The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 5482 April 5, 1979 SCHOOLS AND SCHOOL DISTRICTS: Property transfer from one school district to another STATE BOARD OF EDUCATION: Appeal from denial of property transfer by an intermediate board of education In an appeal to the State Board of Education from a denial of a property transfer by an intermediate board of education, the State Board of Education should consider the latest assessed valuation of the area to be transferred and of the school district from which it is to be transferred as of the time of the hearing before the State Board of Education or its hearing officer. Dr. John W. Porter Superintendent of Public Instruction Michigan Department of Education Michigan National Tower Lansing, Michigan You have inquired whether, in an appeal to the State Board of Education from a denial of a property transfer by an intermediate board of education, the State Board of Education should consider the latest assessed valuation of the area to be transferred and of the school district from which it is to be transferred as of the time of the appeal or as of the time of the hearing before the State Board of Education or its hearing officer. In Article 2, Part 11 of the School Code of 1976, 1976 PA 451, Sec. 951 et seq; MCLA 380.951 et seq; MSA 15.4951 et seq, the legislature has provided for transfers of property between school districts. In Sec. 951 of that statute, the legislature has required: '. . . If the latest assessed valuation of the area to be detached is more than 10% of the latest assessed valuation of the entire school district from which it is to be detached, the action of the intermediate school board shall not be effective unless approved by an affirmative vote of a majority of the school electors of the district from which the territory is to be detached.' Pursuant to Article 2, Part 11 of the School Code of 1976, supra, Sec. 971, the action of an intermediate board of education concerning a proposed property transfer may be appealed to the State Board of Education. OAG, 1977-1978, No 5263, p ___ (February 6, 1978), held that where the State Board of Education reverses a denial action of an intermediate school board and grants a property transfer, the electors of the school district from which the property is to be transferred must also approve the transfer if the area to be transferred contains more than 10% of the latest assessed valuation of the school district. In Owendale-Gagetown School District v State Board of Education, 402 Mich 841, 842, ---- NW2d ---- (1977) cert den 436 US 906, (1978), the Michigan Supreme Court, in denying a motion for reconsideration of its denial of an application for leave to appeal from an unpublished decision of the Michigan Court of Appeals, 29768, of August 15, 1977 stated: '. . . MCLA 340.461; MSA 15.3461 (a1) provides for a vote of the school tax electors on a transfer only when 'the latest available taxable valuation of the area to be detached is more than 10% of the latest available taxable valuation of the entire school district from which it is to be detached'. The record discloses that the latest available tax valuation of the area to be detached in this case is less than 10% of the Owendale-Gagetown School District as constituted at the time of the State Board of Education decision.' [Emphasis supplied] The State Board of Education decision is, of course, based upon the record made on appeal in the contested case hearing conducted pursuant to the Administrative Procedures Act of 1969, 1969 PA 306, MCLA 24.201 et seq; MSA 3.560(101) et seq. Irving Parents' and Landowners Association v State Board of Education, 45 Mich App 387; 206 NW2d 503, leave to app den'd, 390 Mich 754 (1973). See also, 1964 PA 287, Sec. 10(b), MCLA 388.1010; MSA 15.1023(10). Therefore, it is my opinion that in an appeal to the State Board of Education from a denial of a property transfer by an intermediate board of education, the State Board of Education should consider the latest assessed valuation of the area to be transferred and of the school district from which it is to be transferred as of the time of the hearing before the State Board of Education or its hearing officer. Frank J. Kelley Attorney General (a1.)