text:
(a) This section shall be known and may be cited as the Water Bill Savings Act.

(b) For purposes of this section, the following terms have the following meanings:

(1) “Bill neutral” means, based on a customer’s recent billing history, the total monetary savings achieved by the customer’s efficiency improvement is projected to be greater than or equal to the efficiency charge on the customer’s monthly water bill.

(2) “Customer” means a person or entity that purchases water from a local agency or its publicly owned utility and is billed for the water by the local agency or its publicly owned utility.

(3) “Customer property” means residential, commercial, industrial, agricultural, or other real property owned, leased, or licensed for occupancy by the customer.

(4) “Efficiency charge” means a charge that is added to the water bill associated with a local agency’s or its publicly owned utility’s water meter at the customer property upon which the water efficiency improvement is located and that is collected in order to pay for an efficiency improvement pursuant to this section.

(5) “Efficiency improvement” means a water efficiency improvement, as defined by the authority. An efficiency improvement shall comply with the lists of eligible projects and project priorities identified in the program guidelines of the CalConserve Water Use Efficiency Revolving Loan Program established pursuant to Division 30 (commencing with Section 81000) of the Water Code. An efficiency improvement shall not include living vegetation.

(6) “Financing costs” means all of the following:

(A) An interest and redemption premium payable on a bond.

(B) The cost of retiring the principal of a bond, whether at maturity, including acceleration of maturity upon an event of default, or upon redemption, including sinking fund redemption.

(C) A cost related to issuing or servicing bonds, including, but not limited to, a servicing fee, trustee fee, legal fee, administrative fee, bond counsel fee, bond placement or underwriting fee, remarketing fee, broker dealer fee, independent manager fee, municipal adviser fee, accounting report fee, engineering report fee, rating agency fee, and payment made under an interest rate swap agreement.

(D) A payment or expense associated with a bond insurance policy, financial guaranty, or a contract, agreement, or other credit enhancement for bonds or a contract, agreement, or other financial agreement entered into in connection with a bond.

(E) The funding of one or more reserve accounts related to a bond.

(7) “Local agency” means a “local government” as defined in subdivision (b) of Section 1 of Article XIIIC of the California Constitution in the Counties of Alameda, Contra Costa, Los Angeles, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma.

(8) “Publicly owned utility” means a utility furnishing water service to customers that is owned and operated by a local agency or a department or other subdivision of a local agency and includes any successor to the powers and functions of a department or other subdivision.

(9) “Servicing agreement” means an agreement between a local agency or its publicly owned utility and the authority for the collection of the efficiency charge, pursuant to which the local agency or its publicly owned utility acts as a servicing agent for purposes of collecting the efficiency charge for the authority.

(c) (1) Notwithstanding any other law, if the requirements of paragraphs (2) and (3) are met, an authority may provide funding for a customer of a local agency or its publicly owned utility to acquire, install, or repair an efficiency improvement on a customer property served by the local agency or its publicly owned utility.

(2) (A) The authority, by resolution, establishes or extends a program to provide funding for a customer of a local agency or its publicly owned utility to acquire, install, or repair an efficiency improvement on a customer property served by the local agency or its publicly owned utility. The resolution shall do all of the following:

(i) State the intent of the authority to operate the program.

(ii) Define the geographical scope of the operation of the program as an area that is limited to only the territories within which retail water service is provided by those local agencies that have expressly requested the authority to provide funding for the local agency’s customers through the program, in accordance with the requirements of paragraph (3).

(iii) Specify the types of efficiency improvements that may be financed by the program.

(iv) Approve a standardized servicing agreement.

(v) Authorize one or more designated officials of the authority to execute and deliver the servicing agreement on behalf of the authority.

(B) The authority acknowledges receipt of the resolution described in subparagraph (C) of paragraph (3).

(C) The authority may determine that all proceedings were valid and in conformity with the requirements of this paragraph and that finding shall be final and conclusive.

(3) The legislative body of the local agency requests the authority to provide funding for its customers through a program established by the authority pursuant to this section by doing all of the following:

(A) The legislative body adopts a resolution declaring its intention to request the authority to establish or extend a program to a customer represented by the legislative body, calling for a public hearing that shall be held at least 30 days later and directing the clerk or secretary of the legislative body to publish a notice of the hearing at least five days before the hearing in a newspaper of general circulation in the boundaries of the local agency. If the local agency wishes to pledge its water enterprise revenue as security for the payment of the principal of, and interest and redemption premium on, bonds issued by the authority in the event that efficiency charges are insufficient for those purposes pursuant to paragraph (5) of subdivision (f), the legislative body shall declare that intention in the resolution.

(B) The legislative body conducts the noticed public hearing and, after considering the testimony of any interested person, concludes that the program and the proposed pledge of water enterprise revenue, if applicable, would provide significant public benefits in accordance with the criteria specified in Section 6586.

(C) The legislative body adopts a resolution that does all of the following:

(i) Authorizes the authority to establish or extend a program pursuant to this section within the boundaries of the local agency.

(ii) Declares that the operation of the program by the authority in the local agency’s geographic boundaries would provide significant public benefits in accordance with the criteria specified in Section 6586.

(iii) Specifies the types of efficiency improvements that may be financed by the program.

(iv) Approves the standardized servicing agreement and authorizes one or more designated officials of the local agency to execute and deliver the servicing agreement with the authority.

(v) If applicable, approves the pledge of water enterprise revenue as security for the payment of the principal of, and interest and redemption premium on, bonds issued by the authority in the event that efficiency charges are insufficient for those purposes.

(vi) If applicable, authorizes execution and delivery of one or more pledge agreements to evidence a pledge.

(vii) In the resolution, the legislative body may determine that all proceedings were valid and in conformity with the requirements of this section and that finding shall be final and conclusive.

(d) (1) A customer shall repay the authority through an efficiency charge on the customer’s water bill that is established and collected by the local agency or its publicly owned utility upon verification that the efficiency improvement has been installed. The duty to pay the efficiency charge shall arise from and be evidenced by a written agreement executed at the time of installation of the efficiency improvement among the customer; all property owners of record, if different than the customer; the authority; and the local agency or its publicly owned utility.

(2) The written agreement shall include all of the following:

(A) An agreement by the customer to pay an efficiency charge for the period and in the amount specified in the agreement unless the efficiency charge is prepaid in the manner set forth in the agreement. The period designated for repayment shall not exceed the estimated useful life of the funded efficiency improvements.

(B) A description of the financial calculation, formula, or other method that the authority used to determine the efficiency charge. The efficiency charge may include a component for reasonable administrative expenses incurred by the local agency or its publicly owned utility and the authority in connection with the program and the funding. A component for reasonable administrative expenses shall be listed separately in the written agreement.

(C) A description of the efficiency improvement funded with the efficiency charge.

(D) A representation by the customer that the customer intends to acquire, install, or repair and use the efficiency improvement on the customer’s property for the useful life of the efficiency improvement. Any failure of the efficiency improvement by damage, removal, or other fault of the customer during the useful life of the efficiency improvement shall not affect the customer’s obligation to pay the efficiency charge as set forth in the agreement.

(E) A requirement that any failure of the efficiency improvement not involving damage, removal, or other fault of the customer shall result in the efficiency charge being suspended until the efficiency improvement is repaired and returned to service.

(F) A demonstration by the authority that the customer’s payment of the efficiency charge will be bill neutral.

(G) When the property is not owner occupied, a requirement that the obligation to pay the efficiency charge appear in the terms through which the customer leases or licenses the property for occupancy.

(3) The written agreement shall not be valid unless the authority entering into the written agreement has verified all of the following information:

(A) The customer entering into the agreement is the utility customer at the address and that all property owners of record, if different from the customer, have consented in writing to the agreement.

(B) The participating customer’s account has been in good standing for the prior 12 months or, if the customer’s occupancy of the site at which the efficiency improvements will be installed is less than 12 months, has been in good standing for the duration of the customer’s occupancy of the site.

(C) The person installing the efficiency improvement has been approved to install efficiency improvements by the authority and the local agency or its publicly owned utility and is in compliance with program requirements established by the authority.

(D) The efficiency improvement included in the agreement complies with program requirements established by the authority, consistent with paragraph (5) of subdivision (b).

(E) The efficiency improvement will generate total utility cost savings that exceed the total cost of the efficiency charge paid by the customer over the duration of the agreement, and will be bill neutral, as defined in paragraph (1) of subdivision (b), for the participating customer.

(4) The timely and complete payment of an efficiency charge by a customer that has agreed to pay an efficiency charge may be a condition of receiving water service from the local agency or its publicly owned utility, and a local agency and its publicly owned utility are authorized to use their established collection policies and all rights and remedies provided by law to enforce payment and collection of the efficiency charge. A person liable for an efficiency charge shall not be entitled or authorized to withhold payment, in whole or in part, of the efficiency charge for any reason. If the property on which the efficiency improvement is located is sold or transferred to a subsequent customer, any portion of the efficiency charge that is past due and owing at the time of the sale or transfer shall not transfer to the transferee of the property. The failure of the prior customer to pay the efficiency charge shall not prevent the subsequent customer from obtaining water service from the local agency or its publicly owned utility.

(5) A customer’s obligation to pay the efficiency charge shall remain associated with the meter at the customer property on which the efficiency improvement is located until the efficiency charge related to the efficiency improvement has been repaid in full or the efficiency charge has been transferred to a subsequent customer who receives water service at a property with installed efficiency measures for the remainder of the obligation. Notwithstanding any other provision of this section, the efficiency charge shall not transfer to a subsequent customer, shall not continue to be associated with the meter at the property, and shall remain an obligation of the previous customer if the efficiency improvements were removed or damaged, and not restored to service, by the previous customer. A local agency or its publicly owned utility shall record, no later than 10 days after funding an efficiency improvement, a notice of efficiency charge in the records of the county recorder of the county in which the customer’s property is located. A county recorder, upon recording a notice of efficiency charge, shall index the notice of efficiency charge in the general index by the name of the owner of the real property where the meter affected by the efficiency charge will be located. The notice shall include the address or legal description of, the assessor’s parcel number of, and the name of the owner of, the real property where the meter affected by the efficiency charge will be located. The notice shall be entitled “NOTICE OF EFFICIENCY CHARGE” and shall comply with Section 27324. The notice shall contain contact information for the person or entity authorized to provide a prompt and accurate written statement of the outstanding charges and payoff amounts related to the efficiency charge for which the notice of efficiency charge was recorded. The recordation of the notice of efficiency charge shall be considered sufficient notice to a subsequent customer at a property with installed efficiency measures of the customer’s obligation to pay the efficiency charge for installed measures.

