Sen. John M. W. Moorlach, R-Costa Mesa, announced today two of his bills cleared the Legislature and are headed to Gov. Gavin Newsom.
“I appreciate the bipartisan support both these practical measures received and am hopeful Governor Newsom will sign them into law,” Moorlach said.
Senate Bill 998 (Local Government Investments)
Senator Moorlach goes back to his Orange County Treasurer background, making improvements for cities and districts with more than $100 million in investable cash assets.
SB 998 would raise to 40 percent the maximum limit for holding highly rated “commercial paper,” a short-term, unsecured corporate debt (Note: Retail money market funds can invest up to 100 percent in commercial paper).
It also introduces into the state’s investment code the authorization for 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. In uncertain economic times, such as in a deflationary period, this permission will assist in a city’s cash management.
And SB 998 would allow California’s Indian tribes to invest in local government investment pools. This provides the tribes a well managed cash equivalent portfolio and assists the local government in reducing their expense ratio.
“The California Municipal Treasurers Association (CMTA) identified several key areas of state law where improvements can be made that were safe, forward thinking and provided mutual assistance to California’s Indian tribes, should they choose to be participants in a city’s investment pool,” said Moorlach. “I want to thank the CMTA for their assistance with SB 998 as an opportunity to pursue prudent investment improvements.”
Senate Bill 1386 (Protecting Fire Hydrant System Funding)
Lawsuits have been filed against 81 water suppliers throughout California over the legality of not charging residents and businesses for water supplies used in fighting fires, including the fire hydrants the water supplier owns and maintains. SB 1386 will protect fire hydrant system funding while preventing millions of dollars of added costs to those who incurred fire damage and/or assisted in putting out the flames.
“If such legal challenges were to succeed, water suppliers would likely be required to charge fire protection agencies for these costs, which would be necessary for a water supplier to continue to support the hydrant systems,” said Moorlach. “This would negatively impact fire protection agencies’ ability to fund their public safety services.”
“I want to thank the Irvine Ranch Water District for quarterbacking this critical and urgently needed legislation,” Moorlach added. “It’s implementation will protect taxpayers and fire department budgets in their hour of need.”
This article was released by the Office of Senator John Moorlach.