Disapproved claims.

§ 666. If the board, or a majority thereof, disapprove any claim, the same shall be filed with the records of the board with a statement showing such disapproval and the reasons therefor. [New section approved April 3, 1911; Stats. 1911, p. 593.]

Claims for which no appropriation was made.

§ 667. If no appropriation has been made, or if no fund is available for the payment of any claim against the state, the settlement of which is provided by law, or if an appropriation or fund has been exhausted, such claim must be presented to the board who shall audit the same and if approved by at least a majority vote thereof it shall, with the sanction of the governor, be transmitted to the legislature with a brief statement of the reasons for such approval. [New section approved April 3, 1911; Stats. 1911, p. 593.]

Rules for audit of claims.

§ 668. The board shall cause to be printed for distribution among all state officers and for the use of anyone desiring to present a claim against the state, a set of rules governing the presentation and audit of demands against the state funds and appropriations. [New sectia p proved April 3, 1911; Stats. 1911, p. 593.]

Claims to be presented at least four months before legislature meets. Recommendation to legislature.

§ 669. Any person having a claim against the state, the settlement of which is not otherwise provided for by law, must present the same to the board at least four months before the meeting of the legislature, accompanied by a statement showing the facts constituting the claim, verified in the same manner as complaints in civil actions. Before finally passing upon any such claim, notice of the time and place of hearing must be mailed to the claimant at least fifteen days prior to the date set for final action. At the time designated the board must proceed to examine and adjust such claims. It may hear evidence in support of or against them and, with the sanction of the governor, report to the legis lature such facts and recommendations concerning them as may be proper. In making such recommendations the board may state and use any official or personal knowledge which any member thereof may have touching such claims. [New section approved April 3, 1911; Stats. 1911, p. 593.]

Report to legislature and controller.

§ 670. The board must make up its report and recommendations concerning such matters as the law requires of it at least thirty days before the meeting of the legislature. The board must give to the state controller for his use at such time as he shall demand a statement showing all its recommendations for appropriations by the legislature. ticn approved April 3, 1911; Stats. 1911, p. 593.]

[New sec

Rehearing on claim once rejected. Appeal to legislature.

§ 671. The board must not entertain, for the second time, a demand against the state once rejected by it or by the legislature unless such facts are presented to the board as in suits between individuals would furnish sufficient ground for granting a new trial. Any person interested, who is aggrieved by the disapproval of a claim by the board, may appeal from the decision to the legislature of the state, by filing with the board a notice thereof, and upon the receipt of such notice the board must transmit the demand and all the papers accompanying the same, with a statement of the evidence taken before it, to the legislature. [New section approved April 3, 1911; Stats. 1911, p. 593.]

Controller may draw warrant only after approval by board.

§ 672.

The controller must not draw his warrant for any claim unless it has been approved by the state board of control and when hereafter, the controller is directed to draw his warrant for any purpose, this direction must be construed as subject to the provisions of this section, unless the direction is accompanied by a special provision exempting it from the operation of this section. [New section approved April 3, 1911; Stats. 1911, p. 594.]

Citations (former section). Cal. 156/500; (subd. 17) 156/504.

Board may notify treasurer not to pay warrant.

§ 673. Whenever the board has reason to believe that the controller has drawn or is about to draw his warrant without authority of law, or for a larger amount than the state actually owes, the board must notify the treasurer of state not to pay the warrant so drawn or to be drawn; and thereupon the treasurer is prohibited from paying the warrant, whether already drawn or not, until he is otherwise directed by the legislature. [New section approved April 3, 1911; Stats. 1911, p. 594.] Legislative contingent funds exempt.

§ 674. Claims upon the contingent fund of either house of the legislature and for official salaries, are exempted from the operation of the provisions of this article. [New section approved April 3, 1911; Stats.

1911, p. 594.]

Publication of count.

Monthly count of money in treasury. § 675. The money in the state treasury must be counted by the state board of control at least once every month, without giving the treasurer any previous notice of the day or hour of counting; the board may at any counting place any sum in bags or boxes and mark and seal the same with a seal to be adopted and kept by it, and may, at any subsequent counting count each bag or box separately and credit at the value stamped there on the contents of such bags or boxes as part of the money counted without making a detailed count of such contents. They shall count as cash all evidence of money belonging to the state upon deposit outside the state treasury that may be held by the treasurer in accord

ance with law and shall determine for themselves whether such evidence is sufficient according to law.

After each count of money they must make and file with the secretary of state and cause to be published in some newspaper in the city of Sacramento, an affidavit showing:

1. The amount of money or credit that ought to be in the state treasury.

2. The amount and kind of money or credit actually therein. section approved April 3, 1911; Stats. 1911, p. 594.]

Investment of school land funds. Bonds delivered to treasurer.

[New

§ 676. Whenever and as often as there is in the state treasury the sum of ten thousand dollars as the proceeds of the sale of state school lands the board must invest the same in the bonds of this state, or in the bonds of the United States, or in the bonds of any county, permanent road district, city and county, city, town, or school district of this state; the investments to be made in such manner and on such terms as the board shall deem best for the fund.

All such bonds purchased by the board under the provisions of this section must be delivered to the state treasurer who shall keep them as a special school fund deposit, and the interest upon such bonds when collected shall be placed by him to the credit of the state school fund. [New section approved April 3, 1911; Stats. 1911, p. 594.]

Money in estates of deceased persons' fund to be invested in bonds. Bonds delivered to treasurer.

