Today's Law As Amended


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SB-1067 Local agencies: refunding bonds: pension obligations.(2019-2020)



As Amends the Law Today


SECTION 1.

 Section 53552 of the Government Code is amended to read:

53552.
 (a)  Whenever the legislative body of a local agency determines that prudent management of the fiscal affairs of the local agency requires that it issue refunding bonds under the provisions of this article, except as required by subdivision (b),  it may do so without submitting the question of the issuance of the refunding bonds to a vote of the qualified electors of the local agency, unless the legislative body determines to submit the question to a vote, in which case the election shall be held in accordance with the principal act pursuant to which the bonds to be refunded were issued. Refunding bonds shall not be issued if the total net interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds exceeds the total net interest cost to maturity on the bonds to be refunded plus the principal amount of the bonds to be refunded, provided that this limitation shall not apply to bonds issued to refund indebtedness imposed by subdivision (b) of Section 53550 as a result of the court decision in Aerospace Corporation v. State Board of Equalization, 218 Cal. App. 3d 1300. Subject to this limitation, the principal amount of the refunding bonds may be more than, less than, or the same as the principal amount of the bonds to be refunded.
(b) Notwithstanding any other law, if the refunding bonds are used to refund bonds issued on or after January 1, 2021, for the purpose of refunding pension obligations and the maturity date of the bonds to be refunded is more than 36 months after the date the bonds are issued, the refunding bonds shall be approved by 55 percent of the voters of the local agency voting on the proposition that is issuing the indebtedness.

SEC. 2.

 Section 53553 of the Government Code is amended to read:

53553.
 When the legislative body determines to issue refunding bonds pursuant to this article, it shall adopt a resolution providing for the issuance of such bonds. Such resolution  The resolution shall not be placed on the consent calendar of a public hearing. The resolution  shall:
(a) Describe the bonds being refunded; and the date on which it is anticipated that the exchange, purchase or call and redemption necessary to effect the refunding shall occur;
(b) Fix the date of such refunding bonds;
(c) Designate the denomination or denominations thereof;
(d) Fix the rate or rates of interest to be borne by such refunding bonds, which rate or rates shall not exceed 8 percent per annum, payable semiannually, except that interest for the first year from date of issuance may be payable at the end of said year;
(e) Fix the maturity dates of such refunding bonds, which shall not exceed 40 years from the date of such refunding bonds, or the latest maturity date of the bonds being refunded, whichever occurs earlier;
(f) Designate the place or places of payment of both principal and interest;
(g) Prescribe the form of such refunding bonds; and
(h) State the designated costs of issuing the refunding bonds.
(i) (1) Be available on the internet website of the legislative body for 30 consecutive days prior to the issuance of the bonds.
(2) The requirement prescribed by paragraph (1) shall apply to bonds issued on and after January 1, 2021, for the purpose of refunding pension obligations, if the final maturity date of the bonds is more than 36 months after the date the bonds are issued.
SEC. 3.
 The Legislature finds and declares that Section 2 of this act, which amends Section 53553 of the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
By requiring that resolutions for the issuance of refunding bonds be available on the internet website of the legislative body for 30 days, this bill increases access to public records and furthers the purposes of (7) of subdivision (b) of Section 3 of Article I of the California Constitution
SEC. 4.
 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district under this act would result from a legislative mandate that is within the scope of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution.