Bill Commons

CA SB 595

enacted

Local government: investments and financial reports.

California · 2025-2026 Regular Session · upper

Quick answers

Did CA SB 595 pass?

Yes. CA SB 595 has been enacted into law as of 2025-10-03. Latest recorded action (2025-10-03): Chaptered by Secretary of State. Chapter 323, Statutes of 2025.

What is CA SB 595 about?

(1) 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 the immediate needs of the local agency to invest the money as it deems wise or expedient in certain securities and financial instruments, subject to various requirements. These permissible investments include, among others, commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization that is issued by entities meeting certain criteria, if the eligible commercial paper has a maximum maturity of 270 days or less. This bill would revise the maximum maturity periods for the investments in prime quality commercial paper to 397 days. Existing law, until January 1, 2026, authorizes local agencies, as specified, that have less than $100,000,000 of investment assets under management to invest no more than 25%, and those local agencies that have $100,000,000 or more of investment assets under management to invest no more than 40%, of their moneys in eligible commercial paper, as specified. Existing law, beginning January 1, 2026, instead authorizes those local agencies regardless of the amount of investment assets they have under management to invest no more than 25% of their moneys in eligible commercial paper, as specified. This bill would instead repeal the former provisions on January 1, 2031, and would postpone the operative date for the latter provisions until January 1, 2031. Existing law prohibits a local agency from investing specified public funds in any security that could result in zero-interest accrual if held to maturity, as specified. Existing law, until January 1, 2026, authorizes a local agency as an exception to that provision to invest in securities issued by, or backed by, the United States government that could result in zero-interest accrual if held to maturity, as specified. This bill would instead repeal the above-described exception on January 1, 2031. (2) Existing law requires the Controller to annually compile, publish, and make publicly available on the Controller's website reports of the information concerning financial transactions and annual compensation of each county, city, and school district within the state, as specified. If an officer of a local agency fails or refuses to make and file their financial report within 20 days after receipt of a written notice of the failure from the Controller, existing law requires that officer or local agency to forfeit to the state a specified amount depending on the amount of total revenue of that local agency. This bill would instead require that forfeiture if the officer fails or refuses to make and file their financial report within 10 months after the end of the local agency's fiscal year, or within the time prescribed by the Controller, whichever is later.

Who sponsors CA SB 595?

Choi is the primary sponsor of CA SB 595.

Description

(1) 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 the immediate needs of the local agency to invest the money as it deems wise or expedient in certain securities and financial instruments, subject to various requirements. These permissible investments include, among others, commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization that is issued by entities meeting certain criteria, if the eligible commercial paper has a maximum maturity of 270 days or less. This bill would revise the maximum maturity periods for the investments in prime quality commercial paper to 397 days. Existing law, until January 1, 2026, authorizes local agencies, as specified, that have less than $100,000,000 of investment assets under management to invest no more than 25%, and those local agencies that have $100,000,000 or more of investment assets under management to invest no more than 40%, of their moneys in eligible commercial paper, as specified. Existing law, beginning January 1, 2026, instead authorizes those local agencies regardless of the amount of investment assets they have under management to invest no more than 25% of their moneys in eligible commercial paper, as specified. This bill would instead repeal the former provisions on January 1, 2031, and would postpone the operative date for the latter provisions until January 1, 2031. Existing law prohibits a local agency from investing specified public funds in any security that could result in zero-interest accrual if held to maturity, as specified. Existing law, until January 1, 2026, authorizes a local agency as an exception to that provision to invest in securities issued by, or backed by, the United States government that could result in zero-interest accrual if held to maturity, as specified. This bill would instead repeal the above-described exception on January 1, 2031. (2) Existing law requires the Controller to annually compile, publish, and make publicly available on the Controller's website reports of the information concerning financial transactions and annual compensation of each county, city, and school district within the state, as specified. If an officer of a local agency fails or refuses to make and file their financial report within 20 days after receipt of a written notice of the failure from the Controller, existing law requires that officer or local agency to forfeit to the state a specified amount depending on the amount of total revenue of that local agency. This bill would instead require that forfeiture if the officer fails or refuses to make and file their financial report within 10 months after the end of the local agency's fiscal year, or within the time prescribed by the Controller, whichever is later.

Introduced
2025-02-20
Latest action
2025-10-03 — Chaptered by Secretary of State. Chapter 323, Statutes of 2025.
Bill type
bill
Last updated

Subjects

Sponsors

  • Choiauthor

Committees

Not provided by source.

Action timeline

  1. 2025-02-20

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

    introduction,reading-1,referral-committee

  2. 2025-02-21

    From printer. May be acted upon on or after March 23.

  3. 2025-03-05

    Referred to Com. on L. GOV.

    referral-committee

  4. 2025-03-24

    Set for hearing April 30.

