CABOC Legislative Proposals, 2023
Little Hoover Commission Recommendation 2017
Recommendation 6: Develop easy-to-access online training materials for members of Citizens’ Bond Oversight Committees. Specifically, the Governor and Legislature should direct and authorize one-time funding to the Fiscal Crisis and Management Assistance Team to develop online training for local Citizens’ Bond Oversight Committee members, with input and assistance from the California Debt and Investment Advisory Committee and the California League of Bond Oversight Committees. (A Little Hoover Commission Letter Report #236, February 2017, page 20)
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What the CABOC 2023 Legislative Proposal Would Provide
For the first time, the 2023 CABOC legislative proposal would provide funding for independent legal advice for CBOCs. The proposal requires the annual Proposition 39 performance audit auditor to file a copy of the audit with the California Debt and Investment Advisory Commission (CDIAC) no later than 30 days after its issuance. Additionally, the legislative proposal will require a fee to pay for the education, training, and support of CBOCs by purchasers of Proposition 39 bonds. The proposal has CDIAC working with CABOC to develop easy-to-access online training materials.
-- CDIAC is the State's clearinghouse for public debt issuance information. The commission improves the practice of public finance in California by providing responsive and reliable information, education, and guidance to state and local public agencies and other public finance professionals.
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THE PROPOSAL
Little Hoover Commission Recommendation 6
“Develop easy to access online training for members of Citizens Bond Oversight Committees.”
Add Government Code Section 8855(h)(8): “Establish a continuing education, training and support program including independent legal advice to Proposition 39 school bond Citizens’ Bond Oversight Committees established by Education Code Section 15278(a) and districts with Proposition 39 school bond Citizens’ Bond Oversight Committees.
-- Add Government Code Section 8855(l): The auditor of the annual Proposition 39 school bond independent performance audit required by subparagraph (C) of paragraph (3) of subsection (b) of Section 1 of Article XIIIA of the California Constitution shall file a copy of said audit with CDIAC no later than 30 days after its issuance.
-- Add Government Code Section 8855(m): The auditor of the annual Proposition 39 school bond independent financial audit required by subparagraph (C) of paragraph (3) of subsection (b) of Section 1 of Article XIIIA of the California Constitution shall file a copy of said audit with CDIAC no later than 30 days after its issuance.
-- Amend Government Code Section 8856 by adding: “The commission may also charge an additional fee to the lead underwriter, the purchaser, or the lender in an amount equal to xxx of 1 percent of the principal amount of the issue Proposition 39 school bonds, but not to exceed xxx thousand dollars ($X,000) for any issue for education, training, and support for Proposition 39 school Citizens’ Bond Oversight Committees and districts with Proposition 39 school bond Citizens’ Bond Oversight Committees.
Rational:
CDIAC, CABOC, and the Little Hoover Commission have a common interest in providing education and oversight on debt issuance.
-- One of the California Debt and Investment Advisory Commission’s (CDIAC) missions is “Establish a continuing education program for local officials having direct or supervisory responsibilities over municipal investments and debt issuance. The commission shall undertake these and any other activities necessary to disclose investment and debt issuance practices and strategies that may be conducive for oversight purposes.” [Government Code Section 8855(h)(7)]
-- “The California Association of Bond Oversight Committees is dedicated to the proposition that taxpayers deserve information on proper bond expenditures through facilitation of independent citizens’ bond oversight committees in accordance with the passage of Proposition 39 (School Facilities. 55% Local Vote.). Our purpose is to develop and deliver support such as training, newsletters, conferences and workshops and to represent our collective interests at the statewide level.” (Articles of Incorporation)
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Little Hoover Commission Reports:
2023 CABOC Legislative Proposal PDF:
https://www.bondoversight.org/wp-content/uploads/2022/06/LegislativeProgram2023_6.11.22.pdf