(6) (A) Within 10 days of full repayment of the outstanding charges related to the recorded notice of efficiency charge, the entity responsible for the collection and servicing of the efficiency charge shall record a notice of the full repayment and removal of the efficiency charge in the records of the county recorder of the county in which the customer’s property is located. The notice of the full repayment and removal of the efficiency charge shall include a reference to the recorded notice of efficiency charge.

(B) Within 10 days of a decision by the authority not to repair and return to service a failed efficiency improvement when failure did not involve damage, removal, or other fault of the customer, the entity responsible for the collection and servicing of the charge shall record a notice of removal of the efficiency charge in the records of the county recorder of the county in which the customer’s property is located. The notice of the removal of the efficiency charge shall include a reference to the recorded notice of the efficiency charge.

(7) Because the efficiency charge is a voluntary charge that will be made pursuant to a written agreement among the customer, all property owners of record if these are different than the customer, the authority, and the local agency or its publicly owned utility, the Legislature finds and declares that voluntary efficiency charges under this section are not taxes, assessments, fees, or charges for the purposes of Articles XIIIC and XIIID of the California Constitution and therefore the provisions of Articles XIIIC and XIIID and Article 4.6 (commencing with Section 53750) of Chapter 4 of Part 1 of Division 2 of Title 5 are not applicable to voluntary efficiency charges levied pursuant to this section.

(e) (1) The authority and a local agency or its publicly owned utility shall enter into a servicing agreement for the collection of one or more efficiency charges and the local agency or its publicly owned utility shall act as a servicing agent for purposes of collecting the efficiency charge.

(2) The authority, local agency, or utility responsible for the collection of the efficiency charges shall ensure that the contact information in the notice of efficiency charge recorded in the records of the county recorder pursuant to this section is accurate so that interested parties may request and promptly receive a written and accurate payoff amount or verification of the outstanding charges associated with the recorded notice of efficiency charge. Furthermore, the authority, local agency, or utility shall on each water bill issued to the customer include a contact number where the customer can obtain the amount of the monthly efficiency charge and a description of the efficiency improvement for which the efficiency charge has been incurred.

(3) In the event that the servicing agent or entity responsible for the collection of the efficiency charge changes, a new notice of efficiency charge shall be recorded within 10 days.

(4) Any party requesting written payoff amount or verification of outstanding charges from the authority, local agency, or utility identified as the contact on the recorded notice of efficiency charge shall be provided with the payoff amount or verification within seven days of the request and may rely upon the written payoff amount or verification as being accurate for 45 days from the receipt of this written information. If the authority, local agency, or utility provides a written amendment to the written payoff amount or verification, any party may rely on the written amendment for 45 days from receipt of the written amendment.

(5) Moneys collected as an efficiency charge by the local agency or its publicly owned utility, acting as a servicing agent on behalf of the authority, shall be held in trust for the exclusive benefit of the persons entitled to the financing costs to be paid, directly or indirectly, from the efficiency charge and shall not lose their character as revenues of the authority because the local agency or its publicly owned utility possesses them.

(6) In the servicing agreement, the local agency or its publicly owned utility shall contract with the authority that the local agency or its publicly owned utility will continue to operate its publicly owned utility system to provide service to its customers, will, as servicer, collect the efficiency charge for the benefit and account of the authority and, if applicable, the beneficiaries of the pledge of the efficiency charge, and will account for and remit these amounts to, or for the account of, the authority.

(7) The servicing agreement shall provide that the obligation to pay the efficiency charge shall remain associated with the meter at the customer property on which the efficiency improvement is located until the authority is fully repaid.

(8) The servicing agreement may specify, consistent with paragraph (4) of subdivision (d), that the timely and complete payment of all efficiency charges by a customer that has agreed to pay an efficiency charge shall be a condition of receiving service from the publicly owned utility, and the local agency or its publicly owned utility shall use its established collection policies and all rights and remedies provided by law to enforce payment and collection of the efficiency charge.

(9) In the servicing agreement, the local agency or its publicly owned utility shall agree that in the event of default by the local agency or its publicly owned utility in payment of revenues arising with respect to the efficiency charge, the authority, upon the application by the beneficiaries of the authority’s pledge described in this section, and without limiting any other remedies available to the beneficiaries by reason of the default, shall order the sequestration and payment to the beneficiaries of revenues arising with respect to the efficiency charge.

(f) (1) The authority may issue one or more bonds for the purpose of providing funds for the acquisition, installation, and repair of an efficiency improvement on customer property pursuant to this section.

(2) An authority issuing a bond shall include in its preliminary notice and final report for the bonds submitted to the California Debt and Investment Advisory Commission pursuant to Section 8855 a statement that the bond is being issued pursuant to this section.

(3) An authority that issues a bond pursuant to this section shall establish a debt service reserve fund for the bond to the extent required by the purchaser of the bond.

(4) (A) The authority may, pursuant to Section 5451, pledge one or more efficiency charges as security for the bonds issued pursuant to this section. Revenue from an efficiency charge shall be deemed special revenue of the authority and shall not constitute revenue of the local agency or its publicly owned utility for any purpose, including, but not limited to, any dedication, commitment, or pledge of revenue, receipts, or other income that the local agency or its publicly owned utility has made or will make for the security of any of its obligations.

(B) The validity and relative priority of a pledge created or authorized under this section is not defeated or adversely affected by the commingling of efficiency charge revenue with other moneys collected by a local agency or its publicly owned utility.

(5) A local agency may pledge water enterprise revenue as security for the payment of the principal of, and interest and redemption premium on, bonds issued by the authority if efficiency charges are insufficient for that purpose, and may execute one or more pledge agreements pursuant to Section 5451 for the benefit of the authority or for the exclusive benefit of the persons entitled to the financing costs to be paid from the efficiency charges.

(6) A local agency that pledges water enterprise revenues as security for the payment of the principal of, and interest and redemption premium on, a bond issued by the authority shall establish a debt service reserve fund for the bond to the extent required by the purchaser of the bond.

(g) If a local agency for which bonds have been issued and remain outstanding ceases to operate a water utility, either directly or through its publicly owned utility, references in this section to the local agency or to its publicly owned utility shall be deemed to refer to the entity providing water utility services in lieu of the local agency and that entity shall assume and perform all obligations of the local agency or its publicly owned utility required by this section and the servicing agreement with the authority while the bonds remain outstanding.

(h) If the local agency, its publicly owned utility, and the authority have complied with the procedures set forth in this section, they shall not be required to comply with Section 6586.5.

(i) An authority administering an efficiency improvement financing program shall compile and publicly post an annual report that includes all of the following:

(1) The number of written agreements entered into.

(2) The estimated and average water efficiency savings achieved.

(3) The amount of upfront financing provided by the authority.

(4) The amount of revenue collected by the authority.

(5) A copy of the authority’s report submitted to the California Debt and Investment Advisory Commission pursuant to Section 8855.

(6) A copy or summary of the authority’s process for accepting complaints about the program from customers and local agencies or their publicly owned utilities.

(7) A copy or summary of the authority’s practices and procedures for overseeing contractors’ performance and the marketing of the program.

(8) A copy or summary of the process for appealing determinations of fault for the failure of an efficiency improvement to the authority and the participating local agency or its publicly owned utility.

history: (History: Added by Stats. 2017, Ch. 430, Sec. 5. (SB 564) Effective January 1, 2018.)

title: 1. GENERAL

article: 4. Local Bond Pooling


kind: section

code: GOV

citation: GOV § 6589

text: An authority may enter into a bond purchase agreement with a local agency or agencies. The bond purchase agreement shall specify the maximum rate of interest, the cost of issuance, the amount of required reserve, and the procedure to be used in case of default. Notwithstanding any other provision of law, local agencies may sell their bonds to the authority on a negotiated basis without compliance with any public sale requirement included in the statutes under which the bonds are issued.

history: (History: Amended by Stats. 1987, Ch. 481, Sec. 4. Effective September 9, 1987.)

division: 7. MISCELLANEOUS

title: 1. GENERAL

chapter: 5. Joint Exercise of Powers

article: 4. Local Bond Pooling

path: 1. GENERAL > 7. MISCELLANEOUS > 5. Joint Exercise of Powers > 4. Local Bond Pooling


citation: GOV § 6590

text:
The authority may, from time to time, issue its bonds in the principal amount as the authority determines necessary to provide sufficient funds for its purposes, which may include, but shall not be limited to, providing funds for bond purchase agreements, payment of the purchase price of VLF receivables, payment of the purchase price of Proposition 1A receivables, financing utility projects, payment of interest on bonds of the authority, establishment of reserves to secure the bonds, and other expenditures of the authority incident to issuance of the bonds. The authority may also issue bonds for the purpose of making loans to local agencies, to the extent those local agencies are authorized by law to borrow moneys, or to purchase VLF receivables from local agencies as provided in Section 6588.5, or to purchase Proposition 1A receivables as provided in Section 6588.6, and the loan or sale proceeds shall be used by the local agencies to pay for public capital improvements, working capital, or insurance programs. The aggregate principal amount of all bonds issued pursuant to this section that are backed by Proposition 1A receivables shall not exceed two billion two hundred fifty million dollars ($2,250,000,000), and that issuance shall be approved by the Department of Finance and the Treasurer.

