Article 2School Housing Aid for Reorganized Districts

Section § 16150

Explanation

This section explains what happens when school district boundaries are changed or when districts are reorganized. It defines terms like 'acquiring district', 'original district', and 'state-aided district'. The law then specifies the dates that changes become effective for granting or finalizing funding to districts. For districts that are merging or changing boundaries, certain funding decisions require the approval of the new, combined district's governing board.

(a)CA Education Code § 16150(a) As used in this article:
(1)CA Education Code § 16150(a)(1) “Acquiring district” means a district in which all or a part of a state-aided district or an applicant district has been included.
(2)CA Education Code § 16150(a)(2) “Original district” means a state-aided or applicant district included in whole or in part in an acquiring district.
(3)CA Education Code § 16150(a)(3) “State-aided district” means a district to which a conditional or final apportionment has been made under this chapter.
(b)CA Education Code § 16150(b) For purposes of this article as it applies to an acquiring district, the effective date of any change of boundaries, annexation, formation of a new district, or other reorganization shall be:
(1)CA Education Code § 16150(b)(1) For granting conditional apportionments: the date the action became effective for purposes of Sections 35532 and 35533.
(2)CA Education Code § 16150(b)(2) For making conditional apportionments final: the date the action became effective for purposes of Sections 35532 and 35533.
(c)CA Education Code § 16150(c) For purposes of this article as it applies to an original district, the effective date of any change of boundaries, annexation, formation of a new district, or other reorganization in which the original district is included in whole or in part in an acquiring district shall be:
(1)CA Education Code § 16150(c)(1) For granting conditional apportionments: the date the action becomes effective for all purposes as specified in Section 35534.
(2)CA Education Code § 16150(c)(2) For making conditional apportionments final: the date the action became effective for all purposes as specified in Section 35534.
(3)CA Education Code § 16150(c)(3) No conditional apportionment may be made to any original district affected by any reorganization after the date that action became effective for purposes of Sections 35532 and 35533 except upon an application that has the approval of the governing board of the acquiring district.
acquiring district original district state-aided district boundary changes district reorganization conditional apportionment final apportionment district funding educational district merger boundary effective date district annexation school district formation Sections 35532 and 35533 Sections 35534 governing board approval
(Amended by Stats. 2015, Ch. 386, Sec. 4. (SB 436) Effective January 1, 2016.)

Section § 16151

Explanation

When one school district takes over another, it can take on the authority to accept state loans that the original district had. However, if the new district uses bond money to pay off financial obligations of the original district, this bond money won't count against any amount they are allowed to get from state loans.

On the date an acquiring district becomes effective for all purposes, as specified in Section 35534, the authority to accept a state loan voted by an original district pursuant to this chapter whose boundaries are coterminous with the boundaries of the acquiring district shall become authority of the acquiring district to accept a state loan. However, when the proceeds of bonds authorized and sold by the acquiring district are applied toward the reduction of apportionments made to an original district that is included in whole in the acquiring district pursuant to Section 16058, the amount of bond proceeds shall be excluded in determining the amount chargeable against any apportionment authorized to be accepted by the electorate of the original or acquiring district.
acquiring district state loan authority original district bond proceeds financial apportionments school district takeover reduction of apportionments state loan acceptance district boundaries bond money exclusion district financial obligations
(Amended by Stats. 2015, Ch. 386, Sec. 5. (SB 436) Effective January 1, 2016.)

Section § 16152

Explanation

This law states that if two elementary school districts decided to merge into a new district through an election after April 1, 1972, and one of these districts had previously agreed to use and repay certain funds (but hadn't used them yet), the merger vote also counts as the new district agreeing to use those funds. The ballot must clearly inform voters that approving the merger means the new district can accept and repay these unused funds.

