California Gov. Jerry Brown signed a bill Wednesday that will allow the state to sell bonds in $25 denominations.
The new legislation, sponsored by Treasurer Bill Lockyer, changes state law to allow minimum general obligation bond denominations to drop to $25 from $1,000, potentially increasing California’s reach into the retail market.
The treasurer’s office has said the legislation would allows the state to issue such bonds as securities that can be listed on the New York Stock Exchange.
Only a handful of states have such preferred securities, including New Jersey, which in the late 1990s sold similar taxable debt.
Lockyer has been working on improving the state’s retail bond sales. He launched an ongoing marketing campaign targeting retail investors, including newspaper and radio ads, and a website, www.BuyCaliforniaBonds.com.