Bill Text: CA AB3253 | 2017-2018 | Regular Session | Amended
Bill Title: Local government: financial affairs.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2018-04-16 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB3253 Detail]
Download: California-2017-AB3253-Amended.html
|
Amended
IN
Assembly
April 10, 2018 |
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Amended
IN
Assembly
March 22, 2018 |
| Assembly Bill | No. 3253 |
| Introduced by Committee on Banking and Finance (Assembly Members Limón (Chair), Chen (Vice Chair), Acosta, Burke, Calderon, Cervantes, Choi, Gonzalez Fletcher, Grayson, Mark Stone, and Weber) |
March 12, 2018 |
LEGISLATIVE COUNSEL'S DIGEST
Existing law makes the treasurer of a local agency responsible for the safekeeping of money and authorizes him or her to enter into a contract with a depository relating to any deposit that in his or her judgment is to the public advantage. Existing law defines eligible securities for these purpose as, among other things, letters of credit issued by the Federal Home Loan Bank of San Francisco, with the consent of the treasurer, as specified.
This bill would amend these provision to refer instead to the Federal Home Loan Bank.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 53601.8 of the Government Code, as amended by Section 1 of Chapter 181 of the Statutes of 2015, is amended to read:53601.8.
Notwithstanding Section 53601 or any other provision of this code, a local agency that has the authority under law to invest funds, at its discretion, may invest a portion of its surplus funds in deposits at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of deposits. The following conditions shall apply:SEC. 2.
Section 53601.8 of the Government Code, as amended by Section 2 of Chapter 181 of the Statutes of 2015, is amended to read:53601.8.
Notwithstanding Section 53601 or any other provision of this code, a local agency that has the authority under law to invest funds may, at its discretion, invest a portion of its surplus funds in certificates of deposit at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of certificates of deposit, provided that the purchases of certificates of deposit pursuant to this section, Section 53635.8, and subdivision (i) of Section 53601 do not, in total, exceed 50 percent of the agency’s funds that may be invested for this purpose. The following conditions shall apply:SEC. 3.
Section 53635.8 of the Government Code, as amended by Section 3 of Chapter 181 of the Statutes of 2015, is amended to read:53635.8.
Notwithstanding Section 53601 or any other provision of this code, a local agency that has the authority under law to invest funds, at its discretion, may invest a portion of its surplus funds in deposits at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of deposits. The following conditions shall apply:SEC. 4.
Section 53635.8 of the Government Code, as amended by Section 4 of Chapter 181 of the Statutes of 2015, is amended to read:53635.8.
Notwithstanding Section 53601 or any other provision of this code, a local agency that has the authority under law to invest funds, at its discretion, may invest a portion of its surplus funds in certificates of deposit at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of certificates of deposit, provided that the purchases of certificates of deposit pursuant to this section, Section 53601.8, and subdivision (i) of Section 53601 do not, in total, exceed 50 percent of the agency’s funds that may be invested for this purpose. The following conditions shall apply:Eligible securities are any of the following:
(a)United States Treasury notes, bonds, bills or certificates of indebtedness, or obligations for which the faith and credit of the United States are pledged for the payment of principal and interest, including the guaranteed portions of small business administration loans, so long as the loans are obligations for which the faith and credit of the United States are pledged for the payment of principal and interest.
(b)Notes or bonds or any obligations of a local public agency (as defined in the United States Housing Act of 1949) or any obligations of a public
housing agency (as defined in the United States Housing Act of 1937) for which the faith and credit of the United States are pledged for the payment of principal and interest.
(c)Bonds of this state or of any local agency or district of the State of California having the power, without limit as to rate or amount, to levy taxes or assessments to pay the principal and interest of the bonds upon all property within its boundaries subject to taxation or assessment by the local agency or district, and in addition, limited obligation bonds pursuant to Article 4 (commencing with Section 50665.1) of Chapter 3 of Part 1 of Division 1, senior obligation bonds pursuant to Article 5 (commencing with Section 53387) of Chapter 2.7, and revenue bonds and other obligations payable solely out of the revenues from a revenue-producing property owned,
controlled or operated by the state, local agency or district or by a department, board, agency or authority thereof.
