BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2298
                                                                  Page  1

          Date of Hearing:   April 30, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

               AB 2298 (Rodriguez) - As Introduced:  February 21, 2014 

          Policy Committee:                             Banking &  
          FinanceVote: 12-0
                       Local Government                       8-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill allows state chartered financial institutions that  
          maintain local agency deposits to submit their Local Agency  
          Deposit Weekly Reports via email or facsimile.

           FISCAL EFFECT  

          Minor and absorbable costs to CDBO to accept reports via  
          facsimile.

           COMMENTS  

          1)  Purpose.   According to the author, financial institutions that  
            accept local agency deposits are required to submit weekly  
            reports to the California Department of Business Oversight  
            (CDBO) detailing the status of those deposits.  Under current  
            law, the weekly reports must be hand delivered to CDBO or sent  
            via US mail, postage prepaid.  The law does not allow  
            institutions to submit the report electronically.  The author  
            argues postal or hand delivery results in unnecessary costs  
            and unfriendly environmental practices.

          2)  Background.   Current law allows local agencies to invest  
            surplus funds into various specified investment vehicles.  For  
            example, up to 30% of local agency funds can be invested in  
            certificates of deposit at financial institutions.    
            California regulated state banks and credit unions are  
            required to report weekly on the status of those investments  
            to CDBO.  The information in these reports must be current as  
            of the close of business each Wednesday and delivered to the  








                                                                  AB 2298
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            Administrator within five business days via U.S. mail or in  
            person.


           Analysis Prepared by :    Joel Tashjian / APPR. / (916) 319-2081