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HomeGovernment CodeDiv. 1Ch. 3Art. 3§ 23334 County Debt Distribution Rules

§ 23334 County Debt Distribution Rules

Government Code·California
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§ 23334 County Debt Distribution Rules

Key Takeaways

  • •When a new county is created, the old county and the new county must fairly split the old county's debts and property.
  • •The new county might have to pay the old county money, either all at once or in parts, for property it gets.
  • •The new county can charge extra taxes or fees to help pay for these costs.
  • •The value of property and debts is based on the latest official records before the new county is created.

Example

Imagine a big town splits into two smaller towns. The original town has a park, a library, and some debt from building a school. The new town gets part of the park and library but must help pay for the school debt.

The new town might pay the original town some money for the park and library. It could also charge its residents a little extra in taxes to help pay for the school debt.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 23334 County Debt Distribution Rules

Except as otherwise provided in this article, the commission may, in determining a fair, just and equitable distribution of the indebtedness of each affected county, as between each affected county and the proposed county, provide for one or more of the following: (a) The payment of a fixed or determinable amount of money by the proposed county either as a lump sum or in installments, for the acquisition, transfer, use or right of use of any part of the property, real or personal, owned by an affected county at the time a petition was filed pursuant to Section 23325. (b) The levying or fixing and the collection in the proposed county of (1) special, extraordinary or additional taxes or assessments, or (2) special, extraordinary or additional service charges, rentals or rates, or (3) both; or the issuance and sale of bonds for purposes of providing for any payment required pursuant to subdivision (a) of this section. (c) The imposition, exemption, transfer, division or apportionment, as between any affected county and the proposed county, of liability for payment of all or any part of principal, interest or any other amounts which shall become due on account of all or any part of any bonds, including revenue bonds, of an affected county which are outstanding or authorized, at the time a petition is filed pursuant to Section 23325, or other contracts or obligations of an affected county; and the levying or fixing and the collection in the proposed county of any (1) taxes or assessments, or (2) service charges, rentals or rates, or, (3) both, as may be necessary to provide for such payment. In making its determinations, the commission shall ascertain the current indebtedness of each affected county. It shall also ascertain (a) the total assessed value of all property located in each affected county; and (b) the assessed value of the territory of the proposed county. The assessed values used by the commission shall be those shown on the last equalized assessment roll of each affected county. The commission shall also identify and determine the location and value of all real and personal property owned by each county and located within the boundaries of the proposed county. Any real and personal property identified by the commission pursuant to this section shall become property of the proposed county, should it be established as provided in this chapter, upon settlement of the indebtedness in the manner specified by the commission. (d) For purposes of this section, the unfunded liability of a county retirement system shall be deemed an indebtedness. (Amended by Stats. 1979, Ch. 370.)

Last verified: January 22, 2026

Key Terms

retirementliabilityacquisitioncommissioncontractterminationpropertyport

Related Statutes

  • § 23260 County Debt Distribution Rules
  • § 56886 Reorganization Terms And Conditions
  • § 23337 County Formation Hearing Process
  • § 31528 Retirement Board Conflict Rules
  • § 31542 Retirement Benefit Compensation Review

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 23334.
View Official Source