1. Definitions. The terms used in this chapter shall be construed as follows, unless a different meaning is clearly apparent from the language or context:

   1. "Cooperative school district" means a district composed of two or more school districts of the state associated together under the provisions of this act and may include either the elementary schools, the secondary schools, or both.

   2. "Elementary school" shall mean all grades from the kindergarten or grade one through grade six, or kindergarten or grade one through grade eight.

   3. "Secondary school" shall mean all grades from grade seven through grade twelve, or grade nine through grade twelve.

   4. "Cooperative school board" shall mean a school board serving a cooperative school district.

   5. "Pre-existing district" shall mean a district or portion of a district which is included within the boundaries of a proposed or established cooperative school district.

   6. "Board" shall mean the state board of education.

   7. "Commissioner" shall mean commissioner of education.

   8. "Establishment" shall mean the date set in the resolution adopted at the organization meeting.

2. Standards. The board shall formulate and adopt a set of minimum standards which all proposed reorganized school districts must meet. Such minimum standards shall include, but are not necessarily limited to the following:

   1. Each cooperative school district shall be as nearly as practicable a natural social and economic community, but may include the territory or school districts in adjoining towns and counties.

   2. Each cooperative school district shall have an adequate minimum taxable valuation.

   3. Each cooperative district shall have a sufficient number of pupils for the formation of a cooperative school district.

3. Formation of Cooperative School Districts.

   1. The board is hereby authorized and empowered to suggest in this state cooperative school districts to provide for the educational needs and services of elementary and secondary school children and youth, to determine and define the boundaries, and to designate said districts by name, number and such other description as it shall deem proper. Any school district desirous of becoming a part of a suggested cooperative school district for a region shall at a duly called annual or special meeting by a majority vote of those present and voting vote to petition the board to become a part of a cooperative school district. One or two representatives from each pre-existing district shall be elected at the petitioning meetings to form an interim committee who shall prepare a financial budget for the operation of the proposed cooperative district. The district clerk shall within ten days after the meeting forward to the board a certified record of the meeting, a certified copy of the warrant articles acted upon at the meeting, and also certification of the posting of the notice of the meeting plus the results of the election to the interim committee. The records of each meeting shall show that a majority of the qualified voters present and voting in each duly called school district meeting are in favor of joining a cooperative school district of the region as approved and laid out by the board. Following a vote by the individual districts of the suggested cooperative school district, the board is empowered to lay out a proposed cooperative school district when a sufficient number of districts of the original proposal have indicated their desire by a majority vote of the qualified voters to become a part of a cooperative school district, and if in the board's judgment the districts so voting would constitute an administrative unit possessing the necessary conditions to make it to the best interests of the region to be so organized. Within ten days after the making and entry of the orders pursuant to this section, the board shall transmit a certified copy thereof to the clerk and to the chairman of the school board of each school district, indicating the territory which is effected by said orders. Each school board shall within ten days after receipt of such orders cause them to be published in a local newspaper or in one commonly circulated in the district.

   2. When the preceding conditions have been met, the board shall fix a time and place for a special meeting of the qualified voters within the proposed cooperative school district. The board shall cause the warning of such meeting with the subject matter of the business to be acted upon to be posted at least fourteen days before the meeting in three public places in each school district wholly or partly within the proposed cooperative school district. In addition to the posting of the warrant, a copy thereof shall be published at least one week before the meeting in a daily or weekly newspaper published within the territory or in such a newspaper generally circulated therein. The expense of posting and publishing of the notice shall be borne equally by the several school districts within the territory, unless a cooperative school district is organized, in which event such expense shall become a charge upon said cooperative school district.

