CA SB1344

Removes the January 1, 2012 sunset date from Government Code Sections 53601.8 and 53635.8, making provisions for local agency certificate of deposit investments permanent.

Allows local agencies to invest up to 30% of surplus funds in certificates of deposit through commercial banks, savings banks, savings and loan associations, or credit unions that use private sector placement services.

Requires certificates of deposit to be fully insured by the Federal Deposit Insurance Corporation or National Credit Union Administration at all times.

Designates a "selected" depository institution in California to serve as custodian and requires reciprocal deposits from other financial institutions equal to or greater than the local agency's initial deposit.

Restricts credit unions from acting as selected depository institutions unless they offer federal depository insurance and possess written authorization from the National Credit Union Administration.