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 knowingly transfer or use state money outside of the State Treasury System, except as authorized by statute. 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.