Notwithstanding any other provision of this chapter, where an election is or has been held after April 1, 1972, in two elementary districts for the purpose of forming a new elementary district from the territories of the districts, which reorganization would become effective for all purposes on July 1, 1973, and where one of the districts has prior to April 1, 1972, voted to accept, expend, and repay apportionments under this chapter but no apportionments pursuant to the authorization has been made to the district as of April 1, 1972, the consent of the electors in the districts to the reorganization shall be deemed to constitute a consent on behalf of the newly formed district to accept, expend, and repay apportionments under this chapter to the extent that the former authorization for apportionments had not been utilized.
Further, the ballot for the election held for the purpose of forming the new elementary school district shall contain a statement to the effect that approval of reorganization shall be deemed to constitute a consent on behalf of the newly formed district to accept, expend, and repay apportionments under this chapter to the extent that the former authorization for apportionments has not been utilized.
elementary school districts district reorganization election consent apportionments agreement merge approval financial authorization unused funds ballot statement new district formation April 1 1972 July 1 1973 fund repayment consent
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Section § 16153

Explanation

This section explains what happens if a school district applying for funding is annexed (or merged) with another district. If the entire district is absorbed by an ineligible one, the funding is canceled. If only part of the district joins an ineligible one, the board can review and decide on giving conditional funds. If a district is partly or fully absorbed by an eligible district, the board can reconsider all applications and decide on giving conditional funds accordingly.

Whenever, prior to the date on which a conditional apportionment is made by the board to an applicant district, (1) if an applicant district is annexed to or otherwise included in whole in another district which is ineligible for an apportionment under this chapter, no apportionment shall be made to the applicant district; (2) if less than the whole of an applicant district is included in a district which is ineligible for an apportionment under this chapter, the board may reconsider the application of the applicant district and make such determinations and take the action with respect thereto, including the making, subject to Article 1 (commencing with Section 16000) of this chapter, of a conditional apportionment to the district, as the board may deem necessary because of such inclusion of less than the whole of the applicant district in the acquiring district; (3) if an applicant district is annexed to or otherwise included in whole or in part in a district which is eligible for an apportionment under this chapter and has made or does make an application for the apportionment, the board may reconsider the applications of the applicant district and the acquiring district and make the determinations and take the action with respect thereto, including the making, subject to the provisions of Article 1 (commencing with Section 16000) of this chapter, of conditional apportionments to the districts, as the board may deem necessary because of the annexation or other inclusion in the acquiring district of the applicant district in whole or in part.
conditional apportionment applicant district annexation ineligible district eligible district funding reconsideration district merger conditional funds application review school district funding board determinations district inclusion funding eligibility school board actions
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Section § 16154

Explanation

This law explains what happens to a school's conditional funding if the school's district boundaries change before the funding is finalized. If a district merges with a non-eligible district, the funding is canceled. If it merges with an eligible district, the board can reassess and possibly reallocate the funds. If only part of the district merges, the board can issue new funding based on the changes. Additionally, new or additional funding can be finalized if the district's existing debt is close to the required limit.

Whenever, subsequent to the date on which a conditional apportionment is made by the board to an applicant district, but prior to the date on which the conditional apportionment becomes final, (1) if an applicant district is annexed to or otherwise included in whole in a district which is not eligible for an apportionment under this chapter, the conditional apportionment shall, notwithstanding any other provisions of this chapter, become void and the board shall promptly notify the Controller in writing thereof and the date on which the apportionment became void; (2) if the district to which an applicant district is annexed or in which it is otherwise included in whole is eligible for an apportionment, has made or does make an application for such an apportionment under this chapter, the conditional apportionment made to the applicant district shall, notwithstanding any other provisions of this chapter, become void but the board may reconsider the application of the acquiring district and make the determinations and take such action with respect thereto, including the making, subject to the provisions of Article 1 (commencing with Section 16000) of this chapter except as hereinafter provided, of additional conditional apportionments to the acquiring district, as the board may deem necessary as a result of such annexation or other inclusion in the acquiring district of the applicant district; (3) if less than the whole of an applicant district is included in another district, the conditional apportionment shall, notwithstanding any other provisions of this chapter, become void, but the board may reconsider the application and make such determinations and take such actions with respect thereto, including the making, subject to the provisions of Article 1 (commencing with Section 16000) of this chapter except as hereinafter provided, of new conditional apportionments to the applicant district, as the board may deem necessary as a result of such inclusion of a portion of the applicant district in the acquiring district.
Notwithstanding anything in the first sentence of Section 16058 to the contrary, additional conditional apportionments made to a district under (2), or new conditional apportionments made to a district under (3) of the first paragraph of this section may, with the approval of the board, become final if the total amount of the bonds of the district outstanding and unpaid is within twenty-five thousand dollars ($25,000) of the amount required under Section 16058.
conditional apportionment annexation eligible district void conditional apportionment notify the Controller acquiring district application reconsideration additional conditional apportionments school district mergers finalization of funding outstanding bonds district debt limit district boundary changes funding reassessment apportionment eligibility
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Section § 16155

Explanation

If part of a school district that applies to be included in another district is valued at less than 5% of the total value of the original district on the change date, it's as if the change never happened, at least for specific legal purposes.

