BILL NUMBER: SB 344	CHAPTERED  03/26/08

	CHAPTER  3
	FILED WITH SECRETARY OF STATE  MARCH 26, 2008
	APPROVED BY GOVERNOR  MARCH 26, 2008
	PASSED THE SENATE  MARCH 24, 2008
	PASSED THE ASSEMBLY  MARCH 10, 2008
	AMENDED IN ASSEMBLY  MARCH 6, 2008
	AMENDED IN ASSEMBLY  MARCH 3, 2008
	AMENDED IN SENATE  JUNE 4, 2007
	AMENDED IN SENATE  MAY 1, 2007
	AMENDED IN SENATE  APRIL 9, 2007

INTRODUCED BY   Senator Machado

                        FEBRUARY 20, 2007

   An act to add Section 5925 to the Government Code, relating to
public finance, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 344, Machado. State and local governments: public finance.
   Existing law authorizes state and local governments to issue bonds
and enter into other types of public financing arrangements for
specified purposes. Existing law also authorizes, in a prescribed
manner, any state or local government, in connection with, or
incidental to, the sale and issuance of bonds, or acquisition, or
carrying of any investment or program of investment, to enter any
contracts that the state or local government determines to be
necessary and appropriate to place the investment in whole or in
part, on the interest rate, currency, cashflow, or other basis
desired by the state or local government.
   This bill would provide that the acquisition of bonds by or on
behalf of a state or local government that issued the bonds does not
cancel, extinguish, or otherwise affect the bonds, and that the
issued bonds shall be treated as outstanding bonds for all purposes,
except to the extent otherwise determined by the issuer or as
provided in the constituent instruments defining the rights of the
holders of the bonds.
   This bill would declare that it is to take effect immediately as
an urgency statute.



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

  SECTION 1.  Section 5925 is added to the Government Code, to read:
   5925.  The purchase or other acquisition of bonds by or on behalf
of the state or local government that issued the bonds does not
cancel, extinguish, or otherwise affect the bonds and the bonds shall
be treated as outstanding bonds for all purposes except to the
extent otherwise determined by the issuer or otherwise provided in
the constituent instruments defining the rights of the holders of the
bonds.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   To support variable rate bonds and other instruments of debt
issued by state and local governmental entities in the current
financial markets, it is necessary that this bill go into immediate
effect.