CaliforniaLocal government: investments and financial reports.
What it does
(1) Existing law regulates the investment of public funds by local agencies, as defined. Existing law authorizes the legislative body of a local agency, as specified, that has money in a sinking fund or in its treasury not required for the immediate needs of the local agency to invest the money as it deems wise or expedient in certain securities and financial instruments, subject to various requirements. These permissible investments include, among others, commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization that is issued by entities meeting certain criteria, if the eligible commercial paper has a maximum maturity of 270 days or less.
More detail
This bill would revise the maximum maturity periods for the investments in prime quality commercial paper to 397 days.
Existing law, until January 1, 2026, authorizes local agencies, as specified, that have less than $100,000,000 of investment assets under management to invest no more than 25%, and those local agencies that have $100,000,000 or more of investment assets under management to invest no more than 40%, of their moneys in eligible commercial paper, as specified. Existing law, beginning January 1, 2026, instead authorizes those local agencies regardless of the amount of investment assets they have under management to invest no more than 25% of their moneys in eligible commercial paper, as specified.
This bill would instead repeal the former provisions on January 1, 2031, and would postpone the operative date for the latter provisions until January 1, 2031.
Existing law prohibits a local agency from investing specified public funds in any security that could result in zero-interest accrual if held to maturity, as specified. Existing law, until January 1, 2026, authorizes a local agency as an exception to that provision to invest in securities issued by, or backed by, the United States government that could result in zero-interest accrual if held to maturity, as specified.
This bill would instead repeal the above-described exception on January 1, 2031.
(2) Existing law requires the Controller to annually compile, publish, and make publicly available on the Controller's website reports of the information concerning financial transactions and annual compensation of each county, city, and school district within the state, as specified. If an officer of a local agency fails or refuses to make and file their financial report within 20 days after receipt of a written notice of the failure from the Controller, existing law requires that officer or local agency to forfeit to the state a specified amount depending on the amount of total revenue of that local agency.
This bill would instead require that forfeiture if the officer fails or refuses to make and file their financial report within 10 months after the end of the local agency's fiscal year, or within the time prescribed by the Controller, whichever is later.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Oct 3Chaptered by Secretary of State. Chapter 323, Statutes of 2025.Latest
- Oct 3Approved by the Governor Gavin Newsom.Became Law
- Sep 22Enrolled and presented to the Governor at 2 p.m.To Governor
- Sep 11Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2871.) Ordered to engrossing and enrolling.Major
- Vote recorded Unfinished Business SB595 Choi Concurrence. Result: pass.Upper
- Sep 8In Senate. Concurrence in Assembly amendments pending.
- Vote recorded SB 595 Choi Senate Third Reading By Hoover. Result: pass.Lower
- Sep 8Read third time. Passed. (Ayes 78. Noes 0. Page 2981.) Ordered to the Senate.Passed Assembly
- Sep 3Ordered to third reading.Minor
- Sep 3Read third time and amended.Major
- Aug 18Ordered to third reading.Minor
- Aug 18From consent calendar on motion of Assembly Member Aguiar-Curry.
- Jul 17Read second time. Ordered to consent calendar.Minor
- Jul 16From committee: Do pass. Ordered to consent calendar. (Ayes 13. Noes 0.) (July 16).Minor
- Vote recorded Do pass. To Consent Calendar. Result: pass.Lower
- Jul 3From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 10. Noes 0.) (July 2). Re-referred to Com. on APPR.Minor
- Jul 2
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar. Result: pass.Lower
- Jun 16Referred to Com. on L. GOV.Minor
- Jun 5In Assembly. Read first time. Held at Desk.Minor
- Jun 4Read third time. Passed. (Ayes 39. Noes 0. Page 1522.) Ordered to the Assembly.Passed Senate
- Vote recorded Special Consent. Result: pass.Upper
- Jun 2Ordered to special consent calendar.
- May 27Read second time. Ordered to third reading.Minor
- May 23Read second time and amended. Ordered to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Upper
- May 23From committee: Do pass as amended. (Ayes 6. Noes 0. Page 1205.) (May 23).Major
- May 16Set for hearing May 23.
- May 12May 12 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- May 2Set for hearing May 12.
- Apr 30From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 7. Noes 0. Page 968.) (April 30). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar. Result: pass.Upper
- Apr 9From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. GOV.Major
- Mar 24Set for hearing April 30.
- Mar 5Referred to Com. on L. GOV.Minor
- Feb 21From printer. May be acted upon on or after March 23.
- Feb 20Introduced. Read first time. To Com. on RLS. for assignment. To print.Introduced