CA SB998

Authorizes joint powers authorities to establish terms and conditions for public agencies to participate and invest in pool shares, with federally recognized Indian tribes eligible to participate as public agencies.

Prohibits local agencies (other than counties or cities and counties) from investing more than 10% of total investment assets in commercial paper and medium-term notes of any single issuer.

Increases the commercial paper investment limit to 40% for local agencies with $100,000,000 or more in investment assets under management until January 1, 2026, then reverts to 25%.

Creates a temporary exception until January 1, 2026 allowing local agencies to invest in U.S. government-backed securities that could result in zero or negative interest accrual during periods of negative market interest rates.

Requires joint powers authorities issuing shares of beneficial interest to retain an investment adviser registered with the SEC, with at least 5 years of experience and $500,000,000 in assets under management.