California Assembly Bill AB2146 Amended / Bill

 BILL NUMBER: AB 2146AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 16, 2012 AMENDED IN ASSEMBLY MARCH 29, 2012 INTRODUCED BY Assembly Member  Mansoor   Cook   (   Coauthors:   Assembly Members   Jeffries,   Nestande,   and Portantino   )  FEBRUARY 23, 2012  An act to add Chapter 2.95 (commencing with Section 53399) to Part 1 of Division 2 of Title 5 of the Government Code, relating to local government finance.   An act to add Section 83123.5 to the Government Code, relating to the Political Reform Act of 1974.  LEGISLATIVE COUNSEL'S DIGEST AB 2146, as amended,  Mansoor   Cook  .  Former federal military bases: reuse: infrastructure financing districts.   Political Reform Act of 1974: local campaign reform: County of San Bernardino.   The Political Reform Act of 1974 establishes the Fair Political Practices Commission, which has the primary responsibility for the impartial, effective administration and implementation of the act, including acting as the civil prosecutor responsible for the enforcement of the penalty provisions of the act.   This bill would, upon mutual agreement between the Fair Political Practices Commission and the Board of Supervisors of the County of San Bernardino, authorize the Commission to have primary responsibility for the impartial, effective administration, implementation, and enforcement of a local campaign finance reform ordinance of the County of San Bernardino. The bill would authorize the Commission to investigate possible violations of the local county campaign finance reform ordinance and bring administrative actions against persons who violate the ordinance, as specified. The bill would require the Board of Supervisors of the County of San Bernardino to consult with the Commission prior to adopting and amending any local campaign finance reform ordinance that is subsequently enforced by the Commission. The bill would specify that the Board of Supervisors of the County of San Bernardino and the Commission may enter into any agreements necessary and appropriate for the operation of these provisions, including agreements for reimbursement of state costs with county funds. The bill would provide that the Board of Supervisors of the County of San Bernardino or the Commission may, at any time, by ordinance or resolution, terminate any agreement for the Commission to administer, implement, or enforce the local campaign finance reform ordinance or any provision thereof.   The bill would make legislative findings and declarations concerning the need for special legislation.   The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act's purposes upon a 2/3 vote of each house and compliance with specified procedural requirements.   This bill would declare that it furthers the purposes of the act.   Existing law authorizes the legislative body of a city or county to create an infrastructure financing district, adopt an infrastructure financing plan, and issue financing bonds, to finance specified public facilities, upon voter approval. Existing law requires that an infrastructure financing plan created by a legislative body include a date on which the district will cease to exist, not to exceed 30 years from the date on which the ordinance forming the district is adopted.   This bill would authorize the legislative body of a city or county to establish an infrastructure financing district for the area of a military base that has been closed by the federal government, as specified. If the legislative body chooses to establish an infrastructure financing district, the bill would require the legislative body of the city or county to prepare an infrastructure financing plan, subject to voter approval, as specified, and to include a date on which the district will cease to exist, not to exceed 30 years from the date on which the ordinance forming the district is adopted. The bill would additionally authorize the district to issue bonds, upon voter approval, to finance specified improvements in the area of a military base that has been closed by the federal government.  Vote:  majority   2/3  . Appropriation: no. Fiscal committee:  no   yes  . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 83123.5 is added to the   Government Code  , to read:   83123.5. (a) Upon mutual agreement between the Commission and the Board of Supervisors of the County of San Bernardino, the Commission is authorized to assume primary responsibility for the impartial, effective administration, implementation, and enforcement of a local campaign finance reform ordinance passed by the Board of Supervisors of the County of San Bernardino. The Commission is authorized to be the civil prosecutor responsible for the civil enforcement of that local campaign finance reform ordinance in accordance with this title. As the civil prosecutor of the County of San Bernardino's local campaign finance reform ordinance, the Commission may do both of the following: (1) Investigate possible violations of the local campaign finance reform ordinance. (2) Bring administrative actions in accordance with this title and Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2. (b) Any local campaign finance reform ordinance of the County of San Bernardino enforced by the Commission pursuant to this section shall comply with this title. (c) The Board of Supervisors of the County of San Bernardino shall consult with the Commission prior to adopting