CA SB866

Authorizes joint powers authorities to purchase local mandate claim receivables from cities, counties, and special districts, allowing local agencies to sell their state reimbursement claims to these authorities and receive immediate payment through bond proceeds.

Requires the Controller to prepare a list of approved but unpaid reimbursement claims as of December 31, 2010, and establish a payment schedule distributing the total amount over installments from December 1, 2011, through June 1, 2021, with semi-annual payments.

Mandates the state pay 2 percent annual interest on local mandate claim receivables sold to authorities and Pooled Money Investment Account rates on unsold claims, with all payments continuously appropriated from the General Fund and taking priority over most other state obligations.

Requires authorities purchasing local mandate claim receivables to consist of at least 250 local agencies and limits bond issuance backed by these receivables; allows authorities to charge fees to entities from which receivables are purchased, payable from the receivables or bond proceeds.

Specifies that the Controller's audit authority is not limited by receivable sales, but payments on sold claims shall not be subject to audit findings, adjustments, or offsets, and takes effect immediately as an urgency statute.