Bill Text: CA AB1388 | 2009-2010 | Regular Session | Chaptered
Bill Title: Local agencies: general obligation bonds.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2009-10-11 - Chaptered by Secretary of State - Chapter 529, Statutes of 2009. [AB1388 Detail]
Download: California-2009-AB1388-Chaptered.html
BILL NUMBER: AB 1388 CHAPTERED
BILL TEXT
CHAPTER 529
FILED WITH SECRETARY OF STATE OCTOBER 11, 2009
APPROVED BY GOVERNOR OCTOBER 11, 2009
PASSED THE SENATE AUGUST 24, 2009
PASSED THE ASSEMBLY AUGUST 27, 2009
AMENDED IN SENATE JUNE 23, 2009
AMENDED IN SENATE JUNE 10, 2009
AMENDED IN ASSEMBLY MAY 11, 2009
INTRODUCED BY Assembly Member Hernandez
FEBRUARY 27, 2009
An act to add Sections 53508.9 and 53509.5 to, and to repeal
Section 53508.5 of, the Government Code, relating to bonds.
LEGISLATIVE COUNSEL'S DIGEST
AB 1388, Hernandez. Local agencies: general obligation bonds.
(1) Existing law requires, subject to a specific exception, the
annual payments of principal and interest on bonds issued by a local
agency, as defined, to be structured to amortize so that the maximum
annual debt service payment on the bonds does not exceed the minimum
annual debt service payment by more than 10%.
This bill would repeal this provision.
(2) Existing law authorizes cities, counties, school districts,
community college districts, and special districts to issue and
refund general obligation bonds secured by a general tax levy and
prescribes the procedures for this purpose. Existing law requires
that the bonds be sold at a public or private sale.
This bill would impose specific duties on a legislative body to
disclose information to the public and the California Debt and
Investment Advisory Commission after it issued bonds under these
provisions.
This bill would also authorize a local agency, as defined, to
issue bonds, without further approval, at a negotiated sale for a
price at, above, or below par value, if the legislative body of the
local agency adopts a specified resolution that includes certain
disclosures before the negotiated sale.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 53508.5 of the Government Code is repealed.
SEC. 2. Section 53508.9 is added to the Government Code, to read:
53508.9. (a) Notwithstanding Section 53508.7, a local agency may
sell bonds at a negotiated sale for a price at, above, or below par
value, as authorized by the legislative body, without further
approval, if the legislative body adopts a resolution before the
negotiated sale, as an agenda item at a public meeting, that includes
all of the following:
(1) Express approval of the negotiated method of sale.
(2) Statement of the reasons for selecting the negotiated method
of sale.
(3) Disclosure of the identity of the bond counsel.
(4) Disclosure of the identity of the bond underwriter and the
financial adviser, if used for the negotiated bond sale. If a bond
underwriter or financial adviser has not been selected at the time
the legislative body adopts the resolution, the legislative body
shall disclose the identity at the public meeting first occurring
after the bond underwriter or financial adviser has been selected.
(5) Estimate of the costs associated with the bond issuance.
(b) For purposes of this section, the following definitions shall
apply:
(1) "Legislative body" means the governing body of a local agency.
(2) "Local agency" means a city, county, city and county, and
special district. "Special district" means an agency of the state
formed for the performance of governmental or proprietary functions
within limited geographic boundaries, and shall not include a school
district or community college district.
SEC. 3. Section 53509.5 is added to the Government Code, to read:
53509.5. After the sale of bonds issued under the authority of
this article, the legislative body shall do both of the following:
(a) Present actual cost information for the sale at its next
scheduled public meeting.
(b) Submit an itemized summary of the costs of the bond sale to
the California Debt and Investment Advisory Commission.
