BILL NUMBER: AB 1617AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 9, 2012 INTRODUCED BY Assembly Member Dickinson FEBRUARY 8, 2012 An act to add Section1651116480.43 to the Government Code, relating tothe State Treasury.st ate fiscal affairs. LEGISLATIVE COUNSEL'S DIGEST AB 1617, as amended, Dickinson. StateTreasury:fiscal affairs: Pooled Money Investment Account: communitybanks.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. This bill would require the Treasurer todeposit not less thaninvest an average of 30% of surplus moneys in theState TreasuryPooled Money Investment Account, as specified, in a state or federally chartered communitybanksbank , as defined to mean a bank or savings institution in California with aggregate assets of less than$1,000,000,000$10,000,000,000, or a credit union, subject to specified considerations . 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. Section1651116480.43 is added to the Government Code, to read:16511.16480.43. (a) Notwithstanding Section16500 or16505, 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 shalldeposit not less thaninvest an average of 30 percent of surplus moneys in theState Treasury in community banksPooled Money Investment Account, calculated over a 12-month period, in time deposits in a state or federally chartered community bank or credit union .(b) The allocation of moneys deposited in community banks shall be proportionate by geographic region throughout the state with roughly one-third deposited among northern California community banks, one-third deposited among central California community banks, and one-third deposited among southern California community banks.(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) When choosing which community banks and credit unions to usein each regional area,for the investment of surplus moneys, pursuant to subdivision (a), the Treasurer shall take into consideration the following:(1) Whether the community bank services a rural or urban community.(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) For purposes of this section, a "community bank" means a bank or savings institution in California with aggregate assets of less thanoneten billion dollars($1,000,000,000)($10,000,000,000) . (e) 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.