---
type: "Bill"
title: "Surplus funds: investment."
description: "Existing law authorizes a local agency that has the authority under law to invest funds, at its discretion, to invest a portion of its surplus funds in deposits at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of deposits, subject to certain conditions. Existing law, until January 1, 2026, prohibits deposits placed pursuant to that provision from exceeding 50% of the agency's funds that may be so invested and, on and after January 1, 2026, reduces that deposit limit to 30% of the agency's funds that may be so invested."
jurisdiction: "us/states/ca"
legislature: "California Legislature"
session: "20232024"
identifier: "AB 2618"
citation: "California AB 2618 (20232024)"
classification: ["bill"]
subjects: ["Surplus funds", "investment"]
status: "enacted"
primary_sponsors: ["Chen"]
version_count: 6
action_count: 24
vote_count: 7
first_action: "2024-02-14"
last_action: "2024-09-14"
source: "openstates"
source_identifier: "ocd-bill/0364f4ea-0f94-4ca3-9f9b-a538ed1bbf5e"
source_url: "http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB2618"
source_hash: "c42ec0f430568acf6af631b5933aedc40b6530c151d5ef504efaa8f619073648"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-ca"]
---

# California AB 2618 (20232024) — Surplus funds: investment.

Existing law authorizes a local agency that has the authority under law to invest funds, at its discretion, to invest a portion of its surplus funds in deposits at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of deposits, subject to certain conditions. Existing law, until January 1, 2026, prohibits deposits placed pursuant to that provision from exceeding 50% of the agency's funds that may be so invested and, on and after January 1, 2026, reduces that deposit limit to 30% of the agency's funds that may be so invested.

## Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. **02/14/24 - Introduced** (filed) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=202320240AB2618&version=20230AB261899INT)
2. **03/21/24 - Amended Assembly** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=202320240AB2618&version=20230AB261898AMD)
3. **05/30/24 - Amended Senate** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=202320240AB2618&version=20230AB261897AMD)
4. **09/14/24 - Chaptered** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=202320240AB2618&version=20230AB261895CHP)
5. **AB2618** (committee substitute) — [source](http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB2618)
6. **08/26/24 - Enrolled** (enrolled) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=202320240AB2618&version=20230AB261896ENR)

## Votes

- 3rd Reading AB2618 Chen By Niello — **40–0** (pass) · upper
- Do pass. To Consent Calendar. — **9–0** (pass) · lower
- AB 2618 Chen Concurrence in Senate Amendments — **61–0** (pass) · lower
- Do pass, but first be re-referred to the Committee on [Appropriations] — **6–0** (pass) · upper
- AB 2618 Chen Consent Calendar Second Day — **65–0** (pass) · lower
- Do pass as amended, but first amend, and re-refer to the Committee on [Banking and Financial Institutions] — **7–0** (pass) · upper
- Do pass and be re-referred to the Committee on [Local Government] — **9–0** (pass) · lower

## Sponsors

- Chen — primary (person)

## Timeline

The legislative action history — every referral, reading, and vote.

- **2024-02-14** Read first time. To print. `reading-1`
- **2024-02-15** From printer. May be heard in committee March 16.
- **2024-03-21** Referred to Coms. on L. GOV. and B. & F. `referral-committee`
- **2024-03-21** From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended. `amendment-introduction, amendment-passage, reading-1, reading-2`
- **2024-04-01** Re-referred to Com. on L. GOV. `referral-committee`
- **2024-04-01** Re-referred to Coms. on B. & F. and L. GOV. `referral-committee`
- **2024-04-16** From committee: Do pass and re-refer to Com. on L. GOV. (Ayes 9. Noes 0.) (April 15). Re-referred to Com. on L. GOV. `committee-passage, committee-passage-favorable, referral-committee`
- **2024-05-01** From committee: Do pass. To Consent Calendar. (Ayes 9. Noes 0.) (May 1). `committee-passage, committee-passage-favorable`
- **2024-05-02** Read second time. Ordered to Consent Calendar. `reading-1, reading-2`
- **2024-05-09** Read third time. Passed. Ordered to the Senate. (Ayes 65. Noes 0. Page 5162.) `passage, reading-1, reading-3`
- **2024-05-09** In Senate. Read first time. To Com. on RLS. for assignment. `reading-1`
- **2024-05-22** Referred to Coms. on L. GOV. and B. & F.I. `referral-committee`
- **2024-05-29** From committee: Amend, and do pass as amended and re-refer to Com. on B. & F.I. (Ayes 7. Noes 0.) (May 29). `amendment-introduction, amendment-passage, committee-passage, referral-committee`
- **2024-05-30** Read second time and amended. Re-referred to Com. on B. & F.I. `amendment-passage, reading-1, reading-2, referral-committee`
- **2024-06-20** From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 19). Re-referred to Com. on APPR. `committee-passage, committee-passage-favorable, referral-committee`
- **2024-07-01** In committee: Hearing postponed by committee.
- **2024-08-05** From committee: Be ordered to second reading pursuant to Senate Rule 28.8. `committee-passage, reading-2`
- **2024-08-06** Read second time. Ordered to third reading. `reading-1, reading-2`
- **2024-08-20** Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 5234.). `passage, reading-1, reading-3`
- **2024-08-20** In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 22 pursuant to Assembly Rule 77.
- **2024-08-22** Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 61. Noes 0. Page 6433.). `amendment-passage, committee-passage-favorable`
- **2024-08-28** Enrolled and presented to the Governor at 4 p.m.
- **2024-09-14** Approved by the Governor. `executive-signature`
- **2024-09-14** Chaptered by Secretary of State - Chapter 239, Statutes of 2024. `became-law`

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/0364f4ea-0f94-4ca3-9f9b-a538ed1bbf5e`. Confidence: reported (aggregated from official California legislature records).