Bill Text: CA SB797 | 2015-2016 | Regular Session | Chaptered
Bill Title: Government finance.
Spectrum: Slight Partisan Bill (Democrat 8-3)
Status: (Passed) 2015-09-02 - Chaptered by Secretary of State. Chapter 249, Statutes of 2015. [SB797 Detail]
Download: California-2015-SB797-Chaptered.html
BILL NUMBER: SB 797 CHAPTERED
BILL TEXT
CHAPTER 249
FILED WITH SECRETARY OF STATE SEPTEMBER 2, 2015
APPROVED BY GOVERNOR SEPTEMBER 2, 2015
PASSED THE SENATE MAY 18, 2015
PASSED THE ASSEMBLY AUGUST 20, 2015
AMENDED IN SENATE APRIL 15, 2015
INTRODUCED BY Committee on Governmental Organization (Senators Hall
(Chair), Berryhill, Block, Gaines, Galgiani, Hernandez, Hill, Hueso,
Lara, McGuire, and Vidak)
MARCH 12, 2015
An act to amend Section 16430 of the Government Code, to repeal
Title 4.5 (commencing with Section 4400), and Title 4.6 (commencing
with Section 4450) of Part 3 of, to repeal Chapter 12 (commencing
with Section 7100) and Chapter 13 (commencing with Section 7200) of
Title 7 of Part 3 of, the Penal Code, to repeal Chapter 1.6
(commencing with Section 5096.1) and Chapter 1.67 (commencing with
Section 5096.71) of Division 5 of the Public Resources Code, and to
repeal Article 5.5 (commencing with Section 11922) of Chapter 10 of
Part 3 of Division 6 of, and to repeal Chapter 13 (commencing with
Section 13970) and Chapter 14 (commencing with Section 13985) of
Division 7 of, the Water Code, relating to government finance.
LEGISLATIVE COUNSEL'S DIGEST
SB 797, Committee on Governmental Organization. Government
finance.
Existing law specifies the types of securities that are eligible
for the investment of surplus state funds, including commercial paper
of "prime" quality as defined by a nationally recognized
organization that rates these securities, if the commercial paper is
issued by a corporation, trust, or limited liability company that is
approved by the Pooled Money Investment Board as meeting specified
conditions. Existing law prohibits a purchase of commercial paper
from exceeding 180 days maturity.
This bill would additionally include commercial paper issued by a
federally or state-chartered bank or a state-licensed branch of a
foreign bank that is approved by the Pooled Money Investment Board as
meeting the specified conditions. This bill would prohibit a
purchase of commercial paper from exceeding 270 days maturity.
The County Jail Capital Expenditure Bond Act of 1981 authorized
the issuance and sale of $280,000,000 in state general obligation
bonds to finance the construction, reconstruction, remodeling, and
replacement of county jails and for deferred maintenance. The act
establishes the County Jail Capital Expenditure Finance Committee for
the purpose of authorizing the issuance and sale of the bonds
authorized by the act.
The County Jail Capital Expenditure Bond Act of 1984 authorized
the issuance and sale of $250,000,000 in state general obligation
bonds to finance the construction, reconstruction, remodeling, and
replacement of county jails and for deferred maintenance. The act
establishes the County Jail Capital Expenditure Finance Committee for
the purpose of authorizing the issuance and sale of the bonds
authorized by the act.
The New Prison Construction Bond Act of 1981 authorized the
issuance and sale of $495,000,000 in state general obligation bonds
to finance the construction, renovation, and remodeling of state
correctional facilities and for deferred maintenance. The act
establishes the New Prison Construction Committee for the purpose of
authorizing the issuance and sale of the bonds authorized by the act.
The New Prison Construction Bond Act of 1984 authorized the
issuance and sale of $300,000,000 in state general obligation bonds
to finance the construction, renovation, and remodeling of state
correctional facilities and for deferred maintenance. The act
establishes the 1984 Prison Construction Committee for the purpose of
authorizing the issuance and sale of the bonds authorized by the
act.
