# Title 15.1 — Elementary and Secondary Education

## Chapter 15.1-12 — Annexation, Reorganization, and Dissolution

### § 15.1-12-01. Definitions.

In this chapter, unless the context otherwise requires:
1. "Annexation" means the alteration of a school district's boundaries through the
removal of real property from one school district and its attachment to another
contiguous school district.
2. "Contiguous" means two or more tracts of real property which share a common point
or which would share a common point but for an intervening road or right of way.
3. "Dissolution" means the process through which a school district ceases to function and
the subsequent attachment of its real property to other school districts.
4. "Reorganization" means the formation of a new school district through the
combination, in whole or in part, of two or more school districts.
5. "State board" means the state board of public school education.
### § 15.1-12-02. Annexation of property to school district - Exchange - Petition -

Requirements.
An individual may petition to have property in one school district annexed to another school
district by an exchange of property with property in a contiguous school district. In order to be
approved:
1. The petitioner must reside within the boundary of the property to be exchanged;
2. The petitioner must obtain the written approval of one qualified elector from each
residence within the boundary of the property referenced in subsection 1;
3. The petitioner must obtain written authorization for the exchange of property from the
owner of the property to be exchanged in the adjacent district, provided that the owner
need not reside on the property to be exchanged;
4. The difference in the taxable valuation of the property involved in the exchange must
be agreed upon by both affected school districts;
5. Each property involved in the exchange is contiguous with the school district to which
it is being annexed; and
6. Except as otherwise provided in this section, the annexation by an exchange of
property under this section is subject to, and meets, all other statutory requirements
regarding annexations.
### § 15.1-12-03. Annexation of property to school district - Eligibility.

Real property may be annexed to a school district provided:
1. The property to be annexed constitutes a single area that is contiguous to the school
district;
2. The property to be annexed does not constitute an entire school district;
3. The annexation petition is signed by two-thirds of the qualified electors residing on the
property to be annexed;
4. The annexation petition is filed with the county superintendent of schools whose
jurisdiction includes the administrative headquarters of the district;
5. A public hearing is held by the county committee or the county committees, as
required in section 15.1-12-05; and
6. The annexation petition is approved by the state board.
### § 15.1-12-04. Annexation of property to school district - Petition requirements.

1. A petition to request the annexation of property must:
a. Be obtained from the county superintendent of schools;
b. Identify all property to be annexed, before circulation;
c. Identify one child whose place of residence is on the property to be annexed and
whose parent has stated an intention to send the child to a public school in the

district receiving the property during the school year following the effective date of
the annexation;
d. Be signed in the presence of the petition carrier; and
e. Be submitted to the county superintendent whose jurisdiction includes the
administrative headquarters of the district.
2. Any person who wishes to add or remove that person's name from the annexation
petition may do so until five p.m. on the last business day before the public hearing by
the county committee; provided the person appears before the county superintendent
to request the action.
3. This section does not apply to annexations involving an exchange of property.
### § 15.1-12-05. Annexation of property to school district - Hearing.

1. Upon receiving a petition for the annexation of property to a school district, the county
superintendent shall schedule and give notice of a public hearing regarding the
annexation.
2. At least twenty-one days before the date of the public hearing, the county
superintendent shall provide notice by certified mail with return receipt regarding the
annexation to each owner of real property to be annexed and publish notice of the
public hearing in the official newspaper of the county in which the major portion of
each affected school district's real property is situated. If no newspaper is published in
the county, the county superintendent shall publish the notice in a newspaper in an
adjoining county in this state.
3. Before the hearing, the county committee shall:
a. Determine the number of qualified electors residing on the property to be
annexed;
b. Ensure that two-thirds of such qualified electors have signed the petition; and
c. Ensure that all other statutory requirements regarding the petition have been met.
4. At the hearing, the county committee shall accept testimony and documentary
evidence regarding:
a. The value and amount of property held by each affected school district;
b. The amount of all outstanding bonded and other indebtedness of each affected
district;
c. The levies for bonded indebtedness to which the property will be subjected or
from which the property will be exempted, as provided for in section 15.1-12-08;
d. The taxable valuation of each affected district and the taxable valuation under the
proposed annexation;
e. The size, geographical features, and boundaries of each affected district;
f. The number of students enrolled in each affected district;
g. Each school in the district, including its name, location, condition, the grade levels
it offers, and the distance that students living in the petitioned area would have to
travel to attend school;
h. The location and condition of roads, highways, and natural barriers in each
affected district;
i. Conditions affecting the welfare of students residing on the property to be
annexed;
j. The boundaries of other governmental entities;
k. The educational needs of communities in each affected district;
l. Potential savings in school district transportation and administrative services;
m. The potential for a reduction in per student valuation disparity between the
affected districts;
n. The potential to equalize or increase the educational opportunities for students in
each affected district;
o. The potential modification to the property tax obligation of the owners of the
property to be annexed and the concerns of the owners of the property to be
annexed; and
p. All other relevant factors.

