SECTIONS 74290 - California Statutes

EDUCATION CODE

SECTION 74290

74290. (a) This article shall apply only to the reallocation of
bonded indebtedness incurred prior to July 1, 1978.
(b) When a district is reorganized, the liability for 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.
(c) No territory shall be taken from any 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
the level maintained, on the date the reorganization is effective.
(d) When any district is in any manner merged with one or more
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.
(e) When territory is taken from one district and transferred to
another district and the area transferred contains no college
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.
(f) When territory is taken from one district and transferred to
another district by any procedure and the area transferred contains
college buildings or property, the district to which the territory is
annexed shall take possession of the building and the 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.
(g) The acquiring district shall pay the original district the
greatest of the amounts determined under paragraph (1) or (2).
(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.
(h) The county board of supervisors shall compute for the
reorganized districts 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 (g). The tax rate 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) or Section 1 of Article XIII A of the California
Constitution.