Disposition Of Records, Funds, Property, And Obligations When Reorganized - Reorganization Of School Districts—general Provisions - CA Education

Section § 35560

When a school district is reorganized in California, the funds, property, and obligations of the previous district must be divided in specific ways. If rules for dividing them aren't already set, here's how it works: the real estate and related items go to the district where they're located, while other properties and finances are split among districts based on the assessed value of the parts of the old district that each new district covers. Bond-related debts aren't included in this division. Also, any special taxes can still be collected as per existing law.

When a school district is reorganized, both of the following shall apply:

(a) When the allocation of funds, property, and obligations is not fixed by terms, conditions, or recommendations as provided by law, the funds, property, and obligations of a former district, except for bonded indebtedness, shall be allocated as follows:

(1) The real property and personal property and fixtures normally situated thereat shall be the property of the district in which the real property is located.

(2) All other property, funds, and obligations, except bonded indebtedness, shall be divided pro rata among the districts in which the territory of the former district is included. The basis for the division and allocation shall be the assessed valuation of the part of the former district which is included within each of the districts.

(b) Any qualified special taxes may continue to be imposed pursuant to Section 50079.2 of the Government Code.

school district reorganization allocation of funds property division obligations bonded indebtedness real property personal property fixtures pro rata division assessed valuation qualified special taxes Section 50079.2 Government Code

(Amended by Stats. 2011, Ch. 276, Sec. 1. (AB 504) Effective January 1, 2012.)

Section § 35561

This law states that money from selling school bonds issued by an original school district must be used to buy, build, or upgrade school property within that original district. It can also be used to pay off the district's debts. However, if a new district takes on that debt, then the money can be used anywhere in the new district for the original bond purposes.

Any funds derived from the sale of the school bonds issued by the original district shall be used for the acquisition, construction, or improvement of school property only in the territory that comprised the original district or to discharge bonded indebtedness of the original district, except that, if the bonded indebtedness is assumed by the new or acquiring district, the funds may be used in any area of the new district for the purposes for which the bonds were originally voted.

school bonds original district new district bonded indebtedness acquisition construction improvement school property territory use of funds bond purposes debt discharge district reorganization fund allocation

(Amended by Stats. 2016, Ch. 186, Sec. 10. (AB 2659) Effective January 1, 2017.)

Section § 35562

When a school district is split and becomes part of two or more other districts, the records from the original district must be properly distributed. The important documents are given to the district that has the former superintendent's office. Employee records go to wherever those employees end up working. Student records move to the district where the last school they attended is now located.

If all the territory of a school district becomes part of two or more school districts of any type, and the inclusion in the two or more new or acquiring districts of the several portions of territory comprising the whole of the former district is effective for all purposes on the same date, the records of the former district shall be disposed of as follows:

(a) All records of the former district that are required by law to be kept on file shall be deposited with the governing board of the school district which, after the reorganization has become effective for all purposes, has located within its boundaries the former office of the superintendent of the original district.

(b) Records of employees shall be transferred to the school district thereafter employing the personnel or thereafter maintaining the last place of employment.

(c) Records of pupils shall be transferred to the school district that, after the date on which the reorganization becomes effective for all purposes, maintains the school in which a pupil was last enrolled.

school district reorganization territory division record disposal governing board former district records superintendent's office employee records student records school boundary changes pupil enrollment transfer

(Amended by Stats. 2016, Ch. 186, Sec. 11. (AB 2659) Effective January 1, 2017.)

Section § 35563

This law explains what happens when a school district splits into two or more new districts at the same time. The county superintendent is in charge of finishing up the old district's paperwork, paying off its debts (except for certain contracts), organizing and filing necessary records, and making sure everything is in order for the new districts. The superintendent can also hire auditors and get help from employees of the old and new districts, and cover these costs using funds from the old district before the money is divided among the new districts.

(a) If all of the territory of a school district becomes part of two or more school districts of any type, and the inclusion in the two or more new school districts of the several portions of territory comprising the former district is effective for all purposes on the same date, the county superintendent of schools having jurisdiction over the former district shall assume responsibility for all of the following:

(1) Completing all records and reports of the former district.

(2) Paying all outstanding obligations, except obligations resulting from contracts that are to be assumed by a new or acquiring district.

(3) Preparing for proper filing all records of the former district required to be kept permanently by the provisions of any applicable code.

(4) Distributing records as provided in Section 35562.

(5) Employing an auditor as required in Section 41020.