If an annexation or other inclusion of a portion of an applicant district in another district comprises less than 5 percent of the assessed valuation of the applicant district on the effective date of the change, no annexation or other inclusion shall be deemed to have taken place for the purposes of Sections 16154 and 16156.
annexation district inclusion 5 percent threshold applicant district assessed valuation effective date school district boundaries property value assessment district boundary changes legal implications of annexation
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Section § 16156

Explanation

If a school district that applied for state funding is merged into another district, the funding rules change depending on the new district's eligibility. If merged into an ineligible district, no new funds are given. If merged into an eligible district, the board can re-evaluate and potentially redistribute funds. If only part of the district is merged, the board can adjust the funding amounts within two years without needing new bonds, but can't exceed the originally approved amount.

Whenever, prior to the date on which conditional apportionments have been made to an applicant district for the full amount of state aid approved for the district under Section 16035, (1) if the applicant district is annexed to or otherwise included in whole in another district which is ineligible for an apportionment under this chapter, no further apportionment shall be made to the applicant district; (2) if the applicant district is annexed to or otherwise included in whole in a district which is eligible for an apportionment under this chapter and which has made or does make an application for the apportionment, the board may reconsider the applications of the applicant district and the acquiring district and make any determinations and take any action with respect thereto, including the making, subject to the provisions of Article 1 (commencing with Section 16000) of this chapter, of a conditional apportionment or apportionments to the acquiring district that the board may deem necessary because of the annexation or other inclusion in the acquiring district of the applicant district; (3) if a portion of the applicant district is annexed to or otherwise included in another district, the board may reconsider the application of the applicant district and may, within two years after the first apportionment made under the approval, make the additional apportionments as it sees fit to the applicant district, but not in excess of the amount in which the application was originally approved, without requiring the district to issue additional bonds.
conditional apportionments state aid applicant district annexation funding eligibility reconsideration funding redistribution ineligible district eligible district merger school district funding state funding rules additional apportionments board powers original approval limit
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Section § 16157

Explanation

If a state-aided school district merges completely into another district after receiving a conditional funding allotment, the new district takes over all responsibilities and rights concerning that funding. Additionally, all funds that were in the original district's building fund are transferred to the new district's fund. Any future payments that would have gone to the original district now go to the new one. The new district also becomes responsible for any remaining financial obligations related to the funding.

If, subsequent to the date on which a conditional apportionment made to a district becomes final, the state-aided district is included in whole in another district, the acquiring district shall, on the effective date of the inclusion, succeed to and be vested with all of the duties, powers, purposes, jurisdiction, and responsibilities of the state-aided district with respect to the apportionment and the property acquired or to be acquired from funds provided thereby, and all funds in the state school building fund of the state-aided district shall be transferred to the state school building fund of the acquiring district. All amounts that would, after the effective date of the inclusion, have been otherwise paid to the state-aided district under the terms of or pursuant to the apportionment, shall be paid to the acquiring district. In addition, the acquiring district shall, on the effective date of the inclusion of the state-aided district in the acquiring district as fixed by Section 35534, become liable for the annual repayments and other payments due the state under Section 16075 and other provisions of this chapter with respect to the apportionment or the property acquired or to be acquired therewith.
school district merger conditional apportionment state-aided district acquiring district inclusion effective date state school building fund fund transfer annual repayments property acquired financial obligations Section 35534 Section 16075
(Amended by Stats. 2015, Ch. 386, Sec. 6. (SB 436) Effective January 1, 2016.)

Section § 16158

Explanation

If one or more school districts that get state aid are fully included into another district (called the acquiring district), and the acquiring district gets approval for funding, then the smaller districts must transfer any project-specific funds to the acquiring district. The acquiring district can then use those funds for any approved projects.