5. Following consideration of the testimony and documentary evidence presented at the
hearing, the committee shall make specific findings of fact and approve or deny the
annexation. If the annexation is approved, the county superintendent shall forward all
minutes, records, documentary evidence, and other information regarding the
proceeding and the county committee's decision to the state board for final approval of
the annexation.
6. a. Except as provided in this subsection, the state board shall conduct a hearing
after publication of a notice in the manner required in subsection 2, accept and
consider testimony and documentary evidence regarding the proposed
annexation, make specific findings, and approve or deny the annexation.
b. If no opposition is presented to the county committee at the hearing and the
county committee approves the annexation, the state board may review the
record of the county committee and give final approval to the annexation without
holding its own hearing.
7. If the school districts involved in a proposed annexation include property in more than
one county, but the major portion of each district's property is in the same county, the
county committee of that county shall consider the annexation petition.
8. If the school districts involved in a proposed annexation are situated in more than one
county and the major portion of each district's property is not in the same county, the
county committees of those counties encompassing the major portion of each school
district shall jointly consider the annexation petition. The county committees shall vote
separately on whether to approve the annexation.
9. If the state board denies the annexation, another petition involving any of the same
property may not be submitted to the county committee for a period of three months
after the state board's denial. A petition involving any of the same property cited in the
original petition may not be considered by the state board more than twice in a
twelve-month period.
10. Regardless of how many county committees consider the annexation, the decision
may be appealed to the state board.
11. Each annexation must receive final approval from the state board.
12. The county superintendent with whom the petition has been filed shall forward all
minutes, records, documentary evidence, and other information regarding the
annexation, and the county committee's decision to the state board for final approval
or for consideration of an appeal.
13. A decision of the state board with respect to an annexation petition may be appealed
to the district court of the judicial district in which the property to be annexed is located.
### § 15.1-12-06. Annexation of property to school district - Effective date.

Annexations under this chapter become effective on July first following final approval by the
state board.
### § 15.1-12-07. Transfer of real property upon annexation, reorganization, or dissolution.

The legal title to all real property owned by a school district and annexed to another school
district, included in a reorganized district, or subjected to dissolution, vests in the board of the
reorganized school district or of the district to which the property is annexed or attached on the
effective date of the reorganization, annexation, or dissolution. If the reorganized district or
district to which the property is annexed or attached includes less than the whole of the former
district, legal title to the real property of the former district vests in the board of the school district
in which the property is situated on the effective date of the reorganization, annexation, or
dissolution. If the real property of a dissolved district is sold, exchanged, or donated to another
political subdivision pursuant to section 15.1-12-27, legal title to the real property vests in the
political subdivision to which the real property was sold, exchanged, or donated on the effective
date of the dissolution. A certificate prepared by a licensed attorney, citing the legal description
of the property and stating that the property has become annexed, attached, or reorganized with
another school district, or sold, exchanged, or donated to another political subdivision, must be
recorded in the office of the recorder of the county in which the property is located.

### § 15.1-12-07.1. Voluntary transfer of property to school district - Hearing.

1. The boards of two school districts may initiate a voluntary transfer of property between
the districts if each board:
a. Votes to pursue the transfer;
b. Votes to approve the proposed adjustment of the district boundaries; and
c. Files with the county superintendent a document evidencing compliance with this
subsection.
2. Upon receiving the requisite document from the board of each school district, the
county superintendent shall:
a. Forward a copy of the document to the county committee;
b. Schedule a public hearing regarding the proposed transfer of property to be held
within sixty days after the date of filing; and
c. Give notice of the public hearing regarding the proposed transfer of property to
the affected property owners by registered mail and publish notice of the public
hearing in the official newspaper of the county in which the major portion of each
affected school district's real property is situated, at least fourteen days before the
date of the hearing.
3. At the public hearing, the county committee shall consider:
a. The value and amount of property held by each school district affected by the
proposed transfer of property;
b. The amount of all outstanding bonded and indebtedness of each affected school
district;
c. The taxable valuation of each affected school district and the taxable valuation
under the proposed transfer of property;
d. The size and boundaries of each affected school district before and after the
proposed transfer of property;
e. The number of students enrolled in each affected school district before and after
the proposed transfer of property; and
f. Any other relevant factors.
4. Following the public hearing, the county committee shall approve or deny the property
transfer. If the property transfer is approved, the county superintendent shall forward
all minutes, records, documentary evidence, and other information regarding the
proceeding and the county committee's decision to the state board for final approval of
the property transfer. If the property transfer is denied, the boards jointly may appeal
the decision to the state board.
5. The state board shall conduct a hearing, consider testimony and documentary
evidence regarding the proposed property transfer, make specific findings, and
approve or deny the property transfer. If no opposition is presented at the hearing held
by the county committee and the committee approves the property transfer, the state
board may review the record of the county committee and give final approval to the
property transfer without holding a hearing.
6. If a proposed property transfer includes property in more than one county, the county
committee of the county in which the major portion of property to be transferred is
located has jurisdiction over the public hearing.
7. Any property transfer approved by the county committee and the state board becomes
effective on July first following the approval.
### § 15.1-12-08. Payment of school district levies after annexation or dissolution.