In the case of any authority in existence on January 1, 1988, no loans shall be made to local agencies for working capital or insurance, unless that purpose is first approved by resolution of the governing body of the authority by unanimous vote of all members of the governing body.

history: (History: Amended by Stats. 2013, Ch. 636, Sec. 3. (AB 850) Effective January 1, 2014.)

title: 1. GENERAL

article: 4. Local Bond Pooling


text:
(a) In the case of bonds issued by an authority to acquire local obligations, the offering documents for the bonds shall clearly delineate investment criteria for the local obligations to be acquired. The investment criteria shall specify the types of local obligations eligible for acquisition by the authority, as well as minimum standards of creditworthiness for these obligations.

(b) No financial advisor, investment advisor, underwriter, broker, dealer, or municipal securities dealer shall recommend the purchase, sale, or exchange of a municipal security to an authority unless that financial advisor, investment advisor, underwriter, broker, dealer, or municipal securities dealer has reasonable grounds to believe and does believe that the recommendation is suitable for the authority in light of the authority’s investment criteria and responsibility to safeguard public funds.

(c) In the case of bonds issued by an authority to acquire local obligations, the underwriter of the bonds, and the financial advisor and investment advisor to the authority, shall not sell to the authority any security or obligation issued by a state or local government from its dealer inventory or that it underwrote or otherwise placed on behalf of another client.

history: (History: Added by Stats. 1995, Ch. 229, Sec. 2. Effective July 31, 1995.)

title: 1. GENERAL

article: 4. Local Bond Pooling


text:
(a) An authority shall solicit at least three bids, and select the highest bid, for any guaranteed investment contract purchased with the proceeds of bonds issued by the authority.

(b) (1) Any government securities broker or dealer that sells government securities to an authority shall certify that the purchase price of those securities is equal to the fair market value of those securities.

(2) For purposes of this subdivision, “fair market value” means the price a willing buyer would pay to a willing seller in an arms’ length transaction.

history: (History: Added by Stats. 1995, Ch. 229, Sec. 3. Effective July 31, 1995.)

title: 1. GENERAL

article: 4. Local Bond Pooling


citation: GOV § 6591

text:
(a) The authority is authorized from time to time to issue bonds to provide funds to achieve its purposes.

(b) Bonds may be authorized to finance any of the following:

(1) A single public capital improvement, utility projects, working capital, purchase of VLF receivables, purchase of Proposition 1A receivables, or insurance program for a single local agency.

(2) A series of public capital improvements, utility projects, working capital, purchases of VLF receivables, purchase of Proposition 1A receivables, or insurance program for a single local agency.

(3) A single public capital improvement, utility projects, working capital, purchases of Proposition 1A receivables, or purchases of VLF receivables or insurance program for two or more local agencies.

(4) A series of public capital improvements, utility projects, working capital, purchases of VLF receivables or purchases of Proposition 1A receivables or insurance programs for two or more local agencies.

(c) Bonds issued for the purpose of financing working capital shall be used to make loans to local agencies for any of the purposes for which a local agency may borrow money pursuant to Section 53852. The loans shall be repaid in accordance with the terms of Section 53854.

(d) Except as otherwise expressly provided by the authority, every issue of its bonds shall be general obligations of the authority payable from any revenues or moneys of the authority available therefor and not otherwise pledged. These revenues or moneys may include the proceeds of additional bonds, subject only to any agreements with the holders of particular bonds pledging any particular revenues or moneys. Notwithstanding that the bonds may be payable from a special fund, these bonds shall be deemed to be negotiable instruments for all purposes, subject only to the bond registration provisions.

(e) (1) The bonds may be issued as serial bonds or as term bonds, or the authority may issue bonds of both types. The bonds shall be authorized by resolution of the authority and shall, as provided by the resolution or indenture pursuant to which the bonds are issued, meet all of the following conditions:

(A) Bear the date of issuance.

(B) Bear the time of maturity, not exceeding 50 years from their date of issuance.

(C) Bear the rate of interest, either fixed or variable, and, if variable, not in excess of the maximum rate of interest specified therein.

(D) Be payable as to principal and interest at the time or times provided.

(E) Be in the denominations and in the form provided.

(F) Carry the registration privileges provided.

(G) Be executed in the manner provided.

(H) Be payable in lawful money of the United States at the place or places provided within or without the state.

(I) Be subject to the terms of redemption provided.

(2) Notwithstanding paragraph (1), the bonds backed by Proposition 1A receivables shall have a maturity date no later than August 1, 2013.

(3) For bonds backed by Proposition 1A receivables, both of the following shall apply:

(A) The option to call shall be exercised upon receipt by the authority of a timely written notification from the Director of Finance, but no earlier than 30 days after delivery by the director of a written notice of the intent to do so to the Joint Legislative Budget Committee.

(B) The bonds may bear interest payable on periodic interest payment dates or may accrue interest to their maturity date or any combination thereof, subject to the approval of the Department of Finance and the State Treasurer pursuant to subdivision (x) of Section 6588.

(f) The bonds shall be sold by the authority at the time and in the manner set out in the authority’s resolution. The sale may be a public or private sale, and for price or prices, and on terms and conditions as the authority determines proper, after giving due consideration to the recommendations of any local agency to be assisted from the proceeds of the bonds. Pending preparation of the definitive bonds, the authority may issue interim receipts, certificates, or temporary bonds which shall be exchanged for definitive bonds. For bonds backed by Proposition 1A receivables, the authority shall use its best efforts to obtain the lowest overall cost of the bonds, and shall certify that it so used its best efforts. The authority shall, in consultation with the Treasurer and Department of Finance, structure the sale of the bonds backed by Proposition 1A receivables and shall include those terms and conditions approved by the Treasurer and the Department of Finance.

(g) In the case of bonds issued by an authority, on or after January 1, 1995, for the purpose of purchasing bonds of a local agency, all of the bonds of the local agency shall be purchased by the authority from the proceeds of the authority bonds within 90 days of the date of issuance of the authority bonds. Nothing in this subdivision shall be construed to preclude an authority from issuing parity bonds at any time.

history: (History: Amended by Stats. 2013, Ch. 636, Sec. 4. (AB 850) Effective January 1, 2014.)

title: 1. GENERAL

article: 4. Local Bond Pooling


text:
(a) No broker, dealer, municipal securities dealer, or other firm that underwrites a bond issue of an authority shall serve as financial advisor or investment advisor to the authority on decisions relating to the investment of the proceeds of that bond issue.

(b) An authority and its financial advisor shall enter into a written contract prior to the delivery of financial advisory services. The contract shall specify the range of services that will be delivered and the entire compensation to be paid to the financial advisor.

history: (History: Added by Stats. 1995, Ch. 229, Sec. 5. Effective July 31, 1995.)

title: 1. GENERAL

article: 4. Local Bond Pooling


citation: GOV § 6592

text:
Any resolution authorizing any bonds or any issue of bonds may contain the following provisions, which shall be a part of the contract with the holders of the bonds to be authorized:

(a) Provisions pledging the full faith and credit of the authority, or pledging all or any part of the revenues of any public capital improvements, or any revenue-producing contract or contracts made by the authority with any local agency, any VLF receivables purchased pursuant to Section 6588.5, any utility project property, any Proposition 1A receivables purchased pursuant to Section 6588.6, or any other moneys of the authority, to secure the payment of the bonds, and of any special account, subject to those agreements with bondholders as may then exist.

(b) Provisions setting out the rentals, fees, purchase payments, loan repayments, and other charges, and the amounts to be raised in each year thereby, and the use and disposition of the revenues.

(c) Provisions setting aside reserves or sinking funds, and the regulation and disposition thereof.

(d) Limitations on the right of the authority or its agent to restrict and regulate the use of the public capital improvements to be financed out of the proceeds of the bonds or any particular issue of bonds.

(e) Limitations on the purpose to which the proceeds of sale of any issue of bonds may be applied, and pledging the proceeds to secure the payment of the bonds or any issue of the bonds.

(f) Limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding bonds.

(g) The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds and the holders thereof that are required to give consent thereto, and the manner in which the consent may be given.

(h) Limitations on expenditures for operating, administrative, or other expenses of the authority.

(i) Definitions of acts or omissions to act which constitute a default in the duties of the authority to holders of its obligations, and providing the rights and remedies of the holders in the event of a default.

(j) The mortgaging of any public capital improvements and the site thereof for the purpose of securing the bondholders.

(k) The mortgaging of land, improvements, or other assets owned by a local agency for the purpose of securing the bondholders.

(l) Procedures for the selection of public capital improvements to be financed with the proceeds of the bonds authorized by the resolution, if the bonds are to be sold in advance of designating the public capital improvements and the local agency to receive the financing.

history: (History: Amended by Stats. 2013, Ch. 636, Sec. 5. (AB 850) Effective January 1, 2014.)

title: 1. GENERAL

article: 4. Local Bond Pooling


text: A resolution authorizing bonds or any issuance of bonds or accepting the benefit of any bonds or the proceeds of bonds shall be adopted by an authority only during a regular meeting held pursuant to Section 54954.

history: (History: Added by Stats. 2009, Ch. 557, Sec. 5. (SB 99) Effective January 1, 2010.)

title: 1. GENERAL

article: 4. Local Bond Pooling


text:
(a) No bonds issued by any local agency shall be purchased pursuant to this article by an authority at a price to yield in excess of 1 percent of the yield of the issue of bonds issued by the authority to purchase the bonds of the local agency. For the purposes of this subdivision, yield is determined on the issue date of the bonds.

(b) At least 95 percent of the receipts by an authority from bonds of a local agency purchased by the authority after January 1, 1995, shall be used for any of the following:

(1) To pay principal, interest, redemption prices or fees for credit enhancement on the issue of bonds of the authority used to acquire those bonds of the local agency.

(2) To pay or reimburse administrative costs of the bonds of the authority used to acquire those bonds of the local agency.

(3) To pay or reimburse a local agency for principal, interest, or redemption price on bonds of that local agency.