and amending any local campaign finance reform ordinance that is subsequently enforced by the Commission pursuant to this section. (d) The Board of Supervisors of the County of San Bernardino and the Commission may enter into any agreements necessary and appropriate to carry out the provisions of this section, including agreements pertaining to any necessary reimbursement of state costs with county funds for costs incurred by the Commission in administering, implementing, or enforcing a local campaign finance reform ordinance pursuant to this section. (e) The Board of Supervisors of the County of San Bernardino or the Commission may, at any time, by ordinance or resolution, terminate an agreement made pursuant to this section for the Commission to administer, implement, or enforce a local campaign finance reform ordinance or any provision thereof.   SEC. 2.   The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the necessity to avoid an appearance of corruption in the County of San Bernardino's electoral process. The proposed local campaign finance reform ordinance is intended to make it more difficult for candidates and influential individuals and entities to engage in quid pro quo corruption, make the financing of campaigns for elective county offices more transparent, and to make more information, especially financial information, regarding candidates and their supporters available to voters. Enforcement of the local campaign finance reform ordinance by the Commission is needed to ensure the integrity of the ordinance.   SEC. 3.   The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code.   SECTION 1.   Chapter 2.95 (commencing with Section 53399) is added to Part 1 of Division 2 of Title 5 of the Government Code, to read: CHAPTER 2.95. INFRASTRUCTURE FINANCING DISTRICTS REUSE OF MILITARY BASES Article 1. General Provisions 53399. The Legislature finds and declares all of the following: (a) Military bases that have been closed by the federal government were not included as development in the general plans prepared by cities and counties. (b) Cities and counties have not planned or provided for the infrastructure necessary to reuse military bases that have been closed by the federal government. (c) Military bases that have been closed by the federal government typically have unusable aged infrastructure and inadequate or nonexistent classroom space not capable of supporting future development. (d) Several of these bases that would be best used as public spaces, such as open space and parks, require environmental cleanup, which will require funding. (e) If additional tax sources, based on the reuse of a military base that has been closed by the federal government, are not directed back to that former military base, the former military base is not likely to be redeveloped, or it will take a considerably longer amount of time to redevelop the former military base. (f) Allowing tax increment financing will allow the tax base to increase more rapidly, thereby allowing these former military bases to be developed. 53399.1. For purposes of this chapter, the following terms have the following meanings: (a) "Affected taxing entity" means any governmental taxing agency that levied or had levied on its behalf a property tax on all or a portion of the property located in the proposed district in the fiscal year prior to the designation of the district, but not including any county office of education, school district, or community college district. (b) "Debt" means any binding obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals. (c) (1) "District" means an infrastructure financing district established on a military base that has been closed by the federal government. (2) An infrastructure financing district is a "district" within the meaning of Section 1 of Article XIII A of the California Constitution. (d) "Infrastructure financing district" means a legally constituted governmental entity established pursuant to this chapter for the sole purpose of financing public facilities on military bases that have been closed by the federal government. (e) (1) "Landowner" or "owner of land" means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of the land by the legislative body. (2) The legislative body has no obligation to obtain other information as to the ownership of land, and its determination of ownership shall be final and conclusive for the purposes of this chapter. A public agency is not a landowner or owner of land for purposes of this chapter, unless the public agency owns all of the land to be included within the proposed district. (f) "Legislative body" means the city council or board of supervisors. 53399.3. (a) A district may finance any of the following: (1) Construction of any of the following forms of infrastructure: (A) Utilities. (B) Roads. (C) Architecture and engineering. (2) Project management related to the types of infrastructure specified in paragraph (1). (3) Construction of school facilities, including architecture and engineering, and outside project management. (b) A district shall not finance the compensation of government officers or employees, routine or ongoing maintenance, repair work, or the costs of ongoing operation. 