CA AB3253

Increases the percentage of local agency surplus funds that can be invested in deposits through private sector placement services from 30% to 50%, effective until January 1, 2021.

Increases the percentage of local agency surplus funds that can be invested in certificates of deposit through private sector placement services from 30% to 50%, effective on and after January 1, 2021.

Requires that all deposits and certificates of deposit placed through private sector entities be fully insured by the Federal Deposit Insurance Corporation or National Credit Union Administration at all times.

Permits credit unions to act as selected depository institutions only if they offer federal depository insurance and possess written authorization from the National Credit Union Administration.

Removes provisions related to Federal Home Loan Bank letters of credit from the bill's scope through amendments.