(4) To establish reasonable reserves for the payment of debt service on authority bonds.

(5) To purchase other bonds of a local agency.

(6) To pay or reimburse fees and expenses charged to the authority by third parties, excluding any member of the authority, for services relating to administration of the authority’s bonds or of the program established by the authority for purchase of local agency bonds.

(c) For the purposes of this section, the following definitions shall apply:

(1) “Administrative costs” means, and is limited to, costs of issuing, carrying, or repaying the authority bonds.

(2) “Credit enhancement” means any municipal bond insurance, surety bond, letter of credit, or other guaranty arrangement entered into between an independent party and the authority or the local agency that unconditionally shifts substantially all of the credit risk for all or part of the payments on the issue of bonds guaranteed by the credit enhancement and, in the case of bonds bearing a variable rate of interest and containing a provision permitting or requiring tender of the bonds by the bondholder, includes payments against failure to remarket bonds.

(3) “Issue” means bonds that are issued by the same issuer on the same issue date pursuant to the same plan of financing that are reasonably expected to be paid from substantially the same source of funds, without regard to credit enhancement or priority of lien.

(4) “Issue date” means the first date on which the authority, in the case of an issue of bonds issued by the authority, or the local agency, in the case of an issue of bonds issued by the local agency for purchase by the authority, receives the purchase price of the issue of bonds in exchange or the delivery of the evidence of indebtedness representing the bonds of the issue.

(5) “Issue price” means, in the case of an issue of bonds issued by the authority, the initial offering price to the public, excluding bondhouses, underwriters, brokers, and other intermediaries, and assuming that the issue price for each maturity of bonds of the issue is equal to the price at which at least 10 percent of that maturity was sold to the public, and if an issue is privately placed, means the purchase of each maturity of bonds of the issue paid by the first buyer of the obligation, excluding bondhouses, underwriters, brokers, and other intermediaries. “Issue price” means, in the case of an issue of bonds issued by the local agency, the purchase price of each maturity of bonds of the issue paid by the authority to the local agency.

(6) “Yield” means that discount rate that, when used in computing the present value as of the issue date of all unconditionally payable payments of principal, interest, and fees for credit enhancement on the issue of bonds produces an amount equal to the present value, using the same discount rate, of the aggregate issue price of bonds of the issue as of the issue date. In the case of an issue of bonds issued by a local agency for purchase by the authority, payments for administrative costs shall not be taken into account in determining the yield of those local agency bonds.

history: (History: Added by Stats. 1995, Ch. 229, Sec. 6. Effective July 31, 1995.)

title: 1. GENERAL

article: 4. Local Bond Pooling


citation: GOV § 6593

text: No member of the governing body of the authority shall be personally liable on the bonds or be subject to any personal liability or accountability by reason of the issuance of bonds.

history: (History: Added by Stats. 1985, Ch. 868, Sec. 6. Effective September 23, 1985.)

title: 1. GENERAL

article: 4. Local Bond Pooling


citation: GOV § 6594

text: The authority may, out of any funds available therefor, purchase its bonds. The authority may hold, pledge, cancel, or resell the bonds, subject to, and in accordance with, agreements with bondholders.

title: 1. GENERAL

article: 4. Local Bond Pooling


citation: GOV § 6595

text:
Any bonds issued under this article may be secured by a trust agreement between the authority and a corporate trustee or trustees, which may include any trust company or bank having the powers of a trust company within or without the state.

(a) The trust agreement or the resolution providing for the issuance of the bonds may pledge or assign the revenues to be received or the proceeds of any contract or contracts and may convey or mortgage the project or projects, or any portion thereof, to be financed out of the proceeds of the bonds. The trust agreement or resolution providing for the issuance of the bonds may contain provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including provisions specifically authorized to be included in any resolution or resolutions of the authority authorizing bonds.

(b) Any bank or trust company doing business under the laws of the state which may act as a depository of the proceeds of bonds or of revenues or other moneys shall furnish indemnifying bonds or pledge securities when required by the authority.

(c) The trust agreement may set forth the rights and remedies of the bondholders and of the trustee or trustees, and may restrict the individual right of action by bondholders. In addition, any trust agreement or resolution may contain other provisions the authority determines to be reasonable and proper for the security of the bondholders.

title: 1. GENERAL

article: 4. Local Bond Pooling


text:
(a) The authority may issue bonds for the purpose of refunding any bonds, notes, or other securities of the authority then outstanding, including the payment of any redemption premium thereon and any interest accrued, or to accrue, on their earliest or any subsequent date of redemption, purchase, or maturity of these bonds. The authority may issue bonds for the additional purpose of paying all, or any part of, the costs of constructing and acquiring additions, improvements, extensions, or enlargements of any public capital improvement or any portion thereof.

(b) The proceeds of any bonds issued for the purpose of refunding outstanding bonds may be applied to the purchase or retirement at maturity or redemption of those outstanding bonds either on their earliest or any subsequent redemption date or upon the purchase or retirement at the maturity thereof and may, pending this application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption of those outstanding bonds on the date as may be determined by the authority.

(c) Pending this use, the escrowed proceeds may be invested and reinvested in obligations of, or guaranteed by, the United States, or in certificates of deposit or time deposits secured by obligations of, or guaranteed by, the United States, maturing at the time or times appropriate to assure prompt payment, of the principal, interest, and redemption premium, if any, of the outstanding bonds to be refunded. The interest, income, and profits, if any, earned or realized on the investment may also be applied to the payment of the outstanding bonds to be refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and interest, income, and profits, if any, earned or realized on the investments thereof, shall be returned to the authority for use in carrying out the purposes of this article.

(d) The portion of the proceeds of the bonds issued for the additional purpose of paying all, or any part of, the costs of construction and acquiring additions, improvements, extensions, or enlargements of any project may be invested and reinvested in obligations of, or guaranteed by, the United States, or in certificates of deposit or time deposits secured by obligations of, or guaranteed by, the United States, maturing not later than the time or times when these proceeds will be needed for the purpose of paying all or any part of the costs. The interest, income, and profits, if any, earned or realized on this investment may be applied to the payment of all, or any part of, the costs or may be used by the authority in carrying out the purposes of this article.

title: 1. GENERAL

article: 4. Local Bond Pooling


text: Bonds issued by the authority are legal investments for all trust funds, the funds of all insurance companies, banks, both commercial and savings, trust companies, executors, administrators, trustees, and other fiduciaries, for state school funds, and for any funds which may be invested in county, municipal, or school district bonds. These bonds are securities which may legally be deposited with, and received by, any state or municipal officer or agency or political subdivision of the state for any purpose for which the deposit of bonds or obligations of the state is now, or may hereafter be, authorized by law, including deposits to secure public funds. This authorization applies only to the extent that there exists evidence of indebtedness or debt securities of the participating party receiving financing through the issuance of these bonds which qualify for, or are eligible for, these purposes and uses.

title: 1. GENERAL

article: 4. Local Bond Pooling


text:
(a) The authority is not required to pay any property taxes or assessments upon, or with respect to, any public capital improvement or any property acquired by, or for, the authority under this article, or upon the income therefrom, so long as the authority holds title to the public capital improvement or to the property contained in the public capital improvement.

(b) The exemption of the authority from taxation of any public capital improvement ceases when title to the property is transferred from the authority to any local agency whose property is otherwise taxable. This section does not exempt any local agency whose property is otherwise taxable from taxation, including, but not limited to, taxation upon a possessory interest, with respect to any public capital improvement, or the property or facilities contained in any public capital improvement which may otherwise be applicable to the participant.

title: 1. GENERAL

article: 4. Local Bond Pooling


citation: GOV § 6596

text: The State of California does hereby pledge to, and agrees with, the holders of any bonds issued under this article, and with those parties who may enter into contracts with the authority pursuant to this article, that the state will not limit or alter the rights hereby vested in the authority to finance any public capital improvement and to fulfill the terms of any loan agreement, lease, or other contract with the authority pursuant to this part, or in any way impair the rights or remedies of the bonds or of the parties until those bonds, together with the interest thereon, are fully met and discharged and those contracts are fully performed on the part of the authority. However, nothing in this section precludes this limitation or alteration if and when adequate provision has been made by law for the protection of the holders of those bonds of the authority or those entering into those contracts with the authority.

title: 1. GENERAL

article: 4. Local Bond Pooling


citation: GOV § 6597

text: All public capital improvements financed by the authority shall pay interest within a reasonable time after the authority receives revenues or proceeds from bonds as provided under this article.

title: 1. GENERAL

article: 4. Local Bond Pooling


text: All public capital improvements financed by the authority shall be constructed or completed subject to the rules and regulations of the authority. When the principal of, and interest on, bonds of the authority issued to finance the cost of a particular public capital improvement, including any refunding bonds issued to refund and refinance all, or any part, of these bonds, have been fully paid and retired, or when adequate provisions have been made for their payment and retirement and all other conditions of any resolution, lease, indenture, mortgage or deed of trust, security interest, or any other instrument authorizing and securing the bonds have been satisfied, and any lien created has been released in accordance with the provisions thereof, the authority is authorized, upon the terms and conditions it prescribes, to execute releases, release deeds, reassignments, deeds, and conveyances and to do all things necessary or required to convey or release its rights, title, and interest in the public capital improvement financed and in any other instruments pledged or transferred to secure bonds to local agencies, as their respective interests may appear.

title: 1. GENERAL

article: 4. Local Bond Pooling


citation: GOV § 6598

text: Interest earned on any bonds issued by the authority shall at all times be free from state personal income tax and corporate income tax.

title: 1. GENERAL

article: 4. Local Bond Pooling


text: Local agencies may request advice from the California Debt and Investment Advisory Commission pursuant to Section 8859 regarding the formation of local bond pooling authorities and the planning, preparing, insuring, marketing, and selling of bonds as authorized pursuant to this article.

history: (History: Amended by Stats. 2002, Ch. 454, Sec. 3. Effective January 1, 2003.)

title: 1. GENERAL

article: 4. Local Bond Pooling


citation: GOV § 6599

text:
(a) In an action filed pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure to determine the validity of any matter of an authority governed by this article, the authority and any interested person shall serve the Attorney General and the Treasurer with a copy of the complaint filed by the respective party by the first day of the publication of summons as required by Section 861 of the Code of Civil Procedure. A court may render no judgment in the matter or grant other permanent relief to any party except on proof of service of the Attorney General and the Treasurer as required by this section.

