AB 745: School districts: reorganization: state board approval: qualified special taxes.

Session Year: 2025-2026
House: Assembly
Latest Version Date: 2026-06-15

Current Status:

In Progress

(2026-06-22: Re-referred to Coms. on ED. and L., P.E. & R.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Enacted

Version:

(1)Upon receipt of a petition or resolution seeking reorganization of a school district, existing law requires a county committee on school district reorganization to hold one or more public hearings on the petition or resolution and, following the hearing or hearings, to grant or deny the petition. If the county committee grants the petition, existing law requires it to adopt a tentative recommendation and hold one or more further public hearings in the area proposed for reorganization. Following the last public hearing, existing law authorizes the county committee to adopt a final recommendation and requires the county committee to (A) transmit that recommendation with the petition or resolution to the State Board of Education for hearing, (B) transmit the petition to the state board and order the reorganization granted, or (C) transmit the petition to the state board and order that an election be held. Existing law authorizes an action of the county committee under (B) or (C) to be appealed to the state board, as specified.

Existing law authorizes the state board to approve proposals for the reorganization of school districts if the state board determines that certain conditions are substantially met, and also authorizes the state board to approve a proposal for the reorganization of school districts if the state board determines that it is not practical or possible to apply the specified criteria literally, and that the circumstances with respect to the proposal provide an exceptional situation sufficient to justify approval of the proposal. If the state board approves the plans and recommendations for the unification or other reorganization of the school districts in any area, existing law requires the county superintendent of schools, within 35 days after being notified of that approval, to call an election in the territory of the districts as determined by the state board, as specified.

This bill, notwithstanding any other law, and until January 1, 2030, would authorize the state board to approve a proposal for the reorganization of school districts if the governing board of a school district that is an excess tax entity, as specified, with an enrollment of fewer than 10,000 pupils and the governing board or body of a city, county, special district, or local agency formation commission with a population of more than 10,000 residents that adopted a resolution seeking reorganization of the original school district, have executed one or more legally binding and enforceable written agreements intended to effectuate the reorganization, and the state board determines that the agreements satisfactorily address the specified criteria and provide an exceptional situation sufficient to justify approval of the proposed reorganization.

(2)Existing law prohibits the reorganization of a school district or districts from affecting the classification of certificated employees already employed by a school district affected by the reorganization and from affecting the rights of persons employed in positions not requiring certification qualifications to retain the salary, leaves, and other benefits that they would have had if the reorganization had not occurred. Existing law requires that persons employed in positions not requiring certification qualifications in a school district whose territory is included in a unification of districts continue as employees of the unified school district for not less than 2 years and prohibits those persons from being deprived, by reason of the unification, of any benefit that they would have had if the unification had not taken place.

When a school district is reorganized as described in this bill, the bill would (A) require, in addition to the above-prescribed prohibitions, both permanent and probationary certificated and noncertificated employees who elect to remain employees of reorganized portion of the divided district to have the same rights as persons employed in positions not requiring certification qualifications in a school district whose territory is included in a unification of districts, including, but not limited to, continuing as employees of the reorganized portion of the divided district for not less than 2 years and (B) require, notwithstanding any other law, any collective bargaining agreement in effect immediately before the effective date of reorganization to remain in full force and effect until the expiration or renewal of the agreement, as specified.

(3)When a school district is reorganized and the allocation of funds, property, and obligations are not fixed by terms, conditions, or recommendations as provided by law, existing law requires the funds, property, and obligations of a former district to be allocated in a specified manner. Existing law authorizes a school district to impose qualified special taxes, as defined, subject to specified constitutional and statutory provisions.

When a school district is reorganized as described in this bill, the bill would authorize the reorganized portion of the divided school district and the remaining portion of the divided school district, as defined, to continue to impose within their respective geographical boundaries any qualified special taxes imposed in the boundaries of the original school district, as defined, before it was divided.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The California Global Warming Solutions Act of 2006 authorizes the state board to include the use of market-based compliance mechanisms in regulating those emissions. The implementing regulations adopted by the state board provide for the direct allocation of greenhouse gas allowances to electrical corporations pursuant to a market-based compliance mechanism.Existing law vests the Public Utilities Commission with regulatory jurisdiction over public utilities, including electrical corporations. Existing law, except as provided, requires revenues received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to be credited directly to residential, small business, and emissions-intensive trade-exposed retail customers of the electrical corporation, commonly known as the California Climate Credit.This bill would require the credit provided to residential customers of an electrical corporation to be provided on the bills of those customers for the months of July, August, and September of each year, or as otherwise directed by the commission to address extreme, unforeseen, and temporary circumstances. The bill would require the credit to be volumetric, rather than independent of consumption.Under existing law, a violation of the Public Utilities Act, or of an order, decision, rule, direction, demand, or requirement of the commission, is a crime.Because the provisions of this bill would be part of the Public Utilities Act, and a violation of a commission action implementing its requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.

Discussed in Hearing