CA SB595

Extends the maximum maturity period for local agency investments in prime quality commercial paper from 270 days to 397 days

Postpones from January 1, 2026 to January 1, 2031 the reduction in commercial paper investment limits, allowing local agencies with $100 million or more in investment assets to continue investing up to 40% in commercial paper (versus 25% for smaller agencies)

Extends until January 1, 2031 the exception permitting local agencies to invest in U.S. government-backed securities that could result in zero-interest accrual during periods of negative market interest rates

Changes the deadline for local agency officers to file financial reports with the Controller from 20 days after receiving written notice of failure to 10 months after the end of the fiscal year (or within Controller-prescribed time, whichever is later)

Establishes tiered forfeiture penalties for late financial report filings: $1,000 for agencies with under $100,000 revenue, $2,500 for $100,000-$250,000 revenue, and $5,000 for agencies with $250,000+ revenue