(b) The Attorney General and the Treasurer are each interested persons pursuant to an action filed pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure to determine the validity of any authorizing bonds or the issuance of bonds.

(c) Any authority that dismisses a validation action by formal act and withdraws the resolution may not issue bonds to construct, acquire, or finance a public capital improvement, except pursuant to Article 1 (commencing with Section 6500), unless the authority thereafter reauthorizes the issuance of the bonds and thereafter, if applicable, complies with Sections 6586.5 and 6586.7.

history: (History: Added by Stats. 2000, Ch. 723, Sec. 5. Effective January 1, 2001.)

title: 1. GENERAL

article: 4. Local Bond Pooling


text:
(a) The legislative body shall, no later than 30 days prior to the sale of any bonds pursuant to this article, give written notice of the proposed sale to the California Debt and Investment Advisory Commission by mail, postage prepaid, as required by Chapter 11.5 (commencing with Section 8855) of Division 1 of Title 2.

(b) Beginning January 1, 1996, each year after the sale of any bonds by the authority for the purpose of acquiring local obligations, the legislative body shall, not later than October 30 of each year until the final maturity of the bonds, supply the following information to the California Debt and Investment Advisory Commission by mail, postage prepaid:

(1) The principal amount of bonds outstanding, both authority bonds and local obligations acquired with the proceeds of authority bonds.

(2) The balance in the reserve fund.

(3) The costs of issuance, including any ongoing fees.

(4) The total amount of administrative fees collected.

(5) The amount of administrative fees charged to each local obligation.

(6) The interest earnings and terms of all guaranteed investment contracts.

(7) Commissions and fees paid on guaranteed investment contracts.

(8) The delinquency rates on all local obligations.

(9) The balance in capitalized interest accounts.

(c) In addition, with respect to any bonds sold pursuant to this article, regardless of when sold, and until the final maturity of the bonds, the legislative body shall notify the California Debt and Investment Advisory Commission by mail, postage prepaid, within 10 days if any of the following events occur:

(1) The local agency or its trustee fails to pay principal and interest due on any scheduled payment date.

(2) Funds are withdrawn from a reserve fund to pay principal and interest on the bonds issued by the authority or any bonds acquired by the authority.

(d) Neither the legislative body nor the California Debt and Investment Advisory Commission shall be liable for any inadvertent error in reporting the information required by this section.

history: (History: Amended by Stats. 2002, Ch. 454, Sec. 4. Effective January 1, 2003.)

title: 1. GENERAL

article: 4. Local Bond Pooling


text: Pursuant to Section 6 of Article XVI of the California Constitution, local agencies may enter into a joint pooling agreement to form a single statewide insurance pooling arrangement administered by a single statewide agency for the payment of tort liability or public liability losses incurred by such agencies. The agency shall be known as the Local Agency Self-Insurance Authority.

history: (History: Added by Stats. 1986, Ch. 1327, Sec. 1.)

title: 1. GENERAL

article: 1. Organization and Powers

path: 1. GENERAL > 7. MISCELLANEOUS > 5.5. Local Agency Self-Insurance Authority > 1. Organization and Powers


text: Notwithstanding Sections 863 and 869 of the Code of Civil Procedure, the Attorney General or the Treasurer may jointly or separately file an action pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure at any time up to 55 days after notice required by Section 6586.7 is mailed by certified mail to the Sacramento offices of both the Attorney General and the Treasurer.

history: (History: Amended by Stats. 2001, Ch. 159, Sec. 107. Effective January 1, 2002.)

title: 1. GENERAL

article: 4. Local Bond Pooling


text:
As used in this chapter:

(a) “Local agency” means any city, county, city and county, school district, special district, authority, other political subdivision of or within the state, an association or consortium of school districts formed or operating pursuant to Section 35179 of the Education Code, or any joint powers authority composed of any of these agencies.

(b) “Original board” means the first board of directors constituted and selected pursuant to Section 6599.06.

(c) “Board” means the original board and any successor board selected and constituted under this chapter.

history: (History: Amended by Stats. 1987, Ch. 32, Sec. 3. Effective May 29, 1987.)

title: 1. GENERAL

chapter: 5.5. Local Agency Self-Insurance Authority

article: 1. Organization and Powers


text: Notwithstanding any other provision of law, an action may be brought under Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure, to determine the validity of any bonds issued under this article to finance the purchase of bonds for local agencies, the financing of public capital improvements or utility projects, or the purchase of VLF receivables pursuant to Section 6588.5 or Proposition 1A receivables pursuant to Section 6588.6 and any contracts of sale of VLF receivables or Proposition 1A receivables or utility project property entered into by any local agency, and any related documents. If an action is commenced, the action shall be brought in the jurisdiction in which the authority maintains its principal office and is not required to be brought in the jurisdiction or jurisdictions of any of the local agencies. However, publication of summons, as provided in Section 861 of the Code of Civil Procedure, shall be made in the county in which the authority maintains its principal office and in each county in which any local agency that has sold bonds to the authority, for which a public capital improvement is being financed or that has entered into a sales agreement for a VLF receivable or a Proposition 1A receivable where the authority is located.

history: (History: Amended by Stats. 2013, Ch. 636, Sec. 6. (AB 850) Effective January 1, 2014.)

title: 1. GENERAL

article: 4. Local Bond Pooling


text: In addition to the powers specified in Chapter 5 (commencing with Section 6500), the authority may issue revenue bonds or certificates of participation, or both, to establish capital, surplus, and prudent reserves, and may secure payment of the bonds and interest by pledging all or part of its revenues from the receipt of premiums.

title: 1. GENERAL

article: 1. Organization and Powers


text: Except as otherwise provided in this chapter, Chapter 5 (commencing with Section 6500) applies to the authority.

title: 1. GENERAL

article: 1. Organization and Powers


text: The authority is not a state agency and has no power at any time or in any manner to pledge the credit of the state.

title: 1. GENERAL

article: 1. Organization and Powers


text:
The authority shall be organized and administered by a board of directors. The original board shall be constituted and selected as follows:

(a) Two directors shall be appointed by the County Supervisors Association of California and at least one shall have no less than five years of proven successful experience at a management level in providing risk management and insurance services to a county or an insurance joint powers agency composed of counties.

(b) Two directors shall be appointed by the League of California Cities and at least one shall have not less than five years of proven successful experience at a management level in providing risk management and insurance services to a city or an insurance joint powers agency composed of cities.

(c) One director shall be appointed by the California Special District Association and one director shall be appointed by the Association of California Water Agencies.

(d) Two directors shall be appointed by the California School Boards Association and at least one member shall have no less than five years of proven successful experience at a management level in providing risk management and insurance services to a school district or an insurance joint powers agency composed of school districts.

(e) One director shall be a person selected by a majority vote of the other eight members.

(f) The original directors shall hold their first meeting not later than April 1, 1987, and shall hold office until the permanent composition of the board is determined by the agreement or agreements entered pursuant to this chapter and the appointment and qualification of their successors, but in no event longer than three years.

title: 1. GENERAL

article: 1. Organization and Powers


text: There shall not be any liability in an individual or private capacity on the part of the board of directors or any member of the board, or any officer or employee of the authority for or on account of any act performed or obligation entered into in an official capacity, when done in good faith, without intent to defraud and in connection with the administration, management, or conduct of the authority or affairs relating to it. Members of the board and employees and officers of the authority are public employees for purposes of Division 3.6 (commencing with Section 810) of Title 1.

title: 1. GENERAL

article: 1. Organization and Powers


text: The authority shall be operated on an actuarially sound basis and become neither more nor less than self-supporting. For that purpose, loss experience and expense shall be ascertained and credits, refunds, and assessments may be made as determined appropriate by the board. The authority shall have the powers and duties set forth in this chapter and the powers and duties given it by its agreement. The original board may enter into the original joint powers agreement creating and governing the authority, which shall be made subject to subsequent modification and termination by the members of the authority.

title: 1. GENERAL

article: 1. Organization and Powers


text:
The board shall do all of the following:

(a) Develop, promulgate, and effectuate loss prevention programs, risk management programs, and safety programs.

(b) Subject to Section 6599.10, establish minimum standards for entry into membership and continued participation in the authority which shall include standards for risk management and loss control in addition to those other standards that the board deems appropriate.

(c) Establish standards and requirements for exit from the authority, which shall include those limits and conditions on exit that the board determines appropriate to insure actuarial soundness of the authority.

title: 1. GENERAL

article: 1. Organization and Powers


text: All those local agencies that request membership in the authority and meet the standards established by the authority pursuant to Section 6599.09, for entry into and continued participation in the authority may become members of the authority. If the authority determines that a local agency requesting membership meets the underwriting standards of the authority, the authority, upon receipt of the premium prescribed by the authority, shall admit the requesting local agency to membership. No local agency may be denied membership unless the board determines the agency cannot be actuarially safely underwritten. Premiums shall be based upon all appropriate actuarial data, including, but not limited to, claims and loss experience of applicant member agencies. Local agencies may request membership individually or through insurance joint powers authorities.

history: (History: Added by Stats. 1986, Ch. 1327, Sec. 1. Note: Sections 6599.1, 6599.2, and 6599.3 are in Chapter 5, following Section 6599.)

title: 1. GENERAL

article: 1. Organization and Powers


text: The authority may only cover risks to the extent that liability on any one occurrence exceeds one million dollars ($1,000,000), and may not provide coverage for any amount of liability on any one occurrence which exceeds twenty-five million dollars ($25,000,000).

title: 1. GENERAL

article: 2. Amounts of Insurance

path: 1. GENERAL > 7. MISCELLANEOUS > 5.5. Local Agency Self-Insurance Authority > 2. Amounts of Insurance


text: The authority may establish limits on coverage for a member or category of members, but those limits may neither be less than the minimum nor more than the maximum limits established by Section 6599.21.

title: 1. GENERAL

article: 2. Amounts of Insurance


text: A local agency requesting membership from the authority may request coverage in any sum, so long as the coverage requested is neither less than the minimum nor more than the maximum limits established by Section 6599.21.

title: 1. GENERAL

article: 2. Amounts of Insurance


text:
The books and records of the authority shall be audited annually and a summary of the audit shall be provided to the authority’s members and shall be a public record. The audit shall be done by a certified public accountant pursuant to agreement with the authority. Each annual audit, or a separate annual actuarial analysis, shall determine whether the authority has sufficient assets and reserves to maintain actuarial soundness, and shall recommend to the board any amounts which the authority should credit, refund, or assess its members to retain that soundness.

