BILL NUMBER: SB 501	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Correa

                        FEBRUARY 26, 2009

   An act to amend Section 8869.85 of the Government Code, relating
to government bonds.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 501, as introduced, Correa. California Debt Limit Allocation
Committee.
   Existing law requires the California Debt Limit Allocation
Committee to allocate to authorized state and local agency applicants
the volume ceiling for private activity bonds, as defined, that can
be issued in California in accordance with federal law.
   This bill would require the committee, if the committee determines
that a county has not applied to the committee for an allocation
during the current calendar year, to allow any local agency located
within the county to apply, within 45 days after that determination
is made by the committee, for all or a portion of the allocation for
which the county would have been eligible had it applied. The bill
would define "local agency" for these purposes to include a joint
powers authority that has one or more members located within the
county.
   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 8869.85 of the Government Code is amended to
read:
   8869.85.  (a) Each state agency shall apply to the committee for
allocation of a portion of the state ceiling, supplying any
information which the committee may require. The application may be
for a specific project, or it may be for a designated dollar amount,
to be utilized for projects or programs at the discretion of the
state agency. No private activity bonds issued by any state agency
shall be deemed to receive the benefit of any portion of the state
ceiling unless the committee has allocated or permitted the transfer
of a portion of the state ceiling to the state agency. The allocation
may be on any terms and conditions as the committee may determine.
   (b)  (1)    Any local agency may apply to the
committee for an allocation of a portion of the state ceiling,
supplying any information which the committee may require.
Applications from local agencies may only be for specific projects or
programs. No private activity bond issued by a local agency shall be
deemed to receive the benefit of any portion of the state ceiling
unless the committee has allocated or permitted the transfer of a
portion of the state ceiling to the local agency. The allocation may
be upon any terms and conditions as the committee may determine. 

   (2) (A) If the committee determines that a county has not applied
to the committee for an allocation during the current calendar year,
the committee shall allow any local agency located within the county
to apply, within 45 days after that determination is made by the
committee, for all or a portion of the allocation for which the
county would have been eligible had it applied.  
   (B) The local agency is not required to obtain consent from the
county, or obtain a written transfer of an allocation from the
county, in order to apply as authorized under this paragraph. 

   (C) For the purposes of this paragraph, "local agency" includes,
but is not limited to, a joint powers authority that has one or more
members located within the county. 
   (c) Any allocation made pursuant to this section shall be
irrevocable upon issuance of bonds pursuant thereto at least to the
extent of the amount of the bonds so issued. No allocation shall
permit the state agency or local agency which receives it to use all
or any portion of the allocation for a carryforward pursuant to
Section 146(f) of the Internal Revenue Code, unless the committee
expressly allows use of the allocation for a carryforward.
   (d) No allocation made to a state agency or a local agency
pursuant to this section may be transferred by the initial recipient
thereof to any other state agency or local agency unless the
committee expressly permits the transfer. With the committee's
permission, any state or local agency may, by resolution, transfer to
any other local agency or to any state agency or back to the
committee all or any portion of the agency's private activity bond
limit. Any such transfer shall be made in writing and may be general
or limited and subject to any terms and conditions as may be set
forth in the resolution or under the committee's permission, as long
as the transfer is irrevocable upon issuance of bonds pursuant to the
transfer, at least to the extent of the amount of the bonds so
issued. Each transferee shall maintain a written record of the
transfer in its records for at least the term of all private activity
bonds issued pursuant to the transfer. No transfer may be made
pursuant to this section in return for any payment of cash, property,
or other marketable thing of value.