53399.5. Any action or proceeding to attack, review, set aside, void, or annul the creation of a district, adoption of an infrastructure financing plan, including a division of taxes thereunder, or an election pursuant to this chapter shall be commenced within 30 days after the enactment of the ordinance creating the district pursuant to Section 53399.36. Consistent with the time limitations of this section, such an action or proceeding with respect to a division of taxes under this chapter may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure, except that Section 869 of the Code of Civil Procedure shall not apply. 53399.7. An action to determine the validity of the issuance of bonds pursuant to this chapter may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. However, notwithstanding the time limits specified in Section 860 of the Code of Civil Procedure, the action shall be commenced within 30 days after adoption of the resolution pursuant to Section 53399.68 providing for issuance of the bonds if the action is brought by an interested person pursuant to Section 863 of the Code of Civil Procedure. Any appeal from a judgment in that action or proceeding shall be commenced within 30 days after entry of judgment. Article 2. Preparation and Adoption of Infrastructure Financing Plans 53399.10. A legislative body of a city or county may designate one or more proposed infrastructure financing districts pursuant to this chapter. Proceedings for the establishment of a district shall be instituted by the adoption of a resolution of intention to establish the proposed district and shall do all of the following: (a) State that an infrastructure financing district is proposed to be established under the terms of this chapter and describe the boundaries of the proposed district, which may be accomplished by reference to a map on file in the office of the clerk of the city or county. (b) State the type of public facilities proposed to be financed by the district. The district may only finance public facilities authorized by Section 53399.3. (c) State that incremental property tax revenue from the city or county and some or all affected taxing entities within the district may be used to finance these public facilities. (d) Fix a time and place for a public hearing on the proposal. 53399.12. The legislative body shall direct the clerk to mail a copy of the resolution of intention to create the district to each owner of land within the district. 53399.14. The legislative body shall direct the clerk to mail a copy of the resolution to each affected taxing entity. 53399.16. After adopting the resolution pursuant to Section 53399.10, the legislative body shall designate an appropriate official to prepare an infrastructure plan pursuant to Section 53399.18. 53399.18. After receipt of a copy of the resolution of intention to establish a district, the official designated pursuant to Section 53399.16 shall prepare a proposed infrastructure financing plan. The proposed infrastructure financing plan shall be consistent with the general plan of the city or county within which the district is located and shall include all of the following: (a) A map and legal description of the proposed district, which may include all or a portion of the district designated by the legislative body in its resolution of intention. (b) A description of the public facilities required to serve the development proposed in the area of the district including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the public improvements and facilities. (c) A finding that the public facilities are of communitywide significance and provide significant benefits to an area larger than the area of the district. (d) A financing section, which shall contain all of the following information: (1) A specification of the maximum portion of the incremental tax revenue of the city or county and of each affected taxing entity proposed to be committed to the district for each year during which the district will receive incremental tax revenue. The portion need not be the same for all affected taxing entities. The portion may change over time. (2) A projection of the amount of tax revenues expected to be received by the district in each year during that the district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year. (3) A plan for financing the public facilities to be assisted by the district, including a detailed description of any intention to incur debt. (4) A limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan. (5) A date on which the district will cease to exist, by which time all tax allocations to the district will end. The date shall not be more than 30 years from the date on which the ordinance forming the district is adopted pursuant to Section 53399.36. (6) An analysis of the costs to the city or county of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city or county as a result of expected development in the area of the district. (7) An analysis of the projected fiscal impact of the district and the associated development upon each affected taxing entity. 