(6) Discharging other functions that he or she deems necessary to the dissolution of the school district.

(b) In discharging these duties, the county superintendent of schools may request the services of employees of the original district or the new or acquiring district, and the new or acquiring districts shall release those employees to the county superintendent of schools for the purpose of accomplishing the requirements of this section. The salaries of those employees and all other necessary expenses of completing the requirements of this section shall be charged against the accumulated funds of the former district before the final distribution of those funds to the new or acquiring districts.

school district dissolution county superintendent responsibilities records and reports completion outstanding obligations payment records distribution auditor employment employee services funds allocation district reorganization school district obligations territory inclusion contracts assumption permanent records filing employee release former district expenses

(Amended by Stats. 2016, Ch. 186, Sec. 12. (AB 2659) Effective January 1, 2017.)

Section § 35564

When a school district is reorganized and some students end up living outside the district's new boundaries, the county committee will decide how to split the student body's property, funds, and obligations among the new schools. However, the division should be proportionate to how many students are moving. Any money or property given specifically to the school's student body stays with that original student body and isn't divided up.

If the reorganization of a school district under this chapter results in the relocation of district boundaries so that a portion of the pupils will not be residents of the district thereafter maintaining a school previously attended by the pupils, and if there is in the school an organized student body, the property, funds, and obligations of the student body shall be divided as determined by the county committee, except that the share shall not exceed an amount equal to the ratio which the number of pupils leaving the school bears to the total number of pupils enrolled. The ownership of the property, funds, and obligations, which is the proportionate share of each segment of the student body, shall be transferred to the student body of the school or schools in which the pupils are enrolled after the reorganization. Funds from devises, bequests, or gifts made to the organized student body of a school shall remain the property of the organized student body of that school and shall not be divided.

school district reorganization student body funds property division county committee relocation of district boundaries school enrollment changes proportionate share funds transfer student obligations organized student body devises and bequests gift division

(Repealed and added by Stats. 1980, Ch. 1192, Sec. 2.)

Section § 35565

If school districts in California disagree over dividing funds, property, or responsibilities, a board of arbitrators will be appointed to settle the dispute. This board will include representatives from each district and additional members chosen by the county superintendent to ensure an odd number. The districts can agree to have one person serve as the sole arbitrator. The costs of arbitration are shared equally between the districts. The arbitrator's decision is final and must be followed by the districts involved.

If a dispute arises between the governing boards of the districts concerning the division of funds, property, or obligations, a board of arbitrators shall be appointed which shall resolve the dispute. The board shall consist of one person selected by each district from which territory is withdrawn pursuant to a reorganization action under this chapter, one person selected by each district of which territory has become a part pursuant to that reorganization action, and either one or two persons, such that the board of arbitrators contains an odd number of persons, appointed by the county superintendent of schools of the county in which the districts are located. The districts involved may mutually agree that a person appointed as arbitrator by the county superintendent of schools may act as sole arbitrator of the matters to be submitted to arbitration. The necessary expenses and compensation of the arbitrators shall be divided equally between the districts, and the payment of the portion of the expenses is a legal charge against the funds of the school districts. The arbitrator or arbitrators shall make a written finding on the matter submitted to arbitration. The written finding and determination of a majority of the board of arbitrators is final and binding upon the school districts submitting the question to the board of arbitration.

school districts dispute resolution division of funds property division obligations board of arbitrators county superintendent arbitration process reorganization action final decision binding decision shared expenses written finding legal charge against funds sole arbitrator

(Amended by Stats. 1991, Ch. 409, Sec. 2.)

Section § 35566

This law section says that when school district boundaries change, resulting in exchanges of property tax revenues, the process for handling these exchanges follows a specific tax code rule. This is especially true if any of the districts involved only get the minimum funding allowed by the state constitution.

Notwithstanding any other provision of this article, exchanges of property tax revenues between school districts as a result of an action to reorganize shall be determined pursuant to subdivision (i) of Section 99 of the Revenue and Taxation Code if one or more affected districts receive only basic aid apportionments required by Section 6 of Article IX of the California Constitution.

property tax revenue school district reorganization basic aid apportionments tax code rule affected school districts California Constitution Article IX district boundary changes revenue exchanges minimum funding Section 6 Article IX Revenue and Taxation Code Section 99 school funding

(Amended by Stats. 2016, Ch. 186, Sec. 13. (AB 2659) Effective January 1, 2017.)