Today's Law As Amended


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AB-2707 Local government finance: COVID-19 Credit Facility.(2019-2020)



As Amends the Law Today


SECTION 1.

 Section 12332.5 is added to the Government Code, to read:

12332.5.
 (a) The Treasurer shall establish the COVID-19 Credit Facility. The credit facility shall support cashflow borrowing by local governments, including cities, counties, and joint powers authorities, to better manage cashflow pressures created by the COVID-19 public health emergency as described in this section.
(b) The COVID-19 Credit Facility shall assist local governments, irrespective of population size, with securing the purchase of newly-issued tax anticipation notes, tax and revenue anticipation notes, bond anticipation notes, and other short-term notes through the California Debt and Investment Advisory Commission.
(c) The COVID-19 Credit Facility shall establish methods by which cities with a population of less than 250,000 and counties with a population of less than 500,000 may access the Municipal Liquidity Facility established by the Federal Reserve System and so make available proceeds from the facility to otherwise ineligible local governments and other political subdivisions through the pooling of debt or by submitting an application on behalf of those entities.
(d) The Treasurer shall adopt and publish guidelines that allow local governments to quickly and easily access services from the COVID-19 Credit Facility.
SEC. 2.
 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order that California local governmental entities may take advantage of the resources of the Municipal Liquidity Facility established by the Federal Reserve System, it is necessary that this bill take immediate effect.