53399.20. The infrastructure financing plan shall be sent to each owner of land within the proposed district and to each affected taxing entity together with any report required by the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that pertains to the proposed public facilities or the proposed development project for which the public facilities are needed, and shall be made available for public inspection. The report shall also be sent to the planning commission and the legislative body. 53399.22. The designated official shall consult with each affected taxing entity, and, at the request of any affected taxing entity, shall meet with representatives of an affected taxing entity. Any affected taxing entity may suggest revisions to the plan. 53399.24. (a) The legislative body shall conduct a public hearing prior to adopting the proposed infrastructure financing plan. The public hearing shall be called no sooner than 60 days after the plan has been sent to each affected taxing entity. In addition to the notice given to landowners and affected taxing entities pursuant to Sections 53399.14 and 53399.16, notice of the public hearing shall be given by publication not less than once a week for four successive weeks in a newspaper of general circulation published in the city or county in which the proposed district is located. The notice shall state that the district will be used to finance public works, briefly describe the public works, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, describe the boundaries of the proposed district and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the prior proceedings, may appear before the legislative body and object to the adoption of the proposed plan by the legislative body. (b) At the hour set in the required notices, the legislative body shall proceed to hear and pass upon all written and oral objections. The hearing may be continued from time to time. The legislative body shall consider the recommendations, if any, of affected taxing entities, and all evidence and testimony for and against the adoption of the plan. The legislative body may modify the plan by eliminating or reducing the size and cost of proposed public works, by reducing the amount of proposed debt, or by reducing the portion, amount, or duration of incremental tax revenues to be committed to the district. 53399.26. (a) The legislative body shall not enact a resolution proposing formation of a district and providing for the division of taxes of any affected taxing entity pursuant to Article 3 (commencing with Section 53399.50) unless a resolution approving the plan has been adopted by the governing body of each affected taxing entity which is proposed to be subject to the division of taxes pursuant to Article 3 (commencing with Section 53399.50) has been filed with the legislative body at or prior to the time of the hearing. (b) Nothing in this section shall be construed to prevent the legislative body from amending its infrastructure financing plan and adopting a resolution proposing formation of the infrastructure financing district without allocation of the tax revenues of any affected taxing entity that has not approved the infrastructure financing plan by resolution of the governing body of the affected taxing entity. 53399.28. (a) At the conclusion of the hearing in Section 53399.24, the legislative body may adopt a resolution proposing adoption of the infrastructure financing plan, as modified, and formation of the infrastructure financing district in a manner consistent with Section 53399.26, or it may abandon the proceedings. If the legislative body adopts a resolution proposing formation of the district, it shall then submit the proposal to create the district to the qualified electors of the proposed district in the next general election or in a special election to be held, notwithstanding any other requirement, including any requirement that elections be held on specified dates, contained in the Elections Code, at least 90 days, but not more than 180 days, following the adoption of the resolution of formation. The legislative body shall provide the resolution of formation, a certified map of sufficient scale and clarity to show the boundaries of the district, and a sufficient description to allow the election official to determine the boundaries of the district to the official conducting the election within three business days after the adoption of the resolution of formation. The assessor's parcel numbers for the land within the district shall be included if it is a landowner election or the district does not conform to an existing district's boundaries and if requested by the official conducting the election. If the election is to be held less than 125 days following the adoption of the resolution of formation, the concurrence of the election official conducting the election shall be required. However, any time limit specified by this section or requirement pertaining to the conduct of the election may be waived with the unanimous consent of the qualified electors of the proposed district and the concurrence of the election official conducting the election. (b) If at least 12 persons have been registered to vote within the territory of the proposed district for each of the 90 days preceding the close of the hearing, the vote shall be by the registered voters of the proposed district, who need not necessarily be the same persons, with each voter having one vote. Otherwise, the vote shall be by the landowners of the proposed district and each landowner who is the owner of record at the close of the protest hearing, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that he or she owns within the proposed district. The number of votes to be voted by a particular landowner shall be specified on the ballot provided to that landowner. (c) Ballots for the special election authorized by subdivision (a) may be distributed to qualified electors by mail with return postage prepaid or by personal service by the election official. The official conducting the election may certify the proper mailing of ballots by an affidavit, which shall be exclusive proof of mailing in the absence of fraud. The voted ballots shall be returned to the election officer conducting the election not later than the hour specified in the resolution calling the election. However, if all the qualified voters have voted, the election shall be closed. 