(d)Bonds of any public housing agency (as defined in the United States Housing Act of 1937, as amended) as are secured by a pledge of annual contributions under an annual contribution contract between the public housing agency and the Public Housing Administration if such contract shall contain the covenant by the Public Housing Administration which is authorized by subsection (b) of Section 22 of the United States Housing Act of 1937, as amended, and if the maximum sum and the maximum period specified in the contract pursuant to that subsection 22(b) shall not be less than the annual amount and the period for payment which are requisite to provide for the payment when due of all installments of principal and interest on the
obligations.
(e)Registered warrants of this state.
(f)Bonds, consolidated bonds, collateral trust debentures, consolidated debentures, or other obligations issued by the United States Postal Service, federal land banks or federal intermediate credit banks established under the Federal Farm Loan Act, as amended, debentures and consolidated debentures issued by the Central Bank for Cooperatives and banks for cooperatives established under the Farm Credit Act of 1933, as amended, consolidated obligations of the federal home loan banks established under the Federal Home Loan Bank Act, bonds, debentures and other obligations of the Federal National Mortgage Association or of the Government National Mortgage Association established under the National Housing Act, as amended, bonds
of any federal home loan bank established under that act, bonds, debentures and other obligations of the Federal Home Loan Mortgage Corporation established under the Emergency Home Finance Act of 1970, and obligations of the Tennessee Valley Authority.
(g)Notes, tax anticipation warrants or other evidence of indebtedness issued pursuant to Article 7 (commencing with Section 53820), Article 7.5 (commencing with Section 53840) or Article 7.6 (commencing with Section 53850) of this Chapter 4.
(h)State of California notes.
(i)Bonds, notes, certificates of indebtedness, warrants or other obligations issued by: (1) any state of the United States (except this state), or the Commonwealth of Puerto Rico, or any local agency
thereof having the power to levy taxes, without limit as to rate or amount, to pay the principal and interest of such obligations, or (2) any state of the United States (except this state), or the Commonwealth of Puerto Rico, or a department, board, agency or authority thereof except bonds which provide for or are issued pursuant to a law which may contemplate a subsequent legislative appropriation as an assurance of the continued operation and solvency of the department, board, agency or authority but which does not constitute a valid and binding obligation for which the full faith and credit of such state or the Commonwealth of Puerto Rico are pledged, which are payable solely out of the revenues from a revenue-producing source owned, controlled or operated thereby; provided the obligations issued by an entity described in (1), above, are rated in one of the three highest grades, and such obligations
issued by an entity described in (2), above, are rated in one of the two highest grades by a nationally recognized investment service organization that has been engaged regularly in rating state and municipal issues for a period of not less than five years.
(j)Obligations issued, assumed or guaranteed by the International Bank for Reconstruction and Development, Inter-American Development Bank, the Government Development Bank of Puerto Rico, the Asian Development Bank, the International Finance Corporation, or the African Development Bank.
(k)Participation certificates of the Export-Import Bank of the United States.
(l)Bonds and notes of the California Housing Finance Agency issued pursuant to
Chapter 7 (commencing with Section 51350) of Part 3 of Division 31 of the Health and Safety Code.
(m)Promissory notes secured by first mortgages and first trust deeds which comply with Section 53651.2.
(n)Any bonds, notes, warrants, or other evidences of indebtedness of a nonprofit corporation issued to finance the construction of a school building or school buildings pursuant to a lease or agreement with a school district entered into in compliance with the provisions of Section 81345 of the Education Code, and also any bonds, notes, warrants or other evidences of indebtedness issued to refinance those bonds, notes, or warrants.
(o)Any municipal securities, as defined by Section 3(a)(29) of the Securities
Exchange Act of June 6, 1934, (15 U.S.C. Sec. 78, as amended), which are issued by this state or any local agency thereof.
(p)With the consent of the treasurer, letters of credit issued by the Federal Home Loan Bank that comply with Section 53651.6.
