BILL NUMBER: AB 1277	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Harkey

                        FEBRUARY 27, 2009

   An act to add Section 16752.2 to the Government Code, relating to
state finance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1277, as introduced, Harkey. State bonds: sale.
   Existing law authorizes the Treasurer to cancel or postpone the
sale of state bonds to an indefinite date prior to or at the time and
place fixed for the sale of state bonds.
   This bill would further authorize the Treasurer to delay the sale
of certain bonds under 3 specified conditions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 16752.2 is added to the Government Code, to
read:
   16752.2.  The Treasurer may delay the sale of bonds that are
subject to approval pursuant to Section 1 of Article XVI of the
California Constitution and the principal and interest for which will
be met exclusively from General Fund revenues, if any of the
following conditions are met:
   (a) The Treasurer, in consultation with the Controller and the
Director of Finance, determines that making principal and interest
payments would result in payments from the General Fund for total
debt service on bonds subject to this section that exceed 6 percent
of the total General Fund revenues for the current fiscal year.
   (b) The cost of commercial paper needed to fund a start-up loan
would be more than three times the normal costs of commercial paper
experienced by the Treasurer over the last two fiscal years.
   (c) The Treasurer determines that the Pooled Money Investment
Account does not have sufficient funds to loan an amount equal to the
bond proceeds, as provided for in Section 16313.