BILL NUMBER: AB 1533 CHAPTERED 10/08/07 CHAPTER 336 FILED WITH SECRETARY OF STATE OCTOBER 8, 2007 APPROVED BY GOVERNOR OCTOBER 8, 2007 PASSED THE SENATE SEPTEMBER 5, 2007 PASSED THE ASSEMBLY SEPTEMBER 5, 2007 AMENDED IN SENATE JULY 17, 2007 INTRODUCED BY Committee on Banking and Finance (Lieu (Chair), Coto, Mendoza, Parra, Swanson, Torrico, and Wolk) FEBRUARY 23, 2007 An act to amend Sections 17244, 17245, 17246, and 17247 of, and to add Section 17240.5 to, the Government Code, relating to public finance. LEGISLATIVE COUNSEL'S DIGEST AB 1533, Committee on Banking and Finance. Registered warrants: reimbursement warrants. Existing law sets forth the procedures for the sale of registered reimbursement warrants, including the manner in which interest is fixed for the warrants. This bill would specify that these procedures apply to the sale of registered reimbursement warrants at public sale, and would additionally specify procedures for the sale of registered reimbursement warrants in negotiated sales, including the establishment of fixed or variable interest rates for those warrants. The bill would additionally require written notification to specified legislative committees before and after the issuance of registered reimbursement warrants, subject to specified criteria. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 17240.5 is added to the Government Code, to read: 17240.5. (a) If the Controller requests that registered reimbursement warrants be issued, and the Governor determines pursuant to Section 16381 that the need for those warrants is justified, a copy of the written request from the Controller shall also be provided to the chairperson and vice chairperson of the Senate Committee on Budget and Fiscal Review and the Assembly Committee on Budget, the chairperson and vice chairperson of the Joint Legislative Budget Committee, and the chairperson and vice chairperson of the Senate and Assembly Committee on Appropriations. (b) No later than 15 days following the completion of a registered reimbursement warrant issuance, the Controller shall report on the specific details of the issuance to the chairperson and vice chairperson of the Senate Committee on Budget and Fiscal Review and the Assembly Committee on Budget, the chairperson and vice chairperson of the Joint Legislative Budget Committee, and the chairperson and vice chairperson of the Senate and Assembly Committee on Appropriations. SEC. 2. Section 17244 of the Government Code is amended to read: 17244. (a) In lieu of prescribing a precise interest rate on registered reimbursement warrants, the committee may fix a maximum rate of interest for the warrants, and prescribe that the interest rate thereon, not in excess of that maximum, shall be either of the following: (1) Fixed in accordance with the best bids for the warrants if the warrants are sold at public sale. (2) Fixed or variable on the terms and conditions the Controller shall approve at the time of sale of the warrants if the warrants are sold in negotiated sales. (b) Different rates of interest for any reimbursement warrants may be so fixed or established by the Controller. SEC. 3. Section 17245 of the Government Code is amended to read: 17245. Registered reimbursement warrants shall be sold by the Controller at public sale to the best bidders or in negotiated sales on the terms and conditions the Controller shall approve. SEC. 4. Section 17246 of the Government Code is amended to read: 17246. Notice of public sale of registered reimbursement warrants shall be given by the Controller by publication, not less than three days prior to sale, at least once in a newspaper published in the City of Sacramento. SEC. 5. Section 17247 of the Government Code is amended to read: 17247. The notice of public sale shall specify the amount of warrants to be sold, and the minimum amount for which the Controller will consider bids, and shall invite sealed bids for the purchase of the warrants. The notice shall state that no bid will be accepted that is less than the face value of the warrants bid for, and that the warrants will be awarded to the persons making the best bids as determined by the Controller, considering the interest rate and premium offered, if any.