1. Property annexed or attached to the receiving school district is subject to all of the
receiving school district's levies, except those to retire bonded debt existing before the
effective date of the annexation or dissolution. The county committee and the state
board in approving the annexation or dissolution, however, may require that the
property be subject to the receiving school district's levies that are required to retire
bonded debt existing before the effective date of the annexation or dissolution.
2. Property annexed to a receiving school district is not subject to any levies of the school
district from which it was detached, except those to retire bonded debt existing before

the effective date of the annexation. The county committee and the state board in
approving the annexation, however, may exempt the property from the levies of the
school district from which the property was detached which are required to retire
bonded debt existing before the effective date of the annexation.
### § 15.1-12-09. School district reorganization - Initiation of a reorganization plan.

1. In order for two or more contiguous school districts or contiguous portions of two or
more school districts to initiate a reorganization process, the board of each
participating school district must:
a. Vote to pursue the reorganization;
b. Prepare a reorganization plan;
c. Approve the reorganization plan; and
d. Submit the plan to the county superintendent having jurisdiction over the major
portion of property in each participating school district.
2. Submission of a reorganization plan to the county superintendent after July 31, 2001:
a. Renders an annexation petition involving any real property that is included in the
reorganization plan void, unless the annexation has already been approved by
the state board; and
b. Prohibits the acceptance of a new annexation petition involving any real property
that is included in the reorganization plan, until all reorganization proceedings
have been completed.
### § 15.1-12-09.1. Reorganization plan - General fund mill levy.

A reorganization plan may provide that the general fund mill levy applicable to property in
those participating districts having a general fund mill levy that is lower than the proposed
general fund mill levy for the reorganized district may be raised incrementally, over a period not
to exceed five years, to the level proposed for the reorganized district.
### § 15.1-12-10. School district reorganization - Contents of plan - Public hearing -

Testimony and evidence.
1. The reorganization plan required by section 15.1-12-09 must:
a. Include a map showing the boundaries of each participating district and of the
proposed new district;
b. Include the number of students enrolled in each participating district during the
current school year and during the ten preceding school years;
c. Include projected student enrollments for the ensuing ten years;
d. Include the location and condition of all school buildings and facilities in each
participating district and intended uses for the buildings and facilities;
e. Address planned construction, modification, or improvement of school buildings
and facilities located within the boundaries of the new district;
f. Address planned course offerings by the new district;
g. Include the planned administrative structure of the new district and the number of
full-time equivalent personnel to be employed by the new district;
h. Include the planned number of members who will constitute the board of the new
district and the manner in which the members are to be elected;
i. Address plans regarding student transportation;
j. Identify other governmental entities, including multidistrict special education units
and area career and technology centers, which may provide services to the new
district;
k. Include the taxable valuation and per student valuation of each participating
district and the taxable valuation and per student valuation of the new district;
l. Include the amount of all bonded and other indebtedness incurred by each
participating district;
m. Include the current budget for each participating school district together with:
(1) The district's estimated ending fund balance; and

(2) A list of the district's anticipated expenditures for goods and services,
whether in a single transaction or in multiple transactions, if the total value of
the goods or services exceeds three thousand dollars, provided the
requirements of this paragraph do not extend to salaries, benefits, or other
compensation paid or payable to school district personnel;
n. Address the planned disposition of all property, assets, debts, and liabilities of
each participating district, taking into consideration section 15.1-12-18;
o. Include a proposed budget for the new district and a proposed general fund levy
and any other levies, provided that tax levies submitted to and approved by the
state board as part of a reorganization plan are not subject to mill levy limitations
otherwise provided by law;
p. Include the official name of the new district, which must include the phrase
"school district" or "public school district" and which may include no more than
two additional words;
q. Include the number of the new district, as assigned by the superintendent of
public instruction; and
r. Include any other information that the participating school districts wish to have
considered by the county committee or the state board.
2. Upon receiving a reorganization plan, the county superintendent shall schedule and
give notice of a public hearing regarding the plan. If the school districts involved in a
reorganization plan include property in more than one county, but the major portion of
each district's property is in the same county, the county committee of that county shall
consider the reorganization plan. If the school districts involved in a reorganization
plan are situated in more than one county and the major portion of each district's
property is not in the same county, the county committees of those counties
encompassing the major portion of each school district shall jointly consider the
reorganization plan.
3. The county superintendent shall publish the notice in the official newspaper of the
county at least fourteen days before the date of the hearing.
4. If no newspaper is published in the county, the county superintendent shall publish the
notice in the official newspaper of an adjoining county in this state.
5. Before the hearing, the county committee shall review the reorganization plan and
ensure that all statutory requirements have been met.
6. At the hearing, the county committee shall accept testimony and documentary
evidence regarding the reorganization plan.
7. Following consideration of the testimony and documentary evidence presented at the
hearing, the committee shall approve or deny the reorganization plan.
8. If the plan is approved by at least one county committee, the county superintendent
shall forward all minutes, records, documentary evidence, and other information
regarding the proceeding, and the county committee's decision, to the state board for
final approval. The state board shall publish notice of its meeting at which it will
consider the reorganization plan in the official newspaper of the county at least
fourteen days before the date of the meeting. If no newspaper is published in the
county, the state board shall publish the notice in the official newspaper of an adjoining
county in this state.
9. To become effective, a reorganization plan must meet all statutory requirements and
must receive approval by both the state board and a majority of electors residing within
each school district.
### § 15.1-12-10.1. State board of public school education - Approval of elementary

