Bill Text: CA AB621 | 2013-2014 | Regular Session | Amended

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Bill Title: Local government: bonds.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Engrossed - Dead) 2014-06-25 - In committee: Set, final hearing. Hearing canceled at the request of author. From committee without further action pursuant to Joint Rule 62(a). [AB621 Detail]

Download: California-2013-AB621-Amended.html

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BILL NUMBER: AB 621	AMENDED
	BILL TEXT

	AMENDED IN SENATE  FEBRUARY 24, 2014
	AMENDED IN SENATE  JUNE 4, 2013
	AMENDED IN ASSEMBLY  APRIL 25, 2013
	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Wagner
   (Coauthors: Assembly Members Beth Gaines and Harkey)

                        FEBRUARY 20, 2013

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 621, as amended, Wagner. Local government: bonds.
   Existing law prohibits an investment firm, as defined, from having
specified interests in a new issue 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, 2014, if that
individual or firm provided or will provide bond campaign services to
the bond campaign.  The bill would specifically exempt from that
prohibition a relationship between a local agency and an individual
or firm entered into before the public agency takes action to place a
new issue of bonds on the ballot for voter approval on or after
January 1, 2014. The bill would also prohibit   a local
agency from entering into an underwriting relationship with an
individual or firm, with respect to a new issue of bonds that
requires voter approval on or after January 1, 2014, if the local
agency has a financial advisory relationship with that individual or
firm with respect to the same issue of bonds.  The bill would
define certain terms for those purposes.
   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)  (1)    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, 2014, if that individual or firm provided or will provide
bond campaign services to the bond campaign.  This paragraph does
not apply to a financial advisory, legal advisory, underwriting, or
other similar   relationship between a local agency and an
individual or firm entered into before the public agency takes action
to place a new issue of bonds on the ballot for voter approval on or
after January 1, 2014.  
   (2) A local agency shall not enter into an underwriting
relationship with an individual or firm, with respect to a new issue
of bonds that requires voter approval on or after January 1, 2014, if
the local agency has a financial advisory relationship with that
individual or firm with respect to the same issue of bonds. 
   (b) As used in this section:
   (1) (A) "Bond campaign services" includes fundraising, donation by
the individual or firm to the bond campaign, public opinion polling,
election strategy and management, organization of campaign
volunteers, get-out-the-vote services, development of campaign
literature, and advocacy materials.
   (B) "Bond campaign services" does not include either of the
following:
   (i) 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.
   (ii) 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.
   (2) "Individual" means a person engaged in the business of
providing financial advice, legal advice, underwriting, or other
similar services.