Amended in Senate June 4, 2013

Amended in Assembly April 25, 2013

Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 621

Introduced by Assembly Member Wagner

(Coauthors: Assembly Members Beth Gaines and Harkey)

February 20, 2013

An act to add Section 53593.5 to the Government Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

AB 621, as amended, Wagner. Local government: bonds.

Existing law prohibits an investment firm, as defined, from having specified interests in a new issue of bonds from a local agency.

This bill would prohibit a local agency from entering into a financial advisory, legal advisory, underwriting, or similar relationship with an individual or firm, with respect to a bond issue that requires voter approval on or after January 1, 2014, if that individual or begin delete firm, or an employee, agent, or person related, as defined, to an employee or agent of the individual or firm, end delete begin insert firm end insert provided or will provide bond campaign begin delete services, as defined, end delete begin insert services end insert to the bond campaign. begin insert The bill would define certain terms for those purposes. end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 53593.5 is added to the Government
Code, to read:

53593.5.  

(a) A local agency shall not enter into a financial
advisory, legal advisory, underwriting, or other similar relationship
with an individual or firm, with respect to a new issue of bonds
that requires voter approval on or after January 1, 2014, if that
individual or firm begin delete , or an employee, agent, or person related to an
employee or agent of the individual or firm, end delete provided or will
provide bond campaign services to the bond campaign.

(b) As used in this section:

(1) (A) “Bond campaign services” includes fundraising,
donation by the individual or firm to the bond campaign, public
opinion polling, election strategy and management, organization
of campaign volunteers, get-out-the-vote services, development
of campaign literature, and advocacy materials.

(B) “Bond campaign services” does not include either of the
following:

(i) Advice and support related to the preparation of tax rate
statements and other documentation required for inclusion in the
voter pamphlet published by the applicable county registrar of
voters.

(ii) Public opinion polling that is conducted before a bond
measure is placed on the ballot for the purposes of gathering
information regarding, and evaluating the potential for, the adoption
of the bond measure by the electorate.

begin delete

(2)

end delete begin delete

 “Related” includes, but is not limited to, a family relationship
by blood or marriage, a financial relationship, an affiliation
between business associations, or business associations with
directors or principals in common.

end delete begin insert

(2) “Individual” means a person engaged in the business of
providing financial advice, legal advice, underwriting, or other
similar services.

end insert