Bill Text: CA SB79 | 2011-2012 | Regular Session | Chaptered
Bill Title: State funds: State Agency Investment Fund.
Spectrum: Unknown
Status: (Passed) 2011-08-01 - Chaptered by Secretary of State. Chapter 142, Statutes of 2011. [SB79 Detail]
Download: California-2011-SB79-Chaptered.html
BILL NUMBER: SB 79 CHAPTERED
BILL TEXT
CHAPTER 142
FILED WITH SECRETARY OF STATE AUGUST 1, 2011
APPROVED BY GOVERNOR AUGUST 1, 2011
PASSED THE SENATE JULY 14, 2011
PASSED THE ASSEMBLY JULY 11, 2011
AMENDED IN ASSEMBLY JULY 11, 2011
AMENDED IN ASSEMBLY MARCH 23, 2011
AMENDED IN ASSEMBLY MARCH 17, 2011
AMENDED IN ASSEMBLY MARCH 14, 2011
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 10, 2011
An act to add Section 16330 to the Government Code, relating to
state finance, and making an appropriation therefor, to take effect
immediately, bill related to the budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 79, Committee on Budget and Fiscal Review. State funds: State
Agency Investment Fund.
(1) Existing law provides for the investment of certain state
moneys by the Treasurer through the Pooled Money Investment Account,
according to specified criteria.
This bill would create the State Agency Investment Fund in the
State Treasury, for the receipt of deposits by state agencies of up
to $500,000,000 each, from moneys not required by law to be deposited
in the Pooled Money Investment Account, for a total of
$10,000,000,000 in the fund at any one time. It would authorize the
Director of Finance, in consultation with the Treasurer, to set
certain terms and conditions for the deposits, and require the
Treasurer to invest the moneys held in the fund through the Pooled
Money Investment Account, according to specified criteria. It would
continuously appropriate moneys in the fund to the Controller for the
payment of interest expenditures and the return of deposits to
depositors.
(2) The Administrative Procedure Act governs the procedure for the
adoption, amendment, or repeal of regulations by state agencies and
for the review of those regulatory actions by the Office of
Administrative Law, subject to specified criteria.
This bill would exempt activities conducted by the Director of
Finance, in consultation with the Treasurer, in implementing and
administering the investment program provided for in the bill from
the provisions of the act.
(3) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 16330 is added to the Government Code, to read:
16330. (a) (1) The State Agency Investment Fund is hereby created
within the State Treasury, for the receipt of deposits from state
agencies with moneys not currently required by law to be deposited in
the Pooled Money Investment Account.
(2) For purposes of this section, a "state agency" includes any
state office, officer, department, division, bureau, board,
commission, organization, or agency, including, but not limited to,
the University of California, the California State University, the
California Community Colleges, and the Judicial Council.
(b) Each agency that deposits moneys in the fund shall deposit no
less than a total of five hundred million dollars ($500,000,000). The
total amount of moneys that may be deposited in the fund from all
eligible sources shall not exceed, at any point in time, a total of
ten billion dollars ($10,000,000,000), or a lesser amount as
determined by the Director of Finance, in consultation with the
Treasurer.
(c) The terms and conditions of deposits made into the fund shall
be set by the Director of Finance, in consultation with the
Treasurer. Those terms shall include, but not be limited to, the size
of deposit from a particular state agency, the length of time those
moneys shall be held in deposit in the fund, the availability of
funds for withdrawal by the state agency depositing the funds, and
the annual rate of interest paid on deposits, as described in
subdivision (e).
(d) Moneys held in the fund shall be invested by the Treasurer in
investments authorized by Sections 16430 and 16480 through the Pooled
Money Investment Account, and notwithstanding any other law, shall
be deemed borrowable by the General Fund for cashflow purposes
pursuant to Sections 16310 and 16381. Repayment of any of those
borrowings shall be considered a priority payment, equivalent to any
other loan repayment made from the General Fund to another state
fund.
(e) Notwithstanding any other law, the rate of interest to be paid
to the depositors shall be the base apportionment rate based on
their pro rata share of the earnings of the Pooled Money Investment
Account on a quarterly basis at the end of each quarter plus an
enhanced amount. The pro rata share shall be determined by a dollar
day participation. The base apportionment rate applied to the dollar
day participation in the fund shall be the quarter-to-date average
yield of the Pooled Money Investment Account for the current quarter.
The enhancement amount paid to depositors in the fund shall be
determined by the Director of Finance, in consultation with the
Treasurer, and shall be added to the base rate earned by the Pooled
Money Investment Account at the time the apportionment is made. The
total interest cost described in this subdivision shall not exceed
that provided for in paragraph (1) of subdivision (d) of Section
16731.
(f) Notwithstanding Section 13340, moneys in the fund are hereby
continuously appropriated to the Controller for payment of interest
expenditures to depositors calculated in accordance with subdivision
(e), and return of deposits to depositors according to terms and
conditions set by the Director of Finance, in consultation with the
Treasurer.
(g) The Department of Finance shall determine the budget items to
be used for the recording and reporting of interest expenditures
pursuant to this section.
(h) Deposits in the fund shall be tracked separately for each
participant in the state's accounting system, and shall be deemed to
be assets of each participant. These assets shall be reflected as
such on the participants' financial statements.
(i) Actions by the Director of Finance, in consultation with the
Treasurer, in implementing and administering the investment program
provided for in this section shall be exempt from the provisions of
the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3).
SEC. 2. This act is a bill providing for appropriations related to
the Budget Bill within the meaning of subdivision (e) of Section 12
of Article IV of the California Constitution, has been identified as
related to the budget in the Budget Bill, and shall take effect
immediately.
