BILL NUMBER: AB 1192	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Audra Strickland

                        FEBRUARY 27, 2009

   An act to add Section 37113 to the Government Code, relating to
cities.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1192, as introduced, Audra Strickland. Cities: powers.
   Existing law authorizes a board of trustees, city council, or
other governing body of a city, defined as a legislative body, to
pass ordinances not in conflict with state or federal law and the
state or federal constitution.
   This bill would prohibit a legislative body from passing an
ordinance creating an entity for the purpose of having the entity
issue debt to fund a public improvement project with the legislative
body making lease payments or other periodic payments to the entity
that are used to repay the entity's debt. This bill would also
declare that this prohibition is a matter of statewide concern, thus
making it applicable to charter and general cities.
   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 37113 is added to the Government Code, to read:

   37113.  A legislative body shall not create an entity for the
purpose of having the entity issue bonds or any other debt instrument
to fund a public improvement project with the legislative body
making lease payments or other periodic payments to the entity that
are used to repay the bonds or debt instrument.
  SEC. 2.  The Legislature finds and declares that the financial
stability of individual cities, as impacted by their engaging in
certain kinds of financial arrangements to incur debt, effects the
financial health of the state as a whole, and therefore this act
pertains to an issue of statewide concern and does not relate to
municipal affairs, as that term is used in Section 5 of Article XI of
the California Constitution.