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CA SB1438

Bill

Status

Introduced

3/11/2026

Primary Sponsor

Local Government

Click for details

Origin

Senate

2025-2026 Regular Session

AI Summary

  • Revises and recasts provisions governing investment of public funds by local agencies, including consolidating definitions and restructuring existing code sections
  • Expands authorized commercial paper investments to include paper issued by federally or state-chartered banks and federally or state-licensed branches of foreign banks
  • Authorizes investment in senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the Inter-American Investment Corporation
  • Removes the January 1, 2031, sunset date that would have reduced the maximum commercial paper investment limit from 40% to 25% for local agencies with $100,000,000 or more in investment assets
  • Allows eligible banks headquartered outside California to submit letters of credit drawn on their regional federal home loan bank as security for deposits by counties, cities and counties, or local agencies that pool investments

Legislative Description

Local government: investments and deposits.

Last Action

From printer. May be acted upon on or after April 11.

3/12/2026

Committee Referrals

Rules3/11/2026

Full Bill Text

No bill text available