Public finance law includes state and federal laws and regulations governing the financing of public organizations and projects. For example, public finance laws and regulations govern the sale and purchase of bonds to build or improve schools, parks, roads, airports, cultural facilities, recreational facilities, entertainment venues (sports arenas), and other public works projects.

Bonds are debts issued by governments (the debtor), for example, to purchasers of the bonds (the creditors), with a promise to pay the bondholder interest (a coupon) and repay the principal amount upon a certain date (maturity date)—similar to an IOU or loan agreement. Bonds are securities that can often be traded (bought and sold) to and from others on the secondary market.

In California, public finance law is governed by a combination of state statutes and federal regulations that oversee the issuance and management of public debt. This includes the sale and purchase of bonds for financing various public projects such as schools, parks, roads, and cultural facilities. The state government, municipalities, and other public entities can issue bonds as a form of borrowing money from investors. These bonds are essentially promises to repay the borrowed amount with interest by a specified maturity date. California has specific laws that outline the procedures for issuing bonds, including voter approval requirements for certain types of bonds, disclosure obligations, and the use of funds. Additionally, the California Debt and Investment Advisory Commission (CDIAC) provides oversight, education, and support for public debt issuance. On the federal level, the Securities and Exchange Commission (SEC) regulates the trading of bonds in the secondary market, ensuring transparency and fairness, while the Internal Revenue Service (IRS) sets the rules for the tax-exempt status of certain municipal bonds.