2005 California Government Code Sections 16480-16481.2 Article 4.5. Treasury Pooled Money Investments

16480.  All state money held by the State Treasurer in treasury
trust accounts, and all money in the State Treasury, except money in
the Unemployment Compensation Disability Fund during any period when
an election under Section 16470 is not in effect, is appropriated for
the purpose of investment and deposit as provided in this article.
In addition, nonstate money held by the Treasurer in the Local Agency
Investment Fund may be included in those investments and deposits as
provided in this article.
16480.1.  There is hereby created a Pooled Money Investment Board,
which shall consist of the Controller, Treasurer and Director of
Finance.  The Pooled Money Investment Board shall meet at least once
in every three months and shall designate at least once a month the
amount of money available under this article for investment in
securities authorized by Article 1 of this chapter, or in deposits in
banks and savings and loan associations, or in loans to the General
Fund and the type of investment or deposit.
   The Pooled Money Investment Board may increase the amount of
surplus money normally available for time deposits with the express
purpose of placing this money in banks that are members of a
California job development corporation and who have made loans to
such a corporation or to corporation-approved borrowers.
   For the purpose of this article, a written determination signed by
a majority of the members of the Pooled Money Investment Board shall
be deemed to be the determination of the board.  Notwithstanding the
provisions of Sections 7.5 and 7.6 of this code, the members of the
board shall personally make the determinations under this article,
and may not authorize a deputy to act for them.
16480.2.  It is the intent of this article that money available for
investment or deposit be invested in securities or deposited in banks
and savings and loan associations in such a way as to realize the
maximum return consistent with safe and prudent treasury management.
16480.3.  Immediately after designations described in Section
16480.1, the Treasurer shall invest or make deposits in banks and
savings and loan associations in accordance with the designations.
16480.35.  It is the intent of the Legislature that the Pooled Money
Investment Board, in administering its investment program, shall
give due regard to assisting such specific programs of the state
designed to support the economy of economically disadvantaged areas
as the California Job Development Corporation Law.
16480.4.  (a) Amounts available for investment under this article
may be invested and reinvested by the State Treasurer in any
securities described in Section 16430 of this code or in loans to the
General Fund as provided in Section 16310 of this code.  Such
securities may be sold by the State Treasurer or exchanged by him for
other securities of the kind authorized to be purchased hereunder,
if, in his discretion, such sale or exchange appears to be in the
best interests of the state.  The State Treasurer may enter into
repurchase agreements or reverse repurchase agreements of any
securities described in Section 16430.
   (b) The State Treasurer may hire or engage the services of an
investment analyst to assist in such investment decisions.
   (c) For purposes of this section, the term "repurchase agreement"
means a purchase of securities by the State Treasurer pursuant to an
agreement by which the seller will repurchase such securities on or
before a specified date and for a specified amount.
   (d) For purposes of this section, the term "reverse repurchase
agreement" means a sale of securities by the State Treasurer pursuant
to an agreement by which the State Treasurer will repurchase such
securities on or before a specified date and for a specified amount.
16480.5.  Investments pursuant to this article shall be purchased by
Controller's warrants.  Such warrants shall not be drawn upon a fund
but shall be drawn on all moneys in the treasury.
16480.6.   (a) At the conclusion of each calendar quarter, all
interest earned and increment derived from investments in securities,
time deposits and loans made pursuant to this article shall upon
order of the Controller be distributed to the General Fund and the
Surplus Money Investment Fund.  The basis for distribution to the
Surplus Money Investment Fund shall be the ratio that the total
dollar day designated surplus balance in the Surplus Money Investment
Fund bears to the total dollar day investments of the Pooled Money
Investment Account.
   (b) On the effective date of the amendment of this section at the
1967 Regular Session, the Controller shall exchange the securities
held as investments in the Surplus Money Investment Fund for money
available for investment under this article, the securities to be
exchanged at their values as they appear on the accounts of the
Surplus Money Investment Fund at the time of exchange.  Upon order of
the Controller, the Treasurer shall make the corresponding transfers
of the securities.
16480.7.  Not later than 30 days after the close of each month there
shall be placed on file for public inspection during business hours
at the offices of the Controller, Treasurer and Director of Finance:
   (a) A report by the Treasurer with respect to investments made
under this article and deposits in banks and savings and loan
associations showing transactions during such month and any related
information the board deems should be included; and
   (b) A copy of each designation made by the board under this
article.
16480.8.  If any provision in this chapter, or the application
thereof to the money in any fund in the Treasury, is held invalid,
the remaining provisions of this chapter shall not be affected
thereby.
   The provisions of this article and Article 4 (commencing with
Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the
Government Code supersede any other provision of law relating to the
investment of state funds by any state agency other than the Pooled
Money Investment Board except for those funds included in
subdivisions (b), (c), (d), (e), and (f) of Section 16475 of this
code.
16480.9.  Notwithstanding the provisions of Section 16480.6, as of
December 31 and June 30 each year all interest earned and increment
derived from the investment pursuant to this article of money of the
Fish and Game Preservation Fund shall be transferred to the Fish and
Game Preservation Fund.
16481.  Notwithstanding any other provision of the law, the State
Treasurer may enter into security loan agreements pursuant to the
provisions of Division 8 (commencing with Section 7600) of Title 1 of
the Government Code with respect to securities which he is
authorized by law to invest in.
16481.1.  The Pooled Money Investment Board shall succeed to and is
vested with all of the powers, duties, purposes, responsibilities,
and jurisdiction in matters now or hereafter vested by law in the
committee which fixes the rate of interest paid on registered
warrants pursuant to Article 2 (commencing with Section 17220) of
Chapter 2 of Part 4 of Division 4 of Title 2, or any officer or
employee thereof.  Whenever reference is made to the committee to fix
interest paid on registered warrants, it shall be deemed to be a
reference to the Pooled Money Investment Board.  The board shall have
possession and control of all records, books, papers, and other
property, real, personal, and mixed, now or hereafter held for the
benefit or use of the committee.
16481.2.  (a) The Treasurer shall annually prepare and submit to the
Pooled Money Investment Board a written statement of investment
policy.  The Treasurer shall promptly notify the board of any
material change in the statement of investment policy.  The board
shall consider the statement of investment policy and any changes
therein at a public meeting.
   (b) In addition to the report required by Section 16480.7, the
Treasurer shall submit a quarterly report to the Pooled Money
Investment Board within 30 days following the end of the quarter
covered by the report containing the following:
   (1) The type of investment, name of the issuer, date of maturity,
par and dollar amount invested in each security, investment, and
money within the treasury.
   (2) The weighted average maturity of the investments within the
treasury.
   (3) Any funds, investments, or programs, including loans, that are
under the management of contracted parties.
   (4) The market value as of the date of the report, and the source
of this valuation for any security within the treasury.
   (5) A description of the compliance with the statement of
investment policy.
   (c) The board may, by resolution, require the treasurer to report
the information required in subdivision (b) every month rather than
quarterly.