-- The law is designed to cut the number of school districts from 290 to about 80.

-- Each district must have at least 2,500 students.

-- Exemptions to the above cover island and tribal schools, districts with low administrative costs and high-performing schools, and districts where merging would be impractical for geographical or other reasons.

-- Non-exempt districts with fewer than 2,500 students must submit consolidation plans to the state.

-- Merger plans approved by the state then are subject to approval by local voters.

-- Teachers and other employees will be transferred to newly consolidated districts under their existing contracts.

-- Merged districts will be governed by regional school boards.

-- Proposed school budgets must be approved by referendum.

-- All districts, exempt or not, must submit plans to the state showing how they will cut administration, transportation, special education and facilities/maintenance costs.

-- Non-exempt districts that fail to merge face state-aid reductions and will have a harder time qualifying for state school-construction money.