53399.30. (a) Except as otherwise provided in this chapter, the provisions of law regulating elections of the local agency that calls an election pursuant to this chapter, insofar as they may be applicable, shall govern all elections conducted pursuant to this chapter. Except as provided in subdivision (b), there shall be prepared and included in the ballot material provided to each voter, an impartial analysis pursuant to Section 9160 or 9280 of the Elections Code, arguments and rebuttals, if any, pursuant to Sections 9162 to 9167, inclusive, and 9190 of the Elections Code or pursuant to Sections 9281 to 9287, inclusive, and 9295 of the Elections Code. (b) If the vote is to be by the landowners of the proposed district, analysis and arguments may be waived with the unanimous consent of all the landowners and shall be so stated in the order for the election. 53399.32. (a) If the election is to be conducted by mail ballot, the election official conducting the election shall provide ballots and election materials pursuant to subdivision (d) of Section 53326 and Section 53327, together with all supplies and instructions necessary for the use and return of the ballot. (b) The identification envelope for return of mail ballots used in landowner elections shall contain the following: (1) The name of the landowner. (2) The address of the landowner. (3) A declaration, under penalty of perjury, stating that the voter is the owner of record or the authorized representative of the landowner entitled to vote and is the person whose name appears on the identification envelope. (4) The printed name and signature of the voter. (5) The address of the voter. (6) The date of signing and place of execution of the declaration pursuant to paragraph (3). (7) A notice that the envelope contains an official ballot and is to be opened only by the canvassing board. 53399.34. After the canvass of returns of any election pursuant to Section 53399.28, the legislative body may, by ordinance, adopt the infrastructure financing plan and create the district with full force and effect of law, if two-thirds of the votes upon the question of creating the district are in favor of creating the district. 53399.36. After the canvass of returns of any election conducted pursuant to Section 53399.58, the legislative body shall take no further action with respect to the proposed infrastructure financing district for one year from the date of the election if the question of creating the district fails to receive approval by two-thirds of the votes cast upon the question. 53399.38. The legislative body may submit a proposition to establish or change the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, of a district to the qualified electors of a proposed or established district. The proposition establishing or changing the appropriations limit shall become effective if approved by the qualified electors voting on the proposition and shall be adjusted for changes in the cost of living and changes in populations, as defined by subdivisions (b) and (c) of Section 7901, except that the change in population may be estimated by the legislative body in the absence of an estimate by the Department of Finance, and in accordance with Section 1 of Article XIIIB of the California Constitution. For purposes of adjusting for changes in population, the population of the district shall be deemed to be at least one person during each calendar year. Any election held pursuant to this section may be combined with any election held pursuant to Section 53399.28 in any convenient manner. The legislative body may, by majority vote, initiate proceedings to issue bonds pursuant to this chapter by adopting a resolution stating its intent to issue the bonds, subject to voter approval. Article 3. Division of Taxes 53399.50. Any infrastructure financing plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the infrastructure financing district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the ordinance adopted pursuant to Section 53399.34 to create the district, shall be divided as follows: (a) That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable property in the district as shown upon the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized prior to the effective date of the ordinance adopted pursuant to Section 53399.26 to create the district, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid. (b) That portion of the levied taxes each year specified in the adopted infrastructure financing plan for the city or county and each affected taxing entity that has agreed to participate pursuant to Section 53399.26 in excess of the amount specified in subdivision (a) shall be allocated to, and when collected shall be paid into a special fund of, the district for all lawful purposes of the district. Unless and until the total assessed valuation of the taxable property in a district exceeds the total assessed value of the taxable property in the district as shown by the last equalized assessment roll