If any provision of this section conflicts with Section 6505, this section governs.

title: 1. GENERAL

article: 3. Reports and Statements

path: 1. GENERAL > 7. MISCELLANEOUS > 5.5. Local Agency Self-Insurance Authority > 3. Reports and Statements


text: If the original board is not selected on or before January 1, 1990, this chapter shall cease to be operative.

history: (History: Added by Stats. 1986, Ch. 1327, Sec. 1. Note: Condition for termination of Chapter 5.5 (commencing with Section 6599.01) failed.)

title: 1. GENERAL

article: 4. Miscellaneous

path: 1. GENERAL > 7. MISCELLANEOUS > 5.5. Local Agency Self-Insurance Authority > 4. Miscellaneous


citation: GOV § 6600

text: This chapter applies only to property and funds, and the disposition thereof, of inmates of any state home, reformatory, hospital, state prison, or other institution where the custody, management, and disposition of property and funds of inmates are not otherwise provided for by statute.

history: (History: Added by Stats. 1951, Ch. 587.)

title: 1. GENERAL

chapter: 6. Benefit Funds

path: 1. GENERAL > 7. MISCELLANEOUS > 6. Benefit Funds


citation: GOV § 6601

text: When any person confined in any state home, reformatory, hospital, state prison, or other institution dies, escapes, or is discharged or paroled from the home, reformatory, hospital, state prison, or other institution, and any of his personal funds or property remains in the hands of the superintendent of the home, reformatory, hospital, or other institution, or the warden of the prison, the superintendent or warden may make a monthly charge for the safekeeping of the funds or property.

title: 1. GENERAL


citation: GOV § 6602

text: If the charge is not paid, a lien to secure the payment of the charge accrues to the State. The lien may be foreclosed pursuant to this chapter.

title: 1. GENERAL


citation: GOV § 6603

text: If the charge is not paid within three years, the lien may be foreclosed, and the superintendent or warden may sell the property, or such part as is necessary, to satisfy the lien and costs of sale. The property may be sold at public or private sale.

title: 1. GENERAL


citation: GOV § 6604

text: At least 10 days before the sale notice of sale shall be posted in a public place at the state home, reformatory, hospital, institution, or state prison where it is to take place.

title: 1. GENERAL


citation: GOV § 6605

text: The proceeds of the sale shall be turned over immediately to the State Treasurer to be credited to the General Fund, except that the proceeds of the sale of property of a member of the Veterans’ Home or the Woman’s Relief Corps Home shall be deposited immediately in the post fund of the home at which the sale is had.

title: 1. GENERAL


citation: GOV § 6606

text: The superintendent or warden may deposit any funds of inmates in his possession in any bank in the state. With the consent of the owners of the funds or their guardians or conservators, he may deposit the interest accruing on the funds in a special fund designated the “benefit fund” or “post fund.”

history: (History: Amended by Stats. 1979, Ch. 730.)

title: 1. GENERAL


citation: GOV § 6607

text: The superintendent or warden is the trustee of the benefit fund.

title: 1. GENERAL


citation: GOV § 6608

text: He may expend the money in the benefit fund or post fund for the education or entertainment of the inmates of the institution or prison under his supervision.

title: 1. GENERAL


citation: GOV § 6650

text:
(a) Any marching band organized by or maintained by any educational institution supported in whole or in part by public funds or granted any tax exemption as an educational institution may furnish music at any athletic event where an admission is charged by any private person, partnership operating for profit, or corporation organized for profit only under the following conditions:

(1) The performance is authorized by the governing body of the institution;

(2) A band or orchestra of not less than the number of professional musicians customarily engaged for the athletic event in the particular auditorium, stadium, or place of performance or 15 professional union musicians, whichever is greater, is employed to furnish music at the event; and

(3) Neither the person, partnership, or corporation, nor the agent thereof, advertises or makes known to the public by any means or through any medium the pending performance of such marching band as an added attraction to the event itself; provided, however, that any person by any means or through any medium including radio or television may identify such marching band to the public at the actual moment of performance or thereafter.

(b) Any band or orchestra organized by or maintained by any institution supported in whole or in part by public funds or granted any tax exemption as an educational institution may furnish music at any activity of any other such institution when authorized by its governing board.

It is the intention of the Legislature to encourage the musicianship of California’s student bandsmen in marching bands but in no way to reduce employment opportunities for professional musicians. Private employers of professional musicians are to be advised that the Legislature intends to encourage such employers to invite California’s student marching bands to perform but not to regard such specialized marching performances as providing a substitute for the performance of regularly employed professional musicians which would ordinarily be required by such employers for such admission-paid events, in the absence of any performance at the same event by a student marching band.

history: (History: Amended by Stats. 1969, Ch. 1266.)

title: 1. GENERAL

path: 1. GENERAL > 7. MISCELLANEOUS > 6.5. State Supported Bands or Orchestras


citation: GOV § 6700

text:
(a) The holidays in this state are:

(1) Every Sunday.

(2) January 1.

(3) The third Monday in January, known as “Dr. Martin Luther King, Jr. Day.”

(4) The date corresponding with the second new moon following the winter solstice, or the third new moon following the winter solstice should an intercalary month intervene, known as “Lunar New Year.”

(5) February 12, known as “Lincoln Day.”

(6) The third Monday in February.

(7) March 31, known as “Farmworkers Day.”

(8) April 24, known as “Genocide Remembrance Day.”

(9) The 15th day of the month of Kartik in the Hindu lunar calendar of each year, known as “Diwali.”

(10) The last Monday in May.

(11) June 19, known as “Juneteenth.”

(12) July 4.

(13) The first Monday in September.

(14) September 9, known as “Admission Day.”

(15) The fourth Friday in September, known as “Native American Day.”

(16) The second Monday in October, known as “Columbus Day.”

(17) November 11, known as “Veterans Day.”

(18) December 25.

(19) Good Friday from 12 noon until 3 p.m.

(20) (A) Every day appointed by the President or Governor for a public fast, thanksgiving, or holiday.

(B) Except for the Thursday in November appointed as Thanksgiving Day, this paragraph and paragraphs (3), (4), and (7) shall not apply to a city, county, or district unless made applicable by charter, or by ordinance or resolution of the governing body thereof.

(b) If this section is in conflict with the provisions of a memorandum of understanding reached pursuant to Chapter 12 (commencing with Section 3560) of Division 4 of Title 1, the memorandum of understanding shall be controlling without further legislative action, except that if those provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.

history: (History: Amended by Stats. 2026, Ch. 7, Sec. 1. (AB 2156) Effective March 26, 2026.)

title: 1. GENERAL

chapter: 7. Holidays

path: 1. GENERAL > 7. MISCELLANEOUS > 7. Holidays


citation: GOV § 6701

text:
(a) If January 1, February 12, March 31, July 4, September 9, November 11, or December 25 falls upon a Sunday, the Monday following is a holiday.

(b) If November 11 falls upon a Saturday, the preceding Friday is a holiday.

(c) If March 31 falls upon a Tuesday, Wednesday, or Thursday, the Legislature may observe the holiday on one of the following:

(1) The preceding Friday.

(2) The preceding Monday.

(3) The following Friday.

(d) If any holiday designated in Section 6700 falls on a Saturday, the board of supervisors of any county may by ordinance or resolution provide that an alternate day shall be a holiday for the employees of the county, except those employees of the county working as court attachés.

history: (History: Amended by Stats. 2020, Ch. 14, Sec. 5. (AB 82) Effective June 29, 2020.)

title: 1. GENERAL


citation: GOV § 6702

text: Every Saturday from noon to midnight is a holiday as regards the transaction of business in the public offices of the state and political divisions where laws, ordinances, or charters provide that public offices shall be closed on holidays. This section shall not be construed to prevent or invalidate the issuance, filing, service, execution, or recording of any legal process or written instrument during such period. Public offices of a city shall be closed on those holidays enumerated in Section 6700 unless otherwise provided by charter, ordinance or resolution.

history: (History: Amended by Stats. 1970, Ch. 565.)

title: 1. GENERAL


citation: GOV § 6703

text:
(a) Public offices of the state, state institutions, and the University of California shall be closed on Admission Day.

(b) Public offices of the state and state institutions, including, but not limited to, all state agencies and the Legislature, shall be closed on November 11, Veterans Day. If, in a given year, November 11 falls on a Saturday, then public offices of the state and state institutions, including the Legislature, shall be closed on Friday, November 10. If, in a given year, November 11 falls on a Sunday, then public offices of the state and state institutions, including the Legislature, shall be closed on Monday, November 12. It is the intent of the Legislature that the University of California also be closed on the Veterans Day holiday.

history: (History: Amended by Stats. 2010, Ch. 511, Sec. 1. (SB 1057) Effective January 1, 2011.)

title: 1. GENERAL


citation: GOV § 6704

text: The legislative body of any city or district may, by ordinance or resolution, provide that every Saturday is a holiday as respects the transaction of business in the public offices of such cities or districts except that provision shall be made for the continuance of essential public services such as police and fire protection.

history: (History: Amended by Stats. 2002, Ch. 784, Sec. 127. Effective January 1, 2003.)

title: 1. GENERAL


citation: GOV § 6705

text:
A special or limited holiday is a holiday applying only to a special class or classes of business, or a special class or classes of persons, and not appointed to be generally observed throughout the State by all classes of business and all classes of persons.

