CA SB633

Authorizes the Department of Finance to order state boards, departments, or agencies to cease allocating additional funds from bond sales if the department determines funds were expended for unauthorized purposes.

Requires the Department of Finance to audit the entity, identify unauthorized use, prescribe corrective action, and provide written notice allowing 60 days for compliance before issuing a cease and desist order.

Prohibits the Department of Finance from ordering corrective actions that prevent payment of contractual obligations that were entered into or performed in good faith.

Requires cease and desist orders to be reasonably designed to ensure compliance while avoiding unnecessary disruption to bond-funded projects or programs.

Applies only to bond acts adopted on or after January 1, 2013, that incorporate the State General Obligation Bond Law by reference.