CA AB945

Authorizes local agencies to invest surplus funds in deposits at commercial banks, savings banks, savings and loan associations, or credit unions using private sector placement entities, effective January 1, 2020.

Increases the investment limit to 50% of surplus funds for cities, districts, and agencies that do not pool investments with other agencies having different governing bodies, from January 1, 2020 through December 31, 2025.

Reduces the investment limit back to 30% of surplus funds effective January 1, 2026 for all local agencies.

Requires selected depository institutions to act as custodians and ensures all deposits maintain Federal Deposit Insurance Corporation or National Credit Union Administration insurance coverage at all times.

Mandates private sector entities provide local agencies with monthly inventories of depository institutions holding their funds and prevent placement that would exceed federal insurance limits at any single institution.