districts prohibited.
The state board of public school education may not approve any reorganization plan that
would result in the creation of an elementary district.

### § 15.1-12-11. School district reorganization - Approved plan - Special election -

Formation of new district.
1. If the state board approves a reorganization plan, the state board shall notify each
county superintendent of schools having jurisdiction over real property in the proposed
new district. A county superintendent receiving notice under this section shall call a
special election in order that the electors residing within the boundaries of the
proposed new district may approve or reject the reorganization plan. The election must
be held between July first and December thirty-first of the year in which the plan is
approved by the state board. If there are insufficient days left in the year to meet the
notice requirements of this section, the election must be held the following year.
2. If the state board approves a reorganization plan, the state board shall notify job
service North Dakota of the names of the school districts planning to reorganize, the
election date proposed in the reorganization plan, the proposed effective date of the
reorganization, and the proposed name of the new reorganized school district.
3. The county superintendent shall give notice of the election by publishing the time,
date, and place of the election in the official newspaper of the county, at least fourteen
days before the date of the election.
4. The election notice must:
a. State that the election has been called for the purpose of approving or rejecting a
plan to form a new school district;
b. Describe the boundaries of the proposed new district; and
c. Include a statement describing the adjustment of property, debts, and liabilities
proposed in the plan, together with the proposed tax levy.
5. The county superintendent shall appoint judges and clerks of the election. The election
must be conducted in the same manner and the polls must open and close at the
same time as specified for school district elections.
6. The result of the elections must be certified by the participating school boards and
delivered to the county superintendent within three days after the closing of the polls.
7. If a majority of electors residing within each school district vote to approve the
reorganization plan, the county superintendent shall make the necessary adjustments
of property, debts, and liabilities and perform all duties required by law in order to
establish and organize the new school district. The county superintendent shall also
notify job service North Dakota regarding the results of the election and, if the
reorganization is approved, shall indicate the effective date of the reorganization and
the name of the new reorganized school district.
### § 15.1-12-11.1. Reorganization bonus - Eligibility - Distribution.

Repealed by S.L. 2005, ch. 167, § 37.
### § 15.1-12-11.2. Reorganization bonus - Advanced payment.

Repealed by S.L. 2005, ch. 167, § 38.
### § 15.1-12-12. School district reorganization - Vote on issuance of bonds.

1. If the reorganization plan proposes the issuance of bonds under chapter 21-03, the
question of the bond issuance may be voted on at the same election as that for which
approval of the reorganization plan is sought; provided:
a. Each of the school boards involved in the reorganization adopts, by a majority
vote, an identical initial resolution required by chapter 21-03; and
b. All of the terms of chapter 21-03 are complied with, except that if there is a
conflict with section 15.1-12-14 regarding how the election will proceed, the terms
of section 15.1-12-14 prevail.
2. If the reorganization is not approved, the result of the vote on the bond issuance is
void.

### § 15.1-12-13. School district reorganization - Proposal rejection - Revision - New

election.
1. If the electors reject the reorganization plan, the county committee, after a period of
three months from the date of the special election, may hold a public hearing as
provided for in section 15.1-12-10 to consider a revised reorganization plan proposed
by the participating school districts. If the county committee approves a revised plan,
the county superintendent shall submit the revised plan to the state board for approval.
2. If the state board approves the revised plan, it shall notify the county superintendent of
schools. A county superintendent receiving notice under this section shall follow the
procedures set forth in this chapter for calling a special election to approve or reject
the revised plan. If a majority of the electors residing within each school district vote to
approve the revised reorganization plan, the county superintendent shall make the
necessary adjustments of property, debts, and liabilities and perform all duties required
by law in order to establish and organize the new school district.
### § 15.1-12-14. School district reorganization - School boards - Assumption of duties -

Approval of expenditures - Contracts.
1. Upon approval of a reorganization plan by the electors, in accordance with section
15.1-12-11, a school board for the reorganized district must be elected at the next
regular school district election or at a special election called by the county
superintendent of schools for that purpose. The first school board election in a newly
reorganized district is governed by chapter 15.1-09.
2. Members of newly formed school boards representing reorganized districts may not
enter upon the duties of office until the time specified in section 15.1-12-18, except as
provided in sections 15.1-12-15 and 15.1-12-16.
3. Unless otherwise directed by law or by the reorganization plan, between the date on
which the reorganization is approved and the date on which the reorganization
becomes effective, the board of a school district participating in the reorganization
must obtain written consent from the board of every other school district participating
in the reorganization before it:
a. Enters into any new contract, whether oral or written, which financially obligates
the district;
b. Renews any existing contract, whether oral or written, which financially obligates
the district; or
c. Purchases any goods or services, whether in a single or in multiple transaction, if
the total value of the goods or services exceeds three thousand dollars, provided
the requirements of this subdivision do not extend to salaries, benefits, or other
compensation paid or payable to school district personnel.
### § 15.1-12-15. School district reorganization - School board - Duties.

1. The board of a reorganized school district established under this chapter shall
negotiate with the district's teachers and may contract with the teachers'
representative organization prior to the effective date of the reorganization.
2. Upon the completion of negotiations and the signing of a negotiated agreement under
subsection 1, the board may offer contracts of employment to individual teachers and
establish a time certain by which the individual teachers must accept or reject the
offers.
3. If by five p.m. on July first of the year the reorganized district begins operations, a
negotiated agreement has not been entered between the board and the teachers
pursuant to statute, no teacher employed by the board may receive less in salary and
benefits than that teacher received for the preceding school year. For purposes of this
section, "salary and benefits" means salary, insurance benefits, teachers' fund for
retirement contributions, personal leave, sick leave, accumulated sick leave,
extracurricular salary, reduction-in-force policy, grievance procedures, and recall
procedures.

4. On or before February first of the year in which the reorganization becomes effective,
the board of the reorganized school district shall hold a public hearing to present the
curriculum, course offerings, and staff positions to be available during the coming
school year. The board shall publish notice of the hearing in the official newspaper of
each county having land in the reorganized district, at least fourteen days before the
date of the hearing.
5. By five p.m. on April fifteenth of the year in which the reorganization becomes
effective, the board of the reorganized school district shall notify in writing each
teacher employed by the districts being reorganized, whether or not the teacher will be
offered a contract of employment with the reorganized district.
### § 15.1-12-16. School district reorganization - Issuance of bonds - Procedure.

Before a reorganization is effective, the board of a reorganized school district established
under this chapter may proceed in accordance with chapter 21-03 to issue bonds for purposes
specified in that chapter if the bond issuance is provided for by the approved reorganization
plan.
### § 15.1-12-16.1. Reorganization plan - Building fund levy.

The reorganization plan required by section 15.1-12-09 may propose the inclusion of up to
ten mills as a building fund levy. If the reorganization plan is approved by a majority of electors
residing within the boundaries of the proposed new district, the building fund levy becomes
effective, notwithstanding any other voter approval requirement in section 57-15-16.
### § 15.1-12-17. School district reorganization - Elementary schools.

An elementary school in existence at the time a reorganization becomes effective may be
closed upon approval of the board. Unless otherwise directed by the superintendent of public
instruction, a school closed under this section may be reopened only upon resolution of the
school board and only at the beginning of a school year that follows by at least ninety days the
date of the school board's closure vote.
### § 15.1-12-18. School district reorganization - Approval of plan - Effective date - Transfer

of all property.
A reorganization plan takes effect on the first day of July following its approval by the voters.
Within thirty days from the effective date of the reorganization, personnel from school districts
incorporated in whole or in part into a reorganized district shall turn over to the board of the
reorganized district all property and assets as required by the approved reorganization plan.
Unless otherwise provided, debts, obligations, and liabilities of the districts or parts of districts
incorporated into the reorganized district become the debts, obligations, and liabilities of the
reorganized district.
### § 15.1-12-18.1. Reorganizing school districts to contact job service North Dakota -

Liability of new reorganized school district for reimbursement of unemployment
compensation benefits paid.
The reorganizing school districts shall contact job service North Dakota for its estimation of
the new reorganized school district's potential obligation to job service North Dakota for
reimbursement of unemployment compensation benefits that could potentially be paid by job
service North Dakota to employees of the reorganizing school districts. The new reorganized
school district shall reimburse job service North Dakota for unemployment compensation
benefits paid by job service North Dakota to former employees of the school districts which
reorganized and for which the reorganizing school districts would have been liable, including
any delinquent reimbursement payments.
### § 15.1-12-19. School district reorganization - Sale or removal of school buildings.

The board of a reorganized district may sell or move a school building located in the district.
If a petition calling for the sale of a school building is signed by a majority of the qualified

electors residing within the boundaries of a former school district now wholly located within the
boundaries of the reorganized district, and is submitted to the board, the board shall sell the
building. If the petition calls for the board to move the building, the board shall move the building
to the location designated in the petition. The board shall deposit proceeds of the sale in either
the district's general fund or the building fund. If the purchaser or recipient of the building is a
political subdivision of this state, the board, upon a unanimous vote, may sell the building for
less than its fair market value.
### § 15.1-12-20. School district reorganization - Cost of elections.

