BILL NUMBER: SB 1074	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 8, 2014

INTRODUCED BY   Senator Knight
   (Coauthors: Senators Gaines, Huff, and Nielsen)

                        FEBRUARY 19, 2014

   An act to amend Section 16305.2 of the Government Code, relating
to state government.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1074, as amended, Knight. State government: state funds.
   Under existing law, all money in the possession of or collected by
any state agency or department is state money, as defined, and is
subject to provisions governing its deposit and handling in trust
accounts. Existing law creates the State Treasury System to deposit
state money held by state agencies prior to expenditure.
   This bill would make it a misdemeanor for a state employee to
transfer or use state money outside of the State Treasury System,
except as authorized by statute, to subvert the normal appropriation
or reversion requirements for the money.
   Because this bill would create a new crime, it would impose a
state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 16305.2 of the Government Code is amended to
read:
   16305.2.  (a) All money in the possession of or collected by any
state agency or department, except for money in the Local Agency
Investment Fund, is subject to Sections 16305.3 to 16305.7,
inclusive, and is hereafter referred to as state money.
   (b) Except as otherwise provided by this chapter or authorized by
statute, any transfer, expenditure, or other use of state money by a
state employee, outside of the State Treasury System, other than
pursuant to a valid act of appropriation or the reversion
requirements described in Section 16303, is a misdemeanor, punishable
by up to one year in a county jail, or a  ten thousand
dollar ($10,000)   two   -thousand  
-five   -hundred   -dollar ($2,500)  fine, or
both.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.