35570-35579

EDUCATION CODE
SECTION 35570-35579




35570.  This article applies only to the reallocation of bonded
indebtedness of a school district on general obligation bonds under
one of the following conditions:
   (a) The bonded indebtedness was approved by the voters prior to
July 1, 1978.
   (b) The bonded indebtedness was incurred for the acquisition or
improvement of real property and was approved on or after July 1,
1978, by two-thirds of the votes cast by the voters voting on the
proposition.
   (c) The bonded indebtedness was incurred for the acquisition or
improvement of real property and was approved on or after July 1,
1978, by 55 percent of the votes cast by the voters voting on the
proposition at a regularly scheduled election or a statewide special
election.



35571.  When a school district is created, annexed, or abolished, or
the boundaries thereof changed, the liability to taxation for the
outstanding bonded indebtedness of the district or the territory
affected thereby is as provided in this article. The authorities
whose duty it is to levy taxes for the payment of principal and
interest on the outstanding bonds shall levy the taxes upon the
districts affected in such proportions as are provided in, or are
determined under, the authority of this article.



35572.  No territory shall be taken from any school district having
any outstanding bonded indebtedness and made a part of another
district where the action, if taken, would so reduce the last
equalized assessed valuation of a district from which the territory
was taken that the outstanding bonded indebtedness of the district
would exceed 5 percent of the assessed valuation remaining in the
district for each level maintained, on the date the reorganization is
effective pursuant to Section 35766.



35573.  When any school district is in any manner merged with one or
more school districts so as to form a single district by any
procedure, the district so formed is liable for all of the
outstanding bonded indebtedness of the districts united or merged.




35574.  Notwithstanding any other provision of this code, for the
purposes of applying the State School Building Aid Law of 1952,
Chapter 8 (commencing with Section 16000) of Part 10, the amount of
outstanding bonded indebtedness, exclusive of interest, of the
divided districts which is equal to the liability incurred by the
acquiring district pursuant to Section 35576 shall be considered a
liability of the acquiring district for purposes of computing bonding
capacity of the district.



35575.  When territory is taken from one school district and annexed
to another school district and the area transferred contains no
public school property or buildings, the territory shall drop any
liability for outstanding bonded indebtedness in the district of
which it was formerly a part and shall automatically assume its
proportionate share of the outstanding bonded indebtedness of the
district of which it becomes a part.



35576.  (a) When territory is taken from one district and annexed
to, or included in, another district or a new district by any
procedure and the area transferred contains public school buildings
or property, the district to which the territory is annexed shall
take possession of the building and equipment on the day when the
annexation becomes effective for all purposes. The territory
transferred shall cease to be liable for the bonded indebtedness of
the district of which it was formerly a part and shall automatically
assume its proportionate share of the outstanding bonded indebtedness
of any district of which it becomes a part.
   (b) The acquiring district shall pay the original district the
greatest of the amounts determined under provisions of paragraphs (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 which 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
annexation is effective for all purposes. This ratio shall be used
each year until the bonded indebtedness for which the acquiring
district is liable has been repaid.
   (2) That portion of the outstanding bonded indebtedness of the
original district which was incurred for the acquisition or
improvement of school lots or buildings, or fixtures located therein,
and situated in the territory transferred.
   (c) The county board of supervisors shall compute for the
reorganized district an annual tax rate for bond interest and
redemption which will include the bond interest and redemption on the
outstanding bonded indebtedness specified in paragraph (1) or (2) of
subdivision (b) or the amount determined pursuant to a method
prescribed under Section 35738. The county board of supervisors shall
also compute tax rates for the annual charge and use charge
prescribed by former Sections 1822.2 and 1825 as they read on July 1,
1970 when such charges were established prior to November 23, 1970.
All such tax rates shall be levied in excess of any other ad valorem
property tax authorized or required by law and shall not be included
in the computation of the limitation specified in subdivision (a) of
Section 1 of Article XIII A of the California Constitution.



35577.  Whenever an existing school district having authorized but
unsold bonds is completely divided between two or more districts so
that the existing district ceases to exist, pursuant to any provision
of this chapter, the board of supervisors shall, prior to the date
the action is effective for the purposes of Section 35534, make and
enter an order in the minutes of its proceedings that the
authorization to issue the unsold bonds be divided between the
districts in the ratio which the assessed valuation of the territory
transferred to the districts bears to the total assessed valuation of
the former district. The bonds, if issued by any new district, shall
be considered a liability of the new district for purposes of
computing the bonding capacity of the new district when applying the
State School Building Aid Law of 1952, Chapter 8 (commencing with
Section 16000) of Part 10.



35578.  Any unsold bonds of an elementary, high, or unified school
district which is included as a whole in a new school district
through any kind of reorganization may be issued by the board of
supervisors in the name of the new district and the proceeds derived
upon the sale thereof shall be the funds of the new district.
However, the proceeds derived upon the sale thereof shall be expended
only for the purpose, or purposes, for which such bonds were
authorized.


35579.  Any unsold bonds of an elementary, high, or unified school
district which is included as a whole in a new school district
through any kind of reorganization, if issued by the board of
supervisors in the names of the old districts, shall be considered a
liability of the new district for purposes of computing the bonding
capacity of the new district when applying the State School Building
Aid Law of 1952, Chapter 8 (commencing with Section 16000) of Part
10.