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AB-621 Local government: bonds.(2013-2014)



Current Version: 02/24/14 - Amended Senate         Compare Versions information image


AB621:v95#DOCUMENT

Amended  IN  Senate  February 24, 2014
Amended  IN  Senate  June 04, 2013
Amended  IN  Assembly  April 25, 2013
Amended  IN  Assembly  March 19, 2013

CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Bill
No. 621


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   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.