Bill Text: CA SB623 | 2009-2010 | Regular Session | Amended

California Senate Bill 623 (Prior Session Legislation)

Bill Title: Local government: bonds.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2010-08-20 - Motion failed in committee. (Ayes 1. Noes 3. Page 4742.) [SB623 Detail]

Download: California-2009-SB623-Amended.html

BILL NUMBER: SB 623	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 9, 2010
	AMENDED IN ASSEMBLY  MAY 24, 2010
	AMENDED IN SENATE  MAY 5, 2009

INTRODUCED BY   Senator Ashburn

                        FEBRUARY 27, 2009

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


	LEGISLATIVE COUNSEL'S DIGEST


   SB 623, as amended, Ashburn. 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,
  an underwriting  or similar relationship with an
individual or firm, with respect to a bond issue that requires voter
approval on or after January 1, 2011, 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 is prohibited from entering into
 a financial advisory, legal advisory, underwriting,
  an underwriting  or similar relationship with an
individual or firm, with respect to a bond issue that requires voter
approval on or after January 1, 2011, 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 structures, or the
sharing of one or more common principals.
   (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.