California 2019-2020 Regular Session Status: Enacted 1 D cosponsors

SB 998 — Local government: investments.

Last action — Chaptered by Secretary of State. Chapter 235, Statutes of 2020.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 13, 2020. Enacted.

Prognosis

Likely to advance 74% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 2 sponsors

    1 primary, 1 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 D).

  • Cleared a recorded vote

    Passed 4 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Existing law, the Joint Exercise of Powers Act, generally authorizes 2 or more public agencies to agree to jointly exercise a common power. Existing law specifically authorizes 2 or more public agencies that have the authority to invest funds in their treasuries to agree to jointly exercise that common power and describes how funds subject to that agreement may be invested. This bill would authorize a joint powers authority formed as described above to establish the terms and conditions pursuant to which agencies may participate and invest in pool shares. The bill would specify that a federally recognized Indian tribe is eligible to participate in a joint powers authority formed for this purpose, consistent with its status as a public agency under the Joint Exercise of Powers Act, or to otherwise invest in pool shares consistent with the terms and conditions established by the joint powers authority. Existing law regulates the investment of public funds by local agencies, as defined. Existing law authorizes the legislative body of a local agency, as specified, that has money in a sinking fund or in its treasury not required for immediate needs to invest the money as it deems wise or expedient in certain securities and financial instruments. In this regard, existing law authorizes investment in prime quality commercial paper issued by entities meeting certain criteria. Existing law prohibits local agencies, other than counties, from investing more than 25% of their moneys in eligible commercial paper and further prohibits these agencies from purchasing more than 10% of the outstanding commercial paper of any single issuer. Existing law authorizes local agencies, as specified, to invest in medium-term notes, which are defined as corporate and depository institution debt securities with a maximum remaining maturity of 5 years or less, issued by specified corporations or by depository institutions. This bill would prohibit a local agency, other than a county or a city and a county, from investing more than 10% of its total investment assets in the commercial paper and the medium-term notes of any single issuer. This bill, until January 1, 2026, for local agencies that have more than $100,000,000 of investment assets under management, would instead prohibit investing more than 40% of their moneys in eligible commercial paper. Existing law generally prohibits a local agency from investing any funds pursuant to specified authorizations in a security that could result in zero-interest accrual if held to maturity. This bill, until January 1, 2026, would create an exception to this prohibition by authorizing a local agency to invest in securities issued by, or backed by, the United States government that could result in zero- or negative-interest accrual if held to maturity, as specified.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 235, Statutes of 2020.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 3 p.m.

  4. In Senate. Ordered to engrossing and enrolling.

  5. Read third time. Passed. (Ayes 75. Noes 0. Page 5280.) Ordered to the Senate.

  6. Read second time. Ordered to consent calendar.

  7. From committee: Do pass. Ordered to consent calendar. (Ayes 8. Noes 0.) (August 11).

  8. Coauthors revised.

  9. Referred to Com. on L. GOV.

  10. In Assembly. Read first time. Held at Desk.

  11. Read third time. Passed. (Ayes 39. Noes 0. Page 3675.) Ordered to the Assembly.

  12. Read second time and amended. Ordered to third reading.

  13. From committee: Do pass as amended. (Ayes 7. Noes 0. Page 3576.) (May 21).

  14. Set for hearing May 21.

  15. From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F.

  16. Referred to Com. on GOV. & F.

  17. From printer. May be acted upon on or after March 15.

  18. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 120 not signed on

Sponsors (1)

  • Moorlach

Co-sponsors (1)

Not signed on (120)

120 members have not signed on to this bill.

