§ 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.