BILL NUMBER: AB 1617	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 9, 2012

INTRODUCED BY   Assembly Member Dickinson

                        FEBRUARY 8, 2012

   An act to add Section  16511   16480.43 
to the Government Code, relating to  the State Treasury.
  st   ate fiscal affairs. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1617, as amended, Dickinson. State  Treasury: 
 fiscal affairs: Pooled Money Investment Account: 
community  banks.   banks and credit unions.

   Existing law requires all moneys in the State Treasury or under
control of the Treasurer belonging to or in the custody of the state
to be deposited by the Treasurer to the credit of the state in
eligible banks, as specified.  Existing law establishes a Pooled
Money Investment Board, consisting of the Controller, Treasurer, and
Director of Finance. The Pooled Money Investment Board governs the
Pooled Money Investment Account   . All state moneys held by
the Treasurer in treasury trust accounts, and all moneys in the
State Treasury, are continuously appropriated for the purpose of
investment and deposit, except as specified.   Existing law
sets forth eligible securities for the investment of surplus moneys.

   This bill would require the Treasurer to  deposit not less
than   invest an average of  30% of  surplus
 moneys in the  State Treasury   Pooled
Money Investment Account, as specified,  in  a state or
federally chartered  community  banks  
bank  , as defined to mean  a  bank or savings
institution in California with aggregate assets of less than 
$1,000,000,000   $10,000,000,000, or a credit union,
subject to specified considerations  .
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section  16511   16480.43  is
added to the Government Code, to read:
    16511.   16480.43.   (a)
Notwithstanding Section  16500 or  16505,  to
the maximum extent consistent with liquidity requirements and prudent
management of surplus moneys and in compliance with all other
requirements established by state law,  the Treasurer shall
 deposit not less than   invest an average of
 30 percent of  surplus  moneys in the  State
Treasury in community banks   Pooled Money Investment
Account, calculated over a 12-month period, in time deposits in a
state or federally chartered community bank or credit union  .

   (b) The allocation of moneys deposited in community banks shall be
proportionate by geographic region throughout the state with roughly
one-third deposited among northern California community banks,
one-third deposited among central California community banks, and
one-third deposited among southern California community banks.
 
   (b) For purposes of this section, "surplus moneys" means those
funds in the Pooled Money Investment Account exclusive of money from
the Local Agency Investment Fund and money allocated for internal
state borrowing. 
   (c) When choosing which community banks  and credit unions
 to use  in each regional area,   for the
investment of surplus moneys, pursuant to subdivision (a),  the
Treasurer shall take into consideration the following: 
   (1) Whether the community bank services a rural or urban
community.  
   (1) The extent to which a community bank or credit union serves a
community with an unemployment rate that exceeds the statewide
average. 
   (2) Whether the community bank  or credit union  services
a predominantly low- or moderate-income community.
   (3) Whether the community bank  or credit union  offers
small business loans  in the communities it serves, including,
but not limited to, commercial and industrial loans, real estate
loans, and lines of credit  . 
   (4) Whether the community bank is an "eligible bank" pursuant to
Section 16500.  
   (5) Whether the community bank or credit union is headquartered in
this state. 
   (d) For purposes of this section, a "community bank" means a bank
or savings institution in California with aggregate assets of less
than  one   ten  billion dollars 
($1,000,000,000)   ($10,000,000,000)  . 
   (e) For purposes of this section, a "credit union" means a
financial institution defined in Section 14002 of the Financial Code
that has obtained from the Commissioner of Financial Institutions a
certificate authorizing it to act as a credit union pursuant to
Section 14154 of the Financial Code, a credit union organized under
the laws of any state, or a federally chartered credit union.