Whenever one or more state-aided districts are included in whole in an acquiring district, and the acquiring district applies for and receives an apportionment, then after the effective date of the inclusion and upon the approval of the application of the acquiring district, the governing board of each component state-aided district shall immediately transfer to the acquiring district all moneys of the component district which are required to be, or have been, earmarked for a project or projects of the district. The acquiring district, upon the transfer to it of the funds, may expend the funds for any projects of the acquiring district as to which its application was approved.
state-aided districts acquiring district apportionment component district transfer of funds project-specific funds approval of application school district funding governing board state funding education projects district inclusion money transfer
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Section § 16159

Explanation

This law addresses what happens when part of a state-aided school district becomes part of another district and how the financial responsibilities are handled. The Director of General Services decides which part of any funding (called apportionment) will be used or has been used for the properties in the acquiring district. This decision can be adjusted as the project progresses. Once boundaries change, the new district takes over all the responsibilities and debts related to the funding for the particular area it now includes. However, this does not change payments already made by the previous district. The law sets caps on how much repayment the new district is liable for, ensures any overpayments are credited, and states that the law remains valid even if parts of it are found unconstitutional.

Whenever, subsequent to the date on which a conditional apportionment made to a state-aided district becomes final, less than all of the district is included in another district, the Director of General Services shall determine what portion of the apportionment was expended or will be expended for property acquired or to be acquired by the acquiring district. Any determination made by the Director of General Services under this section may be redetermined by him or her, from time to time, until the project for which the apportionment was made has been completed, and the final cost thereof determined and the final determination has been made pursuant to the final cost. The Director of General Services shall promptly notify the Controller, the governing board of the state-aided district and of the acquiring district, the superintendent of schools, the auditor and the treasurer of the counties having jurisdiction over the districts of each determination and redetermination made by him or her under this section. No redetermination shall be retroactive nor affect the liability of any school district for any payment or annual repayment, or portion thereof, previously made by or on behalf of the district to the state under this chapter.
On and after the date of the change of boundaries, the acquiring district succeeds to and is vested with all of the duties, powers, purposes, jurisdiction, and responsibilities of the state-aided district with respect to that portion of the apportionment which the Director of General Services has determined or redetermined under this section was expended, or will be expended, for property acquired or to be acquired by the acquiring district, and the unexpended part of the portion of the apportionment in the state school building fund of the state-aided district shall be transferred to the state school building fund of the acquiring district. In addition, and at the same time, the acquiring district shall become liable for the payment to the state of that portion of the annual repayment and all other payments due the state under Section 16075 and other provisions of this chapter with respect to that portion of the apportionment which the Director of General Services has determined or redetermined was expended, or will be expended for property acquired, or to be acquired by the acquiring district, or, in the event the portion of the apportionment is a lower percentage of the apportionment than the percentage that the assessed valuation in the territory of the state-aided district which was transferred to the acquiring district is of the total assessed valuation of the state-aided district immediately preceding the effective date of the transfer, the acquiring district shall become liable for the payment to the state of that portion of the annual repayment and all other repayments due the state under Section 16075 and other provisions of this chapter with respect to the apportionment which is equal to the percentage of assessed valuation in the territory transferred to the acquiring district. “Annual repayment,” as used in this section, refers to repayment computed under Sections 16070 to 16075, inclusive, and excludes amounts for which the state-aided district is liable under the provisions of Section 16039. Whenever a site for which repayments are being made under Section 16039 is transferred to an acquiring district the acquiring district shall be liable for the repayments required under Section 16039.
Notwithstanding the foregoing, the liability of the acquiring district for the repayment of any portion of the apportionment made to the state-aided district shall not exceed the product of the highest percentage referred to above (whether relating to assessed valuation or to the portion of the apportionment expended in the property acquired), multiplied by the balance due on the apportionment made to the state-aided district at the time of the withdrawal on the effective date specified in Section 4064 (Sec. 1, Ch. 95, Stats. 1964, 1st Ex. Sess.) of the territory referred to. The limited liability is hereinafter referred to as “the maximum.” It is the intent of the Legislature that the maximum shall be applied by the Controller, both retroactively and prospectively, provided that as a result of the application (1) no cash refund shall be made to any district; (2) in the event any district has, in the past, paid an amount greater than the maximum, assuming this paragraph had been in effect at that time, the excess shall be credited by the Controller against any apportionment balances for which the district is or may hereafter become liable; and (3) the Controller shall make retroactively any adjustments in the amounts due from other districts by virtue of any adjustments made under (2) above. Notwithstanding the foregoing, any computations required to be made pursuant to this paragraph shall not be reflected in any changes in deductions required to be made pursuant to Section 16080 prior to January 1, 1966.
If any subdivision clause, sentence, or phrase of this section is for any reason held to be unconstitutional the decision shall not affect the validity of the remaining portions of this section. The Legislature hereby declares that it would have adopted this section and each subdivision, sentence, clause, or phrase thereof irrespective of the fact that any one or more subsections, clauses, sentences, or phrases be declared unconstitutional.
Director of General Services conditional apportionment school district boundaries responsibility transfer acquiring district state school building fund property acquisition annual repayment assessed valuation percentage maximum liability financial adjustments retroactive application unconstitutionality clause boundary change school funding distribution
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Section § 16160

