BILL NUMBER: SB 220	CHAPTERED  09/08/00

	CHAPTER   364
	FILED WITH SECRETARY OF STATE   SEPTEMBER 8, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 7, 2000
	PASSED THE SENATE   AUGUST 22, 2000
	PASSED THE ASSEMBLY   AUGUST 18, 2000
	AMENDED IN ASSEMBLY   JUNE 27, 2000
	AMENDED IN ASSEMBLY   JUNE 15, 2000

INTRODUCED BY   Senator Peace

                        JANUARY 21, 1999

   An act to amend Section 16304 of, and to add Section 16304.3 to,
the Government Code, relating to state funds.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 220, Peace.  Appropriations:  reversions:  exemptions.
   Existing law specifies that an appropriation that is not otherwise
limited by its own terms or by law shall be available for
encumbrance for 3 years after the date upon which it first became
available for encumbrance, with specified exceptions.  Disbursements
in liquidation of encumbrances may be made before or during the 2
years following the last day an appropriation is available for
encumbrance, or the 4 years following in the case of an appropriation
of federal funds, with specified exceptions.  At the expiration of
this time, or upon a determination during the liquidation period by
the Director of Finance that the project for which the appropriation
was made is complete and that a portion of the appropriation is not
necessary for disbursement, the undisbursed balance of the
appropriation reverts to and becomes a part of the fund from which
the appropriation is made.  Appropriations made for cooperative work
under specific agreements or under contract are exempt from these
provisions.
   This bill would delete the exemption for cooperative work under
specific agreements or under contract, and instead would exempt
approved cooperative work agreements, as defined, from reversion for
a period of up to 8 years, subject to specified conditions.


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


  SECTION 1.  Section 16304 of the Government Code is amended to
read:
   16304.  An appropriation shall be available for encumbrance during
the period specified therein, or, if not otherwise limited by law,
for three years after the date upon which it first became available
for encumbrance.  An appropriation containing the term "without
regard to fiscal years" shall be available for encumbrance from year
to year until expended.
   An appropriation shall be deemed to be encumbered at the time and
to the extent that a valid obligation against the appropriation is
created.
   As used in this code and in every other statute heretofore or
hereafter enacted, the term "unexpended balance" shall be construed
to mean "unencumbered balance."
   Appropriations for the following purposes are exempt from
limitations as to period of availability in any appropriation, and
shall remain available from year to year until expended:
   (a) Payment of interest and redemption charges on any portion of
the bonded debt of the state.
   (b) Transfers of money from any fund for the benefit of elementary
schools, high schools, community colleges, the University of
California, or any interest and sinking fund in the State Treasury.
   (c) Money transferred to revolving funds specifically created by
law, including, but not limited to, the Architecture Revolving Fund
and the Water Resources Revolving Fund.
   (d) Appropriations available for the acquisition of real property
to the extent that such appropriations have been encumbered by the
filing of condemnation proceedings on behalf of the State of
California prior to the expiration of the period of availability of
the appropriation.
   (e) Money transferred to and expendable from funds other than the
fund in which originally deposited, pursuant to the provisions of law
earmarking or appropriating for expenditure certain classes of
revenue or other receipts.
   (f) Continuing provisions of law appropriating for specific
purposes certain classes of revenue or other receipts, upon their
deposit in a particular fund in the State Treasury or upon their
collection by an agency of this state.
  SEC. 2.  Section 16304.3 is added to the Government Code, to read:

   16304.3.  (a) Notwithstanding Section 16304, an appropriation for
an approved cooperative work agreement shall be available for
expenditure as provided in this section.
   (b) An approved cooperative work agreement is a binding contract
or agreement between multiple parties, including the state or other
governmental entities, or private nonprofit organizations, for work
that cannot be completed for valid and substantial reasons during the
period of time for which the funding is available for liquidation,
and that meets all of the following criteria:
   (1) The cooperative work agreement has been approved by the
Department of Finance.
   (2) The work to be completed is consistent with the intent of the
original appropriation.
   (3) The cooperative work agreement is funded only from
appropriations for local assistance.
   (c) Only that portion of the appropriation already encumbered upon
approval of the cooperative work agreement by the Department of
Finance shall be available to complete the work specified in the
agreement.  Any unencumbered or disencumbered balance shall revert to
the fund of origin consistent with standard state accounting
practices.
   (d) The unliquidated balance subject to the approved cooperative
work agreement shall revert to the fund of origin no later than eight
years from the date of the original appropriation.
   (e) This section shall not apply to cooperative work agreements
entered into prior to January 1, 2001.