§ 16154 Conditional Apportionment Voidance Rules

This law says that if a district that got a temporary money grant (conditional apportionment) gets merged into another district before the grant becomes final, the temporary grant is cancelled and the board may have to redo the grant for the new district.

Key Takeaways

•If a district with a conditional grant is merged into another district before the grant is final, the grant is cancelled.
•The board must notify the Controller when the grant is void.
•If the new or remaining district still qualifies, the board can redo the grant, and it can become final if its bond debt is within $25,000 of the required amount.

Example

A small school district gets a conditional grant to build a new library. Before the grant is finalized, the state merges that district into a larger district that does not qualify for any grants.

Because the small district was merged into a district that can’t get a grant, the temporary grant is automatically void. The board must tell the Controller that the grant is cancelled and may have to start a new grant process for the larger district if it qualifies.

How to Calculate

Outstanding bonds ≤ Required bonds + $25,000

Find the amount of bonds the district already owes (Outstanding bonds).
Find the amount of bonds the district is required to have under Section 16058 (Required bonds).
Add $25,000 to the Required bonds amount.
If the Outstanding bonds number is less than or equal to that total, the conditional apportionment can be turned into a final grant.

District A got a conditional apportionment under rule (2). It owes $1,200,000 in bonds. Section 16058 says it needs $1,180,000 in bonds to qualify.

Result: Add $25,000 to the required amount: $1,180,000 + $25,000 = $1,205,000. Since $1,200,000 ≤ $1,205,000, the grant can become final.

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. (Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Key Takeaways

•If a district with a conditional grant is merged into another district before the grant is final, the grant is cancelled.
•The board must notify the Controller when the grant is void.
•If the new or remaining district still qualifies, the board can redo the grant, and it can become final if its bond debt is within $25,000 of the required amount.

Example

A small school district gets a conditional grant to build a new library. Before the grant is finalized, the state merges that district into a larger district that does not qualify for any grants.

How to Calculate

Outstanding bonds ≤ Required bonds + $25,000

Find the amount of bonds the district already owes (Outstanding bonds).
Find the amount of bonds the district is required to have under Section 16058 (Required bonds).
Add $25,000 to the Required bonds amount.
If the Outstanding bonds number is less than or equal to that total, the conditional apportionment can be turned into a final grant.

District A got a conditional apportionment under rule (2). It owes $1,200,000 in bonds. Section 16058 says it needs $1,180,000 in bonds to qualify.

Result: Add $25,000 to the required amount: $1,180,000 + $25,000 = $1,205,000. Since $1,200,000 ≤ $1,205,000, the grant can become final.

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 16154 Conditional Apportionment Voidance Rules

Key Takeaways

Example

How to Calculate

Key Terms

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References