referred to in subdivision (a), all of the taxes levied and collected upon the taxable property in the district shall be paid to the respective affected taxing entities. When the district ceases to exist pursuant to the adopted infrastructure financing plan, all moneys thereafter received from taxes upon the taxable property in the district shall be paid to the respective affected taxing entities as taxes on all other property are paid. 53399.52. All costs incurred by a city or county in connection with the division of taxes pursuant to Section 53399.50 for a district shall be paid by that district. Article 4. Tax Increment Bonds 53399.60. The legislative body may, by majority vote, initiate proceedings to issue bonds pursuant to this chapter by adopting a resolution stating its intent to issue the bonds, subject to water approval. 53399.62. The resolution adopted pursuant to Section 53399.60 shall contain all of the following information: (a) A description of the facilities to be financed with the proceeds of the proposed bond issue. (b) The estimated cost of the facilities, the estimated cost of preparing and issuing the bonds, and the principal amount of the proposed bond issuance. (c) The maximum interest rate and discount on the proposed bond issuance. (d) The date of the election on the proposed bond issuance and the manner of holding the election. (e) A determination of the amount of tax revenue available or estimated to be available, for the payment of the principal of, and interest on, the bonds. (f) A finding that the amount necessary to pay the principal of, and interest on, the proposed bond issuance will be less than, or equal to, the amount determined pursuant to subdivision (e). 53399.64. The clerk of the legislative body shall publish the resolution adopted pursuant to Section 53399.60 once a day for at least seven successive days in a newspaper published in the city or county at least six days a week, or at least once a week for two successive weeks in a newspaper published in the city or county less than six days a week. If there are no newspapers meeting these criteria, the resolution shall be posted in three public places within the territory of the district for two succeeding weeks. 53399.66. The legislative body shall submit the proposal to issue the bonds to the voters who reside within the district. The election shall be conducted in the same manner as the election to create the district pursuant to Section 53399.28 and the two elections may be consolidated. 53399.68. (a) The bonds may be issued if two-thirds of the voters voting on the proposition vote in favor of issuing the bonds. (b) If the voters approve the issuance of the bonds as provided by subdivision (a), the legislative body shall proceed with the issuance of the bonds by adopting a resolution that shall provide for all of the following: (1) The issuance of the bonds in one or more series. (2) The principal amount of the bonds, which shall be consistent with the amount specified in subdivision (b) of Section 53399.62. (3) The date the bonds will bear. (4) The date of maturity of the bonds. (5) The denomination of the bonds. (6) The form of the bonds. (7) The manner of execution of the bonds. (8) The medium of payment in which the bonds are payable. (9) The place or manner of payment and any requirements for registration of the bonds. (10) The terms of call or redemption, with or without premium. 53399.70. If any proposition submitted to the voters pursuant to this chapter is defeated by the voters, the legislative body shall not submit, or cause to be submitted, a similar proposition to the voters for at least one year after the first election. 53399.72. The legislative body may, by majority vote, provide for refunding of bonds issued pursuant to this chapter. However, refunding bonds shall not be issued if the total net interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds exceeds the total net interest cost to maturity on the bonds to be refunded. The legislative body may not extend the time to maturity of the bonds. 53399.74. The legislative body or any person executing the bonds shall not be personally liable on the bonds by reason of their issuance. The bonds and other obligations of a district issued pursuant to this chapter are not a debt of the city, county, or state or of any of its political subdivisions, other than the district, and none of those entities, other than the district, shall be liable on the bonds and the bonds or obligations shall be payable exclusively from funds or properties of the district. The bonds shall contain a statement to this effect on their face. The bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation. 53399.76. The bonds may be sold at discount not to exceed 5 percent of par at public sale. At least five days prior to the sale, notice shall be published, pursuant to Section 6061, in a newspaper of general circulation and in a financial newspaper published in the City and County of San Francisco and in the City of Los Angeles. The bonds may be sold at not less than par to the federal government at private sale without any public advertisement. 53399.78. If any member of the legislative body whose signature appears on bonds ceases to be a member of the legislative body before delivery of the bonds, his or her signature is as effective as if he or she had remained in office. Bonds issued pursuant to this chapter are fully negotiable.