiving the state share of the total district program, pursuant to the “Public School Finance Act of 1994”, article 54 of this title, on July 1 of the new school district's first budget year. (1.5) The plan of organization shall provide that all school districts affected by the plan of organization shall provide a full twelve-grade education within the boundaries of each affected school district.       If the plan of organization results in the dissolution of a school district which has outstanding bonded indebtedness obligations or liabilities, the plan of organization shall designate a new school district, which includes at least a portion of the dissolved school district, as a successor for the purpose of administering payment of the bonded indebtedness obligations of the dissolved school district, and the board of education of the new school district so designated shall have all the powers, rights, duties, and responsibilities of the board of education of the dissolved school district for administering payment of the outstanding bonded indebtedness obligations and liabilities of the dissolved school district. All revenues which accrue from the tax levies to satisfy said obligations and liabilities, and all interest which may accrue thereto as a result of investments authorized by law, shall be held in trust by the board of education of the new school district so designated for the purpose only of satisfying said bonded indebtedness obligations and liabilities of the dissolved school district.    If the reorganization results in the creation of one or more additional school districts within the boundaries of an existing school district, the plan of organization may include:   Authorization for the existing school district and the new school district or districts to enter into a revenue sharing agreement. The plan of organization shall specify the period of time during which revenue sharing may occur.    Provisions for creation of a joint taxation district as provided in part 2 of this article.       If the plan of organization results in creation of one or more new school districts or alterations of the boundaries of existing school districts, the plan shall ensure that the school district boundaries are not set in such a way as to create any portion of a school district that is not contiguous to the remainder of the school district.     History. Source: L. 92: Entire article R&RE, p. 502, § 1, effective June 1. L. 94: (1)(g) amended, p. 1277, § 1, effective May 22. L. 96: (1) amended and (3) added, p. 53, § 4, effective July 1. L. 97: (1.5) added, p. 77, § 1, effective March 24. L. 98: (1)(d) amended and (1)(d.5) added, p. 989, § 8, effective July 1; (4) added, p. 432, § 3, effective August 5. L. 2009: (1)(d) and (1)(d.5) amended,(SB 09-163), ch. 293, p. 1534, § 24, effective May 21. L. 2020: IP(1) and (1)(j) amended,(HB 20-1418), ch. 197, p. 953, § 34, effective June 30.    Editor's note:   This section is similar to former § 22-30-113 as it existed prior to 1992.   Cross references:   For the legislative declaration in HB 20-1418, see section 1 of chapter 197, Session Laws of Colorado 2020.   ANNOTATION   Analysis     I. GENERAL CONSIDERATION.    II. DISTRIBUTION OF ASSETS.    III. DIRECTOR DISTRICTS.     I. GENERAL CONSIDERATION.   Annotator's note. Since § 22-30-114 is similar to § 22-30-113 as it existed prior to the 1992 repeal and reenactment of this article, relevant cases construing that provision have been included in the annotations to this section.   II. DISTRIBUTION OF ASSETS.   The term “cash assets”, as used in this section, does not mean the same thing as “cash on hand”. Las Animas County High Sch. Dist. v. Raye, 144 Colo. 367 , 356 P.2d 237 (1960).   An item, to be considered as a cash asset for the purpose of reorganization of public school districts in the state, should be something which has a definite and certain present value, equivalent to cash, and the only items which have heretofore been allowed as cash assets, other than cash or marketable securities, are taxes assessed and uncollected, and interest thereon, and these last items were allowed on the theory that the county, having a lien on the property assessed, is assured of their collection. Las Animas County High Sch. Dist. v. Raye, 144 Colo. 367 , 356 P.2d 237 (1960).   In law and in the broadest sense, “property” means “thing owned”, and is, therefore, applicable to whatever is the subject of legal ownership. It is divisible into different species of property, including physical things, such as lands, goods, money; and intangible things, such as franchises, patent rights, copyrights, trademarks, trade-names, business good will, rights of action, etc. In short, it embraces anything and everything which may belong to a man and in the ownership of which he has a right to be protected by law. Las Animas County High Sch. Dist. v. Raye, 144 Colo. 367 , 356 P.2d 237 (1960).   “Properties and cash assets” include uncollected tax revenue. The terms “cash assets” and “property”, as used in this section, are sufficiently broad to authorize redistribution of all assets of reorganized districts, including uncollected tax revenue. Las Animas County High Sch. Dist. v. Raye, 144 Colo. 367 , 356 P.2d 237 (1960).   It is inconceivable that the general assembly intended otherwise. The general assembly has created a comprehensive plan for the reorganization of public school districts in the state, and it is inconceivable that it would authorize the creation of such a plan, and, at the same time, fail to provide that the assets of the old districts could be distributed to the new ones. Las Animas County High Sch. Dist. v. Raye, 144 Colo. 367 , 356 P.2d 237 (1960).   The provisions in a reorganization plan for the distribution of the “properties and cash assets”, having been phrased in the terminology of this section, provide a comprehensive scheme for the distribution of all assets of the district, including the uncollected tax revenues. Las Animas County High Sch. Dist. v. Raye, 144 Colo. 367 , 356 P.2d 237 (1960).   III. DIRECTOR DISTRICTS.   The legislative intent is that each district have one of its own residents as a director. Sch. Dist. No. 1 v. Sch. Planning Comm., 164 Colo. 541 , 437 P.2d 787 (1968).   There should be substantial equality of population between districts. It would seem to follow that the manifest legislative intent that each district elect one of its own residents as director requires substantial equality of population between the director districts so that no one director district has a disproportionate representation on the school board. Sch. Dist. No. 1 v. Sch. Planning Comm., 164 Colo. 541 , 437 P.2d 787 (1968).   Where there is an unjustified disparity between the population of the districts and thirty-one percent of the population can control a majority of the board, the legislative intent is obviously frustrated and that part of the plan is illegal and void. Sch. Dist. No. 1 v. Sch. Planning Comm., 164 Colo. 541 , 437 P.2d 787 (1968).   In § 22-11-110 the general assembly expressly contemplated changes in director district boundaries to correct disparities of population. Sch. Dist. No. 1 v. Sch. Planning Comm., 164 Colo. 541 , 437 P.2d 787 (1968).   Disparity does not nullify the entire reorganization scheme. The creation of the director districts' boundaries within the district constitutes but a minor element within a broad scheme to improve education within the reorganized school district and nullification of the invalid apportionment does not eviscerate the entire scheme, and the reorganized school district can continue to function subject only to a correction of the imbalance noted. Sch. Dist. No. 1 v. Sch. Planning Comm., 164 Colo. 541 , 437 P.2d 787 (1968).   A candidate residing in and nominated from a subdistrict, but elected by votes of electors of the entire district, is properly elected. Berni v. Cook, 153 Colo. 444 , 386 P.2d 588 (1963).