Show all 120 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

SB 998 Moorlach Consent Calendar Second Day

Passed 75 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 48003
Democratic 21001
Republican 6000
Total 75004
% of votes cast 95%0%0%5%
How each member voted (79)
Member Party Vote
Jones-Sawyer — Yea
Levine — Yea
Mayes — Yea
Weber — Yea
Mullin — Yea
Obernolte — Yea
Gray — Yea
Salas — Yea
Cunningham — Yea
Bigelow — Yea
O'Donnell — Yea
Rendon — Yea
Bloom — Yea
Gonzalez — Yea
Maienschein — Yea
Ting — Yea
Cooper — Yea
Kamlager — Yea
Nazarian — Yea
Brough — Yea
Fong — Yea
Friedman — Yea
Low — Yea
Diep — Yea
Cooley — Yea
Santiago — Yea
Chu — Yea
Chau — Yea
Waldron — Yea
Burke — Yea
Mathis — Yea
Kiley — Yea
Medina — Yea
Gloria — Yea
McCarty — Yea
Chiu — Yea
Quirk — Yea
Daly — Yea
Wood — Yea
Rodriguez — Yea
Holden — Yea
Smith — Yea
Eggman — Not Voting
Frazier — Not Voting
Voepel — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Luz Rivas — Yea
Mark Stone — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Wicks, Buffy Democratic Not Voting
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea

Official roll call →

3rd Reading

Passed 39 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 27000
Democratic 9001
Republican 3000
Total 39001
% of votes cast 98%0%0%3%
How each member voted (40)
Member Party Vote
Chang — Yea
Leyva — Yea
Atkins — Yea
Skinner — Yea
Allen — Yea
Dodd — Yea
Hertzberg — Yea
Glazer — Yea
Borgeas — Yea
Roth — Yea
Morrell — Yea
Rubio — Yea
Wilk — Yea
Hill — Yea
Mitchell — Yea
Pan — Yea
Beall — Yea
Wieckowski — Yea
Bates — Yea
Monning — Yea
Melendez — Yea
Galgiani — Yea
Nielsen — Yea
Portantino — Yea
Moorlach — Yea
Bradford — Yea
Hueso — Yea
Archuleta, Bob Democratic Yea
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Gonzalez, Lena A. Democratic Yea
Hurtado, Melissa Democratic Not Voting
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

Subjects

finance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 998 do?
Existing law, the Joint Exercise of Powers Act, generally authorizes 2 or more public agencies to agree to jointly exercise a common power. Existing law specifically authorizes 2 or more public agencies that have the authority to invest funds in their treasuries to agree to jointly exercise that common power and describes how funds subject to that agreement may be invested. This bill would authorize a joint powers authority formed as described above to establish the terms and conditions pursuant to which agencies may participate and invest in pool shares. The bill would specify that a federally recognized Indian tribe is eligible to participate in a joint powers authority formed for this purpose, consistent with its status as a public agency under the Joint Exercise of Powers Act, or to otherwise invest in pool shares consistent with the terms and conditions established by the joint powers authority. Existing law regulates the investment of public funds by local agencies, as defined. Existing law authorizes the legislative body of a local agency, as specified, that has money in a sinking fund or in its treasury not required for immediate needs to invest the money as it deems wise or expedient in certain securities and financial instruments. In this regard, existing law authorizes investment in prime quality commercial paper issued by entities meeting certain criteria. Existing law prohibits local agencies, other than counties, from investing more than 25% of their moneys in eligible commercial paper and further prohibits these agencies from purchasing more than 10% of the outstanding commercial paper of any single issuer. Existing law authorizes local agencies, as specified, to invest in medium-term notes, which are defined as corporate and depository institution debt securities with a maximum remaining maturity of 5 years or less, issued by specified corporations or by depository institutions. This bill would prohibit a local agency, other than a county or a city and a county, from investing more than 10% of its total investment assets in the commercial paper and the medium-term notes of any single issuer. This bill, until January 1, 2026, for local agencies that have more than $100,000,000 of investment assets under management, would instead prohibit investing more than 40% of their moneys in eligible commercial paper. Existing law generally prohibits a local agency from investing any funds pursuant to specified authorizations in a security that could result in zero-interest accrual if held to maturity. This bill, until January 1, 2026, would create an exception to this prohibition by authorizing a local agency to invest in securities issued by, or backed by, the United States government that could result in zero- or negative-interest accrual if held to maturity, as specified.
Who sponsors SB 998?
SB 998 is sponsored by Moorlach and Aguiar-Curry, Cecilia M. (Democratic).
What is the current status of SB 998?
This bill has been enacted into law. Introduced February 13, 2020. Enacted.
Where can I track SB 998?
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