California Education Code

§ 35576

EDC § 35576 Effective Jan 1, 2017Div. 3 · Title 2 · Part 21 · Ch. 3 · Art. 8

Statute text

(a)If territory is taken from one school district and annexed to, or included in, a new or acquiring district by any procedure, and the area transferred contains real property, the new or acquiring district shall take possession of the real property, pursuant to paragraph (1) of subdivision (a) of Section 35560, on the day when the action to reorganize becomes effective for all purposes. The reorganized territory shall cease to be liable for the bonded indebtedness of the school district of which it was formerly a part, and shall automatically assume its proportionate share of the outstanding bonded indebtedness of any school district of which it becomes a part.

(b)The new or acquiring district shall be liable for the greater of the amounts determined under provisions of paragraph (1) or (2), or the amount determined pursuant to a method prescribed under Section 35738.

(1)The proportionate share of the outstanding bonded indebtedness of the original district, which proportionate share shall be in the ratio that the total assessed valuation of the transferring territory bears to the total assessed valuation of the original district in the year immediately preceding the date on which the action to reorganize is effective for all purposes. This ratio shall be used each year until the bonded indebtedness for which the new or acquiring district is liable has been repaid.

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Legislative history

Amended by Stats. 2016, Ch. 186, Sec. 16. (AB 2659) Effective January 1, 2017.