(a) Except as provided in subdivision (b), on and after July 1, 2026, no moneys in any fund that, by any statute other than a Budget Act, are continuously appropriated without regard to fiscal years may be encumbered unless the Legislature, by statute, specifies that the moneys in the fund are appropriated for encumbrance.
(b) Subdivision (a) does not apply to any of the following:
(1) The scheduled disbursement of any local sales and use tax proceeds to an entity of local government pursuant to Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code.
(2) The scheduled disbursement of any transactions and use tax proceeds to an entity of local government pursuant to Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code.
(3) The scheduled disbursement of any funds by a state or local agency or department that issues bonds and administers related programs for which funds are continuously appropriated as of June 30, 2026.
(4) Moneys that are deposited in proprietary or fiduciary funds of the California State University and that are continuously appropriated without regard to fiscal years.
(5) The scheduled disbursement of any motor vehicle license fee revenues to an entity of local government pursuant to the Vehicle License Fee Law (Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code).
(Amended by Stats. 2025, Ch. 4, Sec. 30.00. (SB 101) Effective June 27, 2025.)