SECTIONS 5870-5872 - California Statutes

GOVERNMENT CODE

SECTION 5870-5872

5870. As used in this chapter, the following definitions apply:
(a) "Conduit financing" means the issuance of conduit revenue
bonds.
(b) "Conduit financing provider" means any county, city, city and
county, public district, public authority, public corporation,
nonprofit corporation, joint powers authority, or other statutorily
constituted public entity that issues one or more conduit revenue
bonds.
(c) "Conduit revenue bond" means any municipal security the
proceeds of which are loaned to any nongovernmental borrower,
including, but not limited to, persons, for-profit corporations,
nonprofit corporations pursuant to Section 501(c)(3) of the Internal
Revenue Code, partnerships, and other legal entities for purposes
that are permitted for qualified private activity bonds under
applicable federal law.

5871. A conduit financing provider shall make the following
information available on its Internet Web site, to the extent that it
maintains an Internet Web site:
(a) Agendas for regular meetings posted by a conduit financing
provider pursuant to Section 54954.2.
(b) Notices of special meetings posted by a conduit financing
provider pursuant to Section 54956.
(c) Notices of meetings of a conduit financing provider provided
pursuant to Section 11125.
(d) Staff reports on the items included on the agendas listed in
subdivisions (a), (b), and (c).
(e) Minutes of the meetings for which the agendas listed in
subdivisions (a), (b), and (c) were produced.
(f) Audits of the conduit financing provider's accounts and
records.
(g) Copies of reports of the conduit financing provider's annual
financial transactions required pursuant to Section 12460 or 12463.
(h) Annual lists of applications approved for financing by the
governing body of the conduit financing provider for any fiscal year
in which at least one application is approved.

5872. (a) When an audit of a conduit financing provider's accounts
and records is required by law, in addition to any other
requirements, the audit shall include all of the following:
(1) A disclosure of fees imposed on borrowers by, or on behalf of,
the conduit financing provider.
(2) A disclosure of expenditures related to those fees made by or
on behalf of the conduit financing provider.
(3) The dollar amount and nature of these fees and expenses.
(4) A disclosure of the amount of bonds authorized but unsold at
the end of the time period covered by the audit.
(5) A disclosure of the amount of debt the conduit financing
provider has issued during the period covered by the audit and the
amount of debt still outstanding at the end of the time period
covered by the audit.
(b) An audit of a conduit financing provider's accounts and
records shall be made publicly available pursuant to the California
Public Records Act (Article 1 (commencing with Section 6250) of
Chapter 3.5 of Division 7).
(c) Notwithstanding any other reporting periods permitted pursuant
to subdivision (f) of Section 6505, Section 26909, or any other
provision of law, a conduit financing provider shall annually conduct
an audit of its accounts and records and report the results of that
audit to the Controller. The minimum requirements of the annual audit
and report shall be prescribed by the Controller and conform to
generally accepted auditing standards.