California Assembly Bill AB1617 Latest Draft

 BILL NUMBER: AB 1617AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 23, 2012 AMENDED IN ASSEMBLY APRIL 9, 2012 INTRODUCED BY Assembly Member Dickinson FEBRUARY 8, 2012 An act to add  Section 16480.43   Sections 16511 and 16512  to the Government Code, relating to state fiscal affairs. LEGISLATIVE COUNSEL'S DIGEST AB 1617, as amended, Dickinson. State fiscal affairs:  Pooled Money Investment Account:  community 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.   Existing law   authorizes the Treasurer to determine what amounts of money shall be deposited as time deposits or demand deposits.  This bill would require the Treasurer to  invest an average of   ensure that at least  30% of  surplus   the  moneys  in the Pooled Money Investment Account, as specified, in a state or federally chartered   invested in the time deposit program are invested in time deposits with  community  bank   banks  , as defined to mean a bank or savings institution in California with aggregate assets of less than $10,000,000,000,  or a credit union   and credit unions  , subject to specified considerations  and a reporting requirement and to the extent consistent with liquidity requirements and prudent management  . 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. Section  16480.43   16511  is added to the Government Code, to read:  16480.43.   16511.  (a) Notwithstanding Section 16505, 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 shall  invest an average of 30 percent of surplus moneys in the Pooled Money Investment Account, calculated over a 12-month period, in time deposits in a state or federally chartered community bank or credit union   ensure that at least 30 percent of the moneys invested in the time deposit program are invested in time deposits with community banks and credit unions  .  (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)   (b)  When choosing which community banks and credit unions to use for the investment  of surplus moneys,  pursuant to subdivision (a), the Treasurer  shall   may  take into consideration the following: (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)   (c)  For purposes of this section, a "community bank" means a bank or savings institution in California with aggregate assets of less than ten billion dollars ($10,000,000,000).  (e)   (d)  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.  SEC. 2.   Section 16512 is added to the   Government Code   , to read:   16512. The Treasurer shall identify in public reports related to the time deposit program the recipients of time deposits that meet the definition of community bank, as defined in subdivision (c) of Section 16511, or credit union, as defined in subdivision (d) of Section 16511.