State fiscal affairs: community banks and credit unions.

Existing law requires all moneys in the State Treasury or under control of the Treasurer belonging to or in the custody of the state to be deposited by the Treasurer to the credit of the state in eligible banks, as specified. Existing law authorizes the Treasurer to determine what amounts of money shall be deposited as time deposits or demand deposits. This bill would require the Treasurer to ensure that at least 30% of the moneys invested in the time deposit program are invested in time deposits with community banks, as defined to mean a bank or savings institution in California with aggregate assets of less than $10,000,000,000, and credit unions, subject to specified considerations and a reporting requirement and to the extent consistent with liquidity requirements and prudent management.