4. Organization Meeting.

   1. Any meeting held for the purpose of organizing a cooperative school district shall be called to order by a qualified voter of the proposed cooperative school district, designated by the board for the purpose. The first order of business shall be the election by a plurality vote of a moderator and of a clerk pro-tem by ballot, who shall be qualified voters of the proposed district. The affirmative vote of a majority of the qualified voters present and voting shall be required on the adoption of the following resolution: "Resolved that cooperative school district ......... (add designation) be organized to provide for the educational needs and services of ......... (add one of the following: (a) all elementary school children, (b) all secondary school youth, (c) all elementary and secondary school children) and that its establishment be effective as of ........." The adoption of this resolution shall be by ballot. During the period from the date of the vote of the organization of the cooperative school district to its official establishment the new cooperative school district shall have all the authority and privileges of a regular school district for bonding purposes, for the construction of school facilities and for such other necessary functions to obtain proper facilities for the provision of a complete program of education. When necessary the school board of the cooperative school district is authorized to prepare a budget and call a special meeting of the voters of the district for the purpose of adopting the budget and to determine the financial appropriation. If the resolution to form the cooperative school district of this section is adopted, then the voters shall proceed to organize in accordance with the provisions of this chapter. If at any such meeting the resolutions regarding the formation of a cooperative school district shall be presented and shall not be adopted, there shall be no further proceedings at such meeting, except a motion to reconsider the question, and no such meeting shall again be called within six months thereafter. If no meeting shall be called to reconsider the question within two years thereafter or if at any such meeting thereafter called the resolution shall again fail of adoption, the order of the board to which the resolution relates shall be deemed null and void and of no further force or effect. The meeting may be adjourned from time to time by a majority vote of the qualified voters present but no such adjournment shall be for a longer period than ten days. A copy of the minutes of the meeting or meetings duly certified by the clerk shall be filed by him with the board, with each union superintendent in whose jurisdiction such school district, or any part thereof, is then or thereafter located, and with the town clerk of each town in which any part of said school district is then or thereafter located.

   2. Election of Officers. The first cooperative school board shall be elected at the organization meeting. Whether the number of members of the cooperative school board shall be five, seven, or nine shall be determined by the voters at this meeting, before the election takes place. The school boards of the pre-existing districts shall make, post and correct a list of the legal voters in the district as supervisors are required to do and such lists shall be checked at the election of officers at this organization meeting. All school board members at this meeting and at subsequent annual district meetings shall be elected so as to insure each school district forming a part of the cooperative district a member of the cooperative school board. Other members shall be elected at large or as determined by the voters. The first cooperative school board shall be elected by ballot by plurality vote of those qualified voters present and voting. The board member receiving the largest number of votes shall be elected for the longest term of office as adopted by the district with other members receiving their term of office in the same manner. Subsequent elections of school board members and the moderator shall be in accordance with the non-partisan ballot system provided for in sections 112 to 120 of chapter 34 of the Revised Laws, as inserted by chapter 22, Laws of 1943.

      1. When the cooperative school board consists of five members, the members thus elected shall take office at once and shall continue to hold office for five, four, three, two and one years, respectively, from the date of meeting. Thereafter one member of such board shall be elected each year for a term of five years.

      2. When the cooperative school board consists of seven members, two members shall be elected for three years, two members for two years, and three members for one year. Thereafter their successors shall be elected each year for terms of three years.

      3. When the cooperative school board consists of nine members, three members shall be elected for three years, three members for two years, and three members for one year. Thereafter their successors shall be elected each year for terms of three years.

      4. Members of the cooperative school board shall serve with or without remuneration as the district shall determine, but they shall be paid their necessary expenses while upon official business.

   3. For purposes of state-wide supervision a cooperative school district shall be a school district.

   4. The interim committee shall include in the organization warrant an article calling for an appropriation for the operation of the proposed cooperative district during the first year and such other items of business as need to be acted upon at the organization meeting.

5. School Board; Powers and Duties. The cooperative school board so elected shall organize at once and proceed to assume its responsibilities and duties with respect to the administration and planning of the new cooperative school district which thereupon comes into official existence, provided, however, that the cooperative board shall have no administrative authority as to the schools in the pre-existing districts until the date of establishment. Thereafter all cooperative school district officers shall assume office at the beginning of the next fiscal year following their election. The cooperative school board shall have the same powers and duties as school boards in school districts as prescribed by chapter 135 of the Revised Laws. Except as provided in this chapter, all the provisions of this chapter or of any other general law relating to or affecting school districts in the state shall apply to cooperative school districts organized as herein provided.

