CHAPTER 10.7. Conduit Financing Transparency and Accountability [5870 - 5872]
( Chapter 10.7 added by Stats. 2009, Ch. 557, Sec. 1. )
As used in this chapter, the following definitions apply:
(a) “Conduit financing” means the issuance of conduit revenue bonds.
(b) “Conduit financing provider” means any county, city, city and county, public district, public authority, public corporation, nonprofit corporation, joint powers authority, or other statutorily constituted public entity that issues one or more conduit revenue bonds.
(c) “Conduit revenue bond” means any municipal security the proceeds of which are loaned to any nongovernmental borrower, including, but not limited to, persons, for-profit corporations, nonprofit corporations pursuant to Section 501(c)(3) of the
Internal Revenue Code, partnerships, and other legal entities for purposes that are permitted for qualified private activity bonds under applicable federal law.
(Added by Stats. 2009, Ch. 557, Sec. 1. (SB 99) Effective January 1, 2010.)
A conduit financing provider shall make the following information available on its Internet Web site, to the extent that it maintains an Internet Web site:
(a) Agendas for regular meetings posted by a conduit financing provider pursuant to Section 54954.2.
(b) Notices of special meetings posted by a conduit financing provider pursuant to Section 54956.
(c) Notices of meetings of a conduit financing provider provided pursuant to Section 11125.
(d) Staff reports on the items included on the agendas listed in subdivisions (a), (b), and (c).
(e) Minutes of the meetings for which the agendas listed in subdivisions (a), (b), and (c) were produced.
(f) Audits of the conduit financing provider’s accounts and records.
(g) Copies of reports of the conduit financing provider’s annual financial transactions required pursuant to Section 12460 or 12463.
(h) Annual lists of applications approved for financing by the governing body of the conduit financing provider for any fiscal year in which at least one application is approved.
(Added by Stats. 2009, Ch. 557, Sec. 1. (SB 99) Effective January 1, 2010.)
(a) When an audit of a conduit financing provider’s accounts and records is required by law, in addition to any other requirements, the audit shall include all of the following:
(1) A disclosure of fees imposed on borrowers by, or on behalf of, the conduit financing provider.
(2) A disclosure of expenditures related to those fees made by or on behalf of the conduit financing provider.
(3) The dollar amount and nature of these fees and expenses.
(4) A disclosure of the amount of bonds authorized but unsold at
the end of the time period covered by the audit.
(5) A disclosure of the amount of debt the conduit financing provider has issued during the period covered by the audit and the amount of debt still outstanding at the end of the time period covered by the audit.
(b) An audit of a conduit financing provider’s accounts and records shall be made publicly available pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000)).
(c) Notwithstanding any other reporting periods permitted pursuant to subdivision (f) of Section 6505, Section 26909, or any other provision of law, a conduit financing provider shall annually conduct an audit of its accounts and records and report the results of
that audit to the Controller. The minimum requirements of the annual audit and report shall be prescribed by the Controller and conform to generally accepted auditing standards.
(Amended by Stats. 2021, Ch. 615, Sec. 139. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Section 463 of Stats. 2021, Ch. 615.)