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SB 0548 - State Purchasing; prohibit use of state funds by purchase orders or other such payment vehicles for personal benefit or gain; penalties

Tracking Level: Monitor
Sponsor: Seabaugh,Mitch 28th
Last Action: 3/18/2008 - House Second Readers
Senate Committee: GvtO
House Committee: App
Assigned To:
05. Superior CourtsNext Bill
06. State CourtsNext Bill

Staff Analysis of the Legislation

This bill prohibits the use of state funds by purchase orders or other such payment vehicles for personal benefit or gain. Any person who violates the provisions of this bill by obtaining any goods, services, or other things of value in the aggregate value of less than $500.00 shall be guilty of a misdemeanor of a high and aggravated nature which shall be punishable by up to one year in prison and a fine of up to $5,000.00. In addition to the foregoing criminal penalties, any such person shall also be subject to immediate termination of state employment and shall owe restitution to the state equal to the amount of such unlawful purchases, plus interest to be assessed at a rate of 12 percent per annum to be calculated from the date each unlawful purchase was made.  If the value is  $500.00 or more, this person shall be guilty of a felony which shall be punishable by at least one year but no more than 20 years in prison and a fine of up to $50,000.00 or triple the amount of such unlawful purchases, whichever is greater. In addition to the foregoing criminal penalties, any such person shall also be subject to immediate termination of state employment and shall owe restitution equal to the amount of such unlawful purchases, plus interest to be assessed at a rate of 12 percent per annum to be calculated from the date each such unlawful purchase was made. If any person who is convicted of a felony pursuant to this subsection is a participant in any government-funded retirement system, such person’s retirement benefits shall be paid to the state until such fines, restitution, and interest have been paid in full. Any person who knowingly assists another person in violating the provisions of this bill shall be guilty of a misdemeanor of a high and aggravated nature which shall be punishable by up to one year in prison and a fine of up to $5,000.00 if the unlawfully purchased goods, services, or other things of value are valued in the aggregate of less than $500.00. In addition to such criminal penalties, any such person shall also be subject to immediate termination of state employment and shall owe restitution equal to the amount of such unlawful purchases, plus interest to be assessed at a rate of 12 percent per annum to be calculated from the date each unlawful purchase was made. If the value is $500 or more, this person shall be guilty of a felony which shall be punishable by at least one year but no more than 20 years in prison and a fine of up to $50,000.00 or triple the amount of the unlawful purchases, whichever is greater. In addition to the foregoing criminal penalties, any such person shall also be subject to immediate termination of state employment and shall owe restitution for the amount of such unlawful purchases, plus interest to be assessed at a rate of 12 percent per annum to be calculated from the date each unlawful purchase was made. If any person who is convicted of a felony pursuant to this subsection is a participant in any government-funded retirement system, such person’s retirement benefits shall be paid to the state until such fines, restitution, and interest have been paid in full.


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