SB 564 Local agency treasurers.
BILL NUMBER: SB 564 CHAPTERED 10/12/95
CHAPTER 783
FILED WITH SECRETARY OF STATE OCTOBER 12, 1995
APPROVED BY GOVERNOR OCTOBER 12, 1995
PASSED THE SENATE SEPTEMBER 15, 1995
PASSED THE ASSEMBLY SEPTEMBER 15, 1995
AMENDED IN ASSEMBLY SEPTEMBER 13, 1995
AMENDED IN ASSEMBLY JULY 18, 1995
AMENDED IN SENATE APRIL 27, 1995
AMENDED IN SENATE APRIL 19, 1995
AMENDED IN SENATE APRIL 6, 1995
AMENDED IN SENATE MARCH 27, 1995
INTRODUCED BY Senators Johnston and Lewis
FEBRUARY 21, 1995
An act to add Section 16481.2 to, and to repeal and add Section 53646 of, the Government Code, relating to government agency investments.
LEGISLATIVE COUNSEL'S DIGEST
SB 564, Johnston. Local agency treasurers.
Existing law requires the Treasurer to make a monthly report on investments in the Pooled Money Investment Account.
This bill would require the Treasurer to annually prepare and submit to the Pooled Money Investment Board a written statement of investment policy and a quarterly
report on investments in the Pooled Money Investment Account, as specified.
Existing law provides that the treasurer of a local agency may render to the depositary and to the auditor, controller, secretary, or corresponding officer of the local
agency a statement showing the amount of accrued interest for each depositary for the preceding quarter if so required by the legislative body of the local agency.
This bill would instead require the treasurer or chief fiscal officer to render to the legislative body of the local agency and any oversight committee a statement of
investment policy. The report would be required to be made annually and be considered, with any changes, by the legislative body of the local agency at a public
meeting.
This bill would also require the treasurer or chief fiscal officer, except in specified circumstances, to render a quarterly report to the chief executive officer, the
internal auditor, and the legislative body of the local agency containing detailed information on all securities, investments, and moneys of the local agency, a statement
of compliance of the portfolio with the statement of investment policy, and a statement of the local agency's ability to meet its pool's expenditure requirements for the
next 6 months. By requiring these reports to be made this bill would impose a state_mandated local program. The bill would require the treasurer or chief fiscal
officer to report whatever additional information or data may be required by the legislative body of the local agency.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish
procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000
statewide and other procedures for claims whose statewide costs exceed $1,000,000.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall
be made pursuant to these statutory provisions.
SECTION 1. Section 16481.2 is added to the Government Code, to read:
16481.2. (a) The Treasurer shall annually prepare and submit to the Pooled Money Investment Board a written statement of investment policy. The Treasurer shall
promptly notify the board of any material change in the statement of investment policy. The board shall consider the statement of investment policy and any changes
therein at a public meeting.
(b) In addition to the report required by Section 16480.7, the Treasurer shall submit a quarterly report to the Pooled Money Investment Board within 30 days
following the end of the quarter covered by the report containing the following:
(1) The type of investment, name of the issuer, date of maturity, par and dollar amount invested in each security, investment, and money within the treasury.
(2) The weighted average maturity of the investments within the treasury.
(3) Any funds, investments, or programs, including loans, that are under the management of contracted parties.
(4) The market value as of the date of the report, and the source of this valuation for any security within the treasury.
(5) A description of the compliance with the statement of investment policy.
(c) The board may, by resolution, require the treasurer to report the information required in subdivision (b) every month rather than quarterly.
SEC. 2. Section 53646 of the Government Code is repealed.
SEC. 3. Section 53646 is added to the Government Code, to read:
53646. (a) The treasurer or chief fiscal officer shall annually render to the legislative body of the local agency and any oversight committee a statement of investment
policy, which the legislative body of the local agency shall consider at a public meeting. Any changes in the policy shall also be considered by the legislative body of
the local agency at a public meeting.
(b) (1) The treasurer or chief fiscal officer shall render a quarterly report to the chief executive officer, the internal auditor, and the legislative body of the local
agency. The quarterly report shall be so submitted within 30 days following the end of the quarter covered by the report. Except as provided in subdivision (e), this
report shall include the type of investment, issuer, date of maturity par and dollar amount invested on all securities, investments and moneys held by the local agency,
and shall additionally include a description of any of the local agency's funds, investments, or programs, that are under the management of contracted parties,
including lending programs. With respect to all securities held by the local agency, and under management of any outside party that is not also a local agency or the
State of California Local Agency Investment Fund, the report shall also include a current market value as of the date of the report, and shall include the source of this
same valuation.
(2) The quarterly report shall state compliance of the portfolio to the statement of investment policy, or manner in which the portfolio is not in compliance.
(3) The quarterly report shall include a statement denoting the ability of the local agency to meet its pool's expenditure requirements for the next six months, or
provide an explanation as to why sufficient money shall, or may, not be available.
(4) In the quarterly report, a subsidiary ledger of investments may be used in accordance with accepted accounting practices.
(c) Pursuant to subdivision (b), the treasurer or chief fiscal officer shall report whatever additional information or data may be required by the legislative body of the
local agency.
(d) The legislative body of a local agency may elect to require the report specified in subdivision (b) to be made on a monthly basis instead of quarterly.
(e) If a local agency has placed all of its investments in the Local Agency Investment Fund, created by Section 16429.1, or in Federal Deposit Insurance
Corporation_insured accounts in a bank or savings and loan association, in a county investment pool, or any combination of these, the treasurer or chief fiscal officer
may supply to the governing body, chief executive officer, and the auditor of the local agency the most recent statement or statements received by the local agency
from these institutions in lieu of the information required by paragraph (1) of subdivision (b).
SEC. 4. Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the
state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2
of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from
the State Mandates Claims Fund.
Notwithstanding Section 17580 of the Government Code, unless otherwise specified, the provisions of this act shall become operative on the same date that the act
takes effect pursuant to the California Constitution.