   1. Clerk. The cooperative school board shall appoint annually and fix the salary of the district clerk who shall not be a member of the cooperative school board. The district clerk shall serve also as the clerk of the cooperative school board.

   2. Treasurer. The treasurer of a cooperative school district shall be appointed by the cooperative school board for one or more terms not to exceed five years each and shall not be a member of the cooperative school board and shall receive for his services such sum as the cooperative school board may determine. The treasurer shall, before entering upon the duties of his office, give a bond to the cooperative school district with a surety company authorized to do business within the state in a form approved by the state tax commission, and the premium shall be paid by the cooperative school district. The provisions of chapter 82 of the Revised Laws applicable to uniform accounting by school districts shall apply to cooperative school districts.

6. Powers and Duties of Cooperative School Districts.

   1. Each cooperative school district shall be a body corporate and politic with power to sue and be sued, to acquire, hold and dispose of real and personal property for the use of schools therein, and to make necessary contracts in relation thereto, and have and possess all the powers and be subject to all the liabilities conferred and imposed upon school districts under the provisions of Chapter 138 of the Revised Laws. Whenever a cooperative school district assumes all the functions of a local school district, such local district shall continue in existence to July first, next following its absorption by the cooperative school district, and thereafter such cooperative school district shall be the agent for the payment of all outstanding just debts and obligations of such pre-existing district.

   2. Each cooperative school district shall have the power to borrow money and issue its notes or bonds in conformity with the provisions of chapter 72 of the Revised Laws, "municipal bonds statute," provided however that, no cooperative school district shall incur debt to an amount exceeding five per cent of the total aggregate assessed valuation of such cooperative school district. Permission to exceed this limit, but not in excess of eight per cent may be secured from a board of investigation as set up under the provisions of chapter 5, Laws of 1951, as amended by chapter 9, Laws of 1953.

   3. Whenever only a part of the educational system of a local school district is incorporated in a cooperative school district, such local district shall continue in existence and function as previously, and the cooperative school district shall assume only those outstanding debts and obligations of the local district which pertain to the property acquired by the cooperative school district for use by the cooperative school district and in such case no cooperative school district shall incur debt to any amount exceeding three per cent of the total aggregate assessed valuation of such cooperative school district for elementary not exceeding four per cent for secondary school. Permission to exceed this limit but not in excess of five per cent may be secured from a board of investigation as set up under the provisions of chapter 5, Laws of 1951, as amended by chapter 9, Laws of 1953. However, in no case shall the total debt incurred for school purposes by a local district for its own or that part of the debt of a cooperative school district for which it may be liable exceed eight per cent of the last assessed valuation of said local district.

7. Apportionment of Costs. During the first five years after the formation of a cooperative school district, each pre-existing district shall pay its share of the cost of all capital improvements, based upon the proportion which its adjusted valuation bears to the total aggregate adjusted valuation of the cooperative school district at the time of its formation. Thereafter, such costs shall be apportioned on the basis of the ratio of the adjusted valuation of the pre-existing district to the total adjusted valuation of the cooperative school district at the time the funds therefor are appropriated.

8. Cost of Operation. The cost of operating cooperative schools shall be prorated among the pre-existing districts in accordance with either one of the following ways, except as hereinafter provided, as determined by the majority vote of the cooperative district meeting:

   1. The proportion that its adjusted valuation bears to the total adjusted valuation of the property within the cooperative school district; or

   2. One-half of cost shall be apportioned in proportion to the average daily membership for the preceding School year and one-half shall be apportioned on the adjusted valuation formula above.

9. Taking Over of Property. Whenever a cooperative school district is formed, the property belonging to the pre-existing districts to be used by the cooperative district shall be separately appraised by the state tax commission. At the next annual assessment a tax equivalent to that amount shall be levied upon the several districts composing the cooperative school district in the proportion that the adjusted valuation of each bears to the adjusted valuation of the whole, and there shall be remitted to the taxpayers of each pre-existing district the appraised value of its property. Whenever the board decides the foregoing adjustment will work a hardship on any one or all of the pre-existing districts, it may of its own motion, or upon petition of any ten residents of a pre-existing district provide that such adjustment be made over a period of not exceeding twenty years.

