BILL ANALYSIS Ó
SB 1475
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Date of Hearing: June 29, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SB 1475
(Committee on Governmental Organization) - As Amended April 21,
2016
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|Policy |Banking and Finance |Vote:|11 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill specifies that only the State Controller's Office
(SCO) must keep a record of all canceled warrants instead of the
SCO and the State Treasurer's Office (STO).
FISCAL EFFECT:
No additional state costs.
SB 1475
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COMMENTS:
Purpose and background. Existing law requires the establishment
of separate registers of all canceled warrants, which are checks
from the state, by the STO and the SCO. According to the STO and
the SCO, this requirement was necessary following the
establishment of the Centralized Treasury in 1949 to ensure that
the STO did not pay banks for warrants that had been canceled by
the SCO.
Today, as a result of technological advancements, the STO
Centralized Treasury and Securities Management Division Item
Processing Section (IPS) receives from the SCO on a daily basis
electronic files that list all outstanding warrants, and,
accordingly, any warrant presented by any bank that is not
listed on that file will not be paid, will be rejected, and
returned to the presenting bank. Thus, there is no need to keep
a register of canceled warrants as defined in existing law.
According to STO staff, fulfilling the requirements of current
law as currently written would also require the development of a
new information technology system and the expenditure of funds
and resources on a functionality that is already unnecessary.
Analysis Prepared by:Luke Reidenbach / APPR. / (916)
319-2081
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