The Cameron-Unruh Beach, Park, Recreational, and Historical
Facilities Bond Act of 1964 authorized the issuance and sale of
$150,000,000 in state general obligation bonds to finance the
acquisition and development of lands for recreational purposes. The
act establishes the State Park and Recreation Finance Committee for
the purpose of authorizing the issuance and sale of the bonds
authorized by the act.
The State Beach, Park, Recreational, and Historical Facilities
Bond Act of 1974, also known as the Z'berg-Collier Park Bond Act,
authorized the issuance and sale of $250,000,000 in state general
obligation bonds to finance the acquisition and development of lands
for recreational purposes. The act establishes the State Park and
Recreation Finance Committee for the purpose of authorizing the
issuance and sale of the bonds authorized by the act.
Existing law, known as the Recreation and Fish and Wildlife
Enhancement Bond Act of 1970, authorized the issuance and sale of
$60,000,000 in state general obligation bonds to finance the design
and construction of recreation facilities, fish and wildlife
enhancement features, and fishing access sites. Existing law
establishes the Recreation and Fish and Wildlife Enhancement Finance
Committee for the purpose of authorizing the issuance and sale of the
bonds authorized by these provisions.
The Clean Water Bond Law of 1970 authorized the issuance and sale
of $250,000,000 in state general obligation bonds to finance grants
to municipalities for water reclamation projects. The Clean Water
Bond Law of 1970 establishes the Clean Water Finance Committee for
the purpose of authorizing the issuance and sale of the bonds
authorized by these provisions.
The Clean Water Bond Law of 1974 authorized the issuance and sale
of $250,000,000 in state general obligation bonds to finance grants
to municipalities for water reclamation projects. The Clean Water
Bond Law of 1974 establishes the Clean Water Finance Committee for
the purpose of authorizing the issuance and sale of the bonds
authorized by these provisions.
This bill would repeal all of the above-described laws.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 16430 of the Government Code is amended to
read:
16430. Eligible securities for the investment of surplus moneys
shall be any of the following:
(a) Bonds or interest-bearing notes or obligations of the United
States, or those for which the faith and credit of the United States
are pledged for the payment of principal and interest.
(b) Bonds or interest-bearing notes on obligations that are
guaranteed as to principal and interest by a federal agency of the
United States.
(c) Bonds, notes, and warrants of this state, or those for which
the faith and credit of this state are pledged for the payment of
principal and interest.
(d) Bonds or warrants, including, but not limited to, revenue
warrants, of any county, city, metropolitan water district,
California water district, California water storage district,
irrigation district in the state, municipal utility district, or
school district of this state.
(e) Any of the following:
(1) Bonds, consolidated bonds, collateral trust debentures,
consolidated debentures, or other obligations issued by federal land
banks or federal intermediate credit banks established under the
Federal Farm Loan Act, as amended (12 U.S.C. Sec. 2001 et seq.).
(2) 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 (12 U.S.C. Sec. 2001 et
seq.).
(3) Bonds or debentures of the Federal Home Loan Bank Board
established under the Federal Home Loan Bank Act (12 U.S.C. Sec. 1421
et seq.).
(4) Stocks, bonds, debentures, and other obligations of the
Federal National Mortgage Association established under the National
Housing Act, as amended (12 U.S.C. Sec. 1701 et seq.).
(5) Bonds of any federal home loan bank established under that
act.
(6) Obligations of the Federal Home Loan Mortgage Corporation.
(7) Bonds, notes, and other obligations issued by the Tennessee
Valley Authority under the Tennessee Valley Authority Act, as amended
(16 U.S.C. Sec. 831 et seq.).
(8) Other obligations guaranteed by the Commodity Credit
Corporation for the export of California agricultural products under
the Commodity Credit Corporation Charter Act, as amended (15 U.S.C.
Sec. 714 et seq.).
