BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1033
                                                                  Page  1


          SENATE THIRD READING
          SB 1033 (Budget and Fiscal Review Committee)
          As Amended  June 25, 2012
          Majority vote.  Budget Bill Appropriation Takes Effect 
          Immediately 

           SENATE VOTE  :Vote not relevant  
           
           SUMMARY  :  Contains necessary statutory and technical changes to 
          implement the Budget Act of 2012 relating to cash management.  
          This bill creates a fund within the State Treasury to which 
          local governments can voluntarily deposit moneys to be used by 
          the state for short-term cash needs.  Specifically,  this bill  :

          1)Creates the Voluntary Investment Program Fund within the State 
            Treasury.

          2)Allows cities, counties, school districts, or special 
            districts to deposit between $200 million and $10 billion into 
            the fund, upon approval by their governing bodies.

          3)Allows terms and conditions of the deposits to be set by the 
            Director of Finance in consultation with the State Treasurer, 
            and stipulates interest rates.

          4)Allows the State Treasurer to use the fund for the state's 
            short-term cash needs.

          5)Contains an appropriation allowing this bill to take effect 
            immediately upon enactment.


           Analysis Prepared by  :   Mark Martin / BUDGET / (916) 319-2099


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