California Code, Education Code - EDC § 56836.03

(a) On or after January 1, 1998, each special education local plan area shall submit a revised local plan.  Each special education local plan area shall submit its revised local plan not later than the time it is required to submit its local plan pursuant to subdivision (b) of Section 56100 and the revised local plan shall meet the requirements of Chapter 3 (commencing with Section 56205).

(b) Until the board has approved the revised local plan and the special education local plan area begins to operate under the revised local plan, each special education local plan area shall continue to operate under the programmatic, reporting, and accounting requirements prescribed by the State Department of Education for the purposes of Chapter 7 (commencing with Section 56700) as that chapter existed on December 31, 1998.  The department shall develop transition guidelines, and, as necessary, transition forms, to facilitate a transition from the reporting and accounting methods required for Chapter 7 (commencing with Section 56700) as that chapter existed on December 31, 1998, and related provisions of this part, to the reporting and accounting methods required for this chapter.  Under no circumstances shall the transition guidelines exceed the requirements of the provisions described in paragraphs (1) and (2).  The transition guidelines shall, at a minimum, do the following:

(c) Commencing with the 1997-98 fiscal year, through and including the fiscal year in which equalization among special education local plan areas has been achieved, the board shall not approve any proposal to divide a special education local plan area into two or more units, unless the division has no net impact on state costs for special education;  provided, however, that the board may approve a proposal that was initially submitted to the department prior to January 1, 1997.