Investment of funds: delegation to county treasurer., the official text

An act to amend Sections 27000.1 and 53607 of the Government Code, relating to local government.

LEGISLATIVE COUNSEL'S DIGEST

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.

The people of the State of California do enact as follows:

SECTION 1.
Section 27000.1 of the Government Code is amended to read:
27000.1.
(a) Notwithstanding Section 53607, the board of supervisors may delegate to the county treasurer the authority to invest or reinvest the funds of the county and the funds of other depositors in the county treasury, pursuant to Chapter 4 (commencing with Section 53600) of Part 1 of Division 2 of Title 5 if the county investment policy requires the county treasurer to do both 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 Section 53635 or 53684.

SEC. 2.
Section 53607 of the Government Code is amended to read:
53607.
Except as provided in Section 27000.1, the authority of the legislative body to invest or to reinvest funds of a local agency, or to sell or exchange securities so purchased, may be delegated for a one-year period by the legislative body to the treasurer of the local agency, who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires, and shall make a monthly report of those transactions to the legislative body. Subject to review, the legislative body may renew the delegation of authority pursuant to this section each year.