Oversight Committee Bylaws
27131. The board of supervisors in each county or city and county shall, if the county or city and county is investing surplus funds, establish a county treasury oversight committee. The board of supervisors, in consultation with the county treasurer, shall determine the exact size of the committee, which shall consist of from 3 to 11 members, and the categories from which the members shall be represented, as specified in subdivisions (a) to (g), inclusive, of Section 27132. Members shall be nominated by the treasurer and confirmed by the board of supervisors.
27132. The county treasury oversight committee, pursuant to Section
27131, shall consist of members appointed from the following:
(a) The county treasurer.
(b) The county auditor,
auditor-controller, or finance director, as the case may be.
(c)
A representative appointed by the county board of supervisors.
(d) The county superintendent of schools or his or her designee.
(e) A representative selected by a majority of the presiding officers
of the governing bodies of the school districts and community college
districts in the county.
(f) A representative selected by a
majority of the presiding officers of the legislative bodies of the
special districts in the county that are required or authorized to
deposit funds in the county treasury.
(g) Up to five other
members of the public.
(1) A majority of the other public
members shall have expertise in, or an academic background in, public
finance.
(2) The other public members shall be economically
diverse and bipartisan in political registration.
27132.1. A member may not be employed by an entity that has (a) contributed to the campaign of a candidate for the office of local treasurer, or (b) contributed to the campaign of a candidate to be a member of a legislative body of any local agency that has deposited funds in the county treasury, in the previous three years or during the period that the employee is a member of the committee.
27132.2. A member may not directly or indirectly raise money for a candidate for local treasurer or a member of the governing board of any local agency that has deposited funds in the county treasury while a member of the committee.
27132.3. A member may not secure employment with, or be employed by, bond underwriters, bond counsel, security brokerages or dealers, or financial services firms, with whom the treasurer is doing business during the period that the person is a member of the committee or for one year after leaving the committee.
27132.4. Committee meetings shall be open to the public and subject
to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950)
of Part 1 of Division 2 of Title 5).
27133. In any county that establishes a county treasury oversight
committee pursuant to this article, the county treasurer shall
annually prepare an investment policy that will be reviewed and
monitored by the county treasury oversight committee. The investment
policy shall include all of the following:
(a) A list of
securities or other instruments in which the county treasury may
invest, according to law, including the maximum allowable percentage
by type of security.
(b) The maximum term of any security
purchased by the county treasury.
(c) The criteria for selecting
security brokers and dealers from, to, or through whom the county
treasury may purchase or sell securities or other instruments. The
criteria shall prohibit the selection of any broker, brokerage,
dealer, or securities firm that has, within any consecutive 48-month
period following January 1, 1996, made a political contribution in an
amount exceeding the limitations contained in Rule G-37 of the
Municipal Securities Rulemaking Board, to the local treasurer, any
member of the governing board of the local agency, or any candidate
for those offices.
(d) Limits on the receipt of honoraria,
gifts, and gratuities from advisors, brokers, dealers, bankers, or
other persons with whom the county treasury conducts business by any
member of the county treasury oversight committee. These limits may be
in addition to the limits set by a committee member's own agency, by
state law, or by the Fair Political Practices Commission.
(e) A
requirement that the county treasurer provide the county treasury
oversight committee with an investment report as required by the board
of supervisors.
(f) The manner of calculating and apportioning
the costs, authorized by Section 27013, of investing, depositing,
banking, auditing, reporting, or otherwise handling or managing
funds.
(g) The terms and conditions under which local agencies
and other entities that are not required to deposit their funds in the
county treasury may deposit funds for investment purposes.
(h)
Criteria for considering requests to withdraw funds from the county
treasury, pursuant to Section 27136. The criteria shall include an
assessment of the effect of a proposed withdrawal on the stability and
predictability of the investments in the county treasury.
27134. The county treasury oversight committee shall cause an annual audit to be conducted to determine the county treasury's compliance with this article. The audit may include issues relating to the structure of the investment portfolio and risk.
27135. The costs of complying with this article shall be county charges and may be included with those charges enumerated under Section 27013.
27136. (a) Notwithstanding any other provision of law, any local
agency, public agency, public entity, or public official that has
funds on deposit in the county treasury pool and that seeks to
withdraw funds for the purpose of investing or depositing those funds
outside the county treasury pool, shall first submit the request for
withdrawal to the county treasurer before withdrawing funds from the
county treasury pool.
(b) The county treasurer shall evaluate
each proposed withdrawal for its consistency with the criteria adopted
pursuant to subdivision (h) of Section
27133. Prior to approving a withdrawal, the county treasurer shall find that the proposed withdrawal will not adversely affect the interests of the other depositors in the county treasury pool.
27137. Nothing in this article shall be construed to allow the county treasury oversight committee to direct individual investment decisions, select individual investment advisors, brokers, or dealers, or impinge on the day-to-day operations of the county treasury.