10. Disposal of Property. Whenever any property of a cooperative school district is disposed of, the proceeds thereof shall be credited to each pre-existing district in the same proportion as the costs of making capital improvements are credited.

11. Continuance of Trust Funds. All trust funds held or enjoyed by any pre-existing district shall be held and applied for the same uses and purposes of the cooperative school district where the terms of the trust so permit, and a trust limited to the purposes of a pre-existing district shall be held to be properly applied if applied to the uses of a cooperative school district as agent for the pre-existing district.

12. Budget. On or before March first annually the cooperative school board shall prepare a budget for the ensuing year, after holding at least one public hearing at some convenient place in the district, of which at least seven days notice shall have been given, and said budget shall be posted in a public place in each pre-existing district and given such other publication as said cooperative school board may determine. The provisions of chapter 52 of the Revised Laws, the municipal budget law, shall not apply to a cooperative school district except in a case where said district is composed of pre-existing school districts wholly within one town, which town has adopted said budget law.

13. Meetings, Annual, Special. A meeting of every cooperative school district shall be held annually between March first and April twentieth for the choice of district officers, raising and appropriating money for the support of its schools for the fiscal year beginning July first next, and the transaction of other district business. Special meetings may be called when there is need or occasion therefor. The provisions of chapter 139 of the Revised Laws shall apply to cooperative school district meetings, except that a copy of the warrant shall be posted in a public place in each pre-existing district as well as at the place of meeting.

14. Certification of District Taxes. Within two weeks after the conclusion of any meeting at which money is raised and appropriated, the cooperative school board under the hand of the chairman, certified by the clerk, shall certify in writing to the selectmen of each town wholly or partly included within the cooperative school district the amount of taxes to be raised for educational purposes in each pre-existing school district wholly or partly incorporated in the cooperative school district. The selectmen of each such town shall pay over from time to time such portions of the sums so raised as may reasonably be required by the treasurer of such cooperative school district; but no such payment shall be greater in percentage to the total sum raised by such local district than that of any other local district comprising such cooperative school district. Whenever a cooperative school district assumes all the functions of a pre-existing district, the cooperative board shall also certify to the selectmen the amount to be raised by taxation to meet the outstanding obligations of such pre-existing district including serial notes or bonds of such pre-existing district.

15. State Aid. The state aid to which a cooperative elementary and/or secondary district shall be entitled shall be the total of those shares of the aid to which the pupils attending the cooperative district would have entitled the pre-existing districts, had they remained in the pre-existing districts.

16. Annexation of Territory. Territory shall be annexed to a cooperative school district in the following manner:

    1. When an order annexing territory to a cooperative school district has been made and entered as provided in section 3, the board shall within ten days thereafter cause certified copies of said order to be filed with the school board of the cooperative school district and the school board of each school district affected thereby. Said order annexing territory to the cooperative school district shall become final sixty days after such filing of the certified copies thereof, unless a special meeting of the cooperative school district or of any whole school district being annexed named in this order is called for action on this order pursuant to the Revised Laws, chapter 139, sections 2 and 3.

    2. At a meeting held in an existing cooperative school district, or in a town or special school district, a resolution in substantially the following form shall be presented for the action and determination of the meeting viz: "Resolved that ............. (describe kind of district) school district number ............. (designate district or districts) shall be annexed to cooperative school district number ............. (designate cooperate school district) as provided in the order of the board of education now before this meeting."

    3. If the resolution submitted to the voters as provided in paragraph II of this section shall be defeated, the territory described in the resolution shall not be annexed to the existing cooperative school district, and the said order of the board shall not be or become effective as to said territory. If a meeting, or meetings, shall be held and the resolution submitted shall be adopted, the territory described therein shall thereupon be annexed to the existing cooperative school district.

    4. A resolution described in paragraph II of this section, if defeated, shall not again be presented for action at a school district meeting or a cooperative school district meeting unless a petition therefor shall be presented to the board in the manner provided in section 3, paragraph I.

2. Effect of Other Statutes. Such acts or parts of acts inconsistent with the provisions hereof are hereby repealed in so far as they affect cooperative school districts.

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