BILL ANALYSIS
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UNFINISHED BUSINESS
Bill No: SB 67
Author: Senate Budget and Fiscal Review Committee
Amended: 9/4/09
Vote: 27 - Urgency
PRIOR SENATE VOTE NOT RELEVANT
ASSEMBLY FLOOR : Not available
SUBJECT : Local government finance: property tax
revenues
SOURCE : Author
DIGEST : Assembly Amendments delete the prior version of
the bill expressing the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2009.
This bill now makes clean up revisions to the Proposition
1A (2004) suspension and securitizing provisions of the
July 2009-10 Budget Act enacted through AB 15XXXX (Gaines),
Chapter 14, Statutes of 2009, Fourth Extraordinary Session.
ANALYSIS :
This bill:
1. Increases the minimum size of the Joint Powers Authority
(JPA) from 100 local agencies to 250 local agencies.
Ensures the bonds are sold by a single JPA instead of
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multiple JPAs, thereby minimizing costs to the state.
2. Clarifies and revises various dates and timelines to
streamline the process and eliminate potential ambiguity
for bond investors.
3. Allows bond proceeds to be used to reimburse the State
Treasurer (Treasurer) for his work in reviewing the
bonds, and provide a streamlined contracting process so
the Treasurer can quickly procure fiscal advisory
services. Under the existing language, the Treasurer
and the Director of the Department of Finance (DOF) have
certain oversight responsibilities to protect the
interests of the state.
4. Removes the requirement for at least two early call
dates, and instead allow periodic interest payments, as
approved by the Director of DOF and the Treasurer.
Removing the early call date requirement will provide
more flexibility to negotiate terms that minimize
interest and other costs.
5. Revises the extreme hardship exemption process such that
the determination is made after the anticipated sales of
bonds, but not later than December 1, 2009. If bonds
are successfully sold and allocated, locals will see no
revenue loss or delay associated with the Proposition 1A
suspension, and no hardship exemptions will be granted.
6. Adds "city" and "a city and county" to the existing
authority for a county to borrow funds from a
Redevelopment Agency. An RDA would have the option, but
not be required, to loan funds to a city, county, or
city and county to fully or partially replace their
Proposition 1A reduction. No such loan could be made if
the Redevelopment Agency has itself borrowed from its
Low- and Moderate-Income Housing Fund.
7. Makes other technical and clarifying changes requested
by local governments, bond counsel, and the Treasurer's
Office to facilitate the securitization of Proposition
1A receivables.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
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Local: Yes
DLW:cm 9/11/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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