(f) (1) Commercial paper of "prime" quality as defined by a
nationally recognized organization that rates these securities, if
the commercial paper is issued by a federally or state-chartered bank
or a state-licensed branch of a foreign bank, corporation, trust, or
limited liability company that is approved by the Pooled Money
Investment Board as meeting the conditions specified in either
subparagraph (A) or subparagraph (B):
(A) Both of the following conditions:
(i) Organized and operating within the United States.
(ii) Having total assets in excess of five hundred million dollars
($500,000,000).
(B) Both of the following conditions:
(i) Organized within the United States as a federally or
state-chartered bank or a state-licensed branch of a foreign bank,
special purpose corporation, trust, or limited liability company.
(ii) Having programwide credit enhancements including, but not
limited to, overcollateralization, letters of credit, or surety bond.
(2) A purchase of eligible commercial paper may not do any of the
following:
(A) Exceed 270 days maturity.
(B) Represent more than 10 percent of the outstanding paper of an
issuing federally or state-chartered bank or a state-licensed branch
of a foreign bank, corporation, trust, or limited liability company.
(C) Exceed 30 percent of the resources of an investment program.
(3) At the request of the Pooled Money Investment Board, an
investment made pursuant to this subdivision shall be secured by the
issuer by depositing with the Treasurer securities authorized by
Section 53651 of a market value at least 10 percent in excess of the
amount of the state's investment.
(g) Bills of exchange or time drafts drawn on and accepted by a
commercial bank, otherwise known as bankers acceptances, that are
eligible for purchase by the Federal Reserve System.
(h) Negotiable certificates of deposits issued by a federally or
state-chartered bank or savings and loan association, a
state-licensed branch of a foreign bank, or a federally or
state-chartered credit union. For the purposes of this section,
negotiable certificates of deposits are not subject to Chapter 4
(commencing with Section 16500) and Chapter 4.5 (commencing with
Section 16600).
(i) The portion of bank loans and obligations guaranteed by the
United States Small Business Administration or the United States
Farmers Home Administration.
(j) Bank loans and obligations guaranteed by the Export-Import
Bank of the United States.
(k) Student loan notes insured under the Guaranteed Student Loan
Program established pursuant to the Higher Education Act of 1965, as
amended (20 U.S.C. Sec. 1001 et seq.) and eligible for resale to the
Student Loan Marketing Association established pursuant to Section
133 of the Education Amendments of 1972, as amended (20 U.S.C. Sec.
1087-2).
(l) Obligations issued, assumed, or guaranteed by the
International Bank for Reconstruction and Development, the
Inter-American Development Bank, the Asian Development Bank, the
African Development Bank, the International Finance Corporation, or
the Government Development Bank of Puerto Rico.
(m) Bonds, debentures, and notes issued by corporations organized
and operating within the United States. Securities eligible for
investment under this subdivision shall be within the top three
ratings of a nationally recognized rating service.
(n) Negotiable Order of Withdrawal Accounts (NOW Accounts),
invested in accordance with Chapter 4 (commencing with Section
16500).
SEC. 2. Title 4.5 (commencing with Section 4400) of Part 3 of the
Penal Code is repealed.
SEC. 3. Title 4.6 (commencing with Section 4450) of Part 3 of the
Penal Code is repealed.
SEC. 4. Chapter 12 (commencing with Section 7100) of Title 7 of
Part 3 of the Penal Code is repealed.
SEC. 5. Chapter 13 (commencing with Section 7200) of Title 7 of
Part 3 of the Penal Code is repealed.
SEC. 6. Chapter 1.6 (commencing with Section 5096.1) of Division 5
of the Public Resources Code is repealed.
SEC. 7. Chapter 1.67 (commencing with Section 5096.71) of Division
5 of the Public Resources Code is repealed.
SEC. 8. Article 5.5 (commencing with Section 11922) of Chapter 10
of Part 3 of Division 6 of the Water Code is repealed.
SEC. 9. Chapter 13 (commencing with Section 13970) of Division 7
of the Water Code is repealed.
SEC. 10. Chapter 14 (commencing with Section 13985) of Division 7
of the Water Code is repealed.
