BILL NUMBER: SB 564 CHAPTERED
BILL TEXT
CHAPTER 783
FILED WITH SECRETARY OF STATE OCTOBER 12, 1995
APPROVED BY GOVERNOR OCTOBER 12, 1995
PASSED THE SENATE SEPTEMBER 15, 1995
PASSED THE ASSEMBLY SEPTEMBER 15, 1995
AMENDED IN ASSEMBLY SEPTEMBER 13, 1995
AMENDED IN ASSEMBLY JULY 18, 1995
AMENDED IN SENATE APRIL 27, 1995
AMENDED IN SENATE APRIL 19, 1995
AMENDED IN SENATE APRIL 6, 1995
AMENDED IN SENATE MARCH 27, 1995
INTRODUCED BY Senators Johnston and Lewis
FEBRUARY 21, 1995
An act to add Section 16481.2 to, and to repeal and add Section
53646 of, the Government Code, relating to government agency
investments.
LEGISLATIVE COUNSEL'S DIGEST
SB 564, Johnston. Local agency treasurers.
Existing law requires the Treasurer to make a monthly report on
investments in the Pooled Money Investment Account.
This bill would require the Treasurer to annually prepare and
submit to the Pooled Money Investment Board a written statement of
investment policy and a quarterly report on investments in the Pooled
Money Investment Account, as specified.
Existing law provides that the treasurer of a local agency may
render to the depositary and to the auditor, controller, secretary,
or corresponding officer of the local agency a statement showing the
amount of accrued interest for each depositary for the preceding
quarter if so required by the legislative body of the local agency.
This bill would instead require the treasurer or chief fiscal
officer to render to the legislative body of the local agency and any
oversight committee a statement of investment policy. The report
would be required to be made annually and be considered, with any
changes, by the legislative body of the local agency at a public
meeting.
This bill would also require the treasurer or chief fiscal
officer, except in specified circumstances, to render a quarterly
report to the chief executive officer, the internal auditor, and the
legislative body of the local agency containing detailed information
on all securities, investments, and moneys of the local agency, a
statement of compliance of the portfolio with the statement of
investment policy, and a statement of the local agency's ability to
meet its pool's expenditure requirements for the next 6 months. By
requiring these reports to be made this bill would impose a
state-mandated local program. The bill would require the treasurer
or chief fiscal officer to report whatever additional information or
data may be required by the legislative body of the local agency.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 16481.2 is added to the Government Code, to
read:
16481.2. (a) The Treasurer shall annually prepare and submit to
the Pooled Money Investment Board a written statement of investment
policy. The Treasurer shall promptly notify the board of any
material change in the statement of investment policy. The board
shall consider the statement of investment policy and any changes
therein at a public meeting.
(b) In addition to the report required by Section 16480.7, the
Treasurer shall submit a quarterly report to the Pooled Money
Investment Board within 30 days following the end of the quarter
covered by the report containing the following:
(1) The type of investment, name of the issuer, date of maturity,
par and dollar amount invested in each security, investment, and
money within the treasury.
(2) The weighted average maturity of the investments within the
treasury.
(3) Any funds, investments, or programs, including loans, that are
under the management of contracted parties.
(4) The market value as of the date of the report, and the source
of this valuation for any security within the treasury.
(5) A description of the compliance with the statement of
investment policy.
(c) The board may, by resolution, require the treasurer to report
the information required in subdivision (b) every month rather than
quarterly.
SEC. 2. Section 53646 of the Government Code is repealed.
SEC. 3. Section 53646 is added to the Government Code, to read:
53646. (a) The treasurer or chief fiscal officer shall annually
render to the legislative body of the local agency and any oversight
committee a statement of investment policy, which the legislative
body of the local agency shall consider at a public meeting. Any
changes in the policy shall also be considered by the legislative
body of the local agency at a public meeting.
(b) (1) The treasurer or chief fiscal officer shall render a
quarterly report to the chief executive officer, the internal
auditor, and the legislative body of the local agency. The quarterly
report shall be so submitted within 30 days following the end of the
quarter covered by the report. Except as provided in subdivision
(e), this report shall include the type of investment, issuer, date
of maturity par and dollar amount invested on all securities,
investments and moneys held by the local agency, and shall
additionally include a description of any of the local agency's
funds, investments, or programs, that are under the management of
contracted parties, including lending programs. With respect to all
securities held by the local agency, and under management of any
outside party that is not also a local agency or the State of
California Local Agency Investment Fund, the report shall also
include a current market value as of the date of the report, and
shall include the source of this same valuation.
(2) The quarterly report shall state compliance of the portfolio
to the statement of investment policy, or manner in which the
portfolio is not in compliance.
(3) The quarterly report shall include a statement denoting the
ability of the local agency to meet its pool's expenditure
requirements for the next six months, or provide an explanation as to
why sufficient money shall, or may, not be available.
(4) In the quarterly report, a subsidiary ledger of investments
may be used in accordance with accepted accounting practices.
(c) Pursuant to subdivision (b), the treasurer or chief fiscal
officer shall report whatever additional information or data may be
required by the legislative body of the local agency.
(d) The legislative body of a local agency may elect to require
the report specified in subdivision (b) to be made on a monthly basis
instead of quarterly.
(e) If a local agency has placed all of its investments in the
Local Agency Investment Fund, created by Section 16429.1, or in
Federal Deposit Insurance Corporation-insured accounts in a bank or
savings and loan association, in a county investment pool, or any
combination of these, the treasurer or chief fiscal officer may
supply to the governing body, chief executive officer, and the
auditor of the local agency the most recent statement or statements
received by the local agency from these institutions in lieu of the
information required by paragraph (1) of subdivision (b).
SEC. 4. Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code. If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.