Bill Text: CA AB1192 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Local government: powers.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1192 Detail]

Download: California-2009-AB1192-Amended.html

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BILL NUMBER: AB 1192	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 20, 2009

INTRODUCED BY   Assembly Member Audra Strickland

                        FEBRUARY 27, 2009

   An act to add Section 37113 to the Government Code, relating to
cities.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1192, as amended, Audra Strickland. Cities: powers.
   Existing law authorizes a board of trustees, city council, or
other governing body of a city, defined as a legislative body, to
pass ordinances not in conflict with state or federal law and the
state or federal constitution.
   This bill would prohibit a legislative body from  passing
an ordinance creating an entity for the purpose of having the entity
issue debt to fund a public improvement project with the legislative
body making lease payments or other periodic payments to the entity
that are used to repay the entity's debt  selling or
leasing any existing public improvement to a private or public
entity, including any entity controlled by the city, for the purposes
of renting or leasing back, or repurchasing through installment
payments that existing public   improvement  . This
bill would also declare that this prohibition is a matter of
statewide concern, thus making it applicable to charter and general
cities.
   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 37113 is added to the 
 Government Code   , to read:  
   37113.  The legislative body of a city, including a charter city
or city and county, shall not sell or lease any existing public
improvement to a private or public entity, including an entity
controlled by the city, for the purposes of renting or leasing back,
or repurchasing through installment payments that existing public
improvement. 
   SEC. 2.    The Legislature finds and declares that
the usual purpose of those arrangements is to evade the
constitutional requirement of voter approval for new debt. The
Legislature further finds and declares that increasing the debt to be
serviced by California taxpayers without their approval impairs the
financial health of cities, and the state as a whole, and therefore,
this act pertains to an issue of statewide concern and is not purely
a municipal affair, as that term is used in Section 5 of Article XI
of the California Constitution.  
  SECTION 1.    Section 37113 is added to the
Government Code, to read:
   37113.  A legislative body shall not create an entity for the
purpose of having the entity issue bonds or any other debt instrument
to fund a public improvement project with the legislative body
making lease payments or other periodic payments to the entity that
are used to repay the bonds or debt instrument.  
  SEC. 2.    The Legislature finds and declares that
the financial stability of individual cities, as impacted by their
engaging in certain kinds of financial arrangements to incur debt,
effects the financial health of the state as a whole, and therefore
this act pertains to an issue of statewide concern and does not
relate to municipal affairs, as that term is used in Section 5 of
Article XI of the California Constitution.