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

Lozano Smith Client News Brief
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 implemented prior to the time a local agency sells debt. A local agency must also certify that it has a debt policy in place when it reports the proposed sale to the California Debt and Investment Advisory Commission (no later than 30 days prior to proposed sale).

Lozano Smith has developed a template debt policy for our public agency clients that addresses the statutory requirements set out in SB 1029. If you are interested in receiving a copy of the template debt policy for consideration by your governing board, or if you have questions about general obligation bonds or any other issues impacting California school district or community college financing, please contact an attorney at one of our nine offices located statewide. You can also visit our website, follow us on Facebook or Twitter or download our Client News Brief App.
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As the information contained herein is necessarily general, its application to a particular set of facts and circumstances may vary. For this reason, this News Brief does not constitute legal advice. We recommend that you consult with your counsel prior to acting on the information contained herein.