SECTIONS 53995-53997 - California Statutes

GOVERNMENT CODE

SECTION 53995-53997

53995. As used in this article:
(a) "Financial transaction" means any agreement or arrangement
entered into between a local agency or the treasurer of a local
agency and any party or parties for the performance of required
financial services or duties by either the local agency or the other
party or parties, or both. "Financial transaction" includes, but is
not limited to, financial affairs of a local agency, as provided in
Chapter 3 (commencing with Section 53400 and Chapter 4 (commencing
with Section 53600)).
(b) "Legislative body" means the elected or appointed governing
body or authority of a local agency.
(c) "Local agency" means a city, county, city and county,
including a chartered city, county, or city and county, redevelopment
agency, special district, school district, community college
district, county board of education, county superintendent of
schools, or any agency of the state formed for the local performance
of governmental or proprietary functions within limited boundaries.
(d) "Obligation of contract" has the same meaning and shall be
subject to the same interpretation as "obligation of contract" has in
Section 9 of Article I of the Constitution.
(e) "Treasurer" means the treasurer of the local agency.

53996. The Legislature hereby finds and declares that a local
agency's obligation of contract, as that term is used and interpreted
in Section 9 of Article I of the California Constitution, in a
financial transaction, commences when the legislative body adopts a
resolution officially entering into the contract or when the
treasurer, acting on his or her authority, enters into the contract.
Therefore, in interpreting Section 9 of Article I of the California
Constitution, the Legislature finds and declares that no law may be
passed which has the effect of impairing a local agency's existing
obligation of contract with regard to a financial transaction.

53997. (a) A local agency's obligation of contract, with regard to
a financial transaction, shall commence when the legislative body
adopts a resolution formally adopting, approving, or entering into
any financial transaction, or when the treasurer, acting on his or
her authority, enters into any financial transaction.
(b) Notwithstanding subdivision (a), the legislative body or the
treasurer may commence its obligation of contract, with regard to a
financial transaction, at any other point in the financial
transaction with the mutual consent of the legislative body or the
treasurer and the other party or parties to the financial
transaction.