BILL NUMBER: SB 16	CHAPTERED  07/02/07

	CHAPTER  25
	FILED WITH SECRETARY OF STATE  JULY 2, 2007
	APPROVED BY GOVERNOR  JULY 2, 2007
	PASSED THE SENATE  MAY 7, 2007
	PASSED THE ASSEMBLY  JUNE 21, 2007
	AMENDED IN SENATE  APRIL 11, 2007
	AMENDED IN SENATE  MARCH 12, 2007

INTRODUCED BY   Senator Florez
   (Principal coauthor: Assembly Member Parra)

                        DECEMBER 4, 2006

   An act to amend Section 50665.5 of the Government Code, relating
to local agency finance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 16, Florez. Local agency finance: limited obligation bonds.
   Existing law authorizes cities and counties to issue various types
of debt instruments, including limited obligation bonds, funded by
certain revenue sources, and subject to specified criteria. The
initiating resolution adopted by a local agency pursuant to these
provisions is required to include, among other things, a pledge by
the local agency that any bonds issued pursuant to the resolution
shall be secured by all or part of the revenues received by the local
agency.
   This bill would additionally authorize a local agency to restrict
the pledge to the revenues received by the local agency from a
specified geographical area that is within the local agency's
exterior boundaries.


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

  SECTION 1.  Section 50665.5 of the Government Code is amended to
read:
   50665.5.  For all local agencies, the initiating resolution shall
recite each of the following:
   (a) That the initiating resolution is being adopted pursuant to
the powers granted by this article.
   (b) The object and purpose of incurring the indebtedness.
   (c) The estimated cost of the public improvements.
   (d) The maximum amount of the indebtedness.
   (e) A maximum rate of interest on the indebtedness.
   (f) (1) A pledge by the local agency that any bonds issued
pursuant to the initiating resolution shall be secured by all or part
of the revenues received by the local agency.
   (2) The local agency may restrict the pledge to the revenues
received by the local agency from a specified geographical area that
is within the local agency's exterior boundaries. The legal
description of the boundaries of the geographical area shall be
contained in the resolution.
   (g) The date of the election.
   (h) The manner of holding the election and the procedure for
voting for or against the proposition.