If the electors reject a reorganization plan, the cost of the election must be borne by each
school district that had real property included in the proposed district. The percentage of the
total cost for which each district is obligated is the same as the percentage that the district's real
property included in the proposed reorganized district bears to the total amount of real property
in the proposed reorganized district. If the electors approve a reorganization plan, the cost of the
election is borne by the newly reorganized district.
### § 15.1-12-21. School district reorganization - Changes in plan.

1. All provisions of a reorganization plan, except those relating to boundaries and
geographic voting areas, may be changed upon the concurrence of a majority of the
qualified electors voting on the question. The question may be placed before the
voters at a regular or special election upon a motion of the school board and shall be
placed before the voters upon receipt by the board of a petition signed by at least:
a. Twenty-five percent of the qualified electors residing in the district, if the
population of the district, as determined by the county superintendent, is less than
twenty-five qualified electors;
b. Twenty percent of the qualified electors residing in the district, if the population of
the district is at least twenty-five but not more than four thousand; or
c. Fifteen percent of the qualified electors residing in the district, if the population of
the district is greater than four thousand.
2. Notwithstanding the provisions of subsection 1, if a school district has been
reorganized for at least ten years, the boundaries of geographic voting areas may be
changed upon the concurrence of a majority of qualified electors voting on the
question.
3. By resolution, the board in a reorganized district may change to at large voting for
school board members if there is a variance of more than ten percent in the population
between any of the district's established geographic areas with resident candidates.
### § 15.1-12-22. School district reorganization - Board - Powers after five years -

Exceptions.
1. Beginning five years after the effective date of the reorganization, the board of a
reorganized district may exercise all powers granted to a school board by law,
regardless of limitations contained in the district's reorganization proposal.
2. Notwithstanding subsection 1, the board of a reorganized district may change
geographic voting areas only in accordance with section 15.1-12-21.
### § 15.1-12-23. School district reorganization - Proportionate tax rate on agricultural

property.
A school district that for school purposes imposed on agricultural property a proportionate
tax rate different from the school district levy on other taxable property, as permitted by repealed
sections 15-53.1-37 and 15-53.1-38 on December 31, 1984, shall continue to levy the
proportionate tax rate unless the school board is directed, by a majority of the district's qualified
electors voting on the question, to discontinue the proportionate tax rate. No other school board
may impose a proportionate tax rate on different classes of property within the district.

### § 15.1-12-24. Nonoperating school district - Reorganization or dissolution.

A school district that ceases to provide educational services within the district must become,
within one year, through a process of reorganization or dissolution, part of a district operating an
approved school. If a school district affected by this section has not become part of a district
operating an approved school within the prescribed time limit, the school district must be
dissolved. This section does not apply to military installation school districts.
### § 15.1-12-25. Nonoperating school district - Transportation.

The school board of the district to which a nonoperating district is attached shall provide
transportation to students residing within the boundaries of the attached land in the same
manner that transportation is provided to all other students in the district.
### § 15.1-12-26. Dissolution of school district - Grounds.

1. A county committee shall initiate proceedings to dissolve a school district and attach
the property to other operating high school districts in the same county, or to a
non-high school district in the same county if there are no high school districts in the
same county adjacent to the district being dissolved, when it is notified in writing by the
county superintendent of schools whose jurisdiction includes the administrative
headquarters of the district that:
a. The district is financially unable to effectively and efficiently educate its students;
b. The district has not operated a school as required by section 15.1-12-24; or
c. A school board has determined that dissolution is in the best interest of its
students.
2. Except as provided in subsection 3, a county committee shall initiate proceedings
under section 15.1-12-27 to attach real property to an operating high school district in
the same county, or to a non-high school district in the same county if there is no high
school district in the same county adjacent to the district being dissolved, when it is
notified in writing by the county superintendent that:
a. Real property has been severed from its school district by the expansion of a city
and the severed portion is not contiguous with its district; or
b. There exists real property that does not belong to a school district.
3. If a school district reorganization plan which does not include all real property in a
district is approved by the electors, the county committee shall, within forty-five days
after the election, hold a hearing under section 15.1-12-27 to attach the remaining
property to one or more operating high school districts in the same county, or to
non-high school districts in the same county if there are no high school districts in the
same county adjacent to the district being dissolved.
4. Subject to state board approval under section 15.1-12-27, a county committee that has
initiated proceedings to dissolve a school district under this section may sell,
exchange, or donate property or assets of the dissolving district to another political
subdivision for less than fair market value provided the dissolving district has sufficient
property and assets remaining to satisfy the requirements of sections 15.1-12-28 and
15.1-12-28.1.
5. Receipt of notice by a county committee under this section:
a. Renders an annexation petition involving any real property in the district void,
unless the annexation has already been approved by the state board; and
b. Prohibits the acceptance of a new annexation petition involving any real property
in the district until all dissolution proceedings have been completed.
6. One or more annexation petitions may not be used to annex all of the real property in
a school district to surrounding school districts.
### § 15.1-12-26.1. Dissolving school district to contact job service North Dakota.

