AB 2080 — Investment of funds: delegation to county treasurer.

Summary

Existing law generally authorizes local agencies to invest or reinvest public funds and prescribes rules for that investing or reinvesting. Existing law authorizes a legislative body of a local agency to delegate this authority for a one-year period to the treasurer of the local agency, as specified, and after a delegation, requires the treasurer to make a monthly report of those transactions to the legislative body. Existing law authorizes a county board of supervisors, by ordinance, to delegate this authority to the county treasurer, as specified, and, after a delegation, requires the treasurer to assume this responsibility until the board to either revokes this delegation by ordinance or decides not to renew the one-year period described above. This bill would remove the requirement that a delegation by a county board of supervisors be made by ordinance. The bill would remove the one-year limitation on those delegations, and would remove the requirement that revocation of those delegations be made by ordinance. The bill would condition a delegation on the county investment policy requiring the county treasurer to make monthly and quarterly reports, as specified. This bill would incorporate additional changes to Sections 27000.1 and 53600.5 of the Government Code proposed by SB 1438 to be operative only if this bill and SB 1438 are enacted and this bill is enacted last.

Bill Text

• Amended 08/21/26 - Amended Senate html August 21, 2026
• Amended 06/10/26 - Amended Senate Current pdf June 10, 2026
• Amended 03/16/26 - Amended Assembly pdf March 16, 2026
• Introduced 02/18/26 - Introduced pdf February 18, 2026
• AB2080 View text html

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill amends 2 section(s) of the California codes: Section 27000.1 of the Government Code; Section 53607 of the Government Code.

• Section 27000.1 of the Government Code

  5 Subject to Section 53607, may, by ordinance, 5. The county treasurer shall thereafter assume full responsibility for those transactions until the board of supervisors either revokes its delegation of authority, by ordinance, or decides not to renew the annual delegation, as provided in Section 53607. Nothing in this section shall limit the county treasurer’s authority pursuant to Section 53635 or 53684. → 5, of SEC. 1.5. Section 27000.1 of the Government Code is amended to read: (a) Notwithstanding subdivision (o) of Section 53602, may 5, if the county investment policy requires the county treasurer to do both of the following: (1) Make a monthly report of transactions to the legislative body.(2) Make a quarterly report as provided in subdivision (b) of Section 53646.(b) The county treasurer shall thereafter assume full responsibility for those transactions until the board of supervisors revokes its delegation of authority.(c) This section shall not limit the county treasurer’s authority pursuant to subdivision (h) of Section 53603 or pursuant to Section 53684.

  amended

• Section 53607 of the Government Code

  53600.5. the → SEC. 2.5. Section 53600.5 of the Government Code is amended and renumbered to read: 53602. a local agency shall comply with all of the following: (a) The (b) Except as provided in subdivision (a) of Section 27000.3, a local agency or a person authorized to make investment decisions on behalf of a local agency investing public funds pursuant to this chapter is a trustee and therefore a fiduciary subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.(c) (1) A local agency purchasing or obtaining any securities prescribed in this article, in a negotiable, bearer, registered, or nonregistered format, shall require delivery of the securities to the local agency, including those purchased for the agency by financial advisers, consultants, or managers using the agency’s funds, by book entry, physical delivery, or by third-party custodial agreement.(2) The transfer of securities to the counterparty bank’s customer book entry account may be used for book-entry delivery. A counterparty bank’s trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the local agency.(d) Where this article specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase.(e) (1) An investment’s term or remaining maturity shall be measured from the settlement date to final maturity. A security purchased in accordance with this section shall not have a forward settlement date exceeding 45 days from the time of investment.(2) Where this section does not specify a limitation on the term or remaining maturity at the time of the investment, an investment shall not be made in any security, other than a security underlying a repurchase or reverse repurchase agreement or securities lending agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the local agency has granted express authority to make that investment either specifically or as a part of an investment program approved by the local agency no less than three months before the investment.(f) A local agency and a treasurer or other official of a local agency having legal custody of the moneys shall not invest local agency funds, or funds in the custody of the local agency, in negotiable certificates of deposit issued by a state or federal credit union if a member of the local agency, or a person with investment decisionmaking authority in the administrative office manager’s office, budget office, auditor-controller’s office, or treasurer’s office of the local agency also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit.(g) The base value of a local agency’s pool portfolio shall be that dollar amount obtained by totaling all cash balances placed in the pool by all pool participants, excluding any amounts obtained through selling securities by way of reverse repurchase agreements, securities lending agreements, or other similar borrowing methods.(h) A local agency may purchase any investment authorized pursuant to Section 53601 or

  amended

Action History

1. August 27, 2026

   Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0.).

2. August 24, 2026

   Read second time. Ordered to third reading.

3. August 21, 2026

   Read third time and amended. Ordered to second reading.

4. August 03, 2026

   Read second time. Ordered to third reading.

5. July 02, 2026

   From committee: Do pass. (Ayes 7. Noes 0.) (July 1).

6. June 10, 2026

   From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L. GOV.

7. May 20, 2026

   Referred to Com. on L. GOV.

8. May 07, 2026

   In Senate. Read first time. To Com. on RLS. for assignment.

9. May 07, 2026

   Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 4958.)

10. March 26, 2026

    Read second time. Ordered to third reading.

11. March 25, 2026

    From committee: Do pass. (Ayes 10. Noes 0.) (March 25).

12. March 17, 2026

    Re-referred to Com. on L. GOV.

13. March 16, 2026

    From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.

14. March 02, 2026

    Referred to Com. on L. GOV.

15. February 19, 2026

    From printer. May be heard in committee March 21.

16. February 18, 2026

    Read first time. To print.

Sponsors

• Natasha Johnson · Primary

Votes

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