BILL NUMBER: AB 1617	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 23, 2012
	AMENDED IN ASSEMBLY  APRIL 9, 2012

INTRODUCED BY   Assembly Member Dickinson

                        FEBRUARY 8, 2012

   An act to add  Section 16480.43   Sections
16511 and 16512  to the Government Code, relating to state
fiscal affairs.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1617, as amended, Dickinson. State fiscal affairs: 
Pooled Money Investment Account:  community 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. 
 Existing law   authorizes the Treasurer to determine
what amounts of money shall be deposited as time deposits or demand
deposits. 
   This bill would require the Treasurer to  invest an
average of   ensure that at least  30% of 
surplus   the  moneys  in the Pooled Money
Investment Account, as specified, in a state or federally chartered
  invested in the time deposit program are invested in
time deposits with  community  bank   banks
 , as defined to mean a bank or savings institution in
California with aggregate assets of less than $10,000,000,000,
 or a credit union   and credit unions  ,
subject to specified considerations  and a reporting requirement
and to the extent consistent with liquidity requirements and prudent
management  .
   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  16480.43   16511  is
added to the  Government Code, to read:
    16480.43.   16511.   (a)
Notwithstanding Section 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  invest an average of 30 percent of
surplus moneys in the Pooled Money Investment Account, calculated
over a 12-month period, in time deposits in a state or federally
chartered community bank or credit union   ensure that
at least 30 percent of the moneys invested in the time deposit
program are invested in time deposits with community banks and credit
unions  . 
   (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) 
    (b)  When choosing which community banks and credit
unions to use for the investment  of surplus moneys,
 pursuant to subdivision (a), the Treasurer  shall
  may  take into consideration the following:
   (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) 
    (c)  For purposes of this section, a "community bank"
means a bank or savings institution in California with aggregate
assets of less than ten billion dollars ($10,000,000,000). 
   (e) 
    (d)  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.
   SEC. 2.    Section 16512 is added to the  
Government Code   , to read:  
   16512.  The Treasurer shall identify in public reports related to
the time deposit program the recipients of time deposits that meet
the definition of community bank, as defined in subdivision (c) of
Section 16511, or credit union, as defined in subdivision (d) of
Section 16511.