Local government finance: COVID-19 Credit Facility.

Existing law prescribes the duties of the Treasurer, which include acting as an elected representative of the state for the purposes of approving the issuance of bonds, notes, or other evidences of indebtedness, issued by or on behalf of the state, to the extent this approval is required by federal tax law. The Municipal Liquidity Facility, created by the Federal Reserve System, is authorized to purchase short-term debt instruments from states, counties with populations of at least 500,000 residents, and cities with populations of at least 250,000 residents, among others. For these purposes, state debt issuers are authorized to use proceeds to support additional counties and cities. Existing law creates the California Debt and Investment Advisory Commission and prescribes its duties, including providing assistance to state or local governmental units, upon request, in the planning, preparation, marketing, and sale of debt issues. This bill would require the Treasurer to establish the COVID-19 Credit Facility, to support cashflow borrowing by local governments, as specified, to better manage cashflow pressures created by the COVID-19 public health emergency. The bill would require the facility to assist local governments, irrespective of population size, with the purchase of newly-issued tax anticipation notes, tax and revenue anticipation notes, bond anticipation notes, and other short-term notes through the California Debt and Investment Advisory Commission. The bill would also require the facility to establish methods by which cities with populations of less than 250,000 and counties with populations of less than 500,000 may access the Municipal Liquidity Facility established by the Federal Reserve System, as specified. The bill would require the Treasurer to adopt and publish guidelines for these purposes. This bill would declare that it is to take effect immediately as an urgency statute.