Explanation

This section explains how state loan repayment liability is determined when an elementary school district is divided and becomes part of three new unified school districts. If certain conditions are met, each newly formed part does not share in the original district's loan repayment responsibilities. These conditions include having a small assessed value compared to the original district, excluding its student attendance from aid calculations, and having no school facilities acquired under relevant statutes.

Notwithstanding Sections 16159 and 16161, in situations where an applicant district at the elementary grade level under this chapter is divided into three parts, each of which is included in a newly formed unified school district, each part shall be excluded in determining the state loan repayment liability for any apportionment made to the original district subsequent to the date the unification is effective for purposes of Section 35532, provided that all of the following occur:
(a)CA Education Code § 16160(a) The assessed valuation of the part is less than 4 percent of the original district in the fiscal year immediately preceding the fiscal year the change is made effective for all purposes.
(b)CA Education Code § 16160(b) The average daily attendance in the part is excluded in determining projected enrollment of the original district for additional state aid during the period after the change is effective for purposes of Section 35532 and before the effective date for all purposes.
(c)CA Education Code § 16160(c) The part contains no sites, plans, or school facilities, which were acquired under this chapter or under Chapter 4 (commencing with Section 15700).
state loan repayment elementary school district division unified school district assessed valuation average daily attendance projected enrollment school facilities exclusion district unification terms Section 35532 loan apportionment original district liability newly formed district effective date for unification loan liability exclusion state aid determination
(Amended by Stats. 2015, Ch. 386, Sec. 7. (SB 436) Effective January 1, 2016.)

Section § 16161

Explanation

This law explains that if the boundaries of a state-supported school district change or it merges into another, it still temporarily exists as before for calculating property values and distributing state funds. These processes continue based on its pre-change boundaries unless specified differently by related laws. If the entire district merges into another state-aided district, the leftover state funds from the original district combine with the new district's funds. No further calculations or repayments are needed for the old district, and everything will now focus on the new district's property values and boundaries.

Notwithstanding any change in the boundaries of a state-aided district or the annexation to, or the inclusion in, another district of a state-aided district, the state-aided district as it existed immediately prior to the effective date of the action shall be continued in existence for the determination of the assessed valuation of the property therein and for the purposes of the computations provided by Sections 16070, 16072, 16074, 16075 and 16084; and all the computations required to be made pursuant to those sections shall be made exactly as if there had been no such change of boundaries, annexation, or inclusion, except as otherwise provided in Sections 16163 and 16164. However, that if a state-aided district shall be included entirely in another school district which subsequently becomes state aided, then the unpaid balances of the apportionments made to the original district shall be added to the balances of the apportionments made to the newly aided district. In those cases, no further computations as aforesaid, or repayments, shall be made with respect to the original district, but the computations and repayments shall thenceforth be based solely upon the territory and assessed valuation of the newly aided district, in the manner provided by Sections 16070, 16072, 16074, 16075 and 16084.
state-aided district boundary changes annexation property valuation school district merger assessed valuation fund apportionments computation rules repayments merged school districts territory assessment
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Section § 16162

Explanation

If a school district in California receives a payment based on certain grade levels, all their unpaid past payments will be combined with the new payment. After this combination, no more calculations or repayments will be made on the old payments alone. Instead, everything will be figured out and repaid based on the total amount, according to specific rules.

