Local government: investments and deposits.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Passed
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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 revises California law regarding how local government agencies can invest their public funds. It expands the types of investments allowed, including commercial paper from certain banks and obligations issued by international development banks. The bill also removes a sunset date for investing in U.S.-issued securities during periods of negative interest rates and adjusts investment limits for certain local agencies. Finally, it makes some administrative changes to streamline investment processes.
Key provisions
- Authorizes investment in commercial paper issued by federally or state-chartered banks and foreign bank branches.
- Allows investment in senior unsecured obligations issued or guaranteed by the Inter-American Investment Corporation.
- Extends the exception for investing in U.S.-issued securities during periods of negative market interest rates indefinitely.
- Modifies investment limits for certain local agencies (counties, cities, and agencies pooling investments) regarding commercial paper.
- Removes the January 1, 2031, reduction in investment limits for agencies with $100 million or more in investment assets.
- Authorizes eligible banks headquartered outside of California to submit letters of credit for deposits.
- Makes nonsubstantive changes to existing provisions, including updating cross-references.
- Clarifies the role of the treasurer in managing local agency investments.
Who is affected
Bill text
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Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
Committee on Local Government
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