The Legislature hereby finds and declares that a local agency‘s obligation of contract, as that term is used and interpreted in § 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 § 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.

(Added by Stats. 1988, Ch. 346, Sec. 1.)

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Terms Used In California Government Code 53996

  • Contract: A legal written agreement that becomes binding when signed.
  • 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)). See California Government Code 53995
  • Legislative body: means the elected or appointed governing body or authority of a local agency. See California Government Code 53995
  • 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. See California Government Code 53995
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Treasurer: means the treasurer of the local agency. See California Government Code 53995
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