HomeMy WebLinkAboutAB 1192 - Powers of CitiesCITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION
ON AB 1192 (STRICKLAND) AT ITS MEETING OF APRIL 28, 2009.
DATE: May 21, 2009
CONTENTS: AB 1192 Language
RECOMMENDATION:
XAP
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of April 28, 2009, and direct staff to prepare a letter of opposition for the Mayor's
signature with regard to AB 1192 (Strickland) relative to powers of cities.
BACKGROUND:
Existing law authorizes a Board of Trustee, City Council, or other governing body of a city to
pass ordinances not conflicting with State or Federal Law. If passed, AB 1192 would prohibit a
legislative body from passing an ordinance creating an entity for the purpose of having the entity
issue a 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 pay the entity's debt. The
restrictions that would be placed upon cities in the issuance of bonds could potentially have a
negative impact in its ability to conduct day-to-day business and proceed with projects.
Therefore, Legislative Review Committee recommends that the City Council opposition AB 1192
and direct staff to prepare a letter stating that position to appropriate legislators and committees
for the4llayor's signature.
PATRICIA SCULLY, CFEE
10r MANAG - EN ANALYST
r
SHEILA R. GILLIGA
ACM/COMMUNITY SERV
PAUL GIBSON
DIRECTOR OF FINANCE/CITY TREASURER
N WOHLMUTH
Y MANAGER
CITY COUNCILACTION
APPROVED ,� DENIED
RECEIVED O'I IIF.R
MEETING DATE
AYES• bensrn, Ftrg0:50n, Fiiyr-Iy, ! r'14/ o/ J
NOES: AfTine_ `J
ABSENT: A/ 4P
ABSTAIN: /1/M
VERIFIED BY:MI I (
Original on File with City Clerk'sOffice
AB 1192 Assembly Bill - AMENDED Page 1 of 2
BILL NUMBER: AB 1192 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 20, 2009
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 amended, 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 r---1�:g
„-,.-t+ny .... -..L1ty fer thc p-_r,:,-.. .,f having Lh . , x�City
issue debt N,:L11- ..1th LL.. 1,.71:.lativc
bedy-making er other periodic payments to th-
that a-- ::scd t., ` _t TLC • ., JJ. selling or
leasing any existing public improvement to a private or public
entity, including any entity controlled by the city, for the purposes
of renting or leasing back, or repurchasing through installment
payments that existing public improvement . 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. The legislative body of a city, including a charter city
or city and county, shall not sell or lease any existing public
improvement to a private or public entity, including an entity
controlled by the city, for the purposes of renting or leasing back,
or repurchasing through installment payments that existing public
improvement.
SEC. 2. The Legislature finds and declares that
the usual purpose of those arrangements is to evade the
constitutional requirement of voter approval for new debt. The
Legislature further finds and declares that increasing the debt to be
serviced by California taxpayers without their approval impairs the
financial health of cities, and the state as a whole, and therefore,
this act pertains to an issue of statewide concern and is not purely
a municipal affair, as that term is used in Section 5 of Article XI
of the California Constitution.
CDCTION 1. Seetie.. 37113 6,uded to thc
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AB 1192 Assembly Bill - AMENDED Page 2 of 2
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