Local government: investments and financial reports.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Chaptered
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill changes how local government agencies can invest their money. It extends the time period for investing in ‘prime’ quality commercial paper to 397 days, and it gradually removes an exception that allowed them to invest in securities with zero-interest accrual. Additionally, the bill adjusts the timeframe for officers to file their financial reports with the Controller, increasing it from 20 days to 10 months.
Key provisions
- Extends the maximum maturity period for commercial paper investments to 397 days.
- Repeals the exception allowing investments in zero-interest accrual securities (effective January 1, 2031).
- Gradually increases the timeframe for officers to file financial reports with the Controller from 20 days to 10 months.
- Updates the investment limits for local agencies based on their investment asset management levels.
- Clarifies the definition of ‘counterparty’ in the context of securities transactions.
- Specifies requirements for investments in repurchase agreements and securities lending agreements.
- Addresses investment options for joint powers authorities.
- Modifies the penalty for failing to file financial reports, adjusting it based on the agency’s total revenue.
Who is affected
- Local government agencies (cities, districts, etc.)
- Local government officials (officers responsible for financial reporting)
Bill text
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Sponsors
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1 on record
Primary sponsor
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