20-3-363. Multidistrict agreements -- fund transfers. (1) (a) The boards of trustees of any two or more school districts may enter into a multidistrict agreement to create a multidistrict cooperative to perform any services, activities, and undertakings of the participating districts, including full joint funding and operation of all programs and services of the participating districts upon the terms and conditions as may be mutually agreed to by the districts subject to the conditions of this section.

(b) A multidistrict agreement may include an agreement through which one district provides culturally rooted instruction aligned to a learning environment for English language learners or an Indian language immersion program to pupils of a district participating in the multidistrict agreement. The costs and other terms of service must be reflected in the multidistrict agreement.

(c) An agreement must include provisions for dissolution of the cooperative, including the conditions under which dissolution may occur and the disposition of any remaining funds that had been transferred to an interlocal cooperative fund in support of the cooperative. An agreement must be approved by the boards of trustees of all participating districts and must include a provision specifying terms upon which a district may exit the multidistrict cooperative.

(2) All expenditures in support of the multidistrict agreement may be made from each participating school district's interlocal cooperative fund. The board of trustees of each participating district of the multidistrict cooperative may transfer funds into the district's interlocal cooperative fund from the district's general fund, budgeted funds other than the retirement fund or debt service fund, or nonbudgeted funds other than the compensated absence liability fund. Transfers to the district's interlocal cooperative fund from the school district's general fund are limited to an amount not to exceed the direct state aid in support of the respective school district's general fund. Transfers from the retirement fund and debt service fund are prohibited. Transfers may not be made with funds restricted by federal law unless the transfer is in compliance with any restrictions or conditions imposed by federal law.

(3) Expenditures from the interlocal cooperative fund under this section may include any expenditures that are considered by the board of trustees of the district to be reasonable and necessary to efficiently and effectively finance the expenditures pursuant to the terms of the multidistrict agreement, not to exceed the total expenditures approved by the board of trustees for the budgeted fund from which the transfer was made, including expenditures pursuant to any budget amendment adopted pursuant to 20-9-165.

(4) The intent of this section is to increase the flexibility and efficiency of school districts without an increase in local taxes. In furtherance of this intent, if transfers of funds are made from any school district fund supported by a nonvoted levy, the district may not increase its nonvoted levy for the purpose of restoring the amount of funds transferred.

(5) (a) Beginning in school fiscal year 2027, school districts that achieve the legislative goal for countywide resource sharing outlined in this subsection (5) must receive a 50% increase in their total quality educator and qualified staff payment as defined in 20-9-306.

(b) The legislative goal for countywide resource sharing is for each school district with a majority of its territory in a county to participate in a countywide multidistrict agreement as specified in this subsection (5). To receive the enhanced incentive, the multidistrict agreement executed by the participating districts must:

(i) include at least all school districts with a majority of their territory within the boundaries of the same county. Provided that at least all school districts in at least one county have entered into a multidistrict agreement under this subsection (5), other school districts located in other counties that participate in the multidistrict agreement must also receive the enhanced total quality educator and qualified staff payment calculated in accordance with subsection (5)(a).

(ii) provide for the joint funding and operation of the participating districts as described in this subsection (5);

(iii) contractually allocate an amount at least equal to each district's general fund direct state aid for the support of joint funding and operations among all participating districts as described in this subsection (5); and

(iv) to the extent of the funds committed, jointly and mutually establish, maintain, budget, and finance the programs of the participating districts identified under this subsection (5). Activities must be in compliance with the accreditation standards of the board of public education and may include the sharing of staff among the participating districts when that is consistent with collective bargaining, if applicable, and when that is determined by the board of trustees of each participating school district to be the most efficient and effective use of district staff. The programs of the participating districts that are mutually administered must include, at a minimum:

(A) administration functions, including budgeting, payroll, human resources, elections, and services provided in support of the board of trustees;

(B) custodial services;

(C) instructional services and support, including remote instruction, selection of textbooks, library and media services, and curriculum development and implementation;

(D) K-12 career and vocational/technical education and work-based learning;

(E) school food services;

(F) software licensing and other information technology;

(G) extracurricular activities;

(H) special education programs; and

(I) transportation for instruction and school activities.

(6) Nothing in this section may be construed to prohibit a district that has entered into a countywide multidistrict agreement from entering into any other multidistrict agreement otherwise meeting the requirements of this section other than subsection (5). Districts participating in a countywide multidistrict agreement from one county may also cooperate with districts from any other county to form multicounty regional multidistrict agreements.

(7) As used in this title, "multidistrict cooperative" means a public entity created by two or more school districts executing a multidistrict agreement under this section with each other or with any other public or private entity participating in the cooperative and complying with the requirements of this section and other laws governing public schools in the state.