The following has special meaning:
green underline denotes added text
red struck out text denotes deleted text
Powered by State Net
2013 CA A 621
Author: Wagner
Version: Amended
Version Date: 02/24/2014

AMENDED IN ASSEMBLY March 19, 2013

AMENDED IN ASSEMBLY April 25, 2013

AMENDED IN SENATE June 04, 2013

AMENDED IN SENATE February 24, 2014

CALIFORNIA LEGISLATURE--2013-2014 REGULAR SESSION

Assembly Bill

No. 621

Introduced by Assembly Member Wagner

February 20, 2013

(Coauthors: Assembly Members Beth Gaines and Harkey)

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 Required: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Immediate Effect NO Urgency: NO Tax Levy: NO Election: NO Usual Current Expenses: NO Budget Bill: NO Prop 25 Trailer Bill: 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.


Copyright © 2019 State Net