§ 677. Whenever and as often as there is in the state treasury to the credit of the estates of deceased persons' fund (in excess of the retention hereinafter provided for) the sum of ten thousand dollars or more, the board must invest the same in the bonds of this state, or in the bonds of the United States, or in the bonds of the several counties, city and county, permanent road districts, cities and towns, or school districts of this state; the investments to be made in such manner and on such terms as the board shall deem best for the fund. No investment shall be made which with the amounts previously invested shall reduce the uninvested portion of the fund below the amount of ten thousand dollars, and whenever a demand presented against said fund will reduce the amount of cash therein below the specific amount of ten thousand dollars, it shall be the duty of the board to sell such bonds belonging to said fund as they may deem proper, for the purpose of making good the cash retention of ten thousand dollars.

Bonds purchased by the board under the provisions of this section must be delivered to the state treasurer, who shall keep them as a portion of said estates of deceased persons' fund, and the interest upon such bonds shall be paid into the state school fund and apportioned like other moneys employed for the support of common schools. [New section approved April 3, 1911; Stats. 1911, p. 595.]

City, county and district authorities to notify board and treasurer of bonds for sale.

§ 678. Whenever under the provisions of law the board of supervisors, trustees, common council, or other governing boards or bodies of any county, city or county, city or town, or school district of this state shall advertise the sale of bonds voted for any purpose, the clerk of such board, trustees, common council, or other governing board or body shall forthwith, by mail, postage prepaid, notify the state board of control and state treasurer, at the capitol, of such issuance and sale of bonds, and shall specify the purposes for which such bonds were voted, the amount of the total issue for each purpose, the denomination of each bond showing date of issuance and date of maturity, the rate of interest showing when and where payable, the assessed value of the property upon which such bonds are a lien and the total amount of other bonded indebtedness which is a lien upon said property. [New section approved April 3, 1911; Stats. 1911, p. 595.]

Board may purchase bonds to be sold by treasurer.

§ 679. At any sale of bonds by the state treasurer the board may become bidders and purchase bonds with the funds at their disposal, and the appropriate transfer of funds must be made by the controller and treasurer on the books of their offices. No purchase of bonds shall be completed by the board until the attorney general shall have approved the validity of the issue. [New section approved April 3, 1911; Stats.

1911, p. 595.]

Creation of deficiencies.

§ 680. The board, with the consent of the governor, shall have power to authorize the creation of deficiencies in any appropriations of money made by law in cases of actual necessity and shall authorize the payment of deficiencies out of any money which may be appropriated for such purpose. No deficiency shall be authorized except upon the writ ten authority, first obtained, of a majority of the members of the board and of the governor. Any indebtedness attempted to be created against the state in violation of these provisions shall be null and void, and shall not be allowed by the board of control or the controller. [New section approved April 3, 1911; Stats. 1911, p. 595.]

There was another § 680 passed at the same session of the legislature, as follows:

Investment of school funds.

§ 680. Whenever and as often as there is in the state treasury the sum of ten thousand dollars as the proceeds of the sale of state school lands, the board must invest the same in bonds of this state or bonds of the United States, or bonds of any county, city and county, city, town, permanent road division bonds issued under the provisions of part III, title VI, article IX of this code, school district or irrigation district, of this state; the investments to be made in such manner and on such terms as the board shall deem best for the fund; provided, that no bonds

of any county, city and county, city or town, school district, or irriga tion district, shall be purchased of which the debt, debts, or liabilities at the time exceed fifteen per cent of the assessed value of the taxable property of such county, city and county, city or town, school district, or irrigation district. [Amendment approved March 13, 1911; Stats. 1911, p. 345.]

There was another § 680 adopted at the same session of the legislature. See ante, p. 192.

Sale of property belonging to state.

§ 681. The board shall have power to authorize the sale or exchange of any property, except real estate, which belongs to the state and which, in their judgment, it shall be for the best interests of the state to sell or exchange. [New section approved April 3, 1911; Stats. 1911, p. 596.]

Board to supervise financial policies of state.

§ 682. The board shall have general powers of supervision over all matters concerning the financial and business policies of the state, and shall, whenever they deem it necessary or at the instance of the governor, institute or cause the institution of such investigations and proceedings as they may deem proper to conserve the rights and interests of the state. [New section approved April 3, 1911; Stats. 1911, p. 596.] Contracts for supplies to be submitted to board. Permission to purchase supplies in open market.

§ 683. All contracts entered into by any state officer, board, commission, department, or bureau, for the purchase of supplies and materials, or either, shall before the same becomes effective be transmitted with all papers, estimates and recommendations concerning the same to the state board of control for consideration. If a majority of such board approve the same, it shall, from the date of such approval, be in force and effect. No state officer, board, commission, department, or bureau, shall purchase supplies and materials, or either, in open market, unless permission has been given, upon a presentation of the necessity therefor, by the state board of control; provided, that to meet an emergency, supplies and materials of a perishable nature, in an amount not exceeding one hundred dollars in value, may be purchased by such state officer, board, commission, department, or bureau without the permission of the said board of control. [New section approved April 3, 1911; Stats. 1911, p. 596.]

Board of examiners shall mean board of control.

§ 684. Whenever by the provisions of this code or any statute or law now in force or that may hereafter be enacted a duty is imposed or authority conferred upon the "state board of examiners" or the "board of examiners" and the members thereof such duty and authority are hereby imposed and conferred upon the state board of control and the members thereof, the same as though the title of the state board of cou