Bill Text: CA SB775 | 2011-2012 | Regular Session | Introduced

California Senate Bill 775 (Prior Session Legislation)

Introduced

Bill Title: Bonds.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-01-31 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB775 Detail]

Download: California-2011-SB775-Introduced.html

BILL NUMBER: SB 775	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Walters

                        FEBRUARY 18, 2011

   An act to add Sections 16724.45 and 16730.5 to the Government
Code, relating to bonds.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 775, as introduced, Walters. Bonds.
   The existing State General Obligation Bond Law contains procedures
for use in authorizing the issuance and sale and providing for the
repayment of state general obligation bonds. Existing law also
requires prescribed accountability measures to be included in local
bond measures.
   This bill would incorporate a requirement into the State General
Obligation Bond Law that would require a committee created by a bond
act to periodically prepare a report on, among other topics, the
amount of bonds that the committee has issued in the past five years
and the likelihood that the committee will issue any additional bonds
in the future. This bill would require that this report is submitted
to standing committees in the Legislature with responsibility for
budget and fiscal affairs. This bill would specifically authorize
house committees to recommend to the Legislature, based upon the
contents of that report, that the amount of bonds authorized by the
act should be reduced if they conclude either that it is unlikely
that the bond committee will issue any additional bonds in the future
or that the amount of bonds authorized by the act is excessive or
unnecessary in relation to the purpose for which the bond act was
passed.
   This bill would also incorporate a requirement into the State
General Obligation Bond Law that would prohibit a committee created
by a bond act from issuing any bonds in any given calendar year
unless that committee first notifies the Legislature no later then a
specified date of that calendar year of its intent to issue bonds in
that calendar year.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 16724.45 is added to the Government Code,
immediately following 16724.4, to read:
   16724.45.  (a) The committee shall, once every five years, report
to the standing committees in the Legislature with responsibility for
budget and fiscal affairs on all of the following:
   (1) The amount of bonds authorized by the bond act.
   (2) The amount, if any, of bonds issued in the past five years
pursuant to that bond act.
   (3) The amount of debt currently outstanding on those bonds that
have been issued.
   (4) Whether, and to what extent, the current amount of bonds
issued have been adequate to accomplish the purpose for which the
bond act was passed.
   (5) The likelihood that the committee will issue any additional
bonds in the next five years, or any time thereafter.
   (b) Upon receiving and reviewing this report, the committees may
recommend to the Legislature to reduce the amount of debt authorized
by that act accordingly, pursuant to Section 1 of Article XVI of the
California Constitution, if it concludes either of the following:
   (1) It is unlikely that the committee will issue any additional
bonds pursuant to that act.
   (2) The amount of bonds authorized by the act is excessive, or
otherwise unnecessary, in relation to the purpose for which the bond
act was passed.
  SEC. 2.  Section 16730.5 is added to the Government Code, to read:
   16730.5.  In any given calendar year, the committee shall not
issue any bonds, unless that committee first notifies the Legislature
no later then February 1 of that calendar year of its intent to
issue bonds in that calendar year.