BILL NUMBER: AB 277	CHAPTERED  07/05/01

	CHAPTER  38
	FILED WITH SECRETARY OF STATE  JULY 5, 2001
	APPROVED BY GOVERNOR  JULY 4, 2001
	PASSED THE ASSEMBLY  JUNE 25, 2001
	PASSED THE SENATE  JUNE 21, 2001
	AMENDED IN SENATE  JUNE 19, 2001

INTRODUCED BY   Assembly Member Kelley

                        FEBRUARY 16, 2001

   An act to amend Section 6512.2 of the Government Code, relating to
joint powers agencies.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 277, Kelley.  Joint powers authorities.
   Existing law authorizes public entities to pool self-insured
claims or losses among themselves pursuant to a joint exercise of
powers agreement.
   This bill would provide that if the purpose set forth in the
agreement is to pool the self-insurance claims of 2 or more local
public entities, it shall not be considered an agreement establishing
joint and several liability among those public entities, as
specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares that the purpose of
this act is to clarify that joint powers authorities formed for the
purpose of pooling the claims and losses of two or more local public
agencies are designed to implement the disbursement or subvention of
public funds from one or more of the public entities to others, as
described in Section 895 of the Government Code.
  SEC. 2.  Section 6512.2 of the Government Code is amended to read:

   6512.2.  If the purpose set forth in the agreement is to pool the
self-insurance claims of two or more local public entities, the
agreement may provide that termination by any party to the agreement
shall not be construed as a completion of the purpose of the
agreement and shall not require the repayment or return to the
parties of all or any part of any contributions, payments, or
advances made by the parties until the agreement is rescinded or
terminated as to all parties.  If the purpose set forth in the
agreement is to pool the self-insurance claims of two or more local
public entities, it shall not be considered an agreement for the
purposes of Section 895.2, provided that the agency responsible for
carrying out the agreement is a member of the pool and the pool
purchases insurance or reinsurance to cover the activities of that
agency in carrying out the purposes of the agreement.  The agreement
may provide that after the completion of its purpose, any surplus
money remaining in the pool shall be returned in proportion to the
contributions made and the claims or losses paid.