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CA SB1438
Bill
Status
Introduced
3/11/2026
Primary Sponsor
Local Government
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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