If a unified school district, after the effective date of this section, applies for and is granted an apportionment under this chapter on the basis of grade levels as defined in Section 16003, all unpaid balances of prior apportionments made to the district, subject to Section 16161, shall be added to the balances of the apportionments made on the basis of Section 16003. In those cases, no further computations or repayments under Sections 16070, 16072, 16074, 16075 and 16084 shall be made with respect to the prior apportionments alone, but the computations and repayments shall thenceforth be based solely upon the combined apportionments, and shall be made as provided in Sections 16071, 16072, 16074, 16075 and 16084.
unified school district apportionment grade levels unpaid balances prior apportionments Section 16003 combining apportionments computations repayments Sections 16071 Section 16161
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Section § 16163

Explanation

This section of the education code deals with how money is managed when parts of a school district are transferred to another district. If a territory is moved from a state-aided school district, there are rules about how the value of the properties in the moved areas affects financial calculations. If the new district also gets state aid, the property value is counted with the new district; otherwise, there's a percentage-based calculation to adjust liabilities. When property value from the moved territory is under 10% of the original district's total, this value is left out unless more territory is transferred. If it's 10% or more, a "complement percentage" is used to figure out financial responsibilities for repayments, with set maximums for each district involved. If two or more districts are involved, the controller decides on how to share the financial load. These rules apply both retroactively and going forward, ensuring no district gets a refund but may adjust future balances owed. Even if a part of these rules is found unconstitutional, the rest still stands.

Whenever, subsequent to the date on which a conditional apportionment becomes final, territory is withdrawn from a state-aided district and no portion of the apportionment was expended for school property acquired by the acquiring district:
(1)CA Education Code § 16163(1) If the acquiring district is a state-aided district, the assessed valuation in the territory acquired shall be included in determining assessed valuation of the property in the acquiring district, and shall thereafter be excluded in determining assessed valuation of the property in the state-aided district, for purposes of the computations under Sections 16070 to 16075, inclusive;
(2)CA Education Code § 16163(2) If the acquiring district is not a state-aided district, the Controller shall determine the percentage relationship, at the time of the withdrawal, between (a) the assessed valuation in the territory acquired, together with the current assessed valuation in all other territory theretofore acquired by the acquiring district from the state-aided district since the date of its first conditional apportionment under this chapter, and (b) the current assessed valuation of the state-aided district as it was territorially constituted on the latter date.
If the percentage of assessed valuation in acquired territory is, in the aggregate, less than 10 percent, the assessed valuation in all the acquired territory shall be excluded, until the next withdrawal of territory from the state-aided district to the acquiring district, in determining the assessed valuation of the state-aided district for the purposes of the computations under Sections 16070 to 16075, inclusive.
If the percentage of assessed valuation in acquired territory is, in the aggregate, a percentage equal to or greater than 10 percent, the Controller shall, by deducting the percentage from 100 percent, obtain the “complement percentage.” Until the next withdrawal of territory from the state-aided district to the acquiring district, the assessed valuation of the state-aided district for purposes of the computations under Sections 16070 to 16075, inclusive, shall be determined by dividing the current assessed valuation of the state-aided district as territorially constituted immediately subsequent to the last withdrawal, by the complement percentage.
Whenever, pursuant to this section, the assessed valuation of the state-aided district is adjusted for repayment computation purposes by use of the complement percentage, liability for the annual repayment computed shall be apportioned between the state-aided district and the acquiring district by multiplying the annual repayment by the complement percentage, the product representing the liability of the state-aided district, and the remainder of the computed repayment representing the liability of the acquiring district.
Notwithstanding the foregoing, the liability of the state-aided district shall not exceed the product of any “complement percentage” (as it may from time to time exist) times the balance due on the aforesaid final apportionment at the time the complement percentage is established; and the liability of the acquiring district (while a complement percentage remains unchanged) shall not exceed the remainder of the balance of the final apportionment at the time complement percentage is established. The maximum liability on the part of either the state-aided or acquiring districts established as above (and until the time that the liability be altered by altering the “complement percentage”) shall be hereinafter referred to in this section with respect to each such district as “the maximum.”
(3)CA Education Code § 16163(3) In the event that two or more non-state-aided districts acquire territory from the state-aided district, the Controller shall determine the formulae for apportioning liability for the annual repayment between the districts affected (including the formulae for determining what assessed valuations shall be used within the affected districts or territories withdrawn, and the dates of determination thereof), as will in his or her opinion best comply with the principles set forth above, irrespective of whether the formulae are in literal compliance therewith. The same percentage of annual repayment for which a district is liable at the time the liability apportionment is made shall (unless and until the liability apportionment is subsequently changed pursuant to this paragraph) be deemed applicable to the liability of the district for the balance (as of the date the liability apportionment is made) due on the final apportionment to the state-aided district. The liability for the balance shall, with respect to any affected district, be hereinafter referred to as the “maximum” for the district.
(4)CA Education Code § 16163(4) It is the intent of the Legislature that the foregoing “maximums” shall be applied by the Controller both retroactively and prospectively, provided that as a result of the application (1) no cash refund shall be made to any district; (2) in the event any district has, in the past, paid an amount greater than its “maximum,” assuming this paragraph and others to which it is referable had been in effect at that time, the excess shall be credited by the Controller against any apportionment balances for which the district is or may hereafter become liable; and (3) the Controller shall make retroactively any adjustments in the amounts due from any other district by virtue of any adjustments made under (2) above. Notwithstanding the foregoing, any computations required to be made pursuant to this paragraph shall not be reflected in any changes in deductions required to be made pursuant to Section 16080 prior to January 1, 1966.
If any subdivision, clause, sentence, or phrase of this section is for any reason held to be unconstitutional the decision shall not affect the validity of the remaining portions of this section. The Legislature hereby declares that it would have adopted this section and each subdivision, sentence, clause, or phrase thereof irrespective of the fact that any one or more subdivisions, clauses, sentences, or phrases be declared unconstitutional.
conditional apportionment assessed valuation acquiring district state-aided district complement percentage financial computations property transfer Controller's role district liability annual repayment territory withdrawal maximum liability non-state-aided district retroactive adjustments educational funding
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Section § 16164

