Amended in Senate May 23, 2014

Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2551

Introduced by Assembly Member Wilk

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(Coauthors: Assembly Members Beth Gaines and Olsen)

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(Coauthors: Senators Gaines and Vidak)

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February 21, 2014

An act to amend Section 9401 of the Elections Code, relating to elections.

LEGISLATIVE COUNSEL’S DIGEST

AB 2551, as amended, Wilk. Local ballot measures: bond issues.

Existing law requires all bond issues proposed by a county, city and county, city, district, or other political subdivision, or by any agency, department, or board thereof, to be submitted to the voters for approval. Existing law requires all official materials for the bond issue proposal to contain a statement of specified tax rate data.

This bill would require the statement to include the best estimate from official sources of the total debt service that would be required to be repaid if all the bonds are issued and sold.

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 9401 of the Elections Code is amended
to read:

9401.  

(a) In connection with each bond issue specified in
Section 9400, a statement shall be mailed to the voters with the
sample ballot for the bond election. The statement required by this
section shall be filed with the elections official conducting the
election not later than the 88th day begin delete prior to end delete begin insert before end insert the election,
and shall include all of the following:

(1) The best estimate from official sources of the tax rate that
would be required to be levied to fund that bond issue during the
first fiscal year after the first sale of the bonds based on assessed
valuations available at the time of the election or a projection based
on experience within the same jurisdiction or other demonstrable
factors.

(2) The best estimate from official sources of the tax rate that
would be required to be levied to fund that bond issue during the
first fiscal year after the last sale of the bonds if the bonds are
proposed to be sold in series, and an estimate of the year in which
that rate will apply, based on assessed valuations available at the
time of the election or a projection based on experience within the
same jurisdiction or other demonstrable factors.

(3) The best estimate from official sources of the highest tax
rate that would be required to be levied to fund that bond issue,
and an estimate of the year in which that rate will apply, based on
assessed valuations available at the time of the election or a
projection based on experience within the same jurisdiction or
other demonstrable factors.

(4) The best estimate from official sources of the total debt
service, including the principal and interest, that would be required
to be repaid if all the bonds are issued and sold. The estimate may
include information about the assumptions used to determine the
estimate.

(b) In addition, the statement may contain a declaration of policy
of the legislative or governing body of the applicable jurisdiction,
proposing to use revenues other than ad valorem taxes to fund the
bond issue, and the best estimate from official sources of these
revenues and the reduction in the tax rate levied to fund the bond
issue resulting from the substitution of revenue.

(c) The words “tax rate” as used in this chapter means tax rate
per one hundred dollars ($100) of assessed valuation on all property
to be taxed to fund a bond issue described in Section 9400.