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Director Memorandum No. 17-042 Page 3 of 6

During the 2002 legislative session, California Government Code Section 16429.4 was added to
the LAIF’s enabling legislation. The Section states that “the right of a city, county, city and
county, special district, nonprofit corporation, or qualified quasi-governmental agency to
withdraw its deposited moneys from the LAIF, upon demand, may not be altered, impaired, or
denied in any way, by any state official or state agency based upon the state’s failure to adopt a
State Budget by July 1 of each new fiscal year.”

The LAIF has grown from 293 participants and $468 million in 1977 to 2,450 participants and
$21.4 billion in March 2017.

Source: http://www.treasurer.ca.gov/pmia-laif/laif-program

Yucaipa Valley Water District - May 16, 2017 - Page 47 of 64