On any special or limited holiday appointed by the President or Governor, all courts and public offices of the State, any political subdivision, or any city, shall be open and function in their normal and usual manner. All other public functions shall be performed as on days which are not holidays, and all contracts shall be performed and business transacted as usual, except only as to or by the particular class of business or persons expressly limited or restricted by the provisions of the proclamation appointing or declaring such special or limited holiday.

history: (History: Added by Stats. 1951, Ch. 655.)

title: 1. GENERAL


citation: GOV § 6706

text: Whenever any act of a secular nature, other than a work of necessity or mercy, is appointed by law or contract to be performed upon a particular day which falls upon a holiday, such act may be performed upon the next business day with the same effect as if it had been performed upon the day appointed.

title: 1. GENERAL


citation: GOV § 6707

text: When the last day for filing any instrument or other document with a state agency falls upon a Saturday or holiday, such act may be performed upon the next business day with the same effect as if it had been performed upon the day appointed.

history: (History: Added by Stats. 1957, Ch. 1649.)

title: 1. GENERAL


citation: GOV § 6708

text: The Governor shall proclaim September 28th to be known hereafter as “Cabrillo Day.”

history: (History: Added by Stats. 1963, Ch. 892.)

title: 1. GENERAL


citation: GOV § 6709

text: The Governor shall proclaim January 15 to be known hereafter as Dr. Martin Luther King, Jr., Day.

history: (History: Added by Stats. 1978, Ch. 1066.)

title: 1. GENERAL


citation: GOV § 6710

text: The Governor shall proclaim March 7, to be known hereafter as “Arbor Day.”

history: (History: Added by Stats. 1974, Ch. 189.)

title: 1. GENERAL


citation: GOV § 6711

text: The Governor shall proclaim February 19 to be known hereafter as “A Day of Remembrance: Japanese American Evacuation,” to reflect upon that day of February 19 in 1942 when Executive Order No. 9066 was issued to place over 110,000 persons of Japanese ancestry, most of whom were citizens of the United States, in American concentration camps during World War II, and to commemorate that day of February 19 of 1976 when Executive Order No. 9066 was rescinded.

history: (History: Added by Stats. 1979, Ch. 361.)

title: 1. GENERAL


citation: GOV § 6712

text: The Governor shall proclaim annually the fourth Friday in September to be “Native American Day.”

history: (History: Amended by Stats. 1998, Ch. 637, Sec. 6. Effective January 1, 1999.)

title: 1. GENERAL


citation: GOV § 6713

text: The Governor shall annually proclaim the first Sunday in October to be known as “Stepparents Day.”

history: (History: Added by Stats. 1985, Ch. 1471, Sec. 1. Effective October 2, 1985.)

title: 1. GENERAL


citation: GOV § 6714

text: The Governor annually shall proclaim April 21st to be “John Muir Day.”

history: (History: Added by Stats. 1989, Ch. 833, Sec. 2.)

title: 1. GENERAL


citation: GOV § 6715

text: The Governor shall annually proclaim March 30 as Welcome Home Vietnam Veterans Day.

history: (History: Added by Stats. 2009, Ch. 158, Sec. 3. (AB 717) Effective January 1, 2010.)

title: 1. GENERAL


citation: GOV § 6716

text: The Governor shall annually proclaim December 7 as “Pearl Harbor Day.”

history: (History: Added by renumbering Section 6714 (as added by Stats. 1989, Ch. 443) by Stats. 1990, Ch. 216, Sec. 33.)

title: 1. GENERAL


citation: GOV § 6717

text: The Governor shall annually proclaim March 31 as “Farmworkers Day.”

history: (History: Amended by Stats. 2026, Ch. 7, Sec. 2. (AB 2156) Effective March 26, 2026.)

title: 1. GENERAL


citation: GOV § 6718

text: The Governor shall proclaim the month of February as Black History Month each year.

history: (History: Added by Stats. 2004, Ch. 256, Sec. 1. Effective January 1, 2005.)

title: 1. GENERAL


citation: GOV § 6719

text: The Governor shall proclaim the third Saturday in June of each year to be known as “Juneteenth National Freedom Day: A day of observance,” to urge all Californians in celebrating this day to honor and reflect on the significant roles that African-Americans have played in the history of the United States and how African-Americans have enriched society through their steadfast commitment to promoting freedom, brotherhood, and equality.

history: (History: Added by Stats. 2003, Ch. 156, Sec. 3. Effective January 1, 2004.)

title: 1. GENERAL


citation: GOV § 6720

text: April 24 of each year shall be the “California Day of Remembrance of the Armenian Genocide,” and the period beginning on the Sunday before that day through the following Sunday shall be the days of remembrance in this state, and shall annually be so proclaimed by the Governor, in memory of the 1,500,000 victims who were subjected to torture, starvation, and murder, including death marches into the Syrian desert, by the rulers of the Ottoman Turkish Empire and the exile of more than 500,000 innocent people during the period from 1915 to 1923, inclusive, and in honor of the survivors of those crimes against humanity.

history: (History: Added by Stats. 2005, Ch. 9, Sec. 2. Effective January 1, 2006.)

title: 1. GENERAL


citation: GOV § 6721

text: The Governor shall annually proclaim May 22 as Harvey Milk Day.

history: (History: Added by Stats. 2009, Ch. 626, Sec. 3. (SB 572) Effective January 1, 2010.)

title: 1. GENERAL


citation: GOV § 6722

text: The Governor annually shall proclaim January 30 as Fred Korematsu Day of Civil Liberties and the Constitution.

history: (History: Added by Stats. 2010, Ch. 241, Sec. 10. (AB 1775) Effective January 1, 2011.)

title: 1. GENERAL


citation: GOV § 6723

text: The Governor shall annually proclaim February 6 as Ronald Reagan Day.

history: (History: Added by Stats. 2010, Ch. 114, Sec. 10. (SB 944) Effective January 1, 2011.)

title: 1. GENERAL


citation: GOV § 6724

text: The Governor shall annually proclaim January 23 as Ed Roberts Day.

history: (History: Added by Stats. 2010, Ch. 115, Sec. 10. (SB 1256) Effective January 1, 2011.)

title: 1. GENERAL


citation: GOV § 6725

text: The Governor annually shall proclaim October 25 as Larry Itliong Day.

history: (History: Added by Stats. 2015, Ch. 29, Sec. 3. (AB 7) Effective January 1, 2016.)

title: 1. GENERAL


citation: GOV § 6726

text:
(a) The Governor shall proclaim the first Friday in May of each year to be Space Day and designate that date as having special significance in public schools and educational institutions. The Governor shall encourage public schools and educational institutions to conduct suitable commemorative exercises on that date.

(b) The Governor shall encourage every resident, business, and public entity to dim or turn off their lights between 9 p.m. and 10 p.m. on Space Day.

(c) Space Day shall promote space observation and appreciation, promote California’s aerospace industry, and encourage students to pursue careers in science, technology, engineering, and mathematics.

(d) The Governor shall direct the Department of General Services to turn off the nonessential lights on the State Capitol Building between 9:00 p.m. and 10:00 p.m. on Space Day as a symbolic act designed to encourage all California citizens, businesses, and other entities to voluntarily dim or turn off their lights on Space Day.

history: (History: Added by Stats. 2016, Ch. 196, Sec. 1. (SB 1138) Effective January 1, 2017.)

title: 1. GENERAL


citation: GOV § 6727

text: The Governor shall annually proclaim the day of the astronomical Northward equinox, which usually occurs on March 20 or the following day, as Nowrūz Day.

history: (History: Added by Stats. 2017, Ch. 30, Sec. 1. (AB 88) Effective January 1, 2018.)

title: 1. GENERAL


citation: GOV § 6728

text: The Governor shall annually proclaim the month of June as LGBTQ+ Pride Month.

history: (History: Amended by Stats. 2022, Ch. 947, Sec. 1. (AB 1432) Effective January 1, 2023.)

title: 1. GENERAL


citation: GOV § 6729

text: The Governor annually shall proclaim April 10 as Dolores Huerta Day.

history: (History: Added by Stats. 2018, Ch. 130, Sec. 3. (AB 2644) Effective January 1, 2019.)

title: 1. GENERAL


citation: GOV § 6731

text:
(a) August 26 of each year shall be designated as California Farmworker Day to highlight, remember, and appreciate the work that farmworkers contribute daily in California.

