Bill Text: CA AB1045 | 2011-2012 | Regular Session | Introduced

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Bill Title: Local government: bonds.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2011-06-22 - In committee: Set first hearing. Failed passage. Reconsideration granted. [AB1045 Detail]

Download: California-2011-AB1045-Introduced.html

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BILL NUMBER: AB 1045	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Norby

                        FEBRUARY 18, 2011

   An act to add Section 53593.5 to the Government Code, relating to
local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1045, as introduced, Norby. Local government: bonds.
   Existing law prohibits an investment firm, as defined, from having
specified interests in a new issuance of bonds from a local agency.
   This bill would prohibit a local agency from entering into a
financial advisory, legal advisory, underwriting, or similar
relationship with an individual or firm, with respect to a bond issue
that requires voter approval on or after January 1, 2012, if that
individual or firm, or an employee, agent, or person related to an
employee or agent of the individual or firm, provided or will provide
bond campaign services, as defined, to the bond campaign.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 53593.5 is added to the Government Code, to
read:
   53593.5.  (a) A local agency shall not enter into a financial
advisory, legal advisory, underwriting, or other similar relationship
with an individual or firm, with respect to a new issue of bonds
that requires voter approval on or after January 1, 2012, if that
individual or firm, or an employee, agent, or person related to an
employee or agent of the individual or firm, provided or will provide
bond campaign services to the bond campaign.
   (b) For purposes of this section, "related" includes, but is not
limited to, a family relationship by blood or marriage, a financial
relationship, an affiliation between business associations, or
business associations with directors or principals in common.
   (c) (1) For purposes of this section, "bond campaign services"
includes fundraising, public opinion polling, election strategy and
management, organization of campaign volunteers, get out the vote
services, development of campaign literature, and advocacy materials.

   (2) "Bond campaign services" does not include either of the
following:
   (A) Advice and support related to the preparation of tax rate
statements and other documentation required for inclusion in the
voter pamphlet published by the applicable county registrar of
voters.
   (B) Public opinion polling that is conducted before a bond measure
is placed on the ballot for the purposes of gathering information
regarding, and evaluating the potential for, the adoption of the bond
measure by the electorate.