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AB-1045 Local government: bonds.(2011-2012)

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CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 1045

Introduced  by  Assembly Member Norby

February 18, 2011

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


LEGISLATIVE COUNSEL'S DIGEST


AB 1045, as introduced, Norby. 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, or similar relationship with an individual or firm, with respect to a bond issue that requires voter approval on or after January 1, 2012, 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   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 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, 2012, 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 associations, or business associations with directors or principals in common.
(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.