(b) The Governor shall annually proclaim August 26 as California Farmworker Day.

history: (History: Added by Stats. 2021, Ch. 496, Sec. 2. (SB 721) Effective January 1, 2022.)

title: 1. GENERAL


citation: GOV § 6733

text: The Governor shall annually proclaim November 20 as “Transgender Day of Remembrance.”

history: (History: Added by Stats. 2022, Ch. 41, Sec. 1. (AB 1741) Effective January 1, 2023.)

title: 1. GENERAL


citation: GOV § 6735

text: The Governor shall annually proclaim December 1 as World AIDS Day.

history: (History: Added by Stats. 2024, Ch. 30, Sec. 1. (SB 1278) Effective January 1, 2025.)

title: 1. GENERAL


citation: GOV § 6800

text: The time in which any act provided by law is to be done is computed by excluding the first day, and including the last, unless the last day is a holiday, and then it is also excluded.

history: (History: Added by Stats. 1951, Ch. 655.)

title: 1. GENERAL

chapter: 8. Computation of Time

path: 1. GENERAL > 7. MISCELLANEOUS > 8. Computation of Time


citation: GOV § 6801

text: Time is computed according to the Gregorian or new style; and January 1st, in every year, after 1752 is reckoned as the first day of the year.

title: 1. GENERAL


citation: GOV § 6802

text: The years 1900, 2100, 2200, 2300, or any other future hundredth year, of which the year 2000 is the first, except only every fourth hundredth year, are not leap years, but common years of 365 days. The years 2000, 2400, 2800, and every other fourth hundredth year after 2000 and every fourth year, except as provided in this section, which, by usage in this State is considered a leap year, is a leap year consisting of 366 days.

title: 1. GENERAL


citation: GOV § 6803

text: “Year” means a period of 365 days; “half year,” 182 days; “quarter of a year,” 91 days. The added day of a leap year, and the day immediately preceding, if they occur in any such period, shall be reckoned together as one day.

title: 1. GENERAL


citation: GOV § 6804

text: “Month” means a calendar month, unless otherwise expressed.

title: 1. GENERAL


citation: GOV § 6805

text: A week consists of seven consecutive days.

title: 1. GENERAL


citation: GOV § 6806

text: A day is the period of time between any midnight and the midnight following.

title: 1. GENERAL


citation: GOV § 6807

text: “Daytime” is the period of time between sunrise and sunset. “Nighttime” is the period of time between sunset and sunrise.

title: 1. GENERAL


citation: GOV § 6808

text:
(a) The standard time within the state is that of the fifth zone designated by federal law as Pacific standard time (15 U.S.C. Secs. 261 and 263).

(b) The standard time within the state shall advance by one hour during the daylight saving time period commencing at 2 a.m. on the second Sunday of March of each year and ending at 2 a.m. on the first Sunday of November of each year.

(c) Notwithstanding subdivision (b), the Legislature may amend this section by a two-thirds vote to change the dates and times of the daylight saving time period, consistent with federal law, and, if federal law authorizes the state to provide for the year-round application of daylight saving time, the Legislature may amend this section by a two-thirds vote to provide for that application.

history: (History: Added by Stats. 2018, Ch. 60, Sec. 2. Effective December 19, 2018. Approved in Proposition 7 at the November 6, 2018, election.)

title: 1. GENERAL


citation: GOV § 6850

text: The money of account of this State is the dollar, cent, and mill. Public accounts and all proceedings in courts shall be kept and had in conformity with this section.

title: 1. GENERAL

chapter: 9. Money of Account

path: 1. GENERAL > 7. MISCELLANEOUS > 9. Money of Account


citation: GOV § 6851

text: This chapter does not vitiate or affect any account, charge, or entry originally made, or any note, bond, or other instrument expressed in any other money of account; but such account, charge, or entry shall be reduced to dollars, or parts of dollars, in any suit upon it.

title: 1. GENERAL


citation: GOV § 6852

text: All legal tender notes issued by the United States shall be received at par in payment for all taxes due this State, or to any county or municipal corporation of this State.

history: (History: Added by Stats. 1953, Ch. 170.)

title: 1. GENERAL


citation: GOV § 6860

text: Notwithstanding any restrictions on investments contained in any laws, farm loan bonds, consolidated farm loan bonds, collateral trust debentures, consolidated debentures, or other obligations issued under the Federal Farm Loan Act approved July 17, 1916, as amended (Title 12 U.S.C. Sections 636 to 1012 inclusive, and Sections 1021 to 1129 inclusive), the Farm Credit Act of 1933, as amended (Title 12 U.S.C. Sections 1131 to 1138f inclusive), and the Farm Credit Act of 1971 (Title 12 U.S.C. Sections 2001 to 2259 inclusive), are a lawful investment for all public funds, including but not limited to all funds of the state and of every local agency as defined by Section 53600 of this code, and for the funds of savings banks, insurance companies, executors, administrators, guardians, conservators, receivers, and trustees of every kind and nature. Whenever any bonds may by law be used as security for the performance of any act, such bonds and debentures may be so used. This section applies to farm loan bonds and consolidated farm loan bonds issued by federal land banks, consolidated collateral trust debentures and all other debentures issued by federal intermediate credit banks, debentures issued by the Cental Bank for Cooperatives and consolidated debentures issued by banks for cooperatives. It is the purpose of this section to authorize any person, political subdivision, body, or officer, public or private, to use any funds owned or controlled by him or it, including sinking, insurance, investment, retirement, compensation, pension, and trust funds, and funds held on deposit, for the purchase of any such bonds, debentures, or other obligations. Nothing in this section relieves any person from any duty of exercising reasonable care in selecting securities.

history: (History: Amended by Stats. 1979, Ch. 730.)

title: 1. GENERAL

chapter: 10. Farm Loan Bonds

path: 1. GENERAL > 7. MISCELLANEOUS > 10. Farm Loan Bonds


citation: GOV § 6900

text:
Whenever any governmental body is a shareholder of any corporation, and a resolution is before the shareholders which will permit or authorize cumulative voting for directors, such governmental body shall vote its shares to permit or authorize cumulative voting.

As used in this section the term “governmental body” means the state, and any office, department, division, bureau, board, commission or agency thereof, and all counties, cities, districts, public authorities, public agencies and other political subdivisions or public corporations in the state.

history: (History: Added by Stats. 1975, Ch. 487.)

title: 1. GENERAL

chapter: 11. Governmental Shareholders

path: 1. GENERAL > 7. MISCELLANEOUS > 11. Governmental Shareholders


citation: GOV § 6901

text:
Notwithstanding any other provision of the law, every state agency owning common stock shall, when returning proxies to a corporation, vote each proxy that is returned to the corporation. Nothing in this section shall prohibit a state agency owning common stock from abstaining on a corporate or shareholder proposal and notifying the corporation in writing of the state agency’s desire to abstain on a corporate or shareholder proposal.

As used in this section “state agency” includes the state, the University of California, and any office, department, division, bureau, board, commission, agency, or pension or retirement system thereof.

history: (History: Amended by Stats. 1981, Ch. 714, Sec. 163.)

title: 1. GENERAL


citation: GOV § 6930

text:
As used in this chapter:

(a) “Governmental investor” means the Treasurer, the Teachers’ Retirement Board, and the Board of Administration of the Public Employees’ Retirement System. “Governmental investor” also means each county treasurer, each city treasurer, each public governing or investing body or public investing officer, who exercises investment discretion over public funds in excess of ten million dollars ($10,000,000) or over public pension or retirement funds in excess of ten million dollars ($10,000,000).

(b) “Soft dollar and directed brokerage arrangements” means the brokerage and research services described by Section 28 (e) of the Securities Exchange Act of 1934 (15 U.S.C. Sec. 78bb(e)).

(c) “Transaction cost” means the overall cost of the transaction, including, but not limited to, commissions, services, and the price of the securities.

(d) “Responsible” means with the due diligence required of a fiduciary to examine a presented transaction for: necessity of soft dollar services provided and for commission cost; quality of the trade; quality of the broker-dealer’s research; the broker-dealer’s execution capabilities; and the broker-dealer’s quality of service.

history: (History: Added by Stats. 1990, Ch. 709, Sec. 1.)

title: 1. GENERAL

chapter: 11.5. Governmental Investors

path: 1. GENERAL > 7. MISCELLANEOUS > 11.5. Governmental Investors


citation: GOV § 6931

text: Each securities transaction or brokerage agreement carried out for a governmental investor pursuant to a soft dollar and directed brokerage arrangement, as defined in subdivision (b) of Section 6930, shall be executed at the lowest responsible transaction cost available.

title: 1. GENERAL


citation: GOV § 6932

text:
Any written contract entered into between a governmental investor and an investment manager on or after January 1, 1991, for the management of assets of a public fund or a public pension or retirement fund, which includes a soft dollar and directed brokerage arrangement, shall contain the following requirements:

(a) The investment manager shall maintain complete and detailed records of all billed services provided pursuant to soft dollar and directed brokerage arrangements.

(b) The services which may be provided by a broker-dealer pursuant to soft dollar and directed brokerage arrangements shall be clearly defined.

(c) The investment manager shall, in the customer agreement letters with governmental investors, disclose:

(1) A list of all billed services provided pursuant to soft dollar and directed brokerage arrangements with respect to investment transactions for the governmental investor.

(2) The justification for providing each of those services.

(3) The maximum percentage of the investment transactions of the governmental investor planned for use in soft dollar and directed brokerage arrangements.

(4) An annual statement of all billed services provided during the previous year under soft dollar and directed brokerage arrangements with respect to investment transactions for the governmental investor.

(5) A determination of whether each service provided under soft dollar and directed brokerage arrangements with respect to investment transactions for the governmental investor is proprietary or is being shared by other clients of the investment manager.

title: 1. GENERAL


citation: GOV § 6933

text:
Soft dollar and directed brokerage arrangements are not subject to any statutory competitive bidding requirements.

This section does not constitute a change in, but is declaratory of, existing law.

title: 1. GENERAL


citation: GOV § 6934

text: This chapter shall apply to contracts entered into, renewed, or extended on and after January 1, 1991.

title: 1. GENERAL


citation: GOV § 6950

text: It is the intent of the Legislature in enacting this chapter to provide a means whereby any county or city may acquire, by purchase, gift, grant, bequest, devise, lease or otherwise, and through the expenditure of public funds, the fee or any lesser interest or right in real property in order to preserve, through limitation of their future use, open spaces and areas for public use and enjoyment.

history: (History: Added by Stats. 1959, Ch. 1658.)

title: 1. GENERAL

path: 1. GENERAL > 7. MISCELLANEOUS > 12. Purchase of Interests and Rights in Real Property


citation: GOV § 6951

text: The Legislature finds that the rapid growth and spread of urban development is encroaching upon, or eliminating, many open areas and spaces of varied size and character, including many having significant scenic or esthetic values, which areas and spaces if preserved and maintained in their present open state would constitute important physical, social, esthetic or economic assets to existing or impending urban and metropolitan development.

title: 1. GENERAL

chapter: 12. Purchase of Interests and Rights in Real Property