Blogs

@Lilia Hernandez

In 1981, the California Debt and Investment Advisory Commission (CDIAC) was established through Assembly Bill 1192, to serve as the state’s central clearinghouse for public finance information, initially focused on debt. They later expanded to support state and local government agencies with effective issuance, monitoring, and management of public debt and the safe investment of public funds in 1996. 

The CDIAC developed the Local Agency Investment Guidelines to assist local agencies, as defined by the CA Government Code Section 53600, with the implementation of existing laws for investments of public funding. Annually, staff collaborate with public- and private-sector professionals to amend and update these guidelines. The guidelines overview a variety of issues organized by chapter, provide compliance requirement interpretation, and produce consensus recommendations from the collective working group.

The guidelines begin with 2026 local, federal, and regulatory statutory changes highlighting the amendments in the Government Code with a brief description.

• Chapter one outlines annual investment policies with minimum legal requirements and CDIAC recommendations to aid governing bodies with performance fiduciary responsibilities for long term goal setting.
• Chapter two focuses on fund management for local agencies invested with the county treasury serving as a fiduciary under the compliance of the investor standard.
• Chapter three provides reporting requirements regarding portfolio investments, market value measures for individual securities, and interest rates risks for legislative bodies.
• Chapter four aids in the establishment of county treasury oversight committees to determine structure, best practices, conflicts of interest, and responsibilities.

Included in the guidelines is a copy of the updated California Government Code with the relevant sections pertaining to the 2026 statutory updates along with a glossary and index of statutory changes effective from 1996 to present.

The 2026 guidelines are to be utilized as a resource, not as a replacement for formal legal advice. It is always recommended to consult your district’s general counsel to ensure compliance.