Before the hearing before the county committee, the dissolving school district shall contact
job service North Dakota for its estimation of the school district's potential obligation to job

service North Dakota for reimbursement of unemployment compensation benefits that could
potentially be paid by job service North Dakota to school district employees.
### § 15.1-12-27. Dissolution of school district - Notice - Hearing - Order of attachment.

1. The county superintendent shall schedule and give notice of a public hearing
regarding the dissolution of the district and the subsequent attachment of the property
to other high school districts in the same county, or to non-high school districts in the
same county if there are no high school districts in the same county adjacent to the
district being dissolved. The county superintendent shall publish the notice in the
official newspaper of each county that encompasses property in the dissolving district
and in the official newspaper of each county that encompasses property in a high
school district adjacent to the dissolving district, or to non-high school districts in the
same county if there are no high school districts in the same county adjacent to the
district being dissolved, at least fourteen days before the date of the hearing. The
county superintendent shall provide notice of the public hearing to the business
manager of each high school district adjacent to the dissolving district, or to non-high
school districts in the same county if there are no high school districts in the same
county adjacent to the district being dissolved.
2. At the hearing, the board of the dissolving district may propose a particular manner of
dissolution, including the sale, exchange, or donation of property and assets of the
dissolving district to another political subdivision for less than fair market value.
3. The county committee shall consider testimony and documentary evidence regarding:
a. The value and amount of property held by the dissolving school district;
b. The amount of all outstanding bonded and other indebtedness;
c. The distribution of property and assets among the school districts to which the
dissolved district is attached, or to another political subdivision as proposed by
the dissolving district;
d. The taxable valuation of the dissolving district and adjacent school districts and
the taxable valuation of adjacent school districts under the proposed manner of
dissolution;
e. The size, geographical features, and boundaries of the dissolving district and of
adjacent school districts;
f. The number of students enrolled in the dissolving district and in adjacent school
districts;
g. Each school in the dissolving district and in adjacent school districts, including its
name, location, condition, accessibility, and the grade levels it offers;
h. The location and condition of roads, highways, and natural barriers in the
dissolving district and in adjacent school districts;
i. Conditions affecting the welfare of students in the dissolving district and in
adjacent school districts;
j. The boundaries of other governmental entities;
k. The educational needs of communities in the dissolving district and in adjacent
school districts;
l. Potential savings in school district transportation and administrative services;
m. The anticipated future use of the dissolving districts' buildings, sites, and
playfields;
n. The potential for a reduction in per student valuation disparities between the
school districts to which the dissolved district is attached;
o. The potential to equalize or increase the educational opportunities for students
from the dissolving district and for students in adjacent school districts; and
p. All other relevant factors.
4. After the hearing, the county committee shall make findings of fact. Subject to final
approval by the state board, the county committee may order the district dissolved and
its real property or assets:
a. Attached to one or more contiguous, operating high school districts in the same
county;

b. Attached to non-high school districts in the same county if there are no high
school districts in the same county adjacent to the district being dissolved; or
c. Sold, exchanged, or donated to another political subdivision for less than fair
market value provided the dissolving district has sufficient property and assets
remaining to satisfy the requirements of sections 15.1-12-28 and 15.1-12-28.1.
5. Any property ordered attached to other school districts under this section must have at
least one minor residing within its boundaries.
6. The county superintendent shall forward all minutes, records, documentary evidence,
and other information regarding the dissolution proceeding together with a copy of the
county committee's order to the state board for final approval of the dissolution. The
state board shall publish notice of its meeting at which it will consider the dissolution,
in the official newspapers of the counties required for publication under subsection 1,
at least fourteen days before the meeting.
7. The order of dissolution becomes effective July first following approval by the state
board, unless the county committee provides for a different effective date.
8. If the boundaries of the dissolving school district cross county lines, the proceeding to
dissolve the district must be conducted jointly by the county committees representing
counties containing twenty-five percent or more of the dissolving district's taxable
valuation. If, after the hearing, a majority of the county committees are unable to agree
upon an order of dissolution and attachment, the county superintendent of the county
in which the administrative headquarters of the dissolving school district is located
shall notify the state board. The state board shall conduct a public hearing, as required
in this section, and order the dissolution of the district and the attachment of its real
property to adjacent school districts in the manner it deems appropriate. The state
board shall publish notice of the public hearing in the official newspapers of the
counties required for publication under subsection 1, at least fourteen days before the
date of the hearing.
9. If any portion of the order providing for the attachment of real property is suspended or
voided, the order of dissolution is likewise suspended or voided.
10. The state board shall provide a copy of its final findings of fact, conclusions of law, and
order regarding the dissolution to job service North Dakota. If not otherwise included in
the findings of fact, the state board shall also provide job service North Dakota with
information on the distribution and valuation of property from the dissolving district to
the receiving districts.
### § 15.1-12-28. Dissolution of school district - Unobligated cash balance - Distribution.