Explanation

If part of an area is taken from a district not receiving state aid and added to a district that does, the value of that area is combined with the state-aided district's value for certain calculations.

Whenever, subsequent to the date on which a conditional apportionment becomes final, any territory is withdrawn from a non-state-aided district and annexed to the state-aided district, the assessed valuation in the territory so annexed shall be included with the valuation of the state-aided district for the purposes of making the computations provided by Sections 16070 to 16075, inclusive.
conditional apportionment withdrawn territory annexed territory state-aided district non-state-aided district assessed valuation inclusion territory annexation valuation computations Sections 16070 to 16075
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Section § 16165

Explanation
This section explains that the Controller is responsible for calculating how much money each state-aided school district needs to pay back to the state each year. This repayment is based on financial help they've received. The amount owed will be deducted from the funds these districts get from the State School Fund, according to specific sections of the California Education Code.
The Controller shall compute, in accordance with Sections 16161, 16163 and 16164, the amount of the annual repayment due the state on account of the apportionment or apportionments to each state-aided district and shall deduct from the respective apportionments made from the State School Fund under Sections 46304, 46305, and 92 or 41050, Sections 41330 to 41343, inclusive, and Sections 41600 to 41972, inclusive, to the state-aided district and an acquiring district the portion thereof for which each is liable under this article (Sections 16150 to 16166, inclusive).
Controller annual repayment state-aided districts State School Fund financial apportionment Section 16161 Section 16163 Section 16164 deductions school funding apportionments calculation State Controller duties district financial liability public school financing
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Section § 16166

Explanation

If a school district that applied for funding is partially or wholly merged into another district or has its boundaries changed, the county superintendent of schools must inform the relevant board in writing within 10 days of the change. This written notice should include the date of the change, details of the affected area, and which districts are involved. Upon receiving this notice, the board must inform the State Controller about the merger or change, including details on the dates, districts involved, and impacted state funding allocations.

When, after any application is filed, the applicant district is annexed to, or, by change of boundaries or otherwise, is included in whole or in part in another district or districts, the superintendent of schools of the county having jurisdiction over the applicant district shall, within 10 days after the effective date of the annexation, inclusion, or change of boundaries, file a certificate with the board, in writing, in the form that the board shall prescribe, setting forth (1) the effective date of the annexation, inclusion, or change of boundaries; (2) identification of the area of the school district affected by the change and the name of the school district or districts in which the area is included as a result thereof; and (3) any additional information in any form that the board may require.
The board shall, upon receiving the appropriate certificate from a county superintendent of schools as provided herein, promptly notify the State Controller, in writing, of (1) the effective date of annexation or other inclusion of a state-aided district by an acquiring district; (2) the name of the state-aided district; (3) the name of the acquiring district; and (4) the number and other identification of the apportionment affected.
application filed district annexed change of boundaries county superintendent certificate filing effective date state controller state-aided district acquiring district school district merger boundary change notice funding application impact school district inclusion county jurisdiction written notification
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)