Have you incorporated the latest changes to California Government Code (CGC) into your agency’s investment policy?
Changes to CGC occur periodically to refine existing laws or enact new laws. Effective January 1, 2026, Senate Bill 595:
• Amends CGC, Section 5360l(h) to allow for the purchase of prime Commercial Paper (CP) with a maximum maturity of 397 days, previously 270 days.1
• Extends the sunset periods from 202l’s Senate Bill 998 from January l, 2026, to January l, 2031, for (1) commercial paper concentrations up to 40% by Local Agencies with $100 million or more of investable assets and (2) for purchasing United States backed or issued securities that could result in zero or negative interest accrual if held to maturity.
Download our white paper to learn how several CGC updates in recent years could warrant an update to your agency’s investment policy.