  5. 2025-04-09

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

    amendment-passage,committee-passage,reading-1,reading-2,referral-committee

  6. 2025-04-30

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 7. Noes 0. Page 968.) (April 30). Re-referred to Com. on APPR.

    committee-passage,committee-passage-favorable,referral-committee

  7. 2025-05-02

    Set for hearing May 12.

  8. 2025-05-12

    May 12 hearing: Placed on APPR. suspense file.

  9. 2025-05-16

    Set for hearing May 23.

  10. 2025-05-23

    Read second time and amended. Ordered to second reading.

    amendment-passage,reading-1,reading-2

  11. 2025-05-23

    From committee: Do pass as amended. (Ayes 6. Noes 0. Page 1205.) (May 23).

    amendment-passage,committee-passage,committee-passage-favorable

  12. 2025-05-27

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  13. 2025-06-02

    Ordered to special consent calendar.

  14. 2025-06-04

    Read third time. Passed. (Ayes 39. Noes 0. Page 1522.) Ordered to the Assembly.

    passage,reading-1,reading-3

  15. 2025-06-05

    In Assembly. Read first time. Held at Desk.

    reading-1

  16. 2025-06-16

    Referred to Com. on L. GOV.

    referral-committee

  17. 2025-07-03

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 10. Noes 0.) (July 2). Re-referred to Com. on APPR.

    committee-passage,committee-passage-favorable,referral-committee

  18. 2025-07-16

    From committee: Do pass. Ordered to consent calendar. (Ayes 13. Noes 0.) (July 16).

    committee-passage,committee-passage-favorable

  19. 2025-07-17

    Read second time. Ordered to consent calendar.

    reading-1,reading-2

  20. 2025-08-18

    Ordered to third reading.

    reading-1,reading-3

  21. 2025-08-18

    From consent calendar on motion of Assembly Member Aguiar-Curry.

  22. 2025-09-03

    Read third time and amended.

    amendment-passage,reading-1,reading-3

  23. 2025-09-03

    Ordered to third reading.

    reading-1,reading-3

  24. 2025-09-08

    Read third time. Passed. (Ayes 78. Noes 0. Page 2981.) Ordered to the Senate.

    passage,reading-1,reading-3

  25. 2025-09-08

    In Senate. Concurrence in Assembly amendments pending.

  26. 2025-09-11

    Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2871.) Ordered to engrossing and enrolling.

    amendment-passage,committee-passage,committee-passage-favorable

  27. 2025-09-22

    Enrolled and presented to the Governor at 2 p.m.

    executive-receipt

  28. 2025-10-03

    Approved by the Governor.

    executive-signature

  29. 2025-10-03

    Chaptered by Secretary of State. Chapter 323, Statutes of 2025.

    became-law

Versions

  • 02/20/25 - Introduced — 2025-02-20Compare
  • 04/09/25 - Amended Senate — 2025-04-09Compare
  • 05/23/25 - Amended Senate — 2025-05-23Compare
  • 09/03/25 - Amended Assembly — 2025-09-03Compare
  • 09/16/25 - Enrolled — 2025-09-16Compare
  • 10/03/25 - Chaptered — 2025-10-03Compare
  • SB595Compare
  • (document, no version)Compare

Documents

Votes

  • Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar

    2025-04-30 · pass · 7-0

    Member-level votes (7)
    • Arreguín: yes
    • Laird: yes
    • Durazo: yes
    • Cabaldon: yes
    • Seyarto: yes
    • Choi: yes
    • Wiener: yes
  • Placed on suspense file

    2025-05-12 · pass · 7-0

    Member-level votes (7)
    • Wahab: yes
    • Seyarto: yes
    • Grayson: yes
    • Richardson: yes
    • Cabaldon: yes
    • Dahle: yes
    • Caballero: yes
  • Do pass as amended

    2025-05-23 · pass · 6-0

    Member-level votes (7)
    • Caballero: yes
    • Seyarto: yes
    • Wahab: yes
    • Cabaldon: yes
    • Richardson: yes
    • Grayson: yes
    • Dahle: other
  • Special Consent

    2025-06-04 · pass · 39-0

    Member-level votes (40)
    • Durazo: yes
    • Menjivar: yes
    • Limón: yes
    • Rubio: yes
    • Pérez: yes
    • Padilla: yes
    • Richardson: yes
    • Smallwood-Cuevas: yes
    • Weber Pierson: yes
    • Wahab: yes
    • Seyarto: yes
    • Umberg: yes
    • Hurtado: yes
    • Grove: yes
    • Niello: yes
    • Wiener: yes
    • Cortese: yes
    • Allen: yes
    • Cervantes: yes
    • Jones: yes
    • McGuire: yes
    • Stern: yes
    • Arreguín: yes
    • Blakespear: yes
    • Alvarado-Gil: yes
    • Laird: yes
    • Archuleta: yes
    • McNerney: yes
    • Cabaldon: yes
    • Gonzalez: yes
    • Caballero: yes
    • Valladares: yes
    • Strickland: yes
    • Grayson: yes
    • Becker: yes
    • Ochoa Bogh: yes
    • Choi: yes
    • Ashby: yes
    • Dahle: yes
    • Reyes: other
  • Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar

    2025-07-02 · pass · 10-0

    Member-level votes (10)
    • Stefani: yes
    • Pacheco: yes
    • Ta: yes
    • Ransom: yes
    • Blanca Rubio: yes
    • Hoover: yes
    • Ward: yes
    • Carrillo: yes
    • Ramos: yes
    • Wilson: yes
  • Do pass. To Consent Calendar.

