BILL NUMBER: AB 731	CHAPTERED  10/10/99

	CHAPTER   771
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 7, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 3, 1999
	PASSED THE SENATE   AUGUST 31, 1999
	AMENDED IN SENATE   AUGUST 25, 1999

INTRODUCED BY   Assembly Member Wesson

                        FEBRUARY 24, 1999

   An act to amend  Section 31596 of the Government Code, relating to
local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 731, Wesson.  County employee retirement:  fund transfers:
securities.
   The County Employees' Retirement Law of 1937 authorizes security
custodian services to be performed by trust companies and banks
within this state.
   This bill would authorize boards to have these services performed
by trust companies and banks not within the state.


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


  SECTION 1.  Section 31596 of the Government Code is amended to
read:
   31596.  (a) When securities belonging to or held for the
retirement association are sold, the county treasurer shall deliver
the securities to the purchaser upon receiving the proceeds, and may
execute any and all documents necessary to transfer title.  The
duties imposed upon the county treasurer by this article are a part
of his or her official duties, for the faithful performance of which
he or she is liable on his or her official bond.
   (b) The board may, or if authorized by the board, the treasurer
shall authorize a state or federally chartered depository
institution, the deposits of which are insured by the Federal Deposit
Insurance Corporation, or any trust company licensed under state or
federal law to conduct the business of a trust company or any Federal
Reserve Bank, to act as custodian of any securities owned by the
retirement association.  In that case, the duties imposed by
subdivision (a) upon the county treasurer shall instead be performed
by the board and shall be included in any agreement for custodial
services.  Any of these banks or trust companies may be authorized to
collect the income from the securities and deposit the proceeds in
an account established by the board for the retirement association.