1. Any unobligated cash balance not exceeding ten thousand dollars must be held in a
separate fund by the auditor of the county having the greatest share of the dissolved
school district's land. The county auditor shall hold the fund for one year after the
effective date of the dissolution. During that year, the county auditor shall accept
assets and pay unresolved debts attributable to the dissolved school district.
2. After one year, the county auditor shall distribute the remaining cash balance as
follows:
a. If the dissolving school district did not have sufficient funds for the reimbursement
account set up under section 15.1-12-28.1, then as much of the remaining cash
balance as would be necessary to pay the estimated obligation to job service
North Dakota must be deposited in the reimbursement account. Unless otherwise
directed by the order of dissolution, any remaining cash balance must be
distributed to the receiving school districts in the same percentage as the taxable
valuation received at the time of the attachment order.
b. If the reimbursement account in section 15.1-12-28.1 was fully funded by the
dissolving school district, the county auditor shall distribute the remaining cash
balance among the school districts to which the real property of the dissolved
district was attached. Unless otherwise directed by the order of dissolution, the
distribution to each shall be the same percentage as the taxable valuation at the
time of the attachment order.

### § 15.1-12-28.1. Dissolving school district to set up reimbursement account for benefit

of job service North Dakota - Liability of receiving school districts if funds are
insufficient.
1. After the dissolution is approved by the state board and after ten thousand dollars is
set aside as provided for in section 15.1-12-28, the school district shall set aside in a
reimbursement account the amount of money estimated by job service North Dakota
to reimburse job service North Dakota for unemployment compensation benefits that
could potentially be paid by job service North Dakota to school district employees, as
indicated in section 15.1-12-26.1. The school district shall set aside that money in a
reimbursement account with the North Dakota school boards association or with the
county auditor and shall notify job service North Dakota of the account's location.
2. The money must be held for two and one-half years from the effective date of the
dissolution and must be used to reimburse job service North Dakota for unemployment
compensation benefits paid by job service North Dakota to former employees of the
dissolved school district for which the dissolved school district would have been liable,
including any delinquent reimbursement payments.
3. After the two and one-half year period, moneys remaining in the account must be
distributed to the school districts that received the dissolving school district's land, in
the same proportion as taxable valuation received by the school districts.
4. If the money in the account is not sufficient to reimburse job service North Dakota for
all unemployment compensation claims paid, then the school districts that received the
dissolving school district's land must pay the balance to job service North Dakota in
the same proportion as taxable valuation received by the school districts.
### § 15.1-12-29. Dissolution of school district - Unobligated cash balance - Tax credits or

refunds - Distribution to another political subdivision.
1. After ten thousand dollars is set aside, as required by section 15.1-12-28, and after the
required amount is deposited in the reimbursement account for job service North
Dakota, as required by section 15.1-12-28.1:
a. Any remaining unobligated cash balance, up to an amount equaling a dissolved
school district's general fund expenditure for the last school year before the
district's dissolution is a credit for real property owners within the boundaries of
the dissolved school district, against taxes levied by the district to which their
property is now attached. If property from the dissolved district is attached to
more than one school district, the percentage of the total credit to which each
eligible real property owner is entitled must equal the percentage that the taxable
valuation of the individual's real property bears to the total taxable valuation of the
dissolved district's property at the time of the attachment order; or
b. The county committee may distribute the remaining unobligated cash balance not
exceeding five hundred thousand dollars to another political subdivision located
partially or wholly within the geographic boundaries of the dissolving school
district. After distributing the funds, the county committee shall distribute any
remaining unobligated cash balance in accordance with subdivision a.
2. Upon approval of the board of county commissioners, any school district providing a
tax credit under subdivision a of subsection 1 may provide a cash refund in lieu of the
tax credit. At the request of the county auditor, the school district holding the
unobligated cash balance available under subdivision a of subsection 1 shall pay to
the county treasurer the amount to be paid to those who own real property within the
dissolved district. The treasurer shall issue the refund to the owner of the property as
shown on the county's assessment list at the time of payment. If there is a lien for
unpaid taxes against the property, the treasurer shall first apply the property owner's
tax credit toward any outstanding balance. Any amount remaining may then be paid to
the property owner. The cash refunds must be calculated proportionately to the total
taxable value of the dissolved district during the last year taxes were levied.
3. After the requirements of subdivision a of subsection 1 have been met, the county
auditor shall distribute any remaining unobligated cash balance among the school

districts to which the real property of the dissolved district was attached. The
percentage of the remaining unobligated cash balance to which each school district is
entitled equals that percentage of the dissolved district's total taxable valuation which
was attached to the receiving school district.
