BILL NUMBER: SB 1493	CHAPTERED  07/21/00

	CHAPTER   168
	FILED WITH SECRETARY OF STATE   JULY 21, 2000
	APPROVED BY GOVERNOR   JULY 21, 2000
	PASSED THE SENATE   JULY 6, 2000
	PASSED THE ASSEMBLY   JUNE 29, 2000
	AMENDED IN ASSEMBLY   JUNE 19, 2000
	AMENDED IN ASSEMBLY   JUNE 8, 2000

INTRODUCED BY   Senator Lewis

                        FEBRUARY 11, 2000

   An act to amend Section 53684 of the Government Code, relating to
local agency funds.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1493, Lewis.  Local agency funds.
   Existing law requires the county treasurer to apportion and
distribute quarterly any interest or increment derived from the
investment of funds in the county treasury by any other local agency
in an amount proportionate to the average daily balance of the
amounts deposited by the local agency.
   This bill would require that apportionment to be made at least
quarterly and additionally require the amount apportioned and
distributed to be proportionate to the total average daily balance of
deposits in the investment pool.  The bill would also require the
county treasurer to disclose to investing local agencies the
accounting method used and to notify them of any proposed changes in
the accounting method at least 30 days prior to the date on which the
proposed changes take effect.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 53684 of the Government Code is amended to
read:
   53684.  (a) Unless otherwise provided by law, if the treasurer of
any local agency, or other official responsible for the funds of the
local agency, determines that the local agency has excess funds which
are not required for immediate use, the treasurer or other official
may, upon the adoption of a resolution by the legislative or
governing body of the local agency authorizing the investment of
funds pursuant to this section and with the consent of the county
treasurer, deposit the excess funds in the county treasury for the
purpose of investment by the county treasurer pursuant to Section
53601 or 53635.
   (b) The county treasurer shall, at least quarterly, apportion any
interest or other increment derived from the investment of funds
pursuant to this section in an amount proportionate to the average
daily balance of the amounts deposited by the local agency and to the
total average daily balance of deposits in the investment pool.  In
apportioning and distributing that interest or increment, the county
treasurer may use the cash method, the accrual method, or any other
method in accordance with generally accepted accounting principles.
   Prior to distributing that interest or increment, the county
treasurer may deduct the actual costs incurred by the county in
administering this section in proportion to the average daily balance
of the amounts deposited by the local agency and to the total
average daily balance of deposits in the investment pool.
   (c) The county treasurer shall disclose to each local agency that
invests funds pursuant to this section the method of accounting used,
whether cash, accrual, or other, and shall notify each local agency
of any proposed changes in the accounting method at least 30 days
prior to the date on which the proposed changes take effect.
   (d) The treasurer or other official responsible for the funds of
the local agency may withdraw the funds of the local agency pursuant
to the procedure specified in Section 27136.
   (e) Any moneys deposited in the county treasury for investment
pursuant to this section are not subject to impoundment or seizure by
any county official or agency while the funds are so deposited.
   (f) This section is not operative in any county until the board of
supervisors of the county, by majority vote, adopts a resolution
making this section operative in the county.
   (g) It is the intent of the Legislature in enacting this section
to provide an alternative procedure to Section 51301 for local
agencies to deposit money in the county treasury for investment
purposes.  Nothing in this section shall, therefore, be construed as
a limitation on the authority of a county and a city to contract for
the county treasurer to perform treasury functions for a city
pursuant to Section 51301.