BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2298
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          Date of Hearing:  April 23, 2014

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
               AB 2298 (Rodriguez) - As Introduced:  February 21, 2014
           
          SUBJECT  :  Local agency funds.

           SUMMARY  :  Allows state chartered financial institutions that  
          maintain local agency deposits to submit their Local Agency  
          Deposits Weekly Reports via email or facsimile.

           EXISTING LAW  :

          1)Imposes various conditions and restrictions on the investment  
            and deposit of the funds of local agencies.

          2)Authorizes the Administrator of Local Agency Security  
            (Administrator) within the Department of Business Oversight  
            (DBO) to examine a depository, as defined, in which the moneys  
            of local agencies are deposited.

          3)Requires each local agency depository to provide the  
            Administrator with specified reports and information,  
            including a weekly report regarding the total amount of all  
            local agency deposits held by the depository.  These reports  
            must be hand delivered, or sent via United States (U.S.)  
            Postal Service mail.

           FISCAL EFFECT  :  This bill is keyed fiscal.

           COMMENTS  :   

           1)Purpose of this bill  .  This bill allows financial institutions  
            that accept local agency deposits to submit required weekly  
            reports via email or fax.  This bill is sponsored by the  
            California Credit Union League.

           2)Author's statement  .  According to the author, "Financial  
            institutions, which accept local agency deposits, are required  
            under current law to submit weekly reports to the Department  
            of Business Oversight, detailing the status of the local  
            agency deposits.  Under current law, weekly reports on the  
            total amount of local agency deposits must be hand delivered  
            to DBO or sent via U.S. mail, postage prepaid.  The law does  








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            not allow for the report to be submitted electronically.

            "The current gap in the law results in unnecessary costs  
            incurred for postage and results in unfriendly environmental  
            practices.  AB 2298 would streamline the government process  
            and provide an environmentally sound reporting alternative."

           3)Background .  California law allows local agencies to invest  
            surplus funds into various specified investment vehicles.   
            California regulated state banks and credit unions are  
            required to report weekly on the status of those investments  
            to the Administrator, within DBO.  The information in these  
            reports must be as of the close of business each Wednesday and  
            delivered to the Administrator within five business days via  
            U.S. mail or in person.  This bill allows the weekly reports  
            to be provided electronically via email or facsimile. 

           4)Arguments in support  .  The California Credit Union League,  
            sponsor of this bill, notes, "We believe the modernization of  
            this reporting requirement would result in improved government  
            efficiency and reduced environmental waste."

           5)Arguments in opposition  .  None on file.

           6)Double-referral  .  This bill was heard by the Banking and  
            Finance Committee on April 7, 2014, where it passed with a  
            12-0 vote.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Credit Union League [SPONSOR]
          California Bankers Association
          California Independent Bankers

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Angela Mapp / L. GOV. / (916) 319-3958 












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