    2025-07-16 · pass · 13-0

    Member-level votes (15)
    • Wicks: yes
    • Tangipa: yes
    • Sanchez: yes
    • Dixon: yes
    • Caloza: yes
    • Solache: yes
    • Ta: yes
    • Calderon: yes
    • Pacheco: yes
    • Hart: yes
    • Fong: yes
    • Elhawary: yes
    • Mark González: yes
    • Pellerin: other
    • Arambula: other
  • SB 595 Choi Senate Third Reading By Hoover

    2025-09-08 · pass · 78-0

    Member-level votes (80)
    • Addis: yes
    • Haney: yes
    • Elhawary: yes
    • Carrillo: yes
    • Ransom: yes
    • Berman: yes
    • Bauer-Kahan: yes
    • Schiavo: yes
    • Alvarez: yes
    • Caloza: yes
    • Hoover: yes
    • Ortega: yes
    • Solache: yes
    • Lowenthal: yes
    • Petrie-Norris: yes
    • Gabriel: yes
    • Zbur: yes
    • DeMaio: yes
    • Hadwick: yes
    • Irwin: yes
    • Tangipa: yes
    • Patel: yes
    • Kalra: yes
    • Sanchez: yes
    • Johnson: yes
    • Mark González: yes
    • Gipson: yes
    • Hart: yes
    • Calderon: yes
    • Wilson: yes
    • Soria: yes
    • Valencia: yes
    • Celeste Rodriguez: yes
    • Connolly: yes
    • Papan: yes
    • Bonta: yes
    • Jeff Gonzalez: yes
    • Alanis: yes
    • Patterson: yes
    • Jackson: yes
    • Davies: yes
    • Pellerin: yes
    • Muratsuchi: yes
    • Krell: yes
    • Chen: yes
    • Quirk-Silva: yes
    • Bains: yes
    • Michelle Rodriguez: yes
    • Arambula: yes
    • Bennett: yes
    • Ávila Farías: yes
    • Aguiar-Curry: yes
    • Castillo: yes
    • Wallis: yes
    • Stefani: yes
    • Ta: yes
    • Blanca Rubio: yes
    • Gallagher: yes
    • Ellis: yes
    • Macedo: yes
    • McKinnor: yes
    • Ramos: yes
    • Rivas: yes
    • Ahrens: yes
    • Dixon: yes
    • Rogers: yes
    • Ward: yes
    • Fong: yes
    • Wicks: yes
    • Schultz: yes
    • Pacheco: yes
    • Boerner: yes
    • Sharp-Collins: yes
    • Bryan: yes
    • Harabedian: yes
    • Lackey: yes
    • Flora: yes
    • Garcia: yes
    • Lee: other
    • Nguyen: other
  • Unfinished Business SB595 Choi Concurrence

    2025-09-11 · pass · 40-0

    Member-level votes (40)
    • Valladares: yes
    • Umberg: yes
    • McGuire: yes
    • Ochoa Bogh: yes
    • Pérez: yes
    • Cabaldon: yes
    • Wiener: yes
    • Jones: yes
    • Reyes: yes
    • McNerney: yes
    • Dahle: yes
    • Cervantes: yes
    • Caballero: yes
    • Menjivar: yes
    • Allen: yes
    • Archuleta: yes
    • Limón: yes
    • Durazo: yes
    • Niello: yes
    • Richardson: yes
    • Hurtado: yes
    • Blakespear: yes
    • Seyarto: yes
    • Gonzalez: yes
    • Ashby: yes
    • Padilla: yes
    • Choi: yes
    • Laird: yes
    • Stern: yes
    • Alvarado-Gil: yes
    • Grayson: yes
    • Rubio: yes
    • Cortese: yes
    • Smallwood-Cuevas: yes
    • Grove: yes
    • Strickland: yes
    • Becker: yes
    • Weber Pierson: yes
    • Arreguín: yes
    • Wahab: yes

Related bills

No related bills recorded for this bill.

Official source

Attribution

Data from openstates_bulk_csv, retrieved 2026-07-24T01:34:27.960412Z

Inspect retained evidence for changes recorded after evidence tracking began:

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