Recognizing the inherent cross-over within our existing practice areas, and coupled with the need for specialists in financial legal services, Lozano Smith's Public Finance Group was formed by experienced attorneys specializing in public finance work, providing expert and objective legal advice on the validity of bonds, the tax treatment of interest on bonds, appropriate and adequate disclosure, post-issuance tax compliance, and record-keeping requirements. Lozano Smith also assists with legal services in related contexts such as bond elections, parcel taxes, developer fees, special taxes, special assessments, and special tax and assessment lien foreclosure.

Areas of Practice

  • Bond, Disclosure, Special and Issuer's Counsel
  • Proposition 39 General Obligation Bonds
  • Refunding Bonds
  • Revenue Bonds
  • Mello-Roos and Mark-Roos Bonds
  • Bond Anticipation Notes
  • Certificates of Participation
  • Lease and Lease-Purchase Financings
  • Tax and Revenue Anticipation Notes
  • Build America Bonds
  • Qualified Zone Academy Bonds
  • Parcel Taxes and Assessments
  • Developer Fees

Real World Applications

Our public finance attorneys are mindful both of the law governing bonds and of the historic customs and practices associated with public finance. Lozano Smith attorneys are nationally recognized as municipal bond counsel, as listed in the Bond Buyers' Municipal Marketplace Guide, commonly referred to as "The Red Book." Members of the firm have successfully delivered disclosure counsel services for a multitude of financings for a wide array of projects.

Combining bond counsel expertise with in-depth experience in school and community college district land acquisition, facilities planning, and construction, Lozano Smith public finance attorneys provide clients with a holistic approach - helping to take financing projects from conception of a facilities improvement plan through financing issuance and beyond.

AB 48 Increases Bonding Capacity, Provides Facilities Funding At Multiple Levels, Prioritizes Small School Districts, And Reduces Available Developer Fees For School Districts … But Only Applies If Voters Approve A School Facilities Bond In March

By:Harold Freiman, Daniel Maruccia, Deepika Thompson, James McCann -

October 2019Number 62The California Legislature recently passed, and on October 7 Governor Newsom signed, Assembly Bill (AB) 48, known as the "Public Preschool, K-12, and College Health and Safety Bond Act of 2020."AB 48 places a $15 billion statewide K-12 school and college facilities general obligation bond on the March 3, 2020 ballot.Contingent on voter approval of the statewide bond measure at the Presidential Primary election on March 3, 2020, AB 48 would introduce a slew of significant ...

Legislature Takes Another Run At Bond Measure Ballot Language Requirements

By:Daniel Maruccia -

October 2019Number 42UPDATE: Governor Newsom vetoed SB 268 on October 13, citing concern that the bill, as crafted, would “reduce transparency for local tax and bond measures.” As a result, existing ballot language requirements, including those added by AB 809 and AB 195, will remain in effect for the 2020 elections, and beyond, unless and until the Legislature revisits the issue again in the future.In an ongoing saga that began with the passage of Assembly Bill (AB) 809 in 2015, the Legi...

SEC: Bank Loans and Other Private Placements to Trigger 10-Day Continuing Disclosure Reporting

By:Daniel Maruccia, Kate Holding -

November 2018 Number 82 The Securities Exchange Commission's (SEC) Rule 15c2-12 requires that an issuer of publicly offered municipal securities, such as bonds or certificates of participation, commit to disclosing certain material events that occur while those securities are outstanding. Now, the SEC has added two new items to the list of events requiring disclosure. They are: (1) an incurrence of a material financial obligation, or an agreement to events of default, remedies, priority r...

Tax Bill Eliminates Advance Refunding Opportunities

By:Daniel Maruccia -

January 2018 Number 1 On December 22, 2017, President Donald J. Trump signed the Tax Cuts and Jobs Act of 2017, putting into place the most sweeping tax reform seen in three decades, including significant cuts to corporate and individual tax rates. The new law also effectively eliminates a critical tool local agencies have long used to save taxpayers money. The tax bill eliminated the tax-exempt status of advance refunding bonds, effectively ending their use by local government agencie...

New Law Squeezes Local Ballot Measures for Bonds

By:Daniel Maruccia -

December 2017 Number 82 A significant new law will require local public agencies to include additional information in summary statements for local ballot measures that raise taxes, including school district general obligation bond measures. Assembly Bill (AB) 195 will amend section 13119 of the Elections Code by requiring summary statements for all local ballot measures that impose or raise a tax to include the amount of money the tax will raise annually and the rate and duration of the t...

Bond Insurers on Credit Watch

By:Daniel Maruccia, Jennifer Bradlee -

June 2017 Number 30 On June 6, 2017, S&P Global Ratings (S&P) placed two of the three active municipal bond insurers, Build America Mutual Assurance Company (BAM) and National Public Finance Guarantee Corp. (NPFGC), on credit watch with negative implications. S&P intends to review the insurers and may adjust their assigned rating based on their competitive strengths or weaknesses relative to their peers. S&P stated that its review may lead to a downgrade of BAM or NPFGC...

All Local Agencies Must Adopt Debt Policy Prior to Debt Issuance as of January 1, 2017

By:Daniel Maruccia -

December 2016 As Lozano Smith previously reported (see 2016 Client News Brief No. 69), on September 12, 2016, Governor Jerry Brown signed Senate Bill (SB) 1029, which requires all California public agencies to report annually on any debt sold on or after January 21, 2017. In addition to the annual reporting requirement, SB 1029 requires all public agencies to implement a debt policy covering certain minimum statutory requirements. Effective January 1, 2017, a debt policy must be implemente...